Texas 2023 - 88th Regular

Texas House Bill HB3844 Compare Versions

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1	1	88R4149 DRS-F
2	2	By: Lozano H.B. No. 3844
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to certain procedural requirements for public improvement
8	8	districts and transfers of property located in public improvement
9	9	districts.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 372.003, Local Government Code, is
12	12	amended by amending Subsections (b) and (d) and adding Subsection
13	13	(b-2) to read as follows:
14	14	(b) A public improvement project may include:
15	15	(1) landscaping;
16	16	(2) erection of fountains, distinctive lighting, and
17	17	signs;
18	18	(3) acquiring, constructing, improving, widening,
19	19	narrowing, closing, or rerouting of sidewalks or of streets, any
20	20	other roadways, or their rights-of-way;
21	21	(4) construction or improvement of pedestrian malls;
22	22	(5) acquisition and installation of pieces of art;
23	23	(6) acquisition, construction, or improvement of
24	24	libraries;
25	25	(7) acquisition, construction, or improvement of
26	26	off-street parking facilities;
27	27	(8) acquisition, construction, improvement, or
28	28	rerouting of mass transportation facilities;
29	29	(9) acquisition, construction, or improvement of
30	30	publicly owned water, wastewater, natural gas, electric, canal, or
31	31	drainage facilities or improvements;
32	32	(10) the establishment or improvement of parks;
33	33	(11) projects similar to those listed in Subdivisions
34	34	(1)-(10);
35	35	(12) acquisition, by purchase or otherwise, of real
36	36	property in connection with an authorized improvement;
37	37	(13) special supplemental services for improvement
38	38	and promotion of the district, and for repair and maintenance of
39	39	those special supplemental services, including services relating
40	40	to advertising, promotion, health and sanitation, water and
41	41	wastewater, roadways and sidewalks, public safety, security,
42	42	business recruitment, development, recreation, and cultural
43	43	enhancement;
44	44	(14) payment of expenses incurred in the
45	45	establishment, administration, and operation of the district,
46	46	including payment of costs associated with the issuance of bonds
47	47	under this chapter; and
48	48	(15) the development, rehabilitation, or expansion of
49	49	affordable housing.
50	50	(b-2) A public improvement project is not subject to the
51	51	bidding or procurement requirements of Chapter 2252 or 2269,
52	52	Government Code, if at least one-third of the cost of the
53	53	improvement is or will be paid or secured by:
54	54	(1) a special assessment levied on property located
55	55	inside the public improvement district;
56	56	(2) a developer of land located inside the public
57	57	improvement district; or
58	58	(3) a combination of special assessments described by
59	59	Subdivision (1) and developer commitments described by Subdivision
60	60	(2).
61	61	(d) A county may establish a public improvement district
62	62	unless within 30 days of a county's action to approve such a
63	63	district the governing body of[,] a home rule municipality by
64	64	resolution:
65	65	(1) objects to the [its] establishment of the public
66	66	improvement district within the municipality's corporate limits or
67	67	extraterritorial jurisdiction; and
68	68	(2) gives notice to the county of the municipality's
69	69	objection to the establishment of the public improvement district
70	70	and the reasons for the objection.
71	71	SECTION 2. Section 372.005, Local Government Code, is
72	72	amended by adding Subsections (a-1) and (d) to read as follows:
73	73	(a-1) The boundaries of a proposed public improvement
74	74	district described in a petition under this section may include
75	75	parcels of land that would be contiguous to each other but for
76	76	separation caused by a natural geographic feature or an existing
77	77	roadway, easement, or right-of-way that renders the parcels
78	78	noncontiguous.
79	79	(d) Notwithstanding any other provision of this chapter, a
80	80	statement of the estimated cost of an improvement in a petition
81	81	under this section does not limit:
82	82	(1) the actual cost of an improvement payable by the
83	83	municipality or county from an assessment levied against property
84	84	in an improvement district; or
85	85	(2) the amount of an assessment that may be levied
86	86	against property in an improvement district by the governing body
87	87	of a municipality or county on a determination of the cost of an
88	88	improvement and the amount of an assessment in a service plan and
89	89	assessment plan.
90	90	SECTION 3. Section 372.009, Local Government Code, is
91	91	amended by amending Subsection (d) and adding Subsections (e), (f),
92	92	and (g) to read as follows:
93	93	(d) Except as provided by Subsection (e), written [Written]
94	94	notice containing the information required by Subsection (c) must
95	95	be mailed before the 15th day before the date of the hearing. The
96	96	notice must be addressed to "Property Owner" and mailed to the
97	97	current address of the owner, as reflected on tax rolls, of property
98	98	subject to assessment under the proposed public improvement
99	99	district.
