| 1 | 1 | | 81R9513 SGA-F |
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| 2 | 2 | | By: Ellis S.B. No. 2450 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the sovereign immunity of certain local governmental |
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| 8 | 8 | | entities regarding certain contracts. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 271.151(2), Local Government Code, is |
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| 11 | 11 | | amended to read as follows: |
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| 12 | 12 | | (2) "Contract subject to this subchapter" means: |
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| 13 | 13 | | (A) a written contract stating the essential |
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| 14 | 14 | | terms of the agreement for providing goods or services to the local |
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| 15 | 15 | | governmental entity that is properly executed on behalf of the |
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| 16 | 16 | | local governmental entity; or |
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| 17 | 17 | | (B) a written contract for the lease of public |
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| 18 | 18 | | land located at a port improvement or facility managed and |
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| 19 | 19 | | controlled by a board of trustees established under Section 54.051, |
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| 20 | 20 | | Transportation Code, for a proprietary function, including the |
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| 21 | 21 | | construction or operation of retail, office, hotel, restaurant, |
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| 22 | 22 | | residential, or parking facilities, or other tourism-related |
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| 23 | 23 | | improvements. |
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| 24 | 24 | | SECTION 2. Section 54.053, Transportation Code, is amended |
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| 25 | 25 | | by amending Subsections (c) and (d) and adding Subsection (c-1) to |
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| 26 | 26 | | read as follows: |
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| 27 | 27 | | (c) A board has the power to construct a port improvement or |
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| 28 | 28 | | facility on land acquired by purchase, lease, or otherwise. |
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| 29 | 29 | | (c-1) A [, and a] board may convey by lease, sublease, or |
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| 30 | 30 | | sale by installment or otherwise, on the terms the board determines |
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| 31 | 31 | | to be advantageous, the land, interest in the land, or port |
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| 32 | 32 | | improvement or facility. A contract for the lease of public land |
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| 33 | 33 | | for the construction or operation of retail, office, hotel, |
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| 34 | 34 | | restaurant, residential, or parking facilities, or other |
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| 35 | 35 | | tourism-related improvements, is a proprietary function and not a |
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| 36 | 36 | | public or governmental function. |
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| 37 | 37 | | (d) Except as provided by Subsection (c-1), each [Each] |
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| 38 | 38 | | power provided by this section is a public and governmental |
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| 39 | 39 | | function, is exercised for a public purpose, and is a matter of |
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| 40 | 40 | | public necessity. |
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| 41 | 41 | | SECTION 3. Section 54.056, Transportation Code, is |
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| 42 | 42 | | repealed. |
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| 43 | 43 | | SECTION 4. (a) The changes in law made by this Act apply to |
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| 44 | 44 | | a contract executed by a local governmental entity regardless of |
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| 45 | 45 | | whether the contract was executed before, on, or after the |
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| 46 | 46 | | effective date of this Act. |
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| 47 | 47 | | (b) The waiver of sovereign immunity created by this Act |
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| 48 | 48 | | concedes no defense by any party in a pending lawsuit except that of |
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| 49 | 49 | | sovereign immunity. |
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| 50 | 50 | | SECTION 5. This Act takes effect immediately if it receives |
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| 51 | 51 | | a vote of two-thirds of all the members elected to each house, as |
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| 52 | 52 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 53 | 53 | | Act does not receive the vote necessary for immediate effect, this |
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| 54 | 54 | | Act takes effect September 1, 2009. |
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