H.B. No. 2819

	AN ACT
	relating to the management and protection of coastal public land
	and other coastal resources; providing for administrative
	penalties.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Sections 33.002, 33.012, 33.063, and 33.102,
	Natural Resources Code, are amended to read as follows:
	Sec. 33.002.  PURPOSE.  The purpose of this chapter is to
	implement the policies stated in Section 33.001 [of this code] by
	delegating to the board, assisted by the appropriate [planning
	division and other] staff of the land office, certain
	responsibilities and duties with respect to the management of the
	surface estate in coastal public land.
	Sec. 33.012.  LAND OFFICE TO ASSIST BOARD.  The appropriate
	[planning division and other] staff of the land office shall assist
	the board in the discharge of its responsibilities and duties under
	this chapter.
	Sec. 33.063.  FEES.  The board may prescribe reasonable
	filing fees and fees for granting leases, easements, [and] permits,
	and other interests in or rights to use coastal public land.
	Sec. 33.102.  CONTENTS OF APPLICATION.  The application to
	acquire rights in coastal public land shall include any information
	the board considers necessary to process the application, including
	information necessary to evaluate the purpose for which the land is
	to be used [:
	[(1)     an adequate legal description of the land in
	which the rights are sought;
	[(2)  a statement of the rights sought;
	[(3)     a statement of the purpose or purposes for which
	the land is to be used;
	[(4)     a description of the nature and extent of the
	improvements, if any, which will be made on the land;
	[(5)     an estimate of the time within which any
	improvements to be made will be completed; and
	[(6)     any additional information the board considers
	necessary, including, in the case of any application for approval
	of construction, modification, repair, or removal of a structure, a
	description of all plans for any filling, dumping, dredging, or
	excavating to be done].
	SECTION 2.  Section 33.103(a), Natural Resources Code, is
	amended to read as follows:
	(a)  The board may grant the following interests in coastal
	public land for the indicated purposes:
	(1)  leases for public purposes;
	(2)  easements for purposes connected with:
	(A)  ownership of littoral property; or
	(B)  the operation of a facility operated by an
	existing channel and dock corporation that was issued articles of
	incorporation under Chapters 13 and 14, Title 32, Revised Statutes;
	(3)  permits authorizing limited continued use of
	previously unauthorized structures on coastal public land not
	connected with ownership of littoral property; [and]
	(4)  channel easements to the holder of any surface or
	mineral interest in coastal public land for purposes necessary or
	appropriate to the use of the interests; and
	(5)  subject to Section 33.001(g), any other interest
	in coastal public land for any purpose if the board determines that
	the grant is in the best interest of the state.
	SECTION 3.  Sections 33.104 and 33.105, Natural Resources
	Code, are amended to read as follows:
	Sec. 33.104.  DETERMINATION OF TERMS OF GRANT; CONSUMMATION
	OF TRANSACTION [PROCESSING APPLICATION]. [(a) On receiving an
	application, the board may circulate it for review and comment to
	the member agencies of the Interagency Natural Resources Council or
	its successor.
	[(b)     The board shall determine whether the proposed
	application should be granted not less than 30 days nor more than 90
	days after the application is received.
	[(c)]  If the board approves the application [is granted],
	the board shall determine the terms [reasonable term], conditions,
	and consideration for the grant of an interest in or right to use
	coastal public land and may consummate the transaction.
	Sec. 33.105.  PERSONS TO WHOM INTEREST IN LAND MAY BE GRANTED
	[LEASED].  The board may grant to any person an interest in [lease]
	coastal public land if the board determines that the grant is in the
	best interest of the state [to:
	[(1)     the Parks and Wildlife Department or to any
	eligible city or county for public recreational purposes;
	[(2)     the Parks and Wildlife Department for management
	of estuarine preserves;
	[(3)     any nonprofit, tax-exempt environmental
	organization approved by the board for the purpose of managing a
	wildlife refuge; and
	[(4)     any scientific or educational organization or
	institution for conducting scientific research].
	SECTION 4.  Sections 33.604 and 33.605, Natural Resources
	Code, are amended to read as follows:
	Sec. 33.604.  COASTAL EROSION RESPONSE ACCOUNT.  (a)  The
	coastal erosion response account is an account in the general
	revenue fund that may be appropriated only to the commissioner and
	used only for the purpose of implementing this subchapter and
	administration of the coastal management program as provided in
	Subchapter F.
	(b)  The account consists of:
	(1)  all money appropriated for the purposes of this
	subchapter;
	(2)  grants to this state from the United States for the
	purposes of this subchapter; [and]
	(3)  all money received by this state from the sale of
	dredged material; and
	(4)  penalties or costs collected under Section 61.0184
	or 63.1814.
	(c)  The account is exempt from the application of Section
	403.095, Government Code.
	Sec. 33.605.  USES OF ACCOUNT.  (a)  Money in the account may
	be used for:
	(1)  any action authorized by this subchapter; and
	(2)  the administration of the coastal management
	program as provided in Subchapter F [, except for a restoration
	project authorized by Section 33.613].
	(b)  The commissioner must approve an expenditure from the
	account. In determining whether to approve an expenditure for a
	study or project, the commissioner shall consider:
	(1)  the amount of money in the account;
	(2)  the feasibility and cost-effectiveness of the
	study or project;
	(3)  the locations of other existing or proposed
	erosion response projects;
	(4)  the needs in other critical coastal erosion areas;
	(5)  the effect of the study or project on public or
	private property; and
	(6)  if the site to be studied or project to be
	conducted will be located within the jurisdiction of a local
	government subject to Chapter 61 or 63:
	(A)  [,] whether the local government is
	adequately administering those chapters; and
	(B)  the building set-back line established by the
	local government under Section 33.607.
