2011 Legislative Update & Report · 2017-04-18 · from permissive to mandatory. This does not apply to a residential construction contract – Amends Property Code Section 53.156

1

2011 Legislative Update & Report

Roland LoveWinstead [email protected]

Texas Land Title AssociationSeptember 7, 2011

Dawn MooreAllegiance Title [email protected]

2

Session Overview

• 82nd Texas Legislative Session– 1/11/2011 thru 5/30/2011 (140 days)– Filibuster (prolonged discussion of bill intended to delay legislative action)– Special session adjourned 6/29/2011

• Hot Topics– Budget

• Education• Healthcare

– Immigration• Sanctuary Cities

– Voter identification– Redistricting

3

Session Stats

• Bills Filed = 5796 (vs. 7419 in 2009)

• Bills signed into Law = 1458

• Vetoes = 24 (i.e. HB 1429, LL duty to provide copy of lease)

• Bills that became law w/o Signing = 27

• 1,623 less bills filed than 2009, but higher percentage passed

Approximately 307 affect real estate

5

Construction

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7

Retainage Rights ExpandedHB 1390

• Provides that a claimant has a lien on retainage if it gives notice and either complies with the requirements of the retainage subchapter or files an affidavit claming a lien– Amends Property Code Chapter 53

• Effective: September 1, 2011

8

Retainage• Retainage under construction contracts (HB 1390/ SB 590)

– A claimant has a lien, and owner is personally responsible if the claimant files affidavit (with notice) by

• Date required under Prop Code § 53.052• 40th day after completion date stated in affidavit (if notice)• 40th day after termination/abandonment of original contract (if notice)

• 30th day after owner sent claimant to address provided in retainage notice

– Claimant has a lien on retained funds if the claimant sends notice and files affidavit by 30th day of earliest of completion, termination, or abandonment

9

Forms of Waiver of LienConditional and FinalHB 1456/SB 1332

• Waiver and release of a mechanic’s, contractor’s or materialman’s lien or payment bond claim – Amended Property Code Sections 53.021(d), 53.085(c); Adds Property Code, Chapter 53, Subchapter L

• Effective: January 1, 2012

10

Waiver & Release• HB 1456/SB 1332

– Passed in Senate; Sent to Governor May 26, 2011– Affidavit may include waiver conditioned on payment,

indemnification from loss based on misinformation in affidavit– Enforceable only if executed and delivered…– Conditional

• Statement in writing• Claimant received payment for lien• Statement is in original contract/subcontract made before labor/materials provided

• Waiver renders filing of lien unenforceable unless written explanation for nonpayment, notice of request for lien release, and lien claimant hasn’t filed affidavit within 14 days

– Unconditional

11

Mechanic’s Liens

• Attorney’s Fees for Mechanic’s Lien Claims SB 539/ HB 346– Signed by Governor May 12, 2011– In proceedings to foreclose on mechanic’s liens, against a bond, or to declare that a lien is unenforceable, “court shall award costs and reasonable attorney’s fees”

– Only applies to proceedings commenced on or after effective date

– Does not apply to residential construction contracts

12

Attorney’s Fees for Mechanic’s Lien Claims

SB 539/HB 346

• Changes the court’s award of attorney’s fees and costs in proceedings to foreclosure of a mechanic’s contractor’s or materialman’s lien from permissive to mandatory. This does not apply to a residential construction contract– Amends Property Code Section 53.156


13

“Anti Indemnity”HB 2093

• As a general rule, HB 2093 prohibits a person from indemnifying another person from claims or damages to the extent caused by the indemnitee’s negligence.

• Indemnity clauses violating this prohibition will be void and unenforceable.

• This extends to “joint defense agreements.”• This does not apply to on‐the‐job employee bodily injury claims.

• Will require changes to insurance– Amends Title 2, Chapter 151, Insurance Code


14

Conveyancing and Recording

15

Transfer Fees ProhibitedHB 8

• Provides that a private transfer fee obligation created on or after the effective date of the subchapter is not binding or enforceable against a subsequent owner or subsequent purchaser of an interest in real property and is void– Adds Property Code Chapter 5, Subchapter G; Repeals Property Code Section 5.017

• Effective: June 17, 2011

16

Transfer Fees

Application to You:• An Exception:

– A commission paid to a licensed RE broker under a written agreement, including additional commission for appreciation, development or sale after property transferred to purchaser

• Existing transfer fees – notice must be recorded; can be extinguished if guidelines not met

etc.