100	100	(e) A property owner may waive the right to notice under
101	101	this section if the property owner provides to the municipality or
102	102	county a written waiver of notice signed by the property owner.
103	103	(f) The notice required by this section may describe the
104	104	boundaries of the proposed assessment district by reference to
105	105	existing streets and roadways and state that a metes and bounds
106	106	description or legal description with tax parcel identification
107	107	numbers of the parcels of property located within the boundaries is
108	108	on file and available for inspection with the municipality or
109	109	county.
110	110	(g) Notwithstanding any other provision of this chapter, a
111	111	statement of the estimated cost of an improvement in a notice given
112	112	by a municipality or county under this section does not limit the
113	113	authority of the governing body of a municipality or county to levy
114	114	an assessment that is:
115	115	(1) based on the actual cost of an improvement as
116	116	determined by the governing body; and
117	117	(2) less than or greater than the amount of the
118	118	estimated cost stated in the notice.
119	119	SECTION 4. Sections 372.010(b) and (c), Local Government
120	120	Code, are amended to read as follows:
121	121	(b) Not later than the 15th business [seventh] day after the
122	122	date the governing body of a municipality or county adopts a
123	123	resolution under Subsection (a), the municipality or county shall
124	124	record [file] a copy of the resolution in the real property records
125	125	[with the county clerk] of each county in which all or part of the
126	126	improvement district is located. Failure to timely record the
127	127	resolution under this section does not invalidate the establishment
128	128	of the public improvement district.
129	129	(c) If not later than [Actual construction of an improvement
130	130	may not begin until after] the 20th day after the date the governing
131	131	body of the municipality or county adopts a resolution under
132	132	Subsection (a), the municipal or county secretary or other officer
133	133	performing the duties of the municipal or county secretary receives
134	134	[authorization takes effect and may not begin if during that 20-day
135	135	period] written protests signed by at least two-thirds of the
136	136	owners of record of property within the improvement district or by
137	137	the owners of record of property comprising at least two-thirds of
138	138	the total area of the district, the governing body of the
139	139	municipality or county may convene to determine the sufficiency of
140	140	the protest and whether to dissolve the district under Section
141	141	372.011 [are filed with the municipal or county secretary or other
142	142	officer performing the duties of the municipal or county
143	143	secretary]. A person whose name appears on a protest may withdraw
144	144	the name from the protest at any time before the governing body of
145	145	the municipality or county convenes to determine the sufficiency of
146	146	the protest.
147	147	SECTION 5. Section 372.012, Local Government Code, is
148	148	amended to read as follows:
149	149	Sec. 372.012. AREA OF DISTRICT. (a) The area of a public
150	150	improvement district to be assessed according to the findings of
151	151	the governing body of the municipality or county may be less than
152	152	the area described in the proposed boundaries stated by the notice
153	153	under Section 372.009. The area to be assessed may not include
154	154	property not described by the notice as being within the proposed
155	155	boundaries of the district unless a hearing is held to include the
156	156	property and notice for the hearing is given in the same manner as
157	157	notice under Section 372.009.
158	158	(b) The area of a public improvement district may consist of
159	159	noncontiguous tracts of land, including parcels of land that would
160	160	be contiguous to each other but for separation caused by a natural
161	161	geographic feature or an existing roadway, easement, or
162	162	right-of-way, provided the public improvement projects and
163	163	services to be implemented and the costs of the projects and
164	164	services may be apportioned under Section 372.015.
165	165	(c) Property included within one public improvement
166	166	district may be included, wholly or partly, within the boundaries
167	167	of another public improvement district. Nothing in this chapter may
168	168	be construed to prohibit the establishment of more than one public
169	169	improvement district covering the same geographic area.
170	170	SECTION 6. Section 372.013, Local Government Code, is
171	171	amended by amending Subsections (a), (c), (d), and (e) and adding
172	172	Subsection (f) to read as follows:
173	173	(a) The advisory body shall prepare an ongoing service plan
174	174	and present the plan to the governing body of the municipality or
175	175	county for review and approval. The service plan may cover the
176	176	entire improvement district or be limited to a specific area or
177	177	areas within the district. The governing body may approve the plan
178	178	only by ordinance or order. The governing body may assign
179	179	responsibility for the plan to another entity in the absence of an
180	180	advisory body.
