HBA-TYH, DMD H.B. 2374 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2374
By: Burnam
Urban Affairs
7/8/1999
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 76th Legislature, when a building was identified as
substandard the owner was allowed to submit an action plan to the
municipality detailing the amount of time needed to rectify the problem,
but the owner was not required to post a form of security to back the
action plan. When an owner failed to comply with the plan, the municipality
would be  forced to take action, which generally required the expenditure
of municipal funds.  

H.B. 2374 authorizes a municipality to require owners, lienholders, or
mortgagees of buildings that exceed $100,000 in total value, to post a cash
or surety bond or a letter of credit, within thirty days, to cover the
costs of repair or for repairing, removing, or demolishing the building. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Sections 214.001(k) and (m), Local Government Code, as
follows: 

(k) Authorizes a municipality, if the owner, lienholder, or mortgagee owns
property, including structures or improvements on property, within the
municipal boundaries that exceeds $100,000 in total value, to require the
owner, lienholder, or mortgagee to post a cash or surety bond in an amount
adequate to cover the costs for the repairing, removing, or demolishing of
the building.  Authorizes the municipality to require, in lieu of a bond,
the owner, lienholder, or mortgagee to provide a letter of credit from a
financial institution or a guaranty from a third party approved by the
municipality.  Provides that the bond must be posted, or the letter of
credit or third party guaranty provided, not later than the 30th day after
the date the municipality issues the order.  Makes a nonsubstantive change. 

(m) Sets forth that this subsection does not limit the ability of a
municipality to collect on a bond or other financial guaranty that may be
required by Subsection (k). 

SECTION 2.Effective date: September 1, 1999.
Makes application of SECTION 1 (Section 214.001(k), Local Government Code)
of this Act prospective. 

SECTION 3.Emergency clause.