By Brown S.B. No. 1733
76R7119 MI-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the general powers and authority of water districts.
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 or by the county commissioners
2-7 court if the district was created by the county commissioners
2-8 court, regardless of whether a petition has been presented to the
2-9 board under Subsection (b). An appointed director shall serve for
2-10 the unexpired term of the director he or she is replacing.
2-11 (d) [(c)] In the event of a failure to elect one or more
2-12 members of the board of a district resulting from the absence of,
2-13 or failure to vote by, the qualified voters in the district, the
2-14 current members of the board holding the positions not filled at
2-15 such election shall be deemed to have been reelected and shall
2-16 serve an additional term of office.
2-17 SECTION 3. Section 49.155, Water Code, is amended to read as
2-18 follows:
2-19 Sec. 49.155. PAYMENT [REPAYMENT] OF EXPENSES. (a) The
2-20 district may pay out of bond proceeds or other available funds of
2-21 the district all [costs and] expenses reasonable and necessary to
2-22 effect the issuance, sale, and delivery of bonds as determined by
2-23 the board, [necessarily incurred in the organization and operation
2-24 of a district during creation and construction periods] including,
2-25 but not limited to, the following:
2-26 (1) interest during construction [organizational,
2-27 administrative, and operating expenses];
3-1 (2) capitalized interest not to exceed three years'
3-2 interest or reasonable and necessary reserve funds not to exceed
3-3 two years' interest;
3-4 (3) interest on funds advanced to the district;
3-5 (4) financial advisor, bond counsel, attorney, and
3-6 other consultant fees;
3-7 (5) paying agent, registrar, and escrow agent fees;
3-8 (6) insurance premiums, rating letter fees, market
3-9 study costs, and credit enhancement costs;
3-10 (7) right-of-way acquisition;
3-11 (8) underwriter's discounts or premiums;
3-12 (9) engineering fees;
3-13 (10) commission and attorney general fees;
3-14 (11) printing costs;
3-15 (12) all organizational, administrative, and operating
3-16 costs during creation and construction periods; and
3-17 (13) the cost of investigation and making plans[;]
3-18 [(3) the cost of the engineer's report;]
3-19 [(4) legal fees; and]
3-20 [(5) any other incidental expenses].
3-21 (b) For purposes of this section, construction periods shall
3-22 mean any periods during which the district is constructing its
3-23 facilities or there is construction by third parties of above
3-24 ground improvements within the district, but in no event longer
3-25 than five years.
3-26 (c) The district may reimburse any person for money advanced
3-27 for the purposes in Subsection (a) and may be charged interest on
4-1 such funds.
4-2 (d) These payments may be made from money obtained from the
4-3 issuance of notes or the sale of bonds issued by the district or
4-4 out of maintenance taxes or other revenues of the district.
4-5 SECTION 4. Section 49.211, Water Code, is amended by adding
4-6 Subsection (e) to read as follows:
4-7 (e) A district that is authorized by law to engage in
4-8 drainage or flood control activities may include among the
4-9 district's land, works, improvements, facilities, plants,
4-10 equipment, and appliances the following areas and projects
4-11 associated with drainage or flood control projects of the district:
4-12 (1) stormwater retention or detention lands and
4-13 projects;
4-14 (2) sedimentation basins;
4-15 (3) wetlands mitigation lands and projects;
4-16 (4) habitat reconstruction or restoration lands and
4-17 projects; and
4-18 (5) any temporary, permanent, constant, or variable
4-19 levee improvements of water related to projects described by
4-20 Subdivision (4).
4-21 SECTION 5. Section 49.212, Water Code, is amended by
4-22 amending Subsection (a) and adding Subsection (e) to read as
4-23 follows:
4-24 (a) A district may adopt and enforce all necessary charges,
4-25 fees, or rentals, in addition to taxes, for providing or making
4-26 available any district facility or service, including fire-fighting
4-27 activities provided under Section 49.351.
5-1 (e) Chapter 2007, Government Code, does not apply to a tax
5-2 levied, a standby fee imposed, or a charge, fee, or rental adopted
5-3 or enforced under this chapter or any chapter of this code.
5-4 SECTION 6. Section 49.226(b), Water Code, is amended to read
5-5 as follows:
5-6 (b) Any property dedicated to or acquired by the district
5-7 without expending district funds may be abandoned or released to
5-8 the original grantor, the grantor's heirs, assigns, executors, or
5-9 successors upon terms and conditions deemed necessary or
5-10 advantageous to the district and without receiving compensation for
5-11 such abandonment or release. District property may also be
5-12 abandoned, released, exchanged, or transferred to another district,
5-13 municipality, county, countywide agency, or authority upon terms
5-14 and conditions deemed necessary or advantageous to the district.
5-15 Narrow strips of property resulting from boundary or surveying
5-16 conflicts or similar causes, or from insubstantial encroachments by
5-17 abutting property owners, or property of larger configuration that
5-18 has been subject to encroachments by abutting property owners for
5-19 more than 25 years may be abandoned, released, exchanged, or
5-20 transferred to such abutting owners upon terms and conditions
5-21 deemed necessary or advantageous to the district. Chapter 272,
5-22 Local Government Code, shall not apply to this section
5-23 [subsection].