181	181	(c) Not later than the seventh day after the date the
182	182	governing body of a municipality or county approves a service plan,
183	183	the municipality or county shall record [file] a copy of the plan in
184	184	the real property records [with the county clerk] of each county in
185	185	which all or part of the public improvement district is located.
186	186	Failure to timely record the service plan does not invalidate the
187	187	approval of the plan or levy of assessments.
188	188	(d) The governing body of the municipality or county shall
189	189	review and update the service plan annually for the purpose of
190	190	determining the annual budget for improvements and updating the
191	191	estimated cost of improvements. Except for the service plan for a
192	192	district described by Section 372.0035, the governing body may
193	193	amend or update the plan only by ordinance or order.
194	194	(e) Not later than the 15th business [seventh] day after the
195	195	date the governing body of a municipality or county amends or
196	196	updates the service plan, including the notice form required by
197	197	Section 5.014, Property Code, the municipality or county shall
198	198	record notice [file a copy] of the amended or updated plan in the
199	199	real property records [with the county clerk] of each county in
200	200	which all or part of the public improvement district is located. The
201	201	notice must explain how to obtain a complete copy of the amended or
202	202	updated service plan from the municipality or county. Failure to
203	203	timely record notice of the amended or updated service plan does not
204	204	invalidate the approval of the amended or updated plan.
205	205	(f) If the governing body of a municipality or county amends
206	206	or updates the service plan in connection with the levy of an
207	207	assessment, the municipality or county shall, not later than the
208	208	15th business day after the date the governing body of the
209	209	municipality or county amends or updates the service plan for the
210	210	levy of the assessment, record a copy of the amended or updated plan
211	211	in the real property records of each county in which all or part of
212	212	the public improvement district is located. Failure to timely
213	213	record the amended or updated service plan does not invalidate the
214	214	approval of the amended or updated plan.
215	215	SECTION 7. Sections 372.014(a) and (b), Local Government
216	216	Code, are amended to read as follows:
217	217	(a) An assessment plan must be included in the annual
218	218	service plan. The assessment plan may cover the entire improvement
219	219	district or be limited to a specific area or areas within the
220	220	district.
221	221	(b) The municipality or county is responsible for payment of
222	222	assessments against exempt municipal or county property in the
223	223	district if assessments are levied on exempt municipal or county
224	224	property in the district. The municipality or county may designate
225	225	an alternative means of financing the share of costs allocable to
226	226	municipal or county property other than by assessment in an
227	227	assessment plan. Payment of assessments by other exempt
228	228	jurisdictions must be established by contract. [An assessment
229	229	paid by the municipality or county under this subsection is
230	230	considered to have been paid by special assessment for the purposes
231	231	of Subsection (a).]
232	232	SECTION 8. Section 372.015, Local Government Code, is
233	233	amended by adding Subsections (e) and (f) to read as follows:
234	234	(e) If an improvement confers a special benefit on the
235	235	entire improvement district as a whole, the governing body of a
236	236	municipality or county may:
237	237	(1) assess the cost of the improvement against
238	238	property in the entire district in a single assessment; or
239	239	(2) apportion the cost of the improvement to be
240	240	assessed against property located in a specific area within the
241	241	district with separate assessments.
242	242	(f) The governing body of a municipality or county shall
243	243	include apportionment of the cost of an improvement under
244	244	Subsection (a) in an updated assessment plan approved under Section
245	245	372.013(d).
246	246	SECTION 9. Section 372.016, Local Government Code, is
247	247	amended by amending Subsection (c) and adding Subsections (d) and
248	248	(e) to read as follows:
249	249	(c) Except as provided by Subsection (d), when [When] the
250	250	assessment roll is filed under Subsection (b), the municipal
251	251	secretary or other officer shall mail to the owners of property
252	252	liable for assessment a notice of the hearing. The notice must
253	253	contain the information required by Subsection (b) and the
254	254	secretary or other officer shall mail the notice to the last known
255	255	address of the property owner. The failure of a property owner to
256	256	receive notice does not invalidate the proceeding.
257	257	(d) A property owner may waive the right to notice under
258	258	this section if the property owner provides to the municipality or
259	259	county a written waiver of notice signed by the property owner.
260	260	(e) If a proposed assessment roll to be considered by the
261	261	governing body of a municipality or county at a public hearing
262	262	includes an updated assessment against property owned by a property
263	263	owner who has waived notice of the hearing under this section, the
264	264	governing body of the municipality or county may include for public
265	265	inspection the updated proposed assessment roll in the posted
266	266	agenda for the hearing.