	SECTION 5.  The heading to Section 33.607, Natural Resources
	Code, is amended to read as follows:
	Sec. 33.607.  COASTAL EROSION PUBLIC AWARENESS AND
	EDUCATION; LOCAL GOVERNMENT PLANNING AND REGULATION.
	SECTION 6.  Section 33.607, Natural Resources Code, is
	amended by amending Subsection (e) and adding Subsections (f), (g),
	and (h) to read as follows:
	(e)  A local government subject to Chapter 61 or 63 may [is
	encouraged to] use historical erosion data to prepare a plan for
	reducing public expenditures for erosion and storm damage losses to
	public and private property, including public beaches, by
	establishing and implementing a building set-back line that will
	accommodate a shoreline retreat. The local government shall hold a
	public educational meeting on the plan before proposing to
	implement it through the plans, orders, or ordinances provided by
	Chapters 61 and 63.
	(f)  A plan for reducing public expenditures for erosion and
	storm damage losses to public and private property that includes
	the establishment and implementation of a building set-back line
	under this section may:
	(1)  preserve and enhance the public's right of access
	to and use of the public beach;
	(2)  preserve critical sand dunes for natural storm
	protection and conservation purposes;
	(3)  establish a building set-back line no further
	landward than the dune protection line established by the local
	government under Chapter 63;
	(4)  provide for the prohibition of new construction
	seaward of the building set-back line; and
	(5)  provide for the acquisition of fee title to or a
	lesser interest in property seaward of the building set-back line.
	(g)  The commissioner may adopt rules for the establishment
	and implementation of a building set-back line under this section.
	(h)  Chapter 2007, Government Code, does not apply to a rule
	or local government order or ordinance authorized by this section.
	SECTION 7.  Section 33.651(4), Natural Resources Code, is
	amended to read as follows:
	(4)  "Coastal improvement project" means a project to
	improve access to a public beach by:
	(A)  acquiring fee title to property or a right of
	public access to a public beach;
	(B)  constructing or maintaining public roads,
	parking, or other facilities in aid of public access to or use of a
	public beach; [or]
	(C)  requiring a landowner, as prescribed by land
	office rules, to restore land affected by coastal erosion to its
	original boundaries; or
	(D)  implementing a building set-back line
	established under Section 33.607.
	SECTION 8.  Section 33.656, Natural Resources Code, is
	amended to read as follows:
	Sec. 33.656.  PROJECTS THAT QUALIFY FOR FUNDING.  To qualify
	for funding under this subchapter, a project must:
	(1)  be sponsored by a coastal county;
	(2)  be located within the sponsoring coastal county
	along or adjacent to the shore of the Gulf of Mexico, an inland bay,
	or a connecting channel between the Gulf of Mexico and an inland
	bay;
	(3)  be accessible by public roads or a common carrier
	ferry;
	(4)  be identified and approved for funding by a
	coastal county and the land office; and
	(5)  require more than $5 million to complete, as
	estimated by the land office, unless the project implements a
	building set-back line established under Section 33.607.
	SECTION 9.  Section 33.659(a), Natural Resources Code, is
	amended to read as follows:
	(a)  In addition to all other powers that a coastal county
	has under general law, a coastal county has the rights, powers,
	privileges, authority, and functions that are necessary or
	convenient to:
	(1)  the designing, engineering, acquiring,
	constructing, improving, maintaining, extending, repairing,
	replacing, monitoring, removing, administering, and financing of a
	qualified project located in a coastal county; [and]
	(2)  the funding of a reserve or other fund relating to
	bonds; and
	(3)  the establishment and implementation of a building
	set-back line under Section 33.607.
	SECTION 10.  Section 61.011(d), Natural Resources Code, is
	amended to read as follows:
	(d)  The commissioner shall promulgate rules, consistent
	with the policies established in this section, on the following
	matters only:
	(1)  acquisition by local governments or other
	appropriate entities or public dedication of access ways sufficient
	to provide adequate public ingress and egress to and from the beach
	within the area described in Subdivision (6);
	(2)  protection of the public easement from erosion or
	reduction caused by development or other activities on adjacent
	land and beach cleanup and maintenance;
	(3)  local government prohibitions of vehicular
	traffic on public beaches, provision of off-beach parking, and
	other minimum measures needed to mitigate for any adverse effect on
	public access and dune areas;
	(4)  imposition of beach access, user, or parking fees
	and reasonable exercises of the police power by local governments
	with respect to public beaches;
	(5)  contents and certification of beach access and use
	plans and standards for local government review of construction on
	land adjacent to and landward of public beaches, including
	procedures for expedited review of beach access and use plans under
	Section 61.015;
	(6)  construction on land adjacent to and landward of
	public beaches and lying in the area either up to the first public
	road generally parallel to the beach or to any closer public road
	not parallel to the beach, or to within 1,000 feet of mean high
	tide, whichever is greater, that affects or may affect public
	access to and use of public beaches; [and]
	(7)  the temporary suspension under Section 61.0185 of
	enforcement of the prohibition against encroachments on and
	interferences with the public beach easement and the ability of a
	property owner to make repairs to a house while a suspension is in
	effect;
	(8)  the determination of the line of vegetation or
	natural line of vegetation;
	(9)  the factors to be considered in determining
	whether a structure, improvement, obstruction, barrier, or hazard
	on the public beach:
	(A)  constitutes an imminent hazard to safety,
	health, or public welfare; or
	(B)  substantially interferes with the free and
	unrestricted right of the public to enter or leave the public beach
	or traverse any part of the public beach; and
	(10)  the procedures for determining whether a
	structure is not insurable property for purposes of Section
	2210.004, Insurance Code, because of the factors listed in
	Subsection (h) of that section.
