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A BILL TO BE ENTITLED
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AN ACT
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relating to the penalties imposed on municipalities and counties |
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for violating state law and the state constitution. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 402, Government Code, is amended by |
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adding Subchapter D to read as follows: |
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SUBCHAPTER D. REVIEW OF CERTAIN MUNICIPAL OR COUNTY LAWS; |
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PENALTIES |
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Sec. 402.101. DEFINITION. In this subchapter, "municipal |
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or county law" means an ordinance, order, rule, or similar measure |
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adopted by the governing body of a municipality or county. |
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Sec. 402.102. REVIEW OF MUNICIPAL OR COUNTY LAWS; REPORT. |
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(a) The attorney general may conduct an investigation to determine |
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whether a municipal or county law violates state law or the state |
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constitution. |
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(b) If the attorney general conducts an investigation under |
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Subsection (a), the attorney general shall prepare a report on the |
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findings of the investigation and, if the attorney general |
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determines that the municipal or county law that is the subject of |
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the investigation violates state law or the state constitution, the |
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attorney general shall include a statement to that effect in the |
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report. The attorney general shall submit a copy of the report to |
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the governing body of the affected municipality or county. |
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(c) If the report provided to a municipality or county under |
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Subsection (b) indicates that a municipal or county law adopted by |
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the municipality or county violates state law or the state |
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constitution, the attorney general must include with the report an |
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additional notice that: |
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(1) clearly and concisely explains the attorney |
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general's reasons for finding that the municipal or county law |
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violates state law or the state constitution; and |
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(2) states that the municipality or county must |
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resolve the violation before the 30th day after the date the |
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municipality or county receives the report under Subsection (b) in |
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order to avoid the penalties described by Section 402.104. |
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Sec. 402.103. EFFECT OF FINDING OF NO VIOLATION. If the |
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report under Section 402.102(b) states that the attorney general |
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finds that the municipal or county law does not violate state law or |
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the state constitution, no further action is required of the |
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attorney general or the municipality or county. |
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Sec. 402.104. EFFECT OF FINDING OF VIOLATION. (a) Subject |
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to Section 402.105, if the report under Section 402.102(b) states |
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that the attorney general finds that the municipal or county law |
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violates state law or the state constitution and the municipality |
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or county that adopted the municipal or county law does not resolve |
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the violation within the period prescribed by Section |
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402.102(c)(2): |
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(1) the municipality or county is liable to the state |
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for a civil penalty of not more than $3,000 for each day after the |
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date the municipality or county receives the report under Section |
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402.102(b); and |
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(2) until the municipality or county has resolved the |
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violation or prevails in an appeal under Section 402.105: |
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(A) the governing body of the municipality or |
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county may not authorize the issuance of bonds; and |
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(B) if a municipal law is the subject of the |
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violation, the governing body of the municipality may not initiate |
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an annexation procedure under Chapter 43, Local Government Code. |
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(b) The attorney general may bring an action in district |
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court to: |
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(1) recover a civil penalty imposed under this |
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subchapter; and |
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(2) enforce the penalties imposed under this |
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subchapter. |
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(c) Governmental immunity to suit and from liability is |
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waived to the extent of liability created by this subchapter. |
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(d) The attorney general may recover reasonable attorney's |
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fees and court costs incurred in bringing an action under this |
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subchapter. |
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Sec. 402.105. APPEAL BY MUNICIPALITY OR COUNTY. (a) A |
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municipality or county may bring an action in district court to |
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appeal a determination by the attorney general under Section |
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402.102(b). |
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(b) Subject to Subsection (c), a municipality or county is |
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not liable for the civil penalty imposed under Section |
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402.104(a)(1) during the pendency of an action brought under this |
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section. |
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(c) If a municipality or county does not prevail in an |
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action under this section: |
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(1) the municipality or county is liable to the state |
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for a civil penalty of: |
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(A) not more than $9,000 for each day the appeal |
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was pending in district court; and |
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(B) not more than $3,000 for each day after the |
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date of the final disposition of the action brought under |
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Subsection (a) that the municipality or county has not resolved the |
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violation; and |
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(2) until the later of the fifth anniversary of the |
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date of the final disposition of the case brought under Subsection |
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(a) or the date that the municipality or county resolves the |
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violation subject to the action brought under Subsection (a), the |
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governing body of the municipality or county: |
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(A) may not authorize the issuance of bonds; and |
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(B) may not initiate an annexation procedure |
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under Chapter 43, Local Government Code, if a municipal law is the |
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subject of the appeal. |
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SECTION 2. This Act takes effect April 1, 2026. |