267	267	SECTION 10. Section 372.017, Local Government Code, is
268	268	amended by amending Subsections (a) and (b) and adding Subsection
269	269	(c) to read as follows:
270	270	(a) At or on the adjournment of the hearing referred to by
271	271	Section 372.016 on proposed assessments, the governing body of the
272	272	municipality or county must hear and pass on any objection to a
273	273	proposed assessment. [The governing body may amend a proposed
274	274	assessment on any parcel.]
275	275	(b) After all objections have been heard and the governing
276	276	body has passed on the objections, the governing body by ordinance
277	277	or order shall levy the assessment as a special assessment on the
278	278	property. The governing body by ordinance or order shall specify
279	279	the method of payment of the assessment. The governing body may
280	280	defer the collection of an assessment until a date specified by the
281	281	governing body [specifies] in the ordinance or order that is not
282	282	later than the second anniversary of the date the governing body
283	283	approves the ordinance or order levying the assessment. The
284	284	governing body may provide that assessments be paid in periodic
285	285	installments, at an interest rate and for a period approved by the
286	286	governing body. The provision that assessments be paid in periodic
287	287	installments may, but is not required to, result in level annual
288	288	installment payments. The installments must be in amounts
289	289	necessary to meet annual costs for improvements and must continue
290	290	for:
291	291	(1) the period necessary to retire the indebtedness on
292	292	the improvements; or
293	293	(2) the period approved by the governing body for the
294	294	payment of the installments.
295	295	(c) Notwithstanding the approval by the governing body of a
296	296	municipality or county of a deferred date for collection of an
297	297	assessment under Subsection (b), the assessment lien is effective
298	298	from the date of the ordinance or order levying the assessment until
299	299	the assessment is paid or otherwise released.
300	300	SECTION 11. Section 372.019, Local Government Code, is
301	301	amended to read as follows:
302	302	Sec. 372.019. SUPPLEMENTAL OR ADDITIONAL ASSESSMENTS.
303	303	After notice and a hearing, the governing body of the municipality
304	304	or county may make supplemental or additional assessments for
305	305	additional authorized improvements, to pay increased costs, or to
306	306	correct omissions or mistakes in the assessment relating to the
307	307	total cost of the improvement. Notice must be given and the
308	308	hearing held under this section in the same manner as required by
309	309	Sections 372.009, 372.016, and 372.017.
310	310	SECTION 12. Section 372.020, Local Government Code, is
311	311	amended to read as follows:
312	312	Sec. 372.020. REASSESSMENT. The governing body of the
313	313	municipality or county may release an assessment and make a
314	314	reassessment or new assessment of a parcel of land if:
315	315	(1) a court of competent jurisdiction sets aside an
316	316	assessment against the parcel;
317	317	(2) the governing body determines that the original
318	318	assessment is or will be excessive; or
319	319	(3) on the written advice of counsel, the governing
320	320	body determines that the original assessment is invalid.
321	321	SECTION 13. Section 372.021(b), Local Government Code, is
322	322	amended to read as follows:
323	323	(b) The municipality or county annually may levy an
324	324	assessment [a tax] to support the fund.
325	325	SECTION 14. Section 372.023, Local Government Code, is
326	326	amended by adding Subsections (a-2), (d-2), (i), and (j) and
327	327	amending Subsections (d-1) and (h) to read as follows:
328	328	(a-2) If the governing body of a municipality or county has
329	329	authorized an entity to receive a benefit under Subsection
330	330	(a)(3)(B), the municipality or county may pay the costs of
331	331	improvements provided to or for the benefit of the entity by the
332	332	methods provided in this chapter without executing an interlocal
333	333	agreement under Chapter 791, Government Code.
334	334	(d-1) An installment sales contract, reimbursement
335	335	agreement, temporary note, or time warrant described by Subsection
336	336	(d):
337	337	(1) may be secured by and paid from a special
338	338	assessment or the proceeds of special assessment revenue bonds; and
339	339	(2) may be assigned by the payee without the consent of
340	340	the municipality or county.
341	341	(d-2) An assignment by the payee of an installment sales
342	342	contract, reimbursement agreement, temporary note, or time warrant
343	343	in part under this section must assign in whole the amounts levied
344	344	by an assessment.
