HBA-ALS H.B. 641 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 641 By: Howard Business and Industry 3/25/1999 Introduced BACKGROUND AND PURPOSE Currently, there is no requirement to notify a prospective purchaser of residential property that the property may be subject to future annexation because it is located within a city's extraterritorial jurisdiction. 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 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. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 49.452(b), Water Code, to delete the words "debt service" from the description of the most recent projected rate of tax which is required to appear in the prescribed notice for all districts that is required to be executed by a seller of real property. Adds language requiring a municipal utility district to disclose to the purchaser of residential real property whether the property is located in a municipality's extraterritorial jurisdiction and detailing the results of annexation by the municipality. Requires the disclosure notice provided to the purchaser to also disclose whether the district is located within the corporate boundaries or extraterritorial jurisdiction of a municipality. Makes a conforming change. SECTION 2. Effective date: September 1, 1999. Makes application of this Act prospective. SECTION 3. Emergency clause.