By Howard                                              H.B. No. 641
         76R3586 PAM-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to requiring a municipal utility district to disclose to
 1-3     the purchaser of residential real property whether the property is
 1-4     located in a municipality's extraterritorial jurisdiction.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 49.452(b), Water Code, is amended to read
 1-7     as follows:
 1-8           (b)  The prescribed notice for all districts shall be
 1-9     executed by the seller and shall read as follows:
1-10           "The real property, described below, that you are about to
1-11     purchase is located in the ___________________ District.  The
1-12     district has taxing authority separate from any other taxing
1-13     authority and may, subject to voter approval, issue an unlimited
1-14     amount of bonds and levy an unlimited rate of tax in payment of
1-15     such bonds.  As of this date, the rate of taxes levied by the
1-16     district on real property located in the district is $__________ on
1-17     each $100 of assessed valuation.  If the district has not yet
1-18     levied taxes, the most recent projected rate of [debt service] tax,
1-19     as of this date, is $__________ on each $100 of assessed valuation.
1-20     The total amount of bonds approved by the voters and which have
1-21     been or may, at this date, be issued is $__________, and the
1-22     aggregate initial principal amounts of all bonds issued for one or
1-23     more of the specified facilities of the district and payable in
1-24     whole or in part from property taxes is $__________.
 2-1           "The district has the authority to adopt and impose a standby
 2-2     fee on property in the district that has water, sanitary sewer, or
 2-3     drainage facilities and services available but not connected and
 2-4     which does not have a house, building, or other improvement located
 2-5     thereon and does not substantially utilize the utility capacity
 2-6     available to the property.  The district may exercise the authority
 2-7     without holding an election on the matter.  As of this date, the
 2-8     most recent amount of the standby fee is $__________.  An unpaid
 2-9     standby fee is a personal obligation of the person that owned the
2-10     property at the time of imposition and is secured by a lien on the
2-11     property.  Any person may request a certificate from the district
2-12     stating the amount, if any, of unpaid standby fees on a tract of
2-13     property in the district.
2-14           "The district is located in the extraterritorial jurisdiction
2-15     of the City of ________________.  By law, a district located in the
2-16     extraterritorial jurisdiction of a municipality may be annexed
2-17     without the consent of the district or the voters of the district.
2-18     When a district is  annexed, the district is dissolved.
2-19           "The purpose of this district is to provide water, sewer,
2-20     drainage, or flood control facilities and services within the
2-21     district through the issuance of bonds payable in whole or in part
2-22     from property taxes.  The cost of these utility facilities is not
2-23     included in the purchase price of your property, and these utility
2-24     facilities are owned or to be owned by the district.  The legal
2-25     description of the property you are acquiring is as follows:
2-26     -------------------------------------------------------------------
2-27                                           ______________________ (Date)
 3-1                                           _____________________________
 3-2                                           Signature of Seller
 3-3           PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM
 3-4     IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME.  THE DISTRICT
 3-5     ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER
 3-6     THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE
 3-7     TAX RATES ARE APPROVED BY THE DISTRICT.  PURCHASER IS ADVISED TO
 3-8     CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR
 3-9     PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.
3-10           "The undersigned purchaser hereby acknowledges receipt of the
3-11     foregoing notice at or prior to execution of a binding contract for
3-12     the purchase of the real property described in such notice or at
3-13     closing of purchase of the real property.
3-14     -------------------------------------------------------------------
3-15                                           ______________________ (Date)
3-16                                           _____________________________
3-17                                           Signature of Purchaser
3-18           "(Note:  Correct district name, tax rate, bond amounts, and
3-19     legal description are to be placed in the appropriate space.)
3-20     Except for notices included as an addendum or paragraph of a
3-21     purchase contract, the notice shall be executed by the seller and
3-22     purchaser, as indicated.  If the district does not propose to
3-23     provide one or more of the specified facilities and services, the
3-24     appropriate purpose may be eliminated.  If the district has not yet
3-25     levied taxes, a statement of the district's most recent projected
3-26     rate of [debt service] tax is to be placed in the appropriate
3-27     space.  If the district does not have approval from the commission
 4-1     to adopt and impose a standby fee, the second paragraph of the
 4-2     notice may be deleted.  If the district is located within the
 4-3     corporate boundaries of a municipality, paragraph three of the
 4-4     notice should read as follows:  "The district is located in the
 4-5     City of _________________."  If the district is not located within
 4-6     the corporate boundaries or the extraterritorial jurisdiction of a
 4-7     municipality, paragraph three of the notice may be deleted.  For
 4-8     the purposes of the notice form required to be given to the
 4-9     prospective purchaser prior to execution of a binding contract of
4-10     sale and purchase, a seller and any agent, representative, or
4-11     person acting on the seller's behalf may modify the notice by
4-12     substitution of the words 'January 1, ______' for the words 'this
4-13     date' and place the correct calendar year in the appropriate
4-14     space."
4-15           SECTION 2.  (a)  This Act takes effect September 1, 1999.
4-16           (b)  The change in law made by this Act applies only to a
4-17     transfer of property that occurs on or after the effective date of
4-18     this Act.  For purposes of this section, a transfer of property
4-19     occurs before the effective date of this Act if the contract of
4-20     sale and purchase binding the purchaser to purchase the property is
4-21     executed before that date.
4-22           (c)  Property transferred before the effective date of this
4-23     Act is covered by the law in effect when the property was
4-24     transferred, and the former law is continued in effect for that
4-25     purpose.
4-26           SECTION 3.  The importance of this legislation and the
4-27     crowded condition of the calendars in both houses create an
 5-1     emergency and an imperative public necessity that the
 5-2     constitutional rule requiring bills to be read on three several
 5-3     days in each house be suspended, and this rule is hereby suspended.