• DISCLOSURE OF TRANSFER FEE REQUIRED IN CONTRACT FOR SALE– If property may be/is subject to transfer fee, Seller SHALL provide

WRITTEN notice to potential purchaser that the transfer fee obligation may be governed by Ch. 5, Subchapter G, of the Property Code

– Contract canNOT waiver this right of purchaser

17

Corrections Anyone?

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Solutions• Correction Documents

– Parties may correct to reflect original intent

– Preparer/escrow officer may correct scrivener’s error

– Notice requirements

– Bfp protected

– Not for foreclosure

– SB 1496/ HB 2254• Effective: September 1st, 2011

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Rules for Correction InstrumentsSB 1496

– Correction of Nonmaterial ambiguity/error• Generally clerical

• Must disclose basis of knowledge of error

• Must record instrument in each county where original is recorded

– Correction of Material ambiguity/error• Adding, removing, or modifying to accurately reflect informationabout the conveyance or property

• Must be executed by every party to original conveyance

• Recorded in each county where original is recorded– Amended Property Code Chapter 5

» Effective: September 1, 2011

20

Notice of Lis Pendens‐ Constructive NoticeSB 1187

• Constructive Notice from a Notice of Lis Pendens arises upon indexing– Amends Property Code Section 13.004


21

Deeds in Lieu at ClosingHB 3116/SB 1320

• Prohibits a seller of residential real estate or a person who makes an extension of credit and takes a security interest or mortgage against residential real estate from requesting or requiring the purchaser or borrower, before or at the time of conveyance or extension of credit, to execute and deliver a deed conveying the residential real estate to the seller or person making the extension of credit

22

Deeds in Lieu at ClosingHB 3116/SB 1320

• Provides that a deed executed in violation of the section is voidable for a period of four years unless a subsequent purchaser acquires the property for value and without notice, including notice provided by actual possession of the property by the grantor of the deed– Adds Business & Commerce Code Chapter 21; Amends Civil Practice and Remedies Code 121.005(a) and Property Code Section 24.004

• Effective September 1, 2011

24

Foreign Person Acknowledgment SB‐1320

• Allows a current passport issued by a foreign country to be used as satisfactory evidence of the identity of an acknowledging person with respect to a deed or other instrument relating to a residential real estate transaction– Business & Commerce Code Chapter 21: amended Civil Practice and Remedies Code Section 121.005(a), and Property Code Section 24.004


25

Co‐Owner May Encumber PropertySB 1368

• NEW LAW Allows co‐owner of the property to encumber the property– Co‐Owner must have occupied the property for more than five years, have a residence homestead exception, and paid all property taxes without help from co‐owner.

• Effective June 17, 2011

26

Eminent Domain

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Eminent Domain RestrictedSB 18

• Offer Requirements:– The initial offer and final offer are made in writing

– The final offer is made on or after the 30th day after the initial offer is made

– The entity gives the owner at least 14 days to respond to the final offer

• Amends Property Code Chapter 21.0111– Effective: September 1, 2011

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• Notice RequirementsThe parties are now entitled to 20 days notice of the hearing (increased from 11)

• Amends Property Code Chapter 21.016

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• If the condemnor does not make a bona fide offer, then the court shall abate the suit, order the condemnor to make a bona fide offer, and order the condemnor to pay all costs and … “any reasonable attorney’s fees and other professional fees incurred by the property owner that are directly related to the violation– Amends Property Code Chapter 21.047

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• Right to Repurchase– The right to repurchase the property exists only when

• The public use for which the property was acquired was cancelled before the property is used for that public use

• No actual progress on the property is made between the date of acquisition and on the 10th anniversary of acquisition

– Texas Property Code 21.101

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• When the public use is not realized within the 10‐year period, the acquiring entity must give notice to the person with the right to repurchase.