345	345	(h) The costs of any improvement include interest payable on
346	346	a temporary note, reimbursement agreement, or time warrant and all
347	347	costs incurred in connection with the issuance of bonds under
348	348	Section 372.024 and may be included in the assessments against the
349	349	property in the improvement district as provided by this
350	350	subchapter.
351	351	(i) A municipality or county that enters into a
352	352	reimbursement agreement under this section may levy an assessment
353	353	for the projected cost to issue bonds under this chapter, including
354	354	reserve funds and capitalized interest, to finance:
355	355	(1) a construction or reimbursement obligation of the
356	356	issuer; or
357	357	(2) improvements and costs contemplated by the
358	358	reimbursement agreement that are included in the annual service
359	359	plan and assessment plan approved by the governing body of the
360	360	municipality or county at the time the governing body levies an
361	361	assessment in connection with the reimbursement agreement.
362	362	(j) If the governing body of a municipality or county levies
363	363	an assessment for the projected cost to issue bonds under
364	364	Subsection (i), and the bonds are not issued before the 180th day
365	365	after the date the improvements for which the assessment was levied
366	366	are completed and accepted, the governing body shall update the
367	367	assessment plan to reduce the assessment relating to the projected
368	368	cost to issue the bonds.
369	369	SECTION 15. Section 372.027(a), Local Government Code, is
370	370	amended to read as follows:
371	371	(a) Revenue bonds issued under this subchapter may be
372	372	refunded or refinanced by the issuance of refunding bonds, under
373	373	terms or conditions set forth in ordinances or orders of the
374	374	municipality or county issuing the bonds, and as otherwise
375	375	authorized by law. The provisions of this subchapter applying
376	376	generally to revenue bonds, including provisions related to the
377	377	issuance of those bonds, apply to refunding bonds authorized by
378	378	this section. The refunding bonds may be sold and delivered in
379	379	amounts necessary for the principal, interest, and any redemption
380	380	premium of the bonds to be refunded, on the date of the maturity of
381	381	the bond or any redemption date of the bond.
382	382	SECTION 16. Section 372.041(a), Local Government Code, is
383	383	amended to read as follows:
384	384	(a) A home-rule municipality may create improvement
385	385	districts for the purposes of:
386	386	(1) levying, straightening, widening, enclosing, or
387	387	otherwise improving a river, canal, creek, bayou, stream, other
388	388	body of water, street, or alley;
389	389	(2) draining, grading, filling, and otherwise
390	390	protecting and improving the territory within the municipality's
391	391	limits;
392	392	(3) issuing bonds to finance improvements listed in
393	393	this subsection; and
394	394	(4) financing an improvement described in Subchapter
395	395	A.
396	396	SECTION 17. Section 372.152, Local Government Code, is
397	397	transferred to Subchapter A, Chapter 372, Local Government Code,
398	398	redesignated as Section 372.0241, Local Government Code, and
399	399	amended to read as follows:
400	400	Sec. 372.0241 [372.152]. ISSUANCE OF BONDS TO REIMBURSE
401	401	ACQUIRED PUBLIC IMPROVEMENTS. (a) The governing body of a
402	402	municipality or county may issue and sell general obligation bonds
403	403	or revenue bonds to reimburse a developer for the cost of a public
404	404	improvement if:
405	405	(1) the public improvement is located in a public
406	406	improvement district created on or after January 1, 2005;
407	407	(2) the public improvement has been dedicated to and
408	408	accepted by the municipality or county; and
409	409	(3) before the public improvement was dedicated to and
410	410	accepted by the municipality or county, the governing body of the
411	411	municipality or county entered into an agreement with the developer
412	412	to pay for the public improvement.
413	413	(b) General obligation bonds or revenue bonds issued under
414	414	this section [subchapter] must comply with the provisions relating
415	415	to general obligation bonds or revenue bonds issued under this
416	416	subchapter [Subchapter A].
417	417	(c) The governing body of a municipality or county and a
418	418	landowner or developer may enter into an agreement under Subsection
419	419	(a)(3) only if the agreement allows for the municipality or county
420	420	to pay for the public improvement only through assessments
421	421	collected by the intended improvement district.
