Bill Text: TX HB2816 | 2023-2024 | 88th Legislature | Enrolled


Bill Title: Relating to notice provided to purchasers of property and information filed with the county clerk by certain special districts.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2023-06-18 - Effective on 9/1/23 [HB2816 Detail]

Download: Texas-2023-HB2816-Enrolled.html
 
 
  H.B. No. 2816
 
 
 
 
AN ACT
  relating to notice provided to purchasers of property and
  information filed with the county clerk by certain special
  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) and adding Subsections (a-1) and (a-2) to
  read as follows:
         (a)  In this section, "district" means a district:
               (1)  governed by Chapter 375, Local Government Code; or
               (2)  [(1)  Any person who proposes to sell or convey
  real property located in a district] created under this title or by
  a special Act of the legislature that:
                     (A)  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
                     (B)  [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 this
  section].
         (a-1)  A person who proposes to sell or convey real property
  located in a district must give to the purchaser the written notice
  as provided by this section and Section 49.4521.
         (a-2) [(2)]  The provisions of this section are [shall] not
  [be] applicable to:
               (1) [(A)]  transfers of title under any type of lien
  foreclosure;
               (2) [(B)]  transfers of title by deed in cancellation
  of indebtedness secured by a lien upon the property conveyed;
               (3) [(C)]  transfers of title by reason of a will or
  probate proceedings; [or]
               (4) [(D)]  transfers of title to a governmental entity;
  or
               (5)  transfers of title for the purpose of qualifying a
  director.
         SECTION 2.  Subchapter M, Chapter 49, Water Code, is amended
  by adding Section 49.4521 to read as follows:
         Sec. 49.4521.  PRESCRIBED NOTICE TO PURCHASERS. (a) A
  notice to a purchaser provided under Section 49.452 must include:
               (1)  a title caption in at least a 24-point, bold font
  stating "NOTICE TO PURCHASER OF SPECIAL TAXING OR ASSESSMENT
  DISTRICT"; and
               (2)  the following statements, as applicable to the
  district:
                     (A)  "The real property that you are about to
  purchase is located in the (insert name of district) and may be
  subject to district taxes or assessments.";
                     (B)  "The district may, subject to voter approval,
  impose taxes and issue bonds. The district may impose an unlimited
  rate of tax in payment of such bonds.";
                     (C)  one of the following, as applicable:
                           (i)  "The current rate of the district
  property tax is (insert current property tax rate) on each $100 of
  assessed valuation."; or
                           (ii)  "The district has not yet imposed
  taxes. The projected rate of the district property tax is (insert
  projected property tax rate) on each $100 of assessed valuation.";
                     (D)  "The district may impose assessments and
  issue bonds and impose an assessment in payment of such bonds.";
                     (E)  one of the following, as applicable:
                           (i)  "The rate of the district assessment is
  (insert current assessment amount) on each $100 of assessed
  valuation.";
                           (ii)  "The amount of the district assessment
  on the real property that you are about to purchase is (insert
  current assessment amount)."; or
                           (iii)  "The district has not yet imposed an
  assessment, but the projected (insert "rate" or "amount", as
  applicable) of the assessment is (insert projected assessment rate
  or amount, as applicable).";
                     (F)  "The total amounts of bonds payable wholly or
  partly from (insert "property taxes" or "assessments", as
  applicable) (insert ", excluding refunding bonds that are
  separately approved by the voters" or ", excluding any bonds or any
  portions of bonds issued that are payable solely from revenues
  received or expected to be received under a contract with a
  governmental entity", as applicable), approved by the voters are:
                           (i)  $(insert amount) for water, sewer, and
  drainage facilities;
                           (ii)  $(insert amount) for road facilities;
                           (iii)  $(insert amount) for parks and
  recreational facilities; and
                           (iv)  $(insert amount) for (description of
  additional facilities, as applicable).";
                     (G)  "The aggregate initial principal amounts of
  all such bonds issued are:
                           (i)  $(insert amount) for water, sewer, and
  drainage facilities;
                           (ii)  $(insert amount) for road facilities;
                           (iii)  $(insert amount) for parks and
  recreational facilities; and
                           (iv)  $(insert amount) for (description of
  additional facilities, as applicable).";
                     (H)  "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 $(insert amount of
  standby fee). 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.";
                     (I)  if applicable, one of the following:
                           (i)  "The district is located wholly or
  partly in the extraterritorial jurisdiction of the City of (insert
  name of the municipality). Texas law governs the ability of a
  municipality to annex property in the municipality's
  extraterritorial jurisdiction and whether a district that is
  annexed by the municipality is dissolved."; or
                           (ii)  "The district is located wholly or
  partly within the corporate boundaries of the City of (insert name
  of the municipality). The municipality and the district overlap,
  but may not provide duplicate services or improvements. Property
  located in the municipality and the district is subject to taxation
  by the municipality and the district.";
                     (J)  "The district has entered into a strategic
  partnership agreement with the City of (insert name of the
  municipality). This agreement may address the timeframe, process,
  and procedures for the municipal annexation of the area of the
  district located in the municipality's extraterritorial
  jurisdiction.";
                     (K)  "The purpose of the district is to provide
  (insert water, sewer, drainage, flood control, firefighting, road,
  parks and recreational, or other type of facilities or services, as
  applicable) facilities and services. The cost of district
  facilities is not included in the purchase price of your
  property.";
                     (L)  "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."; and
                     (M)  "The undersigned purchaser hereby
  acknowledges receipt of the foregoing notice at or before the
  execution of a binding contract for the purchase of the real
  property or at closing of purchase of the real property.".
         (b)  The district shall omit or edit for accuracy statements
  not applicable to the district, as determined by the district.
         (c)  The notice must be dated and executed by the seller and
  the purchaser.
         (d)  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 by adding
  Subsection (e) to read as follows:
         (e)  A district required to maintain an Internet website or
  have access to a generally accessible Internet website under
  Section 26.18, Tax Code, shall post or create a process for posting
  the district's notice to purchasers under Section 49.4521 on the
  applicable Internet website.
         SECTION 4.  Section 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.  Section 3919.205(d), Special District Local Laws
  Code, is amended to read as follows:
         (d)  The district shall generate and implement a program to
  provide notice modeled on the notice described by Section 49.4521
  [49.452(c)], Water Code, to a prospective purchaser of property in
  the district of the assessments that have been approved and are
  imposed by the district.
         SECTION 6.  The following provisions of the Water Code are
  repealed:
               (1)  Sections 49.452(b), (c), (d), and (e); and
               (2)  Sections 49.455(f) and (h).
         SECTION 7.  (a) Section 49.452, Water Code, as amended by
  this Act, and Section 49.4521, Water Code, as added by this Act,
  apply only to notice given to a purchaser of real property within a
  water district on or after the effective date of this Act. Notice
  given to a purchaser before the effective date is governed by the
  law in effect at the time the notice was given, and that law is
  continued in effect for that purpose.
         (b)  Section 49.455, Water Code, as amended by this Act,
  applies only to an information form filed on or after the effective
  date of this Act. An information form filed before the effective
  date of this Act is governed by the law in effect on the date the
  form was filed, and that law is continued in effect for that
  purpose.
         SECTION 8.  This Act takes effect September 1, 2023.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2816 was passed by the House on May
  12, 2023, by the following vote:  Yeas 126, Nays 14, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 2816 was passed by the Senate on May
  24, 2023, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor       
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