88R4149 DRS-F

By: Parker S.B. No. 1958

A BILL TO BE ENTITLED

AN ACT

relating to certain procedural requirements for public improvement districts and transfers of property located in public improvement districts.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 372.003, Local Government Code, is amended by amending Subsections (b) and (d) and adding Subsection (b-2) to read as follows:

(b) A public improvement project may include:

(1) landscaping;

(2) erection of fountains, distinctive lighting, and signs;

(3) acquiring, constructing, improving, widening, narrowing, closing, or rerouting of sidewalks or of streets, any other roadways, or their rights-of-way;

(4) construction or improvement of pedestrian malls;

(5) acquisition and installation of pieces of art;

(6) acquisition, construction, or improvement of libraries;

(7) acquisition, construction, or improvement of off-street parking facilities;

(8) acquisition, construction, improvement, or rerouting of mass transportation facilities;

(9) acquisition, construction, or improvement of publicly owned water, wastewater, natural gas, electric, canal, or drainage facilities or improvements;

(10) the establishment or improvement of parks;

(11) projects similar to those listed in Subdivisions (1)-(10);

(12) acquisition, by purchase or otherwise, of real property in connection with an authorized improvement;

(13) special supplemental services for improvement and promotion of the district, and for repair and maintenance of those special supplemental services, including services relating to advertising, promotion, health and sanitation, water and wastewater, roadways and sidewalks, public safety, security, business recruitment, development, recreation, and cultural enhancement;

(14) payment of expenses incurred in the establishment, administration, and operation of the district, including payment of costs associated with the issuance of bonds under this chapter; and

(15) the development, rehabilitation, or expansion of affordable housing.

(b-2) A public improvement project is not subject to the bidding or procurement requirements of Chapter 2252 or 2269, Government Code, if at least one-third of the cost of the improvement is or will be paid or secured by:

(1) a special assessment levied on property located inside the public improvement district;

(2) a developer of land located inside the public improvement district; or

(3) a combination of special assessments described by Subdivision (1) and developer commitments described by Subdivision (2).

(d) A county may establish a public improvement district unless within 30 days of a county's action to approve such a district the governing body of[,] a home rule municipality by resolution:

(1) objects to the [its] establishment of the public improvement district within the municipality's corporate limits or extraterritorial jurisdiction; and

(2) gives notice to the county of the municipality's objection to the establishment of the public improvement district and the reasons for the objection.

SECTION 2. Section 372.005, Local Government Code, is amended by adding Subsections (a-1) and (d) to read as follows:

(a-1) The boundaries of a proposed public improvement district described in a petition under this section may include parcels of land that would be contiguous to each other but for separation caused by a natural geographic feature or an existing roadway, easement, or right-of-way that renders the parcels noncontiguous.

(d) Notwithstanding any other provision of this chapter, a statement of the estimated cost of an improvement in a petition under this section does not limit:

(1) the actual cost of an improvement payable by the municipality or county from an assessment levied against property in an improvement district; or

(2) the amount of an assessment that may be levied against property in an improvement district by the governing body of a municipality or county on a determination of the cost of an improvement and the amount of an assessment in a service plan and assessment plan.

SECTION 3. Section 372.009, Local Government Code, is amended by amending Subsection (d) and adding Subsections (e), (f), and (g) to read as follows:

(d) Except as provided by Subsection (e), written [Written] notice containing the information required by Subsection (c) must be mailed before the 15th day before the date of the hearing. The notice must be addressed to "Property Owner" and mailed to the current address of the owner, as reflected on tax rolls, of property subject to assessment under the proposed public improvement district.

(e) A property owner may waive the right to notice under this section if the property owner provides to the municipality or county a written waiver of notice signed by the property owner.

(f) The notice required by this section may describe the boundaries of the proposed assessment district by reference to existing streets and roadways and state that a metes and bounds description or legal description with tax parcel identification numbers of the parcels of property located within the boundaries is on file and available for inspection with the municipality or county.

