By: Holland, et al. (Senate Sponsor - Hughes) H.B. No. 697
         (In the Senate - Received from the House April 13, 2023;
  April 19, 2023, read first time and referred to Committee on
  Business & Commerce; May 10, 2023, reported adversely, with
  favorable Committee Substitute by the following vote:  Yeas 11,
  Nays 0; May 10, 2023, sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR H.B. No. 697 By:  King
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to seller's disclosures regarding fuel gas piping in
  residential real property.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  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
 
__ Smoke Detector
 
__ Smoke Detector -
 
   Hearing Impaired
 
__ Carbon Monoxide
 
   Alarm
 
__ Emergency Escape
 
   Ladder(s)
 
__ 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)
 
__ Natural Gas Lines __ Gas Fixtures
 
__ Liquid Propane Gas: __ LP Community __ LP on Property
 
   (Captive)
 
__ Fuel Gas Piping: __ Black Iron Pipe __ Corrugated
 
__ Copper   Stainless Steel
 
  Tubing
 
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.  Does the property have working smoke detectors installed in
  accordance with the smoke detector requirements of Chapter 766,
  Health and Safety Code?*  __ Yes  __ No  __ Unknown.
  If the answer to the question above is no or unknown,
  explain.  (Attach additional sheets if necessary):
 
 
         *Chapter 766 of the Health and Safety Code requires
  one-family or two-family dwellings to have working smoke detectors
  installed in accordance with the requirements of the building code
  in effect in the area in which the dwelling is located, including
  performance, location, and power source requirements.  If you do
  not know the building code requirements in effect in your area, you
  may check unknown above or contact your local building official for
  more information.  A buyer may require a seller to install smoke
  detectors for the hearing impaired if:  (1) the buyer or a member of
  the buyer's family who will reside in the dwelling is hearing
  impaired; (2) the buyer gives the seller written evidence of the
  hearing impairment from a licensed physician; and (3) within 10
  days after the effective date, the buyer makes a written request for
  the seller to install smoke detectors for the hearing impaired and
  specifies the locations for installation.  The parties may agree
  who will bear the cost of installing the smoke detectors and which
  brand of smoke detectors to install.
  3.  Are you (Seller) aware of any known defects/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):________________________________
  ________________________________________________________________
  ________________________________________________________________
  4.  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 Damage __ Hazardous or Toxic Waste
 
   Needing Repair    
 
__ Previous Termite Damage __ Asbestos Components
 
__ Previous Termite __ Urea formaldehyde
 
   Treatment    Insulation
 
__ Radon Gas
 
__ Improper Drainage __ Lead Based Paint
 
__ Water Damage Not Due to a __ Aluminum Wiring
 
  Flood Event    
 
__ Previous Fires
 
 
__ Unplatted Easements
 
 
__ Landfill, Settling, Soil __ Subsurface
 
   Movement, Fault Lines    Structure or Pits
 
__ Single Blockable Main __ Previous Use of Premises
 
   Drain in Pool/Hot    for Manufacture of
 
   Tub/Spa*    Methamphetamine
  If the answer to any of the above is yes, explain.  (Attach
  additional sheets if necessary):________________________________
  ________________________________________________________________
  ________________________________________________________________
         *A single blockable main drain may cause a suction entrapment
  hazard for an individual.
  5.  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).
  _________________________________
  6.  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.
 
  __  Present flood insurance coverage
  __  Previous flooding due to a failure or breach of a reservoir or a
  controlled or emergency release of water from a reservoir
  __  Previous water penetration into a structure on the property due
  to a natural flood event
  Write Yes (Y) if you are aware and check wholly or partly as
  applicable, write No (N) if you are not aware.
 
