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

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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

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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