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COMMITTEE VOTE |
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YeaNayAbsentPNV |
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BettencourtX |
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SpringerX |
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EckhardtX |
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GutierrezX |
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HallX |
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NicholsX |
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ParkerX |
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PaxtonX |
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WestX |
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A BILL TO BE ENTITLED
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AN ACT
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relating to notice provided to purchasers of property and |
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information filed with the county clerk by certain special |
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districts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 49.452, Water Code, is amended by |
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amending Subsection (a) and adding Subsections (a-1) and (a-2) to |
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read as follows: |
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(a) In this section, "district" means a district: |
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(1) governed by Chapter 375, Local Government Code; or |
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(2) [(1) Any person who proposes to sell or convey |
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real property located in a district] created under this title or by |
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a special Act of the legislature that: |
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(A) is providing or proposing to provide, as the |
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district's principal function, water, sanitary sewer, drainage, |
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and flood control or protection facilities or services, or any of |
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these facilities or services that have been financed or are |
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proposed to be financed with bonds of the district payable in whole |
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or part from taxes of the district, or by imposition of a standby |
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fee, if any, to household or commercial users, other than |
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agricultural, irrigation, or industrial users;[,] and |
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(B) [which district] includes less than all the |
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territory in at least one county and which, if located within the |
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corporate area of a city, includes less than 75 percent of the |
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incorporated area of the city or which is located outside the |
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corporate area of a city in whole or in substantial part[, must |
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first give to the purchaser the written notice provided in this |
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section]. |
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(a-1) A person who proposes to sell or convey real property |
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located in a district must give to the purchaser the written notice |
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as provided by this section and Section 49.4521. |
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(a-2) [(2)] The provisions of this section are [shall] not |
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[be] applicable to: |
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(1) [(A)] transfers of title under any type of lien |
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foreclosure; |
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(2) [(B)] transfers of title by deed in cancellation |
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of indebtedness secured by a lien upon the property conveyed; |
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(3) [(C)] transfers of title by reason of a will or |
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probate proceedings; [or] |
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(4) [(D)] transfers of title to a governmental entity; |
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or |
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(5) transfers of title for the purpose of qualifying a |
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director. |
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SECTION 2. Subchapter M, Chapter 49, Water Code, is amended |
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by adding Section 49.4521 to read as follows: |
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Sec. 49.4521. PRESCRIBED NOTICE TO PURCHASERS. (a) A |
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notice to a purchaser provided under Section 49.452 must include: |
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(1) a title caption in at least a 24-point, bold font |
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stating "NOTICE TO PURCHASER OF SPECIAL TAXING OR ASSESSMENT |
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DISTRICT"; and |
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(2) the following statements, as applicable to the |
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district: |
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(A) "The real property that you are about to |
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purchase is located in the (insert name of district) and may be |
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subject to district taxes or assessments."; |
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(B) "The district may, subject to voter approval, |
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impose taxes and issue bonds. The district may impose an unlimited |
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rate of tax in payment of such bonds."; |
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(C) one of the following, as applicable: |
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(i) "The current rate of the district |
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property tax is (insert current property tax rate) on each $100 of |
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assessed valuation."; or |
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(ii) "The district has not yet imposed |
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taxes. The projected rate of the district property tax is (insert |
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projected property tax rate) on each $100 of assessed valuation."; |
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(D) "The district may impose assessments and |
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issue bonds and impose an assessment in payment of such bonds."; |
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(E) one of the following, as applicable: |
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(i) "The rate of the district assessment is |
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(insert current assessment amount) on each $100 of assessed |
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valuation."; |
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(ii) "The amount of the district assessment |
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on the real property that you are about to purchase is (insert |
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current assessment amount)."; or |
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(iii) "The district has not yet imposed an |
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assessment, but the projected (insert "rate" or "amount", as |
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applicable) of the assessment is (insert projected assessment rate |
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or amount, as applicable)."; |
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(F) "The total amounts of bonds payable wholly or |
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partly from (insert "property taxes" or "assessments", as |
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applicable) (insert ", excluding refunding bonds that are |
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separately approved by the voters" or ", excluding any bonds or any |
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portions of bonds issued that are payable solely from revenues |
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received or expected to be received under a contract with a |
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governmental entity", as applicable), approved by the voters are: |
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(i) $(insert amount) for water, sewer, and |
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drainage facilities; |
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(ii) $(insert amount) for road facilities; |
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(iii) $(insert amount) for parks and |
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recreational facilities; and |
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(iv) $(insert amount) for (description of |
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additional facilities, as applicable)."; |
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(G) "The aggregate initial principal amounts of |
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all such bonds issued are: |
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(i) $(insert amount) for water, sewer, and |