	SECTION 11.  Sections 61.015(b) and (c), Natural Resources
	Code, are amended to read as follows:
	(b)  Local governments shall submit proposed beach access
	and use plans to the commissioner for certification as to
	compliance with such policies and rules. The commissioner shall act
	on a local government's proposed beach access and use plan within 90
	[60] days of submission by either approving the plan or denying
	certification. In the event of denial, the commissioner shall send
	the proposed plan back to the originating local government with a
	statement of specific objections and the reasons for denial, along
	with suggested modifications. On receipt, the local government
	shall revise and resubmit the plan. The commissioner's
	certification of local government plans shall be by adoption into
	the rules under Section 61.011.
	(c)  A littoral owner proposing construction adjacent to and
	landward of a public beach in the area described in Section
	61.011(d)(6) shall submit a development plan to the appropriate
	local government. The local government shall forward a [the]
	development plan for small-scale construction activity that
	includes 5,000 square feet or less or habitable structures two
	stories or less in height to the commissioner no less than 10
	working days prior to acting on the development plan. The local
	government shall forward a development plan for large-scale
	construction activity that includes more than 5,000 square feet or
	habitable structures more than two stories in height to the
	commissioner no less than 30 working days prior to acting on the
	development plan. The commissioner may submit comments on the
	proposed construction to the local government.
	SECTION 12.  Sections 61.018(b) and (c), Natural Resources
	Code, are amended to read as follows:
	(b)  In the same suit, the attorney general, the
	commissioner, county attorney, district attorney, or criminal
	district attorney may recover penalties and the costs of removing
	any improvement, obstruction, barrier, or other encroachment if it
	is removed by public authorities pursuant to an order of the court
	or a removal order issued by the commissioner as provided by Section
	61.0183.
	(c)  A person who violates this chapter or a removal order
	issued by the commissioner as provided by Section 61.0183 is liable
	for a civil penalty of not less than $50 nor more than $2,000
	[$1,000]. Each day the violation occurs or continues is a separate
	violation.
	SECTION 13.  Subchapter B, Chapter 61, Natural Resources
	Code, is amended by adding Sections 61.0181, 61.0182, 61.0183, and
	61.0184 to read as follows:
	Sec. 61.0181.  ADMINISTRATIVE PENALTY. The commissioner may
	assess an administrative penalty against a person who violates this
	chapter or a rule adopted under this chapter in the amount provided
	by Section 61.018(c) for a civil penalty. In determining the amount
	of the penalty, the commissioner shall consider:
	(1)  the seriousness of the violation, including the
	nature, circumstances, extent, and gravity of the violation and the
	hazard or damage caused thereby;
	(2)  the degree of cooperation and quality of response;
	(3)  the degree of culpability and history of previous
	violations by the person subject to the penalty;
	(4)  the amount necessary to deter future violations;
	and
	(5)  any other matter that justice requires.
	Sec. 61.0182.  ENFORCEMENT PROVISIONS CUMULATIVE. This
	subchapter is cumulative of all other applicable penalties,
	remedies, and enforcement and liability provisions.
	Sec. 61.0183.  REMOVAL OF CERTAIN STRUCTURES, IMPROVEMENTS,
	OBSTRUCTIONS, BARRIERS, AND HAZARDS ON PUBLIC BEACH. (a)  The
	commissioner may order the removal of a structure, improvement,
	obstruction, barrier, or hazard from a public beach if the
	commissioner finds the structure, improvement, obstruction,
	barrier, or hazard to be on the public beach as defined by Section
	61.013(c) and:
	(1)  the structure, improvement, obstruction, barrier,
	or hazard was constructed or placed on the beach in a manner that is
	inconsistent with the local government's beach access and use plan;
	or
	(2)  the structure, improvement, obstruction, or
	barrier constitutes an imminent hazard to safety, health, or public
	welfare.
	(b)  The decision to remove a structure, improvement,
	obstruction, barrier, or hazard under this section is discretionary
	with the commissioner. This section does not impose a duty on the
	state to remove a structure, improvement, obstruction, barrier, or
	hazard or to remedy or warn of a hazardous condition on the public
	beach.
	(c)  The commissioner may contract for the removal and
	disposal of a structure, improvement, obstruction, barrier, or
	hazard under this section and may pay the costs of removal from
	money appropriated by the legislature.
	Sec. 61.0184.  NOTICE REQUIREMENTS; ORDERS AND HEARINGS.
	(a)  The commissioner shall make a determination that a structure is
	located on the public beach, assess an administrative penalty, and
	pursue the removal of a structure, improvement, obstruction,
	barrier, or hazard from a public beach in accordance with this
	section.
	(b)  Before the commissioner may notify the Texas Windstorm
	Insurance Association as provided by Section 2210.004, Insurance
	Code, regarding the status of property, the commissioner must give
	written notice and an opportunity for a hearing to a person who is
	constructing, maintains, controls, owns, or possesses the
	structure, improvement, obstruction, barrier, or hazard on the
	public beach. The notice must state that:
	(1)  the commissioner finds that a specific structure
	is located on the public beach as determined under this chapter,
	and:
	(A)  constitutes an imminent hazard to safety,
	health, or public welfare; or
	(B)  substantially interferes with the free and
	unrestricted right of the public to enter or leave the public beach
	or traverse any part of the public beach;
	(2)  the commissioner intends to notify the Texas
	Windstorm Insurance Association of a determination in accordance
	with Section 2210.004, Insurance Code; and
	(3)  the person who is constructing, maintains,
	controls, owns, or possesses the structure, improvement,
	obstruction, barrier, or hazard located on the public beach may
	submit, not later than the 30th day after the date on which the
	notice is served, written request for a hearing to contest the
	determination.
