Texas 2021 - 87th Regular

Texas House Bill HB1929 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 1929
	1	+	By: Wilson (Senate Sponsor - Buckingham) H.B. No. 1929
	2	+	(In the Senate - Received from the House May 13, 2021;
	3	+	May 14, 2021, read first time and referred to Committee on Local
	4	+	Government; May 24, 2021, reported favorably by the following
	5	+	vote: Yeas 5, Nays 1; May 24, 2021, 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 the breach of development agreement contracts governing
6	12		land in the extraterritorial jurisdiction of certain
7	13		municipalities.
8	14		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	15		SECTION 1. Section 212.172, Local Government Code, is
10	16		amended by amending Subsections (a), (c), (e), (f), (g), and (h) and
11	17		adding Subsections (i), (j), and (k) to read as follows:
12	18		(a) In this subchapter:
13	19		(1) "Adjudication" of a claim means the bringing of a
14	20		civil suit and prosecution to final judgment in county or state
15	21		court and includes the bringing of an authorized arbitration
16	22		proceeding and prosecution to final resolution in accordance with
17	23		any mandatory procedures established in the contract agreement for
18	24		the arbitration proceedings.
19	25		(2) "Contract" means a contract for a development
20	26		agreement authorized by this subchapter.
21	27		(3) "Extraterritorial [, "extraterritorial]
22	28		jurisdiction" means a municipality's extraterritorial jurisdiction
23	29		as determined under Chapter 42.
24	30		(c) A contract [An agreement under this subchapter] must:
25	31		(1) be in writing;
26	32		(2) contain an adequate legal description of the land;
27	33		(3) be approved by the governing body of the
28	34		municipality and the landowner; and
29	35		(4) be recorded in the real property records of each
30	36		county in which any part of the land that is subject to the contract
31	37		[agreement] is located.
32	38		(e) A municipality in an affected county, as defined by
33	39		Section 16.341, Water Code, may not enter into a contract [an
34	40		agreement under this subchapter] that is inconsistent with the
35	41		model rules adopted under Section 16.343, Water Code.
36	42		(f) The contract [agreement] between the governing body of
37	43		the municipality and the landowner is binding on the municipality
38	44		and the landowner and on their respective successors and assigns
39	45		for the term of the contract [agreement]. The contract [agreement]
40	46		is not binding on, and does not create any encumbrance to title as
41	47		to, any end-buyer of a fully developed and improved lot within the
42	48		development, except for land use and development regulations that
43	49		may apply to a specific lot. Annexation by a municipality of land
44	50		subject to a contract does not invalidate the enforceability of the
45	51		contract or infringe on the rights of a party to adjudicate a claim
46	52		arising under the contract.
47	53		(g) A contract:
48	54		(1) [An agreement under this subchapter] constitutes a
49	55		permit under Chapter 245; and
50	56		(2) is a program authorized by the legislature under
51	57		Section 52-a, Article III, Texas Constitution.
52	58		(h) A contract [An agreement] between a municipality and a
53	59		landowner entered into prior to the effective date of this section,
54	60		or any amendment to this section, and that complies with this
55	61		section is validated, enforceable, and may be adjudicated subject
56	62		to the terms and conditions of this subchapter, as amended.
57	63		(i) A municipality that enters into a contract waives
58	64		immunity from suit for the purpose of adjudicating a claim for
59	65		breach of the contract.
60	66		(j) Except as provided by Subsection (k), actual damages,
61	67		specific performance, or injunctive relief may be granted in an
62	68		adjudication brought against a municipality for breach of a
63	69		contract. The total amount of money awarded in an adjudication
64	70		brought against a municipality for breach of a contract is limited
65	71		to the following:
66	72		(1) the balance due and owed by the municipality under
67	73		the contract as it may have been amended;
68	74		(2) any amount owed by the landowner as a result of the
69	75		municipality's failure to perform under the contract, including
70	76		compensation for the increased cost of infrastructure as a result
71	77		of delays or accelerations caused by the municipality;
72	78		(3) reasonable attorney's fees; and
73	79		(4) interest as allowed by law, including interest as
74	80		calculated under Chapter 2251, Government Code.
75	81		(k) Damages awarded in an adjudication brought against a
76	82		municipality for breach of a contract may not include:
77	83		(1) consequential damages, except as expressly
78	84		allowed under Subsection (j)(2); or
79	85		(2) exemplary damages.
80	86		SECTION 2. Section 212.174, Local Government Code, is
81	87		amended to read as follows:
82	88		Sec. 212.174. MUNICIPAL UTILITIES. A municipality may not
83	89		require a contract [an agreement under this subchapter] as a
84	90		condition for providing water, sewer, electricity, gas, or other
85	91		utility service from a municipally owned or municipally operated
86	92		utility that provides any of those services.
87	93		SECTION 3. This Act takes effect September 1, 2021.
88		-	______________________________ ______________________________
89		-	President of the Senate Speaker of the House
90		-	I certify that H.B. No. 1929 was passed by the House on May
91		-	13, 2021, by the following vote: Yeas 90, Nays 55, 2 present, not
92		-	voting; that the House refused to concur in Senate amendments to
93		-	H.B. No. 1929 on May 28, 2021, and requested the appointment of a
94		-	conference committee to consider the differences between the two
95		-	houses; and that the House adopted the conference committee report
96		-	on H.B. No. 1929 on May 30, 2021, by the following vote: Yeas 110,
97		-	Nays 33, 2 present, not voting.
98		-	______________________________
99		-	Chief Clerk of the House
100		-	I certify that H.B. No. 1929 was passed by the Senate, with
101		-	amendments, on May 25, 2021, by the following vote: Yeas 21, Nays
102		-	10; at the request of the House, the Senate appointed a conference
103		-	committee to consider the differences between the two houses; and
104		-	that the Senate adopted the conference committee report on H.B. No.
105		-	1929 on May 30, 2021, by the following vote: Yeas 21, Nays 10.
106		-	______________________________
107		-	Secretary of the Senate
108		-	APPROVED: __________________
109		-	Date
110		-	__________________
111		-	Governor
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