1-1  By:  Henderson                                          S.B. No. 88
    1-2        (In the Senate - Filed January 8, 1993; January 14, 1993,
    1-3  read first time and referred to Committee on Intergovernmental
    1-4  Relations; January 27, 1993, reported adversely, with favorable
    1-5  Committee Substitute by the following vote:  Yeas 9, Nays 0;
    1-6  January 27, 1993, sent to printer.)
    1-7                            COMMITTEE VOTE
    1-8                          Yea     Nay      PNV      Absent 
    1-9        Armbrister         x                               
   1-10        Leedom                                        x    
   1-11        Carriker           x                               
   1-12        Henderson          x                               
   1-13        Madla              x                               
   1-14        Moncrief           x                               
   1-15        Patterson          x                               
   1-16        Rosson             x                               
   1-17        Shapiro            x                               
   1-18        Wentworth          x                               
   1-19        Whitmire                                      x    
   1-20  COMMITTEE SUBSTITUTE FOR S.B. No. 88                 By:  Henderson
   1-21                         A BILL TO BE ENTITLED
   1-22                                AN ACT
   1-23  relating to the validation of governmental acts and proceedings by
   1-24  municipalities.
   1-25        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-26        SECTION 1.  Title 28, Revised Statutes, is amended by adding
   1-27  Article 974d-40 to read as follows:
   1-28        Art. 974d-40
   1-29        Sec. 1.  APPLICATION.  This article applies to any
   1-30  incorporated city, town, or village operating under general law or
   1-31  under a home-rule charter.
   1-32        Sec. 2.  ADOPTION OF HOME-RULE CHARTER.  (a)  All
   1-33  governmental acts and proceedings of a municipality covered by this
   1-34  article regarding the adoption of a home-rule charter are validated
   1-35  as of the dates on which they occurred.
   1-36        (b)  All governmental acts and proceedings of the
   1-37  municipality since adoption or attempted adoption of the charter
   1-38  are validated as of the dates on which they occurred.
   1-39        Sec. 3.  INCORPORATION PROCEEDINGS.  (a)  The incorporation
   1-40  proceedings of all cities and towns in this state that incorporated
   1-41  or attempted to incorporate under the general laws of the State of
   1-42  Texas, whether under the aldermanic or commission form of
   1-43  government, and which have functioned or attempted to function as
   1-44  incorporated cities or towns since the date of such incorporation
   1-45  or attempted incorporation are validated as of the date of such
   1-46  incorporation or attempted incorporation.  The incorporation of
   1-47  such cities and towns shall not be held invalid by reason of the
   1-48  fact that the election proceedings or incorporation proceedings may
   1-49  not have been in accordance with law.
   1-50        (b)  All governmental proceedings performed by the governing
   1-51  bodies of all such cities and towns and their officers since their
   1-52  incorporation or attempted incorporation are validated as of the
   1-53  date of such proceedings, including extensions or attempted
   1-54  extensions of extraterritorial jurisdiction undertaken at the
   1-55  request of owners of territory.
   1-56        Sec. 4.  ANNEXATION PROCEEDINGS.  (a)  The governmental acts
   1-57  and proceedings of a city or town relating to the annexation or
   1-58  attempted annexation of adjacent territory by the city or town
   1-59  before December 31, 1992, are validated as of the dates they
   1-60  occurred.  The acts and proceedings may not be held invalid because
   1-61  they were not performed in accordance with the procedural or other
   1-62  requirements of Chapters 42 and 43, Local Government Code, or other
   1-63  law.  The boundaries fixed by the annexation or attempted
   1-64  annexation are validated.
   1-65        (b)  The governmental acts and proceedings of a city or town
   1-66  occurring after annexation may not be held invalid on the ground
   1-67  that the annexation, in the absence of this article, was invalid.
