Relating to the penalties imposed on municipalities and counties for violating state law and the state constitution.

89(R) HB 4283 - House Committee Report version - Bill Text

89R26278 DRS-D

By: LaHood

H.B. No. 4283

Substitute the following for H.B. No. 4283:

By: Metcalf

C.S.H.B. No. 4283

A BILL TO BE ENTITLED

AN ACT

relating to the penalties imposed on municipalities and counties

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 OR COUNTY LAWS;

PENALTIES

Sec.

402.101.

DEFINITION. In this subchapter, "municipal

or county law" means an ordinance, order, rule, or similar measure

adopted by the governing body of a municipality or county.

Sec.

402.102.

REVIEW OF MUNICIPAL OR COUNTY LAWS; REPORT.

(a) The attorney general may conduct an investigation to determine

whether a municipal or county law violates state law or the state

constitution.

(b)

If the attorney general conducts an investigation under

Subsection (a), the attorney general shall prepare a report on the

findings of the investigation and, if the attorney general

determines that the municipal or county 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

the governing body of the affected municipality or county.

(c)

If the report provided to a municipality or county under

Subsection (b) indicates that a municipal or county law adopted by

the municipality or county 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 or county law

violates state law or the state constitution; and

(2)

states that the municipality or county must

resolve the violation before the 30th day after the date the

municipality or county 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 or county law does not violate state law or

the state constitution, no further action is required of the

attorney general or the municipality or county.

Sec.

402.104.

EFFECT OF FINDING OF VIOLATION. (a) Subject

to Section 402.105, if the report under Section 402.102(b) states

that the attorney general finds that the municipal or county law

violates state law or the state constitution and the municipality

or county that adopted the municipal or county law does not resolve

the violation within the period prescribed by Section

402.102(c)(2):

(1)

the municipality or county is liable to the state

for a civil penalty of not more than $3,000 for each day after the

date the municipality or county receives the report under Section

402.102(b); and

(2)

until the municipality or county has resolved the

violation or prevails in an appeal under Section 402.105:

(A)

the governing body of the municipality or

county may not authorize the issuance of bonds; and

(B)

if a municipal law is the subject of the

violation, the governing body of the municipality may not initiate

an annexation procedure under Chapter 43, Local Government Code.

(b)

The attorney general may bring an action in district

court to:

(1)

recover a civil penalty imposed under this

subchapter; and

(2)

enforce the penalties imposed under this

subchapter.

(c)

Governmental immunity to suit and from liability is

waived to the extent of liability created by this subchapter.

(d)

The attorney general may recover reasonable attorney's

fees and court costs incurred in bringing an action under this

subchapter.

Sec.

402.105.

APPEAL BY MUNICIPALITY OR COUNTY. (a) A

municipality or county may bring an action in district court to

appeal a determination by the attorney general under Section

402.102(b).

(b)

Subject to Subsection (c), a municipality or county is

not liable for the civil penalty imposed under Section

402.104(a)(1) during the pendency of an action brought under this

section.

(c)

If a municipality or county does not prevail in an

action under this section:

(1)

the municipality or county is liable to the state

for a civil penalty of:

(A)

not more than $9,000 for each day the appeal

was pending in district court; and

(B)

not more than $3,000 for each day after the

date of the final disposition of the action brought under

Subsection (a) that the municipality or county has not resolved the

violation; and

(2)

until the later of the fifth anniversary of the

date of the final disposition of the case brought under Subsection

(a) or the date that the municipality or county resolves the

violation subject to the action brought under Subsection (a), the

governing body of the municipality or county:

(A) may not authorize the issuance of bonds; and

(B)

may not initiate an annexation procedure

under Chapter 43, Local Government Code, if a municipal law is the

subject of the appeal.

SECTION 2. This Act takes effect April 1, 2026.