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


Office of House Bill AnalysisC.S.H.B. 1050
By: Solomons
Business & Industry
3/27/2001
Committee Report (Substituted)



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.  C.S.H.B. 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

C.S.H.B. 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
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. The bill
provides that  these provisions do not apply to a lien pertaining to
well-site equipment or a state tax lien.  

EFFECTIVE DATE

September 1, 2001.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 1050 modifies the original to provide that a lien on real property
in favor of a governmental entity must be recorded in the county records in
which the property or portion of the property is located unless the lien is
imposed as a result of a failure to pay ad valorem taxes or a penalty or
interest owed in connection with those taxes.  The substitute also provides
that the provisions of this bill do not apply to a lien pertaining to
well-site equipment or a state tax lien.