Texas 2019 - 86th Regular

Texas House Bill HB1734 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 1734
	1	+	By: Holland, et al. (Senate Sponsor - Lucio) H.B. No. 1734
	2	+	(In the Senate - Received from the House April 24, 2019;
	3	+	April 25, 2019, read first time and referred to Committee on
	4	+	Education; May 10, 2019, reported favorably by the following vote:
	5	+	Yeas 11, Nays 0; May 10, 2019, sent to printer.)
	6	+	Click here to see the committee vote
2	7
3	8
	9	+	A BILL TO BE ENTITLED
4	10		AN ACT
5	11		relating to litigation involving certain defects in school district
6	12		facilities and enforcement of certain duties following that
7	13		litigation; authorizing a civil penalty.
8	14		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	15		SECTION 1. Chapter 44, Education Code, is amended by adding
10	16		Subchapter E and adding a subchapter heading to read as follows:
11	17		SUBCHAPTER E. LITIGATION INVOLVING SCHOOL DISTRICT FACILITY
12	18		SECTION 2. Section 46.0111, Education Code, is transferred
13	19		to Subchapter E, Chapter 44, Education Code, as added by this Act,
14	20		redesignated as Section 44.151, Education Code, and amended to read
15	21		as follows:
16	22		Sec. 44.151 [46.0111]. ACTIONS BROUGHT FOR DEFECTIVE
17	23		DESIGN, CONSTRUCTION, RENOVATION, OR IMPROVEMENT OF SCHOOL
18	24		DISTRICT [INSTRUCTIONAL] FACILITY. (a) In this section:
19	25		(1) "Instructional facility" has the meaning assigned
20	26		by Section 46.001.
21	27		(2) "Net proceeds" means the difference between the
22	28		amount recovered by or on behalf of a school district in an action,
23	29		by settlement or otherwise, and the legal fees and litigation costs
24	30		incurred by the district in prosecuting the action.
25	31		(3) [(2)] "State's share" means an amount equal to the
26	32		district's net proceeds from the recovery multiplied by a
27	33		percentage determined by dividing the amount of state assistance
28	34		under Subchapter A, Chapter 46, [this subchapter] used to pay the
29	35		principal of and interest on bonds issued in connection with the
30	36		instructional facility that is the subject of the action by the
31	37		total amount of principal and interest paid on the bonds as of the
32	38		date of the judgment or settlement.
33	39		(b) A school district that brings an action for recovery of
34	40		damages for the defective design, construction, renovation, or
35	41		improvement of a district [an instructional] facility financed by
36	42		bonds [for which the district receives state assistance under this
37	43		subchapter] shall provide the commissioner with written notice of
38		-	the action by registered or certified mail, return receipt
39		-	requested, not later than the 30th day after the date the action is
40		-	filed. If the school district fails to comply with this subsection,
41		-	the court or an arbitrator or other adjudicating authority shall
42		-	dismiss the action without prejudice. The dismissal of an action
43		-	under this subsection extends the statute of limitations on the
44		-	action for a period of 90 days.
45		-	(b-1) The notice required under Subsection (b) must
46		-	include:
47		-	(1) a copy of the petition; and
48		-	(2) an itemized list of the defects in the design,
49		-	construction, renovation, or improvement for which the district is
50		-	seeking damages under the action.
	44	+	the action, including a copy of the petition, by registered or
	45	+	certified mail, return receipt requested, not later than the 30th
	46	+	day after the date the action is filed. If the school district
	47	+	fails to comply with this subsection, the court or an arbitrator or
	48	+	other adjudicating authority shall dismiss the action without
	49	+	prejudice. The dismissal of an action under this subsection
	50	+	extends the statute of limitations on the action for a period of 90
	51	+	days.
51	52		(c) In an action brought under Subsection (b) involving an
52	53		instructional facility financed by bonds for which the school
53	54		district receives state assistance under Subchapter A, Chapter 46,
54	55		the [The] commissioner may join in the action on behalf of the state
55	56		to protect the state's share in the action.
