LOCAL GOVERNMENT CODE
TITLE 7. REGULATION OF LAND USE, STRUCTURES, BUSINESSES, AND
RELATED ACTIVITIES
SUBTITLE A. MUNICIPAL REGULATORY AUTHORITY
CHAPTER 214. MUNICIPAL REGULATION OF HOUSING AND OTHER STRUCTURES
SUBCHAPTER A. DANGEROUS STRUCTURES
Sec. 214.001. AUTHORITY REGARDING SUBSTANDARD BUILDING. (a) A
municipality may, by ordinance, require the vacation, relocation
of occupants, securing, repair, removal, or demolition of a
building that is:
(1) dilapidated, substandard, or unfit for human habitation and
a hazard to the public health, safety, and welfare;
(2) regardless of its structural condition, unoccupied by its
owners, lessees, or other invitees and is unsecured from
unauthorized entry to the extent that it could be entered or used
by vagrants or other uninvited persons as a place of harborage or
could be entered or used by children; or
(3) boarded up, fenced, or otherwise secured in any manner if:
(A) the building constitutes a danger to the public even though
secured from entry; or
(B) the means used to secure the building are inadequate to
prevent unauthorized entry or use of the building in the manner
described by Subdivision (2).
(b) The ordinance must:
(1) establish minimum standards for the continued use and
occupancy of all buildings regardless of the date of their
construction;
(2) provide for giving proper notice, subject to Subsection
(b-1), to the owner of a building; and
(3) provide for a public hearing to determine whether a building
complies with the standards set out in the ordinance.
(b-1) For a condominium, as defined by Section 81.002 or 82.003,
Property Code, located wholly or partly in a municipality with a
population of more than 1.9 million, notice to a unit owner in
accordance with Section 82.118, Property Code, and notice to the
registered agent for the unit owners' association in the manner
provided for service of process to a condominium association
under Section 54.035(a-1) satisfy the notice requirements under
this section.
(c) A notice of a hearing sent to an owner, lienholder, or
mortgagee under this section must include a statement that the
owner, lienholder, or mortgagee will be required to submit at the
hearing proof of the scope of any work that may be required to
comply with the ordinance and the time it will take to reasonably
perform the work.
(d) After the public hearing, if a building is found in
violation of standards set out in the ordinance, the municipality
may order that the building be vacated, secured, repaired,
removed, or demolished by the owner within a reasonable time as
provided by this section. The municipality also may order that
the occupants be relocated within a reasonable time. If the
owner does not take the ordered action within the allotted time,
the municipality shall make a diligent effort to discover each
mortgagee and lienholder having an interest in the building or in
the property on which the building is located. The municipality
shall personally deliver, send by certified mail with return
receipt requested, or deliver by the United States Postal Service
using signature confirmation service, to each identified
mortgagee and lienholder a notice containing:
(1) an identification, which is not required to be a legal
description, of the building and the property on which it is
located;
(2) a description of the violation of municipal standards that
is present at the building; and
(3) a statement that the municipality will vacate, secure,
remove, or demolish the building or relocate the occupants of the
building if the ordered action is not taken within a reasonable
time.
(e) As an alternative to the procedure prescribed by Subsection
(d), the municipality may make a diligent effort to discover each
mortgagee and lienholder before conducting the public hearing and
may give them a notice of and an opportunity to comment at the
hearing. In addition, the municipality may file notice of the
hearing in the Official Public Records of Real Property in the
county in which the property is located. The notice must contain
the name and address of the owner of the affected property if
that information can be determined, a legal description of the
affected property, and a description of the hearing. The filing
of the notice is binding on subsequent grantees, lienholders, or
other transferees of an interest in the property who acquire such
interest after the filing of the notice, and constitutes notice
of the hearing on any subsequent recipient of any interest in the
property who acquires such interest after the filing of the
notice. If the municipality operates under this subsection, the
order issued by the municipality may specify a reasonable time as
provided by this section for the building to be vacated, secured,
repaired, removed, or demolished by the owner or for the
occupants to be relocated by the owner and an additional
reasonable time as provided by this section for the ordered
action to be taken by any of the mortgagees or lienholders in the
event the owner fails to comply with the order within the time
provided for action by the owner. Under this subsection, the
municipality is not required to furnish any notice to a mortgagee
or lienholder other than a copy of the order in the event the
owner fails to timely take the ordered action.
(f) Within 10 days after the date that the order is issued, the
municipality shall:
(1) file a copy of the order in the office of the municipal
secretary or clerk, if the municipality has a population of 1.9
million or less; and
(2) publish in a newspaper of general circulation in the
municipality in which the building is located a notice
containing:
(A) the street address or legal description of the property;
(B) the date of the hearing;
(C) a brief statement indicating the results of the order; and
(D) instructions stating where a complete copy of the order may
be obtained.
(g) After the hearing, the municipality shall promptly mail by
certified mail with return receipt requested, deliver by the
United States Postal Service using signature confirmation
service, or personally deliver a copy of the order to the owner
of the building and to any lienholder or mortgagee of the
building. The municipality shall use its best efforts to
determine the identity and address of any owner, lienholder, or
mortgagee of the building.
(h) In conducting a hearing authorized under this section, the
municipality shall require the owner, lienholder, or mortgagee of
the building to within 30 days:
(1) secure the building from unauthorized entry; or
(2) repair, remove, or demolish the building, unless the owner
or lienholder establishes at the hearing that the work cannot
reasonably be performed within 30 days.
(i) If the municipality allows the owner, lienholder, or
mortgagee more than 30 days to repair, remove, or demolish the
building, the municipality shall establish specific time
schedules for the commencement and performance of the work and
shall require the owner, lienholder, or mortgagee to secure the
property in a reasonable manner from unauthorized entry while the
work is being performed, as determined by the hearing official.
(j) A municipality may not allow the owner, lienholder, or
mortgagee more than 90 days to repair, remove, or demolish the
building or fully perform all work required to comply with the
order unless the owner, lienholder, or mortgagee:
(1) submits a detailed plan and time schedule for the work at
the hearing; and
(2) establishes at the hearing that the work cannot reasonably
be completed within 90 days because of the scope and complexity
of the work.