• But the party has only one year measured from the day of acquiring entity was required to give notice to repurchase the property– Texas Property Code 21.102, 21.1022

32

Community Land TrustsSB 402

• Enables cities to set up “community land trusts” to provide affordable housing for low and moderate income residents– Adds Local Government Code Sections 373B.001‐373B.008; Adds Tax Code Section 11.1827; Amends Tax Code Sections 11.43 and 23.21


34

Community Estate‐ Fraud Factor in DivisionHB 908

• Provides procedure in cases where fraud on the community has occurred by defining a “reconstituted estate” and outlining specific factors to consider in determining fraud on the community and division of the marital estate in light of the fraud on the community– Adds Family Code Section 7.009


36

EstatesAffidavits in Lieu of Inventory

SB 1198• Permits Affidavit in lieu of inventory and accounting– This may impact title examination in connection with estate tax liability

– Grants power of sale of real property in situations where executor or administrator would not have authority if all beneficiaries of the sale consent

• Amends Probate Code, various chapters– Effective: September 1, 2011

37

Former Owners May Redeem PropertyHB 2759

• Describes how a former owner can redeem property if probate estate nonjudicially or judicially foreclosed a lien owned by the estate– Adds Chapter H to Texas Estates Code Section 1158.351


38

Texas Probate Code RevisionsHB 2759

• Relating to the nonsubstantive revision of provisions of the Texas Probate Code relating to durable powers of attorney, guardianships, and other related proceedings and alternatives, and the resignation of certain other provisions of the Texas Probate Code, including conforming amendments and repeals– Adds new Chapter H‐ Texas Estates Code Section 1158.351


40

Foreclosure

41

Decedent’s EstateSB 1198

• Makes clear that in a pending independent administration, neither a nonjudicial nor a judicial foreclosure of a preferred lien can commence until six months after the letter testamentary is granted– Adds Texas Probate Code Section 146 (b‐2)


42

Notice for Servicemembers Being Foreclosed On

SB 101• The demand to cure and foreclosure sale notices required by Tex. Prop. Code § 51.002 must contain a mandatory and conspicuous notice in boldface or underlined type telling a borrower who is in the military to contact the person sending the foreclosure notices immediately. The name and address of the person sending the foreclosure notices must also be disclosed. This provision also applies to the foreclosure of assessment liens.– Adds Texas Property Code Section 51.002(i); amends Sections 51.015(1‐a) and 51.015(b)


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Notice

• “Assert and protect your rights as a member of the armed forces of the United States. If you or your spouse is serving on active military duty, including active military duty as a member of the Texas National Guard or the National Guard of another state or as a member of a reserve component of the armed forces of the United States, please send written notice of the active duty military service to the sender of this notice immediately.”

45

Landlord‐ Tenant

46

Smoke Alarms & Fire Extinguishers

HB 1168• NEW LAW

– Applies to home, condo, mobile home, duplex, apartment not occupied by the owner

– Modifies definitions, application with other laws, battery v. alternating current, how and where smoke alarm installed

– Requires LL to inspect fire extinguisher/duty to repair

• Effective Sept. 1, 2011

47

Failure to Maintain PremisesHB 1862

• NEW LAW Provides tenant with remedies against LL if a municipality or county revokes a CO because of a LL’s failure to maintain the premises– If tenant is not in default of lease

– LL liable for • full security deposit, pro‐rata share of rentals advanced• Tenant’s actual damages, including moving, utility connection, storage fees, lost wages, attorneys fees etc.


48

Assignment of Rents‐ at lastSB 889

• Relating to assignment of rents to holders of certain security interests in real property– Establishes a presumption that an enforceable security instrument in

favor of a lender creates a collateral assignment of accrued andunaccrued rents from any real property secured by the security instrument.

– Provides that all assignments of rents constitute a “collateral assignment”, which is a pledge of rents as collateral for a loan.

– Negates the concept of “an absolute assignment of rent”, which conveys title to rents to a lender.

– Provides the method for enforcing an assignment of rents.• Adds Property Code Chapter 64; Amends Business & Commerce Code Section 9.109

– Effective June 17, 2011

49

Failure to Pay Rent During an AppealHB 1111

• Relating to a tenant’s failure to pay rent during an appeal of an eviction for nonpayment of rent after filing a pauper’s affidavit

• If the initial deposit is not paid to the court within 5 days of filing the pauper’s affidavit, a writ of possession may be issued without hearing– Amends Property Code Sections 24.004, 24.0053 and 24.0054


50

Notice of Servicemember’s Rights of Relief

HB 1127• Requires the citation served in an eviction suit to contain a mandatory notice in Spanish and English advising a tenant who is an active military duty that they might have special rights of relief under the Servicemembers Civil Relief Act– Amends Texas Property Code Sections 24.0051(d), 209.006(b) and adds 51.002(i)


