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.