By: Brown S.B. No. 1733
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the general powers and authority of water districts;
1-2 providing a penalty.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 49.102, Water Code, is amended by adding
1-5 a new Subsection (i) and redesignating existing Subsection (i) as
1-6 Subsection (j) to read as follows:
1-7 (i) A district, at an election required under Subsection
1-8 (a), may submit to the qualified voters of the district the
1-9 proposition of whether a plan as authorized by Section 49.351
1-10 should be implemented or entered into by the district.
1-11 (j) The provisions of this section shall not be applicable
1-12 to any district exercising the powers of Chapter 375, Local
1-13 Government Code, or any district created by a special Act of the
1-14 legislature that does not require a confirmation election.
1-15 SECTION 2. Section 49.105, Water Code, is amended to read as
1-16 follows:
1-17 Sec. 49.105. VACANCIES. (a) Except as otherwise provided
1-18 in this code, a vacancy [all vacancies] on the board and in other
1-19 offices shall be filled for the unexpired term by appointment of
1-20 the board not later than the 60th day after the date the vacancy
1-21 occurs.
1-22 (b) If the board has not filled a vacancy by appointment
1-23 before the 61st day after the date the vacancy occurs, a petition,
1-24 signed by more than 10 percent of the registered voters of the
2-1 district, requesting the board to fill the vacancy by appointment
2-2 may be presented to the board.
2-3 (c) If the number of directors is reduced to fewer than a
2-4 majority or if a vacancy continues beyond the 90th day after the
2-5 date the vacancy occurs, the vacancy or vacancies shall be filled
2-6 by appointment by the commission if the district is required by
2-7 Section 49.181 to obtain commission approval of its bonds or by the
2-8 county commissioners court if the district was created by the
2-9 county commissioners court, regardless of whether a petition has
2-10 been presented to the board under Subsection (b). An appointed
2-11 director shall serve for the unexpired term of the director he or
2-12 she is replacing.
2-13 (d) [(c)] In the event of a failure to elect one or more
2-14 members of the board of a district resulting from the absence of,
2-15 or failure to vote by, the qualified voters in the district, the
2-16 current members of the board holding the positions not filled at
2-17 such election shall be deemed to have been reelected and shall
2-18 serve an additional term of office.
2-19 SECTION 3. Section 49.155, Water Code, is amended to read as
2-20 follows:
2-21 Sec. 49.155. PAYMENT [REPAYMENT] OF EXPENSES. (a) The
2-22 district may pay out of bond proceeds or other available funds of
2-23 the district all [costs and] expenses reasonable and necessary to
2-24 effect the issuance, sale, and delivery of bonds as determined by
2-25 the board, [necessarily incurred in the organization and operation
2-26 of a district during creation and construction periods] including,
3-1 but not limited to, the following:
3-2 (1) interest during construction [organizational,
3-3 administrative, and operating expenses];
3-4 (2) capitalized interest not to exceed three years'
3-5 interest;
3-6 (3) reasonable and necessary reserve funds not to
3-7 exceed two years' interest;
3-8 (4) interest on funds advanced to the district;
3-9 (5) financial advisor, bond counsel, attorney, and
3-10 other consultant fees;
3-11 (6) paying agent, registrar, and escrow agent fees;
3-12 (7) right-of-way acquisition;
3-13 (8) underwriter's discounts or premiums;
3-14 (9) engineering fees;
3-15 (10) commission and attorney general fees;
3-16 (11) printing costs;
3-17 (12) all organizational, administrative, and operating
3-18 costs during creation and construction periods; and
3-19 (13) the cost of investigation and making plans[;]
3-20 [(3) the cost of the engineer's report;]
3-21 [(4) legal fees; and]
3-22 [(5) any other incidental expenses].
3-23 (b) For purposes of this section, construction periods shall
3-24 mean any periods during which the district is constructing its
3-25 facilities or there is construction by third parties of above
3-26 ground improvements within the district, but in no event longer
4-1 than five years.
4-2 (c) The district may reimburse any person for money advanced
4-3 for the purposes in Subsection (a) and may be charged interest on
4-4 such funds.
4-5 (d) These payments may be made from money obtained from the
4-6 issuance of notes or the sale of bonds issued by the district or
4-7 out of maintenance taxes or other revenues of the district.
4-8 SECTION 4. Section 49.211, Water Code, is amended by adding
4-9 Subsection (e) to read as follows:
4-10 (e) A district that is authorized by law to engage in
4-11 drainage or flood control activities may include among the
4-12 district's land, works, improvements, facilities, plants,
4-13 equipment, and appliances the following areas and projects
4-14 associated with drainage or flood control projects of the district:
4-15 (1) stormwater retention or detention lands and
4-16 projects;
4-17 (2) sedimentation basins;
4-18 (3) floodplain and wetlands mitigation lands and
4-19 projects;
4-20 (4) habitat reconstruction or restoration lands and
4-21 projects; and
4-22 (5) any temporary, permanent, constant, or variable
4-23 level impoundments of water related to projects in this subsection.
4-24 SECTION 5. Section 49.212, Water Code, is amended by
4-25 amending Subsection (a) and adding Subsection (e) to read as
4-26 follows:
5-1 (a) A district may adopt and enforce all necessary charges,
5-2 mandatory fees, or rentals, in addition to taxes, for providing or
5-3 making available any district facility or service, including
5-4 fire-fighting activities provided under Section 49.351.
5-5 (e) Chapter 2007, Government Code, does not apply to a tax
5-6 levied, a standby fee imposed, or a charge, fee, or rental adopted
5-7 or enforced by a district under this chapter, any other chapter of
5-8 this code, or Chapter 395, Local Government Code.