(k) If the municipality allows the owner, lienholder, or
mortgagee more than 90 days to complete any part of the work
required to repair, remove, or demolish the building, the
municipality shall require the owner, lienholder, or mortgagee to
regularly submit progress reports to the municipality to
demonstrate compliance with the time schedules established for
commencement and performance of the work. The order may require
that the owner, lienholder, or mortgagee appear before the
hearing official or the hearing official's designee to
demonstrate compliance with the time schedules. 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, the municipality may require the
owner, lienholder, or mortgagee to post a cash or surety bond in
an amount adequate to cover the cost of repairing, removing, or
demolishing a building under this subsection. In lieu of a bond,
the municipality may require 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. 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.
(l) In a public hearing to determine whether a building complies
with the standards set out in an ordinance adopted under this
section, the owner, lienholder, or mortgagee has the burden of
proof to demonstrate the scope of any work that may be required
to comply with the ordinance and the time it will take to
reasonably perform the work.
(m) If the building is not vacated, secured, repaired, removed,
or demolished, or the occupants are not relocated within the
allotted time, the municipality may vacate, secure, remove, or
demolish the building or relocate the occupants at its own
expense. 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).
(n) If a municipality incurs expenses under Subsection (m), the
municipality may assess the expenses on, and the municipality has
a lien against, unless it is a homestead as protected by the
Texas Constitution, the property on which the building was
located. The lien is extinguished if the property owner or
another person having an interest in the legal title to the
property reimburses the municipality for the expenses. The lien
arises and attaches to the property at the time the notice of the
lien is recorded and indexed in the office of the county clerk in
the county in which the property is located. The notice must
contain the name and address of the owner if that information can
be determined with a reasonable effort, a legal description of
the real property on which the building was located, the amount
of expenses incurred by the municipality, and the balance due.
(o) If the notice is given and the opportunity to relocate the
tenants of the building or to repair, remove, or demolish the
building is afforded to each mortgagee and lienholder as
authorized by Subsection (d), (e), or (g), the lien is a
privileged lien subordinate only to tax liens.
(p) A hearing under this section may be held by a civil
municipal court.
(q) A municipality satisfies the requirements of this section to
make a diligent effort, to use its best efforts, or to make a
reasonable effort to determine the identity and address of an
owner, a lienholder, or a mortgagee if the municipality searches
the following records:
(1) county real property records of the county in which the
building is located;
(2) appraisal district records of the appraisal district in
which the building is located;
(3) records of the secretary of state;
(4) assumed name records of the county in which the building is
located;
(5) tax records of the municipality; and
(6) utility records of the municipality.
(r) When a municipality mails a notice in accordance with this
section to a property owner, lienholder, mortgagee, or registered
agent and the United States Postal Service returns the notice as
"refused" or "unclaimed," the validity of the notice is not
affected, and the notice is considered delivered.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1989, 71st Leg., ch. 1, Sec. 87(j), eff. Aug. 28,
1989; Acts 1989, 71st Leg., ch. 743, Sec. 1, eff. Aug. 28, 1989;
Acts 1993, 73rd Leg., ch. 836, Sec. 10, eff. Sept. 1, 1993; Acts
1995, 74th Leg., ch. 359, Sec. 1, eff. Aug. 28, 1995; Acts 1997,
75th Leg., ch. 362, Sec. 1, eff. Sept. 1, 1997; Acts 1999, 76th
Leg., ch. 357, Sec. 1, eff. Sept. 1, 1999; Acts 2001, 77th Leg.,
ch. 413, Sec. 10, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch.
701, Sec. 2, eff. Sept. 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
370, Sec. 3, eff. June 15, 2007.
Acts 2009, 81st Leg., R.S., Ch.
1323, Sec. 5, eff. September 1, 2009.
Sec. 214.0011. ADDITIONAL AUTHORITY TO SECURE SUBSTANDARD
BUILDING. (a) A municipality by ordinance may establish minimum
standards for the use and occupancy of buildings in the
municipality regardless of the date of their construction and may
adopt other ordinances as necessary to carry out this section.
(b) The municipality may secure a building the municipality
determines:
(1) violates the minimum standards; and
(2) is unoccupied or is occupied only by persons who do not have
a right of possession to the building.
(c) Before the 11th day after the date the building is secured,
the municipality shall give notice to the owner by:
(1) personally serving the owner with written notice;
(2) depositing the notice in the United States mail addressed to
the owner at the owner's post office address;
(3) publishing the notice at least twice within a 10-day period
in a newspaper of general circulation in the county in which the
building is located if personal service cannot be obtained and
the owner's post office address is unknown; or
(4) posting the notice on or near the front door of the building
if personal service cannot be obtained and the owner's post
office address is unknown.
(d) The notice must contain:
(1) an identification, which is not required to be a legal
description, of the building and the property on which it is
located;
(2) a description of the violation of the municipal standards
that is present at the building;
(3) a statement that the municipality will secure or has
secured, as the case may be, the building; and
(4) an explanation of the owner's entitlement to request a
hearing about any matter relating to the municipality's securing
of the building.
(e) The municipality shall conduct a hearing at which the owner
may testify or present witnesses or written information about any
matter relating to the municipality's securing of the building
if, within 30 days after the date the municipality secures the
building, the owner files with the municipality a written request
for the hearing. The municipality shall conduct the hearing
within 20 days after the date the request is filed.
(f) A municipality has the same authority to assess expenses
under this section as it has to assess expenses under Section
214.001(n). A lien is created under this section in the same
manner that a lien is created under Section 214.001(n) and is
subject to the same conditions as a lien created under that
section.
(g) The authority granted by this section is in addition to that
granted by Section 214.001.
Added by Acts 1991, 72nd Leg., ch. 13, Sec. 1, eff. April 2,
1991. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 12.104,
eff. Sept. 1, 2001.
Sec. 214.00111. ADDITIONAL AUTHORITY TO PRESERVE SUBSTANDARD
BUILDING AS HISTORIC PROPERTY. (a) This section applies only to
a municipality that is designated as a certified local government
by the state historic preservation officer as provided by 16
U.S.C.A. Section 470 et seq.
