1-1 By Krusee H.B. No. 320 1-2 75R510 DRH-D 1-3 AN ACT 1-4 relating to the ability of municipalities to provide water or 1-5 wastewater service to a residence to preserve the quality of an 1-6 aquifer the municipality uses as a water source. 1-7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-8 SECTION 1. Subchapter Z, Chapter 402, Local Government Code, 1-9 is amended by adding Section 402.906 to read as follows: 1-10 Sec. 402.906. CONSTRUCTION OF WATER OR WASTEWATER 1-11 IMPROVEMENTS TO PRESERVE WATER QUALITY OF AQUIFER. (a) This 1-12 section applies only to territory located in a municipality or in 1-13 the extraterritorial jurisdiction of a municipality and located 1-14 over the recharge zone of an aquifer that provides all or part of 1-15 the water supply of the municipality. 1-16 (b) To preserve the quality of the aquifer, the 1-17 municipality or a person with whom the municipality contracts may: 1-18 (1) construct a sanitation sewer lateral or water 1-19 lateral that serves a residential structure on private property to 1-20 connect the lateral to a new, renovated, or rebuilt sanitation main 1-21 or water main constructed by or for the municipality; and 1-22 (2) take any action necessary to remedy aquifer 1-23 pollution problems caused by septic tanks or septic systems located 1-24 on the property, including filling in the tank or system or 1-25 removing the tank or system. 1-26 (c) The municipality shall assess the cost of the water or 1-27 wastewater improvements under Subsection (b)(1) or Subsections 1-28 (b)(1) and (b)(2), as applicable, against the property on which 1-29 the lateral is located. A lien attaches to the property for the 1-30 cost of the improvements. 1-31 (d) Before a municipality acts under Subsection (b), the 1-32 municipality must give notice to the property owner and obtain the 1-33 property owner's written consent to the activity to be performed 2-1 and to the amount of the assessment. 2-2 (e) The notice provided under Subsection (d) must state the 2-3 estimated cost to the property owner of the improvements and state 2-4 that the cost may be increased by not more than 10 percent because 2-5 of changes without the written consent of the owner. The 2-6 municipality shall give the notice to the owner by personal 2-7 delivery or by depositing the notice in the United States mail with 2-8 postage prepaid. 2-9 (f) To be valid, the owner's written consent must: 2-10 (1) state that the person giving the consent is the 2-11 property owner or the authorized representative of the property 2-12 owner; 2-13 (2) state the owner's address; and 2-14 (3) state that: 2-15 (A) the consent is given freely; 2-16 (B) the owner understands that as a result of 2-17 the assessment a lien attaches to the property for the total cost 2-18 of the improvements; 2-19 (C) the municipality will not pay any part of 2-20 the cost of the improvements; and 2-21 (D) the owner will repay the cost to the 2-22 municipality on or before the fifth anniversary of the date the 2-23 municipality certifies the work is completed. 2-24 (g) The municipality shall file the written consent of the 2-25 property owner with the municipal clerk or secretary. 2-26 (h) If the municipality contracts with another person to 2-27 perform the work, the contract must be awarded in compliance with 2-28 the competitive bidding requirements applicable to the 2-29 municipality. The provisions of the contract must comply with any 2-30 law applicable to the construction of public improvements by the 2-31 municipality. The contract may be changed as necessary for the 2-32 successful completion of the work, but the contract price may not 2-33 be increased by more than 10 percent because of those changes 2-34 without the written consent of the owner as provided by Subsection 3-1 (e). 3-2 (i) When the work is completed, the municipality shall issue 3-3 a certificate certifying that the work has been completed and the 3-4 cost of the improvements. The municipality shall file the 3-5 certificate with the county clerk of the county in which the 3-6 property is located and shall deliver a copy of the certificate to 3-7 the property owner. 3-8 (j) The property owner, on or before the fifth anniversary 3-9 of the date of the issuance of the certificate, must pay the 3-10 municipality the amount that the completed work cost the 3-11 municipality as evidenced by the certificate, plus simple interest 3-12 in an amount not to exceed 10 percent a year as set by the 3-13 governing body of the municipality. On payment of the principal 3-14 amount and accrued interest, the municipality shall issue a release 3-15 of the assessment and lien. The release may be filed for record as 3-16 provided by law. 3-17 (k) If the property owner does not pay the assessment during 3-18 the five-year period, the municipality may enforce the lien on the 3-19 property in the same manner in which it is authorized by law to 3-20 enforce the lien for a paving or other assessment. 3-21 SECTION 2. The importance of this legislation and the 3-22 crowded condition of the calendars in both houses create an 3-23 emergency and an imperative public necessity that the 3-24 constitutional rule requiring bills to be read on three several 3-25 days in each house be suspended, and this rule is hereby suspended, 3-26 and that this Act take effect and be in force from and after its 3-27 passage, and it is so enacted. 3-28 COMMITTEE AMENDMENT NO. 1 3-29 Amend HB 320 as follows: 3-30 On page 3, line 21 add the following: "The certificate must 3-31 contain the legal description of the land and name of the property 3-32 owner. The lien created pursuant to this section shall attach and 3-33 arise when the certificate is recorded in the real property 3-34 records. The lien is binding on subsequent grantees, lienholders, 4-1 or other transferees of an interest in the property who acquire 4-2 such interest after the recording of the certificate." 4-3 Moffat