SRC-DPW H.B. 641 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 641
76R11169 PAM-FBy: Howard (Lindsay)
Intergovernmental Relations
5/12/1999
Engrossed


DIGEST 

Currently, Texas law does not require a prospective purchaser of
residential property to be notified that the property may be subject to
future annexation because it is located within a city's extraterritorial
jurisdiction.  This bill would require a municipal utility district to
disclose to the purchaser of residential real property that the district is
located in the extraterritorial jurisdiction of a municipality and for that
reason the district may be annexed by the municipality, or that the
district is located within the corporate boundaries of a municipality, and
prescribes the statutory language that is required to be used for such
notice.  

PURPOSE

As proposed, H.B. 641  requires a municipal utility district to disclose to
the purchaser of residential real property that the district is located in
the extraterritorial jurisdiction of a municipality or within the corporate
boundaries of a municipality, and prescribes the statutory language that is
required to be used for such notice.  

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 49.452, Water Code, to prohibit the provisions of
this section from being applicable to transfers of title to a governmental
entity.  Requires the prescribed notice for districts, rather than all
districts, located in whole or in part in the extraterritorial jurisdiction
of one or more home-rule municipalities and not located within the
corporate boundaries of a municipality (extraterritorial notice) to be
executed by the seller.  Sets forth the revised required text and format of
the extraterritorial notice.  Requires the prescribed notice for districts
located in whole or in part within the corporate boundaries of a
municipality (corporate notice) to be executed by the seller.  Sets forth
the required text and format of the corporate notice.  Requires the
prescribed notice for districts that are not located in whole or in part
within the corporate boundaries of a municipality or the extraterritorial
jurisdiction of one or more home-rule municipalities (outside of boundaries
notice) to be executed by the seller.  Sets forth the required text and
format of the outside of boundaries notice.  Requires a district to revise
the content of the notices prescribed by this section to accurately reflect
current law, if the law relating to annexation or district dissolution is
amended and causes inaccuracies in the content of such notices.  Provides
that notwithstanding any provision of this subchapter to the contrary, all
real estate brokers shall not be liable for damages under the provisions of
either Subsection (o) or (p), rather than (l) or (m), or liable for failing
to provide required notice to a purchaser prior to the closing of the
purchase and sale contract or for unintentionally providing a required
notice that is not the correct notice under the circumstances prior to
execution of a binding contract of purchase and sale. Makes conforming and
nonsubstantive changes.   

SECTION 2.Effective date: September 1, 1999.
  Makes application of this Act prospective.

SECTION 3. Emergency clause.