bill letting the attorney general probe city ordinances

The text as introduced · 738 words

89R12133 DRS-D

By: LaHood
H.B. No. 4283

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.