Texas 2023 - 88th Regular

Texas Senate Bill SB2522 Compare Versions

Version 1 (Old)

Version 2 (New)

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1	1	By: Creighton S.B. No. 2522
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the notice given to purchasers of property within
7	7	certain water 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) to read as follows:
11	11	(a) (1) Any person who proposes to sell or convey real
12	12	property located in a district as defined by this subsection must
13	13	give to the purchaser the written notices as provided in this
14	14	section.
15	15	(2) For the purposes of this section, "district" means
16	16	a district that:
17	17	(A) operates pursuant to Chapter 375, Local
18	18	Government Code; or
19	19	(B) is created under this title or by a special
20	20	Act of the legislature,
21	21	(i) that is providing or proposing to
22	22	provide, as the district's principal function, water, sanitary
23	23	sewer, drainage, and flood control or protection facilities or
24	24	services, or any of these facilities or services that have been
25	25	financed or are proposed to be financed with bonds of the district
26	26	payable in whole or part from taxes of the district, or by
27	27	imposition of a standby fee, if any, to household or commercial
28	28	users, other than agricultural, irrigation, or industrial users,
29	29	and
30	30	(ii) [which district] includes less
31	31	than all the territory in at least one county and which, if located
32	32	within the corporate area of a city, includes less than 75 percent
33	33	of the incorporated area of the city or which is located outside the
34	34	corporate area of a city in whole or in substantial part [, must
35	35	first give to the purchaser the written notice provided in Section
36	36	49.4525 this section].
37	37	(3)(2) The provisions of this section shall not be
38	38	applicable to:
39	39	(A) transfers of title under any type of lien
40	40	foreclosure;
41	41	(B) transfers of title by deed in cancellation of
42	42	indebtedness secured by a lien upon the property conveyed;
43	43	(C) transfers of title by reason of a will or
44	44	probate proceedings; [or]
45	45	(D) transfers of title to a governmental entity;
46	46	or
47	47	(E) transfers of title for the purpose of
48	48	qualifying a director.
49	49	SECTION 2. Subchapter M, Chapter 49, Water Code, is amended
50	50	by adding Section 49.4525 to read as follows:
51	51	Sec. 49.4525. FORM OF NOTICE. (a) The caption at the top of
52	52	the prescribed notice shall be printed in bold, capitalized letters
53	53	in a font that is 24 point or larger and shall read: "NOTICE TO
54	54	PURCHASER OF SPECIAL TAXING OR ASSESSMENT DISTRICT."
55	55	(b) The prescribed notice shall include the following
56	56	statements as applicable to the district, as determined by the
57	57	district. Statements not applicable to the district shall be
58	58	omitted or edited for accuracy, as determined by the district.
59	59	(i) "The real property that you are about to
60	60	purchase is located in the __________ District and may be subject to
61	61	district taxes or assessments."
62	62	(ii) "The district may, subject to voter
63	63	approval, levy taxes and issue bonds and levy an unlimited rate of
64	64	tax in payment of such bonds."
65	65	(iii) (A) "The current rate of the district
66	66	property tax is $__________ on each $100 of assessed valuation.";
67	67	or
68	68	(B) "The district has not yet levied taxes,
69	69	but the projected rate of the district property tax is $__________
70	70	on each $100 of assessed valuation."
71	71	(iv) "The district may impose assessments and
72	72	issue bonds and impose an assessment in payment of such bonds."
73	73	(v) (A) "The rate of the district assessment
74	74	is $___________ on each $100 of assessed valuation."; or
75	75	(B) "The amount of the district assessment
76	76	on the real property that you are about to purchase is
77	77	$__________."; or
78	78	(C) "The district has not yet imposed an
79	79	assessment, but the projected [rate] [amount] of assessment is
80	80	$__________."
81	81	(vi) "The total amounts of bonds payable in whole
82	82	or in part from [property taxes] [assessments], [excluding
83	83	[refunding bonds that are separately approved by the voters] and
84	84	[any bonds or any portion of bonds issued that are payable solely
85	85	from revenues received or expected to be received under a contract
86	86	with a governmental entity]], approved by the voters are:
87	87	(A) $__________ for water, sewer, and
88	88	drainage facilities;
89	89	(B) $__________ for road facilities;
