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.