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AN ACT
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relating to the use of executory contracts for the purchase of land |
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to be used as a residence in certain counties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 5, Property Code, is |
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amended by adding Section 5.0622 to read as follows: |
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Sec. 5.0622. ADDITIONAL APPLICABILITY: CERTAIN COUNTIES. |
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(a) This section applies only to a county with a population of less |
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than 100,000 that is located in a metropolitan statistical area as |
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defined by the federal Office of Management and Budget: |
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(1) with a population of more than 1.5 million; and |
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(2) adjacent to a different metropolitan statistical |
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area as defined by the federal Office of Management and Budget with |
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a population of more than 2 million. |
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(b) The commissioners court of a county may adopt an order |
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requiring an executory contract for the conveyance of land used or |
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to be used as a residence located in the county to be subject to this |
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subchapter. The order must specify a method for determining |
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whether the land is used or to be used as a residence. |
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(c) The order may not include an executory contract for the |
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conveyance of land: |
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(1) described by Section 5.062(b), (c), or (d); or |
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(2) that is to be used primarily for agricultural use, |
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as defined by Section 1-d, Article VIII, Texas Constitution, or for |
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farm, ranch, wildlife management, or timber production use within |
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the meaning of Section 1-d-1, Article VIII, Texas Constitution, and |
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for which no part of the land is to be used as a residence. |
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(d) If a tract described by Subsection (c)(2) ceases to be |
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used primarily for agricultural use or for farm, ranch, wildlife |
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management, or timber production use, or any part of the land is |
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used as a residence, the executory contract for the conveyance of |
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the land may be included in an order authorized by this section. |
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SECTION 2. Subchapter D, Chapter 5, Property Code, is |
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amended by adding Section 5.087 to read as follows: |
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Sec. 5.087. ADDITIONAL PROVISIONS: CERTAIN COUNTIES. (a) |
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This section applies only to a county adopting an order under |
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Section 5.0622. |
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(b) The commissioners court may not modify the provisions of |
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this subchapter except the commissioners court may provide in the |
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order that an executory contract to which the order applies may not |
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be used to purchase land for residential purposes unless the |
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conversion authorized by Section 5.081 is required to occur not |
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later than three years after the date the executory contract is |
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entered into. |
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SECTION 3. Sections 5.0622 and 5.087, Property Code, as |
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added by this Act, apply only to an executory contract entered into |
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on or after the date the commissioners court adopts an order |
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authorized by this Act. |
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SECTION 4. This Act takes effect September 1, 2021. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 4374 was passed by the House on May |
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11, 2021, by the following vote: Yeas 139, Nays 4, 2 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 4374 on May 28, 2021, by the following vote: Yeas 145, Nays 2, |
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1 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 4374 was passed by the Senate, with |
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amendments, on May 27, 2021, by the following vote: Yeas 31, Nays |
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0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |