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