BILL ANALYSIS

Senate Research Center	H.B. 697
	By: Holland et al. (Hughes)
	Business & Commerce
	4/26/2023
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Corrugated stainless steel tubing (CSST) is one of several products on the market used to deliver natural gas and propane. First introduced in the 1990s, the product is widely used in residential, commercial, and industrial buildings. Many builders choose it because it is flexible and requires an average of 75 percent less fittings than traditional iron pipe, making it easier to connect appliances.

CSST can be dangerous if not properly installed and exposed to high levels of electricity, such as a lightning strike or electrical arching, or punctures. Such an event can lead to the release of gas, which combined with the electrical charge, can result in deadly house fires, if the installation is not correctly bonded and grounded. 

H.B. 697 would add CSST disclosures to the home seller's list of disclosures. The seller must note whether the house was built with black iron pipe, CSST, or copper. This puts buyers on notice and allows buyers to consider the effect such material may have and any risks associated with them. H.B. 1993 also adds transparency in the disclosure as to whether the property lies within a special district, and if so, what the ad valorem taxes or assessments are.

H.B. 697 amends current law relating to seller's disclosures for the sale of residential real property.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 5.008(b), Property Code, to require that the seller's notice be executed and sets forth language required to be included on the notice, including information about each special district in which the property is located.

SECTION 2. Makes application of Section 5.008(b), Property Code, as amended by this Act, prospective.

SECTION 3. Effective date: September 1, 2023.