Texas 2023 - 88th Regular

Texas Senate Bill SB59

Filed
11/14/22  
Out of Senate Committee
3/29/23  
Voted on by Senate
4/4/23  
Out of House Committee
4/24/23  
Voted on by House
4/28/23  
Governor Action
5/13/23  

Caption

Relating to notice of water and wastewater requirements for the foreclosure sale of residential properties by certain political subdivisions.

Impact

The implications of SB 59 are significant for both potential homebuyers and local governments. By establishing requirements for notice related to water and wastewater services, the bill enhances transparency in the property sales process. This is particularly critical for residential properties, where utility access is essential for habitability. The updated law seeks to ensure that prospective buyers are made aware of any deficiencies in water or wastewater services that would impact the property's intended residential use, helping to avert post-sale complications due to unanticipated service issues.

Summary

Senate Bill 59 addresses the notification requirements regarding water and wastewater services during the foreclosure sale of residential properties by certain political subdivisions. Specifically, the bill clarifies that not only counties but also other political subdivisions must comply with notice obligations tied to water and wastewater services when conducting a foreclosure sale. This adjustment aims to provide potential buyers with critical information about the property's compliance with these essential utility requirements, potentially fostering informed bidding decisions in real estate transactions involving foreclosures.

Sentiment

The sentiment surrounding SB 59 appears to be generally positive, as it aligns with broader goals of consumer protection and promotes clearer communication about property conditions. Legislative discussions reflected support for the bill, particularly from those interested in safeguarding homeowners' interests in the housing market. There was no significant opposition noted during committee discussions, indicating a consensus that enhancing notification requirements is a beneficial step for prospective buyers. However, some may express concerns regarding the potential administrative burdens that these requirements might impose on smaller political subdivisions.

Contention

While no notable points of contention emerged in the legislative debates, the bill's transparency mandate may raise questions about the capacity and resources of smaller political subdivisions to meet these notification obligations effectively. The requirement for all political subdivisions to provide the necessary notices could present challenges, particularly if they lack the infrastructure or processes in place to manage this requirement seamlessly. Overall, the bill is seen as a positive progression towards better consumer protections in the property market.

Texas Constitutional Statutes Affected

Local Government Code

  • Chapter 232. County Regulation Of Subdivisions
    • Section: 0315
    • Section: 0315
    • Section: 0315
    • Section: 0315
    • Section: 0315

Tax Code

  • Chapter 34. Tax Sales And Redemption
    • Section: 01
    • Section: 01
    • Section: 01
    • Section: 01
    • Section: New Section

Companion Bills

TX HB2571

Identical Relating to notice of water and wastewater requirements for the foreclosure sale of residential properties by certain political subdivisions.

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