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A BILL TO BE ENTITLED
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AN ACT
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relating to state preemption of municipal and county regulation on |
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land use, structures, businesses, and related activities and |
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municipal boundaries and annexation. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The legislature finds that: |
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(1) the state has historically been the exclusive |
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regulator of many aspects of commerce, trade, elections, and |
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criminal justice in this state; |
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(2) in recent years, several local jurisdictions have |
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sought to establish their own regulations of commerce, trade, |
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elections, and criminal justice that are different than the state's |
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regulations; and |
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(3) the local regulations have led to a patchwork of |
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regulations that apply inconsistently across this state. |
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SECTION 2. The purpose of this Act is to provide additional |
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statewide consistency by returning sovereign regulatory authority |
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powers to the state where those powers belong in accordance with the |
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Texas Constitution, including Section 5, Article XI, of that |
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constitution. |
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SECTION 3. This Act: |
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(1) may not be construed to prohibit a municipality or |
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county from building or maintaining a road, imposing a tax, or |
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carrying out any authority expressly authorized by statute; |
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(2) may not be construed to prohibit a home-rule |
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municipality from providing the same services and imposing the same |
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regulations that a general-law municipality is authorized to |
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provide or impose; |
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(3) does not affect the authority of a municipality or |
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county to conduct a public awareness campaign; and |
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(4) does not affect the authority of a municipality or |
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county to repeal or amend an existing ordinance, order, or rule that |
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violates the provisions of this Act for the limited purpose of |
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bringing that ordinance, order, or rule in compliance with this |
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Act. |
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SECTION 4. Chapter 102A, Civil Practice and Remedies Code, |
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is amended by adding Subchapter A and a subchapter heading to read |
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as follows: |
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SUBCHAPTER A. PRIVATE ACTION |
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SECTION 5. Sections 102A.001, 102A.002, 102A.003, |
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102A.004, 102A.005, and 102A.006, Civil Practice and Remedies Code, |
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are transferred to Subchapter A, Chapter 102A, Civil Practice and |
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Remedies Code, as added by this Act, and amended to read as follows: |
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Sec. 102A.001. DEFINITION. In this subchapter [chapter], |
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"person" means an individual, corporation, business trust, estate, |
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trust, partnership, limited liability company, association, joint |
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venture, agency or instrumentality, public corporation, any legal |
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or commercial entity, or protected or registered series of a |
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for-profit entity. |
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Sec. 102A.002. LIABILITY FOR CERTAIN REGULATION. (a) Any |
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person who has sustained an injury in fact, actual or threatened, |
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from a municipal or county ordinance, order, or rule adopted or |
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enforced by a municipality or county in violation of any of the |
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following provisions or a trade association representing the person |
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has standing to bring and may bring an action against the |
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municipality or county: |
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(1) Section 1.004, Agriculture Code; |
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(2) Section 1.109, Business & Commerce Code; |
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(3) Section 1.004, Finance Code; |
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(4) Section 30.005, Insurance Code; |
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(5) Section 1.005, Labor Code; |
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(6) Section 229.901, Local Government Code; |
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(7) Section 1.003, Natural Resources Code; |
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(8) Section 1.004, Occupations Code; or |
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(9) Section 1.004, Property Code. |
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(b) A person who has sustained an actual or threatened |
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injury in fact from a municipal or county ordinance, order, or rule |
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adopted or enforced in violation of Section 40.001 or 250A.001, |
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Local Government Code, or a nonprofit organization or trade |
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association representing the person, has standing to bring an |
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action against the municipality or county. |
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Sec. 102A.003. REMEDIES. (a) A claimant is entitled to |
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recover in an action brought under this subchapter [chapter]: |
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(1) declaratory and injunctive relief; and |
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(2) costs and reasonable attorney's fees. |
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(b) A municipality or county is entitled to recover in an |
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action brought under this subchapter [chapter] costs and reasonable |
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attorney's fees if the court finds the action to be frivolous. |
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Sec. 102A.004. IMMUNITY WAIVER. Governmental immunity of a |
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municipality or county to suit and from liability is waived to the |
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extent of liability created by this subchapter [chapter]. |
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Sec. 102A.005. NOTICE. A municipality or county is |
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entitled to receive notice of a claim against it under this |
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subchapter [chapter] not later than three months before the date a |
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claimant files an action under this subchapter [chapter]. The |
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notice must reasonably describe: |
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(1) the injury claimed; and |
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(2) the ordinance, order, or rule that is the cause of |
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the injury. |
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Sec. 102A.006. VENUE. (a) Notwithstanding any other law, |
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including Chapter 15, a claimant may bring an action under this |
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subchapter [chapter] in: |
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(1) the county in which all or a substantial part of |
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the events giving rise to the cause of action occurred; or |
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(2) if the defendant is a municipality, a county in |
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which the municipality is located. |
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(b) If the action is brought in a venue authorized by this |
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section, the action may not be transferred to a different venue |
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without the written consent of all parties. |
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SECTION 6. Chapter 102A, Civil Practice and Remedies Code, |
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is amended by adding Subchapter B to read as follows: |
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SUBCHAPTER B. ATTORNEY GENERAL ENFORCEMENT |
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Sec. 102A.051. DEFINITION. In this subchapter, |
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"no-new-revenue tax rate" means the no-new-revenue tax rate |
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calculated under Chapter 26, Tax Code. |
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Sec. 102A.052. ATTORNEY GENERAL INVESTIGATION AND ACTION. |
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(a) The attorney general may investigate an alleged violation of a |
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law described by Section 102A.002 by a municipality or county. |
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(b) The attorney general may bring an action for injunctive, |
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declaratory, or mandamus relief against a municipality or county if |
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the attorney general determines after conducting an investigation |
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under Subsection (a) that the municipality or county violated a law |
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described by Section 102A.002. |
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(c) Notwithstanding any other law, including Chapter 15, |
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the attorney general may bring an action under this section in: |
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(1) the county in which all or a substantial part of |
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the events giving rise to the cause of action occurred; or |
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(2) if the defendant is a municipality, a county in |
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which the municipality is located. |
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Sec. 102A.053. EFFECTS OF PENDENCY OF ACTION. (a) During |
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the pendency of an action brought under Section 102A.052, with |
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respect to a municipality or county defending the action: |
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(1) the comptroller shall withhold payment of any |
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money due to the municipality or county under Section 321.502 or |
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323.502, Tax Code; |
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(2) the municipality or county may not adopt an ad |
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valorem tax rate that exceeds the municipality's or county's |
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no-new-revenue tax rate; |
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(3) the municipality or county may not adopt a budget |
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that exceeds the total expenditures of the budget under which the |
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municipality or county is operating at the time the attorney |
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general brings the action under Section 102A.052; and |
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(4) the municipality or county may not receive state |
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grant funds and any pending application for such funds shall be |
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denied. |
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(b) Section 109.004(a)(1), Local Government Code, does not |
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apply to a municipality if the comptroller is withholding payments |
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from the municipality in accordance with Subsection (a)(1) of this |
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section. |
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(c) Notwithstanding Section 120.002, Local Government Code, |
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a county may not hold an election under that section if the |
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comptroller is withholding payments from the county in accordance |
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with Subsection (a)(1) of this section. |
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Sec. 102A.054. ACTION PROCEDURES. (a) A municipality or |
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county defending an action brought under Section 102A.052 has the |
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burden of proof to establish that the municipality or county |
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complied with the law that is the subject of the action. |
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(b) The trial court shall set an action brought under |
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Section 102A.052: |
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(1) for an initial hearing not later than the 30th day |
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after the date the municipality or county defending the action was |
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served with process for the action; and |
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(2) for a trial on the merits not later than the 90th |
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day after the date the municipality or county defending the action |
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was served with process for the action, unless: |
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(A) the municipality or county and the attorney |
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general agree to a later date; and |
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(B) the court determines that holding trial at a |
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later date is in the interest of justice. |
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Sec. 102A.055. APPELLATE JURISDICTION; EXPEDITED APPEAL. |
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(a) The Fifteenth Court of Appeals has exclusive intermediate |
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appellate jurisdiction of an action brought Section 102A.052. A |
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party must appeal the action not later than the 30th day after the |
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date the judgment is signed. |
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(b) An appellate court shall expedite an appeal of an action |
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brought under Section 102A.052. |
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Sec. 102A.056. RESOLUTION OF ACTION IN FAVOR OF ATTORNEY |
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GENERAL. (a) If the attorney general prevails in an action brought |
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under Section 102A.052: |
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(1) the municipality or county defending the action |
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may not, during the five fiscal years following the year in which |
