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A BILL TO BE ENTITLED
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AN ACT
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relating to the sovereign immunity of certain local governmental |
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entities regarding certain contracts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 271.151(2), Local Government Code, is |
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amended to read as follows: |
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(2) "Contract subject to this subchapter" means: |
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(A) a written contract stating the essential |
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terms of the agreement for providing goods or services to the local |
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governmental entity that is properly executed on behalf of the |
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local governmental entity; or |
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(B) a written contract for the lease of public |
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land located at a port improvement or facility managed and |
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controlled by a board of trustees established under Section 54.051, |
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Transportation Code, for a proprietary function, including the |
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construction or operation of retail, office, hotel, restaurant, |
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residential, or parking facilities, or other tourism-related |
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improvements. |
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SECTION 2. Section 54.053, Transportation Code, is amended |
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by amending Subsections (c) and (d) and adding Subsection (c-1) to |
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read as follows: |
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(c) A board has the power to construct a port improvement or |
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facility on land acquired by purchase, lease, or otherwise. |
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(c-1) A [, and a] board may convey by lease, sublease, or |
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sale by installment or otherwise, on the terms the board determines |
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to be advantageous, the land, interest in the land, or port |
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improvement or facility. A contract for the lease of public land |
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for the construction or operation of retail, office, hotel, |
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restaurant, residential, or parking facilities, or other |
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tourism-related improvements, is a proprietary function and not a |
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public or governmental function. |
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(d) Except as provided by Subsection (c-1), each [Each] |
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power provided by this section is a public and governmental |
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function, is exercised for a public purpose, and is a matter of |
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public necessity. |
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SECTION 3. Section 54.056, Transportation Code, is |
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repealed. |
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SECTION 4. (a) The changes in law made by this Act apply to |
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a contract executed by a local governmental entity regardless of |
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whether the contract was executed before, on, or after the |
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effective date of this Act. |
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(b) The waiver of sovereign immunity created by this Act |
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concedes no defense by any party in a pending lawsuit except that of |
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sovereign immunity. |
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SECTION 5. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |