BILL ANALYSIS



C.S.S.B. 299
By: Ellis (Hill)
February 22, 1995
Committee Report (Substituted)


BACKGROUND

Since 1934, the legislature has regularly passed validation
statutes that apply to various activities and functions of cities. 
These statutes validate certain actions taken by cities regarding
adoption of home rule charters, and incorporation and annexation
proceedings. 

PURPOSE

As proposed, C.S.S.B. 299 validates municipalities' adoption of
home-rule charters, incorporation and annexation proceedings,
industrial sales tax elections, and all other acts and proceedings;
provides that annexation of extraterritorial jurisdiction of
another municipality is not validated.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Title 28, V.T.C.S., by adding Article 974d-44,
as follows:

     Art. 974d-44.
     
     Sec. 1.  APPLICATION.  Makes this article applicable to any
     incorporated city, town, or village operating under general
     laws or under a home-rule charter.
     
     Sec. 2.  ADOPTION OR AMENDMENT OF HOME-RULE CHARTER.  (a) 
     Provides that all governmental acts and proceedings of a
     municipality covered by this article regarding the adoption or
     amendment of a home-rule charter are validated as of the dates
     on which they occurred.
     
     (b)  Provides that all proceedings of a municipality since
       adoption or attempted adoption or amendment of the charter
       are validated as of the dates on which they occurred.
       
       Sec. 3.  INCORPORATION PROCEEDINGS.  (a)  Provides that the
     incorporation proceedings of all cities and towns are
     validated as of the date of such incorporation or attempted
     incorporation.  Prohibits the incorporation of such cities and
     towns from being held invalid because the election or
     incorporation proceedings may not have been in accordance with
     the law.
     
     (b)  Provides that all proceedings performed by the
       governing bodies of all such cities and towns since their
       incorporation or attempted incorporation are validated as of
       the date of such proceedings.
       
       Sec. 4.  ANNEXATION PROCEEDINGS.  (a)  Provides that
     proceedings of a city or town relating to annexation of
     adjacent territory by the city or town, are validated as of
     the dates they occurred.  Prohibits the proceedings from being
     held invalid because they were not performed in accordance
     with certain law.  Provides that the boundaries fixed by the
     annexation are validated.
     
     (b)  Prohibits the proceedings of the city or town occurring
       after annexation from being held invalid on the ground that
       the annexation, in the absence of this article, was invalid.
       
     Sec. 5.  ANNEXATIONS NOT VALIDATED.  Provides that this
     article does not validate governmental proceedings relating to
     a city's or town's annexation of territory in the
     extraterritorial jurisdiction of another city or town without
     the consent of that city or town in violation of Chapters 42
     and 43, Local Government Code.
     
     Sec. 6   Makes article applicable to acts that occur before
     March 1, 1995.
     
     Sec. 7   ORDINANCE OR REGULATION NOT VALIDATED.  Does not
     validate acts in violation of Sec. 1.06 or 109.57, Alcoholic
     Beverage Code.
     
     SEC. 8   INDUSTRIAL DEVELOPMENT SALES TAX ELECTION   Validates
     these elections held before January 1, 1995
     
     Sec. 9.  EFFECT OF LITIGATION.   Makes bill inapplicable to
     matters in litigation.
     
SECTION 2. Emergency clause.



COMPARISON OF ORIGINAL TO SUBSTITUTE

The committee substitute adds a new Sec. 6 within Section 1 of the
bill which specifically states that this Act applies to
governmental acts and proceedings that occurred before March 1,
1995

The substitute changes the operative date in Sec. 8 within Section
1 of the substitute from December 6, 1994 to January 1, 1995 as to
industrial development sales tax elections.

The substitute deletes December 31, 1994 as the cutoff date for
annexation validations in Sec. 4 within Section 1 of the bill.

SUMMARY OF COMMITTEE ACTION

S.B. 299 was considered by the committee in a public hearing on
February 27, 1995.  A substitute was offered by the Chair.  The
following people testified in favor of the bill: Rep. Gray; and
Susan Horton, representing the Texas Municipal League.  The bill
was left pending.  The bill was considered and left pending on
March 6, 1995.  The bill was considered by the committee and left
pending on March 13, 1995 after the following people testified in
favor of it: Susan Horton, representing the Texas Municipal League. 
The committee considered the bill on March 20, 1995.  The committee
considered a substitute for the bill.  The substitute was adopted
without objection.  The people who testified in favor of the bill:
Rep. Gray; Robert Randolph, representing Vinson and Elkins; and
Barbara Crews, representing the City of Galveston.  The bill was
reported favorably, as substituted, with the recommendation that it
do pass and be printed, by a record vote of 7 ayes, 0 nays, 0 pnv,
and 2 absent.