5-24 SECTION 7. Subchapter H, Chapter 49, Water Code, is amended
5-25 by adding Section 49.233 to read as follows:
5-26 Sec. 49.233. PROHIBITION OF CERTAIN PRIVATE ON-SITE
5-27 FACILITIES. (a) A district that operates a wastewater collection
6-1 system to serve land within its boundaries by rule may prohibit the
6-2 installation of private on-site wastewater holding or treatment
6-3 facilities on land within the district.
6-4 (b) A district that prohibits installation as described by
6-5 Subsection (a) shall agree to reimburse a particular tract the
6-6 costs of connecting the tract to the district's wastewater
6-7 collection system if the distance along public rights-of-way or
6-8 utility easements from the nearest point of the district's
6-9 wastewater collection system to the boundary line of the particular
6-10 tract requiring wastewater collection services is 1,000 feet or
6-11 more, subject to commission rules regarding reimbursement of those
6-12 costs.
6-13 SECTION 8. Section 49.271(c), Water Code, is amended to read
6-14 as follows:
6-15 (c) The district may adopt minimum criteria for the
6-16 qualifications of bidders on its construction contracts and for
6-17 sureties issuing payment and performance bonds. For construction
6-18 contracts over $25,000, the district shall require a person who
6-19 bids to submit a certified or cashier's check on a responsible bank
6-20 in the state equal to at least two percent of the total amount of
6-21 the bid, or a bid bond of at least two percent of the total amount
6-22 of the bid issued by a surety legally authorized to do business in
6-23 this state, as a good faith deposit to ensure execution of the
6-24 contract. If the successful bidder fails or refuses to enter into
6-25 a proper contract with the district, or fails or refuses to furnish
6-26 the payment and performance bonds [bond] required by law, the
6-27 bidder forfeits the deposit. The payment, performance, and bid
7-1 bonding requirements of this subsection do not apply to contracts
7-2 for the purchase of equipment, materials, and machinery not
7-3 otherwise incorporated into a construction project.
7-4 SECTION 9. Section 49.273(i), Water Code, is amended to read
7-5 as follows:
7-6 (i) If changes in plans or specifications are necessary
7-7 after the performance of the contract is begun or if it is
7-8 necessary to decrease or increase the quantity of the work to be
7-9 performed or of the materials, equipment, or supplies to be
7-10 furnished, the board may approve change orders making the changes.
7-11 The original contract price may not be increased by more than 25
7-12 percent of the aggregate of all change orders, excluding change
7-13 orders required [Change orders to contracts may be issued only] as
7-14 a result of unanticipated conditions encountered during
7-15 construction, repair, or renovation or changes in regulatory
7-16 criteria or to facilitate project coordination with other political
7-17 entities.
7-18 SECTION 10. Section 49.278, Water Code, is amended by adding
7-19 Subsection (c) to read as follows:
7-20 (c) Article 9102, Revised Statutes, does not apply to a
7-21 district of less than 5,000 acres.
7-22 SECTION 11. Subchapter I, Chapter 49, Water Code, is amended
7-23 by adding Section 49.279 to read as follows:
7-24 Sec. 49.279. PREVAILING WAGE RATES. In addition to the
7-25 alternative procedures provided by Section 2258.022, Government
7-26 Code:
7-27 (1) a district located wholly or partially within one
8-1 or more municipalities or within the extraterritorial jurisdiction
8-2 of one or more municipalities may establish its prevailing wage
8-3 rate for public works by adopting the prevailing wage rate of:
8-4 (A) one of the municipalities; or
8-5 (B) the county in which the district is located;
8-6 and
8-7 (2) a district not located wholly or partially within
8-8 the extraterritorial jurisdiction of any municipality may establish
8-9 the district's prevailing wage rate by adopting the wage rate of
8-10 the county in which the district is located.
8-11 SECTION 12. Section 49.304(a), Water Code, is amended to
8-12 read as follows:
8-13 (a) If the board determines that an exclusion hearing should
8-14 be held as provided in Section 49.303(a) or (c), or if a written
8-15 petition requesting an exclusion hearing is filed with the
8-16 secretary of the board as provided in Section 49.303(b) [49.303],
8-17 the board shall give notice of the time and place of a hearing to
8-18 announce its own conclusions relating to land or other property to
8-19 be excluded and to receive petitions for exclusion of land or other
8-20 property.
8-21 SECTION 13. Subchapter J, Chapter 49, Water Code, is amended
8-22 by adding Section 49.315 to read as follows:
8-23 Sec. 49.315. ADDING AND EXCLUDING LAND BEFORE CONFIRMATION.
8-24 (a) A district may add or exclude land in accordance with this
8-25 subchapter:
8-26 (1) after a district is created by order of the
8-27 commission or another governmental entity or by special Act of the
9-1 legislature; and
9-2 (2) before an election is held as required by Section
9-3 49.102.
9-4 (b) If land is added or excluded as provided by this
9-5 section, the election to confirm the district required by Section
9-6 49.102 shall be to confirm the district as modified.
9-7 SECTION 14. Section 49.327, Water Code, is amended to read
9-8 as follows:
9-9 Sec. 49.327. ASSETS ESCHEAT TO STATE. (a) Upon the
9-10 dissolution of a district by the commission, all assets of the
9-11 district shall escheat to the State of Texas. The assets shall be
9-12 administered by the comptroller and shall be disposed of in the
9-13 manner provided by Chapter 74, Property Code.
9-14 (b) Title 6, Property Code, does not apply to any personal
9-15 property held by a district that has not been dissolved by order of
9-16 the commission.
9-17 SECTION 15. Sections 49.351(a)-(c) and (g)-(j), Water Code,
9-18 are amended to read as follows:
9-19 (a) A district providing potable water or sewer service to
9-20 household users may establish, operate, and maintain a fire
9-21 department to perform all fire-fighting activities within the
9-22 district as provided in this subchapter and may issue bonds or
9-23 impose a mandatory fee, with voter approval, [bonds] for financing
9-24 the establishment of the fire department or a contract entered into
9-25 under Subsection (d) or (e), including the construction and
9-26 purchase of necessary buildings, facilities, land, and equipment
9-27 and the provision of an adequate water supply.
10-1 (b) After approval of the district electors of a plan to
10-2 operate, [or] jointly operate, or contribute to the operation of a
10-3 fire department, the district or districts shall provide an
10-4 adequate system and water supply for fire-fighting purposes, may
10-5 construct and purchase necessary buildings, facilities, and
10-6 equipment, and may employ or contract with a fire department to
10-7 employ all necessary personnel including supervisory personnel to
10-8 operate the fire department.
10-9 (c) Bonds issued for establishment of the fire department or
10-10 financing a contract entered into under Subsection (d) or (e)
10-11 shall be authorized and bonds may be issued, and a district shall
10-12 be authorized to levy a tax to pay the principal of and interest on
10-13 such bonds, as provided by law for authorization and issuance of
10-14 other bonds of the district.
10-15 (g) A district or districts proposing to act jointly shall
10-16 develop a detailed plan for the establishment, operation, and
10-17 maintenance of the proposed department, including a detailed
10-18 presentation of all financial requirements. If a district is
10-19 entering into a contract under Subsection (e), the district shall
10-20 develop a plan that describes [in detail] the contract and
10-21 [facilities and equipment to be devoted to service to the district
10-22 and all proposals for providing the service and that] includes a
10-23 presentation of the financial requirements under the contract. A
10-24 plan required by this subsection may be included in a plan or
10-25 report otherwise required by this title for the creation of a
10-26 district or may be submitted to the commission for approval any
10-27 time after the creation of the district. [Before adoption of a
11-1 plan and any contract by the district, the board shall hold a
11-2 hearing at which any person residing in the district may present
11-3 testimony for and against the proposed plan and any proposed
11-4 contract. Notice of the hearing and the place at which the plan
11-5 and any contract may be examined shall be posted in two public
11-6 places within the district at least 10 days before the date of the
11-7 hearing.]
11-8 (h) If no plan was approved by the commission at the time of
11-9 the district's creation, after [After] adoption of the plan and any
11-10 contract by the board, the plan and financial presentation,
11-11 together with any contract and a written report in a form
11-12 prescribed by the executive director describing existing fire
11-13 departments and fire-fighting services available within 25 miles of
11-14 the boundaries of the district, shall be submitted to the executive
11-15 director for consideration by the commission under rules adopted by
11-16 the commission. [Before approval or disapproval, the commission
11-17 shall hold a hearing. Notice of the hearing before the commission
11-18 shall be posted by the board in at least two public places in the
11-19 district at least five days before the hearing.] Before the
11-20 commission approves the application, it must find that it is
11-21 economically feasible for the district to implement the plan and
11-22 meet the provisions of any contract and shall take into
11-23 consideration in giving its approval the general financial
11-24 condition of the district and the economic feasibility of the
11-25 district carrying out the plan or meeting the obligations of the
11-26 contract. A plan approved by the commission as part of the
11-27 creation of a district does not require further commission approval
12-1 unless the district materially alters the plan.
12-2 (i) After approval of a plan by the commission, the district
12-3 shall submit to the electors of the district at the election to
12-4 approve bonds or to impose a mandatory fee for financing the plan,
12-5 or if no bonds or fees are to be approved, at an election called
12-6 for approval of the plan, which may be held in conjunction with an
12-7 election required by Section 49.102, the proposition of whether or
12-8 not the plan should be implemented or entered into by the district.
12-9 The ballots at the election shall be printed, as applicable, to
12-10 provide for voting for or against the proposition: "The
12-11 implementation of the plan for (operation/joint operation) of a
12-12 fire department"; or "The plan and contract to provide
12-13 fire-fighting services for the district."
12-14 (j) [No funds of the district may be used to establish a
12-15 fire department, to enter into joint operation of a fire
12-16 department, or to contract for fire-fighting services without the
12-17 approval of a plan by the electors as provided in this section.
12-18 However, the district may use available funds for preparation of a
12-19 plan and any contract.] The operation of a fire department or
12-20 provision of fire-fighting services is an essential public
12-21 necessity, and a district may discontinue any and all services,
12-22 including water and sewer service, to any person who fails to
12-23 timely pay fire department service fees or any other assessment
12-24 adopted by the district to support the fire department or the
12-25 provision of fire-fighting services.
12-26 SECTION 16. Section 49.452, Water Code, is amended to read
12-27 as follows:
13-1 Sec. 49.452. NOTICE TO PURCHASERS. (a)(1) Any person who
13-2 proposes to sell or convey real property located in a district
13-3 created under this title or by a special Act of the legislature
13-4 that is providing or proposing to provide, as the district's
13-5 principal function, water, sanitary sewer, drainage, and flood
13-6 control or protection facilities or services, or any of these
13-7 facilities or services that have been financed or are proposed to
13-8 be financed with bonds of the district payable in whole or part
13-9 from taxes of the district, or by imposition of a standby fee, if
13-10 any, to household or commercial users, other than agricultural,
13-11 irrigation, or industrial users, and which district includes less
13-12 than all the territory in at least one county and which, if located
13-13 within the corporate area of a city, includes less than 75 percent
13-14 of the incorporated area of the city or which is located outside
13-15 the corporate area of a city in whole or in substantial part, must
13-16 first give to the purchaser the written notice provided in this
13-17 section.
