By Burnam                                             H.B. No. 2374
         76R10903 SMJ-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the financial guaranty requirements for certain owners,
 1-3     lienholders, and mortgagees of certain substandard buildings.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Sections 214.001(k) and (m), Local Government
 1-6     Code, are amended to read as follows:
 1-7           (k)  If the municipality allows the owner, lienholder, or
 1-8     mortgagee more than 90 days to complete any part of the work
 1-9     required to repair, remove, or demolish the building, the
1-10     municipality shall require the owner, lienholder, or mortgagee to
1-11     regularly submit progress reports to the municipality to
1-12     demonstrate compliance [that the owner, lienholder, or mortgagee
1-13     has complied] with the time schedules established for commencement
1-14     and performance of the work.  The order may require that the owner,
1-15     lienholder, or mortgagee appear before the hearing official or the
1-16     hearing official's designee to demonstrate compliance with the time
1-17     schedules.  If the owner, lienholder, or mortgagee owns property,
1-18     including structures or improvements on property, within the
1-19     municipal boundaries that exceeds $100,000 in total value, the
1-20     municipality may require the owner, lienholder, or mortgagee to
1-21     post a cash or surety bond in an amount adequate to cover the cost
1-22     of repairing, removing, or demolishing a building under this
1-23     subsection.  In lieu of a bond, the municipality may require the
1-24     owner, lienholder, or mortgagee to provide a letter of credit from
 2-1     a financial institution or a guaranty from a third party approved
 2-2     by the municipality.  The bond must be posted, or the letter of
 2-3     credit or third party guaranty provided, not later than the 30th
 2-4     day after the date the municipality issues the order.
 2-5           (m)  If the building is not vacated, secured, repaired,
 2-6     removed, or demolished, or the occupants are not relocated within
 2-7     the allotted time, the municipality may vacate, secure, remove, or
 2-8     demolish the building or relocate the occupants at its own expense.
 2-9     This subsection does not limit the ability of a municipality to
2-10     collect on a bond or other financial guaranty that may be required
2-11     by Subsection (k).
2-12           SECTION 2.  (a)  This Act takes effect September 1, 1999.
2-13           (b)  The change in law made by this Act applies only to an
2-14     order issued in connection with a hearing held under Section
2-15     214.001, Local Government Code, on or after the effective date of
2-16     this Act.  An order issued in connection with a hearing held under
2-17     Section 214.001, Local Government Code, before the effective date
2-18     of this Act is governed by the law in effect immediately before the
2-19     effective date of this Act, and that law is continued in effect for
2-20     that purpose.
2-21           SECTION 3.  The importance of this legislation and the
2-22     crowded condition of the calendars in both houses create an
2-23     emergency and an imperative public necessity that the
2-24     constitutional rule requiring bills to be read on three several
2-25     days in each house be suspended, and this rule is hereby suspended.