Bill Text: TX SB2522 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the notice given to purchasers of property within certain water districts.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-23 - Referred to Local Government [SB2522 Detail]
Download: Texas-2023-SB2522-Introduced.html
By: Creighton | S.B. No. 2522 | |
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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) [ |
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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 [ |
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(3) |
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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; [ |
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(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 [ |
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and by each such officer affirmed and acknowledged before it is | ||
filed with the county clerk, and each amendment made to an | ||
information form [ |
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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. |