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.