(g) Notwithstanding any other provision of this chapter, a statement of the estimated cost of an improvement in a notice given by a municipality or county under this section does not limit the authority of the governing body of a municipality or county to levy an assessment that is:

(1) based on the actual cost of an improvement as determined by the governing body; and

(2) less than or greater than the amount of the estimated cost stated in the notice.

SECTION 4. Sections 372.010(b) and (c), Local Government Code, are amended to read as follows:

(b) Not later than the 15th business [seventh] day after the date the governing body of a municipality or county adopts a resolution under Subsection (a), the municipality or county shall record [file] a copy of the resolution in the real property records [with the county clerk] of each county in which all or part of the improvement district is located. Failure to timely record the resolution under this section does not invalidate the establishment of the public improvement district.

(c) If not later than [Actual construction of an improvement may not begin until after] the 20th day after the date the governing body of the municipality or county adopts a resolution under Subsection (a), the municipal or county secretary or other officer performing the duties of the municipal or county secretary receives [authorization takes effect and may not begin if during that 20-day period] written protests signed by at least two-thirds of the owners of record of property within the improvement district or by the owners of record of property comprising at least two-thirds of the total area of the district, the governing body of the municipality or county may convene to determine the sufficiency of the protest and whether to dissolve the district under Section 372.011 [are filed with the municipal or county secretary or other officer performing the duties of the municipal or county secretary]. A person whose name appears on a protest may withdraw the name from the protest at any time before the governing body of the municipality or county convenes to determine the sufficiency of the protest.

SECTION 5. Section 372.012, Local Government Code, is amended to read as follows:

Sec. 372.012. AREA OF DISTRICT. (a) The area of a public improvement district to be assessed according to the findings of the governing body of the municipality or county may be less than the area described in the proposed boundaries stated by the notice under Section 372.009. The area to be assessed may not include property not described by the notice as being within the proposed boundaries of the district unless a hearing is held to include the property and notice for the hearing is given in the same manner as notice under Section 372.009.

(b) The area of a public improvement district may consist of noncontiguous tracts of land, including parcels of land that would be contiguous to each other but for separation caused by a natural geographic feature or an existing roadway, easement, or right-of-way, provided the public improvement projects and services to be implemented and the costs of the projects and services may be apportioned under Section 372.015.

(c) Property included within one public improvement district may be included, wholly or partly, within the boundaries of another public improvement district. Nothing in this chapter may be construed to prohibit the establishment of more than one public improvement district covering the same geographic area.

SECTION 6. Section 372.013, Local Government Code, is amended by amending Subsections (a), (c), (d), and (e) and adding Subsection (f) to read as follows:

(a) The advisory body shall prepare an ongoing service plan and present the plan to the governing body of the municipality or county for review and approval. The service plan may cover the entire improvement district or be limited to a specific area or areas within the district. The governing body may approve the plan only by ordinance or order. The governing body may assign responsibility for the plan to another entity in the absence of an advisory body.

(c) Not later than the seventh day after the date the governing body of a municipality or county approves a service plan, the municipality or county shall record [file] a copy of the plan in the real property records [with the county clerk] of each county in which all or part of the public improvement district is located. Failure to timely record the service plan does not invalidate the approval of the plan or levy of assessments.

(d) The governing body of the municipality or county shall review and update the service plan annually for the purpose of determining the annual budget for improvements and updating the estimated cost of improvements. Except for the service plan for a district described by Section 372.0035, the governing body may amend or update the plan only by ordinance or order.

(e) Not later than the 15th business [seventh] day after the date the governing body of a municipality or county amends or updates the service plan, including the notice form required by Section 5.014, Property Code, the municipality or county shall record notice [file a copy] of the amended or updated plan in the real property records [with the county clerk] of each county in which all or part of the public improvement district is located. The notice must explain how to obtain a complete copy of the amended or updated service plan from the municipality or county. Failure to timely record notice of the amended or updated service plan does not invalidate the approval of the amended or updated plan.

