BILL ANALYSIS |
|
C.S.H.B. 2214 |
|
By: Guillen |
|
International Trade & Intergovernmental Affairs |
|
Committee Report (Substituted) |
|
BACKGROUND AND PURPOSE
Interested parties note that the ability to advertise for development is different depending on whether the development is inside or outside of city limits. These parties find the difference in the ability to advertise about a development limiting because advertisements can help gauge demand for financing, which brings about greater development and leads to a more competitive market. C.S.H.B. 2214 seeks to create uniformity among advertising requirements for developers.
|
||||||||||
|
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
|
||||||||||
|
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
|
||||||||||
|
ANALYSIS
C.S.H.B. 2214 amends the Local Government Code to authorize a person who is a seller of lots in a subdivision or subdivider and who is a licensed, registered, or otherwise credentialed residential mortgage loan originator under applicable state law, federal law, and the Nationwide Mortgage Licensing System and Registry, before a plat has been finally approved and recorded, to enter into an earnest money contract with a potential purchaser and accept payment under the contract in an amount of $250 or less and to advertise in accordance with advertising standards for land in certain counties near an international border that is required to be platted. The bill establishes that an earnest money contract is void if the plat for the land has not been finally approved and recorded before the 91st day after the date the earnest money contract is signed by the potential purchaser, unless the potential purchaser agrees in writing to extend the period for plat approval and recording for an additional 90-day period. The bill authorizes the granting of only one such extension.
C.S.H.B. 2214 requires the seller, if an earnest money contract is void, to refund all earnest money paid to the potential purchaser not later than the 30th day after the date the earnest money contract becomes void. The bill authorizes the potential purchaser, if the seller fails to refund the earnest money in violation of that requirement, to recover, in a suit to recover the earnest money, an amount equal to three times the amount of earnest money required to be refunded plus reasonable attorney's fees.
C.S.H.B. 2214 requires a person, before entering into an earnest money contract, to provide written notice to the attorney general and to the local government responsible for approving the plat and establishes the information required to be included in the notice. The bill requires an earnest money contract to contain a specified statement relating to the maximum amount that may be collected under the contract. The bill establishes that its provisions regarding earnest money contracts apply in addition to other applicable law and prevail to the extent of a conflict with that other law.
C.S.H.B. 2214 specifies that the prohibition against certain forms of information and advertising containing any misrepresentation and the requirement that such information accurately describe the availability of water and sewer service facilities and electric and gas utilities relating to land in certain counties near an international border is in regard to land that is required to be platted instead of subdivided land generally. The bill applies that prohibition and requirement to an earnest money contract and further requires a brochure, publication, advertising of any form, and such a contract, if a plat for the land has not been finally approved and recorded, to include notice that a contract for the sale of any portion of the land may not be entered into until the land receives final plat approval and that the land may not be possessed or occupied until the land receives final plat approval and all water and sewer facilities for the lot are connected or installed in compliance with the model rules adopted by the Texas Water Development Board regarding minimum standards for water supply and sewer services in residential areas of political subdivisions. The bill changes from a person who is a seller of lots in a subdivision to a person who is a seller of lots in certain counties near an international border for which a plat is required the party to whom the Class A misdemeanor offense of knowingly authorizing or assisting in the publication, advertising, distribution, or circulation of any statement or representation that the person knows is false concerning land offered for sale or lease is applicable.
C.S.H.B. 2214 repeals Section 232.021(9), Local Government Code.
|
||||||||||
|
EFFECTIVE DATE
September 1, 2015.
|
||||||||||
|
COMPARISON OF ORIGINAL AND SUBSTITUTE
While C.S.H.B. 2214 may differ from the original in minor or nonsubstantive ways, the following comparison is organized and formatted in a manner that indicates the substantial differences between the introduced and committee substitute versions of the bill.
|
||||||||||
|