HBA-CCH H.B. 1050 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1050
By: Solomons
Business & Industry
3/9/2001
Introduced



BACKGROUND AND PURPOSE 

Current law provides that a document related to real property must be
recorded in order for it to be effective notice of its existence to third
parties.  Some proposed legislation imposes an automatic lien against
property in favor of a state agency, but does not require the lien to be
recorded.  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.  H.B. 1050
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 law establishing the lien expressly states otherwise, regardless of
whether the lien arose before, on, or after September 1, 2001. If the lien
arose before September 1, 2001, the lien must be recorded no later than
December 31, 2002. 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.  

EFFECTIVE DATE

September 1, 2001.