(f) If the governing body of a municipality or county amends or updates the service plan in connection with the levy of an assessment, the municipality or county shall, not later than the 15th business day after the date the governing body of the municipality or county amends or updates the service plan for the levy of the assessment, record a copy of the amended or updated plan in the real property records of each county in which all or part of the public improvement district is located. Failure to timely record the amended or updated service plan does not invalidate the approval of the amended or updated plan.

SECTION 7. Sections 372.014(a) and (b), Local Government Code, are amended to read as follows:

(a) An assessment plan must be included in the annual service plan. The assessment plan may cover the entire improvement district or be limited to a specific area or areas within the district.

(b) The municipality or county is responsible for payment of assessments against exempt municipal or county property in the district if assessments are levied on exempt municipal or county property in the district. The municipality or county may designate an alternative means of financing the share of costs allocable to municipal or county property other than by assessment in an assessment plan. Payment of assessments by other exempt jurisdictions must be established by contract. [An assessment paid by the municipality or county under this subsection is considered to have been paid by special assessment for the purposes of Subsection (a).]

SECTION 8. Section 372.015, Local Government Code, is amended by adding Subsections (e) and (f) to read as follows:

(e) If an improvement confers a special benefit on the entire improvement district as a whole, the governing body of a municipality or county may:

(1) assess the cost of the improvement against property in the entire district in a single assessment; or

(2) apportion the cost of the improvement to be assessed against property located in a specific area within the district with separate assessments.

(f) The governing body of a municipality or county shall include apportionment of the cost of an improvement under Subsection (a) in an updated assessment plan approved under Section 372.013(d).

SECTION 9. Section 372.016, Local Government Code, is amended by amending Subsection (c) and adding Subsections (d) and (e) to read as follows:

(c) Except as provided by Subsection (d), when [When] the assessment roll is filed under Subsection (b), the municipal secretary or other officer shall mail to the owners of property liable for assessment a notice of the hearing. The notice must contain the information required by Subsection (b) and the secretary or other officer shall mail the notice to the last known address of the property owner. The failure of a property owner to receive notice does not invalidate the proceeding.

(d) A property owner may waive the right to notice under this section if the property owner provides to the municipality or county a written waiver of notice signed by the property owner.

(e) If a proposed assessment roll to be considered by the governing body of a municipality or county at a public hearing includes an updated assessment against property owned by a property owner who has waived notice of the hearing under this section, the governing body of the municipality or county may include for public inspection the updated proposed assessment roll in the posted agenda for the hearing.

SECTION 10. Section 372.017, Local Government Code, is amended by amending Subsections (a) and (b) and adding Subsection (c) to read as follows:

(a) At or on the adjournment of the hearing referred to by Section 372.016 on proposed assessments, the governing body of the municipality or county must hear and pass on any objection to a proposed assessment. [The governing body may amend a proposed assessment on any parcel.]

(b) After all objections have been heard and the governing body has passed on the objections, the governing body by ordinance or order shall levy the assessment as a special assessment on the property. The governing body by ordinance or order shall specify the method of payment of the assessment. The governing body may defer the collection of an assessment until a date specified by the governing body [specifies] in the ordinance or order that is not later than the second anniversary of the date the governing body approves the ordinance or order levying the assessment. The governing body may provide that assessments be paid in periodic installments, at an interest rate and for a period approved by the governing body. The provision that assessments be paid in periodic installments may, but is not required to, result in level annual installment payments. The installments must be in amounts necessary to meet annual costs for improvements and must continue for:

(1) the period necessary to retire the indebtedness on the improvements; or

(2) the period approved by the governing body for the payment of the installments.

(c) Notwithstanding the approval by the governing body of a municipality or county of a deferred date for collection of an assessment under Subsection (b), the assessment lien is effective from the date of the ordinance or order levying the assessment until the assessment is paid or otherwise released.