(b) This section does not apply to an owner-occupied,
single-family dwelling.
(c) Before a notice is sent or a hearing is conducted under
Section 214.001, the historic preservation board of a
municipality may review a building described by Section
214.001(a) to determine whether the building can be rehabilitated
and designated:
(1) on the National Register of Historic Places;
(2) as a Recorded Texas Historic Landmark; or
(3) as historic property through a municipal historic
designation.
(d) If a municipal historic preservation board reviews a
building, the board shall submit a written report to the
municipality indicating the results of the review conducted under
this section before a public hearing is conducted under Section
214.001.
(e) If the municipal historic preservation board report
determines that the building may not be rehabilitated and
designated as historic property, the municipality may proceed as
provided by Section 214.001.
(f) If the municipal historic preservation board report
determines that the building may be rehabilitated and designated
as historic property, the municipality may not permit the
building to be demolished for at least 90 days after the date the
report is submitted. During this 90-day period, the municipality
shall notify the owner and attempt to identify a feasible
alternative use for the building or locate an alternative
purchaser to rehabilitate and maintain the building. If the
municipality is not able to locate the owner or if the owner does
not respond within the 90-day period, the municipality may
appoint a receiver as provided by Section 214.003.
(g) The municipality may require the building to be demolished
as provided by Section 214.001 after the expiration of the 90-day
period if the municipality is not able to:
(1) identify a feasible alternative use for the building;
(2) locate an alternative purchaser to rehabilitate and maintain
the building; or
(3) appoint a receiver for the building as provided by Section
214.003.
(h) An owner of a building described by Section 214.001(a) is
not liable for penalties related to the building that accrue
during the 90-day period provided for disposition of historic
property under this section.
Added by Acts 1995, 74th Leg., ch. 158, Sec. 1, eff. Aug. 28,
1995.
Sec. 214.0012. JUDICIAL REVIEW. (a) Any owner, lienholder, or
mortgagee of record of property jointly or severally aggrieved by
an order of a municipality issued under Section 214.001 may file
in district court a verified petition setting forth that the
decision is illegal, in whole or in part, and specifying the
grounds of the illegality. The petition must be filed by an
owner, lienholder, or mortgagee within 30 calendar days after the
respective dates a copy of the final decision of the municipality
is personally delivered to them, mailed to them by first class
mail with certified return receipt requested, or delivered to
them by the United States Postal Service using signature
confirmation service, or such decision shall become final as to
each of them upon the expiration of each such 30 calendar day
period.
(b) On the filing of the petition, the court may issue a writ of
certiorari directed to the municipality to review the order of
the municipality and shall prescribe in the writ the time within
which a return on the writ must be made, which must be longer
than 10 days, and served on the relator or the relator's
attorney.
(c) The municipality may not be required to return the original
papers acted on by it, but it is sufficient for the municipality
to return certified or sworn copies of the papers or of parts of
the papers as may be called for by the writ.
(d) The return must concisely set forth other facts as may be
pertinent and material to show the grounds of the decision
appealed from and shall be verified.
(e) The issuance of the writ does not stay proceedings on the
decision appealed from.
(f) Appeal in the district court shall be limited to a hearing
under the substantial evidence rule. The court may reverse or
affirm, in whole or in part, or may modify the decision brought
up for review.
(g) Costs may not be allowed against the municipality.
(h) If the decision of the municipality is affirmed or not
substantially reversed but only modified, the district court
shall allow to the municipality all attorney's fees and other
costs and expenses incurred by it and shall enter a judgment for
those items, which may be entered against the property owners,
lienholders, or mortgagees as well as all persons subject to the
proceedings before the municipality.
Added by Acts 1993, 73rd Leg., ch. 836, Sec. 11, eff. Sept. 1,
1993. Amended by Acts 2001, 77th Leg., ch. 413, Sec. 12, eff.
Sept. 1, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
370, Sec. 4, eff. June 15, 2007.
Sec. 214.0015. ADDITIONAL AUTHORITY REGARDING SUBSTANDARD
BUILDING. (a) This section applies only to a municipality that
has adopted an ordinance under Section 214.001.
(b) In addition to the authority granted to the municipality by
Section 214.001, after the expiration of the time allotted under
Section 214.001(d) or (e) for the repair, removal, or demolition
of a building, the municipality may:
(1) repair the building at the expense of the municipality and
assess the expenses on the land on which the building stands or
to which it is attached and may provide for that assessment, the
mode and manner of giving notice, and the means of recovering the
repair expenses; or
(2) assess a civil penalty against the property owner for
failure to repair, remove, or demolish the building and provide
for that assessment, the mode and manner of giving notice, and
the means of recovering the assessment.
(c) The municipality may repair a building under Subsection (b)
only to the extent necessary to bring the building into
compliance with the minimum standards and only if the building is
a residential building with 10 or fewer dwelling units. The
repairs may not improve the building to the extent that the
building exceeds minimum housing standards.
(d) The municipality shall impose a lien against the land on
which the building stands or stood, unless it is a homestead as
protected by the Texas Constitution, to secure the payment of the
repair, removal, or demolition expenses or the civil penalty.
Promptly after the imposition of the lien, the municipality must
file for record, in recordable form in the office of the county
clerk of the county in which the land is located, a written
notice of the imposition of the lien. The notice must contain a
legal description of the land.
(e) Except as provided by Section 214.001, the municipality's
lien to secure the payment of a civil penalty or the costs of
repairs, removal, or demolition is inferior to any previously
recorded bona fide mortgage lien attached to the real property to
which the municipality's lien attaches if the mortgage lien was
filed for record in the office of the county clerk of the county
in which the real property is located before the date the civil
penalty is assessed or the repair, removal, or demolition is
begun by the municipality. The municipality's lien is superior to
all other previously recorded judgment liens.
(f) Any civil penalty or other assessment imposed under this
section accrues interest at the rate of 10 percent a year from
the date of the assessment until paid in full.
(g) The municipality's right to the assessment lien may not be
transferred to third parties.
(h) In any judicial proceeding regarding enforcement of
municipal rights under this section, the prevailing party is
entitled to recover reasonable attorney's fees from the
nonprevailing party.
(i) A lien acquired under this section by a municipality for
repair expenses may not be foreclosed if the property on which
the repairs were made is occupied as a residential homestead by a
person 65 years of age or older.
(j) The municipality by order may assess and recover a civil
penalty against a property owner at the time of an administrative
hearing on violations of an ordinance, in an amount not to exceed
$1,000 a day for each violation or, if the owner shows that the
property is the owner's lawful homestead, in an amount not to
exceed $10 a day for each violation, if the municipality proves:
(1) the property owner was notified of the requirements of the
ordinance and the owner's need to comply with the requirements;
and
(2) after notification, the property owner committed an act in
violation of the ordinance or failed to take an action necessary
for compliance with the ordinance.
(k) An assessment of a civil penalty under Subsection (j) is
final and binding and constitutes prima facie evidence of the
penalty in any suit brought by a municipality in a court of
competent jurisdiction for a final judgment in accordance with
the assessed penalty.
(l) To enforce a civil penalty under this subchapter, the clerk
or secretary of the municipality must file with the district
clerk of the county in which the municipality is located a
certified copy of an order issued under Subsection (j) stating
the amount and duration of the penalty. No other proof is
required for a district court to enter a final judgment on the
penalty.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 49(a), eff. Aug. 28,
1989. Amended by Acts 1989, 71st Leg., ch. 743, Sec. 2, 3, eff.
Aug. 28, 1989; Acts 1995, 74th Leg., ch. 359, Sec. 2, eff. Aug.
28, 1995; Acts 2001, 77th Leg., ch. 1420, Sec. 12.105, eff. Sept.
1, 2001.
Sec. 214.002. REQUIRING REPAIR, REMOVAL, OR DEMOLITION OF
BUILDING OR OTHER STRUCTURE. (a) If the governing body of a
municipality finds that a building, bulkhead or other method of
shoreline protection, fence, shed, awning, or other structure, or
part of a structure, is likely to endanger persons or property,
the governing body may:
(1) order the owner of the structure, the owner's agent, or the
owner or occupant of the property on which the structure is
located to repair, remove, or demolish the structure, or the part
of the structure, within a specified time; or
(2) repair, remove, or demolish the structure, or the part of
the structure, at the expense of the municipality, on behalf of
the owner of the structure or the owner of the property on which
the structure is located, and assess the repair, removal, or
demolition expenses on the property on which the structure was
located.
(b) The governing body shall provide by ordinance for:
(1) the assessment of repair, removal, or demolition expenses
incurred under Subsection (a)(2);
(2) a method of giving notice of the assessment; and
(3) a method of recovering the expenses.
(c) The governing body may punish by a fine, confinement in
jail, or both a person who does not comply with an order issued
under Subsection (a)(1).
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1989, 71st Leg., ch. 743, Sec. 4, eff. Aug. 28,
1989; Acts 1993, 73rd Leg., ch. 219, Sec. 1, eff. Aug. 30, 1993.
Sec. 214.003. RECEIVER. (a) A home-rule municipality may bring
an action in district court against an owner of property that is
not in substantial compliance with the municipal ordinances
regarding:
(1) fire protection;
(2) structural integrity;
(3) zoning; or
(4) disposal of refuse.
(b) Except as provided by Subsection (c), the court may appoint
as a receiver for the property a nonprofit organization with a
demonstrated record of rehabilitating properties if the court
finds that:
(1) the structures on the property are in violation of the
standards set forth in Section 214.001(b) and an ordinance
described by Subsection (a);
(2) notice of violation was given to the record owner of the
property; and
(3) a public hearing as required by Section 214.001(d) has been
conducted.
(c) The court may appoint as a receiver for historic property
subject to Section 214.00111 a nonprofit organization or an
individual with a demonstrated record of rehabilitating
historical buildings if the court finds that:
(1) the structures on the property are in violation of the
standards established under Section 214.001(b) and an ordinance
described by Subsection (a);
(2) the structure has been reviewed by the municipal historic
preservation board and the structure meets the criteria set forth
in Section 214.00111;
(3) notice of the violation was given to the record owner of the
property; and
(4) a public hearing as required by Section 214.001 has been
conducted.
(d) For the purposes of this section, if the record owner does
not appear at the hearing required by Section 214.001(d), the
hearing shall be conducted as if the owner had personally
appeared.
(e) In the action, the record owners and any lienholders of
record of the property shall be served with personal notice of
the proceedings or, if not available after due diligence, may be
served by publication. Actual service or service by publication
on the record owners or lienholders constitutes notice to all
unrecorded owners or lienholders.
(f) The court may issue, on a showing of imminent risk of injury
to any person occupying the property or a person in the
community, any mandatory or prohibitory temporary restraining
orders and temporary injunctions necessary to protect the public
health and safety.
(g) A receiver appointed by the court may:
(1) take control of the property;
(2) collect rents due on the property;
(3) make or have made any repairs necessary to bring the
property into compliance with:
(A) minimum standards in local ordinances; or
(B) guidelines for rehabilitating historic properties
established by the secretary of the interior under 16 U.S.C.A.
Section 470 et seq. or the municipal historic preservation board,
if the property is considered historic property under Section
214.00111;
(4) make payments necessary for the maintenance or restoration
of utilities to the properties;
(5) purchase materials necessary to accomplish repairs;
(6) renew existing rental contracts and leases;
(7) enter into new rental contracts and leases;
(8) affirm, renew, or enter into a new contract providing for
insurance coverage on the property; and
(9) exercise all other authority that an owner of the property
would have except for the authority to sell the property.
(h) On the completion of the restoration of the property to the
minimum code standards of the municipality or guidelines for
rehabilitating historic property, or before petitioning a court
for termination of the receivership under Subsection (l):
(1) the receiver shall file with the court a full accounting of
all costs and expenses incurred in the repairs, including
reasonable costs for labor and supervision, all income received
from the property, and, at the receiver's discretion, a
receivership fee of 10 percent of those costs and expenses;
(2) if the income exceeds the total of the cost and expense of
rehabilitation and any receivership fee, the rehabilitated
property shall be restored to the owners and any net income shall
be returned to the owners; and
(3) if the total of the costs and expenses and any receivership
fee exceeds the income received during the receivership, the
receiver may maintain control of the property until the time all
rehabilitation and maintenance costs and any receivership fee are
recovered, or until the receivership is terminated.
(h-1) A receiver shall have a lien on the property under
receivership for all of the receiver's unreimbursed costs and
expenses and any receivership fee.
(i) Any record lienholder may, after initiation of an action by
a municipality:
(1) intervene in the action; and
(2) request appointment as a receiver:
(A) under the same conditions as the nonprofit organization; and
(B) on a demonstration to the court of an ability and
willingness to rehabilitate the property.
(j) For the purposes of this section, the interests and rights
of an unrecorded lienholder or unrecorded property owner are, in
all respects, inferior to the rights of a duly appointed
receiver.
(k) The court may not appoint a receiver for any property that
is an owner-occupied, single-family residence.
(l) A receiver appointed by a district court under this section,
or the home-rule municipality that filed the action under which
the receiver was appointed, may petition the court to terminate
the receivership and order the sale of the property after the
receiver has been in control of the property for more than one
year, if an owner has been served with notice but has failed to
assume control or repay all rehabilitation and maintenance costs
and any receivership fee of the receiver.
(m) In the action, the record owners and any lienholders of
record of the property shall be served with personal notice of
the proceedings or, if not found after due diligence, may be
served by publication. Actual service or service by publication
on all record owners and lienholders of record constitutes notice
to all unrecorded owners and lienholders.
(n) The court may order the sale of the property if the court
finds that:
(1) notice was given to each record owner of the property and
each lienholder of record;
(2) the receiver has been in control of the property for more
than one year and an owner has failed to repay all rehabilitation
and maintenance costs and any receivership fee of the receiver;
and
(3) no lienholder of record has intervened in the action and
offered to repay the costs and any receivership fee of the
receiver and assume control of the property.
(o) The court shall order the sale to be conducted by the
petitioner in the same manner that a sale is conducted under
Chapter 51, Property Code. If the record owners and lienholders
are identified, notice of the date and time of the sale must be
sent in the same manner as provided by Chapter 51, Property Code.
If the owner cannot be located after due diligence, the owner
may be served notice by publication. The receiver may bid on the
property at the sale and may use a lien granted under Subsection
(h-1) as credit toward the purchase. The petitioner shall make a
report of the sale to the court.
(p) The court shall confirm the sale and order a distribution of
the proceeds of the sale in the following order:
(1) court costs;
(2) costs and expenses of the receiver, and any lien held by the
receiver; and
(3) other valid liens.
(q) Any remaining sums must be paid to the owner. If the owner
is not identified or cannot be located, the court shall order the
remaining sums to be deposited in an interest-bearing account
with the district clerk's office in the district in which the
action is pending, and the clerk shall hold the funds as provided
by other law.
(r) After the proceeds are distributed, the court shall award
fee title to the purchaser subject to any recorded bona fide
liens that were not paid by the proceeds of the sale.
Added by Acts 1989, 71st Leg., ch. 389, Sec. 1, eff. Sept. 1,
1989. Amended by Acts 1991, 72nd Leg., ch. 49, Sec. 1, eff. April
29, 1991; Acts 1995, 74th Leg., ch. 158, Sec. 2, eff. Aug. 28,
1995; Acts 2001, 77th Leg., ch. 1420, Sec. 12.106, eff. Sept. 1,
2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
1341, Sec. 29, eff. September 1, 2007.
Sec. 214.0031. ADDITIONAL AUTHORITY TO APPOINT RECEIVER FOR
HAZARDOUS PROPERTIES. (a) In this section:
(1) "Eligible nonprofit housing organization" means a nonprofit
housing organization that is certified by a home-rule
municipality to bring an action under this section.
(2) "Multifamily residential property" means any residential
dwelling complex consisting of four or more units.
(b) A home-rule municipality may annually certify one or more
nonprofit housing organizations to bring an action under this
section after making the following findings:
(1) the nonprofit housing organization has a record of community
involvement; and
(2) the certification will further the home-rule municipality's
goal to rehabilitate hazardous properties.
(c) A home-rule municipality or an eligible nonprofit housing
organization may bring an action under this section in district
court against an owner of property that is not in substantial
compliance with one or more municipal ordinances regarding:
(1) the prevention of substantial risk of injury to any person;
or
(2) the prevention of an adverse health impact to any person.
(d) A municipality that grants authority to an eligible
nonprofit housing organization to initiate an action under this
section has standing to intervene in the proceedings at any time
as a matter of right.
(e) The court may appoint a receiver if the court finds that:
(1) the property is in violation of one or more ordinances of
the municipality described by Subsection (c);
(2) the condition of the property constitutes a serious and
imminent public health or safety hazard; and
(3) the property is not an owner-occupied, single-family
residence.
(f) The following are eligible to serve as court-appointed
receivers:
(1) an entity with, as determined by the court, sufficient
capacity and experience rehabilitating properties; and
(2) an individual with, as determined by the court, sufficient
resources and experience rehabilitating properties.
(g) Notwithstanding Subsection (f), an entity is ineligible to
serve as a receiver for a multifamily residential property if the
nonprofit housing organization that brought the action under this
section has an ownership interest or a right to income in the
entity.
(h) The home-rule municipality or eligible nonprofit housing
organization must send by certified mail notice of any ordinance
violation alleged to exist on the property on or before the 30th
day before the date an action is filed under this section to:
(1) the physical address of the property; and
(2) the address as indicated on the most recently approved
municipal tax roll for the property owner or the property owner's
agent.
(i) In an action under this section, each record owner and each
lienholder of record of the property shall be served with notice
of the proceedings or, if not available after due diligence, may
be served by alternative means, including publication, as
prescribed by the Texas Rules of Civil Procedure. Actual service
or service by publication on a record owner or lienholder
constitutes notice to each unrecorded owner or lienholder.