51

Landowner Liability to TrespasserSB 1160

• Provides that an owner, lessee, or occupant whose actions are justified under the Penal Code is not liable to a trespasser for resulting damages– Amended Civil Practice and Remedies Code Section 75.006; adds Civil Practice and Remedies Code Section 75.007

• Effective: May 20, 2011

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Limits to LiabilitySB 1160

• NEW LAW – Owner/lessee/occupant of agricultural land not liable for damage or injury to person or property arising from actions of peace officer or federal law enforcement officer when enters land with or without permission

– Owner/lessee/occupant owes no duty of care to a trespasser (codifies current common law)

• If actions are justified under the Penal Code, not liable to a trespasser for resulting damages

• Effective May 20, 2011

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Lenders

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Regulatory Authority for Mortgage Loan Services

SB 17• Provides regulatory authority to ensure residential mortgage loan servicers comply with applicable federal and state laws, rules, and regulations– Adds Finance Code Chapter 158; Amends Finance Code Chapter 157


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Regulation of Residential Mortgage LendingSB 1124

• Licensing and regulation of certain persons involved in residential mortgage lending pursuant to the Texas Secure and Fair Enforcement of Mortgage Licensing Action of 2009; providing penalties– Adds Finance Code Section 13.016; Amends Finance Code Chapter 15, 156, and 180 and Section 342.051; Repeals multiple provisions of Finance Code


57

Payoff Statements BindingHB 558

• Requires Finance Commission to adopt rules governing title insurance company requests for payoff information from mortgage services related to home loans, and to prescribe a standard mandatory payoff statement form– Adds Finance Code Section 343.106


58

Property Owners Associations

60

POA Resale CertificatesHB 1821

– May be obtained by purchaser under contract

– Purchaser pays Property Owners Ass’n for issuing resale certificate

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POA Info & Guidelines

Application to you: RESALE CERTIFICATES

• WHO can request:– Now includes purchaser & purchaser’s agent IFaccompanied by evidence (i.e. contract)

• COST:– Purchaser shall pay unless parties contract otherwise– Fee canNOT be charged if certificate is not provided timely– POA may require upfront payment for issuing, but can’t process payment until the certificate is ready for delivery

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Application to you: RESALE CERTIFICATES (cont.)

• TIMING:– POA shall deliver not later than 10th business day after written

request is received.

• NEW ITEMS INCLUDED:– Amount & PURPOSE of special assessments approved before/due

after issuance– Statement of all fees associated with the transfer of ownership (w/

description of fee, to whom fee paid, & amount)

• Applies to all requests received on or after Jan. 1, 2012

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Protection of Servicemembers from POA Foreclosure

SB 101• Adds ‘lien securing payment of an assessment’to the provisions for members of the military on active duty or nine months after their active duty concludes– Amends Property Code Sections 51.002 and 51.015


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Amendments to CCR’sHB 232

• Provides that amendment of a restriction affecting a residential real estate subdivision is effective upon approval and filing in the county real property records, notwithstanding a different effective date in the instrument– Amends Property Code Sections 211.001 and 211.002


65

Solar Devices OkHB 362

• Prohibits POA’s from restricting solar devices and certain roof shingles– Adds Property Code Sections 202.010 and 202.011


66

POA’s‐ Ex Parte Process Required for Foreclosure of Liens

HB 1228• Collection of assessments and other charges owed to a property owners’ association and foreclosure of a property owners’ association assessment lien– Amends Property Code Section 209.003; Adds Property Code Sections 209.0062, 209.0063, 209.0064, 209.0091, 209.0092, 209.0093 and 209.0094

• Effective: January 1, 2012, expect for Section 209.0092(b) takeseffect September 1, 2011

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Application of POA PaymentsHB 1228 (Cont)

• Payment Plans: It is now mandatory for any POA with more than 14 lots to offer a payment plan. Minimum of 3 months, maximum of 18 months

• The order in which a POA must apply an owner’s payments is as follows:

1. Delinquent assessments2. Current assessments3. Attorney fees and collection costs associated with delinquent

assessments4. Other attorney fees5. Fines6. Any other amounts

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POA Foreclosure ProvisionsHB 1228 (Cont)

• Only licensed attorneys may file assessment lien or other notices of non‐payments in public records.

• Unless otherwise agreed to by an owner, all POA foreclosures are required to go through an expedited judicial foreclosure process.

