1-1 By: Brown S.B. No. 1733
1-2 (In the Senate - Filed March 12, 1999; March 15, 1999, read
1-3 first time and referred to Committee on Natural Resources;
1-4 April 12, 1999, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 5, Nays 0; April 12, 1999,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1733 By: Brown
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the general powers and authority of water districts;
1-11 providing a penalty.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Section 49.102, Water Code, is amended by adding
1-14 a new Subsection (i) and redesignating existing Subsection (i) as
1-15 Subsection (j) to read as follows:
1-16 (i) A district, at an election required under Subsection
1-17 (a), may submit to the qualified voters of the district the
1-18 proposition of whether a plan as authorized by Section 49.351
1-19 should be implemented or entered into by the district.
1-20 (j) The provisions of this section shall not be applicable
1-21 to any district exercising the powers of Chapter 375, Local
1-22 Government Code, or any district created by a special Act of the
1-23 legislature that does not require a confirmation election.
1-24 SECTION 2. Section 49.105, Water Code, is amended to read as
1-25 follows:
1-26 Sec. 49.105. VACANCIES. (a) Except as otherwise provided
1-27 in this code, a vacancy [all vacancies] on the board and in other
1-28 offices shall be filled for the unexpired term by appointment of
1-29 the board not later than the 60th day after the date the vacancy
1-30 occurs.
1-31 (b) If the board has not filled a vacancy by appointment
1-32 before the 61st day after the date the vacancy occurs, a petition,
1-33 signed by more than 10 percent of the registered voters of the
1-34 district, requesting the board to fill the vacancy by appointment
1-35 may be presented to the board.
1-36 (c) If the number of directors is reduced to fewer than a
1-37 majority or if a vacancy continues beyond the 90th day after the
1-38 date the vacancy occurs, the vacancy or vacancies shall be filled
1-39 by appointment by the commission if the district is required by
1-40 Section 49.181 to obtain commission approval of its bonds or by the
1-41 county commissioners court if the district was created by the
1-42 county commissioners court, regardless of whether a petition has
1-43 been presented to the board under Subsection (b). An appointed
1-44 director shall serve for the unexpired term of the director he or
1-45 she is replacing.
1-46 (d) [(c)] In the event of a failure to elect one or more
1-47 members of the board of a district resulting from the absence of,
1-48 or failure to vote by, the qualified voters in the district, the
1-49 current members of the board holding the positions not filled at
1-50 such election shall be deemed to have been reelected and shall
1-51 serve an additional term of office.
1-52 SECTION 3. Section 49.155, Water Code, is amended to read as
1-53 follows:
1-54 Sec. 49.155. PAYMENT [REPAYMENT] OF EXPENSES. (a) The
1-55 district may pay out of bond proceeds or other available funds of
1-56 the district all [costs and] expenses reasonable and necessary to
1-57 effect the issuance, sale, and delivery of bonds as determined by
1-58 the board, [necessarily incurred in the organization and operation
1-59 of a district during creation and construction periods] including,
1-60 but not limited to, the following:
1-61 (1) interest during construction [organizational,
1-62 administrative, and operating expenses];
1-63 (2) capitalized interest not to exceed three years'
1-64 interest;
2-1 (3) reasonable and necessary reserve funds not to
2-2 exceed two years' interest;
2-3 (4) interest on funds advanced to the district;
2-4 (5) financial advisor, bond counsel, attorney, and
2-5 other consultant fees;
2-6 (6) paying agent, registrar, and escrow agent fees;
2-7 (7) right-of-way acquisition;
2-8 (8) underwriter's discounts or premiums;
2-9 (9) engineering fees;
2-10 (10) commission and attorney general fees;
2-11 (11) printing costs;
2-12 (12) all organizational, administrative, and operating
2-13 costs during creation and construction periods; and
2-14 (13) the cost of investigation and making plans[;]
2-15 [(3) the cost of the engineer's report;]
2-16 [(4) legal fees; and]
2-17 [(5) any other incidental expenses].
2-18 (b) For purposes of this section, construction periods shall
2-19 mean any periods during which the district is constructing its
2-20 facilities or there is construction by third parties of above
2-21 ground improvements within the district, but in no event longer
2-22 than five years.
2-23 (c) The district may reimburse any person for money advanced
2-24 for the purposes in Subsection (a) and may be charged interest on
2-25 such funds.
2-26 (d) These payments may be made from money obtained from the
2-27 issuance of notes or the sale of bonds issued by the district or
2-28 out of maintenance taxes or other revenues of the district.
2-29 SECTION 4. Section 49.211, Water Code, is amended by adding
2-30 Subsection (e) to read as follows:
2-31 (e) A district that is authorized by law to engage in
2-32 drainage or flood control activities may include among the
2-33 district's land, works, improvements, facilities, plants,
2-34 equipment, and appliances the following areas and projects
2-35 associated with drainage or flood control projects of the district:
2-36 (1) stormwater retention or detention lands and
2-37 projects;
2-38 (2) sedimentation basins;
2-39 (3) floodplain and wetlands mitigation lands and
2-40 projects;
2-41 (4) habitat reconstruction or restoration lands and
2-42 projects; and
2-43 (5) any temporary, permanent, constant, or variable
2-44 level impoundments of water related to projects in this subsection.
2-45 SECTION 5. Section 49.212, Water Code, is amended by
2-46 amending Subsection (a) and adding Subsection (e) to read as
2-47 follows:
2-48 (a) A district may adopt and enforce all necessary charges,
2-49 mandatory fees, or rentals, in addition to taxes, for providing or
2-50 making available any district facility or service, including
2-51 fire-fighting activities provided under Section 49.351.
2-52 (e) Chapter 2007, Government Code, does not apply to a tax
2-53 levied, a standby fee imposed, or a charge, fee, or rental adopted
2-54 or enforced by a district under this chapter, any other chapter of
2-55 this code, or Chapter 395, Local Government Code.
2-56 SECTION 6. Section 49.226, Water Code, is amended to read as
2-57 follows:
2-58 Sec. 49.226. SALE OR EXCHANGE OF REAL [SURPLUS LAND] OR
2-59 PERSONAL PROPERTY. (a) Any personal property valued at more than
2-60 $300 or any land or interest in land owned by the district which is
2-61 found by the board to be surplus and is not needed by the district
2-62 may be sold under order of the board either by public or private
2-63 sale, or the land, interest in land, or personal property may be
2-64 exchanged for other land, interest in land, or personal property
2-65 needed by the district. Except as provided in Subsection (b),
2-66 land, interest in land, or personal property must be exchanged for
2-67 like fair market value, which value may be determined by the
2-68 district.
2-69 (b) Any property dedicated to or acquired by the district
3-1 without expending district funds may be abandoned or released to
3-2 the original grantor, the grantor's heirs, assigns, executors, or
3-3 successors upon terms and conditions deemed necessary or
3-4 advantageous to the district and without receiving compensation for
3-5 such abandonment or release. District property may also be
3-6 abandoned, released, exchanged, or transferred to another district,
3-7 municipality, county, countywide agency, or authority upon terms
3-8 and conditions deemed necessary or advantageous to the district.
3-9 Narrow strips of property resulting from boundary or surveying
3-10 conflicts or similar causes, or from insubstantial encroachments by
3-11 abutting property owners, or property of larger configuration that
3-12 has been subject to encroachments by abutting property owners for
3-13 more than 25 years may be abandoned, released, exchanged, or
3-14 transferred to such abutting owners upon terms and conditions
3-15 deemed necessary or advantageous to the district. Chapter 272,
3-16 Local Government Code, shall not apply to this section
3-17 [subsection].
3-18 (c) Before either a public or a private sale of real
3-19 property [not required by the district], the district shall give
3-20 notice of the intent to sell by publishing notice once a week for
3-21 two consecutive weeks in one or more newspapers with general
3-22 circulation in the district.
3-23 (d) If the district has outstanding bonds secured by a
3-24 pledge of tax revenues, the proceeds of the sale of property [not
3-25 required by the district] shall be applied to retire outstanding
3-26 bonds of the district [when required by the district's applicable
3-27 bond resolutions].
3-28 (e) If the district does not have any outstanding bonds, the
3-29 proceeds derived from the sale of real or [the] personal property
3-30 [or land not required by the district] may be used for any lawful
3-31 purpose.
3-32 SECTION 7. Subchapter H, Chapter 49, Water Code, is amended
3-33 by adding Section 49.233 to read as follows:
3-34 Sec. 49.233. PROHIBITION OF CERTAIN PRIVATE ON-SITE
3-35 FACILITIES. (a) A district that operates a wastewater collection
3-36 system to serve land within its boundaries by rule may prohibit the
3-37 installation of private on-site wastewater holding or treatment
3-38 facilities on land within the district.
3-39 (b) A district that prohibits installation as described by
3-40 Subsection (a) shall agree to reimburse a particular tract the
3-41 costs of connecting the tract to the district's wastewater
3-42 collection system if the distance along public rights-of-way or
3-43 utility easements from the nearest point of the district's
3-44 wastewater collection system to the boundary line of the particular
3-45 tract requiring wastewater collection services is 1,000 feet or
3-46 more, subject to commission rules regarding reimbursement of those
3-47 costs.
3-48 SECTION 8. Subsection (c), Section 49.271, Water Code, is
3-49 amended to read as follows:
3-50 (c) The district may adopt minimum criteria for the
3-51 qualifications of bidders on its construction contracts and for
3-52 sureties issuing payment and performance bonds. For construction
3-53 contracts over $25,000, the district shall require a person who
3-54 bids to submit a certified or cashier's check on a responsible bank
3-55 in the state equal to at least two percent of the total amount of
3-56 the bid, or a bid bond of at least two percent of the total amount
3-57 of the bid issued by a surety legally authorized to do business in
3-58 this state, as a good faith deposit to ensure execution of the
3-59 contract. If the successful bidder fails or refuses to enter into
3-60 a proper contract with the district, or fails or refuses to furnish
3-61 the payment and performance bonds [bond] required by law, the
3-62 bidder forfeits the deposit. The payment, performance, and bid
3-63 bonding requirements of this subsection do not apply to contracts
3-64 for the purchase of equipment, materials, and machinery not
3-65 otherwise incorporated into a construction project.
3-66 SECTION 9. Subsections (i) and (j), Section 49.273, Water
3-67 Code, are amended to read as follows:
3-68 (i) If changes in plans or specifications are necessary
3-69 after the performance of the contract is begun or if it is
4-1 necessary to decrease or increase the quantity of the work to be
4-2 performed or of the materials, equipment, or supplies to be
4-3 furnished, the board may approve change orders making the changes.
4-4 The original contract price may not be increased by more than 10
4-5 percent of the aggregate of those change orders. Additional change
4-6 orders [Change orders to contracts] may be issued only as a result
4-7 of unanticipated conditions encountered during construction,
4-8 repair, or renovation or changes in regulatory criteria or to
4-9 facilitate project coordination with other political entities.
4-10 (j) The board is not required to advertise or seek
4-11 competitive bids for the repair of district facilities if the scope
4-12 or extent of the repair work cannot be readily ascertained or if
4-13 the nature of the repair work does not readily lend itself to
4-14 competitive bidding [by the district's operator if the cost of the
4-15 repair is less than or equal to the advertising requirements of
4-16 this section].
4-17 SECTION 10. Subchapter I, Chapter 49, Water Code, is amended
4-18 by adding Section 49.279 to read as follows:
4-19 Sec. 49.279. PREVAILING WAGE RATES. In addition to the
4-20 alternative procedures provided by Section 2258.022, Government
4-21 Code:
4-22 (1) a district located wholly or partially within one
4-23 or more municipalities or within the extraterritorial jurisdiction
4-24 of one or more municipalities may establish its prevailing wage
4-25 rate for public works by adopting the prevailing wage rate of:
4-26 (A) one of the municipalities; or
4-27 (B) the county in which the district is located;
4-28 and
4-29 (2) a district not located wholly or partially within
4-30 the extraterritorial jurisdiction of any municipality may establish
4-31 the district's prevailing wage rate by adopting the wage rate of
4-32 the county in which the district is located.
4-33 SECTION 11. Subsection (a), Section 49.304, Water Code, is
4-34 amended to read as follows:
4-35 (a) If the board determines that an exclusion hearing should
4-36 be held as provided in Section 49.303(a) or (c), or if a written
4-37 petition requesting an exclusion hearing is filed with the
4-38 secretary of the board as provided in Section 49.303(b) [49.303],
4-39 the board shall give notice of the time and place of a hearing to
4-40 announce its own conclusions relating to land or other property to
4-41 be excluded and to receive petitions for exclusion of land or other
4-42 property.
4-43 SECTION 12. Subchapter J, Chapter 49, Water Code, is amended
4-44 by adding Section 49.315 to read as follows:
4-45 Sec. 49.315. ADDING AND EXCLUDING LAND BEFORE CONFIRMATION.
4-46 (a) A district may add or exclude land in accordance with this
4-47 subchapter:
4-48 (1) after a district is created by order of the
4-49 commission or another governmental entity or by special Act of the
4-50 legislature; and
4-51 (2) before an election is held as required by Section
4-52 49.102.
4-53 (b) If land is added or excluded as provided by this
4-54 section, the election to confirm the district required by Section
4-55 49.102 shall be to confirm the district as modified.
4-56 SECTION 13. Section 49.327, Water Code, is amended to read
4-57 as follows:
4-58 Sec. 49.327. ASSETS ESCHEAT TO STATE. (a) Upon the
4-59 dissolution of a district by the commission, all assets of the
4-60 district shall escheat to the State of Texas. The assets shall be
4-61 administered by the comptroller and shall be disposed of in the
4-62 manner provided by Chapter 74, Property Code.
4-63 (b) Title 6, Property Code, does not apply to any personal
4-64 property held by a district that has not been dissolved by order of
4-65 the commission.
4-66 SECTION 14. Subsections (a), (b), (c), and (g) through (j),
4-67 Section 49.351, Water Code, are amended to read as follows:
4-68 (a) A district providing potable water or sewer service to
4-69 household users may establish, operate, and maintain a fire
5-1 department to perform all fire-fighting activities within the
5-2 district as provided in this subchapter and may issue bonds or
5-3 impose a mandatory fee, with voter approval, [bonds] for financing
5-4 a plan approved in accordance with this section, [the establishment
5-5 of the fire department] including the construction and purchase of
5-6 necessary buildings, facilities, land, and equipment and the
5-7 provision of an adequate water supply.
5-8 (b) After approval of the district electors of a plan to
5-9 operate, [or] jointly operate, or jointly fund the operation of a
5-10 fire department and after complying with Subsections (g), (h), and
5-11 (i), the district or districts shall provide an adequate system and
5-12 water supply for fire-fighting purposes, may purchase necessary
5-13 land, may construct and purchase necessary buildings, facilities,
5-14 and equipment, and may employ or contract with a fire department to
5-15 employ all necessary personnel including supervisory personnel to
5-16 operate the fire department.
5-17 (c) Bonds [issued] for financing a plan approved in
5-18 accordance with this section [establishment of the fire department]
5-19 shall be authorized and may be issued, and a district shall be
5-20 authorized to levy a tax to pay the principal of and interest on
5-21 such bonds, as provided by law for authorization and issuance of
5-22 other bonds of the district.
5-23 (g) A district or districts proposing to act jointly shall
5-24 develop a detailed plan for the establishment, operation, and
5-25 maintenance of the proposed department, including a detailed
5-26 presentation of all financial requirements. If a district is
5-27 entering into a contract under Subsection (e), the district shall
5-28 develop a plan that describes [in detail] the contract and
5-29 [facilities and equipment to be devoted to service to the district
5-30 and all proposals for providing the service and that] includes a
5-31 presentation of the financial requirements under the contract. A
5-32 plan required by this subsection may be included in a plan or
5-33 report otherwise required by this title for the creation of a
5-34 district or may be submitted to the commission for approval any
5-35 time after the creation of the district. [Before adoption of a
5-36 plan and any contract by the district, the board shall hold a
5-37 hearing at which any person residing in the district may present
5-38 testimony for and against the proposed plan and any proposed
5-39 contract. Notice of the hearing and the place at which the plan
5-40 and any contract may be examined shall be posted in two public
5-41 places within the district at least 10 days before the date of the
5-42 hearing.]
5-43 (h) If no plan was approved by the commission at the time of
5-44 the district's creation, after [After] adoption of the plan and any
5-45 contract by the board, the plan and financial presentation,
5-46 together with any contract and a written report in a form
5-47 prescribed by the executive director describing existing fire
5-48 departments and fire-fighting services available within 25 miles of
5-49 the boundaries of the district, shall be submitted to the executive
5-50 director for consideration by the commission under rules adopted by
5-51 the commission. [Before approval or disapproval, the commission
5-52 shall hold a hearing. Notice of the hearing before the commission
5-53 shall be posted by the board in at least two public places in the
5-54 district at least five days before the hearing.] Before the
5-55 commission approves the application, it must find that it is
5-56 economically feasible for the district to implement the plan and
5-57 meet the provisions of any contract and shall take into
5-58 consideration in giving its approval the general financial
5-59 condition of the district and the economic feasibility of the
5-60 district carrying out the plan or meeting the obligations of the
5-61 contract. A plan approved by the commission as part of the
5-62 creation of a district does not require further commission approval
5-63 unless the district materially alters the plan.
