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.