13-18 (2) The provisions of this section shall not be
13-19 applicable to:
13-20 (A) transfers of title under any type of lien
13-21 foreclosure;
13-22 (B) transfers of title by deed in cancellation
13-23 of indebtedness secured by a lien upon the property conveyed; [or]
13-24 (C) transfers of title by reason of a will or
13-25 probate proceedings; or
13-26 (D) transfers of title to a governmental entity.
13-27 (b) The prescribed notice for [all] districts located in
14-1 whole or in part in the extraterritorial jurisdiction of one or
14-2 more home-rule municipalities, but not within the corporate limits
14-3 of a municipality, shall be executed by the seller and shall read
14-4 as follows:
14-5 "The real property, described below, that you are about to
14-6 purchase is located in the ___________________ District. The
14-7 district has taxing authority separate from any other taxing
14-8 authority and may, subject to voter approval, issue an unlimited
14-9 amount of bonds and levy an unlimited rate of tax in payment of
14-10 such bonds. As of this date, the rate of taxes levied by the
14-11 district on real property located in the district is $__________ on
14-12 each $100 of assessed valuation. If the district has not yet
14-13 levied taxes, the most recent projected rate of [debt service] tax,
14-14 as of this date, is $__________ on each $100 of assessed valuation.
14-15 The total amount of bonds approved by the voters and which have
14-16 been or may, at this date, be issued (excluding refunding bonds and
14-17 any bonds or portion of bonds issued payable solely from revenues
14-18 received or expected to be received under a contract with a
14-19 governmental entity) is $__________, and the aggregate initial
14-20 principal amounts of all bonds issued for one or more of the
14-21 specified facilities of the district and payable in whole or in
14-22 part from property taxes (excluding refunding bonds and any bonds
14-23 or portion of bonds issued payable solely from revenues received or
14-24 expected to be received under a contract with a governmental
14-25 entity) is $__________.
14-26 "The district has the authority to adopt and impose a standby
14-27 fee on property in the district that has water, sanitary sewer, or
15-1 drainage facilities and services available but not connected and
15-2 which does not have a house, building, or other improvement located
15-3 thereon and does not substantially utilize the utility capacity
15-4 available to the property. The district may exercise the authority
15-5 without holding an election on the matter. As of this date, the
15-6 most recent amount of the standby fee is $__________. An unpaid
15-7 standby fee is a personal obligation of the person that owned the
15-8 property at the time of imposition and is secured by a lien on the
15-9 property. Any person may request a certificate from the district
15-10 stating the amount, if any, of unpaid standby fees on a tract of
15-11 property in the district.
15-12 "The district is located in whole or in part in the
15-13 extraterritorial jurisdiction ('ETJ') of the City(s) of __________.
15-14 Generally, a district located entirely within the ETJ of one or
15-15 more cities may be annexed by the city or cities without the
15-16 consent of the district or the voters of the district and the
15-17 district may be dissolved after annexation occurs, subject to
15-18 applicable law.
15-19 "The purpose of this district is to provide water, sewer,
15-20 drainage, or flood control facilities and services within the
15-21 district through the issuance of bonds payable in whole or in part
15-22 from property taxes. The cost of these utility facilities is not
15-23 included in the purchase price of your property, and these utility
15-24 facilities are owned or to be owned by the district. The legal
15-25 description of the property you are acquiring is as follows:
15-26 ___________________________________________________________________
15-27 ____________________ (Date)
16-1 ___________________________
16-2 Signature of Seller
16-3 PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM
16-4 IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME. THE DISTRICT
16-5 ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER
16-6 THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE
16-7 TAX RATES ARE APPROVED BY THE DISTRICT. PURCHASER IS ADVISED TO
16-8 CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR
16-9 PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.
16-10 "The undersigned purchaser hereby acknowledges receipt of the
16-11 foregoing notice at or prior to execution of a binding contract for
16-12 the purchase of the real property described in such notice or at
16-13 closing of purchase of the real property.
16-14 ___________________________________________________________________
16-15 ______________________ (Date)
16-16 _____________________________
16-17 Signature of Purchaser
16-18 "(Note: Correct district name, tax rate, bond amounts, and
16-19 legal description are to be placed in the appropriate space.)
16-20 Except for notices included as an addendum or paragraph of a
16-21 purchase contract, the notice shall be executed by the seller and
16-22 purchaser, as indicated. If the district does not propose to
16-23 provide one or more of the specified facilities and services, the
16-24 appropriate purpose may be eliminated. If the district has not yet
16-25 levied taxes, a statement of the district's most recent projected
16-26 rate of [debt service] tax is to be placed in the appropriate
16-27 space. If the district does not have approval from the commission
17-1 to adopt and impose a standby fee, the second paragraph of the
17-2 notice may be deleted. For the purposes of the notice form
17-3 required to be given to the prospective purchaser prior to
17-4 execution of a binding contract of sale and purchase, a seller and
17-5 any agent, representative, or person acting on the seller's behalf
17-6 may modify the notice by substitution of the words 'January 1,
17-7 ______' for the words 'this date' and place the correct calendar
17-8 year in the appropriate space."
