BILL ANALYSIS
By: Madla
BACKGROUND AND PURPOSE
Generally, code enforcement officials will cite the owner of a property for code
violations. However, in some cases, code enforcement officials will personally
cite employees of property owners or management companies rather than the
owner. The citations hold the employee personally liable and in some cases,
have resulted in arrest warrants being issued for the employee.
Employees, whether they work for the property owner or a management company,
often do not have control over funds that may be needed to bring a property
into code compliance and must receive the owner's approval.
While it is appropriate to hold the property owner responsible or liable for
violations, it is wrong to hold an onsite employee personally responsible.
Senate Bill No. 399 provides that an employee cannot be held personally liable
for code citation if the employee provides code enforcement officials with the
name and address of the owner.
RULEMAKING AUTHORITY
It is the opinion of the Committee on Business and Industry that this bill does
not expressly grant any additional rulemaking authority to a state officer,
institution, or agency.
SECTION-BY-SECTION ANALYSIS
SECTION 1. Amends Subchapter A, Chapter 92, Property Code, by adding Section
92.016, as follows:
Sec. 92.016. LIABILITY OF TENANT FOR GOVERNMENTAL FINES. (a) Defines
"governmental entity."
(b) Prohibits a landlord or landlord's manager or agent from charging or
seeking reimbursement from the landlord's tenant for the amount of a fine
imposed on the landlord by a governmental entity unless the tenant or another
occupant of the tenant's dwelling actually caused the damage or other condition
on which the fine is based.
SECTION 2. Amends Chapter 250, Local Government Code, by adding Sections
250.003, 250.004, and 250.005, as follows:
Sec. 250.003. PERSONAL LIABILITY OF NONOWNERS. (a) Provides that an individual
who is an employee of the owner of real property for which a citation for a
violation of a county or
municipal rule or ordinance is issued, or of a company that manages the
property on behalf of the
property owner, is not personally liable for criminal or civil penalties resulting
from the violation if the individual provides the property owner's name, street
address, and telephone number to the
enforcement official who issues the citation or the official's superior.
(b) Provides that this section applies only to a citation for a violation
connected with real
property for which a political subdivision has issued a certificate of
occupancy or a
certificate of completion with respect to the construction of improvements on
the property. Provides that this section does not prohibit a municipality or
county from issuing a citation relating to the construction or development of a
property to an employee or contractor of the property owner or management
company.
Sec. 250.004. AGENT FOR SERVICE. Provides that the employee or owner to whom a
citation
described by Section 250.003 is issued is considered the owner's agent for
accepting service of the citation for the violation of the county or municipal
rule or ordinance, if the property owner's street address is not in this state.
Provides that service of the citation on the agent has the same legal effect as
service on the owner for the purpose of fines against the owner or the
property, including a warrant or capias.
Sec. 250.005. OTHER REMEDIES UNAFFECTED. Provides that Sections 250.003 and 250.004
do not limit the availability of remedies against a real property owner or real
property otherwise provided by law, including fines, closure, injunction, and
mandamus.
SECTION 3. (a) Makes application of Section 92.016, Property Code, as added by
this Act, prospective.
(b) Makes application of Sections 250.003, 250.004, and 250.005, Local
Government Code, as
added by this Act, prospective.
SECTION 4. Effective date: upon passage or September 1, 2005.
EFFECTIVE DATE
September 1, 2005, unless the bill receives the super-majority vote in both Houses of the Legislature required in order for it to take immediate effect.