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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of certain municipalities to require |
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trust accounts for certain commercial buildings; providing a |
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criminal penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 214, Local Government Code, is amended |
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by adding Subchapter I to read as follows: |
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SUBCHAPTER I. TRUST ACCOUNTS FOR CERTAIN COMMERCIAL BUILDINGS IN |
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CERTAIN MUNICIPALITIES |
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Sec. 214.251. DEFINITIONS. In this subchapter, |
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"commercial" and "International Building Code" have the meanings |
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assigned by Section 214.211. |
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Sec. 214.252. ORDINANCE AUTHORIZING TRUST ORDER. A |
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municipality located in a county with a population of 3.3 million or |
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more by ordinance may authorize a municipal official to issue a |
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trust order in writing to the owner of a commercial building to |
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establish a trust account for the building if the official finds |
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that the building: |
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(1) is not in compliance with the International |
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Building Code, as that code may have been amended by the |
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municipality; and |
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(2) constitutes an immediate hazard to human life or |
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to property. |
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Sec. 214.253. TRUST ACCOUNT. (a) An ordinance under this |
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subchapter may require an owner subject to a trust order to |
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establish an account insured by the Federal Deposit Insurance |
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Corporation at a financial institution with retail operations in |
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the municipality or elsewhere in this state. |
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(b) The ordinance may require the owner to deposit all rent |
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paid for use of the building into the trust account and prohibit the |
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owner from withdrawing funds from the trust account except to make |
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payments in the ordinary course of business to: |
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(1) a taxing authority to pay ad valorem taxes |
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assessed against the real property on which the building is |
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located; |
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(2) the financial institution at which the trust |
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account is maintained to pay fees or charges reasonable and |
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necessary to maintain the account; |
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(3) any supplier of electricity, natural gas, water, |
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or garbage removal services directly to the building; |
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(4) the holder of debt secured by an enforceable lien |
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against the building or against the property on which the building |
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is located, unless the holder is an insider, as that term is defined |
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by Section 24.002, Business & Commerce Code, of the owner; or |
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(5) a person or entity that has supplied goods or |
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services reasonably necessary to bring the building into compliance |
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with the International Building Code, as that code may have been |
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amended by the municipality. |
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Sec. 214.254. MONTHLY ACCOUNTING. An ordinance under this |
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subchapter may require the owner of a building subject to a trust |
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order to submit to the municipal official a monthly accounting |
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sworn to by the owner that: |
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(1) provides all information reasonably necessary to |
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identify the trust account and the persons authorized to withdraw |
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funds from the account; |
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(2) states the total amount of rent received for use of |
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the building during the period covered by the accounting; |
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(3) states that: |
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(A) all rent received for use of the building |
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during the period covered by the accounting has been deposited into |
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the trust account; |
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(B) no ad valorem tax assessed against the real |
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property on which the building is located is delinquent; and |
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(C) no payment to any entity that has supplied |
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electricity, natural gas, water, or garbage removal services |
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directly to the building is overdue by more than 30 days; and |
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(4) describes the disbursement of all funds from the |
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trust account during the period covered by the accounting by date, |
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amount, purpose, recipient's name, and recipient's mailing and |
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physical addresses. |
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Sec. 214.255. CLOSING OF TRUST ACCOUNT. (a) An ordinance |
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adopted under this subchapter may provide that the owner may close |
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the trust account only after: |
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(1) the municipal official has stated in writing that |
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the building has been brought into compliance with the |
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International Building Code, as that code may have been amended by |
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the municipality; and |
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(2) the owner has submitted to the municipal official |
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a written statement sworn to by the owner that no payment to any |
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supplier of electricity, natural gas, water, or garbage removal |
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services directly to the building is overdue by more than 30 days. |
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(b) The ordinance may also provide that, not later than the |
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15th day after the date the owner has closed the trust account, the |
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owner must submit to the municipal official a written statement |
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sworn to by the owner describing the final disbursement of all funds |
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from the trust account by date, amount, purpose, recipient's name, |
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and recipient's mailing and physical addresses. |
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Sec. 214.256. OFFENSE. (a) An owner of a building commits |
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an offense if the owner violates an ordinance adopted under this |
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subchapter. |
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(b) An offense under this section is a Class C misdemeanor. |
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(c) Each day the violation continues constitutes a separate |
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offense. |
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(d) Section 3.04(a), Penal Code, does not apply to two or |
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more offenses consolidated or joined for trial under Section 3.02, |
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Penal Code, if each of the offenses is: |
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(1) for the violation of an ordinance adopted under |
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this subchapter; |
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(2) punishable by fine only; and |
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(3) tried in a municipal court, regardless of whether |
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the court is a municipal court of record. |
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SECTION 2. This Act takes effect January 1, 2010. |