5-9 SECTION 6. Section 49.226, Water Code, is amended to read as
5-10 follows:
5-11 Sec. 49.226. SALE OR EXCHANGE OF REAL [SURPLUS LAND] OR
5-12 PERSONAL PROPERTY. (a) Any personal property valued at more than
5-13 $300 or any land or interest in land owned by the district which is
5-14 found by the board to be surplus and is not needed by the district
5-15 may be sold under order of the board either by public or private
5-16 sale, or the land, interest in land, or personal property may be
5-17 exchanged for other land, interest in land, or personal property
5-18 needed by the district. Except as provided in Subsection (b),
5-19 land, interest in land, or personal property must be exchanged for
5-20 like fair market value, which value may be determined by the
5-21 district.
5-22 (b) Any property dedicated to or acquired by the district
5-23 without expending district funds may be abandoned or released to
5-24 the original grantor, the grantor's heirs, assigns, executors, or
5-25 successors upon terms and conditions deemed necessary or
5-26 advantageous to the district and without receiving compensation for
6-1 such abandonment or release. District property may also be
6-2 abandoned, released, exchanged, or transferred to another district,
6-3 municipality, county, countywide agency, or authority upon terms
6-4 and conditions deemed necessary or advantageous to the district.
6-5 Narrow strips of property resulting from boundary or surveying
6-6 conflicts or similar causes, or from insubstantial encroachments by
6-7 abutting property owners, or property of larger configuration that
6-8 has been subject to encroachments by abutting property owners for
6-9 more than 25 years may be abandoned, released, exchanged, or
6-10 transferred to such abutting owners upon terms and conditions
6-11 deemed necessary or advantageous to the district. Chapter 272,
6-12 Local Government Code, shall not apply to this section
6-13 [subsection].
6-14 (c) Before either a public or a private sale of real
6-15 property [not required by the district], the district shall give
6-16 notice of the intent to sell by publishing notice once a week for
6-17 two consecutive weeks in one or more newspapers with general
6-18 circulation in the district.
6-19 (d) If the district has outstanding bonds secured by a
6-20 pledge of tax revenues, the proceeds of the sale of property [not
6-21 required by the district] shall be applied to retire outstanding
6-22 bonds of the district [when required by the district's applicable
6-23 bond resolutions].
6-24 (e) If the district does not have any outstanding bonds, the
6-25 proceeds derived from the sale of real or [the] personal property
6-26 [or land not required by the district] may be used for any lawful
7-1 purpose.
7-2 SECTION 7. Subchapter H, Chapter 49, Water Code, is amended
7-3 by adding Section 49.233 to read as follows:
7-4 Sec. 49.233. PROHIBITION OF CERTAIN PRIVATE ON-SITE
7-5 FACILITIES. (a) A district that operates a wastewater collection
7-6 system to serve land within its boundaries by rule may prohibit the
7-7 installation of private on-site wastewater holding or treatment
7-8 facilities on land within the district.
7-9 (b) A district that prohibits installation as described by
7-10 Subsection (a) shall agree to reimburse a particular tract the
7-11 costs of connecting the tract to the district's wastewater
7-12 collection system if the distance along public rights-of-way or
7-13 utility easements from the nearest point of the district's
7-14 wastewater collection system to the boundary line of the particular
7-15 tract requiring wastewater collection services is 1,000 feet or
7-16 more, subject to commission rules regarding reimbursement of those
7-17 costs.
7-18 SECTION 8. Subsection (c), Section 49.271, Water Code, is
7-19 amended to read as follows:
7-20 (c) The district may adopt minimum criteria for the
7-21 qualifications of bidders on its construction contracts and for
7-22 sureties issuing payment and performance bonds. For construction
7-23 contracts over $25,000, the district shall require a person who
7-24 bids to submit a certified or cashier's check on a responsible bank
7-25 in the state equal to at least two percent of the total amount of
7-26 the bid, or a bid bond of at least two percent of the total amount
8-1 of the bid issued by a surety legally authorized to do business in
8-2 this state, as a good faith deposit to ensure execution of the
8-3 contract. If the successful bidder fails or refuses to enter into
8-4 a proper contract with the district, or fails or refuses to furnish
8-5 the payment and performance bonds [bond] required by law, the
8-6 bidder forfeits the deposit. The payment, performance, and bid
8-7 bonding requirements of this subsection do not apply to contracts
8-8 for the purchase of equipment, materials, and machinery not
8-9 otherwise incorporated into a construction project.
8-10 SECTION 9. Subsections (i) and (j), Section 49.273, Water
8-11 Code, are amended to read as follows:
8-12 (i) If changes in plans or specifications are necessary
8-13 after the performance of the contract is begun or if it is
8-14 necessary to decrease or increase the quantity of the work to be
8-15 performed or of the materials, equipment, or supplies to be
8-16 furnished, the board may approve change orders making the changes.
8-17 The original contract price may not be increased by more than 10
8-18 percent of the aggregate of those change orders. Additional change
8-19 orders [Change orders to contracts] may be issued only as a result
8-20 of unanticipated conditions encountered during construction,
8-21 repair, or renovation or changes in regulatory criteria or to
8-22 facilitate project coordination with other political entities.
8-23 (j) The board is not required to advertise or seek
8-24 competitive bids for the repair of district facilities if the scope
8-25 or extent of the repair work cannot be readily ascertained or if
8-26 the nature of the repair work does not readily lend itself to
9-1 competitive bidding [by the district's operator if the cost of the
9-2 repair is less than or equal to the advertising requirements of
9-3 this section].
9-4 SECTION 10. Subchapter I, Chapter 49, Water Code, is amended
9-5 by adding Section 49.279 to read as follows:
9-6 Sec. 49.279. PREVAILING WAGE RATES. In addition to the
9-7 alternative procedures provided by Section 2258.022, Government
9-8 Code:
9-9 (1) a district located wholly or partially within one
9-10 or more municipalities or within the extraterritorial jurisdiction
9-11 of one or more municipalities may establish its prevailing wage
9-12 rate for public works by adopting the prevailing wage rate of:
9-13 (A) one of the municipalities; or
9-14 (B) the county in which the district is located;
9-15 and
9-16 (2) a district not located wholly or partially within
9-17 the extraterritorial jurisdiction of any municipality may establish
9-18 the district's prevailing wage rate by adopting the wage rate of
9-19 the county in which the district is located.