90	90	(C) $___________ for parks and recreational
91	91	facilities; and
92	92	(D) $__________ for __________
93	93	facilities."
94	94	(vii) "The aggregate initial principal amounts
95	95	of all such bonds issued are:
96	96	(A) $__________ for water, sewer, and
97	97	drainage facilities;
98	98	(B) $__________ for road facilities;
99	99	(C) $___________ for parks and recreational
100	100	facilities; and
101	101	(D) $__________ for __________
102	102	facilities."
103	103	(ix) "The district sought and obtained approval
104	104	of the Texas Commission on Environmental Quality to adopt and
105	105	impose a standby fee. The amount of the standby fee is $__________.
106	106	An unpaid standby fee is a personal obligation of the person that
107	107	owned the property at the time of imposition and is secured by a
108	108	lien on the property. Any person may request a certificate from the
109	109	district stating the amount, if any, of unpaid standby fees on a
110	110	tract of property in the district."
111	111	(x) (A) "The district is located in whole or
112	112	in part in the extraterritorial jurisdiction of the City of
113	113	__________. Texas law governs the ability of a municipality to
114	114	annex property in the extraterritorial jurisdiction and whether a
115	115	district that is annexed is dissolved."; or
116	116	(B) "The district is located in whole or in
117	117	part within the corporate boundaries of the City of __________. The
118	118	city and the district overlap, but may not provide duplicate
119	119	services or improvements. Property located in the city and the
120	120	district is subject to taxation by the city and the district."
121	121	(xi) "The district has entered into a strategic
122	122	partnership agreement with the City of ___________. This agreement
123	123	may address the timeframe, process, and procedures for the
124	124	municipal annexation of the area of the district."
125	125	(xii) "The purpose of the district is to provide
126	126	[[water,] [sewer,] [drainage,] [flood control,] [fire-fighting,]
127	127	[road,] [park and recreational,] or [____________ ]] facilities and
128	128	services. The cost of district facilities is not included in the
129	129	purchase price of your property."
130	130	(xiii) "PURCHASER IS ADVISED THAT THE
131	131	INFORMATION SHOWN ON THIS FORM IS SUBJECT TO CHANGE BY THE DISTRICT
132	132	AT ANY TIME. THE DISTRICT ANNUALLY ESTABLISHES TAX RATES.
133	133	PURCHASER IS ADVISED TO CONTACT THE DISTRICT TO DETERMINE THE
134	134	STATUS OF ANY CURRENT OR PROPOSED CHANGES TO THE INFORMATION SHOWN
135	135	ON THIS FORM."
136	136	"The undersigned purchaser hereby acknowledges
137	137	receipt of the foregoing notice at or prior to execution of a
138	138	binding contract for the purchase of the real property or at closing
139	139	of purchase of the real property."
140	140	(d) The notice shall be dated and executed by the seller and
141	141	the purchaser.
142	142	(e) If the law is amended and causes inaccuracies in the
143	143	content of the notice, the district shall revise the content of the
144	144	notice to accurately reflect current law.
145	145	SECTION 3. Section 49.453, Water Code, is amended to add
146	146	subsection (e) to read as follows:
147	147	(e) A district required by Section 26.18, Tax Code, to
148	148	maintain an Internet website or have access to a generally
149	149	accessible Internet website for the purposes of that section, shall
150	150	post or cause to be posted on the Internet the district's form of
151	151	notice to purchasers under Section 49.4525.
152	152	SECTION 4. Subsection 49.455(c), Water Code, is amended to
153	153	read as follows:
154	154	(c) The information form [and map or plat required by this
155	155	section] shall be signed by a majority of the members of the board
156	156	and by each such officer affirmed and acknowledged before it is
157	157	filed with the county clerk, and each amendment made to an
158	158	information form [or map] shall also be signed by the members of the
159	159	board and by each such officer affirmed and acknowledged before it
160	160	is filed with the county clerk.
161	161	SECTION 5. (1) Subsections 49.452(b),(c),(d), and (e) are
162	162	repealed.
163	163	(2) Subsections 49.455(f) and (h) are repealed.
164	164	SECTION 6. This Act takes effect immediately if it receives
165	165	a vote of two-thirds of all the members elected to each house, as
166	166	provided by Section 39, Article III, Texas Constitution. If this
167	167	Act does not receive the vote necessary for immediate effect, this
168	168	Act takes effect September 1, 2023.