5-64 (i) After approval of a plan by the commission, the district
5-65 shall submit to the electors of the district at the election to
5-66 approve bonds or to impose a mandatory fee for financing the plan,
5-67 or if no bonds or fees are to be approved, at an election called
5-68 for approval of the plan, which may be held in conjunction with an
5-69 election required by Section 49.102, the proposition of whether or
6-1 not the plan should be implemented or entered into by the district.
6-2 The ballots at the election shall be printed, as applicable, to
6-3 provide for voting for or against the proposition: "The
6-4 implementation of the plan for (operation/joint operation) of a
6-5 fire department"; or "The plan and contract to provide
6-6 fire-fighting services for the district."
6-7 (j) [No funds of the district may be used to establish a
6-8 fire department, to enter into joint operation of a fire
6-9 department, or to contract for fire-fighting services without the
6-10 approval of a plan by the electors as provided in this section.
6-11 However, the district may use available funds for preparation of a
6-12 plan and any contract.] The operation of a fire department or
6-13 provision of fire-fighting services is an essential public
6-14 necessity, and a district may discontinue any and all services,
6-15 including water and sewer service, to any person who fails to
6-16 timely pay fire department service fees or any other assessment
6-17 adopted by the district to support the fire department or the
6-18 provision of fire-fighting services.
6-19 SECTION 15. Section 49.452, Water Code, is amended to read
6-20 as follows:
6-21 Sec. 49.452. NOTICE TO PURCHASERS. (a)(1) Any person who
6-22 proposes to sell or convey real property located in a district
6-23 created under this title or by a special Act of the legislature
6-24 that is providing or proposing to provide, as the district's
6-25 principal function, water, sanitary sewer, drainage, and flood
6-26 control or protection facilities or services, or any of these
6-27 facilities or services that have been financed or are proposed to
6-28 be financed with bonds of the district payable in whole or part
6-29 from taxes of the district, or by imposition of a standby fee, if
6-30 any, to household or commercial users, other than agricultural,
6-31 irrigation, or industrial users, and which district includes less
6-32 than all the territory in at least one county and which, if located
6-33 within the corporate area of a city, includes less than 75 percent
6-34 of the incorporated area of the city or which is located outside
6-35 the corporate area of a city in whole or in substantial part, must
6-36 first give to the purchaser the written notice provided in this
6-37 section.
6-38 (2) The provisions of this section shall not be
6-39 applicable to:
6-40 (A) transfers of title under any type of lien
6-41 foreclosure;
6-42 (B) transfers of title by deed in cancellation
6-43 of indebtedness secured by a lien upon the property conveyed; [or]
6-44 (C) transfers of title by reason of a will or
6-45 probate proceedings; or
6-46 (D) transfers of title to a governmental entity.
6-47 (b) The prescribed notice for [all] districts located in
6-48 whole or in part in the extraterritorial jurisdiction of one or
6-49 more home-rule municipalities, but not within the corporate limits
6-50 of a municipality, shall be executed by the seller and shall read
6-51 as follows:
6-52 "The real property, described below, that you are about to
6-53 purchase is located in the ___________________ District. The
6-54 district has taxing authority separate from any other taxing
6-55 authority and may, subject to voter approval, issue an unlimited
6-56 amount of bonds and levy an unlimited rate of tax in payment of
6-57 such bonds. As of this date, the rate of taxes levied by the
6-58 district on real property located in the district is $__________ on
6-59 each $100 of assessed valuation. If the district has not yet
6-60 levied taxes, the most recent projected rate of [debt service] tax,
6-61 as of this date, is $__________ on each $100 of assessed valuation.
6-62 The total amount of bonds approved by the voters and which have
6-63 been or may, at this date, be issued (excluding refunding bonds and
6-64 any bonds or portion of bonds issued payable solely from revenues
6-65 received or expected to be received under a contract with a
6-66 governmental entity) is $__________, and the aggregate initial
6-67 principal amounts of all bonds issued for one or more of the
6-68 specified facilities of the district and payable in whole or in
6-69 part from property taxes (excluding refunding bonds and any bonds
7-1 or portion of bonds issued payable solely from revenues received or
7-2 expected to be received under a contract with a governmental
7-3 entity) is $__________.
7-4 "The district has the authority to adopt and impose a standby
7-5 fee on property in the district that has water, sanitary sewer, or
7-6 drainage facilities and services available but not connected and
7-7 which does not have a house, building, or other improvement located
7-8 thereon and does not substantially utilize the utility capacity
7-9 available to the property. The district may exercise the authority
7-10 without holding an election on the matter. As of this date, the
7-11 most recent amount of the standby fee is $__________. An unpaid
7-12 standby fee is a personal obligation of the person that owned the
7-13 property at the time of imposition and is secured by a lien on the
7-14 property. Any person may request a certificate from the district
7-15 stating the amount, if any, of unpaid standby fees on a tract of
7-16 property in the district.
7-17 "The district is located in whole or in part in the
7-18 extraterritorial jurisdiction ('ETJ') of the City(s) of __________.
7-19 Generally, a district located entirely within the ETJ of one or
7-20 more cities may be annexed by the city or cities without the
7-21 consent of the district or the voters of the district and the
7-22 district may be dissolved after annexation occurs, subject to
7-23 applicable law.
7-24 "The purpose of this district is to provide water, sewer,
7-25 drainage, or flood control facilities and services within the
7-26 district through the issuance of bonds payable in whole or in part
7-27 from property taxes. The cost of these utility facilities is not
7-28 included in the purchase price of your property, and these utility
7-29 facilities are owned or to be owned by the district. The legal
7-30 description of the property you are acquiring is as follows:
7-31 ___________________________________________________________________
7-32 ____________________ (Date)
7-33 ___________________________
7-34 Signature of Seller
7-35 PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM
7-36 IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME. THE DISTRICT
7-37 ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER
7-38 THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE
7-39 TAX RATES ARE APPROVED BY THE DISTRICT. PURCHASER IS ADVISED TO
7-40 CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR
7-41 PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.