9-20 SECTION 11. Subsection (a), Section 49.304, Water Code, is
9-21 amended to read as follows:
9-22 (a) If the board determines that an exclusion hearing should
9-23 be held as provided in Section 49.303(a) or (c), or if a written
9-24 petition requesting an exclusion hearing is filed with the
9-25 secretary of the board as provided in Section 49.303(b) [49.303],
9-26 the board shall give notice of the time and place of a hearing to
10-1 announce its own conclusions relating to land or other property to
10-2 be excluded and to receive petitions for exclusion of land or other
10-3 property.
10-4 SECTION 12. Subchapter J, Chapter 49, Water Code, is amended
10-5 by adding Section 49.315 to read as follows:
10-6 Sec. 49.315. ADDING AND EXCLUDING LAND BEFORE CONFIRMATION.
10-7 (a) A district may add or exclude land in accordance with this
10-8 subchapter:
10-9 (1) after a district is created by order of the
10-10 commission or another governmental entity or by special Act of the
10-11 legislature; and
10-12 (2) before an election is held as required by Section
10-13 49.102.
10-14 (b) If land is added or excluded as provided by this
10-15 section, the election to confirm the district required by Section
10-16 49.102 shall be to confirm the district as modified.
10-17 SECTION 13. Section 49.327, Water Code, is amended to read
10-18 as follows:
10-19 Sec. 49.327. ASSETS ESCHEAT TO STATE. (a) Upon the
10-20 dissolution of a district by the commission, all assets of the
10-21 district shall escheat to the State of Texas. The assets shall be
10-22 administered by the comptroller and shall be disposed of in the
10-23 manner provided by Chapter 74, Property Code.
10-24 (b) Title 6, Property Code, does not apply to any personal
10-25 property held by a district that has not been dissolved by order of
10-26 the commission.
11-1 SECTION 14. Subsections (a), (b), (c), and (g) through (j),
11-2 Section 49.351, Water Code, are amended to read as follows:
11-3 (a) A district providing potable water or sewer service to
11-4 household users may establish, operate, and maintain a fire
11-5 department to perform all fire-fighting activities within the
11-6 district as provided in this subchapter and may issue bonds or
11-7 impose a mandatory fee, with voter approval, [bonds] for financing
11-8 a plan approved in accordance with this section, [the establishment
11-9 of the fire department] including the construction and purchase of
11-10 necessary buildings, facilities, land, and equipment and the
11-11 provision of an adequate water supply.
11-12 (b) After approval of the district electors of a plan to
11-13 operate, [or] jointly operate, or jointly fund the operation of a
11-14 fire department and after complying with Subsections (g), (h), and
11-15 (i), the district or districts shall provide an adequate system and
11-16 water supply for fire-fighting purposes, may purchase necessary
11-17 land, may construct and purchase necessary buildings, facilities,
11-18 and equipment, and may employ or contract with a fire department to
11-19 employ all necessary personnel including supervisory personnel to
11-20 operate the fire department.
11-21 (c) Bonds [issued] for financing a plan approved in
11-22 accordance with this section [establishment of the fire department]
11-23 shall be authorized and may be issued, and a district shall be
11-24 authorized to levy a tax to pay the principal of and interest on
11-25 such bonds, as provided by law for authorization and issuance of
11-26 other bonds of the district.
12-1 (g) A district or districts proposing to act jointly shall
12-2 develop a detailed plan for the establishment, operation, and
12-3 maintenance of the proposed department, including a detailed
12-4 presentation of all financial requirements. If a district is
12-5 entering into a contract under Subsection (e), the district shall
12-6 develop a plan that describes [in detail] the contract and
12-7 [facilities and equipment to be devoted to service to the district
12-8 and all proposals for providing the service and that] includes a
12-9 presentation of the financial requirements under the contract. A
12-10 plan required by this subsection may be included in a plan or
12-11 report otherwise required by this title for the creation of a
12-12 district or may be submitted to the commission for approval any
12-13 time after the creation of the district. [Before adoption of a
12-14 plan and any contract by the district, the board shall hold a
12-15 hearing at which any person residing in the district may present
12-16 testimony for and against the proposed plan and any proposed
12-17 contract. Notice of the hearing and the place at which the plan
12-18 and any contract may be examined shall be posted in two public
12-19 places within the district at least 10 days before the date of the
12-20 hearing.]
12-21 (h) If no plan was approved by the commission at the time of
12-22 the district's creation, after [After] adoption of the plan and any
12-23 contract by the board, the plan and financial presentation,
12-24 together with any contract and a written report in a form
12-25 prescribed by the executive director describing existing fire
12-26 departments and fire-fighting services available within 25 miles of
13-1 the boundaries of the district, shall be submitted to the executive
13-2 director for consideration by the commission under rules adopted by
13-3 the commission. [Before approval or disapproval, the commission
13-4 shall hold a hearing. Notice of the hearing before the commission
13-5 shall be posted by the board in at least two public places in the
13-6 district at least five days before the hearing.] Before the
13-7 commission approves the application, it must find that it is
13-8 economically feasible for the district to implement the plan and
13-9 meet the provisions of any contract and shall take into
13-10 consideration in giving its approval the general financial
13-11 condition of the district and the economic feasibility of the
13-12 district carrying out the plan or meeting the obligations of the
13-13 contract. A plan approved by the commission as part of the
13-14 creation of a district does not require further commission approval
13-15 unless the district materially alters the plan.
