By Solomons                                           H.B. No. 1050
         77R2218 CAS-F                           
                                A BILL TO BE ENTITLED
 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     the law establishing the lien expressly states that recording the
1-13     lien is not required.
1-14           (b)  Any notice of the lien required by law must contain a
1-15     legal description of the property.
1-16           SECTION 2.  Section 313.042(e), Transportation Code, is
1-17     amended to read as follows:
1-18           (e)  An assessment against abutting property is:
1-19                 (1)  a lien on the property that is superior to any
1-20     other lien or claim except a lien or claim for ad valorem taxes;
1-21     and
1-22                 (2)  a personal liability and charge against the owner
1-23     of the property, regardless of whether the owner is named.
1-24           SECTION 3.  Section 314.043(b), Transportation Code, is
 2-1     amended to read as follows:
 2-2           (b)  The notice required by Subsection (a) must:
 2-3                 (1)  show substantially that the governing body has
 2-4     determined it necessary that the street be improved;
 2-5                 (2)  give the name of:
 2-6                       (A)  the street and the names of the two cross
 2-7     streets or other approximate lengthwise limits between which the
 2-8     street is to be or has been improved or otherwise identify or
 2-9     designate the street and the portion of the street to be improved;
2-10     and
2-11                       (B)  the subdivision and affected blocks if the
2-12     street abuts a subdivision for which a plat has been recorded in
2-13     the county clerk's office; and
2-14                 (3)  state that a portion of the cost of the
2-15     improvement is to be or has been specifically assessed as a lien on
2-16     property abutting the street.
2-17           SECTION 4.  (a)  This Act takes effect September 1, 2001.
2-18           (b)  Section 51.008, Property Code, as added by this Act,
2-19     applies to a lien on real property in favor of a governmental
2-20     entity regardless of whether the lien arose before, on, or after
2-21     the effective date of this Act.  In the case of such lien that
2-22     arose before the effective date of this Act, the lien must be
2-23     recorded not later than December 31, 2002.  Section 51.008,
2-24     Property Code, as added by this Act, applies only to notice of such
2-25     lien provided on or after the effective date of this Act.  Notice
2-26     of such lien provided before the effective date of this Act is
2-27     covered by the law in effect when the notice was provided, and that
 3-1     law is continued in effect for that purpose.
 3-2           (c)  The amendment to Section 313.042(e), Transportation
 3-3     Code, by this Act, applies only to a lien arising under that
 3-4     section on or after the effective date of this Act.  A lien arising
 3-5     under that section before the effective date of this Act is covered
 3-6     by the law in effect when the lien arose, and that law is continued
 3-7     in effect for that purpose.
 3-8           (d)  The amendment to Section 314.043(b), Transportation
 3-9     Code, by this Act, applies only to notice required by Section
3-10     314.043(a), Transportation Code, provided on or after the effective
3-11     date of this Act.  Notice provided before the effective date of
3-12     this Act is covered by the law in effect when the notice was
3-13     provided, and the former law is continued in effect for that
3-14     purpose.