BILL ANALYSIS H.B. 2468 By: Harris Trade, Workforce & Economic Development Committee Report (Unamended) BACKGROUND AND PURPOSE The 87th Legislature enacted legislation that created a notification process for the transfer of property located in public improvement districts. Among other provisions, this legislation provided for the unrestricted termination of a contract for such a property transfer if a sale is entered into without the seller providing notice regarding the property's location in a public improvement district. The bill author informed the committee that, while these changes brought welcomed transparency, there is no enforcement mechanism to ensure that the public improvement district service plan information is filed with the proper county clerk as required by law and that, if the information is not filed in the appropriate location and readily accessible, a purchaser of property should not be able to cancel the purchase agreement merely for the lack of a public improvement district location notification. H.B. 2468 seeks to remedy this situation by specifying that the right of a purchaser to terminate a contract of purchase and sale of real property if the seller fails to provide the requisite public improvement district location notice is an entitlement to terminate the contract for any reason, but not later than the seventh day after the date the purchaser receives the notice. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS H.B. 2468 amends the Property Code to specify that the right of a purchaser to terminate a contract of purchase and sale of real property if the seller fails to provide notice that the property is located in a public improvement district is an entitlement to terminate the contract for any reason, but not later than the seventh day after the date the purchaser receives the notice. The bill authorizes the purchaser to terminate the contract under this provision only if the municipality or county filed a copy of the service plan in connection with the improvement with the county clerk in accordance with Local Government Code requirements before the date the contract was entered into. The bill applies only to a sale or conveyance of property for which a binding contract is executed on or after the bill's effective date. A sale or conveyance for which a binding contract is executed before the bill's effective date is governed by the law in effect on the date the contract is executed, and the former law is continued in effect for that purpose. EFFECTIVE DATE On passage, or, if the bill does not receive the necessary vote, September 1, 2025.
BILL ANALYSIS
# BILL ANALYSIS
H.B. 2468
By: Harris
Trade, Workforce & Economic Development
Committee Report (Unamended)
H.B. 2468
By: Harris
Trade, Workforce & Economic Development
Committee Report (Unamended)
BACKGROUND AND PURPOSE The 87th Legislature enacted legislation that created a notification process for the transfer of property located in public improvement districts. Among other provisions, this legislation provided for the unrestricted termination of a contract for such a property transfer if a sale is entered into without the seller providing notice regarding the property's location in a public improvement district. The bill author informed the committee that, while these changes brought welcomed transparency, there is no enforcement mechanism to ensure that the public improvement district service plan information is filed with the proper county clerk as required by law and that, if the information is not filed in the appropriate location and readily accessible, a purchaser of property should not be able to cancel the purchase agreement merely for the lack of a public improvement district location notification. H.B. 2468 seeks to remedy this situation by specifying that the right of a purchaser to terminate a contract of purchase and sale of real property if the seller fails to provide the requisite public improvement district location notice is an entitlement to terminate the contract for any reason, but not later than the seventh day after the date the purchaser receives the notice.
CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS H.B. 2468 amends the Property Code to specify that the right of a purchaser to terminate a contract of purchase and sale of real property if the seller fails to provide notice that the property is located in a public improvement district is an entitlement to terminate the contract for any reason, but not later than the seventh day after the date the purchaser receives the notice. The bill authorizes the purchaser to terminate the contract under this provision only if the municipality or county filed a copy of the service plan in connection with the improvement with the county clerk in accordance with Local Government Code requirements before the date the contract was entered into. The bill applies only to a sale or conveyance of property for which a binding contract is executed on or after the bill's effective date. A sale or conveyance for which a binding contract is executed before the bill's effective date is governed by the law in effect on the date the contract is executed, and the former law is continued in effect for that purpose.
EFFECTIVE DATE On passage, or, if the bill does not receive the necessary vote, September 1, 2025.
BACKGROUND AND PURPOSE
The 87th Legislature enacted legislation that created a notification process for the transfer of property located in public improvement districts. Among other provisions, this legislation provided for the unrestricted termination of a contract for such a property transfer if a sale is entered into without the seller providing notice regarding the property's location in a public improvement district. The bill author informed the committee that, while these changes brought welcomed transparency, there is no enforcement mechanism to ensure that the public improvement district service plan information is filed with the proper county clerk as required by law and that, if the information is not filed in the appropriate location and readily accessible, a purchaser of property should not be able to cancel the purchase agreement merely for the lack of a public improvement district location notification. H.B. 2468 seeks to remedy this situation by specifying that the right of a purchaser to terminate a contract of purchase and sale of real property if the seller fails to provide the requisite public improvement district location notice is an entitlement to terminate the contract for any reason, but not later than the seventh day after the date the purchaser receives the notice.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
H.B. 2468 amends the Property Code to specify that the right of a purchaser to terminate a contract of purchase and sale of real property if the seller fails to provide notice that the property is located in a public improvement district is an entitlement to terminate the contract for any reason, but not later than the seventh day after the date the purchaser receives the notice. The bill authorizes the purchaser to terminate the contract under this provision only if the municipality or county filed a copy of the service plan in connection with the improvement with the county clerk in accordance with Local Government Code requirements before the date the contract was entered into. The bill applies only to a sale or conveyance of property for which a binding contract is executed on or after the bill's effective date. A sale or conveyance for which a binding contract is executed before the bill's effective date is governed by the law in effect on the date the contract is executed, and the former law is continued in effect for that purpose.
EFFECTIVE DATE
On passage, or, if the bill does not receive the necessary vote, September 1, 2025.