SECTION 11. Section 372.019, Local Government Code, is amended to read as follows:

Sec. 372.019. SUPPLEMENTAL OR ADDITIONAL ASSESSMENTS. After notice and a hearing, the governing body of the municipality or county may make supplemental or additional assessments for additional authorized improvements, to pay increased costs, or to correct omissions or mistakes in the assessment relating to the total cost of the improvement. Notice must be given and the hearing held under this section in the same manner as required by Sections 372.009, 372.016, and 372.017.

SECTION 12. Section 372.020, Local Government Code, is amended to read as follows:

Sec. 372.020. REASSESSMENT. The governing body of the municipality or county may release an assessment and make a reassessment or new assessment of a parcel of land if:

(1) a court of competent jurisdiction sets aside an assessment against the parcel;

(2) the governing body determines that the original assessment is or will be excessive; or

(3) on the written advice of counsel, the governing body determines that the original assessment is invalid.

SECTION 13. Section 372.021(b), Local Government Code, is amended to read as follows:

(b) The municipality or county annually may levy an assessment [a tax] to support the fund.

SECTION 14. Section 372.023, Local Government Code, is amended by adding Subsections (a-2), (d-2), (i), and (j) and amending Subsections (d-1) and (h) to read as follows:

(a-2) If the governing body of a municipality or county has authorized an entity to receive a benefit under Subsection (a)(3)(B), the municipality or county may pay the costs of improvements provided to or for the benefit of the entity by the methods provided in this chapter without executing an interlocal agreement under Chapter 791, Government Code.

(d-1) An installment sales contract, reimbursement agreement, temporary note, or time warrant described by Subsection (d):

(1) may be secured by and paid from a special assessment or the proceeds of special assessment revenue bonds; and

(2) may be assigned by the payee without the consent of the municipality or county.

(d-2) An assignment by the payee of an installment sales contract, reimbursement agreement, temporary note, or time warrant in part under this section must assign in whole the amounts levied by an assessment.

(h) The costs of any improvement include interest payable on a temporary note, reimbursement agreement, or time warrant and all costs incurred in connection with the issuance of bonds under Section 372.024 and may be included in the assessments against the property in the improvement district as provided by this subchapter.

(i) A municipality or county that enters into a reimbursement agreement under this section may levy an assessment for the projected cost to issue bonds under this chapter, including reserve funds and capitalized interest, to finance:

(1) a construction or reimbursement obligation of the issuer; or

(2) improvements and costs contemplated by the reimbursement agreement that are included in the annual service plan and assessment plan approved by the governing body of the municipality or county at the time the governing body levies an assessment in connection with the reimbursement agreement.

(j) If the governing body of a municipality or county levies an assessment for the projected cost to issue bonds under Subsection (i), and the bonds are not issued before the 180th day after the date the improvements for which the assessment was levied are completed and accepted, the governing body shall update the assessment plan to reduce the assessment relating to the projected cost to issue the bonds.

SECTION 15. Section 372.027(a), Local Government Code, is amended to read as follows:

(a) Revenue bonds issued under this subchapter may be refunded or refinanced by the issuance of refunding bonds, under terms or conditions set forth in ordinances or orders of the municipality or county issuing the bonds, and as otherwise authorized by law. The provisions of this subchapter applying generally to revenue bonds, including provisions related to the issuance of those bonds, apply to refunding bonds authorized by this section. The refunding bonds may be sold and delivered in amounts necessary for the principal, interest, and any redemption premium of the bonds to be refunded, on the date of the maturity of the bond or any redemption date of the bond.

SECTION 16. Section 372.041(a), Local Government Code, is amended to read as follows:

(a) A home-rule municipality may create improvement districts for the purposes of:

(1) levying, straightening, widening, enclosing, or otherwise improving a river, canal, creek, bayou, stream, other body of water, street, or alley;

(2) draining, grading, filling, and otherwise protecting and improving the territory within the municipality's limits;

(3) issuing bonds to finance improvements listed in this subsection; and

(4) financing an improvement described in Subchapter A.