7-42 "The undersigned purchaser hereby acknowledges receipt of the
7-43 foregoing notice at or prior to execution of a binding contract for
7-44 the purchase of the real property described in such notice or at
7-45 closing of purchase of the real property.
7-46 ___________________________________________________________________
7-47 ______________________ (Date)
7-48 _____________________________
7-49 Signature of Purchaser
7-50 "(Note: Correct district name, tax rate, bond amounts, and
7-51 legal description are to be placed in the appropriate space.)
7-52 Except for notices included as an addendum or paragraph of a
7-53 purchase contract, the notice shall be executed by the seller and
7-54 purchaser, as indicated. If the district does not propose to
7-55 provide one or more of the specified facilities and services, the
7-56 appropriate purpose may be eliminated. If the district has not yet
7-57 levied taxes, a statement of the district's most recent projected
7-58 rate of [debt service] tax is to be placed in the appropriate
7-59 space. If the district does not have approval from the commission
7-60 to adopt and impose a standby fee, the second paragraph of the
7-61 notice may be deleted. For the purposes of the notice form
7-62 required to be given to the prospective purchaser prior to
7-63 execution of a binding contract of sale and purchase, a seller and
7-64 any agent, representative, or person acting on the seller's behalf
7-65 may modify the notice by substitution of the words 'January 1,
7-66 ______' for the words 'this date' and place the correct calendar
7-67 year in the appropriate space."
7-68 (c) The prescribed notice for districts located in whole or
7-69 in part within the corporate limits of a municipality shall be
8-1 executed by the seller and shall read as follows:
8-2 "The real property, described below, that you are about to
8-3 purchase is located in the _____ District. The district has taxing
8-4 authority separate from any other taxing authority and may, subject
8-5 to voter approval, issue an unlimited amount of bonds and levy an
8-6 unlimited rate of tax in payment of such bonds. As of this date,
8-7 the rate of taxes levied by the district on real property located
8-8 in the district is $_______ on each $100 of assessed valuation. If
8-9 the district has not yet levied taxes, the most recent projected
8-10 rate of tax, as of this date, is $_______ on each $100 of assessed
8-11 valuation. The total amount of bonds approved by the voters and
8-12 which have been or may, at this date, be issued (excluding
8-13 refunding bonds and any bonds or portion of bonds issued payable
8-14 solely from revenues received or expected to be received under a
8-15 contract with a governmental entity) is $_________, and the
8-16 aggregate initial principal amounts of all bonds issued for one or
8-17 more of the specified facilities of the district and payable in
8-18 whole or in part from property taxes (excluding refunding bonds and
8-19 any bonds or portion of bonds issued payable solely from revenues
8-20 received or expected to be received under a contract with a
8-21 governmental entity) is $________.
8-22 "The district has the authority to adopt and impose a standby
8-23 fee on property in the district that has water, sanitary sewer, or
8-24 drainage facilities and services available but not connected and
8-25 which does not have a house, building, or other improvement located
8-26 thereon and does not substantially utilize the utility capacity
8-27 available to the property. The district may exercise the authority
8-28 without holding an election on the matter. As of this date, the
8-29 most recent amount of the standby fee is $________. An unpaid
8-30 standby fee is a personal obligation of the person that owned the
8-31 property at the time of imposition and is secured by a lien on the
8-32 property. Any person may request a certificate from the district
8-33 stating the amount, if any, of unpaid standby fees on a tract of
8-34 property in the district.
8-35 "The district is located in whole or in part within the
8-36 City(s) of _______________. District taxpayers are subject to the
8-37 taxes of the city(s) in addition to any district taxes during the
8-38 life of the district. Generally, an in-city district can be
8-39 dissolved by city ordinance without the consent of the district or
8-40 the voters of the district, subject to applicable laws.
8-41 "The purpose of this district is to provide water, sewer,
8-42 drainage, or flood control facilities and services within the
8-43 district through the issuance of bonds payable in whole or in part
8-44 from property taxes. The cost of these utility facilities is not
8-45 included in the purchase price of your property, and these utility
8-46 facilities are owned or to be owned by the district. The legal
8-47 description of the property you are acquiring is as follows:
8-48 ___________________________________________________________________
8-49 _______________________(Date)
8-50 _____________________________
8-51 Signature of Seller
8-52 PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM
8-53 IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME. THE DISTRICT
8-54 ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER
8-55 THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE
8-56 TAX RATES ARE APPROVED BY THE DISTRICT. PURCHASER IS ADVISED TO
8-57 CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR
8-58 PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.
8-59 "The undersigned purchaser hereby acknowledges receipt of the
8-60 foregoing notice at or prior to execution of a binding contract for
8-61 the purchase of the real property described in such notice or at
8-62 closing of purchase of the real property.
8-63 ___________________________________________________________________
8-64 _______________________(Date)
8-65 _____________________________
8-66 Signature of Purchaser
8-67 "(Note: Correct district name, tax rate, bond amounts, and
8-68 legal description are to be placed in the appropriate space.)
8-69 Except for notices included as an addendum or paragraph of a
9-1 purchase contract, the notice shall be executed by the seller and
9-2 purchaser, as indicated. If the district does not propose to
9-3 provide one or more of the specified facilities and services, the
9-4 appropriate purpose may be eliminated. If the district has not yet
9-5 levied taxes, a statement of the district's most recent projected
9-6 rate of tax is to be placed in the appropriate space. If the
9-7 district does not have approval from the commission to adopt and
9-8 impose a standby fee, the second paragraph of the notice may be
9-9 deleted. For the purposes of the notice form required to be given
9-10 to the prospective purchaser before execution of a binding contract
9-11 of sale and purchase, a seller and any agent, representative, or
9-12 person acting on the seller's behalf may modify the notice by
9-13 substitution of the words 'January 1, _____' for the words 'this
9-14 date' and place the correct calendar year in the appropriate
9-15 space."
