81R9545 JTS-F
By: Bohac H.B. No. 2350
A BILL TO BE ENTITLED
AN ACT
relating to the authority of certain municipalities to require
trust accounts for certain commercial buildings; providing a
criminal penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 214, Local Government Code, is amended
by adding Subchapter I to read as follows:
SUBCHAPTER I. TRUST ACCOUNTS FOR CERTAIN COMMERCIAL BUILDINGS IN
CERTAIN MUNICIPALITIES
Sec. 214.251. DEFINITIONS. In this subchapter,
"commercial" and "International Building Code" have the meanings
assigned by Section 214.211.
Sec. 214.252. ORDINANCE AUTHORIZING TRUST ORDER. A
municipality located in a county with a population of 3.3 million or
more by ordinance may authorize a municipal official to issue a
trust order in writing to the owner of a commercial building to
establish a trust account for the building if the official finds
that the building:
(1) is not in compliance with the International
Building Code, as that code may have been amended by the
municipality; and
(2) constitutes an immediate hazard to human life or
to property.
Sec. 214.253. TRUST ACCOUNT. (a) An ordinance under this
subchapter may require an owner subject to a trust order to
establish an account insured by the Federal Deposit Insurance
Corporation at a financial institution with retail operations in
the municipality or elsewhere in this state.
(b) The ordinance may require the owner to deposit all rent
paid for use of the building into the trust account and prohibit the
owner from withdrawing funds from the trust account except to make
payments in the ordinary course of business to:
(1) a taxing authority to pay ad valorem taxes
assessed against the real property on which the building is
located;
(2) the financial institution at which the trust
account is maintained to pay fees or charges reasonable and
necessary to maintain the account;
(3) any supplier of electricity, natural gas, water,
or garbage removal services directly to the building;
(4) the holder of debt secured by an enforceable lien
against the building or against the property on which the building
is located, unless the holder is an insider, as that term is defined
by Section 24.002, Business & Commerce Code, of the owner; or
(5) a person or entity that has supplied goods or
services reasonably necessary to bring the building into compliance
with the International Building Code, as that code may have been
amended by the municipality.
Sec. 214.254. MONTHLY ACCOUNTING. An ordinance under this
subchapter may require the owner of a building subject to a trust
order to submit to the municipal official a monthly accounting
sworn to by the owner that:
(1) provides all information reasonably necessary to
identify the trust account and the persons authorized to withdraw
funds from the account;
(2) states the total amount of rent received for use of
the building during the period covered by the accounting;
(3) states that:
(A) all rent received for use of the building
during the period covered by the accounting has been deposited into
the trust account;
(B) no ad valorem tax assessed against the real
property on which the building is located is delinquent; and
(C) no payment to any entity that has supplied
electricity, natural gas, water, or garbage removal services
directly to the building is overdue by more than 30 days; and
(4) describes the disbursement of all funds from the
trust account during the period covered by the accounting by date,
amount, purpose, recipient's name, and recipient's mailing and
physical addresses.
Sec. 214.255. CLOSING OF TRUST ACCOUNT. (a) An ordinance
adopted under this subchapter may provide that the owner may close
the trust account only after:
(1) the municipal official has stated in writing that
the building has been brought into compliance with the
International Building Code, as that code may have been amended by
the municipality; and
(2) the owner has submitted to the municipal official
a written statement sworn to by the owner that no payment to any
supplier of electricity, natural gas, water, or garbage removal
services directly to the building is overdue by more than 30 days.
(b) The ordinance may also provide that, not later than the
15th day after the date the owner has closed the trust account, the
owner must submit to the municipal official a written statement
sworn to by the owner describing the final disbursement of all funds
from the trust account by date, amount, purpose, recipient's name,
and recipient's mailing and physical addresses.
Sec. 214.256. OFFENSE. (a) An owner of a building commits
an offense if the owner violates an ordinance adopted under this
subchapter.
(b) An offense under this section is a Class C misdemeanor.
(c) Each day the violation continues constitutes a separate
offense.
(d) Section 3.04(a), Penal Code, does not apply to two or
more offenses consolidated or joined for trial under Section 3.02,
Penal Code, if each of the offenses is:
(1) for the violation of an ordinance adopted under
this subchapter;
(2) punishable by fine only; and
(3) tried in a municipal court, regardless of whether
the court is a municipal court of record.
SECTION 2. This Act takes effect January 1, 2010.