BILL ANALYSIS



H.B. 307
By: Park
03-15-95
Committee Report (Unamended)


BACKGROUND

Currently, law allows cities to repair, remove, or demolish
substandard buildings and levy the cost as a lien against the
property.  This lien takes precedence only as to the owner and not
as to the mortgage lienholder.  This means that if a city spends
money to repair, remove, or demolish a substandard building, the
mortgage lienholder gets the benefit without any repayment to the
public treasury which is then out the cost of the procedure.


PURPOSE

This bill will allow a municipality to repair, remove, or demolish
structures in the knowledge that their liens will attach and be
subordinate to tax liens and all recorded bona fide mortgage liens
attached to real property before September 1, 1995, and before the
date the municipality's lien attaches.


RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency or institution.

SECTION BY SECTION ANALYSIS

Section 1: Amends Section 214.001(o), Local Government Code to
allow a local government lien filed on structure needing to be
repaired, removed, or demolished to be subordinate to mortgage
liens attached to the real property before September 1, 1995, and
before the date to which the municipality's lien attaches.

Section 2: Emergency clause.

SUMMARY OF COMMITTEE ACTION

H.B. 307 was heard by the committee in a public hearing on March
13, 1995.  The following persons testified in favor of the bill:
Rep. Park; and Bob McFarland, representing himself.  The bill was
reported favorably, without amendment, with the recommendation that
it do pass and be printed, by a record vote of 8 ayes, 1 nay, 0
pnv, and 0 absent.