CHAPTER 313. STREET IMPROVEMENTS AND ASSESSMENTS IN CERTAIN MUNICIPALITIES

TRANSPORTATION CODE

TITLE 6. ROADWAYS

SUBTITLE E. MUNICIPAL STREETS

CHAPTER 313. STREET IMPROVEMENTS AND ASSESSMENTS IN CERTAIN

MUNICIPALITIES

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 313.001. DEFINITIONS. In this chapter:

(1) "Cost" includes an expense of engineering and other expense

incident to construction of an improvement.

(2) "Governing body" means the governing body of a municipality.

(3) "Highway" includes any part of a street, alley, public

place, or square, including a part left wholly or partly

unimproved in connection with another street improvement.

(4) "Improvement" includes the following, liberally construed:

(A) filling, grading, raising, paving, or repairing a highway in

a permanent manner;

(B) constructing, realigning, or repairing a curb, gutter, or

sidewalk;

(C) widening, narrowing, or straightening a highway; and

(D) an appurtenance or incidental to an improvement, including a

drain or culvert.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 313.002. APPLICABILITY OF CHAPTER. This chapter applies

only to a municipality that has a population of more than 1,000.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 313.003. GENERAL POWERS OF GOVERNING BODY. (a) The

governing body of a municipality may:

(1) determine the necessity for and order the improvement of a

highway in the municipality;

(2) contract for the construction of the improvement in the name

of the municipality; and

(3) provide for the payment of the cost of the improvement by

the municipality or partly by the municipality and partly by

assessments as provided by this chapter.

(b) The governing body by resolution, motion, order, or

ordinance may exercise a power granted by this chapter unless

this chapter specifically prescribes that the governing body act

by ordinance.

(c) The governing body by resolution or ordinance may adopt

rules appropriate to:

(1) the exercise of a power granted by this chapter;

(2) the method and manner of ordering or holding a hearing; and

(3) giving notice of a hearing.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER B. IMPROVEMENTS

Sec. 313.021. HIGHWAY IMPROVEMENTS AUTHORIZED. (a) A

municipality may improve a highway within its limits.

(b) A municipality that has a population of more than 285,000

may make an improvement on a highway outside the municipality's

limits if the improvement does not extend more than 150 feet from

the municipal limits.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 313.022. CONTRACT FOR IMPROVEMENT OF BOUNDARY HIGHWAY. (a)

A municipality may contract with another municipality for one

municipality to make an improvement to a part of a highway as

provided by this chapter and for the other to pay a part of the

cost of the improvement if:

(1) the boundary between the municipalities is on or along the

highway or the edge of the highway; and

(2) the governing bodies of the municipalities determine the

improvement is necessary.

(b) Either municipality may use its money for the improvement

under the contract without regard to whether the highway is

within the municipality's limits.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 313.023. PAYMENT FOR IMPROVEMENT. Payment for an

improvement under this chapter may be paid entirely by the

municipality or may be paid partly by the municipality and partly

by property abutting the part of the highway ordered to be

improved and the owners of that property.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 313.024. ESTIMATE OF COST. If part of the cost of an

improvement is to be paid by the property abutting the part of

the highway to be improved and the owner of the property, the

governing body shall prepare an estimate of the cost of the

improvement before the improvement is constructed and before the

hearing provided by Section 313.048 is held.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER C. ASSESSMENTS

Sec. 313.041. DEFINITION. In this subchapter, "railway"

includes a street railway and an interurban.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 313.042. ASSESSMENT ORDINANCE. (a) The governing body of

a municipality by ordinance may assess the cost of an improvement

under this chapter against property that abuts the highway or

part of the highway the municipality orders to be improved and

against the owner of the property.

(b) Except as provided by Subsection (c), the governing body may

not assess more than nine-tenths of the estimated cost of an

improvement against properties or their owners.

(c) The entire cost of constructing, repairing, or realigning a

curb, gutter, or sidewalk may be assessed against the property

and its owner.

(d) The ordinance may:

(1) prescribe the terms of payment and default of the

assessment; and

(2) prescribe the rate of interest to be paid on the assessment,

not to exceed the greater of:

(A) eight percent a year; or

(B) the rate payable by the municipality on its most recently

issued general obligation bonds, determined as of the date of the

notice provided by Section 313.047.

(e) An assessment against abutting property is:

(1) a lien on the property that is superior to any other lien or

claim except a lien or claim for ad valorem taxes; and

(2) a personal liability and charge against the owner of the

property, regardless of whether the owner is named.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 2001, 77th Leg., ch. 827, Sec. 2, eff. Sept. 1,

2001.

Sec. 313.043. ASSESSMENT AGAINST PARCELS OWNED JOINTLY. (a) A

single assessment may be made against multiple parcels of

property owned by the same person.

(b) Property owned jointly may be assessed jointly.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 313.044. ASSESSMENT APPORTIONED UNDER FRONT FOOT RULE

UNLESS INEQUITABLE. (a) A cost of an improvement that is

assessed against abutting property and the owners of the property

shall be apportioned among the parcels of abutting property and

the owners of the property in accordance with the front foot

rule.

(b) If, in the opinion of the governing body, the application of

the front foot rule in a particular case would result in

injustice or inequality, the governing body shall apportion and

assess the costs in the proportion it determines just and

equitable, considering:

(1) the special benefit the property and the owner receive in

enhanced value to the property;

(2) the equities of the owners; and

(3) the adjustment of the apportionment so as to produce a

substantial equality of benefits received and burdens imposed.

(c) The entirety of a parcel of real property abutting the

highway proposed for assessment is subject to the assessment

irrespective of subdivision or partial sale after the date on

which the notice was mailed if:

(1) an assessment is imposed by ordinance; and

(2) the municipality has delivered to the county clerk for

recording a notice of the proposed assessment that describes, or

describes by reference, each abutting parcel.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 313.045. ASSESSMENT OR TAX ON RAILWAYS FOR CERTAIN

IMPROVEMENTS. (a) The governing body of a municipality may

assess against a railway that uses, occupies, or crosses a

highway the cost of a highway improvement in the area between,

under, or in the area extending two feet outside of the railway's

rails, tracks, double tracks, turn outs, or switches.

(b) The governing body by ordinance may impose a special tax on

the railway and its roadbed, ties, rails, fixtures, rights, and

franchises.

(c) The tax imposed under Subsection (b) is a lien on the

railway and its roadbed, ties, rails, fixtures, rights, and

franchises that is superior to any other lien or claim except

county or municipal ad valorem taxes.

(d) A tax lien imposed under Subsection (c) may be enforced by:

(1) sale of the property in the manner provided by law for the

collection of ad valorem taxes by the municipality; or

(2) suit.

(e) The ordinance imposing the special tax must prescribe the

terms of payment of the tax.

(f) The rate of interest may not exceed the greater of:

(1) eight percent a year; or

(2) the rate payable by the municipality on its most recently

issued general obligation bonds, determined as of the date of the

notice provided by Section 313.047.

(g) If the special tax imposed under Subsection (b) is not paid

when due, the municipality may collect the tax, interest,

expenses of collection, and reasonable attorney's fees, if

incurred.

(h) The governing body may issue assignable certificates in

evidence of an assessment as provided by Section 313.052.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 313.046. ASSESSMENT FOR IMPROVEMENT OF BOUNDARY HIGHWAY.

(a) If part of the boundary of a municipality is on or along a

highway, the municipality may improve that part of the highway

and assess a part of the cost of the improvement against the

abutting property on both sides of the highway as provided by

Section 313.048.

(b) If the highway is wholly or partly in another municipality,

the improvement and assessments are subject to consent of the

governing body of the other municipality.

(c) An assessment imposed under Section 313.048 against abutting

property that is in a municipality other than the municipality

initiating the improvement is valid only if the governing body of

the other municipality by ordinance or resolution ratifies the

assessment.

(d) A person who owns or claims the abutting property has, in

addition to the right of appeal provided by Section 313.049, the

right of appeal from an assessment for 15 days after the date the

ratifying ordinance or resolution is adopted by the governing

body of the other municipality.

(e) If the governing body of the other municipality does not

ratify the assessment within 30 days after the date of the

ordinance or resolution imposing the assessment, the municipality

that initiated the improvement may repeal and annul all of the

assessment proceedings, including a contract for the improvement.

(f) The failure of the governing body of the other municipality

to ratify an assessment does not affect the validity of an

assessment imposed against property that is in the municipality

that initiated the improvement.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 313.047. NOTICE OF HEARING ON ASSESSMENT. (a) An

assessment may be made against an abutting property or its owner

or against a railway or its owner only after notice and

opportunity for hearing as provided by this section and Section

313.048.

