Bill Text: TX SB1958 | 2023-2024 | 88th Legislature | Introduced

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Bill Title: Relating to certain procedural requirements for public improvement districts and transfers of property located in public improvement districts.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2023-03-21 - Referred to Local Government [SB1958 Detail]

Download: Texas-2023-SB1958-Introduced.html

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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.