1-1                                   AN ACT
 1-2     relating to liens on real property in favor of governmental
 1-3     entities.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Chapter 51, Property Code, is amended by adding
 1-6     Section 51.008 to read as follows:
 1-7           Sec. 51.008.  CERTAIN LIENS ON REAL PROPERTY.  (a)  A lien on
 1-8     real property created under this code or another law of this state
 1-9     in favor of a governmental entity must be recorded as provided by
1-10     Chapters 11 and 12 in the real property records of the county in
1-11     which the property or a portion of the property is located unless:
1-12                 (1)  the lien is imposed as a result of failure to pay:
1-13                       (A)  ad valorem taxes; or
1-14                       (B)  a penalty or interest owed in connection
1-15     with those taxes; or
1-16                 (2)  the law establishing the lien expressly states
1-17     that recording the lien is not required.
1-18           (b)  Any notice of the lien required by law must contain a
1-19     legal description of the property.
1-20           (c)  This section does not apply to:
1-21                 (1)  a lien created under Section 89.083, Natural
1-22     Resources Code;
1-23                 (2)  a state tax lien under Chapter 113, Tax Code; or
1-24                 (3)  a lien established under Chapter 61 or 213, Labor
 2-1     Code.
 2-2           SECTION 2.  Section 313.042(e), Transportation Code, is
 2-3     amended to read as follows:
 2-4           (e)  An assessment against abutting property is:
 2-5                 (1)  a lien on the property that is superior to any
 2-6     other lien or claim except a lien or claim for ad valorem taxes;
 2-7     and
 2-8                 (2)  a personal liability and charge against the owner
 2-9     of the property, regardless of whether the owner is named.
2-10           SECTION 3.  Section 314.043(b), Transportation Code, is
2-11     amended to read as follows:
2-12           (b)  The notice required by Subsection (a) must:
2-13                 (1)  show substantially that the governing body has
2-14     determined it necessary that the street be improved;
2-15                 (2)  give the name of:
2-16                       (A)  the street and the names of the two cross
2-17     streets or other approximate lengthwise limits between which the
2-18     street is to be or has been improved or otherwise identify or
2-19     designate the street and the portion of the street to be improved;
2-20     and
2-21                       (B)  the subdivision and affected blocks if the
2-22     street abuts a subdivision for which a plat has been recorded in
2-23     the county clerk's office; and
2-24                 (3)  state that a portion of the cost of the
2-25     improvement is to be or has been specifically assessed as a lien on
2-26     property abutting the street.
2-27           SECTION 4.  (a)  This Act takes effect September 1, 2001.
 3-1           (b)  Section 51.008, Property Code, as added by this Act,
 3-2     applies to a lien on real property in favor of a governmental
 3-3     entity regardless of whether the lien arose on or after the
 3-4     effective date of this Act.  Section 51.008, Property Code, as
 3-5     added by this Act, applies only to notice of such a lien provided
 3-6     on or after the effective date of this Act.  Notice of such a lien
 3-7     provided before the effective date of this Act is covered by the
 3-8     law in effect when the notice was provided, and that law is
 3-9     continued in effect for that purpose.
3-10           (c)  The amendment to Section 313.042(e), Transportation
3-11     Code, by this Act applies only to a lien arising under that section
3-12     on or after the effective date of this Act.  A lien arising under
3-13     that section before the effective date of this Act is covered by
3-14     the law in effect when the lien arose, and that law is continued in
3-15     effect for that purpose.
3-16           (d)  The amendment to Section 314.043(b), Transportation
3-17     Code, by this Act applies only to notice required by Section
3-18     314.043(a), Transportation Code, provided on or after the effective
3-19     date of this Act.  Notice provided before the effective date of
3-20     this Act is covered by the law in effect when the notice was
3-21     provided, and the former law is continued in effect for that
3-22     purpose.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 1050 was passed by the House on May
         11, 2001, by a non-record vote; and that the House concurred in
         Senate amendments to H.B. No. 1050 on May 24, 2001, by a non-record
         vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 1050 was passed by the Senate, with
         amendments, on May 17, 2001, by the following vote:  Yeas 30, Nays
         0, 1 present, not voting.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor