By: Creighton S.B. No. 2522
 
 
 
   
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the notice given to purchasers of property within
  certain water districts.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 49.452, Water Code, is amended by
  amending subsection (a) to read as follows:
         (a)  (1) Any person who proposes to sell or convey real
  property located in a district as defined by this subsection must
  give to the purchaser the written notices as provided in this
  section.
               (2)  For the purposes of this section, "district" means
  a district that: 
                     (A)  operates pursuant to Chapter 375, Local
  Government Code; or
                     (B)  is created under this title or by a special
  Act of the legislature,
                           (i)  that is providing or proposing to
  provide, as the district's principal function, water, sanitary
  sewer, drainage, and flood control or protection facilities or
  services, or any of these facilities or services that have been
  financed or are proposed to be financed with bonds of the district
  payable in whole or part from taxes of the district, or by
  imposition of a standby fee, if any, to household or commercial
  users, other than agricultural, irrigation, or industrial users,
  and
                                 (ii) [which district] includes less
  than all the territory in at least one county and which, if located
  within the corporate area of a city, includes less than 75 percent
  of the incorporated area of the city or which is located outside the
  corporate area of a city in whole or in substantial part [, must
  first give to the purchaser the written notice provided in Section
  49.4525 this section].
               (3)(2) The provisions of this section shall not be
  applicable to:
                     (A)  transfers of title under any type of lien
  foreclosure;
                     (B)  transfers of title by deed in cancellation of
  indebtedness secured by a lien upon the property conveyed;
                     (C)  transfers of title by reason of a will or
  probate proceedings; [or]
                     (D)  transfers of title to a governmental entity;
  or
                     (E)  transfers of title for the purpose of
  qualifying a director.
         SECTION 2.  Subchapter M, Chapter 49, Water Code, is amended
  by adding Section 49.4525 to read as follows:
         Sec. 49.4525.  FORM OF NOTICE. (a) The caption at the top of
  the prescribed notice shall be printed in bold, capitalized letters
  in a font that is 24 point or larger and shall read: "NOTICE TO
  PURCHASER OF SPECIAL TAXING OR ASSESSMENT DISTRICT."
         (b)  The prescribed notice shall include the following
  statements as applicable to the district, as determined by the
  district. Statements not applicable to the district shall be
  omitted or edited for accuracy, as determined by the district.
                     (i)  "The real property that you are about to
  purchase is located in the __________ District and may be subject to
  district taxes or assessments."
                     (ii)  "The district may, subject to voter
  approval, levy taxes and issue bonds and levy an unlimited rate of
  tax in payment of such bonds."  
                     (iii)  (A) "The current rate of the district
  property tax is $__________ on each $100 of assessed valuation.";
  or
                           (B)  "The district has not yet levied taxes,
  but the projected rate of the district property tax is $__________
  on each $100 of assessed valuation."
                     (iv)  "The district may impose assessments and
  issue bonds and impose an assessment in payment of such bonds."
                     (v)    (A)  "The rate of the district assessment
  is $___________ on each $100 of assessed valuation."; or
                           (B)  "The amount of the district assessment
  on the real property that you are about to purchase is
  $__________."; or
                           (C)  "The district has not yet imposed an
  assessment, but the projected [rate] [amount] of assessment is
  $__________."  
                     (vi)  "The total amounts of bonds payable in whole
  or in part from [property taxes] [assessments], [excluding
  [refunding bonds that are separately approved by the voters] and
  [any bonds or any portion of bonds issued that are payable solely
  from revenues received or expected to be received under a contract
  with a governmental entity]], approved by the voters are:
                           (A)  $__________ for water, sewer, and
  drainage facilities;
                           (B)  $__________ for road facilities;
                           (C)  $___________ for parks and recreational
  facilities; and
                           (D)  $__________ for __________
  facilities."
                     (vii)  "The aggregate initial principal amounts
  of all such bonds issued are:
                           (A)  $__________ for water, sewer, and
  drainage facilities;
                           (B)  $__________ for road facilities;
                           (C)  $___________ for parks and recreational
  facilities; and
                           (D)  $__________ for __________
  facilities."
                     (ix)  "The district sought and obtained approval
  of the Texas Commission on Environmental Quality to adopt and
  impose a standby fee. The amount of the standby fee is $__________.
  An unpaid standby fee is a personal obligation of the person that
  owned the property at the time of imposition and is secured by a
  lien on the property. Any person may request a certificate from the
  district stating the amount, if any, of unpaid standby fees on a
  tract of property in the district."
                     (x)    (A)  "The district is located in whole or
  in part in the extraterritorial jurisdiction of the City of
  __________. Texas law governs the ability of a municipality to
  annex property in the extraterritorial jurisdiction and whether a
  district that is annexed is dissolved."; or
                           (B)  "The district is located in whole or in
  part within the corporate boundaries of the City of __________. The
  city and the district overlap, but may not provide duplicate
  services or improvements. Property located in the city and the
  district is subject to taxation by the city and the district."
                     (xi)  "The district has entered into a strategic
  partnership agreement with the City of ___________. This agreement
  may address the timeframe, process, and procedures for the
  municipal annexation of the area of the district."  
                     (xii)  "The purpose of the district is to provide
  [[water,] [sewer,] [drainage,] [flood control,] [fire-fighting,]
  [road,] [park and recreational,] or [____________ ]] facilities and
  services. The cost of district facilities is not included in the
  purchase price of your property."
                     (xiii)  "PURCHASER IS ADVISED THAT THE
  INFORMATION SHOWN ON THIS FORM IS SUBJECT TO CHANGE BY THE DISTRICT
  AT ANY TIME. THE DISTRICT ANNUALLY ESTABLISHES TAX RATES.
  PURCHASER IS ADVISED TO CONTACT THE DISTRICT TO DETERMINE THE
  STATUS OF ANY CURRENT OR PROPOSED CHANGES TO THE INFORMATION SHOWN
  ON THIS FORM."
                     "The undersigned purchaser hereby acknowledges
  receipt of the foregoing notice at or prior to execution of a
  binding contract for the purchase of the real property or at closing
  of purchase of the real property."
         (d)  The notice shall be dated and executed by the seller and
  the purchaser.
         (e)  If the law is amended and causes inaccuracies in the
  content of the notice, the district shall revise the content of the
  notice to accurately reflect current law.
         SECTION 3.  Section 49.453, Water Code, is amended to add
  subsection (e) to read as follows:
         (e)  A district required by Section 26.18, Tax Code, to
  maintain an Internet website or have access to a generally
  accessible Internet website for the purposes of that section, shall
  post or cause to be posted on the Internet the district's form of
  notice to purchasers under Section 49.4525.
         SECTION 4.  Subsection 49.455(c), Water Code, is amended to
  read as follows:
         (c)  The information form [and map or plat required by this
  section] shall be signed by a majority of the members of the board
  and by each such officer affirmed and acknowledged before it is
  filed with the county clerk, and each amendment made to an
  information form [or map] shall also be signed by the members of the
  board and by each such officer affirmed and acknowledged before it
  is filed with the county clerk.
         SECTION 5.  (1) Subsections 49.452(b),(c),(d), and (e) are
  repealed.
         (2)  Subsections 49.455(f) and (h) are repealed.
         SECTION 6.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution. If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2023.