• Approval by 67% of the votes in the POA may either add or remove the foreclosure previsions

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Limits on POA LimitsHB 1278

• Limits POA’s right to enforce or adopt restrictive covenants that prohibit displaying or affixing (on a dwelling entry) religious items secondary purpose resulting from the elimination of urban blight as provided above– Adds Property Code Section 202.018


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Extra Tidbits• NEW LAW Solar Devices & certain roof singles are OK (HB

362)

• NEW LAW Can’t prohibit display or affixing (on a dwelling entry) religious items (HB 1287)

• NEW LAW Modifies Operation Guidelines and Requirements (meetings, elections, voting, etc) (HB 2761)

• NEW LAW Allows display of flags, but has certain limitations (HB 2761)

• GOAL: increase overall value to the communities

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POA’s‐ Resale Certificates and other ProceduresHB 1821

• Modifies rights and duties of resale certificates and other key documents. Mandates that POA’s with websites post dedicatory instruments. Mandates that POA’s with more than 14 lots establish alternative payment guidelines and file them in county real property records.– Adds Property Code, Sections 207.006 and 209.0062


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POA/HOA Info & Guidelines

Application to you: DEDICATORY INSTRUMENTS

• POA’s shall file all dedicatory instruments in the real property records– Have until 1.1.2012 to record or NO effect until filed

• Prior action not invalidated if not recorded

• Mandates that POA’s with websites post dedicatory instruments

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POA/HOA Info & Guidelines

Application to you: REPAYMENT

• Mandates that POA’s with more than 14 lots establish alternative payment guidelines– For repayment of delinquent or special assessments

– w/o accruing additional monetary penalties

• Shall file guidelines in county real property records

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POA’s‐ Operational Guidelines and Requirements

HB 2761• Regulates POA’s regarding operations, records, POA meetings, elections, voting and foreclosures. – Amends Property Code Section 209.002, 209.005 and 209.009; Adds Property Code Sections 209.0051, 209.0056‐209.0059, 209.00591‐209.00593 and 209.014


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Association RecordsHB 2761 (Cont)

• A POA with more than 14 lots must adopt and record a record retention policy for the following records:

1. Governing documents (no time limitation)2. Owner account information (5 years)3. Board and annual/special meeting minutes (7 years)4. Tax return and POA audits (7 years)5. Contracts for one year or more (4 years after the contract)

• An owner may not be disqualified to vote for any reason, including delinquent assessments.

• The POA is required to hold an annual meeting

76

Mixed Use POA’sHB 2869

• Affects powers and duties of certain “master mixed‐use property owners’ associations.”Provides for architectural control. Regulates enforcement and foreclosure and allows both recovery of attorneys fees and costs and use of self‐help in some cases– Adds Property Code Sections 215.001‐215.015


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Realtors

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Realtor Exemption from DTPASB‐ 1353

• Exempts from DTPA a claim against a person licensed as a real estate broker or salesperson arising from an act or omission by the person while acting as a broker or salesperson. Excludes a material misrepresentation of a material fact.– Amends Business & Commerce Code Section 17.49

• Effective: May 28, 2011

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Seller’s Disclosure

• NEW LAW “Single Blockable Main Drain in Pool/Hot Tub/Spa” added by SB 710

• NEW LAW more disclosure detail regarding seller’s knowledge of supply lines for natural gas or liquid propane gas added by HB 3389


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Single Blockable Main Drain:

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Single Blockable Main Drain (cont.):

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Single Blockable Main Drain (cont.):

• Entrapment occurs when a part of a body becomes attached to a drain as a result of the powerful suction of water circulation system or when arms or legs are inserted into a drain w/ a missing or broken cover.– Since 1980, 145 incidents involving suction entrapment in swimming pools

– Includes as many as 39 deaths of children

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Gas Source of a Property:

1. The Property has the items checked below:

84


Application to you:

• Seller liability protection/buyer forewarning

• Responsibility on the Seller (and perhaps realtor?) to hire professional to determine these potentially dangerous hazards?– or mark Yes to error on side of caution?

85

Taxation

86

Ad Valorem ExemptionHB 252

• Relating to eligibility for exemption from ad valorem taxation of the residence homestead of a person– Amends Tax Code § 11.43 by adding subsections (j), (n), and (o).