13-16 (i) After approval of a plan by the commission, the district
13-17 shall submit to the electors of the district at the election to
13-18 approve bonds or to impose a mandatory fee for financing the plan,
13-19 or if no bonds or fees are to be approved, at an election called
13-20 for approval of the plan, which may be held in conjunction with an
13-21 election required by Section 49.102, the proposition of whether or
13-22 not the plan should be implemented or entered into by the district.
13-23 The ballots at the election shall be printed, as applicable, to
13-24 provide for voting for or against the proposition: "The
13-25 implementation of the plan for (operation/joint operation) of a
13-26 fire department"; or "The plan and contract to provide
14-1 fire-fighting services for the district."
14-2 (j) [No funds of the district may be used to establish a
14-3 fire department, to enter into joint operation of a fire
14-4 department, or to contract for fire-fighting services without the
14-5 approval of a plan by the electors as provided in this section.
14-6 However, the district may use available funds for preparation of a
14-7 plan and any contract.] The operation of a fire department or
14-8 provision of fire-fighting services is an essential public
14-9 necessity, and a district may discontinue any and all services,
14-10 including water and sewer service, to any person who fails to
14-11 timely pay fire department service fees or any other assessment
14-12 adopted by the district to support the fire department or the
14-13 provision of fire-fighting services.
14-14 SECTION 15. Section 49.452, Water Code, is amended to read
14-15 as follows:
14-16 Sec. 49.452. NOTICE TO PURCHASERS. (a)(1) Any person who
14-17 proposes to sell or convey real property located in a district
14-18 created under this title or by a special Act of the legislature
14-19 that is providing or proposing to provide, as the district's
14-20 principal function, water, sanitary sewer, drainage, and flood
14-21 control or protection facilities or services, or any of these
14-22 facilities or services that have been financed or are proposed to
14-23 be financed with bonds of the district payable in whole or part
14-24 from taxes of the district, or by imposition of a standby fee, if
14-25 any, to household or commercial users, other than agricultural,
14-26 irrigation, or industrial users, and which district includes less
15-1 than all the territory in at least one county and which, if located
15-2 within the corporate area of a city, includes less than 75 percent
15-3 of the incorporated area of the city or which is located outside
15-4 the corporate area of a city in whole or in substantial part, must
15-5 first give to the purchaser the written notice provided in this
15-6 section.
15-7 (2) The provisions of this section shall not be
15-8 applicable to:
15-9 (A) transfers of title under any type of lien
15-10 foreclosure;
15-11 (B) transfers of title by deed in cancellation
15-12 of indebtedness secured by a lien upon the property conveyed; [or]
15-13 (C) transfers of title by reason of a will or
15-14 probate proceedings; or
15-15 (D) transfers of title to a governmental entity.
15-16 (b) The prescribed notice for [all] districts located in
15-17 whole or in part in the extraterritorial jurisdiction of one or
15-18 more home-rule municipalities, but not within the corporate limits
15-19 of a municipality, shall be executed by the seller and shall read
15-20 as follows:
15-21 "The real property, described below, that you are about to
15-22 purchase is located in the ___________________ District. The
15-23 district has taxing authority separate from any other taxing
15-24 authority and may, subject to voter approval, issue an unlimited
15-25 amount of bonds and levy an unlimited rate of tax in payment of
15-26 such bonds. As of this date, the rate of taxes levied by the
16-1 district on real property located in the district is $__________ on
16-2 each $100 of assessed valuation. If the district has not yet
16-3 levied taxes, the most recent projected rate of [debt service] tax,
16-4 as of this date, is $__________ on each $100 of assessed valuation.
16-5 The total amount of bonds approved by the voters and which have
16-6 been or may, at this date, be issued (excluding refunding bonds and
16-7 any bonds or portion of bonds issued payable solely from revenues
16-8 received or expected to be received under a contract with a
16-9 governmental entity) is $__________, and the aggregate initial
16-10 principal amounts of all bonds issued for one or more of the
16-11 specified facilities of the district and payable in whole or in
16-12 part from property taxes (excluding refunding bonds and any bonds
16-13 or portion of bonds issued payable solely from revenues received or
16-14 expected to be received under a contract with a governmental
16-15 entity) is $__________.
16-16 "The district has the authority to adopt and impose a standby
16-17 fee on property in the district that has water, sanitary sewer, or
16-18 drainage facilities and services available but not connected and
16-19 which does not have a house, building, or other improvement located
16-20 thereon and does not substantially utilize the utility capacity
16-21 available to the property. The district may exercise the authority
16-22 without holding an election on the matter. As of this date, the
16-23 most recent amount of the standby fee is $__________. An unpaid
16-24 standby fee is a personal obligation of the person that owned the
16-25 property at the time of imposition and is secured by a lien on the
16-26 property. Any person may request a certificate from the district
17-1 stating the amount, if any, of unpaid standby fees on a tract of
17-2 property in the district.
17-3 "The district is located in whole or in part in the
17-4 extraterritorial jurisdiction ('ETJ') of the City(s) of __________.
17-5 Generally, a district located entirely within the ETJ of one or
17-6 more cities may be annexed by the city or cities without the
17-7 consent of the district or the voters of the district and the
17-8 district may be dissolved after annexation occurs, subject to
17-9 applicable law.
17-10 "The purpose of this district is to provide water, sewer,
17-11 drainage, or flood control facilities and services within the
17-12 district through the issuance of bonds payable in whole or in part
17-13 from property taxes. The cost of these utility facilities is not
17-14 included in the purchase price of your property, and these utility
17-15 facilities are owned or to be owned by the district. The legal
17-16 description of the property you are acquiring is as follows:
17-17 ___________________________________________________________________
17-18 ____________________ (Date)
17-19 ___________________________
17-20 Signature of Seller
17-21 PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM
17-22 IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME. THE DISTRICT
17-23 ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER
17-24 THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE
17-25 TAX RATES ARE APPROVED BY THE DISTRICT. PURCHASER IS ADVISED TO
17-26 CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR
18-1 PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.
