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. 2-16 * * * * *