  __ Located ( ) wholly  ( ) partly in a 100-year floodplain (Special
  Flood Hazard Area-Zone A, V, A99, AE, AO, AH, VE, or AR)
  __ Located ( ) wholly  ( ) partly in a 500-year floodplain (Moderate
  Flood Hazard Area-Zone X (shaded))
  __ Located ( ) wholly  ( ) partly in a floodway
  __ Located ( ) wholly  ( ) partly in a flood pool
  __ Located ( ) wholly  ( ) partly in a reservoir
  If the answer to any of the above is yes, explain (attach additional
  sheets as necessary):
 
         * For purposes of this notice:
         "100-year floodplain" means any area of land that:
               (A)  is identified on the flood insurance rate map as a
  special flood hazard area, which is designated as Zone A, V, A99,
  AE, AO, AH, VE, or AR on the map;
               (B)  has a one percent annual chance of flooding, which
  is considered to be a high risk of flooding; and
               (C)  may include a regulatory floodway, flood pool, or
  reservoir.
         "500-year floodplain" means any area of land that:
               (A)  is identified on the flood insurance rate map as a
  moderate flood hazard area, which is designated on the map as Zone X
  (shaded); and
               (B)  has a two-tenths of one percent annual chance of
  flooding, which is considered to be a moderate risk of flooding.
         "Flood pool" means the area adjacent to a reservoir that lies
  above the normal maximum operating level of the reservoir and that
  is subject to controlled inundation under the management of the
  United States Army Corps of Engineers.
         "Flood insurance rate map" means the most recent flood hazard
  map published by the Federal Emergency Management Agency under the
  National Flood Insurance Act of 1968 (42 U.S.C. Section 4001 et
  seq.).
         "Floodway" means an area that is identified on the flood
  insurance rate map as a regulatory floodway, which includes the
  channel of a river or other watercourse and the adjacent land areas
  that must be reserved for the discharge of a base flood, also
  referred to as a 100-year flood, without cumulatively increasing
  the water surface elevation more than a designated height.
         "Reservoir" means a water impoundment project operated by the
  United States Army Corps of Engineers that is intended to retain
  water or delay the runoff of water in a designated surface area of
  land.
  7.  Have you (Seller) ever filed a claim for flood damage to the
  property with any insurance provider, including the National Flood
  Insurance Program (NFIP)?* __ Yes  __ No.  If yes, explain (attach
  additional sheets as necessary):
 
         *Homes in high risk flood zones with mortgages from federally
  regulated or insured lenders are required to have flood
  insurance.  Even when not required, the Federal Emergency
  Management Agency (FEMA) encourages homeowners in high risk,
  moderate risk, and low risk flood zones to purchase flood insurance
  that covers the structure(s) and the personal property within the
  structure(s).
  8.  Have you (Seller) ever received assistance from FEMA or the
  U.S. Small Business Administration (SBA) for flood damage to the
  property? __ Yes  __ No.  If yes, explain (attach additional sheets
  as necessary):
 
  9.  Are you (Seller) aware of any of the following?
  Write Yes (Y) if you are 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 or 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.
 
__ Any rainwater harvesting system located on the property that is larger than 500 gallons and that uses a public water supply as an auxiliary water source.
 
__ Any portion of the property that is located in a groundwater conservation district or a subsidence district.
  If the answer to any of the above is yes, explain.  (Attach
  additional sheets if necessary):  ______________________________
  ________________________________________________________________
  ________________________________________________________________
  10.  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.
  11.  This property may be located near a military installation and
  may be affected by high noise or air installation compatible use
  zones or other operations.  Information relating to high noise and
  compatible use zones is available in the most recent Air
  Installation Compatible Use Zone Study or Joint Land Use Study
  prepared for a military installation and may be accessed on the
  Internet website of the military installation and of the county and
  any municipality in which the military installation is located.
  _______________         ________________________________________
  Date                     Signature of Seller
  The undersigned purchaser hereby acknowledges receipt of the
  foregoing notice.
  _______________         ________________________________________
  Date                     Signature of Purchaser
         SECTION 2.  Section 5.008(b), Property Code, as amended by
  this Act, applies only to a transfer of property that occurs on or
  after the effective date of this Act. A transfer of property that
  occurs before the effective date of this Act is governed by the law
  applicable to the transfer immediately before that date, and the
  former law is continued in effect for that purpose. For the
  purposes of this section, a transfer of property occurs before the
  effective date of this Act if the contract binding the purchaser to
  purchase the property is executed before that date.
         SECTION 3.  This Act takes effect September 1, 2023.
 
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