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drainage facilities; |
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(ii) $(insert amount) for road facilities; |
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(iii) $(insert amount) for parks and |
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recreational facilities; and |
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(iv) $(insert amount) for (description of |
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additional facilities, as applicable)."; |
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(H) "The district sought and obtained approval of |
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the Texas Commission on Environmental Quality to adopt and impose a |
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standby fee. The amount of the standby fee is $(insert amount of |
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standby fee). An unpaid standby fee is a personal obligation of the |
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person that owned the property at the time of imposition and is |
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secured by a lien on the property. Any person may request a |
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certificate from the district stating the amount, if any, of unpaid |
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standby fees on a tract of property in the district."; |
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(I) if applicable, one of the following: |
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(i) "The district is located wholly or |
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partly in the extraterritorial jurisdiction of the City of (insert |
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name of the municipality). Texas law governs the ability of a |
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municipality to annex property in the municipality's |
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extraterritorial jurisdiction and whether a district that is |
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annexed by the municipality is dissolved."; or |
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(ii) "The district is located wholly or |
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partly within the corporate boundaries of the City of (insert name |
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of the municipality). The municipality and the district overlap, |
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but may not provide duplicate services or improvements. Property |
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located in the municipality and the district is subject to taxation |
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by the municipality and the district."; |
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(J) "The district has entered into a strategic |
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partnership agreement with the City of (insert name of the |
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municipality). This agreement may address the timeframe, process, |
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and procedures for the municipal annexation of the area of the |
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district located in the municipality's extraterritorial |
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jurisdiction."; |
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(K) "The purpose of the district is to provide |
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(insert water, sewer, drainage, flood control, firefighting, road, |
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parks and recreational, or other type of facilities or services, as |
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applicable) facilities and services. The cost of district |
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facilities is not included in the purchase price of your |
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property."; |
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(L) "PURCHASER IS ADVISED THAT THE INFORMATION |
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SHOWN ON THIS FORM IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME. |
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THE DISTRICT ANNUALLY ESTABLISHES TAX RATES. PURCHASER IS ADVISED |
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TO CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR |
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PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM."; and |
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(M) "The undersigned purchaser hereby |
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acknowledges receipt of the foregoing notice at or before the |
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execution of a binding contract for the purchase of the real |
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property or at closing of purchase of the real property.". |
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(b) The district shall omit or edit for accuracy statements |
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not applicable to the district, as determined by the district. |
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(c) The notice must be dated and executed by the seller and |
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the purchaser. |
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(d) If the law is amended and causes inaccuracies in the |
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content of the notice, the district shall revise the content of the |
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notice to accurately reflect current law. |
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SECTION 3. Section 49.453, Water Code, is amended by adding |
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Subsection (e) to read as follows: |
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(e) A district required to maintain an Internet website or |
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have access to a generally accessible Internet website under |
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Section 26.18, Tax Code, shall post or create a process for posting |
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the district's notice to purchasers under Section 49.4521 on the |
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applicable Internet website. |
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SECTION 4. Section 49.455(c), Water Code, is amended to |
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read as follows: |
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(c) The information form [and map or plat] required by this |
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section shall be signed by a majority of the members of the board |
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and by each such officer affirmed and acknowledged before it is |
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filed with the county clerk, and each amendment made to an |
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information form [or map] shall also be signed by the members of the |
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board and by each such officer affirmed and acknowledged before it |
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is filed with the county clerk. |
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SECTION 5. Section 3919.205(d), Special District Local Laws |
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Code, is amended to read as follows: |
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(d) The district shall generate and implement a program to |
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provide notice modeled on the notice described by Section 49.4521 |
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[49.452(c)], Water Code, to a prospective purchaser of property in |
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the district of the assessments that have been approved and are |
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imposed by the district. |
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SECTION 6. The following provisions of the Water Code are |
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repealed: |
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(1) Sections 49.452(b), (c), (d), and (e); and |
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(2) Sections 49.455(f) and (h). |
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SECTION 7. (a) Section 49.452, Water Code, as amended by |
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this Act, and Section 49.4521, Water Code, as added by this Act, |
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apply only to notice given to a purchaser of real property within a |
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water district on or after the effective date of this Act. Notice |
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given to a purchaser before the effective date is governed by the |
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law in effect at the time the notice was given, and that law is |
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continued in effect for that purpose. |
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(b) Section 49.455, Water Code, as amended by this Act, |
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applies only to an information form filed on or after the effective |
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date of this Act. An information form filed before the effective |
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date of this Act is governed by the law in effect on the date the |
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form was filed, and that law is continued in effect for that |
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purpose. |
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SECTION 8. This Act takes effect September 1, 2023. |
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* * * * * |