   1-68        Sec.  5.  ANNEXATIONS NOT VALIDATED.  This article does not
    2-1  validate governmental acts or proceedings relating to a city's or
    2-2  town's annexation or attempted annexation of territory in the
    2-3  extraterritorial jurisdiction of another city or town without the
    2-4  consent of that city or town in violation of Chapters 42 and 43,
    2-5  Local Government Code.
    2-6        Sec. 6.  ORDINANCE OR REGULATION NOT VALIDATED.  This article
    2-7  does not validate any ordinance or regulation of a municipality
    2-8  that violates Section 1.06 or 109.57, Alcoholic Beverage Code.
    2-9        Sec. 7.  EFFECT OF LITIGATION.  This article does not apply
   2-10  to any matter that on the effective date of this article:
   2-11              (1)  is involved in litigation if the litigation
   2-12  ultimately results in the matter being held invalid by a final
   2-13  judgment of a court of competent jurisdiction; or
   2-14              (2)  has been held invalid by a final judgment of a
   2-15  court of competent jurisdiction.
   2-16        SECTION 2.  Title 28, Revised Statutes, is amended by adding
   2-17  Article 974d-41 to read as follows:
   2-18        Art.  974d-41
   2-19        Sec. 1.  APPLICATION.  This article  applies to any
   2-20  municipality having a population of 1.5 million or more.
   2-21        Sec. 2.  PROCEEDINGS VALIDATED.  The governmental acts and
   2-22  proceedings of a municipality relating to a bond election that was
   2-23  held before December 1, 1991, and at which the ballot proposition
   2-24  was approved by more than 60 percent of the voters voting on the
   2-25  proposition are validated as of the dates they occurred.  The
   2-26  validation includes the preparation and wording of the ballot
   2-27  proposition, any action taken by the municipality in calling and
   2-28  holding the bond election, and any other action taken by the
   2-29  municipality before the effective date of this article in
   2-30  connection with the issuance of any bonds approved in the bond
   2-31  election.  The acts and proceedings may not be held invalid because
   2-32  they were not performed in accordance with law.  A municipality may
   2-33  take any further action or conduct any further proceeding necessary
   2-34  to complete the issuance of the bonds approved at the bond
   2-35  election, and, when issued, the bonds are valid and binding
   2-36  obligations of the municipality in accordance with the terms of the
   2-37  bonds.
   2-38        Sec. 3.  EFFECT ON LITIGATION.  This article does not apply
   2-39  to any matter that on the effective date of this article has been
   2-40  held invalid by a final judgment of a court of competent
   2-41  jurisdiction.
   2-42        SECTION 3.  The importance of this legislation and the
   2-43  crowded condition of the calendars in both houses create an
   2-44  emergency and an imperative public necessity that the
   2-45  constitutional rule requiring bills to be read on three several
   2-46  days in each house be suspended, and this rule is hereby suspended,
   2-47  and that this Act take effect and be in force from and after its
   2-48  passage, and it is so enacted.
   2-49                               * * * * *
   2-50                                                         Austin,
   2-51  Texas
   2-52                                                         January 27,
   2-53  1993
   2-54  Hon. Bob Bullock
   2-55  President of the Senate
   2-56  Sir:
   2-57  We, your Committee on Intergovernmental Relations to which was
   2-58  referred S.B. No. 88, have had the same under consideration, and I
   2-59  am instructed to report it back to the Senate with the
   2-60  recommendation that it do not pass, but that the Committee
   2-61  Substitute adopted in lieu thereof do pass and be printed.
   2-62                                                         Armbrister,
   2-63  Chairman
   2-64                               * * * * *
   2-65                               WITNESSES
   2-66                                                  FOR   AGAINST  ON
   2-67  ___________________________________________________________________
   2-68  Name:  Susan Horton                              x
   2-69  Representing:  Texas Municipal League
   2-70  City:  Austin
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    3-2  Name:  Sabrina Foster                            x
    3-3  Representing:  City of Houston
    3-4  City:  Houston
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    3-6  Name:  Michael White                             x
    3-7  Representing:  Greater Houston Partnership
    3-8  City:  Houston
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