56	57		(d) A school district that brings an action under Subsection
57	58		(b) shall use the net proceeds from the [an] action for:
58	59		(1) the [brought by the district for the defective
59	60		design, construction, renovation, or improvement of an
60	61		instructional facility financed by bonds for which the district
61	62		receives state assistance under this subchapter to] repair of the
62	63		defective design, construction, renovation, or improvement of the
63	64		[instructional] facility on which the action is brought, including
64	65		the repair of any ancillary damage to furniture and fixtures;
65	66		(2) the replacement of [or to replace] the facility on
66	67		which the action is brought;
67	68		(3) the reimbursement of the district for a repair or
68	69		replacement made under Subdivision (1) or (2); or
69	70		(4) any other purpose with written approval from the
70	71		commissioner.
71	72		(d-1) Section 46.008 applies to the repair.
72	73		(e) A school district shall provide to the commissioner an
73	74		itemized accounting of any repairs made under Subsection (d).
74	75		(f) The state's share resulting from an action brought under
75	76		Subsection (b) involving an instructional facility financed by
76	77		bonds for which the school district receives state assistance under
77	78		Subchapter A, Chapter 46, is state property. The [school] district
78	79		shall send to the comptroller any portion of the state's share not
79	80		used by the [school] district to repair the defective design,
80	81		construction, renovation, or improvement of the instructional
81	82		facility on which the action is brought or to replace the facility.
82	83		Section 42.258 applies to the state's share under this subsection.
83	84		SECTION 3. Subchapter E, Chapter 44, Education Code, as
84	85		added by this Act, is amended by adding Section 44.152 to read as
85	86		follows:
86	87		Sec. 44.152. ATTORNEY GENERAL ENFORCEMENT OF SCHOOL
87	88		DISTRICT DUTIES FOLLOWING CERTAIN ACTIONS; REPORT. (a) If the
88	89		attorney general believes that a school district has violated or is
89	90		violating Section 44.151(d), (e), or (f), the attorney general may,
90	91		after providing at least two weeks' notice to the district, bring an
91	92		action on behalf of the state to enjoin the district from violating
92	93		those sections.
93	94		(b) In an action brought under Subsection (a), the attorney
94	95		general may request and the court may order any other appropriate
95	96		relief that is in the public interest, including payment of:
96	97		(1) a civil penalty in an amount not to exceed $20,000
97	98		for each violation of Section 44.151(d), (e), or (f);
98	99		(2) the attorney general's reasonable costs for
99	100		investigating and prosecuting the violation; or
100	101		(3) if applicable, the amount of the state's share
101	102		under Section 44.151(f).
102	103		(c) Not later than December 1 of each year, the attorney
103	104		general shall submit to the governor, the lieutenant governor, the
104	105		members of the legislature, and the commissioner a report on any
105	106		actions brought under this section during the preceding year. The
106	107		report must include the following information for each action:
107	108		(1) the filing date;
108	109		(2) the cause number;
109	110		(3) the school district that is the subject of the
110	111		action; and
111	112		(4) the court in which the action was brought.
112	113		SECTION 4. Section 44.151, Education Code, as transferred,
113	114		redesignated, and amended by this Act, applies only to an action
114	115		brought on or after the effective date of this Act. An action
115	116		brought before the effective date of this Act is governed by the law
116	117		applicable to the action immediately before the effective date of
117	118		this Act, and that law is continued in effect for that purpose.
118	119		SECTION 5. This Act takes effect September 1, 2019.
119		-	______________________________ ______________________________
120		-	President of the Senate Speaker of the House
121		-	I certify that H.B. No. 1734 was passed by the House on April
122		-	24, 2019, by the following vote: Yeas 111, Nays 30, 2 present, not
123		-	voting; that the House refused to concur in Senate amendments to
124		-	H.B. No. 1734 on May 23, 2019, and requested the appointment of a
125		-	conference committee to consider the differences between the two
126		-	houses; and that the House adopted the conference committee report
127		-	on H.B. No. 1734 on May 26, 2019, by the following vote: Yeas 123,
128		-	Nays 21, 2 present, not voting.
129		-	______________________________
130		-	Chief Clerk of the House
131		-	I certify that H.B. No. 1734 was passed by the Senate, with
132		-	amendments, on May 16, 2019, by the following vote: Yeas 31, Nays
133		-	0; at the request of the House, the Senate appointed a conference
134		-	committee to consider the differences between the two houses; and
135		-	that the Senate adopted the conference committee report on H.B. No.
136		-	1734 on May 26, 2019, by the following vote: Yeas 31, Nays 0.
137		-	______________________________
138		-	Secretary of the Senate
139		-	APPROVED: __________________
140		-	Date
141		-	__________________
142		-	Governor
	120	+	* * * * *