Bill Text: TX SB1907 | 2019-2020 | 86th Legislature | Introduced


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: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2019-03-19 - Referred to Education [SB1907 Detail]

Download: Texas-2019-SB1907-Introduced.html
 
 
  By: Lucio S.B. No. 1907
 
 
 
   
 
 
A BILL TO BE ENTITLED
 
AN ACT
  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  [46.0111]. ACTIONS BROUGHT FOR DEFECTIVE
  DESIGN, CONSTRUCTION, RENOVATION, OR IMPROVEMENT OF SCHOOL
  DISTRICT [INSTRUCTIONAL] FACILITY. (a)  In this section:
               (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) [(2)]  "State's share" means an amount equal to the
  district's net proceeds from the recovery multiplied by a
  percentage determined by dividing the amount of state assistance
  under Subchapter A, Chapter 46, [this subchapter] used to pay the
  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 [an instructional] facility financed by
  bonds [for which the district receives state assistance under this
  subchapter] shall provide the commissioner with written notice of
  the action, including a copy of the petition, by registered or
  certified mail, return receipt requested, not later than the 10th
  day after the date the action is filed.
         (c)  The commissioner may join in the action on behalf of the
  state [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 [an] action [brought by the
  district for the defective design, construction, renovation, or
  improvement of an instructional facility financed by bonds for
  which the district receives state assistance under this subchapter]
  to repair the defective design, construction, renovation, or
  improvement of the [instructional] facility on which the action is
  brought or to replace the facility. 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 [school] district
  shall send to the comptroller any portion of the state's share not
  used by the [school] district to repair the defective design,
  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
  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 $5,000
  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.
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