17-9 (c) The prescribed notice for districts located in whole or
17-10 in part within the corporate limits of a municipality shall be
17-11 executed by the seller and shall read as follows:
17-12 "The real property, described below, that you are about to
17-13 purchase is located in the _____ District. The district has taxing
17-14 authority separate from any other taxing authority and may, subject
17-15 to voter approval, issue an unlimited amount of bonds and levy an
17-16 unlimited rate of tax in payment of such bonds. As of this date,
17-17 the rate of taxes levied by the district on real property located
17-18 in the district is $_______ on each $100 of assessed valuation. If
17-19 the district has not yet levied taxes, the most recent projected
17-20 rate of tax, as of this date, is $_______ on each $100 of assessed
17-21 valuation. The total amount of bonds approved by the voters and
17-22 which have been or may, at this date, be issued (excluding
17-23 refunding bonds and any bonds or portion of bonds issued payable
17-24 solely from revenues received or expected to be received under a
17-25 contract with a governmental entity) is $_________, and the
17-26 aggregate initial principal amounts of all bonds issued for one or
17-27 more of the specified facilities of the district and payable in
18-1 whole or in part from property taxes (excluding refunding bonds and
18-2 any bonds or portion of bonds issued payable solely from revenues
18-3 received or expected to be received under a contract with a
18-4 governmental entity) is $________.
18-5 "The district has the authority to adopt and impose a standby
18-6 fee on property in the district that has water, sanitary sewer, or
18-7 drainage facilities and services available but not connected and
18-8 which does not have a house, building, or other improvement located
18-9 thereon and does not substantially utilize the utility capacity
18-10 available to the property. The district may exercise the authority
18-11 without holding an election on the matter. As of this date, the
18-12 most recent amount of the standby fee is $________. An unpaid
18-13 standby fee is a personal obligation of the person that owned the
18-14 property at the time of imposition and is secured by a lien on the
18-15 property. Any person may request a certificate from the district
18-16 stating the amount, if any, of unpaid standby fees on a tract of
18-17 property in the district.
18-18 "The district is located in whole or in part within the
18-19 City(s) of _______________. District taxpayers are subject to the
18-20 taxes of the city(s) in addition to any district taxes during the
18-21 life of the district. Generally, an in-city district can be
18-22 dissolved by city ordinance without the consent of the district or
18-23 the voters of the district, subject to applicable laws.
18-24 "The purpose of this district is to provide water, sewer,
18-25 drainage, or flood control facilities and services within the
18-26 district through the issuance of bonds payable in whole or in part
18-27 from property taxes. The cost of these utility facilities is not
19-1 included in the purchase price of your property, and these utility
19-2 facilities are owned or to be owned by the district. The legal
19-3 description of the property you are acquiring is as follows:
19-4 ___________________________________________________________________
19-5 _______________________(Date)
19-6 _____________________________
19-7 Signature of Seller
19-8 PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM
19-9 IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME. THE DISTRICT
19-10 ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER
19-11 THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE
19-12 TAX RATES ARE APPROVED BY THE DISTRICT. PURCHASER IS ADVISED TO
19-13 CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR
19-14 PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.
19-15 "The undersigned purchaser hereby acknowledges receipt of the
19-16 foregoing notice at or prior to execution of a binding contract for
19-17 the purchase of the real property described in such notice or at
19-18 closing of purchase of the real property.
19-19 ___________________________________________________________________
19-20 _______________________(Date)
19-21 _____________________________
19-22 Signature of Purchaser
19-23 "(Note: Correct district name, tax rate, bond amounts, and
19-24 legal description are to be placed in the appropriate space.)
19-25 Except for notices included as an addendum or paragraph of a
19-26 purchase contract, the notice shall be executed by the seller and
19-27 purchaser, as indicated. If the district does not propose to
20-1 provide one or more of the specified facilities and services, the
20-2 appropriate purpose may be eliminated. If the district has not yet
20-3 levied taxes, a statement of the district's most recent projected
20-4 rate of tax is to be placed in the appropriate space. If the
20-5 district does not have approval from the commission to adopt and
20-6 impose a standby fee, the second paragraph of the notice may be
20-7 deleted. For the purposes of the notice form required to be given
20-8 to the prospective purchaser before execution of a binding contract
20-9 of sale and purchase, a seller and any agent, representative, or
20-10 person acting on the seller's behalf may modify the notice by
20-11 substitution of the words 'January 1, _____' for the words 'this
20-12 date' and place the correct calendar year in the appropriate
20-13 space."
20-14 (d) The prescribed notice for districts not located in whole
20-15 or in part within the corporate limits of a municipality, or in
20-16 whole or in part in the extraterritorial jurisdiction of one or
20-17 more home-rule municipalities, shall be executed by the seller and
20-18 shall read as follows:
20-19 "The real property, described below, that you are about to
20-20 purchase is located in the _____ District. The district has taxing
20-21 authority separate from any other taxing authority and may, subject
20-22 to voter approval, issue an unlimited amount of bonds and levy an
20-23 unlimited rate of tax in payment of such bonds. As of this date,
20-24 the rate of taxes levied by the district on real property located
20-25 in the district is $_______ on each $100 of assessed valuation. If
20-26 the district has not yet levied taxes, the most recent projected
20-27 rate of tax, as of this date, is $_______ on each $100 of assessed
21-1 valuation. The total amount of bonds approved by the voters and
21-2 which have been or may, at this date, be issued (excluding
21-3 refunding bonds and any bonds or portion of bonds issued payable
21-4 solely from revenues received or expected to be received under a
21-5 contract with a governmental entity) is $_________, and the
21-6 aggregate initial principal amounts of all bonds issued for one or
21-7 more of the specified facilities of the district and payable in
21-8 whole or in part from property taxes (excluding refunding bonds and
21-9 any bonds or portion of bonds issued payable solely from revenues
21-10 received or expected to be received under a contract with a
21-11 governmental entity) is $________.