18-2 "The undersigned purchaser hereby acknowledges receipt of the
18-3 foregoing notice at or prior to execution of a binding contract for
18-4 the purchase of the real property described in such notice or at
18-5 closing of purchase of the real property.
18-6 ___________________________________________________________________
18-7 ______________________ (Date)
18-8 _____________________________
18-9 Signature of Purchaser
18-10 "(Note: Correct district name, tax rate, bond amounts, and
18-11 legal description are to be placed in the appropriate space.)
18-12 Except for notices included as an addendum or paragraph of a
18-13 purchase contract, the notice shall be executed by the seller and
18-14 purchaser, as indicated. If the district does not propose to
18-15 provide one or more of the specified facilities and services, the
18-16 appropriate purpose may be eliminated. If the district has not yet
18-17 levied taxes, a statement of the district's most recent projected
18-18 rate of [debt service] tax is to be placed in the appropriate
18-19 space. If the district does not have approval from the commission
18-20 to adopt and impose a standby fee, the second paragraph of the
18-21 notice may be deleted. For the purposes of the notice form
18-22 required to be given to the prospective purchaser prior to
18-23 execution of a binding contract of sale and purchase, a seller and
18-24 any agent, representative, or person acting on the seller's behalf
18-25 may modify the notice by substitution of the words 'January 1,
18-26 ______' for the words 'this date' and place the correct calendar
19-1 year in the appropriate space."
19-2 (c) The prescribed notice for districts located in whole or
19-3 in part within the corporate limits of a municipality shall be
19-4 executed by the seller and shall read as follows:
19-5 "The real property, described below, that you are about to
19-6 purchase is located in the _____ District. The district has taxing
19-7 authority separate from any other taxing authority and may, subject
19-8 to voter approval, issue an unlimited amount of bonds and levy an
19-9 unlimited rate of tax in payment of such bonds. As of this date,
19-10 the rate of taxes levied by the district on real property located
19-11 in the district is $_______ on each $100 of assessed valuation. If
19-12 the district has not yet levied taxes, the most recent projected
19-13 rate of tax, as of this date, is $_______ on each $100 of assessed
19-14 valuation. The total amount of bonds approved by the voters and
19-15 which have been or may, at this date, be issued (excluding
19-16 refunding bonds and any bonds or portion of bonds issued payable
19-17 solely from revenues received or expected to be received under a
19-18 contract with a governmental entity) is $_________, and the
19-19 aggregate initial principal amounts of all bonds issued for one or
19-20 more of the specified facilities of the district and payable in
19-21 whole or in part from property taxes (excluding refunding bonds and
19-22 any bonds or portion of bonds issued payable solely from revenues
19-23 received or expected to be received under a contract with a
19-24 governmental entity) is $________.
19-25 "The district has the authority to adopt and impose a standby
19-26 fee on property in the district that has water, sanitary sewer, or
20-1 drainage facilities and services available but not connected and
20-2 which does not have a house, building, or other improvement located
20-3 thereon and does not substantially utilize the utility capacity
20-4 available to the property. The district may exercise the authority
20-5 without holding an election on the matter. As of this date, the
20-6 most recent amount of the standby fee is $________. An unpaid
20-7 standby fee is a personal obligation of the person that owned the
20-8 property at the time of imposition and is secured by a lien on the
20-9 property. Any person may request a certificate from the district
20-10 stating the amount, if any, of unpaid standby fees on a tract of
20-11 property in the district.
20-12 "The district is located in whole or in part within the
20-13 City(s) of _______________. District taxpayers are subject to the
20-14 taxes of the city(s) in addition to any district taxes during the
20-15 life of the district. Generally, an in-city district can be
20-16 dissolved by city ordinance without the consent of the district or
20-17 the voters of the district, subject to applicable laws.
20-18 "The purpose of this district is to provide water, sewer,
20-19 drainage, or flood control facilities and services within the
20-20 district through the issuance of bonds payable in whole or in part
20-21 from property taxes. The cost of these utility facilities is not
20-22 included in the purchase price of your property, and these utility
20-23 facilities are owned or to be owned by the district. The legal
20-24 description of the property you are acquiring is as follows:
20-25 ___________________________________________________________________
20-26 _______________________(Date)
21-1 _____________________________
21-2 Signature of Seller
21-3 PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM
21-4 IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME. THE DISTRICT
21-5 ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER
21-6 THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE
21-7 TAX RATES ARE APPROVED BY THE DISTRICT. PURCHASER IS ADVISED TO
21-8 CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR
21-9 PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.
21-10 "The undersigned purchaser hereby acknowledges receipt of the
21-11 foregoing notice at or prior to execution of a binding contract for
21-12 the purchase of the real property described in such notice or at
21-13 closing of purchase of the real property.
21-14 ___________________________________________________________________
21-15 _______________________(Date)
21-16 _____________________________
21-17 Signature of Purchaser
21-18 "(Note: Correct district name, tax rate, bond amounts, and
21-19 legal description are to be placed in the appropriate space.)
21-20 Except for notices included as an addendum or paragraph of a
21-21 purchase contract, the notice shall be executed by the seller and
21-22 purchaser, as indicated. If the district does not propose to
21-23 provide one or more of the specified facilities and services, the
21-24 appropriate purpose may be eliminated. If the district has not yet
21-25 levied taxes, a statement of the district's most recent projected
21-26 rate of tax is to be placed in the appropriate space. If the
22-1 district does not have approval from the commission to adopt and
22-2 impose a standby fee, the second paragraph of the notice may be
22-3 deleted. For the purposes of the notice form required to be given
22-4 to the prospective purchaser before execution of a binding contract
22-5 of sale and purchase, a seller and any agent, representative, or
22-6 person acting on the seller's behalf may modify the notice by
22-7 substitution of the words 'January 1, _____' for the words 'this
22-8 date' and place the correct calendar year in the appropriate
22-9 space."
