Texas 2023 - 88th Regular

Texas House Bill HB2816 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	H.B. No. 2816
2	2
3	3
4	4	AN ACT
5	5	relating to notice provided to purchasers of property and
6	6	information filed with the county clerk by certain special
7	7	districts.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 49.452, Water Code, is amended by
10	10	amending Subsection (a) and adding Subsections (a-1) and (a-2) to
11	11	read as follows:
12	12	(a) In this section, "district" means a district:
13	13	(1) governed by Chapter 375, Local Government Code; or
14	14	(2) [(1) Any person who proposes to sell or convey
15	15	real property located in a district] created under this title or by
16	16	a special Act of the legislature that:
17	17	(A) is providing or proposing to provide, as the
18	18	district's principal function, water, sanitary sewer, drainage,
19	19	and flood control or protection facilities or services, or any of
20	20	these facilities or services that have been financed or are
21	21	proposed to be financed with bonds of the district payable in whole
22	22	or part from taxes of the district, or by imposition of a standby
23	23	fee, if any, to household or commercial users, other than
24	24	agricultural, irrigation, or industrial users;[,] and
25	25	(B) [which district] includes less than all the
26	26	territory in at least one county and which, if located within the
27	27	corporate area of a city, includes less than 75 percent of the
28	28	incorporated area of the city or which is located outside the
29	29	corporate area of a city in whole or in substantial part[, must
30	30	first give to the purchaser the written notice provided in this
31	31	section].
32	32	(a-1) A person who proposes to sell or convey real property
33	33	located in a district must give to the purchaser the written notice
34	34	as provided by this section and Section 49.4521.
35	35	(a-2) [(2)] The provisions of this section are [shall] not
36	36	[be] applicable to:
37	37	(1) [(A)] transfers of title under any type of lien
38	38	foreclosure;
39	39	(2) [(B)] transfers of title by deed in cancellation
40	40	of indebtedness secured by a lien upon the property conveyed;
41	41	(3) [(C)] transfers of title by reason of a will or
42	42	probate proceedings; [or]
43	43	(4) [(D)] transfers of title to a governmental entity;
44	44	or
45	45	(5) transfers of title for the purpose of qualifying a
46	46	director.
47	47	SECTION 2. Subchapter M, Chapter 49, Water Code, is amended
48	48	by adding Section 49.4521 to read as follows:
49	49	Sec. 49.4521. PRESCRIBED NOTICE TO PURCHASERS. (a) A
50	50	notice to a purchaser provided under Section 49.452 must include:
51	51	(1) a title caption in at least a 24-point, bold font
52	52	stating "NOTICE TO PURCHASER OF SPECIAL TAXING OR ASSESSMENT
53	53	DISTRICT"; and
54	54	(2) the following statements, as applicable to the
55	55	district:
56	56	(A) "The real property that you are about to
57	57	purchase is located in the (insert name of district) and may be
58	58	subject to district taxes or assessments.";
59	59	(B) "The district may, subject to voter approval,
60	60	impose taxes and issue bonds. The district may impose an unlimited
61	61	rate of tax in payment of such bonds.";
62	62	(C) one of the following, as applicable:
63	63	(i) "The current rate of the district
64	64	property tax is (insert current property tax rate) on each $100 of
65	65	assessed valuation."; or
66	66	(ii) "The district has not yet imposed
67	67	taxes. The projected rate of the district property tax is (insert
68	68	projected property tax rate) on each $100 of assessed valuation.";
69	69	(D) "The district may impose assessments and
70	70	issue bonds and impose an assessment in payment of such bonds.";
71	71	(E) one of the following, as applicable:
72	72	(i) "The rate of the district assessment is
73	73	(insert current assessment amount) on each $100 of assessed
74	74	valuation.";
75	75	(ii) "The amount of the district assessment
76	76	on the real property that you are about to purchase is (insert
77	77	current assessment amount)."; or
78	78	(iii) "The district has not yet imposed an
79	79	assessment, but the projected (insert "rate" or "amount", as
80	80	applicable) of the assessment is (insert projected assessment rate
81	81	or amount, as applicable).";
82	82	(F) "The total amounts of bonds payable wholly or
83	83	partly from (insert "property taxes" or "assessments", as
84	84	applicable) (insert ", excluding refunding bonds that are
85	85	separately approved by the voters" or ", excluding any bonds or any
86	86	portions of bonds issued that are payable solely from revenues
87	87	received or expected to be received under a contract with a
88	88	governmental entity", as applicable), approved by the voters are:
89	89	(i) $(insert amount) for water, sewer, and
90	90	drainage facilities;
91	91	(ii) $(insert amount) for road facilities;
92	92	(iii) $(insert amount) for parks and
93	93	recreational facilities; and
94	94	(iv) $(insert amount) for (description of
95	95	additional facilities, as applicable).";
96	96	(G) "The aggregate initial principal amounts of
97	97	all such bonds issued are:
98	98	(i) $(insert amount) for water, sewer, and
99	99	drainage facilities;
100	100	(ii) $(insert amount) for road facilities;
101	101	(iii) $(insert amount) for parks and
102	102	recreational facilities; and
103	103	(iv) $(insert amount) for (description of
104	104	additional facilities, as applicable).";
105	105	(H) "The district sought and obtained approval of
106	106	the Texas Commission on Environmental Quality to adopt and impose a
107	107	standby fee. The amount of the standby fee is $(insert amount of
108	108	standby fee). An unpaid standby fee is a personal obligation of the
109	109	person that owned the property at the time of imposition and is
110	110	secured by a lien on the property. Any person may request a
111	111	certificate from the district stating the amount, if any, of unpaid
112	112	standby fees on a tract of property in the district.";
113	113	(I) if applicable, one of the following:
114	114	(i) "The district is located wholly or
115	115	partly in the extraterritorial jurisdiction of the City of (insert
116	116	name of the municipality). Texas law governs the ability of a
117	117	municipality to annex property in the municipality's
118	118	extraterritorial jurisdiction and whether a district that is
119	119	annexed by the municipality is dissolved."; or
120	120	(ii) "The district is located wholly or
121	121	partly within the corporate boundaries of the City of (insert name
122	122	of the municipality). The municipality and the district overlap,
123	123	but may not provide duplicate services or improvements. Property
124	124	located in the municipality and the district is subject to taxation
125	125	by the municipality and the district.";
126	126	(J) "The district has entered into a strategic
127	127	partnership agreement with the City of (insert name of the
128	128	municipality). This agreement may address the timeframe, process,
129	129	and procedures for the municipal annexation of the area of the
130	130	district located in the municipality's extraterritorial
131	131	jurisdiction.";
132	132	(K) "The purpose of the district is to provide
133	133	(insert water, sewer, drainage, flood control, firefighting, road,
134	134	parks and recreational, or other type of facilities or services, as
135	135	applicable) facilities and services. The cost of district
136	136	facilities is not included in the purchase price of your
137	137	property.";
138	138	(L) "PURCHASER IS ADVISED THAT THE INFORMATION
139	139	SHOWN ON THIS FORM IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME.
140	140	THE DISTRICT ANNUALLY ESTABLISHES TAX RATES. PURCHASER IS ADVISED
141	141	TO CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR
142	142	PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM."; and
143	143	(M) "The undersigned purchaser hereby
144	144	acknowledges receipt of the foregoing notice at or before the
145	145	execution of a binding contract for the purchase of the real
146	146	property or at closing of purchase of the real property.".
147	147	(b) The district shall omit or edit for accuracy statements
148	148	not applicable to the district, as determined by the district.
149	149	(c) The notice must be dated and executed by the seller and
150	150	the purchaser.
151	151	(d) If the law is amended and causes inaccuracies in the
152	152	content of the notice, the district shall revise the content of the
153	153	notice to accurately reflect current law.
154	154	SECTION 3. Section 49.453, Water Code, is amended by adding
155	155	Subsection (e) to read as follows:
156	156	(e) A district required to maintain an Internet website or
157	157	have access to a generally accessible Internet website under
158	158	Section 26.18, Tax Code, shall post or create a process for posting
159	159	the district's notice to purchasers under Section 49.4521 on the
160	160	applicable Internet website.
161	161	SECTION 4. Section 49.455(c), Water Code, is amended to
162	162	read as follows:
163	163	(c) The information form [and map or plat] required by this
164	164	section shall be signed by a majority of the members of the board
165	165	and by each such officer affirmed and acknowledged before it is
166	166	filed with the county clerk, and each amendment made to an
167	167	information form [or map] shall also be signed by the members of the
168	168	board and by each such officer affirmed and acknowledged before it
169	169	is filed with the county clerk.
170	170	SECTION 5. Section 3919.205(d), Special District Local Laws
171	171	Code, is amended to read as follows:
172	172	(d) The district shall generate and implement a program to
173	173	provide notice modeled on the notice described by Section 49.4521
174	174	[49.452(c)], Water Code, to a prospective purchaser of property in
175	175	the district of the assessments that have been approved and are
176	176	imposed by the district.
177	177	SECTION 6. The following provisions of the Water Code are
178	178	repealed:
179	179	(1) Sections 49.452(b), (c), (d), and (e); and
180	180	(2) Sections 49.455(f) and (h).
181	181	SECTION 7. (a) Section 49.452, Water Code, as amended by
182	182	this Act, and Section 49.4521, Water Code, as added by this Act,
183	183	apply only to notice given to a purchaser of real property within a
184	184	water district on or after the effective date of this Act. Notice
185	185	given to a purchaser before the effective date is governed by the
186	186	law in effect at the time the notice was given, and that law is
187	187	continued in effect for that purpose.
188	188	(b) Section 49.455, Water Code, as amended by this Act,
189	189	applies only to an information form filed on or after the effective
190	190	date of this Act. An information form filed before the effective
191	191	date of this Act is governed by the law in effect on the date the
192	192	form was filed, and that law is continued in effect for that
193	193	purpose.
194	194	SECTION 8. This Act takes effect September 1, 2023.
195	195	______________________________ ______________________________
196	196	President of the Senate Speaker of the House
197	197	I certify that H.B. No. 2816 was passed by the House on May
198	198	12, 2023, by the following vote: Yeas 126, Nays 14, 2 present, not
199	199	voting.
200	200	______________________________
201	201	Chief Clerk of the House
202	202	I certify that H.B. No. 2816 was passed by the Senate on May
203	203	24, 2023, by the following vote: Yeas 31, Nays 0.
204	204	______________________________
205	205	Secretary of the Senate
206	206	APPROVED: _____________________
207	207	Date
208	208	_____________________
209	209	Governor