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  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