	(c)  Before the commissioner may order the removal of a
	structure, improvement, obstruction, barrier, or hazard under
	Section 61.0183 or impose an administrative penalty under Section
	61.0181, the commissioner must provide written notice to the person
	who is constructing, maintains, controls, owns, or possesses the
	structure, improvement, obstruction, barrier, or hazard. The
	notice must:
	(1)  describe the specific structure, improvement,
	obstruction, barrier, or hazard that violates this subchapter;
	(2)  state that the person who is constructing,
	maintains, controls, owns, or possesses the structure,
	improvement, obstruction, barrier, or hazard is required to remove
	the structure, improvement, obstruction, barrier, or hazard:
	(A)  not later than the 30th day after the date on
	which the notice is served, if the structure, improvement,
	obstruction, barrier, or hazard is obstructing access to or use of
	the public beach; or
	(B)  within a reasonable time specified by the
	commissioner if the structure, improvement, obstruction, barrier,
	or hazard is an imminent and unreasonable threat to public health,
	safety, or welfare;
	(3)  state that failure to remove the structure,
	improvement, obstruction, barrier, or hazard may result in
	liability for a civil penalty under Section 61.018(c), removal by
	the commissioner and liability for the costs of removal, or any
	combination of those remedies; and
	(4)  state that the person who is constructing,
	maintains, controls, owns, or possesses the structure,
	improvement, obstruction, barrier, or hazard may submit, not later
	than the 30th day after the date on which the notice is served,
	written request for a hearing.
	(d)  A person is considered to be the person who owns,
	maintains, controls, or possesses an improvement, obstruction,
	barrier, or other encroachment on the public beach for purposes of
	this section if the person is the person who most recently owned,
	maintained, controlled, or possessed the improvement, obstruction,
	barrier, or other encroachment on the public beach.
	(e)  The notice required by Subsection (b) must be given:
	(1)  by service in person, by registered or certified
	mail, return receipt requested, or by priority mail; or
	(2)  if personal service cannot be obtained or the
	address of the person responsible is unknown, by posting a copy of
	the notice on the structure, improvement, obstruction, barrier, or
	hazard and by publishing notice in a newspaper with general
	circulation in the county in which the structure, improvement,
	obstruction, barrier, or hazard is located at least two times
	within 10 consecutive days.
	(f)  The commissioner by rule may adopt procedures for a
	hearing under this section.
	(g)  The commissioner must grant a hearing before an
	administrative law judge employed by the State Office of
	Administrative Hearings if a hearing is requested. A person who
	does not request a hearing within 30 days after the date on which
	the notice is served waives all rights to judicial review of the
	commissioner's findings or orders and shall immediately remove the
	structure, improvement, obstruction, barrier, or hazard and pay any
	penalty assessed. If a hearing is held, the commissioner may issue
	a final order approving the proposal for decision submitted by the
	administrative law judge concerning a determination regarding
	whether a structure is not insurable property for purposes of
	Section 2210.004, Insurance Code, because of the factors listed in
	Subsection (h) of that section or concerning removal of the
	structure, improvement, obstruction, barrier, or hazard and
	payment of a penalty. The commissioner may change a finding of fact
	or conclusion of law made by the administrative law judge or may
	vacate or modify an order issued by the administrative judge in
	accordance with Section 2001.058, Government Code.
	(h)  A person may seek judicial review of a final order of the
	commissioner under this section in a Travis County district court
	under the substantial evidence rule as provided by Subchapter G,
	Chapter 2001, Government Code.  The trial courts of this state shall
	give preference to an appeal of a final order of the commissioner
	under this section in the same manner as provided by Section
	23.101(a), Government Code, for an appeal of a final order of the
	commissioner under Section 51.3021 of this code.
	(i)  If the person who is constructing, maintains, controls,
	owns, or possesses the structure, improvement, obstruction,
	barrier, or hazard does not pay assessed penalties, removal costs,
	and other assessed fees and expenses on or before the 30th day after
	the date of entry of a final order assessing the penalties, costs,
	and expenses, the commissioner may:
	(1)  sell salvageable parts of the structure,
	improvement, obstruction, barrier, or hazard to offset those costs;
	(2)  request that the attorney general institute civil
	proceedings to collect the penalties, costs of removal, and other
	fees and expenses remaining unpaid; or
	(3)  use any combination of the remedies prescribed by
	this subsection, or other remedies authorized by law, to collect
	the unpaid penalties, costs of removal, and other fees and expenses
	assessed because of the structure, improvement, obstruction,
	barrier, or hazard on the public beach and its removal by the
	commissioner.
	(j)  Penalties or costs collected under this section shall be
	deposited in the coastal erosion response account as established
	under Section 33.604.
	(k)  Notwithstanding any other provision of this subchapter,
	if a structure that is the subject of an order for removal under
	Section 61.0183 or an administrative penalty under Section 61.0181
	has been used as a permanent, temporary, or occasional residential
	dwelling by at least one person at any time during the year before
	the date on which the order is issued or the penalty is assessed:
	(1)  the notice required by Subsection (c) must state
	that the person who is constructing, maintains, controls, owns, or
	possesses the structure may submit, not later than the 90th day
	after the date on which the notice is served, written request for a
	hearing;
	(2)  if the person does not request a hearing within 90
	days after the date on which the notice is served, the person waives
	all rights to judicial review of the commissioner's findings or
	orders and shall immediately remove the structure and pay any
	penalty assessed; and
	(3)  the amount of the administrative penalty assessed
	may not exceed $1,000 for each day the violation occurs or
	continues.
	SECTION 14.  Sections 61.020 and 61.025, Natural Resources
	Code, are amended to read as follows:
	Sec. 61.020.  PRIMA FACIE EVIDENCE.  (a) In a suit or
	administrative proceeding brought or defended under this
	subchapter or whose determination is affected by this subchapter, a
	showing that the area in question is located in the area from mean
	low tide to the line of vegetation is prima facie evidence that:
	(1)  the title of the littoral owner does not include
	the right to prevent the public from using the area for ingress and
	egress to the sea; and
	(2)  there is imposed on the area a common law right or
	easement in favor of the public for ingress and egress to the sea.
