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.