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.