21-12 "The district has the authority to adopt and impose a standby
21-13 fee on property in the district that has water, sanitary sewer, or
21-14 drainage facilities and services available but not connected and
21-15 which does not have a house, building, or other improvement located
21-16 thereon and does not substantially utilize the utility capacity
21-17 available to the property. The district may exercise the authority
21-18 without holding an election on the matter. As of this date, the
21-19 most recent amount of the standby fee is $________. An unpaid
21-20 standby fee is a personal obligation of the person that owned the
21-21 property at the time of imposition and is secured by a lien on the
21-22 property. Any person may request a certificate from the district
21-23 stating the amount, if any, of unpaid standby fees on a tract of
21-24 property in the district.
21-25 "The purpose of this district is to provide water, sewer,
21-26 drainage, or flood control facilities and services within the
21-27 district through the issuance of bonds payable in whole or in part
22-1 from property taxes. The cost of these utility facilities is not
22-2 included in the purchase price of your property, and these utility
22-3 facilities are owned or to be owned by the district. The legal
22-4 description of the property you are acquiring is as follows:
22-5 ___________________________________________________________________
22-6 _______________________(Date)
22-7 _____________________________
22-8 Signature of Seller
22-9 PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM
22-10 IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME. THE DISTRICT
22-11 ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER
22-12 THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE
22-13 TAX RATES ARE APPROVED BY THE DISTRICT. PURCHASER IS ADVISED TO
22-14 CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR
22-15 PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.
22-16 "The undersigned purchaser hereby acknowledges receipt of the
22-17 foregoing notice at or prior to execution of a binding contract for
22-18 the purchase of the real property described in such notice or at
22-19 closing of purchase of the real property.
22-20 ___________________________________________________________________
22-21 _______________________(Date)
22-22 _____________________________
22-23 Signature of Purchaser
22-24 "(Note: Correct district name, tax rate, bond amounts, and
22-25 legal description are to be placed in the appropriate space.)
22-26 Except for notices included as an addendum or paragraph of a
22-27 purchase contract, the notice shall be executed by the seller and
23-1 purchaser, as indicated. If the district does not propose to
23-2 provide one or more of the specified facilities and services, the
23-3 appropriate purpose may be eliminated. If the district has not yet
23-4 levied taxes, a statement of the district's most recent projected
23-5 rate of tax is to be placed in the appropriate space. If the
23-6 district does not have approval from the commission to adopt and
23-7 impose a standby fee, the second paragraph of the notice may be
23-8 deleted. For the purposes of the notice form required to be given
23-9 to the prospective purchaser prior to execution of a binding
23-10 contract of sale and purchase, a seller and any agent,
23-11 representative, or person acting on the seller's behalf may modify
23-12 the notice by substitution of the words 'January 1, _____' for the
23-13 words 'this date' and place the correct calendar year in the
23-14 appropriate space."
23-15 (e) If the law regarding annexation or district dissolution
23-16 is changed, causing inaccuracies in the content of the notices as
23-17 provided by this section, the district shall revise the content of
23-18 the notice to accurately reflect the current law.
23-19 (f) The notice required by this section shall be given to
23-20 the prospective purchaser prior to execution of a binding contract
23-21 of sale and purchase either separately or as an addendum or
23-22 paragraph of a purchase contract. In the event a contract of
23-23 purchase and sale is entered into without the seller providing the
23-24 notice required by this subsection, the purchaser shall be entitled
23-25 to terminate the contract. If, however, the seller furnishes the
23-26 required notice at or prior to closing the purchase and sale
23-27 contract and the purchaser elects to close even though such notice
24-1 was not timely furnished prior to execution of the contract, it
24-2 shall be conclusively presumed that the purchaser has waived all
24-3 rights to terminate the contract and recover damages or other
24-4 remedies or rights under the provisions of this section.
24-5 Notwithstanding any provision of this subchapter to the contrary,
24-6 all sellers, title companies, and examining attorneys, and any
24-7 agent, representative, or person acting on their behalf, shall not
24-8 be liable for damages under the provisions of either Subsection (o)
24-9 [(l)] or (p) [(m)] or liable for any other damages to any person
24-10 for failure to provide the notice required by this section to a
24-11 purchaser prior to execution of a binding contract of a purchase
24-12 and sale when the district has not filed the information form and
24-13 map or plat as required under Section 49.455.
24-14 (g) [(d)] The purchaser shall sign the notice or purchase
24-15 contract including such notice to evidence the receipt of notice.
24-16 (h) [(e)] At the closing of purchase and sale, a separate
24-17 copy of such notice with current information shall be executed by
24-18 the seller and purchaser, acknowledged, and thereafter recorded in
24-19 the deed records of the county in which the property is located.