422	422	SECTION 18. Sections 5.014(a-1) and (a-2), Property Code,
423	423	are amended to read as follows:
424	424	(a-1) Except for the notice prescribed by Subsection (a-2),
425	425	the notice required by Subsection (a) shall be executed by the
426	426	seller and must, except as provided by Subsection (b), read as
427	427	follows:
428	428	NOTICE OF OBLIGATION TO PAY IMPROVEMENT DISTRICT ASSESSMENT TO
429	429	(insert name of municipality or county levying assessment), TEXAS
430	430	CONCERNING THE FOLLOWING PROPERTY
431	431	(insert property address)
432	432	As the purchaser of the real property described above, you
433	433	are obligated to pay assessments to (insert name of municipality or
434	434	county, as applicable), Texas, for the costs of a portion of a
435	435	public improvement or services project (the "Authorized
436	436	Improvements") undertaken for the benefit of the property within
437	437	(insert name of public improvement district) (the "District")
438	438	created under (insert Subchapter A, Chapter 372, Local Government
439	439	Code, or Chapter 382, Local Government Code, as applicable).
440	440	AN ASSESSMENT HAS BEEN OR MAY BE LEVIED AGAINST YOUR PROPERTY
441	441	FOR THE AUTHORIZED IMPROVEMENTS, WHICH MAY BE PAID IN FULL AT ANY
442	442	TIME. IF THE ASSESSMENT IS NOT PAID IN FULL, IT WILL BE DUE AND
443	443	PAYABLE IN ANNUAL INSTALLMENTS THAT WILL VARY FROM YEAR TO YEAR
444	444	DEPENDING ON THE AMOUNT OF INTEREST PAID, COLLECTION COSTS,
445	445	ADMINISTRATIVE COSTS, AND DELINQUENCY COSTS.
446	446	The exact amount of the assessment may be obtained from
447	447	(insert name of municipality or county, as applicable). The exact
448	448	amount of each annual installment will be approved each year by
449	449	(insert name of city council or county commissioners court, as
450	450	applicable) in the annual service plan update for the district.
451	451	More information about the assessments, including the amounts and
452	452	due dates, may be obtained from (insert name of municipality or
453	453	county, as applicable).
454	454	Your failure to pay any assessment or any annual installment
455	455	may result in penalties and interest being added to what you owe or
456	456	in a lien on and the foreclosure of your property.
457	457	The undersigned purchaser acknowledges receipt of this
458	458	notice on or before the effective date of a binding contract for the
459	459	purchase of the real property at the address described above.
460	460	Date: __________________ ________________________________
461	461	Signature of Purchaser
462	462	(a-2) For a district described by Section 372.0035, Local
463	463	Government Code, the notice required by Subsection (a) shall be
464	464	executed by the seller and must, except as provided by Subsection
465	465	(b), read as follows:
466	466	NOTICE OF OBLIGATION TO PAY IMPROVEMENT DISTRICT ASSESSMENT TO
467	467	(insert name of municipality levying assessment), TEXAS
468	468	CONCERNING THE FOLLOWING HOTEL PROPERTY
469	469	(insert property address)
470	470	As the purchaser of the real property described above, you
471	471	are obligated to pay assessments to (insert name of municipality),
472	472	Texas, for the costs of a portion of a public improvement or
473	473	services project (the "Authorized Services") undertaken for the
474	474	benefit of the property within (insert name of public improvement
475	475	district) (the "District") created under Subchapter A, Chapter 372,
476	476	Local Government Code.
477	477	AN ASSESSMENT HAS BEEN OR MAY BE LEVIED AGAINST YOUR PROPERTY
478	478	FOR THE AUTHORIZED SERVICES, WHICH MUST BE PAID IN FULL WITH EVERY
479	479	PAYMENT BY THE HOTEL OF LOCAL HOTEL OCCUPANCY TAX REMITTANCES TO THE
480	480	MUNICIPALITY. YOUR FAILURE TO PAY THE ASSESSMENT MAY RESULT IN
481	481	PENALTIES AND INTEREST BEING ADDED TO WHAT YOU OWE, AND MAY INCLUDE
482	482	THE PURSUIT OF ANY OTHER REMEDY THAT IS AUTHORIZED UNDER SECTION
483	483	372.0035(d), LOCAL GOVERNMENT CODE.
484	484	Information about the calculation of the assessment may be
485	485	obtained from (insert name of the municipality). The exact
486	486	assessment rate will be approved each year by (insert name of city
487	487	council) in the annual service plan update for the district. More
488	488	information about the assessments, including the assessment rate
489	489	and due dates, may be obtained from (insert name of municipality).
490	490	The undersigned purchaser acknowledges receipt of this
491	491	notice on or before the effective date of a binding contract for the
492	492	purchase of the real property at the address described above.