SECTION 17. Section 372.152, Local Government Code, is transferred to Subchapter A, Chapter 372, Local Government Code, redesignated as Section 372.0241, Local Government Code, and amended to read as follows:

Sec. 372.0241 [372.152]. ISSUANCE OF BONDS TO REIMBURSE ACQUIRED PUBLIC IMPROVEMENTS. (a) The governing body of a municipality or county may issue and sell general obligation bonds or revenue bonds to reimburse a developer for the cost of a public improvement if:

(1) the public improvement is located in a public improvement district created on or after January 1, 2005;

(2) the public improvement has been dedicated to and accepted by the municipality or county; and

(3) before the public improvement was dedicated to and accepted by the municipality or county, the governing body of the municipality or county entered into an agreement with the developer to pay for the public improvement.

(b) General obligation bonds or revenue bonds issued under this section [subchapter] must comply with the provisions relating to general obligation bonds or revenue bonds issued under this subchapter [Subchapter A].

(c) The governing body of a municipality or county and a landowner or developer may enter into an agreement under Subsection (a)(3) only if the agreement allows for the municipality or county to pay for the public improvement only through assessments collected by the intended improvement district.

SECTION 18. Sections 5.014(a-1) and (a-2), Property Code, are amended to read as follows:

(a-1) Except for the notice prescribed by Subsection (a-2), the notice required by Subsection (a) shall be executed by the seller and must, except as provided by Subsection (b), read as follows:

NOTICE OF OBLIGATION TO PAY IMPROVEMENT DISTRICT ASSESSMENT TO

(insert name of municipality or county levying assessment), TEXAS

CONCERNING THE FOLLOWING PROPERTY

(insert property address)

As the purchaser of the real property described above, you are obligated to pay assessments to (insert name of municipality or county, as applicable), Texas, for the costs of a portion of a public improvement or services project (the "Authorized Improvements") undertaken for the benefit of the property within (insert name of public improvement district) (the "District") created under (insert Subchapter A, Chapter 372, Local Government Code, or Chapter 382, Local Government Code, as applicable).

AN ASSESSMENT HAS BEEN OR MAY BE LEVIED AGAINST YOUR PROPERTY FOR THE AUTHORIZED IMPROVEMENTS, WHICH MAY BE PAID IN FULL AT ANY TIME. IF THE ASSESSMENT IS NOT PAID IN FULL, IT WILL BE DUE AND PAYABLE IN ANNUAL INSTALLMENTS THAT WILL VARY FROM YEAR TO YEAR DEPENDING ON THE AMOUNT OF INTEREST PAID, COLLECTION COSTS, ADMINISTRATIVE COSTS, AND DELINQUENCY COSTS.

The exact amount of the assessment may be obtained from (insert name of municipality or county, as applicable). The exact amount of each annual installment will be approved each year by (insert name of city council or county commissioners court, as applicable) in the annual service plan update for the district. More information about the assessments, including the amounts and due dates, may be obtained from (insert name of municipality or county, as applicable).

Your failure to pay any assessment or any annual installment may result in penalties and interest being added to what you owe or in a lien on and the foreclosure of your property.

The undersigned purchaser acknowledges receipt of this notice on or before the effective date of a binding contract for the purchase of the real property at the address described above. Date: __________________ ________________________________ Signature of Purchaser

(a-2) For a district described by Section 372.0035, Local Government Code, the notice required by Subsection (a) shall be executed by the seller and must, except as provided by Subsection (b), read as follows:

NOTICE OF OBLIGATION TO PAY IMPROVEMENT DISTRICT ASSESSMENT TO

(insert name of municipality levying assessment), TEXAS

CONCERNING THE FOLLOWING HOTEL PROPERTY

(insert property address)

As the purchaser of the real property described above, you are obligated to pay assessments to (insert name of municipality), Texas, for the costs of a portion of a public improvement or services project (the "Authorized Services") undertaken for the benefit of the property within (insert name of public improvement district) (the "District") created under Subchapter A, Chapter 372, Local Government Code.

