HBA-TYH, MPA H.B. 485 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 485 By: Hill Urban Affairs 777/21/1999 Enrolled BACKGROUND AND PURPOSE From 1934 to 1997, the Texas Legislature 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, but specifically exclude validation of any illegal act or any transaction in litigation at the time of the passage of the statute. The 75th Legislature failed to pass a validation statute for the first time in 63 years. The validating statute is not absolute in limiting challenges to governmental action. H.B. 485 provides safeguards in that it does not validate actions that are involved in litigation, and specifically states that it does not apply to actions which may otherwise be invalid or void because of nonconformance with applicable laws. It does, however, provide some defense to governmental actions that are valid and within a city's authority to act, but that were enacted incorrectly from a procedural or clerical standpoint. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter A, Chapter 51, Local Government Code, by adding Section 51.003, as follows: Sec. 51.003. MUNICIPAL ACT OR PROCEEDING PRESUMED VALID. (a) Provides that a governmental act or proceeding of a municipality is conclusively presumed valid as of the date it occurred and in accordance with applicable statutes and ordinances if, the third anniversary of the effective date of the act or proceeding has expired, and a lawsuit to annul or invalidate the act or proceeding has not been filed on or before that third anniversary. (b) Provides that this section does not apply to: an act or proceeding which was void at the time it occurred or was a misdemeanor or felony at the time it occurred; an incorporation or attempted incorporation of a municipality, or an annexation or attempted annexation of territory by a municipality, within the boundaries or extraterritorial jurisdiction of, and without the consent of, another municipality in violation of Chapter 42 (Extraterritorial Jurisdiction of Municipalities) or Chapter 43 (Municipal Annexation); an ordinance preempted at the time it was passed by a statute of this state or the United States, including Section 1.06 (Code Exclusively Governs) or 109.57 (Application of Code; Other Jurisdictions), Alcoholic Beverage Code; or which has been held invalid by court decision or is involved in litigation that ultimately results in the matter being held invalid. SECTION 2. Emergency clause. Effective date: upon passage.