By Krusee                                              H.B. No. 320

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the ability of municipalities to provide water or

 1-3     wastewater service to a residence to preserve the quality of an

 1-4     aquifer the municipality uses as a water source.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Subchapter Z, Chapter 402, Local Government Code,

 1-7     is amended by adding Section 402.906 to read as follows:

 1-8           Sec. 402.906.   CONSTRUCTION OF WATER OR WASTEWATER

 1-9     IMPROVEMENTS TO PRESERVE WATER QUALITY OF AQUIFER.  (a) This

1-10     section applies only to territory located in a municipality or in

1-11     the extraterritorial jurisdiction of a municipality and located

1-12     over the recharge zone of an aquifer that provides all or part of

1-13     the water supply of the municipality.

1-14           (b)  To preserve the quality of the aquifer,  the

1-15     municipality or a person with whom the municipality contracts may:

1-16                 (1)  construct a sanitation sewer lateral or water

1-17     lateral that serves a residential structure on private property to

1-18     connect the lateral to a new, renovated, or rebuilt sanitation main

1-19     or water main constructed by or for the municipality; and

1-20                 (2)  take any action necessary to remedy aquifer

1-21     pollution problems caused by septic tanks or septic systems located

1-22     on the property, including filling in the tank or system or

1-23     removing the tank or system.

1-24           (c)  The municipality shall assess the cost of the water or

 2-1     wastewater improvements under Subsection (b)(1) or Subsections

 2-2     (b)(1)  and (b)(2), as applicable, against the property on which

 2-3     the lateral is located.  A lien attaches to the property for the

 2-4     cost of the improvements.

 2-5           (d)  Before a municipality acts under Subsection (b), the

 2-6     municipality must give notice to the property owner and obtain the

 2-7     property owner's written consent to the activity to be performed

 2-8     and to the amount of the assessment.

 2-9           (e)  The notice provided under Subsection (d) must state the

2-10     estimated cost to the property owner of the improvements and  state

2-11     that the cost may be increased by not more than 10 percent because

2-12     of changes without the written consent of the owner.   The

2-13     municipality shall give the notice to the owner by personal

2-14     delivery or by depositing the notice in the United States mail with

2-15     postage prepaid.

2-16           (f)  To be valid, the owner's written consent must:

2-17                 (1)  state that the person giving the consent is the

2-18     property owner or the authorized representative of the property

2-19     owner;

2-20                 (2)  state the owner's address; and

2-21                 (3)  state that:

2-22                       (A)  the consent is given freely;

2-23                       (B)  the owner understands that as a result of

2-24     the assessment a lien attaches to the property for the total cost

2-25     of the improvements;

2-26                       (C)  the municipality will not pay any part of

2-27     the cost of the improvements; and

 3-1                       (D)  the owner will repay the cost to the

 3-2     municipality on or before the fifth anniversary of the date the

 3-3     municipality certifies the work is completed.

 3-4           (g)  The municipality shall file the written consent of the

 3-5     property owner with the municipal clerk or secretary.

 3-6           (h)  If the municipality contracts with another person to

 3-7     perform the work, the contract must be awarded in compliance with

 3-8     the competitive bidding requirements applicable to the

 3-9     municipality.  The provisions of the contract must comply with any

3-10     law applicable to the construction of public improvements by the

3-11     municipality.  The contract may be changed as necessary for the

3-12     successful completion of the work, but the contract price may not

3-13     be increased by more than 10 percent because of those changes

3-14     without the written consent of the owner as provided by Subsection

3-15     (e).

3-16           (i)  When the work is completed, the municipality shall issue

3-17     a certificate certifying that the work has been completed and the

3-18     cost of the improvements.  The municipality shall file the

3-19     certificate with the county clerk of the county in which the

3-20     property is located and shall deliver a copy of the certificate to

3-21     the property owner.  The certificate must contain the legal

3-22     description of the land and name of the property owner.  The lien

3-23     created pursuant to this section shall attach and arise when the

3-24     certificate is recorded in the real property records.  The lien is

3-25     binding on subsequent grantees, lienholders, or other transferees

3-26     of an interest in the property who acquire such interest after the

3-27     recording of the certificate.

 4-1           (j)  The property owner, on or before the fifth anniversary

 4-2     of the date of the issuance of the certificate, must pay the

 4-3     municipality the amount that the completed work cost the

 4-4     municipality as evidenced by the certificate, plus simple interest

 4-5     in an amount not to exceed 10 percent a year as set by the

 4-6     governing body of the municipality.  On payment of the principal

 4-7     amount and accrued interest, the municipality shall issue a release

 4-8     of the assessment and lien.  The release may be filed for record as

 4-9     provided by law.

4-10           (k)  If the property owner does not pay the assessment during

4-11     the five-year period, the municipality may enforce the lien on the

4-12     property in the same manner in which it is authorized by law to

4-13     enforce the lien for a paving or other assessment.

4-14           SECTION 2.  The importance of this legislation and the

4-15     crowded condition of the calendars in both houses create an

4-16     emergency and an imperative public necessity that the

4-17     constitutional rule requiring bills to be read on three several

4-18     days in each house be suspended, and this rule is hereby suspended,

4-19     and that this Act take effect and be in force from and after its

4-20     passage, and it is so enacted.