– Amends Tax Code § 11.432• Effective January 1, 2012

87

Ad Valorem ExemptionHB 252

• NEW LAW Only eligible for homestead exemption if:– Address of home matches address on driver’s license AND address on vehicle registration or utility bill

– If person not on the deed, must provide affidavit establishing applicant’s ownership

• Effective Jan. 1, 2012

88

Exemptions for Spouses of Disabled VeteransSB 516

• NEW LAW Relating to the exemption from ad valorem taxation of all or part of the appraised value of the residence homestead of the surviving spouse of a 100 percent or totally disabled veteran. This bill is contingent on the passing of a constitutional bill in order to take effect. This applies if thefollowing occur:– The surviving spouse has not remarried since the death of the veteran– The property was the residence homestead of the surviving spouse

when the veteran died.

• Effective January 1, 2012, if passed.

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Back Taxes on ImprovementsSB 551

• Permits taxing districts to collect interest on back taxes where the appraised value did not include new improvements. No interest is due back if the back taxes are paid off within 120 days after the tax bill is sent– Amends Tax Code § 26.09, Tax Code § 31.01


90

Transfer of Ad Valorem Tax LiensSB 762

• Provides clarity to the fees that tax lien financers can charge. Authorizes Finance Commission to implement rules with regard to fees and payoff statements.– Amends Tax Code § 32.06 by adding Subsections (a‐3), (d‐1), (f‐3), and (j)

– Amends Tax Code § 33.445 Subsection B– Amends Finance Code Chapter 351 by adding § 351.0021, amends Finance Code § 351.006 and Finance Code §351.051


91

Appraisal for Ad Valorem Tax Purposes For Water‐Stewardship Land

SJR 16• Provides a constitutional amendment providing for the appraisal for ad valorem tax purposes of open‐space land devoted to water‐stewardship purposes on the basis of its productive capacity– Amends Constitution, Article VIII Section 1‐d‐1(a)

• Effective: Subject to passage at election November 8, 2011

92

Title Insurance

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“We got a great deal on the apartment, but, unfortunately,it didn’t include the mineral rights.”

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Omnibus Title Insurance BillHB 2408/SB 1457

• Minerals Coverage• Voluntary but no charge for loan policy endorsement. No

discount rate from broad exception. Allows a title insurance company to except from coverage a mineral estate or any instrument that purports to reserve or transfer any portion of a mineral estate.

• Mineral coverage sections not effective until January 1, 2012.– Amends Insurance Code Chapters 2501, 2502, 2651, 2652 and 2703.

Adds Insurance Code Sections 2501.009, 2651.3015, 2651.303, 2652.059, 2652.2015, 2652.203, 2703.0515, 2703.055 and 2703.056;Repeals Insurance Code Section 2703.205


95

Application to You:

• If a general mineral exception is taken, it is worthwhile for a landowner to purchase the T‐19.2 or T‐19.3 endorsement.

• This is particularly so if the property is in a mineral producing area (e.g. Barnett Shale)

• This endorsement provides surface protection for a minimal cost.

96

Omnibus Title Insurance Bill (Cont)HB 2408

• Licensing of Agents‐ The licensing of escrow officers and agents is separated from the complaint investigation process, unless there is an ongoing criminal investigation or alleged continuing acts of fraud. TDI must give notice to the subject of enforcement actions, and must do so timely.

• Licensing must be processed with a certain timeframe

• TDI has disclosure to inform hiring agents about applicants with troubling financial or ethical backgrounds

97

Omnibus Title Insurance Bill (Cont)HB 2408

• Hearing Process Reform‐ Biennial hearing is eliminated.

• Any of the following can request hearings: TLTA, ITAT, OPIC, or underwriter

• Hearing process is assigned a timetable to ensure a speedy process

• Violations of the process can lead to district court

98

What’s New at TDI?

• A New Commissioner

• Rate Hearings Streamlined (HB 2408/SB 1457)

• Licensing/Enforcement Due Process

• Agent Minimum Capitalization Plan (HB 2604)

99

P‐53 ClarifiedH.B. 2408

• Basics– Title company cannot pay for anything that is a realtor’s cost of business

• Texas Department of Insurance had taken the position:– Title company must charge actual cost of continuing education

– Nearly impossible to determine

• NEW LAW– Idea is Market Rate– What your competitors are charging

101

TDI SunsetHB 1951

• Relating to the continuing operation of the Texas Department of Insurance

• OPIC survives an additional 10 years• Amends Insurance Code, Chapter 31 (lots more codes here, fix this)• Effective September 1, 2011

102

Water

103

Water Stewardship Tax IncentiveSB 449

• NEW LAW Creates a tax incentive similar to wildlife or agriculture valuation for water stewardship practices. A way to incentivize and reward landowners for protecting water resources