	(b)  The determination of the location of the line of
	vegetation by the commissioner as provided by Sections 61.016 and
	61.017 constitutes prima facie evidence of the landward boundary of
	the area subject to the public easement until a court adjudication
	establishes the line in another place.
	Sec. 61.025.  DISCLOSURE TO PURCHASER OF PROPERTY.  (a)
	Except as provided by Subsection (b), a [A] person who sells or
	conveys an interest, other than a mineral, leasehold, or security
	interest, in real property located seaward of the Gulf Intracoastal
	Waterway to its southernmost point and then seaward of the
	longitudinal line also known as 97 degrees, 12', 19" which runs
	southerly to the international boundary from the intersection of
	the centerline of the Gulf Intracoastal Waterway and the
	Brownsville Ship Channel must include in any executory contract for
	conveyance a [the following] statement in substantially the
	following form:
	CONCERNING THE PROPERTY AT ______________________________________
	DISCLOSURE NOTICE CONCERNING LEGAL AND ECONOMIC RISKS
	OF PURCHASING COASTAL REAL PROPERTY NEAR A BEACH
	WARNING: THE FOLLOWING NOTICE OF POTENTIAL RISKS OF ECONOMIC
	LOSS TO YOU AS THE PURCHASER OF COASTAL REAL PROPERTY IS REQUIRED BY
	STATE LAW.
	•    READ THIS NOTICE CAREFULLY. DO NOT SIGN THIS CONTRACT
	UNTIL YOU FULLY UNDERSTAND THE RISKS YOU ARE ASSUMING.
	•    BY PURCHASING THIS PROPERTY, YOU MAY BE ASSUMING
	ECONOMIC RISKS OVER AND ABOVE THE RISKS INVOLVED IN PURCHASING
	INLAND REAL PROPERTY.
	•    IF YOU OWN A STRUCTURE LOCATED ON COASTAL REAL PROPERTY
	NEAR A GULF COAST BEACH, IT MAY COME TO BE LOCATED ON THE PUBLIC
	BEACH BECAUSE OF COASTAL EROSION AND STORM EVENTS.
	•    AS THE OWNER OF A STRUCTURE LOCATED ON THE PUBLIC BEACH,
	YOU COULD BE SUED BY THE STATE OF TEXAS AND ORDERED TO REMOVE THE
	STRUCTURE.
	•    THE COSTS OF REMOVING A STRUCTURE FROM THE PUBLIC BEACH
	AND ANY OTHER ECONOMIC LOSS INCURRED BECAUSE OF A REMOVAL ORDER
	WOULD BE SOLELY YOUR RESPONSIBILITY.
	The real property described in this contract is located
	seaward of the Gulf Intracoastal Waterway to its southernmost point
	and then seaward of the longitudinal line also known as 97 degrees,
	12', 19" which runs southerly to the international boundary from
	the intersection of the centerline of the Gulf Intracoastal
	Waterway and the Brownsville Ship Channel. If the property is in
	close proximity to a beach fronting the Gulf of Mexico, the
	purchaser is hereby advised that the public has acquired a right of
	use or easement to or over the area of any public beach by
	prescription, dedication, or presumption, or has retained a right
	by virtue of continuous right in the public since time immemorial,
	as recognized in law and custom.
	The extreme seaward boundary of natural vegetation that
	spreads continuously inland customarily marks the landward
	boundary of the public easement. If there is no clearly marked
	natural vegetation line, the landward boundary of the easement is
	as provided by Sections 61.016 and 61.017, Natural Resources Code.
	Much of the Gulf of Mexico coastline is eroding at rates of
	more than five feet per year.  Erosion rates for all Texas Gulf
	property subject to the open beaches act are available from the
	Texas General Land Office.
	State law prohibits any obstruction, barrier, restraint, or
	interference with the use of the public easement, including the
	placement of structures seaward of the landward boundary of the
	easement. OWNERS OF STRUCTURES ERECTED SEAWARD OF THE VEGETATION
	LINE (OR OTHER APPLICABLE EASEMENT BOUNDARY) OR THAT BECOME SEAWARD
	OF THE VEGETATION LINE AS A RESULT OF [NATURAL] PROCESSES SUCH AS
	SHORELINE EROSION ARE SUBJECT TO A LAWSUIT BY THE STATE OF TEXAS TO
	REMOVE THE STRUCTURES.
	The purchaser is hereby notified that the purchaser should:
	(1)  determine the rate of shoreline erosion in the
	vicinity of the real property; and
	(2)  seek the advice of an attorney or other qualified
	person before executing this contract or instrument of conveyance
	as to the relevance of these statutes and facts to the value of the
	property the purchaser is hereby purchasing or contracting to
	purchase.
	(b)  If the statement is not included in the executory
	contract for conveyance or there is no executory contract for
	conveyance, the statement must be delivered to, and receipt thereof
	acknowledged by, the purchaser not later than 10 calendar days
	prior to closing the transaction.
	(c)  Failure to comply with Subsection (a) or (b), as
	applicable, [include the statement in an executory contract for
	conveyance] shall be grounds for the purchaser to terminate the
	[such] contract or agreement to convey, and upon termination any
	earnest money shall be returned to the party making the deposit.
	(d)  A seller commits [Failure to provide this statement
	prior to closing, either in the executory contract for conveyance
	or in a separate written statement, shall constitute] a deceptive
	act under Section 17.46, Business & Commerce Code, if the seller
	fails to comply with Subsection (a) or Subsection (b), as
	applicable.
	(e)  This section, or the failure of a person to give or
	receive the notice in the manner required by this section, does not
	diminish or modify the beach access and use rights of the public
	acquired through statute or under common law.
