1-1     By:  Solomons (Senate Sponsor - Brown)                H.B. No. 1050
 1-2           (In the Senate - Received from the House May 11, 2001;
 1-3     May 11, 2001, read first time and referred to Committee on
 1-4     Jurisprudence; May 11, 2001, reported favorably by the following
 1-5     vote:  Yeas 5, Nays 0; May 11, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to liens on real property in favor of governmental
 1-9     entities.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Chapter 51, Property Code, is amended by adding
1-12     Section 51.008 to read as follows:
1-13           Sec. 51.008.  CERTAIN LIENS ON REAL PROPERTY.  (a)  A lien on
1-14     real property created under this code or another law of this state
1-15     in favor of a governmental entity must be recorded as provided by
1-16     Chapters 11 and 12 in the real property records of the county in
1-17     which the property or a portion of the property is located unless:
1-18                 (1)  the lien is imposed as a result of failure to pay:
1-19                       (A)  ad valorem taxes; or
1-20                       (B)  a penalty or interest owed in connection
1-21     with those taxes; or
1-22                 (2)  the law establishing the lien expressly states
1-23     that recording the lien is not required.
1-24           (b)  Any notice of the lien required by law must contain a
1-25     legal description of the property.
1-26           (c)  This section does not apply to:
1-27                 (1)  a lien created under Section 89.083, Natural
1-28     Resources Code; or
1-29                 (2)  a state tax lien under Chapter 113, Tax Code.
1-30           SECTION 2.  Section 313.042(e), Transportation Code, is
1-31     amended to read as follows:
1-32           (e)  An assessment against abutting property is:
1-33                 (1)  a lien on the property that is superior to any
1-34     other lien or claim except a lien or claim for ad valorem taxes;
1-35     and
1-36                 (2)  a personal liability and charge against the owner
1-37     of the property, regardless of whether the owner is named.
1-38           SECTION 3.  Section 314.043(b), Transportation Code, is
1-39     amended to read as follows:
1-40           (b)  The notice required by Subsection (a) must:
1-41                 (1)  show substantially that the governing body has
1-42     determined it necessary that the street be improved;
1-43                 (2)  give the name of:
1-44                       (A)  the street and the names of the two cross
1-45     streets or other approximate lengthwise limits between which the
1-46     street is to be or has been improved or otherwise identify or
1-47     designate the street and the portion of the street to be improved;
1-48     and
1-49                       (B)  the subdivision and affected blocks if the
1-50     street abuts a subdivision for which a plat has been recorded in
1-51     the county clerk's office; and
1-52                 (3)  state that a portion of the cost of the
1-53     improvement is to be or has been specifically assessed as a lien on
1-54     property abutting the street.
1-55           SECTION 4.  (a)  This Act takes effect September 1, 2001.
1-56           (b)  Section 51.008, Property Code, as added by this Act,
1-57     applies to a lien on real property in favor of a governmental
1-58     entity regardless of whether the lien arose before, on, or after
1-59     the effective date of this Act.  In the case of such a lien that
1-60     arose before the effective date of this Act, the lien must be
1-61     recorded not later than December 31, 2002.  Section 51.008,
1-62     Property Code, as added by this Act, applies only to notice of such
1-63     a lien provided on or after the effective date of this Act.  Notice
1-64     of such a lien provided before the effective date of this Act is
 2-1     covered by the law in effect when the notice was provided, and that
 2-2     law is continued in effect for that purpose.
 2-3           (c)  The amendment to Section 313.042(e), Transportation
 2-4     Code, by this Act applies only to a lien arising under that section
 2-5     on or after the effective date of this Act.  A lien arising under
 2-6     that section before the effective date of this Act is covered by
 2-7     the law in effect when the lien arose, and that law is continued in
 2-8     effect for that purpose.
 2-9           (d)  The amendment to Section 314.043(b), Transportation
2-10     Code, by this Act applies only to notice required by Section
2-11     314.043(a), Transportation Code, provided on or after the effective
2-12     date of this Act.  Notice provided before the effective date of
2-13     this Act is covered by the law in effect when the notice was
2-14     provided, and the former law is continued in effect for that
2-15     purpose.
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