(j) On a showing of imminent risk of injury to a person
occupying the property or present in the community, the court may
issue a mandatory or prohibitory temporary restraining order or
temporary injunction as necessary to protect the public health or
safety.
(k) Unless inconsistent with this section or other law, the
rules of equity govern all matters relating to a court action
under this section.
(l) Subject to control of the court, a court-appointed receiver
has all powers necessary and customary to the powers of a
receiver under the laws of equity and may:
(1) take possession and control of the property;
(2) operate and manage the property;
(3) establish and collect rents and income on the property;
(4) lease the property;
(5) make any repairs and improvements necessary to bring the
property into compliance with local codes and ordinances and
state laws, including:
(A) performing and entering into contracts for the performance
of work and the furnishing of materials for repairs and
improvements; and
(B) entering into loan and grant agreements for repairs and
improvements to the property;
(6) pay expenses, including paying for utilities and paying
taxes and assessments, insurance premiums, and reasonable
compensation to a property management agent;
(7) enter into contracts for operating and maintaining the
property;
(8) exercise all other authority of an owner of the property
other than the authority to sell the property unless authorized
by the court under Subsection (n); and
(9) perform other acts regarding the property as authorized by
the court.
(m) A court-appointed receiver may demolish a single-family
structure on the property under this section on authorization by
the court and only if the court finds:
(1) it is not economically feasible to bring the structure into
compliance with local codes and ordinances and state laws; and
(2) the structure is:
(A) unfit for human habitation or is a hazard to the public
health or safety;
(B) regardless of its structural condition:
(i) unoccupied by its owners or lessees or other invitees; and
(ii) unsecured from unauthorized entry to the extent that it
could be entered or used by vagrants or other uninvited persons
as a place of harborage or could be entered or used by children;
or
(C) boarded, fenced, or otherwise secured, but:
(i) the structure constitutes a danger to the public even though
secured from entry; or
(ii) the means used to secure the structure are inadequate to
prevent unauthorized entry or use of the structure in the manner
described by Paragraph (B)(ii).
(n) On demolition of the structure, the court may authorize the
receiver to sell the property to an individual or organization
that will bring the property into productive use.
(o) On completing the repairs or demolishing the structure or
before petitioning a court for termination of the receivership,
the receiver shall file with the court a full accounting of all
costs and expenses incurred in the repairs or demolition,
including reasonable costs for labor and supervision, all income
received from the property, and, at the receiver's discretion, a
receivership fee of 10 percent of those costs and expenses. If
the property was sold under Subsection (n) and the revenue
exceeds the total of the costs and expenses incurred by the
receiver plus any receivership fee, any net income shall be
returned to the owner. If the property is not sold and the
income produced exceeds the total of the costs and expenses
incurred by the receiver plus any receivership fee, the
rehabilitated property shall be restored to the owner and any net
income shall be returned to the owner. If the total of the costs
and expenses incurred by the receiver plus any receivership fee
exceeds the income produced during the receivership, the receiver
may maintain control of the property until all rehabilitation and
maintenance costs plus any receivership fee are recovered or
until the receivership is terminated.
(p) A receiver shall have a lien on the property for all of the
receiver's unreimbursed costs and expenses, plus any receivership
fee.
(q) Any lienholder of record may, after initiation of an action
under this section:
(1) intervene in the action; and
(2) request appointment as a receiver under this section if the
lienholder demonstrates to the court an ability and willingness
to rehabilitate the property.
(r) A receiver appointed under this section or the home-rule
municipality or eligible nonprofit housing organization that
filed the action under which the receiver was appointed may
petition the court to terminate the receivership and order the
sale of the property if an owner has been served with notice but
has failed to repay all of the receiver's outstanding costs and
expenses plus any receivership fee on or before the 180th day
after the date the notice was served.
(s) The court may order the sale of the property if the court
finds that:
(1) notice was given to each record owner of the property and
each lienholder of record;
(2) the receiver has been in control of the property and the
owner has failed to repay all the receiver's outstanding costs
and expenses of rehabilitation plus any receivership fee within
the period prescribed by Subsection (r); and
(3) no lienholder of record has intervened in the action and
tendered the receiver's costs and expenses, plus any receivership
fee, and assumed control of the property.
(t) The court may order the property sold:
(1) to a land bank or other party as the court may direct,
excluding, for multifamily residential properties, an eligible
nonprofit housing organization that initiated the action under
this section; or
(2) at public auction.
(u) The receiver, if an entity not excluded under Subsection
(t), may bid on the property at the sale described by Subsection
(t)(2) and may use a lien granted under Subsection (p) as credit
toward the purchase.
(v) The court shall confirm a sale under this section and order
a distribution of the proceeds of the sale in the following
order:
(1) court costs;
(2) costs and expenses, plus a receivership fee, and any lien
held by the receiver; and
(3) other valid liens.
(w) Any remaining amount shall be paid to the owner. If the
owner cannot be identified or located, the court shall order the
remaining amount to be deposited in an interest-bearing account
with the district clerk's office in the district court in which
the action is pending. The district clerk shall hold the funds
as provided by other law.
(x) After the proceeds are distributed, the court shall award
fee title to the purchaser. If the proceeds of the sale are
insufficient to pay all liens, claims, and encumbrances on the
property, the court shall extinguish all unpaid liens, claims,
and encumbrances on the property and award title to the purchaser
free and clear.
(y) This section does not foreclose any right or remedy that may
be available under Section 214.003, other state law, or the laws
of equity.
Added by Acts 2009, 81st Leg., R.S., Ch.
1414, Sec. 1, eff. September 1, 2009.
Sec. 214.004. SEIZURE AND SALE OF PROPERTY TO RECOVER EXPENSES.
A Type A general-law municipality or home-rule municipality may
foreclose a lien on property under this subchapter:
(1) in a proceeding relating to the property brought under
Subchapter E, Chapter 33, Tax Code; or
(2) in a judicial proceeding, if:
(A) a building or other structure on the property has been
demolished;
(B) a lien for the cost of the demolition of the building or
other structure on the property has been created and that cost
has not been paid more than 180 days after the date the lien was
filed; and
(C) ad valorem taxes are delinquent on all or part of the
property.
Added by Acts 1995, 74th Leg., ch. 1017, Sec. 5, eff. Aug. 28,
1995. Amended by Acts 1997, 75th Leg., ch. 470, Sec. 1, eff. May
30, 1997.
Sec. 214.005. PROPERTY BID OFF TO MUNICIPALITY. A municipality
may adopt an ordinance under Section 214.001(a) that applies to
property that has been bid off to the municipality under Section
34.01(j), Tax Code.
Added by Acts 2001, 77th Leg., ch. 413, Sec. 11, eff. Sept. 1,
2001.
SUBCHAPTER B. PLUMBING AND SEWERS
Sec. 214.011. PLUMBING INSPECTOR. (a) If a municipality does
not have a special charter that provides for an inspector of
plumbing, the governing body of the municipality may appoint an
inspector of plumbing for a term fixed by the governing body.
(b) The same individual may serve as plumbing inspector and
municipal engineer.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1989, 71st Leg., ch. 1, Sec. 87(k), eff. Aug. 28,
1989.
Sec. 214.012. SEWERS AND PLUMBING. A municipality that has
underground sewers or cesspools shall regulate by ordinance:
(1) the tapping of the sewers and cesspools; and
(2) house draining and plumbing.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 214.013. SEWER CONNECTIONS. (a) A municipality may:
(1) provide for a sanitary sewer system; and
(2) require property owners to connect to the sewer system.
(b) If an owner does not connect to the sewer system, the
municipality may:
(1) fix a lien against the owner's property;
(2) charge the cost of the connection to the owner as a personal
liability; and
(3) impose a penalty on the owner.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1993, 73rd Leg., ch. 51, Sec. 1, eff. Aug. 30,
1993.
Sec. 214.014. DRAINS, SINKS, AND PRIVIES. (a) The governing
body of a Type A general-law municipality may, by resolution or
ordinance, order the owner of a private drain, sink, or privy to
fill up, clean, drain, alter, relay, repair, or improve the
drain, sink, or privy.
(b) If the order cannot be served on a person in the
municipality, the municipality may have the work done on behalf
of the owner. The municipality may fix a lien on the owner's
property for expenses incurred in having the work done. The lien
is created when the mayor of the municipality files and records a
memorandum, under the seal of the municipality, with the clerk of
the district court.
(c) The municipality may enforce the lien and may obtain in any
court having jurisdiction a judgment against the owner for the
amount of the expenses.
(d) The governing body may punish by a fine a person who does
not comply with an order adopted under this section.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 214.015. SEIZURE AND SALE OF PROPERTY TO RECOVER EXPENSES.
A home-rule municipality or Type A general-law municipality may
foreclose a lien on property under this subchapter in a
proceeding relating to the property brought under Subchapter E,
Chapter 33, Tax Code.
Added by Acts 1995, 74th Leg., ch. 1017, Sec. 6, eff. Aug. 28,
1995.
SUBCHAPTER C. SWIMMING POOL ENCLOSURES
Sec. 214.101. AUTHORITY REGARDING SWIMMING POOL ENCLOSURES. (a)
A municipality may by ordinance establish minimum standards for
swimming pool fences and enclosures and may adopt other
ordinances as necessary to carry out this subchapter. A municipal
ordinance containing standards for a pool yard enclosure as
defined by Chapter 757, Health and Safety Code, as added by
Section 2, Chapter 517, Acts of the 73rd Legislature, 1993, must
contain the same standards for that enclosure as are required or
permitted by that chapter of the Health and Safety Code.
(b) A municipality that adopts an ordinance under this
subchapter may repair, replace, secure, or otherwise remedy an
enclosure or fence that is damaged, deteriorated, substandard,
dilapidated, or otherwise in a state that poses a hazard to the
public health, safety, and welfare.
(c) A municipality may require the owner of the property on
which the swimming pool or enclosure or fence is situated, after
notice and hearing as provided in Sections 214.001(d) and (e), to
repair, replace, secure, or otherwise remedy an enclosure or
fence of a swimming pool that the municipality or an appropriate
municipal official, agent, or employee determines violates the
minimum standards adopted under this subchapter.
(d) If the enclosure or fence is on unoccupied property or is on
property occupied only by persons who do not have a right of
possession to the property, the municipality shall give notice to
the owner, in accordance with the procedures set out in Sections
214.0011(c) and (d), of the municipality's action to repair,
replace, secure, or otherwise remedy an enclosure or fence of a
swimming pool.
(e) If a municipality incurs expenses under this subchapter, the
municipality may assess the expenses on, and the municipality has
a lien against, unless it is a homestead as protected by the
Texas Constitution, the property on which the swimming pool or
the enclosure or fence is situated. The lien is extinguished if
the property owner or another person having an interest in the
legal title to the property reimburses the municipality for the
expenses. The lien arises and attaches to the property at the
time the notice of the lien is recorded in the office of the
county clerk in the county in which the property is situated. The
notice must contain the name and address of the owner if that
information can be determined with a reasonable effort, a legal
description of the real property on which the swimming pool or
the enclosure or fence is situated, the amount of expenses
incurred by the municipality, and the balance due. The lien is a
privileged lien subordinate only to tax liens and all previously
recorded bona fide mortgage liens attached to the real property
to which the municipality's lien attaches.
(f) An ordinance adopted under this subchapter may provide for a
penalty, not to exceed $1,000, for a violation of the ordinance.
The ordinance may provide that each day a violation occurs
constitutes a separate offense.
(g) A municipal official, agent, or employee, acting under the
authority granted by this subchapter or any ordinance adopted
under this subchapter, may enter any unoccupied premises at a
reasonable time to inspect, investigate, or enforce the powers
granted under this subchapter or any ordinance adopted pursuant
to this subchapter. After providing a minimum of 24 hours notice
to the occupant, a municipal official, agent, or employee, acting
under the authority granted by this subchapter or any ordinance
adopted under this subchapter, may enter any occupied premises to
inspect, investigate, or enforce the powers granted under this
subchapter or any ordinance adopted pursuant to this subchapter.
