BILL ANALYSIS C.S.H.B. 1743 By: Glaze March 30, 1995 Committee Report (Substituted) BACKGROUND The Texas Local Government Code allows home-rule municipalities to appoint a receiver for substandard properties in lieu of demolition. Before a building can be demolished or a receiver appointed to bring the property up to standards, a municipality is required to give notice to the owner of a building regarding violations of standards and hold a hearing on the issue if the owner requests it. During a regular review of HUD funded demolition and renovation projects, the Tyler Preservation Board developed the concept of using court ordered receivership as a tool for preservation. This is a unique concept that has apparently not been utilized by other states. It is doubtful that there will be many actions filed under the proposed act, but it does provide an additional tool in very limited instances for the preservation of historic structures, especially in cases referred to as "demolition by neglect". PURPOSE This amendment to the Local Government Code would permit a local Preservation Board, in municipalities designated a "Certified Local Government" by the Texas Historical Commission, to review substandard buildings slated for possible demolition to determine whether it has historical significance. If found to be historically significant, the issuance of a demolition order may be stayed for 90 days to seek alternative uses for the property. If the owner does not come forward and the property has been deemed historic, a receiver action is permitted in lieu of demolition. 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 Subchapter A, Chapter 214, Local Government Code by adding Section 214.00111 as follows: Sec. 214.00111. ADDITIONAL AUTHORITY TO PRESERVE SUBSTANDARD BUILDING AS HISTORIC PROPERTY. Allows the local preservation board to review substandard buildings for possible designation as a Recorded Texas Historic Landmark, eligibility for a municipal Historic Designation or nomination for the National Register of Historic places if the municipality has been designated a "Certified Local Government" by the Texas Historical Commission under 16 U.S.C.A. Section 470 et seq. Exempts single family dwellings. Requires the review prior to public notice or hearing. Specifies the criteria to be used by the Preservation Board in reviewing such property. Requires findings of such review to be reported to the municipality in writing. Allows the municipality 90 days to find alternative uses or an alternative purchaser if the preservation board report determines that the property may be rehabilitated and designated as historic property. Exempts owner of a building from accrual of penalties during the 90-day period provided. SECTION 2. Amends Section 214.003, Local Government Code, by adding a new subsection (c) as follows, and renumbering the remaining subsections: Allows the court to appoint a receiver for historic properties subject to Section 214.00111. Specifies the guidelines a court appointed receiver must use in rehabilitating historic properties. SECTION 3. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The original made review by the historic preservation board mandatory; the substitute makes review permissive. SUMMARY OF COMMITTEE ACTION H.B. 1743 was considered in a public hearing on March 20, 1995. It was left pending. It was considered in a public hearing on March 27, 1995. The committee considered a complete substitute for the bill. The substitute was adopted without objection. The following people testified in favor of the bill: Rep. Glaze; and Randal B. Gilbert, representing himself and the City of Tyler Historic Preservation Board. The bill was reported favorably, as substituted, with the recommendation that it do pass and be printed, by a record vote of 6 ayes, 0 nays, 0 pnv, and 3 absent.