9-16 (d) The prescribed notice for districts not located in whole
9-17 or in part within the corporate limits of a municipality, or in
9-18 whole or in part in the extraterritorial jurisdiction of one or
9-19 more home-rule municipalities, shall be executed by the seller and
9-20 shall read as follows:
9-21 "The real property, described below, that you are about to
9-22 purchase is located in the _____ District. The district has taxing
9-23 authority separate from any other taxing authority and may, subject
9-24 to voter approval, issue an unlimited amount of bonds and levy an
9-25 unlimited rate of tax in payment of such bonds. As of this date,
9-26 the rate of taxes levied by the district on real property located
9-27 in the district is $_______ on each $100 of assessed valuation. If
9-28 the district has not yet levied taxes, the most recent projected
9-29 rate of tax, as of this date, is $_______ on each $100 of assessed
9-30 valuation. The total amount of bonds approved by the voters and
9-31 which have been or may, at this date, be issued (excluding
9-32 refunding bonds and any bonds or portion of bonds issued payable
9-33 solely from revenues received or expected to be received under a
9-34 contract with a governmental entity) is $_________, and the
9-35 aggregate initial principal amounts of all bonds issued for one or
9-36 more of the specified facilities of the district and payable in
9-37 whole or in part from property taxes (excluding refunding bonds and
9-38 any bonds or portion of bonds issued payable solely from revenues
9-39 received or expected to be received under a contract with a
9-40 governmental entity) is $________.
9-41 "The district has the authority to adopt and impose a standby
9-42 fee on property in the district that has water, sanitary sewer, or
9-43 drainage facilities and services available but not connected and
9-44 which does not have a house, building, or other improvement located
9-45 thereon and does not substantially utilize the utility capacity
9-46 available to the property. The district may exercise the authority
9-47 without holding an election on the matter. As of this date, the
9-48 most recent amount of the standby fee is $________. An unpaid
9-49 standby fee is a personal obligation of the person that owned the
9-50 property at the time of imposition and is secured by a lien on the
9-51 property. Any person may request a certificate from the district
9-52 stating the amount, if any, of unpaid standby fees on a tract of
9-53 property in the district.
9-54 "The purpose of this district is to provide water, sewer,
9-55 drainage, or flood control facilities and services within the
9-56 district through the issuance of bonds payable in whole or in part
9-57 from property taxes. The cost of these utility facilities is not
9-58 included in the purchase price of your property, and these utility
9-59 facilities are owned or to be owned by the district. The legal
9-60 description of the property you are acquiring is as follows:
9-61 ___________________________________________________________________
9-62 _______________________(Date)
9-63 _____________________________
9-64 Signature of Seller
9-65 PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM
9-66 IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME. THE DISTRICT
9-67 ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER
9-68 THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE
9-69 TAX RATES ARE APPROVED BY THE DISTRICT. PURCHASER IS ADVISED TO
10-1 CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR
10-2 PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.
10-3 "The undersigned purchaser hereby acknowledges receipt of the
10-4 foregoing notice at or prior to execution of a binding contract for
10-5 the purchase of the real property described in such notice or at
10-6 closing of purchase of the real property.
10-7 ___________________________________________________________________
10-8 _______________________(Date)
10-9 _____________________________
10-10 Signature of Purchaser
10-11 "(Note: Correct district name, tax rate, bond amounts, and
10-12 legal description are to be placed in the appropriate space.)
10-13 Except for notices included as an addendum or paragraph of a
10-14 purchase contract, the notice shall be executed by the seller and
10-15 purchaser, as indicated. If the district does not propose to
10-16 provide one or more of the specified facilities and services, the
10-17 appropriate purpose may be eliminated. If the district has not yet
10-18 levied taxes, a statement of the district's most recent projected
10-19 rate of tax is to be placed in the appropriate space. If the
10-20 district does not have approval from the commission to adopt and
10-21 impose a standby fee, the second paragraph of the notice may be
10-22 deleted. For the purposes of the notice form required to be given
10-23 to the prospective purchaser prior to execution of a binding
10-24 contract of sale and purchase, a seller and any agent,
10-25 representative, or person acting on the seller's behalf may modify
10-26 the notice by substitution of the words 'January 1, _____' for the
10-27 words 'this date' and place the correct calendar year in the
10-28 appropriate space."
10-29 (e) If the law regarding annexation or district dissolution
10-30 is changed, causing inaccuracies in the content of the notices as
10-31 provided by this section, the district shall revise the content of
10-32 the notice to accurately reflect the current law.
10-33 (f) The notice required by this section shall be given to
10-34 the prospective purchaser prior to execution of a binding contract
10-35 of sale and purchase either separately or as an addendum or
10-36 paragraph of a purchase contract. In the event a contract of
10-37 purchase and sale is entered into without the seller providing the
10-38 notice required by this subsection, the purchaser shall be entitled
10-39 to terminate the contract. If, however, the seller furnishes the
10-40 required notice at or prior to closing the purchase and sale
10-41 contract and the purchaser elects to close even though such notice
10-42 was not timely furnished prior to execution of the contract, it
10-43 shall be conclusively presumed that the purchaser has waived all
10-44 rights to terminate the contract and recover damages or other
10-45 remedies or rights under the provisions of this section.
10-46 Notwithstanding any provision of this subchapter to the contrary,
10-47 all sellers, title companies, and examining attorneys, and any
10-48 agent, representative, or person acting on their behalf, shall not
10-49 be liable for damages under the provisions of either Subsection (o)
10-50 [(l)] or (p) [(m)] or liable for any other damages to any person
10-51 for failure to provide the notice required by this section to a
10-52 purchaser prior to execution of a binding contract of a purchase
10-53 and sale when the district has not filed the information form and
10-54 map or plat as required under Section 49.455.
10-55 (g) [(d)] The purchaser shall sign the notice or purchase
10-56 contract including such notice to evidence the receipt of notice.