(b) Notice of the hearing shall be published at least three

times in a newspaper published in the municipality in which the

assessment tax is to be imposed. If the municipality does not

have a newspaper, the notice shall be published in the newspaper

that is published nearest to the municipality and that is of

general circulation in the county in which the municipality is

located.

(c) The first publication of the notice shall be made not later

than the 21st day before the date of the hearing.

(d) In addition to the notice required by Subsection (c),

written notice of the hearing shall be given by mail, postage

prepaid, deposited at least 14 days before the date of the

hearing, and addressed to the owners of the properties abutting

the part of the highway to be improved, as the names and

addresses of the owners are shown on the rendered tax roll of the

municipality. If the names of the respective owners do not appear

on the rendered tax roll, the notice shall be addressed to the

owners as their names and addresses are shown on the unrendered

tax roll of the municipality.

(e) If a special tax is proposed to be imposed against a railway

that uses, occupies, or crosses a part of a highway to be

improved, the additional notice shall be given by mail, postage

prepaid, deposited at least 14 days before the date of the

hearing, and addressed to the railway as shown on the rendered

tax roll of the municipality. If the name of the railway does not

appear on the rendered tax roll of the municipality, the notice

shall be addressed to the railway as its name and address are

shown on the unrendered tax roll of the municipality.

(f) The notice is sufficient, valid, and binding on each person

who owns or claims an interest in the property or the railway if

the notice:

(1) describes in general terms the nature of the improvement for

which the proposed assessment is to be imposed;

(2) states the part of the highway to be improved;

(3) states the estimated amount per front foot proposed to be

assessed against the owners of abutting property and the property

on which the hearing is to be held;

(4) states the estimated total cost of the improvement on each

part of the highway;

(5) states the amount proposed to be assessed for the

improvements proposed to be constructed in part of the area

between, under, and two feet outside of rails, tracks, double

tracks, turnouts, or switches of a railway; and

(6) states the time and place of the hearing.

(g) The mailed notice may consist of a copy of the published

notice.

(h) If an owner of property abutting a part of a highway

proposed to be improved is listed as "unknown" on the municipal

tax roll or if the name of an owner is shown on the municipal tax

roll but no address for the owner is shown, it is not necessary

to mail a notice. If the owner is shown as an estate, the notice

may be mailed to the address of the estate.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 313.048. HEARING. (a) A hearing under this subchapter

shall be before the governing body of the municipality.

(b) The owner of property abutting a proposed improvement or the

owner of an affected railway is entitled to:

(1) be heard on any matter for which a hearing is a

constitutional prerequisite to the validity of an assessment

under this chapter; and

(2) contest:

(A) the amount of the proposed assessment;

(B) the lien and liability for the assessment;

(C) the special benefit of the proposed improvement to the

abutting property and the owner of the abutting property; and

(D) the accuracy, sufficiency, regularity, or validity of the

proceedings or contract for the improvement and proposed

assessment.

(c) The governing body may:

(1) correct an error, inaccuracy, irregularity, or invalidity;

(2) supply a deficiency;

(3) determine the amount of an assessment;

(4) determine any other necessary matter; and

(5) by ordinance, end the hearing and impose the assessment

before, during, or after the construction of the improvement.

(d) An assessment may not:

(1) exceed the enhanced value to the property as determined at

the hearing; or

(2) be made to mature before the municipality accepts the

improvement for which the assessment is imposed.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 313.049. APPEAL OF ASSESSMENT. (a) A person who owns or

claims an interest in assessed property or in an assessed railway

may bring suit to contest:

(1) the amount of the assessment;

(2) an inaccuracy, irregularity, invalidity, or insufficiency of

the proceedings or contract relating to the assessment or the

improvements; or

(3) any matter or thing not in the discretion of the governing

body.

(b) The suit must be brought not later than the 15th day after

the date the assessment is imposed.

(c) After the period provided by Subsection (b), a person who

fails to bring suit:

(1) waives every matter the hearing might have addressed; and

(2) is barred from contesting or questioning in any manner or

for any reason:

(A) the assessment;

(B) the amount, accuracy, validity, regularity, or sufficiency

of the assessment;

(C) the assessment proceedings; or

(D) a contract relating to the assessment or the improvement.

