HBA-ALS H.B. 641 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 641
By: Howard
Business and Industry
3/25/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, there is no requirement to notify a prospective purchaser of
residential property that the property may be subject to future annexation
because it is located within a city's extraterritorial jurisdiction.  H.B.
641 requires a municipal utility district to disclose to the purchaser of
residential real property, that the district is located in the
extraterritorial jurisdiction of a municipality and for that reason the
district may be annexed by the municipality, or that the district is
located within the corporate boundaries of a municipality.   

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS
 
SECTION 1.  Amends Section 49.452(b), Water Code, to delete the words "debt
service" from the description of the most recent projected rate of tax
which is required to appear in the prescribed notice for all districts that
is required to be executed by a seller of real property.  Adds language
requiring a municipal utility district to disclose to the purchaser of
residential real property whether the property is located in a
municipality's extraterritorial jurisdiction and detailing the results of
annexation by the municipality.  Requires the disclosure notice provided to
the purchaser to also disclose whether the district is located within the
corporate boundaries or extraterritorial jurisdiction of a municipality.
Makes a conforming change. 

SECTION 2.  Effective date: September 1, 1999. 
                       Makes application of this Act prospective.   

SECTION 3.  Emergency clause.