AN ASSESSMENT HAS BEEN OR MAY BE LEVIED AGAINST YOUR PROPERTY FOR THE AUTHORIZED SERVICES, WHICH MUST BE PAID IN FULL WITH EVERY PAYMENT BY THE HOTEL OF LOCAL HOTEL OCCUPANCY TAX REMITTANCES TO THE MUNICIPALITY. YOUR FAILURE TO PAY THE ASSESSMENT MAY RESULT IN PENALTIES AND INTEREST BEING ADDED TO WHAT YOU OWE, AND MAY INCLUDE THE PURSUIT OF ANY OTHER REMEDY THAT IS AUTHORIZED UNDER SECTION 372.0035(d), LOCAL GOVERNMENT CODE.

Information about the calculation of the assessment may be obtained from (insert name of the municipality). The exact assessment rate will be approved each year by (insert name of city council) in the annual service plan update for the district. More information about the assessments, including the assessment rate and due dates, may be obtained from (insert name of municipality).

The undersigned purchaser acknowledges receipt of this notice on or before the effective date of a binding contract for the purchase of the real property at the address described above. Date: __________________ ________________________________ Signature of Purchaser

SECTION 19. The heading to Section 5.0141, Property Code, is amended to read as follows:

Sec. 5.0141. NOTICE REQUIRED AT OR BEFORE CONTRACT EXECUTION.

SECTION 20. Sections 5.0141(a), (c), and (d), Property Code, are amended to read as follows:

(a) The notice required by Section 5.014 shall be given to the prospective purchaser at or before the execution of a binding contract of purchase and sale, either separately or as an addendum or paragraph of a purchase contract.

(c) If, however, the seller furnishes the notice at or before closing the purchase and sale contract and the purchaser elects to sign the notice [close] even though the notice was not timely furnished at or before execution of the contract, it shall be conclusively presumed that the purchaser has waived all rights to terminate the contract under Subsection (b) or recover damages or other remedies or rights under Section 5.0145.

(d) Notwithstanding any provision of this section, Section 5.014, 5.0142, 5.0143, 5.0144, or 5.0145, all sellers, title companies, real estate brokers, and examining attorneys, and any agent, representative, or person acting on their behalf, are not liable for damages under Section 5.0145, or for any other damages to any person, for:

(1) failing to provide the notice to a purchaser before execution of a binding contract of purchase and sale or at or before the closing of the purchase and sale contract when the municipality or county has not recorded [filed] the service plan as required by Section 372.013, Local Government Code; or

(2) unintentionally providing a notice that is not the correct notice under the circumstances before execution of a binding contract of purchase and sale, or at or before the closing of the purchase and sale contract.

SECTION 21. Section 5.0143, Property Code, is amended to read as follows:

Sec. 5.0143. RECORDING OF NOTICE AT CLOSING. (a) At the closing of purchase and sale, a separate copy of the notice required by Section 5.014 with current information shall be executed by the seller and purchaser, acknowledged, and recorded in the deed records of the county in which the property is located.

(b) The content of the notice recorded under this section may be the same as the content of the notice given under Section 5.0141 regardless of whether the amount of assessment levied against the property has changed since the time that notice was given to the purchaser.

SECTION 22. Section 5.0144, Property Code, is amended to read as follows:

Sec. 5.0144. RELIANCE ON RECORDED [FILED] SERVICE PLAN. (a) For the purposes of the notice required by Section 5.014, all sellers, title companies, real estate brokers, and examining attorneys, and any agent, representative, or person acting on their behalf, are entitled to rely on the accuracy of the service plan as last recorded [filed] by each municipality or county under Section 372.013, Local Government Code, in completing the notice form to be executed by the seller and purchaser at the closing of purchase and sale.

(b) Any information taken from the service plan as last recorded [filed] by the municipality or county and the information contained in or shown on the notice form contained in the service plan under Section 372.013, Local Government Code, not including information provided as to the assessments or annual installment amounts as authorized by Section 5.014(b), shall be, for purposes of the notice required by Section 5.014, conclusively presumed as a matter of law to be correct.

