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  80R7690 EJI-F
 
  By: Ritter H.B. No. 3624
 
 
 
   
 
 
A BILL TO BE ENTITLED
AN ACT
relating to the protection of coastal resources; providing for
administrative penalties.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Section 33.605(b), Natural Resources Code, is
amended to read as follows:
       (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 2.  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 3.  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 4.  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 5.  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 6.  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 7.  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 8.  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 9.  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 10.  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 commission 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 60th 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 60th 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 60th 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 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 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)  The trial courts of this state shall give preference to
an appeal from a final order of the commissioner under this section
as provided by Section 23.101(a), Government 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 60th 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.
       SECTION 11.  Section 61.020, Natural Resources Code, is
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.
       SECTION 12.  Section 61.025, Natural Resources Code, is
amended to read as follows:
       Sec. 61.025.  DISCLOSURE TO PURCHASER OF PROPERTY.  (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 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 provide the written notice to the purchaser
on or before the 10th calendar day before the effective date of any
conveyance or executory contract or to include the statement in an
executory contract for conveyance renders the conveyance or
executory contract voidable and shall be grounds for the purchaser
to terminate such contract, and upon termination any earnest money
shall be returned to the party making the deposit.
       (d)  Failure to provide this statement on or before the 10th
calendar day before the effective date of any [prior to closing,
either in the] executory contract for conveyance or to include the
statement in an executory contract for conveyance [or in a separate
written statement,] shall constitute a deceptive act under Section
17.46, Business & Commerce Code.
       (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 13.  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 14.  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 15.  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 16.  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 17.  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 18.  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)  The trial courts of this state shall give preference to
an appeal from a final order of the commissioner under this section
as provided by Section 23.101(a), Government 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.
       SECTION 19.  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 20.  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
__ Located in Area Where
   Beachfront Construction
   Certificate or Dune
   Protection Permit for
   Repairs or Improvements
   Required
__ 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):_____________________________
________________________________________________________________
________________________________________________________________
_______________________________________________________
Date                        Signature of Seller
The undersigned purchaser hereby acknowledges receipt of the
foregoing notice.
_______________________________________________________
Date                        Signature of Purchaser
       SECTION 21.  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 22.  This Act takes effect September 1, 2007.