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.
1-56 * * * * *