By Walker H.B. No. 742 77R4344 MI-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the presumed validity of a district act or proceeding. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Subchapter D, Chapter 36, Water Code, is amended 1-5 by adding Section 36.124 to read as follows: 1-6 Sec. 36.124. DISTRICT ACT OR PROCEEDING PRESUMED VALID. (a) 1-7 A governmental act or proceeding of a district is conclusively 1-8 presumed, as of the date it occurred, valid and to have occurred in 1-9 accordance with all applicable statutes and rules if: 1-10 (1) the third anniversary of the effective date of the 1-11 act or proceeding has expired; and 1-12 (2) a lawsuit to annul or invalidate the act or 1-13 proceeding has not been filed on or before that third anniversary. 1-14 (b) This section does not apply to: 1-15 (1) an act or proceeding that was void at the time it 1-16 occurred; 1-17 (2) an act or proceeding that, under a statute of this 1-18 state or the United States, was a misdemeanor or felony at the time 1-19 the act or proceeding occurred; 1-20 (3) a rule that, at the time it was passed, was 1-21 preempted by a statute of this state or the United States, 1-22 including Section 1.06 or 109.57, Alcoholic Beverage Code; or 1-23 (4) a matter that on the effective date of this 1-24 section: 2-1 (A) is involved in litigation if the litigation 2-2 ultimately results in the matter being held invalid by a final 2-3 judgment of a court; or 2-4 (B) has been held invalid by a final judgment of 2-5 a court. 2-6 SECTION 2. Subchapter H, Chapter 49, Water Code, is amended 2-7 by adding Section 49.234 to read as follows: 2-8 Sec. 49.234. DISTRICT ACT OR PROCEEDING PRESUMED VALID. (a) 2-9 A governmental act or proceeding of a district is conclusively 2-10 presumed, as of the date it occurred, valid and to have occurred in 2-11 accordance with all applicable statutes and rules if: 2-12 (1) the third anniversary of the effective date of the 2-13 act or proceeding has expired; and 2-14 (2) a lawsuit to annul or invalidate the act or 2-15 proceeding has not been filed on or before that third anniversary. 2-16 (b) This section does not apply to: 2-17 (1) an act or proceeding that was void at the time it 2-18 occurred; 2-19 (2) an act or proceeding that, under a statute of this 2-20 state or the United States, was a misdemeanor or felony at the time 2-21 the act or proceeding occurred; 2-22 (3) a rule that, at the time it was passed, was 2-23 preempted by a statute of this state or the United States, 2-24 including Section 1.06 or 109.57, Alcoholic Beverage Code; or 2-25 (4) a matter that on the effective date of this 2-26 section: 2-27 (A) is involved in litigation if the litigation 3-1 ultimately results in the matter being held invalid by a final 3-2 judgment of a court; or 3-3 (B) has been held invalid by a final judgment of 3-4 a court. 3-5 SECTION 3. This Act takes effect immediately if it receives 3-6 a vote of two-thirds of all members elected to each house, as 3-7 provided by Section 39, Article III, Texas Constitution. If this 3-8 Act does not receive the vote necessary for immediate effect, this 3-9 Act takes effect September 1, 2001.