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the judgment becomes final: |
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(A) adopt an ad valorem tax rate that exceeds the |
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municipality's or county's no-new-revenue tax rate; or |
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(B) receive state grant funds; and |
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(2) the court issuing the final judgment resolving the |
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action shall provide in the judgment that the state is entitled to |
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recover from the municipality or county defending the action a |
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penalty equal to the balance of the suspense account maintained for |
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the municipality or county under Section 321.501 or 323.501, Tax |
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Code, as applicable, that exists on the date the judgment is signed. |
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(b) The comptroller shall, on receipt of a copy of the final |
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judgment in an action brought under Section 102A.052, deposit the |
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balance of the suspense account maintained for the municipality or |
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county defending the action under Section 321.501 or 323.501, Tax |
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Code, as applicable, as of the date the judgment is signed to the |
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credit of the general revenue fund. |
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(c) Section 109.004(a)(1), Local Government Code, does not |
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apply to a municipality subject to a final judgment in an action |
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brought under Section 102A.052 for six state fiscal years following |
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the date the judgment is signed. |
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(d) Notwithstanding Section 120.002, Local Government Code, |
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a county may not hold an election under that section if the county |
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has been the subject of an adverse final judgment in an action |
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brought under Section 102A.052 before the sixth anniversary of the |
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date the judgment is signed. |
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Sec. 102A.057. RESOLUTION OF ACTION IN FAVOR OF |
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MUNICIPALITY OR COUNTY. If a municipality or county prevails in an |
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action brought under Section 102A.052, the comptroller shall |
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immediately send to the municipality or county any balance of the |
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suspense account maintained for the municipality or county under |
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Section 321.501 or 323.501, Tax Code, as applicable, being held |
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under Section 102A.053(a)(1) as of the date the final judgment |
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resolving the action is signed. |
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SECTION 7. Subtitle C, Title 2, Local Government Code, is |
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amended by adding Chapter 40 to read as follows: |
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CHAPTER 40. PREEMPTION |
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Sec. 40.001. PREEMPTION. Unless expressly authorized by |
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another statute, a municipality may not adopt, enforce, or maintain |
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an ordinance or rule regulating conduct in a field of regulation |
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that is occupied by a provision of this subtitle. An ordinance or |
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rule that violates this section is void, unenforceable, and |
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inconsistent with this subtitle. |
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SECTION 8. Subtitle C, Title 7, Local Government Code, is |
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amended by adding Chapter 250A to read as follows: |
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CHAPTER 250A. PREEMPTION |
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Sec. 250A.001. PREEMPTION. Unless expressly authorized by |
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another statute, a municipality or county may not adopt, enforce, |
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or maintain an ordinance, order, or rule regulating conduct in a |
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field of regulation that is occupied by a provision of this title. |
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An ordinance, order, or rule that violates this section is void, |
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unenforceable, and inconsistent with this title. |
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SECTION 9. Subchapter B, Chapter 102A, Civil Practice and |
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Remedies Code, as added by this Act, applies only to a cause of |
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action that accrues on or after the effective date of this Act. |
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SECTION 10. Every provision, section, subsection, |
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sentence, clause, phrase, or word in this Act, and every |
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application of the provisions in this Act to every person, group of |
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persons, or circumstances, is severable from each other. If any |
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application of any provision in this Act to any person, group of |
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persons, or circumstances is found by a court to be invalid, |
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preempted, or unconstitutional for any reason whatsoever, then the |
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remaining applications of the Act to all other persons and |
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circumstances shall be severed and preserved and shall remain in |
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effect. All constitutionally valid applications of the provisions |
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in this Act shall be severed from any applications that a court |
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finds to be invalid, preempted, or unconstitutional, because it is |
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the legislature's intent and priority that every single valid |
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application of every statutory provision be allowed to stand alone. |
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The legislature further declares that it would have enacted this |
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Act, and each provision, section, subsection, sentence, clause, |
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phrase, or word, and all constitutional applications of the |
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provisions of this Act, irrespective of the fact that any |
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provision, section, subsection, sentence, clause, phrase, or word, |
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or applications of this Act, were to be declared invalid, |
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preempted, or unconstitutional. |
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SECTION 11. The Texas Supreme Court has exclusive and |
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original jurisdiction over a challenge to the constitutionality of |
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this Act or any part of this Act and may issue injunctive or |
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declaratory relief in connection with the challenge. |
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SECTION 12. This Act takes effect September 1, 2025. |
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* * * * * |