24-20 For the purposes of this section, all sellers, title companies, and
24-21 examining attorneys, and any agent, representative, or person
24-22 acting on their behalf, shall be entitled to rely on the accuracy
24-23 of the information form and map or plat as last filed by each
24-24 district under Section 49.455 or the information contained in or
24-25 shown on the notice form issued by the district under Section
24-26 49.453 in completing the notice form to be executed by the seller
24-27 and purchaser at the closing of purchase and sale. Any information
25-1 taken from the information form or map or plat as last filed by
25-2 each district and the information contained in or shown on the
25-3 notice form issued by the district under Section 49.453 shall be,
25-4 for purposes of this section, conclusively presumed as a matter of
25-5 law to be correct. All subsequent sellers, purchasers, title
25-6 insurance companies, examining attorneys, and lienholders shall be
25-7 entitled to rely upon the information form and map or plat filed by
25-8 the district or the notice form issued by the district under
25-9 Section 49.453.
25-10 (i) [(f)] For the purposes of this section, an executory
25-11 contract of purchase and sale having a performance period of more
25-12 than six months shall be considered a sale under Subsection (a).
25-13 (j) [(g)] For the purposes of the notice form to be given to
25-14 the prospective purchaser prior to execution of a binding contract
25-15 of sale and purchase, a seller and any agent, representative, or
25-16 person acting in the seller's behalf may modify the notice by
25-17 substitution of the words "January 1, ____" for the words "this
25-18 date" and place the correct calendar year in the appropriate space.
25-19 All sellers, and all persons completing the prescribed notice in
25-20 the sellers' behalf, shall be entitled to rely on the information
25-21 contained in or shown on the information form and map or plat filed
25-22 of record by the district under Section 49.455 in completing the
25-23 prescribed form to be given to the prospective purchaser prior to
25-24 execution of a binding contract of sale and purchase. Except as
25-25 otherwise provided in Subsection (h) [(e)], any information taken
25-26 from the information form or map or plat filed of record by the
25-27 district in effect as of January 1 of each year shall be, for
26-1 purposes of the notice to be given to the prospective purchaser
26-2 prior to execution of a binding contract of sale and purchase,
26-3 conclusively presumed as a matter of law to be correct for the
26-4 period January 1 through December 31 of such calendar year. A
26-5 seller and any persons completing the prescribed notice in the
26-6 seller's behalf may provide more recent information, if available,
26-7 than the information contained in or shown on the information form
26-8 and map or plat filed of record by the district under Section
26-9 49.455 in effect as of January 1 of each year in completing the
26-10 prescribed form to be given to the purchaser prior to execution of
26-11 a binding contract of sale and purchase. Nothing contained in the
26-12 preceding sentence shall be construed to create an affirmative duty
26-13 on the part of a seller or any persons completing the prescribed
26-14 notice in the seller's behalf to provide more recent information
26-15 than the information taken from the information form and map or
26-16 plat filed of record by the district as of January 1 of each year
26-17 in completing the prescribed notice to be given to the purchaser
26-18 prior to execution of a binding contract of sale and purchase. All
26-19 subsequent sellers, purchasers, title insurance companies,
26-20 examining attorneys, and lienholders shall be entitled to rely upon
26-21 the information form and map or plat filed by the district.
26-22 (k) [(h)] If such notice is given at closing as provided in
26-23 Subsection (h) [(e)], a purchaser, or the purchaser's heirs,
26-24 successors, or assigns, shall not be entitled to maintain any
26-25 action for damages or maintain any action against a seller, title
26-26 insurance company, or lienholder, or any agent, representative, or
26-27 person acting in their behalf, by reason of use by the seller of
27-1 the information filed for record by the district or reliance by the
27-2 seller on the filed plat and filed legal description of the
27-3 district in determining whether the property to be sold and
27-4 purchased is within the district. No action may be maintained
27-5 against any title company for failure to disclose the inclusion of
27-6 the described real property within a district when the district has
27-7 not filed for record the information form, map, or plat with the
27-8 clerk of the county or counties in which the district is located.
27-9 (l) [(i)] Any purchaser who purchases any real property in a
27-10 district and who thereafter sells or conveys the same shall on
27-11 closing of such subsequent sale be conclusively considered as
27-12 having waived any prior right to damages under this section.
27-13 (m) [(j)] It is the express intent of this section that all
27-14 sellers, title insurance companies, examining attorneys, vendors of
27-15 property and tax information, real estate brokers, and lienholders,
27-16 and any agent, representative, or person acting on their behalf,
27-17 shall be entitled to rely on the accuracy of the information form
27-18 and map or plat as last filed by each district or the information
27-19 contained in or shown on the notice form issued by the district
27-20 under Section 49.453, or for the purposes of the notice to be given
27-21 the purchaser prior to execution of a binding contract of sale and
27-22 purchase the information contained in or shown on the information
27-23 form and map or plat filed of record by the district in effect as
27-24 of January 1 of each year for the period January 1 through December
27-25 31 of such calendar year.
27-26 (n) [(k)] Except as otherwise provided in Subsection (f)
27-27 [(c)], if any sale or conveyance of real property within a district
28-1 is not made in compliance with the provisions of this section, the
28-2 purchaser may institute a suit for damages under the provisions of
28-3 either Subsection (o) [(l)] or (p) [(m)].
