S.B. No. 88
                                        AN ACT
    1-1  relating to the validation of governmental acts and proceedings by
    1-2  municipalities.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Title 28, Revised Statutes, is amended by adding
    1-5  Article 974d-40 to read as follows:
    1-6        Art. 974d-40
    1-7        Sec. 1.  APPLICATION.  This article applies to any
    1-8  incorporated city, town, or village operating under general law or
    1-9  under a home-rule charter.
   1-10        Sec. 2.  ADOPTION OF HOME-RULE CHARTER.  (a)  All
   1-11  governmental acts and proceedings of a municipality covered by this
   1-12  article regarding the adoption of a home-rule charter are validated
   1-13  as of the dates on which they occurred.
   1-14        (b)  All governmental acts and proceedings of the
   1-15  municipality since adoption or attempted adoption of the charter
   1-16  are validated as of the dates on which they occurred.
   1-17        Sec. 3.  INCORPORATION PROCEEDINGS.  (a)  The incorporation
   1-18  proceedings of all cities and towns in this state that incorporated
   1-19  or attempted to incorporate under the general laws of the State of
   1-20  Texas, whether under the aldermanic or commission form of
   1-21  government, and which have functioned or attempted to function as
   1-22  incorporated cities or towns since the date of such incorporation
   1-23  or attempted incorporation are validated as of the date of such
    2-1  incorporation or attempted incorporation.  The incorporation of
    2-2  such cities and towns shall not be held invalid by reason of the
    2-3  fact that the election proceedings or incorporation proceedings may
    2-4  not have been in accordance with law.
    2-5        (b)  All governmental proceedings performed by the governing
    2-6  bodies of all such cities and towns and their officers since their
    2-7  incorporation or attempted incorporation are validated as of the
    2-8  date of such proceedings, including extensions or attempted
    2-9  extensions of extraterritorial jurisdiction undertaken at the
   2-10  request of owners of territory.
   2-11        Sec. 4.  ANNEXATION PROCEEDINGS.  (a)  The governmental acts
   2-12  and proceedings of a city or town relating to the annexation or
   2-13  attempted annexation of adjacent territory by the city or town
   2-14  before December 31, 1992, are validated as of the dates they
   2-15  occurred.  The acts and proceedings may not be held invalid because
   2-16  they were not performed in accordance with the procedural or other
   2-17  requirements of Chapters 42 and 43, Local Government Code, or other
   2-18  law.  The boundaries fixed by the annexation or attempted
   2-19  annexation are validated.
   2-20        (b)  The governmental acts and proceedings of a city or town
   2-21  occurring after annexation may not be held invalid on the ground
   2-22  that the annexation, in the absence of this article, was invalid.
   2-23        Sec. 5.  ANNEXATIONS NOT VALIDATED.  This article does not
   2-24  validate governmental acts or proceedings relating to a city's or
   2-25  town's annexation or attempted annexation of territory in the
    3-1  extraterritorial jurisdiction of another city or town without the
    3-2  consent of that city or town in violation of Chapters 42 and 43,
    3-3  Local Government Code.
    3-4        Sec. 6.  ORDINANCE OR REGULATION NOT VALIDATED.  This article
    3-5  does not validate any ordinance or regulation of a municipality
    3-6  that violates Section 1.06 or 109.57, Alcoholic Beverage Code.
    3-7        Sec. 7.  EFFECT OF LITIGATION.  This article does not apply
    3-8  to any matter that on the effective date of this article:
    3-9              (1)  is involved in litigation if the litigation
   3-10  ultimately results in the matter being held invalid by a final
   3-11  judgment of a court of competent jurisdiction; or
   3-12              (2)  has been held invalid by a final judgment of a
   3-13  court of competent jurisdiction.
   3-14        SECTION 2.  Title 28, Revised Statutes, is amended by adding
   3-15  Article 974d-41 to read as follows:
   3-16        Art. 974d-41
   3-17        Sec. 1.  APPLICATION.  This article  applies to any
   3-18  municipality having a population of 1.5 million or more.
   3-19        Sec. 2.  PROCEEDINGS VALIDATED.  The governmental acts and
   3-20  proceedings of a municipality relating to a bond election that was
   3-21  held before December 1, 1991, and at which the ballot proposition
   3-22  was approved by more than 60 percent of the voters voting on the
   3-23  proposition are validated as of the dates they occurred.  The
   3-24  validation includes the preparation and wording of the ballot
   3-25  proposition, any action taken by the municipality in calling and
    4-1  holding the bond election, and any other action taken by the
    4-2  municipality before the effective date of this article in
    4-3  connection with the issuance of any bonds approved in the bond
    4-4  election.  The acts and proceedings may not be held invalid because
    4-5  they were not performed in accordance with law.  A municipality may
    4-6  take any further action or conduct any further proceeding necessary
    4-7  to complete the issuance of the bonds approved at the bond
    4-8  election, and, when issued, the bonds are valid and binding
    4-9  obligations of the municipality in accordance with the terms of the
   4-10  bonds.
   4-11        Sec. 3.  EFFECT ON LITIGATION.  This article does not apply
   4-12  to any matter that on the effective date of this article has been
   4-13  held invalid by a final judgment of a court of competent
   4-14  jurisdiction.
   4-15        Sec. 4.  RECOMMENDATION.  The legislature recommends to the
   4-16  governing body of a municipality that it adopt the aggregate goals
   4-17  for the municipality's contracting with minority and women
   4-18  enterprises set forth in the June 1992, report of Texas Southern
   4-19  University as specified for the categories of construction,
   4-20  procurement, and professional services.  A cause of action may not
   4-21  be maintained to enforce this section or to recover damages based
   4-22  on the failure of the municipality to follow the recommendation of
   4-23  this section.
   4-24        Sec. 5.  CONDITIONS AFFECTING EXPENDITURE OF BOND PROCEEDS.
   4-25  (a)  Expenditures of the bond proceeds by the municipality shall:
    5-1              (1)  be made in accordance with the covenants of all
    5-2  ordinances enacted by the municipality before the bond election
    5-3  approving the bonds;
    5-4              (2)  benefit the residents of the municipality so that
    5-5  the benefits or expenditures, if feasible, reflect the demographic
    5-6  makeup of the municipality; and
    5-7              (3)  to the extent the proceeds are designated for
    5-8  housing in the municipality's bond proposition, be made for
    5-9  construction and rehabilitation of housing and all matters
   5-10  incidental to housing construction and rehabilitation on-site.
   5-11        (b)  This section applies cumulatively to the entire bond
   5-12  authorization, rather than to individual bond issues or contracts
   5-13  for the expenditure of the proceeds, and the municipality's
   5-14  governing body is responsible for making decisions on individual
   5-15  bond issues and contracts.
   5-16        SECTION 3.  The importance of this legislation and the
   5-17  crowded condition of the calendars in both houses create an
   5-18  emergency and an imperative public necessity that the
   5-19  constitutional rule requiring bills to be read on three several
   5-20  days in each house be suspended, and this rule is hereby suspended,
   5-21  and that this Act take effect and be in force from and after its
   5-22  passage, and it is so enacted.