Issue 89.21
Effective Dates for Bills to become Law
Director of Regulatory Affairs
There are three possible options for the effective date of newly passed laws. Section 39, Article III, of The Texas Constitution states that laws shall not take effect or go into force until ninety days after the adjournment of the session. This typically is aligned with the first day of the State fiscal year, September 1st. However, this section of the constitution also allows for immediate implementation as of the Governor’s signature date when receiving a vote of two-thirds of all the members elected to each chamber and directed within the bill. The third effective date option is for a future date, as specified in the bill. This is typically seen when time is required to either allow agencies to write and approve implementing rules or other preparations are needed.
Both of the bills we are tracking below that have crossed the finish line of Governor approval have an immediate effective date.
Next Monday will be the last day of the regular session or Sine Die. We will delay next week’s memo from its normal Monday morning release to try and capture all the latest actions. We will return with one final wrap up memo following the Governor’s veto deadline of June 22nd to provide a final summary of what will become new Texas law.
Weekly Highlight
SB 17 Conference Committee – Previous memos have highlighted the content of this bill regarding the purchase of real property by certain aliens or foreign entities. SB17 was much improved when it was passed by the Senate as compared to its version two years ago. But then the House passed seven of the attempted sixteen Amendments. When the Senate refused to accept the changes a Conference Committee was formed. House Conferees include Rep. Little who authored three of the successful amendments. Some of these added provisions should they survive could add compliance complexity for the financial services industries.
To read the full text of any of these bills you can go to Texas Legislature Online. The designations you see for each bill represent HB – House Bill, SB – Senate Bill and HJR or SJR as House or Senate Joint Resolutions which relate to amendments to the Texas Constitution.
Bills on the Move
Signed by the Governor
SB 372 Campbell, Donna – Relating to the persons authorized or appointed to exercise the power of sale under the terms of a contract lien on real property. Signed May 19th Effective Immediately
SB 929 Johnson, Nathan – Relating to deadlines and time of inception for mechanic’s and materialman’s liens. May 21st Effective Immediately
SJR 2 Bettencourt, Paul – Proposing a constitutional amendment to increase the amount of the exemption of residence homesteads from ad valorem taxation by a school district. Set for November 4, 2025, General Election as Constitutional Amendment
Sent to the Governor for Signature
HB 21 Gates, Gary – Relating to housing finance corporations. Passed the House May 10th (Yes-113/No-15) Passed the Senate May 14th (Yes-30/No-1) Sent to the Governor May 16th
HB 851 Schofield, Mike – Relating to the determination and reporting of the number of residence homesteads of certain property owners for which the owner is receiving certain ad valorem tax benefits. Passed the House May 7th (Yes-145/No-0) Passed the Senate May 25th (Yes-31/No-0)
HB 2067 Paul, Dennis – Relating to declination, cancellation, or nonrenewal of insurance policies. Passed the House April 24th (Yes-145/No-1) Passed the Senate May 25th (Yes-31/No-0)
HB 2468 Harris, Cody – Relating to the right of a purchaser to terminate a contract of purchase and sale of real property for failure to provide notice that the property is located in a public improvement district. Passed the House April 23rd (Yes-142/No-4) Passed the Senate May 22nd (Yes-31/No-0)
HB 3250 Darby, Drew – Relating to the regulation of real estate appraisers and appraisal management companies. Passed the House May 2nd (Yes-104/No-28) Passed the Senate May 22nd (Yes-30/No-1)
SB 23 Bettencourt, Paul – Relating to an increase in the amount of the exemption from ad valorem taxation by a school district of the appraised value of the residence homestead of a person who is elderly or disabled and the protection of school districts against certain losses in local revenue. Passed the Senate April 23rd (Yes-30/No-1) Passed the House May 21st (Yes-141/No-0)
SB 647 West, Royce – Relating to the filing or recording of documents or instruments conveying or purporting to convey an interest in real or personal property. Passed the Senate April 29th (Yes-29/No-1) Passed the House May 21st (Yes-140/No-1) Senate concurred with House amendment
SB 648 West, Royce – Relating to recording requirements for certain instruments concerning real property. Passed the Senate April 28th (Yes-26/No-4) Passed the House May 21st (Yes-140/No-1) Senate concurred with House amendment
SB 693 West, Royce – Relating to creating a criminal offense for the use of a notary seal or counterfeit seal on a fraudulent document or instrument. Passed the Senate April 9th (Yes-29/No-1) Passed the House May 13th (Yes-105/No-29) Sent to the Governor May 21st
SB 1379 Flores, Pete – Relating to increasing the criminal penalties for forgery. Passed the Senate March 26th (Yes-29/No-2) Passed the House May 23rd (Yes-98/No-43)
SB 1547 Zaffirini, Judith – Relating to fees charged by county clerks for certain property records. Passed the Senate March 26th (Yes-31/No-0) Passed the House May 23rd (Yes-134/No-0)
SB 1734 West, Royce – Relating to status of certain documents or instruments purporting to convey title to or an interest in real property. Passed the Senate April 24th (Yes-31/No-0) Passed the House May 15th (Yes-121/No-18) Sent to the Governor May 21st
Headed to Conference Committee or Confirmation Vote
SB 4 Bettencourt, Paul – Relating to an increase in the amount of the exemption of residence homesteads from ad valorem taxation by a school district and the protection of school districts against certain losses in local revenue. (Companion SJR2) Passed the Senate February 13th (Yes-30/No-0) Passed the House May 20th (Yes-145/No-0) Senate to vote on House amendment
SB 17 Kolkhorst, Lois – Relating to the purchase of or acquisition of title to real property by certain aliens or foreign entities. Passed the Senate March 19th (Yes-24/No-7) Passed the House May 9th with Seven Amendments (Yes-86/No-59). Conference Committee named
SB 38 Bettencourt, Paul – Relating to the eviction from real property of certain persons not entitled to enter, occupy, or remain in possession of the premises. Passed the Senate April 10th (Yes-21/No-8) Passed the House May 23rd (Yes-85/No-49) Senate to vote on House amendment
SB 1333 Hughes, Bryan – Relating to the unauthorized entry, occupancy, sale, rental, lease, advertisement for sale, rental, or lease, or conveyance of real property. (Companions HB414, HB1076, HB2454, HB3003) Passed the Senate April 15th (Yes-27/No-4) Passed the House May 23rd (Yes-113/No-22) Senate to vote on House amendment
Pending Vote in Second Chamber
HB 4063 Ordaz, Claudia – Relating to the filing and release of record of a unilateral memorandum of contract concerning residential property. Set on Senate Intent Calendar May 26th
HB 4350 Capriglione, Giovanni – Relating to the omission or redaction of certain personal information from certain real property records. Recommended for Local Uncontested Calendar May 25th
SB 673 Hughes, Bryan – Relating to regulation of accessory dwelling units by political subdivisions. Set on House Calendars May 26th
SB 2221 Parker, Tan – Relating to the filing of a fraudulent financing statement in relation to certain secured transactions. Placed on House Calendar May 26th
SB 2610 Blanco, Cesar – Relating to civil liability of business entities in connection with a breach of system security. Placed on House Calendar May 26th
Sent to the second Chamber
HB 1043 Bhojani, Salman – Relating to a study by the General Land Office on the establishment and implementation by the General Land Office of a distributed ledger-based title registry pilot program. Heard May 23rd left pending Senate Business and Commerce
HB 3223 Leach, Jeff – Relating to statutes of limitation and repose for certain claims involving the construction or repair of an improvement to real property. Referred to Senate State Affairs May 9th
HB 4063 Ordaz, Claudia – Relating to the filing and release of record of a unilateral memorandum of contract concerning residential property. Recommended for Local Calendar May 22nd
HB 4505 Bell, Cecil – Relating to the establishment of the workforce housing capital investment fund program to fund the development of workforce housing in this state. (Companion SB208) Received in the Senate May 19th
SB 1643 Schwertner, Charles – Relating to prior approval of certain property and casualty insurance rate increases or decreases. Hearing set for May 19th House Insurance
SB 2117 Parker, Tan – Relating to the establishment of the Texas Committee on Foreign Investment to review certain transactions involving certain foreign entities. Voted out of House State Affairs as amended May 16th
SB 2611 West, Royce – Relating to the status of certain documents or instruments concerning real or personal property. Reported favorably May 23rd from House Criminal Jurisprudence
If you have questions about these specific bills or the Texas legislative process in general, please reach out to Doug Foster or one of our firm’s attorneys or representatives at: https://www.mortgagelaw.com/our-team/