By: Creighton S.B. No. 2522
A BILL TO BE ENTITLED
AN ACT
relating to the notice given to purchasers of property within
certain water districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 49.452, Water Code, is amended by
amending subsection (a) to read as follows:
(a) (1) Any person who proposes to sell or convey real
property located in a district as defined by this subsection must
give to the purchaser the written notices as provided in this
section.
(2) For the purposes of this section, "district" means
a district that:
(A) operates pursuant to Chapter 375, Local
Government Code; or
(B) is created under this title or by a special
Act of the legislature,
(i) that is providing or proposing to
provide, as the district's principal function, water, sanitary
sewer, drainage, and flood control or protection facilities or
services, or any of these facilities or services that have been
financed or are proposed to be financed with bonds of the district
payable in whole or part from taxes of the district, or by
imposition of a standby fee, if any, to household or commercial
users, other than agricultural, irrigation, or industrial users,
and
(ii) [which district] includes less
than all the territory in at least one county and which, if located
within the corporate area of a city, includes less than 75 percent
of the incorporated area of the city or which is located outside the
corporate area of a city in whole or in substantial part [, must
first give to the purchaser the written notice provided in Section
49.4525 this section].
(3)(2) The provisions of this section shall not be
applicable to:
(A) transfers of title under any type of lien
foreclosure;
(B) transfers of title by deed in cancellation of
indebtedness secured by a lien upon the property conveyed;
(C) transfers of title by reason of a will or
probate proceedings; [or]
(D) transfers of title to a governmental entity;
or
(E) transfers of title for the purpose of
qualifying a director.
SECTION 2. Subchapter M, Chapter 49, Water Code, is amended
by adding Section 49.4525 to read as follows:
Sec. 49.4525. FORM OF NOTICE. (a) The caption at the top of
the prescribed notice shall be printed in bold, capitalized letters
in a font that is 24 point or larger and shall read: "NOTICE TO
PURCHASER OF SPECIAL TAXING OR ASSESSMENT DISTRICT."
(b) The prescribed notice shall include the following
statements as applicable to the district, as determined by the
district. Statements not applicable to the district shall be
omitted or edited for accuracy, as determined by the district.
(i) "The real property that you are about to
purchase is located in the __________ District and may be subject to
district taxes or assessments."
(ii) "The district may, subject to voter
approval, levy taxes and issue bonds and levy an unlimited rate of
tax in payment of such bonds."
(iii) (A) "The current rate of the district
property tax is $__________ on each $100 of assessed valuation.";
or
(B) "The district has not yet levied taxes,
but the projected rate of the district property tax is $__________
on each $100 of assessed valuation."
(iv) "The district may impose assessments and
issue bonds and impose an assessment in payment of such bonds."
(v) (A) "The rate of the district assessment
is $___________ on each $100 of assessed valuation."; or
(B) "The amount of the district assessment
on the real property that you are about to purchase is
$__________."; or
(C) "The district has not yet imposed an
assessment, but the projected [rate] [amount] of assessment is
$__________."
(vi) "The total amounts of bonds payable in whole
or in part from [property taxes] [assessments], [excluding
[refunding bonds that are separately approved by the voters] and
[any bonds or any portion of bonds issued that are payable solely
from revenues received or expected to be received under a contract
with a governmental entity]], approved by the voters are:
(A) $__________ for water, sewer, and
drainage facilities;
(B) $__________ for road facilities;
(C) $___________ for parks and recreational
facilities; and
(D) $__________ for __________
facilities."
(vii) "The aggregate initial principal amounts
of all such bonds issued are:
(A) $__________ for water, sewer, and
drainage facilities;
(B) $__________ for road facilities;
(C) $___________ for parks and recreational
facilities; and
(D) $__________ for __________
facilities."
(ix) "The district sought and obtained approval
of the Texas Commission on Environmental Quality to adopt and
impose a standby fee. The amount of the standby fee is $__________.
An unpaid standby fee is a personal obligation of the person that
owned the property at the time of imposition and is secured by a
lien on the property. Any person may request a certificate from the
district stating the amount, if any, of unpaid standby fees on a
tract of property in the district."
(x) (A) "The district is located in whole or
in part in the extraterritorial jurisdiction of the City of
__________. Texas law governs the ability of a municipality to
annex property in the extraterritorial jurisdiction and whether a
district that is annexed is dissolved."; or
(B) "The district is located in whole or in
part within the corporate boundaries of the City of __________. The
city and the district overlap, but may not provide duplicate
services or improvements. Property located in the city and the
district is subject to taxation by the city and the district."
(xi) "The district has entered into a strategic
partnership agreement with the City of ___________. This agreement
may address the timeframe, process, and procedures for the
municipal annexation of the area of the district."
(xii) "The purpose of the district is to provide
[[water,] [sewer,] [drainage,] [flood control,] [fire-fighting,]
[road,] [park and recreational,] or [____________ ]] facilities and
services. The cost of district facilities is not included in the
purchase price of your property."
(xiii) "PURCHASER IS ADVISED THAT THE
INFORMATION SHOWN ON THIS FORM IS SUBJECT TO CHANGE BY THE DISTRICT
AT ANY TIME. THE DISTRICT ANNUALLY ESTABLISHES TAX RATES.
PURCHASER IS ADVISED TO CONTACT THE DISTRICT TO DETERMINE THE
STATUS OF ANY CURRENT OR PROPOSED CHANGES TO THE INFORMATION SHOWN
ON THIS FORM."
"The undersigned purchaser hereby acknowledges
receipt of the foregoing notice at or prior to execution of a
binding contract for the purchase of the real property or at closing
of purchase of the real property."
(d) The notice shall be dated and executed by the seller and
the purchaser.
(e) If the law is amended and causes inaccuracies in the
content of the notice, the district shall revise the content of the
notice to accurately reflect current law.
SECTION 3. Section 49.453, Water Code, is amended to add
subsection (e) to read as follows:
(e) A district required by Section 26.18, Tax Code, to
maintain an Internet website or have access to a generally
accessible Internet website for the purposes of that section, shall
post or cause to be posted on the Internet the district's form of
notice to purchasers under Section 49.4525.
SECTION 4. Subsection 49.455(c), Water Code, is amended to
read as follows:
(c) The information form [and map or plat required by this
section] shall be signed by a majority of the members of the board
and by each such officer affirmed and acknowledged before it is
filed with the county clerk, and each amendment made to an
information form [or map] shall also be signed by the members of the
board and by each such officer affirmed and acknowledged before it
is filed with the county clerk.
SECTION 5. (1) Subsections 49.452(b),(c),(d), and (e) are
repealed.
(2) Subsections 49.455(f) and (h) are repealed.
SECTION 6. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2023.