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.