493	493	Date: __________________ ________________________________
494	494	Signature of Purchaser
495	495	SECTION 19. The heading to Section 5.0141, Property Code,
496	496	is amended to read as follows:
497	497	Sec. 5.0141. NOTICE REQUIRED AT OR BEFORE CONTRACT
498	498	EXECUTION.
499	499	SECTION 20. Sections 5.0141(a), (c), and (d), Property
500	500	Code, are amended to read as follows:
501	501	(a) The notice required by Section 5.014 shall be given to
502	502	the prospective purchaser at or before the execution of a binding
503	503	contract of purchase and sale, either separately or as an addendum
504	504	or paragraph of a purchase contract.
505	505	(c) If, however, the seller furnishes the notice at or
506	506	before closing the purchase and sale contract and the purchaser
507	507	elects to sign the notice [close] even though the notice was not
508	508	timely furnished at or before execution of the contract, it shall be
509	509	conclusively presumed that the purchaser has waived all rights to
510	510	terminate the contract under Subsection (b) or recover damages or
511	511	other remedies or rights under Section 5.0145.
512	512	(d) Notwithstanding any provision of this section, Section
513	513	5.014, 5.0142, 5.0143, 5.0144, or 5.0145, all sellers, title
514	514	companies, real estate brokers, and examining attorneys, and any
515	515	agent, representative, or person acting on their behalf, are not
516	516	liable for damages under Section 5.0145, or for any other damages to
517	517	any person, for:
518	518	(1) failing to provide the notice to a purchaser
519	519	before execution of a binding contract of purchase and sale or at or
520	520	before the closing of the purchase and sale contract when the
521	521	municipality or county has not recorded [filed] the service plan as
522	522	required by Section 372.013, Local Government Code; or
523	523	(2) unintentionally providing a notice that is not the
524	524	correct notice under the circumstances before execution of a
525	525	binding contract of purchase and sale, or at or before the closing
526	526	of the purchase and sale contract.
527	527	SECTION 21. Section 5.0143, Property Code, is amended to
528	528	read as follows:
529	529	Sec. 5.0143. RECORDING OF NOTICE AT CLOSING. (a) At the
530	530	closing of purchase and sale, a separate copy of the notice required
531	531	by Section 5.014 with current information shall be executed by the
532	532	seller and purchaser, acknowledged, and recorded in the deed
533	533	records of the county in which the property is located.
534	534	(b) The content of the notice recorded under this section
535	535	may be the same as the content of the notice given under Section
536	536	5.0141 regardless of whether the amount of assessment levied
537	537	against the property has changed since the time that notice was
538	538	given to the purchaser.
539	539	SECTION 22. Section 5.0144, Property Code, is amended to
540	540	read as follows:
541	541	Sec. 5.0144. RELIANCE ON RECORDED [FILED] SERVICE
542	542	PLAN. (a) For the purposes of the notice required by Section
543	543	5.014, all sellers, title companies, real estate brokers, and
544	544	examining attorneys, and any agent, representative, or person
545	545	acting on their behalf, are entitled to rely on the accuracy of the
546	546	service plan as last recorded [filed] by each municipality or
547	547	county under Section 372.013, Local Government Code, in completing
548	548	the notice form to be executed by the seller and purchaser at the
549	549	closing of purchase and sale.
550	550	(b) Any information taken from the service plan as last
551	551	recorded [filed] by the municipality or county and the information
552	552	contained in or shown on the notice form contained in the service
553	553	plan under Section 372.013, Local Government Code, not including
554	554	information provided as to the assessments or annual installment
555	555	amounts as authorized by Section 5.014(b), shall be, for purposes
556	556	of the notice required by Section 5.014, conclusively presumed as a
557	557	matter of law to be correct.
558	558	(c) All subsequent sellers, purchasers, title insurance
559	559	companies, real estate brokers, examining attorneys, and
560	560	lienholders are entitled to rely on the service plan recorded
561	561	[filed] by the municipality or county, including the notice form
562	562	contained in the service plan, under Section 372.013, Local
563	563	Government Code.
564	564	(d) If the notice required by Section 5.014 is given at
565	565	closing as provided by Section 5.0141(c), a purchaser, or the
566	566	purchaser's heirs, successors, or assigns, are not entitled to
567	567	maintain an action for damages against a seller, title insurance
568	568	company, real estate broker, or lienholder, or any agent,
569	569	representative, or person acting on their behalf, because the
570	570	seller:
571	571	(1) used the notice form included in the service plan
572	572	recorded [filed] by the municipality or county under Section
573	573	372.013, Local Government Code; or
574	574	(2) relied on a [the filed] legal description of the
575	575	public improvement district included in the service plan recorded
576	576	by the municipality or county under Section 372.013, Local
577	577	Government Code, in determining whether the property is located in
578	578	the district.