	SECTION 15.  Section 63.002, Natural Resources Code, is
	amended by adding Subdivision (6) to read as follows:
	(6)  "Restoration" means the repair or replacement of
	dunes or dune vegetation.
	SECTION 16.  Section 63.054(c), Natural Resources Code, is
	amended to read as follows:
	(c)  Each county or municipality administering this chapter
	shall establish procedures and requirements governing the review
	and approval of dune permits, and these procedures and requirements
	shall be submitted to the commissioner for certification to
	determine whether the procedures and requirements are in compliance
	with rules and policies adopted under Section 63.121.  The
	commissioner shall act on a county or municipality's proposed dune
	protection plan not later than the 90th day after the date the plan
	is submitted by approving the plan or denying certification. If
	certification is denied, the commissioner shall return the proposed
	plan to the originating local government with a statement of
	specific objections and the reasons for denial, along with
	suggested modifications. On receipt, the county or municipality
	shall revise and resubmit the plan. The commissioner must certify a
	county or municipality's procedures and requirements under this
	section in accordance with rules adopted under Section 63.121
	[comments].
	SECTION 17.  Section 63.056(a), Natural Resources Code, is
	amended to read as follows:
	(a)  After receiving an application for a permit to perform
	any of the acts prohibited in Section 63.091 in connection with
	small-scale construction activity that includes 5,000 square feet
	or less or habitable structures two stories in height or less [of
	this code], the commissioners court or the governing body of the
	municipality shall notify the commissioner by sending, not less
	than 10 working days before the date of the public hearing on the
	application, notice of the hearing and a copy of the application.
	After receiving an application for a permit to perform any of the
	acts prohibited in Section 63.091 in connection with large-scale
	construction activity that includes more than 5,000 square feet or
	habitable structures more than two stories in height, the
	commissioners court or the governing body of the municipality shall
	notify the commissioner by sending, not less than 30 working days
	before the date of the public hearing on the application, notice of
	the hearing and a copy of the application.
	SECTION 18.  Section 63.121, Natural Resources Code, is
	amended to read as follows:
	Sec. 63.121.  IDENTIFICATION OF CRITICAL DUNE AREAS;
	RULES.  (a) The commissioner, in his role as trustee of the public
	land of this state, shall identify the critical dune areas within
	1,000 feet of mean high tide that are essential to the protection of
	state-owned land, public beaches, and submerged land.
	(b)  The commissioner shall promulgate rules for:
	(1)  the identification and protection of critical dune
	areas; and
	(2)  the certification of procedures and requirements
	governing the review and approval of dune permits by a county or
	municipality.
	SECTION 19.  Section 63.181(b), Natural Resources Code, is
	amended to read as follows:
	(b)  A person who violates this chapter or any rule, permit,
	or order under this chapter is liable for a civil penalty of not
	less than $50 nor more than $2,000 [$1,000]. Each day that a
	violation occurs or continues constitutes a separate offense. A
	violation of Section 63.091 is considered to be a continuing
	violation from the date of the initial unauthorized conduct until
	the earlier of:
	(1)  the date on which a proper permit is issued
	authorizing the conduct; or
	(2)  the date on which restoration of dunes or dune
	vegetation damaged by the violation is completed.
	SECTION 20.  Subchapter G, Chapter 63, Natural Resources
	Code, is amended by adding Sections 63.1811, 63.1812, 63.1813, and
	63.1814 to read as follows:
	Sec. 63.1811.  ADMINISTRATIVE PENALTY. The commissioner may
	assess an administrative penalty for a violation of Section 63.091
	or any rule, permit, or order issued under this chapter in the
	amount established by Section 63.181(b) for a civil penalty. In
	determining the amount of the penalty, the commissioner shall
	consider:
	(1)  the seriousness of the violation, including the
	nature, circumstances, extent, and gravity of the violation and the
	hazard or damage caused thereby;
	(2)  the degree of cooperation and quality of response;
	(3)  the degree of culpability and history of previous
	violations by the person subject to the penalty;
	(4)  the amount necessary to deter future violations;
	and
	(5)  any other matter that justice requires.
	Sec. 63.1812.  ENFORCEMENT PROVISIONS CUMULATIVE. This
	subchapter is cumulative of all other applicable penalties,
	remedies, and enforcement and liability provisions.
	Sec. 63.1813.  MITIGATION FOR DAMAGE, DESTRUCTION, OR
	REMOVAL OF DUNE OR DUNE VEGETATION WITHOUT PERMIT. (a)  The
	commissioner may order restoration for the damage, destruction, or
	removal of a sand dune or a portion of a sand dune or the killing,
	destruction, or removal of any vegetation growing on a sand dune
	seaward of the dune protection line or within a critical dune area
	in violation of this chapter or any rule, permit, or order issued
	under this chapter.
	(b)  The decision to require restoration under this section
	is discretionary with the commissioner. This section does not
	impose a duty on the state to order restoration.
	(c)  The commissioner may contract for the restoration
	required under this section and may pay the costs of restoration
	from money appropriated by the legislature.
	Sec. 63.1814.  NOTICE REQUIREMENTS; ORDERS AND HEARINGS.
	(a)  The commissioner shall assess an administrative penalty and
	pursue restoration in accordance with this section.
	(b)  Before the commissioner may order restoration under
	Section 63.1813 or assess an administrative penalty under Section
	63.1811, the commissioner must give written notice to a person who
	is taking or has taken actions that violate Section 63.091 or any
	rule, permit, or order issued under this chapter. The notice must
	state:
	(1)  the specific conduct that violates Section 63.091
	or any rule, permit, or order issued under this chapter;
	(2)  that the person who is engaged in or has been
	engaged in the conduct that violates Section 63.091 or any rule,
	permit, or order issued under this chapter must perform restoration
	for the damage caused by the violation not later than the 60th day
	after the date on which the notice is served;
	(3)  that failure to perform restoration for the damage
	caused by the violation in accordance with the commissioner's order
	may result in liability for a civil penalty under Section 63.181(b)
	in an amount specified, restoration contracted or undertaken by the
	commissioner and liability for the costs of restoration, or any
	combination of those remedies; and
	(4)  that the person who is engaging in or has engaged
	in conduct that violates Section 63.091 or any rule, permit, or
	order issued under this chapter may submit, not later than the 60th
	day after the date on which the notice is served, a written request
	for a hearing.
