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repealed.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