(c) All subsequent sellers, purchasers, title insurance companies, real estate brokers, examining attorneys, and lienholders are entitled to rely on the service plan recorded [filed] by the municipality or county, including the notice form contained in the service plan, under Section 372.013, Local Government Code.

(d) If the notice required by Section 5.014 is given at closing as provided by Section 5.0141(c), a purchaser, or the purchaser's heirs, successors, or assigns, are not entitled to maintain an action for damages against a seller, title insurance company, real estate broker, or lienholder, or any agent, representative, or person acting on their behalf, because the seller:

(1) used the notice form included in the service plan recorded [filed] by the municipality or county under Section 372.013, Local Government Code; or

(2) relied on a [the filed] legal description of the public improvement district included in the service plan recorded by the municipality or county under Section 372.013, Local Government Code, in determining whether the property is located in the district.

(e) No action may be maintained against any title company for failure to disclose the inclusion of the property in a public improvement district when the municipality or county has not recorded [filed] the service plan under Section 372.013, Local Government Code, in the real property records [with the clerk] of each county in which the district is located.

(f) All sellers, title insurance companies, examining attorneys, vendors of property and tax information, real estate brokers, and lienholders, and any agent, representative, or person acting on their behalf, are entitled to rely on the accuracy of:

(1) the service plan last recorded [filed] by the municipality or county or the information in the notice form recorded [filed] by the district under Section 372.013, Local Government Code; or

(2) for the purposes of the notice required by Section 5.014, the information in the service plan recorded [filed] by the municipality or county in effect as of January 1 of each year for the period January 1 through December 31 of such calendar year.

SECTION 23. Section 372.151, Local Government Code, is repealed.

SECTION 24. Section 372.009(d), Local Government Code, as amended by this Act, applies only to a hearing under Section 372.009, Local Government Code, on or after the effective date of this Act.

SECTION 25. Sections 372.010(b) and (c), Local Government Code, as amended by this Act, apply only to a resolution adopted under Section 372.010, Local Government Code, on or after the effective date of this Act. A resolution adopted before the effective date of this Act is governed by the law in effect on the date the resolution was adopted, and the former law is continued in effect for that purpose.

SECTION 26. Sections 372.013(a) and (c), Local Government Code, as amended by this Act, apply only to a service plan approved under that section on or after the effective date of this Act. A service plan approved before the effective date of this Act is governed by the law in effect on the date the service plan was approved, and the former law is continued in effect for that purpose.

SECTION 27. Section 372.013, Local Government Code, as amended by this Act, applies only to a service plan amended or updated under that section on or after the effective date of this Act.

SECTION 28. Sections 372.014(a) and (b), Local Government Code, as amended by this Act, and Sections 372.015(e) and (f), Local Government Code, as added by this Act, apply only to an assessment plan included in a service plan approved under Section 372.013, Local Government Code, as amended by this Act, on or after the effective date of this Act. An assessment plan included in a service plan approved before the effective date of this Act is governed by the law in effect on the date the service plan was approved, and the former law is continued in effect for that purpose.

SECTION 29. Sections 372.015(e) and (f), Local Government Code, as added by this Act, apply only to an assessment determination made on or after the effective date of this Act.

SECTION 30. Section 372.016, Local Government Code, as amended by this Act, applies only to notice given under Section 372.016, Local Government Code, on or after the effective date of this Act.

SECTION 31. Sections 372.017 and 372.019, Local Government Code, as amended by this Act, apply only to the levy of an assessment made on or after the effective date of this Act.

SECTION 32. Section 372.023, Local Government Code, as amended by this Act, applies only to the payment of costs made on or after the effective date of this Act.

SECTION 33. Sections 5.014, 5.0141, 5.0143, and 5.0144, Property Code, as amended by this Act, apply only to a sale or conveyance of property for which a binding contract is executed on or after the effective date of this Act. A sale or conveyance for which a binding contract is executed before the effective date of this Act is governed by the law in effect on the date the contract is executed, and the former law is continued in effect for that purpose.

SECTION 34. This Act takes effect September 1, 2023.