| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the penalties imposed on municipalities for violating |
|
|
state law and the state constitution. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Chapter 402, Government Code, is amended by |
|
|
adding Subchapter D to read as follows: |
|
|
SUBCHAPTER D. REVIEW OF CERTAIN MUNICIPAL LAWS; PENALTIES |
|
|
Sec. 402.101. DEFINITION. In this subchapter, "municipal |
|
|
law" means an ordinance, rule, or similar measure adopted by the |
|
|
governing body of a municipality. |
|
|
Sec. 402.102. REVIEW OF MUNICIPAL LAWS; REPORT. (a) The |
|
|
attorney general may conduct an investigation to determine whether |
|
|
a municipal law violates state law or the state constitution. |
|
|
(b) The attorney general shall conduct an investigation and |
|
|
prepare a report on the findings of the investigation and, if the |
|
|
attorney general determines that the municipal law that is the |
|
|
subject of the investigation violates state law or the state |
|
|
constitution, the attorney general shall include a statement to |
|
|
that effect in the report. The attorney general shall submit a copy |
|
|
of the report to: |
|
|
(1) the comptroller; and |
|
|
(2) the governing body of the affected municipality. |
|
|
(c) If the report provided to a municipality under |
|
|
Subsection (b) indicates that a municipal law adopted by the |
|
|
municipality violates state law or the state constitution, the |
|
|
attorney general must include with the report an additional notice |
|
|
that: |
|
|
(1) clearly and concisely explains the attorney |
|
|
general's reasons for finding that the municipal law violates state |
|
|
law or the state constitution; and |
|
|
(2) states that the municipality must resolve the |
|
|
violation before the 30th day after the date the municipality |
|
|
receives the report under Subsection (b) in order to avoid the |
|
|
penalties described by Section 402.104. |
|
|
Sec. 402.103. EFFECT OF FINDING OF NO VIOLATION. If the |
|
|
report under Section 402.102(b) states that the attorney general |
|
|
finds that the municipal law does not violate state law or the state |
|
|
constitution, no further action is required of the attorney general |
|
|
or the municipality. |
|
|
Sec. 402.104. EFFECT OF FINDING OF VIOLATION. (a) If the |
|
|
report under Section 402.102(b) states that the attorney general |
|
|
finds that the municipal law violates state law or the state |
|
|
constitution and the municipality that adopted the municipal law |
|
|
does not resolve the violation within the period prescribed by |
|
|
Section 402.102(c)(2): |
|
|
(1) the municipality is liable to the state for a civil |
|
|
penalty of not more than $3,000 for each day after the date the |
|
|
municipality receives the report under Section 402.102(b); |
|
|
(2) until the attorney general determines that the |
|
|
municipality has resolved the violation, the governing body of the |
|
|
municipality may not: |
|
|
(A) initiate an annexation procedure under |
|
|
Chapter 43, Local Government Code; or |
|
|
(B) authorize the issuance of bonds; and |
|
|
(3) the attorney general shall submit written notice |
|
|
to the comptroller instructing the comptroller to withhold any |
|
|
money due to the municipality under Section 321.502, Tax Code, |
|
|
until the attorney general notifies the comptroller that the |
|
|
municipality has resolved the violation. |
|
|
(b) The attorney general must provide to the municipality a |
|
|
copy of the notice submitted to the comptroller under Subsection |
|
|
(a)(3). |
|
|
(c) The attorney general may bring an action in a court of |
|
|
competent jurisdiction to recover the civil penalty imposed under |
|
|
this section. |
|
|
(d) The attorney general shall consult with the governing |
|
|
body of the municipality for purposes of determining whether the |
|
|
municipality has resolved the violation identified in the report |
|
|
under Section 402.102(b). On the date the attorney general |
|
|
determines the violation has been resolved, the attorney general |
|
|
shall provide written notice of the resolution to the governing |
|
|
body of the municipality and the comptroller. |
|
|
(e) The comptroller may not distribute any money to the |
|
|
municipality under Section 321.502, Tax Code, during the period |
|
|
beginning on the date the comptroller receives the notice under |
|
|
Subsection (a) and ending on the date the comptroller receives the |
|
|
notice described by Subsection (d). |
|
|
SECTION 2. Section 321.502, Tax Code, is amended to read as |
|
|
follows: |
|
|
Sec. 321.502. DISTRIBUTION OF TRUST FUNDS. Subject to |
|
|
Section 402.104, Government Code, at [At] least twice during each |
|
|
state fiscal year and at other times as often as feasible, the |
|
|
comptroller shall send to the municipal treasurer or to the person |
|
|
who performs the office of the municipal treasurer payable to the |
|
|
municipality the municipality's share of the taxes collected by the |
|
|
comptroller under this chapter. |
|
|
SECTION 3. This Act takes effect September 1, 2025. |