10-57 (h) [(e)] At the closing of purchase and sale, a separate
10-58 copy of such notice with current information shall be executed by
10-59 the seller and purchaser, acknowledged, and thereafter recorded in
10-60 the deed records of the county in which the property is located.
10-61 For the purposes of this section, all sellers, title companies, and
10-62 examining attorneys, and any agent, representative, or person
10-63 acting on their behalf, shall be entitled to rely on the accuracy
10-64 of the information form and map or plat as last filed by each
10-65 district under Section 49.455 or the information contained in or
10-66 shown on the notice form issued by the district under Section
10-67 49.453 in completing the notice form to be executed by the seller
10-68 and purchaser at the closing of purchase and sale. Any information
10-69 taken from the information form or map or plat as last filed by
11-1 each district and the information contained in or shown on the
11-2 notice form issued by the district under Section 49.453 shall be,
11-3 for purposes of this section, conclusively presumed as a matter of
11-4 law to be correct. All subsequent sellers, purchasers, title
11-5 insurance companies, examining attorneys, and lienholders shall be
11-6 entitled to rely upon the information form and map or plat filed by
11-7 the district or the notice form issued by the district under
11-8 Section 49.453.
11-9 (i) [(f)] For the purposes of this section, an executory
11-10 contract of purchase and sale having a performance period of more
11-11 than six months shall be considered a sale under Subsection (a).
11-12 (j) [(g)] For the purposes of the notice form to be given to
11-13 the prospective purchaser prior to execution of a binding contract
11-14 of sale and purchase, a seller and any agent, representative, or
11-15 person acting in the seller's behalf may modify the notice by
11-16 substitution of the words "January 1, ____" for the words "this
11-17 date" and place the correct calendar year in the appropriate space.
11-18 All sellers, and all persons completing the prescribed notice in
11-19 the sellers' behalf, shall be entitled to rely on the information
11-20 contained in or shown on the information form and map or plat filed
11-21 of record by the district under Section 49.455 in completing the
11-22 prescribed form to be given to the prospective purchaser prior to
11-23 execution of a binding contract of sale and purchase. Except as
11-24 otherwise provided in Subsection (h) [(e)], any information taken
11-25 from the information form or map or plat filed of record by the
11-26 district in effect as of January 1 of each year shall be, for
11-27 purposes of the notice to be given to the prospective purchaser
11-28 prior to execution of a binding contract of sale and purchase,
11-29 conclusively presumed as a matter of law to be correct for the
11-30 period January 1 through December 31 of such calendar year. A
11-31 seller and any persons completing the prescribed notice in the
11-32 seller's behalf may provide more recent information, if available,
11-33 than the information contained in or shown on the information form
11-34 and map or plat filed of record by the district under Section
11-35 49.455 in effect as of January 1 of each year in completing the
11-36 prescribed form to be given to the purchaser prior to execution of
11-37 a binding contract of sale and purchase. Nothing contained in the
11-38 preceding sentence shall be construed to create an affirmative duty
11-39 on the part of a seller or any persons completing the prescribed
11-40 notice in the seller's behalf to provide more recent information
11-41 than the information taken from the information form and map or
11-42 plat filed of record by the district as of January 1 of each year
11-43 in completing the prescribed notice to be given to the purchaser
11-44 prior to execution of a binding contract of sale and purchase. All
11-45 subsequent sellers, purchasers, title insurance companies,
11-46 examining attorneys, and lienholders shall be entitled to rely upon
11-47 the information form and map or plat filed by the district.
11-48 (k) [(h)] If such notice is given at closing as provided in
11-49 Subsection (h) [(e)], a purchaser, or the purchaser's heirs,
11-50 successors, or assigns, shall not be entitled to maintain any
11-51 action for damages or maintain any action against a seller, title
11-52 insurance company, or lienholder, or any agent, representative, or
11-53 person acting in their behalf, by reason of use by the seller of
11-54 the information filed for record by the district or reliance by the
11-55 seller on the filed plat and filed legal description of the
11-56 district in determining whether the property to be sold and
11-57 purchased is within the district. No action may be maintained
11-58 against any title company for failure to disclose the inclusion of
11-59 the described real property within a district when the district has
11-60 not filed for record the information form, map, or plat with the
11-61 clerk of the county or counties in which the district is located.
11-62 (l) [(i)] Any purchaser who purchases any real property in a
11-63 district and who thereafter sells or conveys the same shall on
11-64 closing of such subsequent sale be conclusively considered as
11-65 having waived any prior right to damages under this section.
11-66 (m) [(j)] It is the express intent of this section that all
11-67 sellers, title insurance companies, examining attorneys, vendors of
11-68 property and tax information, real estate brokers, and lienholders,
11-69 and any agent, representative, or person acting on their behalf,
12-1 shall be entitled to rely on the accuracy of the information form
12-2 and map or plat as last filed by each district or the information
12-3 contained in or shown on the notice form issued by the district
12-4 under Section 49.453, or for the purposes of the notice to be given
12-5 the purchaser prior to execution of a binding contract of sale and
12-6 purchase the information contained in or shown on the information
12-7 form and map or plat filed of record by the district in effect as
12-8 of January 1 of each year for the period January 1 through December
12-9 31 of such calendar year.
12-10 (n) [(k)] Except as otherwise provided in Subsection (f)
12-11 [(c)], if any sale or conveyance of real property within a district
12-12 is not made in compliance with the provisions of this section, the
12-13 purchaser may institute a suit for damages under the provisions of
12-14 either Subsection (o) [(l)] or (p) [(m)].