	(c)  A person is considered to be engaging in or to have
	engaged in conduct that violates Section 63.091 or any rule,
	permit, or order issued under this chapter for purposes of this
	section if the person is the person who most recently owned,
	maintained, controlled, or possessed the real property on which the
	conduct occurred.
	(d)  The notice required by Subsection (b) must be given:
	(1)  by service in person, by registered or certified
	mail, return receipt requested, or by priority mail; or
	(2)  if personal service cannot be obtained or the
	address of the person responsible is unknown, by posting a copy of
	the written notice at the site where the conduct was engaged in and
	by publishing notice in a newspaper with general circulation in the
	county in which the site is located at least two times within 10
	consecutive days.
	(e)  The commissioner by rule may adopt procedures for a
	hearing under this section.
	(f)  The commissioner must grant a hearing before an
	administrative law judge employed by the State Office of
	Administrative Hearings if a hearing is requested. A person who
	does not request a hearing within 60 days after the date on which
	the notice is served waives all rights to judicial review of the
	commissioner's findings or orders and shall immediately initiate
	mitigation and pay any penalty assessed. If a hearing is held, the
	commissioner may issue a final order approving the proposal for
	decision submitted by the administrative law judge concerning
	mitigation and payment of a penalty. The commissioner may change a
	finding of fact or conclusion of law made by the administrative law
	judge, or may vacate or modify an order issued by the administrative
	law judge in accordance with Section 2001.058, Government Code.
	(g)  A person may seek judicial review of a final order of the
	commissioner under this section in a Travis County district court
	under the substantial evidence rule as provided by Subchapter G,
	Chapter 2001, Government Code.  The trial courts of this state shall
	give preference to an appeal of a final order of the commissioner
	under this section in the same manner as provided by Section
	23.101(a), Government Code, for an appeal of a final order of the
	commissioner under Section 51.3021 of this code.
	(h)  If the person who is engaged in or has been engaged in
	conduct that violated Section 63.091 or any rule, permit, or order
	issued under this chapter does not pay assessed penalties,
	mitigation costs, and other assessed fees and expenses on or before
	the 60th day after the date of entry of a final order assessing the
	penalties, costs, and expenses, the commissioner may:
	(1)  request that the attorney general institute civil
	proceedings to collect the penalties, costs of restoration, and
	other fees and expenses remaining unpaid; or
	(2)  use any combination of the remedies prescribed by
	this section, or other remedies authorized by law, to collect the
	unpaid penalties, costs of restoration, and other fees and expenses
	assessed because of unauthorized conduct and its mitigation by the
	commissioner.
	(i)  Penalties or costs collected under this section shall be
	deposited in the coastal erosion response account established under
	Section 33.604.
	SECTION 21.  Section 2210.004, Insurance Code, is amended by
	amending Subsection (a) and adding Subsection (h) to read as
	follows:
	(a)  Except as provided by Subsection (h), for [For] purposes
	of this chapter and subject to this section, "insurable property"
	means immovable property at a fixed location in a catastrophe area
	or corporeal movable property located in that immovable property,
	as designated in the plan of operation, that is determined by the
	association according to the criteria specified in the plan of
	operation to be in an insurable condition against windstorm and
	hail or fire and explosion, as appropriate, as determined by normal
	underwriting standards.
	(h)  For purposes of this chapter, a structure is not
	insurable property if the commissioner of the General Land Office
	notifies the association of a determination that the structure is
	located on the public beach under procedures established under
	Section 61.011, Natural Resources Code, and that the structure:
	(1)  constitutes an imminent hazard to safety, health,
	or public welfare; or
	(2)  substantially interferes with the free and
	unrestricted right of the public to enter or leave the public beach
	or traverse any part of the public beach.
	SECTION 22.  Section 5.008(b), Property Code, is amended to
	read as follows:
	(b)  The notice must be executed and must, at a minimum, read
	substantially similar to the following:
	SELLER'S DISCLOSURE NOTICE
	CONCERNING THE PROPERTY AT___________________________________
	(Street Address and City)
	THIS NOTICE IS A DISCLOSURE OF SELLER'S KNOWLEDGE OF
	THE CONDITION OF THE PROPERTY AS OF THE DATE SIGNED BY
	SELLER AND IS NOT A SUBSTITUTE FOR ANY INSPECTIONS OR
	WARRANTIES THE PURCHASER MAY WISH TO OBTAIN. IT IS NOT
	A WARRANTY OF ANY KIND BY SELLER OR SELLER'S AGENTS.
	Seller __ is __ is not occupying the Property.
	If unoccupied, how long since Seller has occupied the Property?
	________________________________________________________________
	1.  The Property has the items checked below:
	Write Yes (Y), No (N), or Unknown (U).