A municipality and its officials, agents, or employees shall be
immune from liability for any acts or omissions not knowingly
done that are associated with actions taken in an effort to
eliminate the dangerous conditions posed by an enclosure or fence
that is damaged, deteriorated, substandard, dilapidated, or
otherwise in a state that poses a hazard to the public health,
safety, and welfare and for any previous or subsequent conditions
on the property.
(h) The authority granted by this subchapter is in addition to
that granted by any other law.
Added by Acts 1993, 73rd Leg., ch. 517, Sec. 1, eff. Sept. 1,
1993. Amended by Acts 1995, 74th Leg., ch. 577, Sec. 1, eff.
Sept. 1, 1995; Acts 2001, 77th Leg., ch. 1420, Sec. 12.107, eff.
Sept. 1, 2001.
Sec. 214.102. SEIZURE AND SALE OF PROPERTY TO RECOVER EXPENSES.
A municipality may foreclose a lien on property under this
subchapter in a proceeding relating to the property brought under
Subchapter E, Chapter 33, Tax Code.
Added by Acts 1995, 74th Leg., ch. 1017, Sec. 7, eff. Aug. 28,
1995.
SUBCHAPTER D. BUILDING LINES
Sec. 214.131. DEFINITIONS. In this subchapter:
(1) "Street" means a public highway, boulevard, parkway, square,
or street, or a part or side of any of these.
(2) "Structure" means a building or other structure, or a part
of a building or other structure.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Renumbered from Sec. 213.001 and amended by Acts 2001, 77th Leg.,
ch. 1420, Sec. 12.002(4), eff. Sept. 1, 2001.
Sec. 214.132. BUILDING LINES AUTHORIZED. The governing body of
a municipality may, by resolution or ordinance, establish a
building line on a street in the municipality.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Renumbered from Sec. 213.002 by Acts 2001, 77th Leg., ch. 1420,
Sec. 12.002(4), eff. Sept. 1, 2001.
Sec. 214.133. ACTIVITY PROHIBITED WITHIN BUILDING LINE. In the
area between a street and a building line established under this
subchapter for the street, the erection, re-erection,
reconstruction, or substantial repair of a structure is
prohibited.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Renumbered from Sec. 213.003 and amended by Acts 2001, 77th Leg.,
ch. 1420, Sec. 12.002(4), eff. Sept. 1, 2001.
Sec. 214.134. RESOLUTION OR ORDINANCE. (a) In adopting a
resolution or ordinance that establishes a building line, a
municipality must follow the same procedure that it is authorized
by law to use to acquire land for the opening of streets.
(b) The resolution or ordinance must:
(1) describe the street affected and the location of the
building line; and
(2) provide a period, not to exceed 25 years after the date on
which the line is established, during which structures extending
into the area between the street and the building line must be
brought into conformance with the line.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Renumbered from Sec. 213.004 by Acts 2001, 77th Leg., ch. 1420,
Sec. 12.002(4), eff. Sept. 1, 2001.
Sec. 214.135. CONDEMNATION OF EASEMENTS AND INTERESTS;
ASSESSMENTS. (a) A municipality must follow the same procedure
that it is authorized by law to use to open streets when the
municipality:
(1) institutes and conducts a condemnation proceeding to condemn
an easement or interest necessary to establish a building line;
or
(2) imposes and collects an assessment based on the benefits
arising out of the establishment of a building line against the
property owner and property abutting or in the vicinity of the
building line.
(b) If, in the condemnation of a tract, the ownership of the
tract or the interests in the tract are in controversy or
unknown, an award for the tract may be made in bulk and paid into
court for the use of the parties owning or interested in the
tract as their ownership or interest appears.
(c) When the award and findings of the special commissioners,
who are appointed under Chapter 21, Property Code, are filed with
the court having jurisdiction over the condemnation proceedings,
the award and findings are final and shall be made the judgment
of the court. Compensation is due and payable on rendition of the
judgment by the court adopting the award.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Renumbered from Sec. 213.005 by Acts 2001, 77th Leg., ch. 1420,
Sec. 12.002(4), eff. Sept. 1, 2001.
Sec. 214.136. CONDEMNATION OF PROPERTY. (a) Before or after
expiration of the period for conformance set under Section
213.134(b)(2), a municipality, following the same procedure that
it is authorized by law to use to institute condemnation
proceedings, may:
(1) remove a structure and condemn property in the area between
a street and a building line; and
(2) impose an assessment against property owners and property
that is benefitted by the establishment of the building line to
the extent of the benefit.
(b) The municipality must provide notice and a hearing to the
owner of affected property for the determination of:
(1) additional damages sustained by the removal of a structure
or the taking of land in the area between a street and a building
line; or
(2) the assessment to be imposed against a property owner and
the property.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Renumbered from Sec. 213.006 and amended by Acts 2001, 77th Leg.,
ch. 1420, Sec. 12.002(4), eff. Sept. 1, 2001.
SUBCHAPTER E. COMMERCIAL BUILDING PERMITS IN MUNICIPALITIES WITH
POPULATION OF MORE THAN 900,000
Sec. 214.161. MUNICIPALITY COVERED BY SUBCHAPTER. This
subchapter applies only to a municipality with a population of
more than 1.18 million.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1991, 72nd Leg., ch. 597, Sec. 94, eff. Sept. 1,
1991; Acts 2001, 77th Leg., ch. 669, Sec. 74, eff. Sept. 1, 2001;
Acts 2001, 77th Leg., ch. 1420, Sec. 12.002(5), eff. Sept. 1,
2001.
Sec. 214.162. DEFINITIONS. In this subchapter:
(1) "Commercial building" means a building that is not a single
family residence.
(2) "Permit department" means the municipal agency that is
authorized to issue commercial building permits.
(3) "Subdivider" means a person who divides a tract of real
property under circumstances to which Subchapter A, Chapter 212
applies.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Renumbered from Sec. 230.012 by Acts 2001, 77th Leg., ch. 1420,
Sec. 12.002(5), eff. Sep