22-10 (d) The prescribed notice for districts not located in whole
22-11 or in part within the corporate limits of a municipality, or in
22-12 whole or in part in the extraterritorial jurisdiction of one or
22-13 more home-rule municipalities, shall be executed by the seller and
22-14 shall read as follows:
22-15 "The real property, described below, that you are about to
22-16 purchase is located in the _____ District. The district has taxing
22-17 authority separate from any other taxing authority and may, subject
22-18 to voter approval, issue an unlimited amount of bonds and levy an
22-19 unlimited rate of tax in payment of such bonds. As of this date,
22-20 the rate of taxes levied by the district on real property located
22-21 in the district is $_______ on each $100 of assessed valuation. If
22-22 the district has not yet levied taxes, the most recent projected
22-23 rate of tax, as of this date, is $_______ on each $100 of assessed
22-24 valuation. The total amount of bonds approved by the voters and
22-25 which have been or may, at this date, be issued (excluding
22-26 refunding bonds and any bonds or portion of bonds issued payable
23-1 solely from revenues received or expected to be received under a
23-2 contract with a governmental entity) is $_________, and the
23-3 aggregate initial principal amounts of all bonds issued for one or
23-4 more of the specified facilities of the district and payable in
23-5 whole or in part from property taxes (excluding refunding bonds and
23-6 any bonds or portion of bonds issued payable solely from revenues
23-7 received or expected to be received under a contract with a
23-8 governmental entity) is $________.
23-9 "The district has the authority to adopt and impose a standby
23-10 fee on property in the district that has water, sanitary sewer, or
23-11 drainage facilities and services available but not connected and
23-12 which does not have a house, building, or other improvement located
23-13 thereon and does not substantially utilize the utility capacity
23-14 available to the property. The district may exercise the authority
23-15 without holding an election on the matter. As of this date, the
23-16 most recent amount of the standby fee is $________. An unpaid
23-17 standby fee is a personal obligation of the person that owned the
23-18 property at the time of imposition and is secured by a lien on the
23-19 property. Any person may request a certificate from the district
23-20 stating the amount, if any, of unpaid standby fees on a tract of
23-21 property in the district.
23-22 "The purpose of this district is to provide water, sewer,
23-23 drainage, or flood control facilities and services within the
23-24 district through the issuance of bonds payable in whole or in part
23-25 from property taxes. The cost of these utility facilities is not
23-26 included in the purchase price of your property, and these utility
24-1 facilities are owned or to be owned by the district. The legal
24-2 description of the property you are acquiring is as follows:
24-3 ___________________________________________________________________
24-4 _______________________(Date)
24-5 _____________________________
24-6 Signature of Seller
24-7 PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM
24-8 IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME. THE DISTRICT
24-9 ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER
24-10 THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE
24-11 TAX RATES ARE APPROVED BY THE DISTRICT. PURCHASER IS ADVISED TO
24-12 CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR
24-13 PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.
24-14 "The undersigned purchaser hereby acknowledges receipt of the
24-15 foregoing notice at or prior to execution of a binding contract for
24-16 the purchase of the real property described in such notice or at
24-17 closing of purchase of the real property.
24-18 ___________________________________________________________________
24-19 _______________________(Date)
24-20 _____________________________
24-21 Signature of Purchaser
24-22 "(Note: Correct district name, tax rate, bond amounts, and
24-23 legal description are to be placed in the appropriate space.)
24-24 Except for notices included as an addendum or paragraph of a
24-25 purchase contract, the notice shall be executed by the seller and
24-26 purchaser, as indicated. If the district does not propose to
25-1 provide one or more of the specified facilities and services, the
25-2 appropriate purpose may be eliminated. If the district has not yet
25-3 levied taxes, a statement of the district's most recent projected
25-4 rate of tax is to be placed in the appropriate space. If the
25-5 district does not have approval from the commission to adopt and
25-6 impose a standby fee, the second paragraph of the notice may be
25-7 deleted. For the purposes of the notice form required to be given
25-8 to the prospective purchaser prior to execution of a binding
25-9 contract of sale and purchase, a seller and any agent,
25-10 representative, or person acting on the seller's behalf may modify
25-11 the notice by substitution of the words 'January 1, _____' for the
25-12 words 'this date' and place the correct calendar year in the
25-13 appropriate space."
25-14 (e) If the law regarding annexation or district dissolution
25-15 is changed, causing inaccuracies in the content of the notices as
25-16 provided by this section, the district shall revise the content of
25-17 the notice to accurately reflect the current law.
25-18 (f) The notice required by this section shall be given to
25-19 the prospective purchaser prior to execution of a binding contract
25-20 of sale and purchase either separately or as an addendum or
25-21 paragraph of a purchase contract. In the event a contract of
25-22 purchase and sale is entered into without the seller providing the
25-23 notice required by this subsection, the purchaser shall be entitled
25-24 to terminate the contract. If, however, the seller furnishes the
25-25 required notice at or prior to closing the purchase and sale
25-26 contract and the purchaser elects to close even though such notice
26-1 was not timely furnished prior to execution of the contract, it
26-2 shall be conclusively presumed that the purchaser has waived all
26-3 rights to terminate the contract and recover damages or other
26-4 remedies or rights under the provisions of this section.
26-5 Notwithstanding any provision of this subchapter to the contrary,
26-6 all sellers, title companies, and examining attorneys, and any
26-7 agent, representative, or person acting on their behalf, shall not
26-8 be liable for damages under the provisions of either Subsection (o)
26-9 [(l)] or (p) [(m)] or liable for any other damages to any person
26-10 for failure to provide the notice required by this section to a
26-11 purchaser prior to execution of a binding contract of a purchase
26-12 and sale when the district has not filed the information form and
26-13 map or plat as required under Section 49.455.
26-14 (g) [(d)] The purchaser shall sign the notice or purchase
26-15 contract including such notice to evidence the receipt of notice.