12-15 (o) [(l)] A purchaser of real property covered by the
12-16 provisions of this section, if the sale or conveyance of the
12-17 property is not made in compliance with this section, may institute
12-18 a suit for damages in the amount of all costs relative to the
12-19 purchase of the property plus interest and reasonable attorney's
12-20 fees. The suit for damages may be instituted jointly or severally
12-21 against the person, firm, corporation, partnership, organization,
12-22 business trust, estate, trust, association, or other legal entity
12-23 that sold or conveyed the property to the purchaser. Following the
12-24 recovery of damages under this subsection, the amount of the
12-25 damages shall first be paid to satisfy all unpaid obligations on
12-26 each outstanding lien or liens on the property and the remainder of
12-27 the damage amount shall be paid to the purchaser. On payment of
12-28 all damages respectively to the lienholders and purchaser, the
12-29 purchaser shall reconvey the property to the seller.
12-30 (p) [(m)] A purchaser of real property covered by the
12-31 provisions of this section, if the sale or conveyance of the
12-32 property is not made in compliance with this section, may institute
12-33 a suit for damages in an amount not to exceed $5,000, plus
12-34 reasonable attorney's fees.
12-35 (q) [(n)] A purchaser is not entitled to recover damages
12-36 under both Subsections (o) [(l)] and (p) [(m)], and entry of a
12-37 final decision awarding damages to the purchaser under either
12-38 Subsection (o) [(l)] or (p) [(m)] shall preclude the purchaser from
12-39 recovering damages under the other subsection. Notwithstanding any
12-40 part or provision of the general or special laws or the common law
12-41 of the state to the contrary, the relief provided under Subsections
12-42 (o) [(l)] and (p) [(m)] shall be the exclusive remedies for a
12-43 purchaser aggrieved by the seller's failure to comply with the
12-44 provisions of this section. Any action for damages shall not,
12-45 however, apply to, affect, alter, or impair the validity of any
12-46 existing vendor's lien, mechanic's lien, or deed of trust lien on
12-47 the property.
12-48 (r) [(o)] A suit for damages under the provisions of this
12-49 section must be brought within 90 days after the purchaser receives
12-50 the first district tax notice or within four years after the
12-51 property is sold or conveyed to the purchaser, whichever time
12-52 occurs first, or the purchaser loses the right to seek damages
12-53 under this section.
12-54 (s) [(p)] Notwithstanding any provisions of this subchapter
12-55 to the contrary, a purchaser may not recover damages of any kind
12-56 under this section if that person:
12-57 (1) purchases an equity in real property and in
12-58 conjunction with the purchase assumes any liens, whether purchase
12-59 money or otherwise; and
12-60 (2) does not require proof of title by abstract, title
12-61 policy, or any other proof of title.
12-62 SECTION 16. Section 54.236, Water Code, is amended to read
12-63 as follows:
12-64 Sec. 54.236. STREET OR SECURITY LIGHTING. Subject to the
12-65 provisions of this section, a district may purchase, install
12-66 [accept], operate, and maintain street lighting or security
12-67 lighting within public utility easements or public rights-of-way
12-68 within the boundaries of the district. [Such street or security
12-69 lighting facilities must have been constructed by an owner or
13-1 developer of property within the district and must have been
13-2 required by a city as a condition to the city granting its consent
13-3 to the creation of the district pursuant to Section 54.016 of this
13-4 code.] A district may not issue bonds supported by ad valorem
13-5 taxes to pay for the purchase, installation, [development] and
13-6 maintenance of street or security lighting.
13-7 SECTION 17. Subdivision (1), Section 54.772, Water Code, is
13-8 amended to read as follows:
13-9 (1) "Recreational facilities" means parks,
13-10 landscaping, parkways, greenbelts, sidewalks, trails, public
13-11 right-of-way beautification projects, and recreational equipment
13-12 and facilities. The term includes associated street and security
13-13 lighting.
13-14 SECTION 18. Subsection (a), Section 54.774, Water Code, is
13-15 amended to read as follows:
13-16 (a) A district may not issue bonds supported by ad valorem
13-17 taxes to pay for the development and maintenance of recreational
13-18 facilities or street lighting.
13-19 SECTION 19. Subsection (a), Section 57.092, Water Code, is
13-20 amended to read as follows:
13-21 (a) The district may enter into all necessary and proper
13-22 contracts and employ all persons and means necessary to purchase,
13-23 acquire, build, construct, complete, carry out, maintain, protect,
13-24 and in case of necessity, add to and rebuild, all works and
13-25 improvements [within the district] necessary or proper to fully
13-26 accomplish a reclamation plan lawfully adopted for the district.
13-27 SECTION 20. Subchapter D, Chapter 51, Water Code, is amended
13-28 by adding Section 51.131 to read as follows:
13-29 Sec. 51.131. PENALTY FOR VIOLATION OF REGULATION. A person
13-30 who violates a regulation adopted by a district under this chapter
13-31 or other law commits an offense. An offense under this section is
13-32 a Class C misdemeanor.
13-33 SECTION 21. Section 60.350, Water Code, is repealed.
13-34 SECTION 22. (a) The repeal by this Act of Section 60.350,
13-35 Water Code, does not affect the applicability of Section 49.181,
13-36 Water Code, to bonds with regard to which an application and report
13-37 were submitted to the Texas Natural Resource Conservation
13-38 Commission under Subsection (b), Section 49.181, Water Code, before
13-39 the effective date of this Act. Those bonds are governed by
13-40 Section 49.181, Water Code, and Section 60.350, Water Code,
13-41 continues in effect as to those bonds for that purpose.
13-42 (b) The repeal by this Act of Section 60.350, Water Code,
13-43 does not affect the applicability of Section 49.183, Water Code, to
13-44 bonds issued before the effective date of this Act. Those bonds
13-45 are governed by Section 49.183, Water Code, and Section 60.350,
13-46 Water Code, continues in effect as to those bonds for that purpose.
13-47 SECTION 23. This Act takes effect September 1, 1999.
13-48 SECTION 24. The importance of this legislation and the
13-49 crowded condition of the calendars in both houses create an
13-50 emergency and an imperative public necessity that the
13-51 constitutional rule requiring bills to be read on three several
13-52 days in each house be suspended, and this rule is hereby suspended.
13-53 * * * * *