1-1     By:  Burnam (Senate Sponsor - Moncrief)               H.B. No. 2374
 1-2           (In the Senate - Received from the House April 19, 1999;
 1-3     April 20, 1999, read first time and referred to Committee on
 1-4     Intergovernmental Relations; May 6, 1999, reported favorably by the
 1-5     following vote:  Yeas 5, Nays 0; May 6, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the financial guaranty requirements for certain owners,
 1-9     lienholders, and mortgagees of certain substandard buildings.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Sections 214.001(k) and (m), Local Government
1-12     Code, are amended to read as follows:
1-13           (k)  If the municipality allows the owner, lienholder, or
1-14     mortgagee more than 90 days to complete any part of the work
1-15     required to repair, remove, or demolish the building, the
1-16     municipality shall require the owner, lienholder, or mortgagee to
1-17     regularly submit progress reports to the municipality to
1-18     demonstrate compliance [that the owner, lienholder, or mortgagee
1-19     has complied] with the time schedules established for commencement
1-20     and performance of the work.  The order may require that the owner,
1-21     lienholder, or mortgagee appear before the hearing official or the
1-22     hearing official's designee to demonstrate compliance with the time
1-23     schedules.  If the owner, lienholder, or mortgagee owns property,
1-24     including structures or improvements on property, within the
1-25     municipal boundaries that exceeds $100,000 in total value, the
1-26     municipality may require the owner, lienholder, or mortgagee to
1-27     post a cash or surety bond in an amount adequate to cover the cost
1-28     of repairing, removing, or demolishing a building under this
1-29     subsection.  In lieu of a bond, the municipality may require the
1-30     owner, lienholder, or mortgagee to provide a letter of credit from
1-31     a financial institution or a guaranty from a third party approved
1-32     by the municipality.  The bond must be posted, or the letter of
1-33     credit or third party guaranty provided, not later than the 30th
1-34     day after the date the municipality issues the order.
1-35           (m)  If the building is not vacated, secured, repaired,
1-36     removed, or demolished, or the occupants are not relocated within
1-37     the allotted time, the municipality may vacate, secure, remove, or
1-38     demolish the building or relocate the occupants at its own expense.
1-39     This subsection does not limit the ability of a municipality to
1-40     collect on a bond or other financial guaranty that may be required
1-41     by Subsection (k).
1-42           SECTION 2.  (a)  This Act takes effect September 1, 1999.
1-43           (b)  The change in law made by this Act applies only to an
1-44     order issued in connection with a hearing held under Section
1-45     214.001, Local Government Code, on or after the effective date of
1-46     this Act.  An order issued in connection with a hearing held under
1-47     Section 214.001, Local Government Code, before the effective date
1-48     of this Act is governed by the law in effect immediately before the
1-49     effective date of this Act, and that law is continued in effect for
1-50     that purpose.
1-51           SECTION 3.  The importance of this legislation and the
1-52     crowded condition of the calendars in both houses create an
1-53     emergency and an imperative public necessity that the
1-54     constitutional rule requiring bills to be read on three several
1-55     days in each house be suspended, and this rule is hereby suspended.
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