	__ Range __ Oven __ Microwave
	__ Dishwasher __ Trash Compactor __ Disposal
	__ Washer/Dryer __ Window __ Rain Gutters
	Hookups    Screens
	__ Security __ Fire Detection __ Intercom
	System    Equipment    System
	__ TV Antenna __ Cable TV __ Satellite
	Wiring    Dish
	__ Ceiling Fan(s) __ Attic Fan(s) __ Exhaust
	Fan(s)
	__ Central A/C __ Central Heating __ Wall/Window Air
	Conditioning
	__ Plumbing System __ Septic System __ Public Sewer
	System
	__ Patio/Decking __ Outdoor Grill __ Fences
	__ Pool __ Sauna __ Spa
	__ Hot Tub
	__ Pool Equipment __ Pool Heater __ Automatic Lawn
	Sprinkler
	System
	__ Fireplace(s) & __ Fireplace(s) &
	Chimney    Chimney
	(Woodburning)    (Mock)
	__ Gas Lines __ Gas Fixtures
	(Nat./LP)
	Garage: __ Attached __ Not Attached __ Carport
	Garage Door Opener(s): __ Electronic __ Control(s)
	Water Heater: __ Gas __ Electric
	Water Supply: __ City __ Well __ MUD __ Co-op
	Roof Type: ________________________________Age: _____(approx)
	Are you (Seller) aware of any of the above items that are not in
	working condition, that have known defects, or that are in need of
	repair?  __ Yes  __ No  __ Unknown.
	If yes, then describe.  (Attach additional sheets if necessary):
	________________________________________________________________
	________________________________________________________________
	2.  Are you (Seller) aware of any known defect/malfunctions in any
	of the following?
	Write Yes (Y) if you are aware, write No (N) if you are not aware.
	__ Interior Walls __ Ceilings __ Floors
	__ Exterior Walls __ Doors __ Windows
	__ Roof __ Foundation/ __ Basement
	Slab(s)
	__ Walls/Fences __ Driveways __ Sidewalks
	__ Plumbing/Sewers/ __ Electrical __ Lighting
	Septics    Systems    Fixtures
	__ Other Structural Components (Describe):____________________
	________________________________________________________________
	________________________________________________________________
	If the answer to any of the above is yes, explain.  (Attach
	additional sheets if necessary):_____________________________
	________________________________________________________________
	________________________________________________________________
	3.  Are you (Seller) aware of any of the following conditions?
	Write Yes (Y) if you are aware, write No (N) if you are not aware.
	__ Active Termites __ Previous Structural
	(includes    or Roof Repair
	wood-destroying insects)
	__ Termite or Wood Rot __ Hazardous or Toxic Waste
	Needing Repair
	__ Previous Termite Damage __ Asbestos Components
	__ Previous Termite __ Urea formaldehyde
	Treatment    Insulation
	__ Previous Flooding __ Radon Gas
	__ Improper Drainage __ Lead Based Paint
	__ Water Penetration __ Aluminum Wiring
	__ Located in 100-Year __ Previous Fires
	Floodplain
	__ Present Flood Insurance __ Unplatted Easements
	Coverage
	__ Landfill, Settling, Soil __ Subsurface
	Movement, Fault Lines    Structure or Pits
	If the answer to any of the above is yes, explain.  (Attach
	additional sheets if necessary):_____________________________
	________________________________________________________________
	________________________________________________________________
	4.  Are you (Seller) aware of any item, equipment, or system in or
	on the property that is in need of repair?  __ Yes (if you are
	aware)  __ No (if you are not aware).  If yes, explain (attach
	additional sheets as necessary)._________________________________
	5.  Are you (Seller) aware of any of the following?
	Write Yes (Y) if you aware, write No (N) if you are not aware.
	__  Room additions, structural modifications, or other alterations or repairs made without necessary permits or not in compliance with building codes in effect at that time.
	__  Homeowners' Association or maintenance fees or assessments.
	__  Any "common area" (facilities such as pools, tennis courts, walkways, or other areas) co-owned in undivided interest with others.
	__  Any notices of violations of deed restrictions of governmental ordinances affecting the condition or use of the Property.
	__  Any lawsuits directly or indirectly affecting the Property.
	__  Any condition on the Property which materially affects the physical health or safety of an individual.
	If the answer to any of the above is yes, explain.  (Attach
	additional sheets if necessary):_____________________________
	________________________________________________________________
	________________________________________________________________
	6.  If the property is located in a coastal area that is seaward of
	the Gulf Intracoastal Waterway or within 1,000 feet of the mean high
	tide bordering the Gulf of Mexico, the property may be subject to
	the Open Beaches Act or the Dune Protection Act (Chapter 61 or 63,
	Natural Resources Code, respectively) and a beachfront
	construction certificate or dune protection permit may be required
	for repairs or improvements.  Contact the local government with
	ordinance authority over construction adjacent to public beaches
	for more information.
	_______________________________________________________
	Date                        Signature of Seller
	The undersigned purchaser hereby acknowledges receipt of the
	foregoing notice.
	_______________________________________________________
	Date                        Signature of Purchaser
	SECTION 23.  Not later than January 1, 2008, the
	commissioner of the General Land Office shall adopt rules required
	by Sections 61.011 and 63.121, Natural Resources Code, as amended
	by this Act.
	SECTION 24.  Sections 33.014, 33.110(b), and 33.613, Natural
	Resources Code, are repealed.
	SECTION 25.  This Act takes effect September 1, 2007.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 2819 was passed by the House on April
	12, 2007, by the following vote:  Yeas 143, Nays 0, 1 present, not
	voting; that the House refused to concur in Senate amendments to
	H.B. No. 2819 on May 23, 2007, and requested the appointment of a
	conference committee to consider the differences between the two
	houses; and that the House adopted the conference committee report
	on H.B. No. 2819 on May 27, 2007, by the following vote:  Yeas 147,
	Nays 0, 2 present, not voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 2819 was passed by the Senate, with
	amendments, on May 21, 2007, by the following vote:  Yeas 31, Nays
	0; at the request of the House, the Senate appointed a conference
	committee to consider the differences between the two houses; and
	that the Senate adopted the conference committee report on H.B. No.
	2819 on May 26, 2007, by the following vote:  Yeas 30, Nays 0.
	______________________________
	Secretary of the Senate
	APPROVED: __________________
	Date
	__________________
	Governor