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.