26-16 (h) [(e)] At the closing of purchase and sale, a separate
26-17 copy of such notice with current information shall be executed by
26-18 the seller and purchaser, acknowledged, and thereafter recorded in
26-19 the deed records of the county in which the property is located.
26-20 For the purposes of this section, all sellers, title companies, and
26-21 examining attorneys, and any agent, representative, or person
26-22 acting on their behalf, shall be entitled to rely on the accuracy
26-23 of the information form and map or plat as last filed by each
26-24 district under Section 49.455 or the information contained in or
26-25 shown on the notice form issued by the district under Section
26-26 49.453 in completing the notice form to be executed by the seller
27-1 and purchaser at the closing of purchase and sale. Any information
27-2 taken from the information form or map or plat as last filed by
27-3 each district and the information contained in or shown on the
27-4 notice form issued by the district under Section 49.453 shall be,
27-5 for purposes of this section, conclusively presumed as a matter of
27-6 law to be correct. All subsequent sellers, purchasers, title
27-7 insurance companies, examining attorneys, and lienholders shall be
27-8 entitled to rely upon the information form and map or plat filed by
27-9 the district or the notice form issued by the district under
27-10 Section 49.453.
27-11 (i) [(f)] For the purposes of this section, an executory
27-12 contract of purchase and sale having a performance period of more
27-13 than six months shall be considered a sale under Subsection (a).
27-14 (j) [(g)] For the purposes of the notice form to be given to
27-15 the prospective purchaser prior to execution of a binding contract
27-16 of sale and purchase, a seller and any agent, representative, or
27-17 person acting in the seller's behalf may modify the notice by
27-18 substitution of the words "January 1, ____" for the words "this
27-19 date" and place the correct calendar year in the appropriate space.
27-20 All sellers, and all persons completing the prescribed notice in
27-21 the sellers' behalf, shall be entitled to rely on the information
27-22 contained in or shown on the information form and map or plat filed
27-23 of record by the district under Section 49.455 in completing the
27-24 prescribed form to be given to the prospective purchaser prior to
27-25 execution of a binding contract of sale and purchase. Except as
27-26 otherwise provided in Subsection (h) [(e)], any information taken
28-1 from the information form or map or plat filed of record by the
28-2 district in effect as of January 1 of each year shall be, for
28-3 purposes of the notice to be given to the prospective purchaser
28-4 prior to execution of a binding contract of sale and purchase,
28-5 conclusively presumed as a matter of law to be correct for the
28-6 period January 1 through December 31 of such calendar year. A
28-7 seller and any persons completing the prescribed notice in the
28-8 seller's behalf may provide more recent information, if available,
28-9 than the information contained in or shown on the information form
28-10 and map or plat filed of record by the district under Section
28-11 49.455 in effect as of January 1 of each year in completing the
28-12 prescribed form to be given to the purchaser prior to execution of
28-13 a binding contract of sale and purchase. Nothing contained in the
28-14 preceding sentence shall be construed to create an affirmative duty
28-15 on the part of a seller or any persons completing the prescribed
28-16 notice in the seller's behalf to provide more recent information
28-17 than the information taken from the information form and map or
28-18 plat filed of record by the district as of January 1 of each year
28-19 in completing the prescribed notice to be given to the purchaser
28-20 prior to execution of a binding contract of sale and purchase. All
28-21 subsequent sellers, purchasers, title insurance companies,
28-22 examining attorneys, and lienholders shall be entitled to rely upon
28-23 the information form and map or plat filed by the district.
28-24 (k) [(h)] If such notice is given at closing as provided in
28-25 Subsection (h) [(e)], a purchaser, or the purchaser's heirs,
28-26 successors, or assigns, shall not be entitled to maintain any
29-1 action for damages or maintain any action against a seller, title
29-2 insurance company, or lienholder, or any agent, representative, or
29-3 person acting in their behalf, by reason of use by the seller of
29-4 the information filed for record by the district or reliance by the
29-5 seller on the filed plat and filed legal description of the
29-6 district in determining whether the property to be sold and
29-7 purchased is within the district. No action may be maintained
29-8 against any title company for failure to disclose the inclusion of
29-9 the described real property within a district when the district has
29-10 not filed for record the information form, map, or plat with the
29-11 clerk of the county or counties in which the district is located.
29-12 (l) [(i)] Any purchaser who purchases any real property in a
29-13 district and who thereafter sells or conveys the same shall on
29-14 closing of such subsequent sale be conclusively considered as
29-15 having waived any prior right to damages under this section.
29-16 (m) [(j)] It is the express intent of this section that all
29-17 sellers, title insurance companies, examining attorneys, vendors of
29-18 property and tax information, real estate brokers, and lienholders,
29-19 and any agent, representative, or person acting on their behalf,
29-20 shall be entitled to rely on the accuracy of the information form
29-21 and map or plat as last filed by each district or the information
29-22 contained in or shown on the notice form issued by the district
29-23 under Section 49.453, or for the purposes of the notice to be given
29-24 the purchaser prior to execution of a binding contract of sale and
29-25 purchase the information contained in or shown on the information
29-26 form and map or plat filed of record by the district in effect as
30-1 of January 1 of each year for the period January 1 through December
30-2 31 of such calendar year.
30-3 (n) [(k)] Except as otherwise provided in Subsection (f)
30-4 [(c)], if any sale or conveyance of real property within a district
30-5 is not made in compliance with the provisions of this section, the
30-6 purchaser may institute a suit for damages under the provisions of
30-7 either Subsection (o) [(l)] or (p) [(m)].
