HBA-AMW, CCH H.B. 1050 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 1050 By: Solomons Business & Industry 7/19/2001 Enrolled BACKGROUND AND PURPOSE State law provides that a document related to real property must be recorded for it to be effective notice of its existence to third parties. House Bill 1050 provides that a lien on real property in favor of a governmental entity must be recorded in the real property records of the county in which the property or a portion of the property is located. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 1050 amends the Property and Transportation codes relating to a lien on real property in favor of a governmental entity. The bill provides that the lien must be recorded in the real property records of the county in which the property or a portion of the property is located unless the lien is imposed as a result of failure to pay ad valorem taxes or a penalty or interest owed in connection with those taxes, or the law establishing the lien expressly states otherwise, regardless of whether the lien arose on or after September 1, 2001. The bill provides that any notice of the lien required by law that is provided on or after September 1, 2001 must contain a legal description of the property. The notice must give, in addition to existing provisions, the name of the subdivision and affected blocks if the street abuts a subdivision for which a plat has been recorded in the county clerk's office for liens that arise on or after September 1, 2001. The bill provides that an assessment against abutting property is a lien on the property that is superior to any other lien or claim except a lien or claim for ad valorem taxes and a personal liability and charge against the owner of the property, for any lien arising on or after September 1, 2001. The bill provides that these provisions do not apply to a lien pertaining to well-site equipment, a state tax lien, for payment of wages lien, or a tax lien used to enforce compensation under the Texas Unemployment Compensation Act. EFFECTIVE DATE September 1, 2001.