104

Groundwater OwnershipSB 332

• Recognizes ownership of groundwater below the surface of land, the right to produce that groundwater, and the management of groundwater in this state– Amends Water Code Sections 36.002 and 36.101


105

Groundwater OwnershipSB 332

• NEW LAW– Supported vigorously by the Farm Bureau, Texas and Southwestern Cattle Raisers, and Texas Wildlife Association

– Confirms Texas landowner’s “vested right” in water beneath their land

– Confirms that groundwater districts have state support to continue to manage the resource

– Issue remains: how will this affect the ability of groundwater districts’ to manage the dwindling supply for future generations – likely, will be a lot of litigation over this issue


106

Calculating Water Use MethodologySB 181

• Requires TWQB and TCEQ to develop uniform, consistent methodology and guidance for calculating water use and conservation for water conservation plans and other reports required by the Water Code– Amends Water Code Sections 16.053, 16.403 and 16.404


107

Funding Voluntary Conservation EasementsSB 1044

• NEW LAW Allows counties to implement purchase of development rights programs that fund voluntary conservation easements. This will allow significantly more land to be conserved, while remaining in private hands and providing numerous “ecosystem services” including water protection for the benefit at all. Landowner gets a decrease in taxes.


108

Issuance of Obligation Bonds by Texas Water Development Board

SJR 4• Proposes a constitutional amendment providing for the issuance of additional general obligation bonds by the Texas Water Developmental Board– Effective: Subject to passage at election November 8, 2011

109

IT’S FUN• Noodling Recognized

HB 2189• Helicopter Hunting for Feral Hogs

– Pork ChoppersHB 716

• But no cockfighting – Not even raising the roosters– No manufacture or trade of cockfighting tools.HB 1043

• Criminal to cheat at fishing tournamentsHB 1806, Signed by Governor May 21, 2011, effective

NOW• Domino's “42” proclaimed the national game of Texas

HCR 84, Passed by Senate May 29, 2011

110

IT’S NOT FUN• Loser Pays (HB 274)

– Promoting prompt and efficient resolutions in civil actions

– Signed by Governor; effective Sep. 1, 2011

– Awarding costs and attorney’s fees to prevailing party

111

Loser Pays (Cont)HB 274

• The so called “Loser Pays” bill, this legislation changes certain procedures within the civil justice system to make the system more accessible and affordable by allowing courts to dismiss meritless lawsuits before hearing evidence on the claims. It also directs the Texas Supreme Court to develop rules to expedite some lawsuits through the justice system– Amends Civil Practice and Remedies Code, Sections 38.001, 38.002,

42.001, 42.002, 43.003, 42.004, 51.014, and Government Code Sections 22.004 and Section 22.2259(d); Adds Civil Practice and Remedies Code Chapters 29, 29A, and Chapter 148, and Sections 30.021 and 38.0015; Government Code Section 22.004(h)


112

IT’S NOT FUN– LOSER PAYSHB 274

• NEW LAW Promoting prompt and efficient resolutions in civil actions– allows courts to dismiss meritless lawsuits before hearing evidence on the claims

– awards attorneys’ fees to prevailing parties of those dismissed suites

– directs the Texas Supreme Court to develop rules to expedite some lawsuits through the justice system


113

IT’S PERSONAL• Parental controls for paddling

– Parents may submit a written form annually refusing corporal punishment for their child at school

– HB 359

• Disclosure of fracking fluid contents– HB 3328

• 75 mph in posted areas – no lower speed limit at night– 80 mph in specially designated counties– HB 1353

• You’ll need photo id to vote– SB 14, Signed by Governor May 27, 2011, effective Jan. 1, 2011

114

Storage of Firearms by an EmployeeSB 321

• Prohibits an employer from prohibiting an employee who lawfully possesses a firearm or ammunition from transporting or storing the firearm or ammunition in a locked, privately‐owned motor vehicle in a parking area the employer provides for employees, with certain exceptions– Amends Labor Code Chapter 52, Subchapter G– Amends Government Code Section 411.203


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Resources

• www.reptl.org

• www.txlandlaw.com

• www.capitol.state.tx.us

• www.texastribune.org

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Conclusion

• POA’s

• Servicemembers

• Assignment of Rents

• Eminent Domain

• Estate Code‐ 2014

• Water

• Sine Die

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