(d) This section applies to an assessment made under Section

313.048 or 313.050.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 313.050. CORRECTION OF ASSESSMENTS. If an assessment is

determined to be invalid or unenforceable, the governing body of

the municipality may:

(1) supply any deficiency in the assessment proceedings;

(2) correct any mistake or irregularity in connection with the

assessment; and

(3) at any time, make and impose a subsequent assessment after

notice and hearing as nearly as possible in the manner this

chapter provides for an original assessment and subject to the

provisions of this chapter regarding special benefits.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 313.051. NO LIEN ON EXEMPT PROPERTY; LIABILITY OF OWNER.

(a) This chapter does not authorize a lien against an interest

in property that, at the time an improvement is ordered, is

exempt from any lien created by an assessment for a street

improvement.

(b) Notwithstanding Subsection (a), the owner of exempt property

is personally liable for an assessment in connection with the

property.

(c) The omission of an improvement fronting exempt property does

not invalidate the lien or liability for an assessment made

against nonexempt property.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 313.052. ASSESSMENT CERTIFICATES. (a) The governing body

may issue in the name of the municipality an assignable

certificate to evidence an assessment imposed. The certificate

may declare the lien on the property and the liability of the

owner of the property regardless of whether the owner is

correctly named. The governing body may determine the terms of

the certificate.

(b) A recital in a certificate that states substantially that

the procedure for making the improvement was in compliance with

law and that all prerequisites to creating the assessment lien on

the property the certificate describes and to creating the

personal liability of the property owner were performed is prima

facie evidence of those matters.

(c) Subsection (b) applies to a recital in a certificate that

evidences an assessment under Section 313.048 or 313.050.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 313.053. CHANGES IN PROCEEDINGS; PROCEDURE. (a) The

governing body of a municipality may change a plan, method, or

contract for an improvement or other proceeding related to a

plan, method, or contract for an improvement.

(b) A change that substantially affects the nature or quality of

an improvement may not be made unless the governing body

determines, by a two-thirds vote, that it is impractical to

proceed with the improvement.

(c) If a substantial change is made after a hearing has been

ordered or held, the governing body, in the same manner and with

the same effect as provided for an original notice and hearing,

shall:

(1) make a new estimate of cost;

(2) order and hold a new hearing; and

(3) give new notices.

(d) If an improvement is abandoned, the new estimate, hearing,

and notices are not required.

(e) A change in or abandonment of an improvement must be with

the consent of the person who contracted with the municipality

for the construction of the improvement.

(f) If an improvement is abandoned, a municipality shall adopt

an ordinance that has the effect of canceling:

(1) any assessment imposed for the abandoned improvement; and

(2) all other proceedings relating to the abandoned improvement.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 313.054. ENFORCEMENT OF ASSESSMENT; PRIORITY OF LIEN;

DEFENSES. (a) An assessment under this subchapter:

(1) is collectible with interest, expense of collection, and

reasonable attorney's fees, if incurred;

(2) is a first and prior lien on the property on which the lien

is created from the date the municipality orders the improvement;

and

(3) is superior to any other lien or claim other than a lien or

claim for county, school district, or municipal ad valorem taxes.

(b) A lien against property or the personal liability of a

property owner that arises from an assessment made under this

subchapter may be enforced by:

(1) suit; or

(2) sale of the property assessed in the manner provided by law

for sale of property for municipal ad valorem taxes.

(c) In a suit on an assessment for which a certificate has been

issued, it is sufficient to allege the substance of the recitals

in the certificate and that the recitals are true. Additional

allegations about the assessment proceedings are not necessary in

the suit.

(d) In a suit to enforce an assessment, the only defenses are

that:

(1) the notice of the hearing:

(A) was not mailed as required;

(B) was not published; or

(C) did not contain the substance of a requirement prescribed

for the notice; or

(2) the assessment exceeded the amount of the estimate.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 313.055. CHAPTER NOT AFFECTED BY STATEMENTS OR ACTIONS OF

MUNICIPAL OFFICERS OR EMPLOYEES. Nothing said or done by an

employee or officer of a municipality, including a member of the

governing body of the municipality, as shown in the

municipality's written proceedings and other records, affects

this chapter.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.