1-1     By:  Krusee (Senate Sponsor - Ogden)                   H.B. No. 320

 1-2           (In the Senate - Received from the House April 14, 1997;

 1-3     April 16, 1997, read first time and referred to Committee on

 1-4     Natural Resources; April 28, 1997, reported favorably by the

 1-5     following vote:  Yeas 9, Nays 0; April 28, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the ability of municipalities to provide water or

 1-9     wastewater service to a residence to preserve the quality of an

1-10     aquifer the municipality uses as a water source.

1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-12           SECTION 1.  Subchapter Z, Chapter 402, Local Government Code,

1-13     is amended by adding Section 402.906 to read as follows:

1-14           Sec. 402.906.   CONSTRUCTION OF WATER OR WASTEWATER

1-15     IMPROVEMENTS TO PRESERVE WATER QUALITY OF AQUIFER.  (a) This

1-16     section applies only to territory located in a municipality or in

1-17     the extraterritorial jurisdiction of a municipality and located

1-18     over the recharge zone of an aquifer that provides all or part of

1-19     the water supply of the municipality.

1-20           (b)  To preserve the quality of the aquifer,  the

1-21     municipality or a person with whom the municipality contracts may:

1-22                 (1)  construct a sanitation sewer lateral or water

1-23     lateral that serves a residential structure on private property to

1-24     connect the lateral to a new, renovated, or rebuilt sanitation main

1-25     or water main constructed by or for the municipality; and

1-26                 (2)  take any action necessary to remedy aquifer

1-27     pollution problems caused by septic tanks or septic systems located

1-28     on the property, including filling in the tank or system or

1-29     removing the tank or system.

1-30           (c)  The municipality shall assess the cost of the water or

1-31     wastewater improvements under Subsection (b)(1) or Subsections

1-32     (b)(1)  and (b)(2), as applicable, against the property on which

1-33     the lateral is located.  A lien attaches to the property for the

1-34     cost of the improvements.

1-35           (d)  Before a municipality acts under Subsection (b), the

1-36     municipality must give notice to the property owner and obtain the

1-37     property owner's written consent to the activity to be performed

1-38     and to the amount of the assessment.

1-39           (e)  The notice provided under Subsection (d) must state the

1-40     estimated cost to the property owner of the improvements and  state

1-41     that the cost may be increased by not more than 10 percent because

1-42     of changes without the written consent of the owner.   The

1-43     municipality shall give the notice to the owner by personal

1-44     delivery or by depositing the notice in the United States mail with

1-45     postage prepaid.

1-46           (f)  To be valid, the owner's written consent must:

1-47                 (1)  state that the person giving the consent is the

1-48     property owner or the authorized representative of the property

1-49     owner;

1-50                 (2)  state the owner's address; and

1-51                 (3)  state that:

1-52                       (A)  the consent is given freely;

1-53                       (B)  the owner understands that as a result of

1-54     the assessment a lien attaches to the property for the total cost

1-55     of the improvements;

1-56                       (C)  the municipality will not pay any part of

1-57     the cost of the improvements; and

1-58                       (D)  the owner will repay the cost to the

1-59     municipality on or before the fifth anniversary of the date the

1-60     municipality certifies the work is completed.

1-61           (g)  The municipality shall file the written consent of the

1-62     property owner with the municipal clerk or secretary.

1-63           (h)  If the municipality contracts with another person to

1-64     perform the work, the contract must be awarded in compliance with

 2-1     the competitive bidding requirements applicable to the

 2-2     municipality.  The provisions of the contract must comply with any

 2-3     law applicable to the construction of public improvements by the

 2-4     municipality.  The contract may be changed as necessary for the

 2-5     successful completion of the work, but the contract price may not

 2-6     be increased by more than 10 percent because of those changes

 2-7     without the written consent of the owner as provided by Subsection

 2-8     (e).

 2-9           (i)  When the work is completed, the municipality shall issue

2-10     a certificate certifying that the work has been completed and the

2-11     cost of the improvements.  The municipality shall file the

2-12     certificate with the county clerk of the county in which the

2-13     property is located and shall deliver a copy of the certificate to

2-14     the property owner.  The certificate must contain the legal

2-15     description of the land and name of the property owner.  The lien

2-16     created pursuant to this section shall attach and arise when the

2-17     certificate is recorded in the real property records.  The lien is

2-18     binding on subsequent grantees, lienholders, or other transferees

2-19     of an interest in the property who acquire such interest after the

2-20     recording of the certificate.

2-21           (j)  The property owner, on or before the fifth anniversary

2-22     of the date of the issuance of the certificate, must pay the

2-23     municipality the amount that the completed work cost the

2-24     municipality as evidenced by the certificate, plus simple interest

2-25     in an amount not to exceed 10 percent a year as set by the

2-26     governing body of the municipality.  On payment of the principal

2-27     amount and accrued interest, the municipality shall issue a release

2-28     of the assessment and lien.  The release may be filed for record as

2-29     provided by law.

2-30           (k)  If the property owner does not pay the assessment during

2-31     the five-year period, the municipality may enforce the lien on the

2-32     property in the same manner in which it is authorized by law to

2-33     enforce the lien for a paving or other assessment.

2-34           SECTION 2.  The importance of this legislation and the

2-35     crowded condition of the calendars in both houses create an

2-36     emergency and an imperative public necessity that the

2-37     constitutional rule requiring bills to be read on three several

2-38     days in each house be suspended, and this rule is hereby suspended,

2-39     and that this Act take effect and be in force from and after its

2-40     passage, and it is so enacted.

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