Bill Text: TX HB1734 | 2019-2020 | 86th Legislature | Enrolled
Bill Title: Relating to litigation involving certain defects in school district facilities and enforcement of certain duties following that litigation; authorizing a civil penalty.
Spectrum: Slight Partisan Bill (Republican 9-4)
Status: (Passed) 2019-06-14 - Effective on 9/1/19 [HB1734 Detail]
Download: Texas-2019-HB1734-Enrolled.html
H.B. No. 1734 |
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relating to litigation involving certain defects in school district | ||
facilities and enforcement of certain duties following that | ||
litigation; authorizing a civil penalty. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 44, Education Code, is amended by adding | ||
Subchapter E and adding a subchapter heading to read as follows: | ||
SUBCHAPTER E. LITIGATION INVOLVING SCHOOL DISTRICT FACILITY | ||
SECTION 2. Section 46.0111, Education Code, is transferred | ||
to Subchapter E, Chapter 44, Education Code, as added by this Act, | ||
redesignated as Section 44.151, Education Code, and amended to read | ||
as follows: | ||
Sec. 44.151 [ |
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DESIGN, CONSTRUCTION, RENOVATION, OR IMPROVEMENT OF SCHOOL | ||
DISTRICT [ |
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(1) "Instructional facility" has the meaning assigned | ||
by Section 46.001. | ||
(2) "Net proceeds" means the difference between the | ||
amount recovered by or on behalf of a school district in an action, | ||
by settlement or otherwise, and the legal fees and litigation costs | ||
incurred by the district in prosecuting the action. | ||
(3) [ |
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district's net proceeds from the recovery multiplied by a | ||
percentage determined by dividing the amount of state assistance | ||
under Subchapter A, Chapter 46, [ |
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principal of and interest on bonds issued in connection with the | ||
instructional facility that is the subject of the action by the | ||
total amount of principal and interest paid on the bonds as of the | ||
date of the judgment or settlement. | ||
(b) A school district that brings an action for recovery of | ||
damages for the defective design, construction, renovation, or | ||
improvement of a district [ |
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bonds [ |
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the action by registered or certified mail, return receipt | ||
requested, not later than the 30th day after the date the action is | ||
filed. If the school district fails to comply with this subsection, | ||
the court or an arbitrator or other adjudicating authority shall | ||
dismiss the action without prejudice. The dismissal of an action | ||
under this subsection extends the statute of limitations on the | ||
action for a period of 90 days. | ||
(b-1) The notice required under Subsection (b) must | ||
include: | ||
(1) a copy of the petition; and | ||
(2) an itemized list of the defects in the design, | ||
construction, renovation, or improvement for which the district is | ||
seeking damages under the action. | ||
(c) In an action brought under Subsection (b) involving an | ||
instructional facility financed by bonds for which the school | ||
district receives state assistance under Subchapter A, Chapter 46, | ||
the [ |
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to protect the state's share in the action. | ||
(d) A school district that brings an action under Subsection | ||
(b) shall use the net proceeds from the [ |
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(1) the [ |
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defective design, construction, renovation, or improvement of the | ||
[ |
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the repair of any ancillary damage to furniture and fixtures; | ||
(2) the replacement of [ |
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which the action is brought; | ||
(3) the reimbursement of the district for a repair or | ||
replacement made under Subdivision (1) or (2); or | ||
(4) any other purpose with written approval from the | ||
commissioner. | ||
(d-1) Section 46.008 applies to the repair. | ||
(e) A school district shall provide to the commissioner an | ||
itemized accounting of any repairs made under Subsection (d). | ||
(f) The state's share resulting from an action brought under | ||
Subsection (b) involving an instructional facility financed by | ||
bonds for which the school district receives state assistance under | ||
Subchapter A, Chapter 46, is state property. The [ |
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shall send to the comptroller any portion of the state's share not | ||
used by the [ |
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construction, renovation, or improvement of the instructional | ||
facility on which the action is brought or to replace the facility. | ||
Section 42.258 applies to the state's share under this subsection. | ||
SECTION 3. Subchapter E, Chapter 44, Education Code, as | ||
added by this Act, is amended by adding Section 44.152 to read as | ||
follows: | ||
Sec. 44.152. ATTORNEY GENERAL ENFORCEMENT OF SCHOOL | ||
DISTRICT DUTIES FOLLOWING CERTAIN ACTIONS; REPORT. (a) If the | ||
attorney general believes that a school district has violated or is | ||
violating Section 44.151(d), (e), or (f), the attorney general may, | ||
after providing at least two weeks' notice to the district, bring an | ||
action on behalf of the state to enjoin the district from violating | ||
those sections. | ||
(b) In an action brought under Subsection (a), the attorney | ||
general may request and the court may order any other appropriate | ||
relief that is in the public interest, including payment of: | ||
(1) a civil penalty in an amount not to exceed $20,000 | ||
for each violation of Section 44.151(d), (e), or (f); | ||
(2) the attorney general's reasonable costs for | ||
investigating and prosecuting the violation; or | ||
(3) if applicable, the amount of the state's share | ||
under Section 44.151(f). | ||
(c) Not later than December 1 of each year, the attorney | ||
general shall submit to the governor, the lieutenant governor, the | ||
members of the legislature, and the commissioner a report on any | ||
actions brought under this section during the preceding year. The | ||
report must include the following information for each action: | ||
(1) the filing date; | ||
(2) the cause number; | ||
(3) the school district that is the subject of the | ||
action; and | ||
(4) the court in which the action was brought. | ||
SECTION 4. Section 44.151, Education Code, as transferred, | ||
redesignated, and amended by this Act, applies only to an action | ||
brought on or after the effective date of this Act. An action | ||
brought before the effective date of this Act is governed by the law | ||
applicable to the action immediately before the effective date of | ||
this Act, and that law is continued in effect for that purpose. | ||
SECTION 5. This Act takes effect September 1, 2019. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 1734 was passed by the House on April | ||
24, 2019, by the following vote: Yeas 111, Nays 30, 2 present, not | ||
voting; that the House refused to concur in Senate amendments to | ||
H.B. No. 1734 on May 23, 2019, and requested the appointment of a | ||
conference committee to consider the differences between the two | ||
houses; and that the House adopted the conference committee report | ||
on H.B. No. 1734 on May 26, 2019, by the following vote: Yeas 123, | ||
Nays 21, 2 present, not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 1734 was passed by the Senate, with | ||
amendments, on May 16, 2019, by the following vote: Yeas 31, Nays | ||
0; at the request of the House, the Senate appointed a conference | ||
committee to consider the differences between the two houses; and | ||
that the Senate adopted the conference committee report on H.B. No. | ||
1734 on May 26, 2019, by the following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: __________________ | ||
Date | ||
__________________ | ||
Governor |