JBM H.B. 320 75(R)BILL ANALYSIS NATURAL RESOURCES H.B. 320 By: Krusee 3-12-97 Committee Report (Amended) BACKGROUND The Texas Natural Resource Conservation Commission (TNRCC) has identified faulty septic tank systems located over aquifer recharge zones as major polluters to aquifers. The TNRCC would like to close these septic tank systems and have properties dispose of sewage through a municipal sewer system. Unfortunately, the construction cost to connect a private residence to a municipal sewer line is high. Consequently, property owners either pay the full amount out of their pockets or finance it through a loan institution. This bill proposes that qualifying municipalities provide property owners another funding option for constructing water/ wastewater systems. According to this bill, landowners could now finance these improvements through a municipality. This option is especially appealing to areas of high residential growth. Municipalities could plan and construct improvements for an entire subdivision at a lower cost per residence. As a result, the property owner could connect to a municipal water/ wastewater system at a low cost, and the municipality could preserve the water quality of the aquifer. PURPOSE To allow municipalities to preserve water quality by constructing sewer lines that connect private property currently using septic tank systems to main sewer laterals and close or remove septic tank systems. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1.Amends Subchapter Z, Chapter 402, Local Government Code, by adding Section 402.906 to provide as follows: (a) This section applies to areas in a municipality or its extraterritorial jurisdiction. The areas must be over an aquifer recharge zone that supplies all or part of its water supply. (b) States that the municipality or person with whom the municipality has contracted may take several actions to preserve water quality: (1) Construct, renovate, or rebuild water/ wastewater laterals and connect them to private properties. (2) Take actions necessary to fix pollution problems caused by septic systems. (c)Requires the municipality to assess costs of improvements allowed under Subsection (b)(1) and (b)(2) against the property on which the lateral is located. The municipality attaches a lien to the property for the costs of the improvements to the property. (d) States that before any construction can begin, the municipality must notify the owner and obtain the owner's written consent to the work and to the amount of the estimated cost of the work. (e) Requires that the notice from the municipality, pursuant to Subsection (d), must state the estimated cost of the improvements, which cannot increase by more than 10 percent without the written consent of the owner. The municipality must provide notice by personal delivery or through the U.S. Postal Service. (f)Requires the owner's written consent to contain the following to be valid: (1) A statement that the person giving consent is the property owner or authorized agent of the owner. (2) The owner's address. (3) A statement that: the owner freely gave the consent, the owner understands the attachment of improvement costs to his/her property, the municipality does not pay for any of the improvements, and the owner repays the municipality within five years upon completion of the work. (g) Requires that the municipality file the written consent with the municipal clerk or secretary. (h) Requires that all contracted work comply with competitive bidding requirements and follow all laws applicable to construction work. Any cost increases must not exceed 10 percent without the approval of the owner. (i) Requires that, upon completion of improvements, the municipality file a certificate of completion with the county clerk and send a copy to the owner. It also states that the certificate must contain a legal description of the property and the name of the owner. Further, the lien created pursuant to this section must attach and arise when the certificate is filed, and the lien is binding on subsequent grantees, lienholders, or other transferees of interest in the property who acquire interest after the certificate is recorded. (j) States that the owner has five years to repay the municipality for the cost of the improvements and interest. The interest must not exceed 10 percent a year, and, after payment, the municipality is required to issue a release of the assessment and lien on the property. (k) States that, if the owner fails to repay the municipality, then the municipality may enforce the lien. SECTION 2. Emergency clause EXPLANATION OF AMENDMENTS Committee Amendment No. 1: Amends the bill on page 3, line 21, by adding language providing that certificates issued by municipalities certifying that work has been completed and listing the cost of the improvements shall contain certain a legal description of the land and the name of the property owner. Also, the amendment states that a lien created pursuant to this section must attach and arise when the certificate is recorded in the real property records. Finally, it stipulates that the lien is binding on subsequent grantees, lienholders, or other transferees of an interest in the property who acquire such interest after the certificate is recorded.