30-8 (o) [(l)] A purchaser of real property covered by the
30-9 provisions of this section, if the sale or conveyance of the
30-10 property is not made in compliance with this section, may institute
30-11 a suit for damages in the amount of all costs relative to the
30-12 purchase of the property plus interest and reasonable attorney's
30-13 fees. The suit for damages may be instituted jointly or severally
30-14 against the person, firm, corporation, partnership, organization,
30-15 business trust, estate, trust, association, or other legal entity
30-16 that sold or conveyed the property to the purchaser. Following the
30-17 recovery of damages under this subsection, the amount of the
30-18 damages shall first be paid to satisfy all unpaid obligations on
30-19 each outstanding lien or liens on the property and the remainder of
30-20 the damage amount shall be paid to the purchaser. On payment of
30-21 all damages respectively to the lienholders and purchaser, the
30-22 purchaser shall reconvey the property to the seller.
30-23 (p) [(m)] A purchaser of real property covered by the
30-24 provisions of this section, if the sale or conveyance of the
30-25 property is not made in compliance with this section, may institute
30-26 a suit for damages in an amount not to exceed $5,000, plus
31-1 reasonable attorney's fees.
31-2 (q) [(n)] A purchaser is not entitled to recover damages
31-3 under both Subsections (o) [(l)] and (p) [(m)], and entry of a
31-4 final decision awarding damages to the purchaser under either
31-5 Subsection (o) [(l)] or (p) [(m)] shall preclude the purchaser from
31-6 recovering damages under the other subsection. Notwithstanding any
31-7 part or provision of the general or special laws or the common law
31-8 of the state to the contrary, the relief provided under Subsections
31-9 (o) [(l)] and (p) [(m)] shall be the exclusive remedies for a
31-10 purchaser aggrieved by the seller's failure to comply with the
31-11 provisions of this section. Any action for damages shall not,
31-12 however, apply to, affect, alter, or impair the validity of any
31-13 existing vendor's lien, mechanic's lien, or deed of trust lien on
31-14 the property.
31-15 (r) [(o)] A suit for damages under the provisions of this
31-16 section must be brought within 90 days after the purchaser receives
31-17 the first district tax notice or within four years after the
31-18 property is sold or conveyed to the purchaser, whichever time
31-19 occurs first, or the purchaser loses the right to seek damages
31-20 under this section.
31-21 (s) [(p)] Notwithstanding any provisions of this subchapter
31-22 to the contrary, a purchaser may not recover damages of any kind
31-23 under this section if that person:
31-24 (1) purchases an equity in real property and in
31-25 conjunction with the purchase assumes any liens, whether purchase
31-26 money or otherwise; and
32-1 (2) does not require proof of title by abstract, title
32-2 policy, or any other proof of title.
32-3 SECTION 16. Section 54.236, Water Code, is amended to read
32-4 as follows:
32-5 Sec. 54.236. STREET OR SECURITY LIGHTING. Subject to the
32-6 provisions of this section, a district may purchase, install
32-7 [accept], operate, and maintain street lighting or security
32-8 lighting within public utility easements or public rights-of-way
32-9 within the boundaries of the district. [Such street or security
32-10 lighting facilities must have been constructed by an owner or
32-11 developer of property within the district and must have been
32-12 required by a city as a condition to the city granting its consent
32-13 to the creation of the district pursuant to Section 54.016 of this
32-14 code.] A district may not issue bonds supported by ad valorem
32-15 taxes to pay for the purchase, installation, [development] and
32-16 maintenance of street or security lighting.
32-17 SECTION 17. Subdivision (1), Section 54.772, Water Code, is
32-18 amended to read as follows:
32-19 (1) "Recreational facilities" means parks,
32-20 landscaping, parkways, greenbelts, sidewalks, trails, public
32-21 right-of-way beautification projects, and recreational equipment
32-22 and facilities. The term includes associated street and security
32-23 lighting.
32-24 SECTION 18. Subsection (a), Section 54.774, Water Code, is
32-25 amended to read as follows:
32-26 (a) A district may not issue bonds supported by ad valorem
33-1 taxes to pay for the development and maintenance of recreational
33-2 facilities or street lighting.
33-3 SECTION 19. Subsection (a), Section 57.092, Water Code, is
33-4 amended to read as follows:
33-5 (a) The district may enter into all necessary and proper
33-6 contracts and employ all persons and means necessary to purchase,
33-7 acquire, build, construct, complete, carry out, maintain, protect,
33-8 and in case of necessity, add to and rebuild, all works and
33-9 improvements [within the district] necessary or proper to fully
33-10 accomplish a reclamation plan lawfully adopted for the district.
33-11 SECTION 20. Subchapter D, Chapter 51, Water Code, is amended
33-12 by adding Section 51.131 to read as follows:
33-13 Sec. 51.131. PENALTY FOR VIOLATION OF REGULATION. A person
33-14 who violates a regulation adopted by a district under this chapter
33-15 or other law commits an offense. An offense under this section is
33-16 a Class C misdemeanor.
33-17 SECTION 21. Section 60.350, Water Code, is repealed.
33-18 SECTION 22. (a) The repeal by this Act of Section 60.350,
33-19 Water Code, does not affect the applicability of Section 49.181,
33-20 Water Code, to bonds with regard to which an application and report
33-21 were submitted to the Texas Natural Resource Conservation
33-22 Commission under Subsection (b), Section 49.181, Water Code, before
33-23 the effective date of this Act. Those bonds are governed by
33-24 Section 49.181, Water Code, and Section 60.350, Water Code,
33-25 continues in effect as to those bonds for that purpose.
33-26 (b) The repeal by this Act of Section 60.350, Water Code,
34-1 does not affect the applicability of Section 49.183, Water Code, to
34-2 bonds issued before the effective date of this Act. Those bonds
34-3 are governed by Section 49.183, Water Code, and Section 60.350,
34-4 Water Code, continues in effect as to those bonds for that purpose.
34-5 SECTION 23. This Act takes effect September 1, 1999.
34-6 SECTION 24. The importance of this legislation and the
34-7 crowded condition of the calendars in both houses create an
34-8 emergency and an imperative public necessity that the
34-9 constitutional rule requiring bills to be read on three several
34-10 days in each house be suspended, and this rule is hereby suspended.