28-4 (o) [(l)] A purchaser of real property covered by the
28-5 provisions of this section, if the sale or conveyance of the
28-6 property is not made in compliance with this section, may institute
28-7 a suit for damages in the amount of all costs relative to the
28-8 purchase of the property plus interest and reasonable attorney's
28-9 fees. The suit for damages may be instituted jointly or severally
28-10 against the person, firm, corporation, partnership, organization,
28-11 business trust, estate, trust, association, or other legal entity
28-12 that sold or conveyed the property to the purchaser. Following the
28-13 recovery of damages under this subsection, the amount of the
28-14 damages shall first be paid to satisfy all unpaid obligations on
28-15 each outstanding lien or liens on the property and the remainder of
28-16 the damage amount shall be paid to the purchaser. On payment of
28-17 all damages respectively to the lienholders and purchaser, the
28-18 purchaser shall reconvey the property to the seller.
28-19 (p) [(m)] A purchaser of real property covered by the
28-20 provisions of this section, if the sale or conveyance of the
28-21 property is not made in compliance with this section, may institute
28-22 a suit for damages in an amount not to exceed $5,000, plus
28-23 reasonable attorney's fees.
28-24 (q) [(n)] A purchaser is not entitled to recover damages
28-25 under both Subsections (o) [(l)] and (p) [(m)], and entry of a
28-26 final decision awarding damages to the purchaser under either
28-27 Subsection (o) [(l)] or (p) [(m)] shall preclude the purchaser from
29-1 recovering damages under the other subsection. Notwithstanding any
29-2 part or provision of the general or special laws or the common law
29-3 of the state to the contrary, the relief provided under Subsections
29-4 (o) [(l)] and (p) [(m)] shall be the exclusive remedies for a
29-5 purchaser aggrieved by the seller's failure to comply with the
29-6 provisions of this section. Any action for damages shall not,
29-7 however, apply to, affect, alter, or impair the validity of any
29-8 existing vendor's lien, mechanic's lien, or deed of trust lien on
29-9 the property.
29-10 (r) [(o)] A suit for damages under the provisions of this
29-11 section must be brought within 90 days after the purchaser receives
29-12 the first district tax notice or within four years after the
29-13 property is sold or conveyed to the purchaser, whichever time
29-14 occurs first, or the purchaser loses the right to seek damages
29-15 under this section.
29-16 (s) [(p)] Notwithstanding any provisions of this subchapter
29-17 to the contrary, a purchaser may not recover damages of any kind
29-18 under this section if that person:
29-19 (1) purchases an equity in real property and in
29-20 conjunction with the purchase assumes any liens, whether purchase
29-21 money or otherwise; and
29-22 (2) does not require proof of title by abstract, title
29-23 policy, or any other proof of title.
29-24 SECTION 17. Section 54.236, Water Code, is amended to read
29-25 as follows:
29-26 Sec. 54.236. STREET OR SECURITY LIGHTING. Subject to
29-27 the provisions of this section, a district may purchase, install
30-1 [accept], operate, and maintain street lighting or security
30-2 lighting within public utility easements or public rights-of-way
30-3 within the boundaries of the district. [Such street or security
30-4 lighting facilities must have been constructed by an owner or
30-5 developer of property within the district and must have been
30-6 required by a city as a condition to the city granting its consent
30-7 to the creation of the district pursuant to Section 54.016 of this
30-8 code.] A district may not issue bonds supported by ad valorem
30-9 taxes to pay for the purchase, installation, [development] and
30-10 maintenance of street or security lighting.
30-11 SECTION 18. Section 54.772(1), Water Code, is amended to
30-12 read as follows:
30-13 (1) "Recreational facilities" means parks,
30-14 landscaping, parkways, greenbelts, sidewalks, trails, public
30-15 right-of-way beautification projects, and recreational equipment
30-16 and facilities.
30-17 SECTION 19. Section 54.774(a), Water Code, is amended to
30-18 read as follows:
30-19 (a) A district may not issue bonds supported by ad valorem
30-20 taxes to pay for the development and maintenance of recreational
30-21 facilities or street lighting.
30-22 SECTION 20. Section 57.092(a), Water Code, is amended to
30-23 read as follows:
30-24 (a) The district may enter into all necessary and proper
30-25 contracts and employ all persons and means necessary to purchase,
30-26 acquire, build, construct, complete, carry out, maintain, protect,
30-27 and in case of necessity, add to and rebuild, all works and
31-1 improvements [within the district] necessary or proper to fully
31-2 accomplish a reclamation plan lawfully adopted for the district.
31-3 SECTION 21. Section 60.350, Water Code, is repealed.
31-4 SECTION 22. (a) The repeal by this Act of Section 60.350,
31-5 Water Code, does not affect the applicability of Section 49.181,
31-6 Water Code, to bonds with regard to which an application and report
31-7 were submitted to the Texas Natural Resource Conservation
31-8 Commission under Section 49.181(b), Water Code, before the
31-9 effective date of this Act. Those bonds are governed by Section
31-10 49.181, Water Code, and Section 60.350, Water Code, continues in
31-11 effect as to those bonds for that purpose.
31-12 (b) The repeal by this Act of Section 60.350, Water Code,
31-13 does not affect the applicability of Section 49.183, Water Code, to
31-14 bonds issued before the effective date of this Act. Those bonds
31-15 are governed by Section 49.183, Water Code, and Section 60.350,
31-16 Water Code, continues in effect as to those bonds for that purpose.
31-17 SECTION 23. This Act takes effect September 1, 1999.
31-18 SECTION 24. The importance of this legislation and the
31-19 crowded condition of the calendars in both houses create an
31-20 emergency and an imperative public necessity that the
31-21 constitutional rule requiring bills to be read on three several
31-22 days in each house be suspended, and this rule is hereby suspended.