579	579	(e) No action may be maintained against any title company
580	580	for failure to disclose the inclusion of the property in a public
581	581	improvement district when the municipality or county has not
582	582	recorded [filed] the service plan under Section 372.013, Local
583	583	Government Code, in the real property records [with the clerk] of
584	584	each county in which the district is located.
585	585	(f) All sellers, title insurance companies, examining
586	586	attorneys, vendors of property and tax information, real estate
587	587	brokers, and lienholders, and any agent, representative, or person
588	588	acting on their behalf, are entitled to rely on the accuracy of:
589	589	(1) the service plan last recorded [filed] by the
590	590	municipality or county or the information in the notice form
591	591	recorded [filed] by the district under Section 372.013, Local
592	592	Government Code; or
593	593	(2) for the purposes of the notice required by Section
594	594	5.014, the information in the service plan recorded [filed] by the
595	595	municipality or county in effect as of January 1 of each year for
596	596	the period January 1 through December 31 of such calendar year.
597	597	SECTION 23. Section 372.151, Local Government Code, is
598	598	repealed.
599	599	SECTION 24. Section 372.009(d), Local Government Code, as
600	600	amended by this Act, applies only to a hearing under Section
601	601	372.009, Local Government Code, on or after the effective date of
602	602	this Act.
603	603	SECTION 25. Sections 372.010(b) and (c), Local Government
604	604	Code, as amended by this Act, apply only to a resolution adopted
605	605	under Section 372.010, Local Government Code, on or after the
606	606	effective date of this Act. A resolution adopted before the
607	607	effective date of this Act is governed by the law in effect on the
608	608	date the resolution was adopted, and the former law is continued in
609	609	effect for that purpose.
610	610	SECTION 26. Sections 372.013(a) and (c), Local Government
611	611	Code, as amended by this Act, apply only to a service plan approved
612	612	under that section on or after the effective date of this Act. A
613	613	service plan approved before the effective date of this Act is
614	614	governed by the law in effect on the date the service plan was
615	615	approved, and the former law is continued in effect for that
616	616	purpose.
617	617	SECTION 27. Section 372.013, Local Government Code, as
618	618	amended by this Act, applies only to a service plan amended or
619	619	updated under that section on or after the effective date of this
620	620	Act.
621	621	SECTION 28. Sections 372.014(a) and (b), Local Government
622	622	Code, as amended by this Act, and Sections 372.015(e) and (f), Local
623	623	Government Code, as added by this Act, apply only to an assessment
624	624	plan included in a service plan approved under Section 372.013,
625	625	Local Government Code, as amended by this Act, on or after the
626	626	effective date of this Act. An assessment plan included in a
627	627	service plan approved before the effective date of this Act is
628	628	governed by the law in effect on the date the service plan was
629	629	approved, and the former law is continued in effect for that
630	630	purpose.
631	631	SECTION 29. Sections 372.015(e) and (f), Local Government
632	632	Code, as added by this Act, apply only to an assessment
633	633	determination made on or after the effective date of this Act.
634	634	SECTION 30. Section 372.016, Local Government Code, as
635	635	amended by this Act, applies only to notice given under Section
636	636	372.016, Local Government Code, on or after the effective date of
637	637	this Act.
638	638	SECTION 31. Sections 372.017 and 372.019, Local Government
639	639	Code, as amended by this Act, apply only to the levy of an
640	640	assessment made on or after the effective date of this Act.
641	641	SECTION 32. Section 372.023, Local Government Code, as
642	642	amended by this Act, applies only to the payment of costs made on or
643	643	after the effective date of this Act.
644	644	SECTION 33. Sections 5.014, 5.0141, 5.0143, and 5.0144,
645	645	Property Code, as amended by this Act, apply only to a sale or
646	646	conveyance of property for which a binding contract is executed on
647	647	or after the effective date of this Act. A sale or conveyance for
648	648	which a binding contract is executed before the effective date of
649	649	this Act is governed by the law in effect on the date the contract is
650	650	executed, and the former law is continued in effect for that
651	651	purpose.
652	652	SECTION 34. This Act takes effect September 1, 2023.