HB 72

89S20041 SCL-F
		By: Bell of Montgomery
  H.B. No. 72
  A BILL TO BE ENTITLED
  AN ACT
  relating to state preemption of certain municipal and county
  regulation.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The legislature finds that:
               (1)  the state has historically been the exclusive
  regulator of many aspects of commerce, trade, elections, and
  criminal justice in this state;
               (2)  in recent years, several local jurisdictions have
  sought to establish their own regulations of commerce, trade,
  elections, and criminal justice that are different than the state's
  regulations; and
               (3)  the local regulations have led to a patchwork of
  regulations that apply inconsistently across this state.
         SECTION 2.  The purpose of this Act is to provide additional
  statewide consistency by returning sovereign regulatory authority
  powers to the state where those powers belong in accordance with the
  Texas Constitution, including Section 5, Article XI, of that
  constitution.
         SECTION 3.  This Act:
               (1)  may not be construed to prohibit a municipality or
  county from building or maintaining a road, imposing a tax, or
  carrying out any authority expressly authorized by statute;
               (2)  may not be construed to prohibit a home-rule
  municipality from providing the same services and imposing the same
  regulations that a general-law municipality is authorized to
  provide or impose;
               (3)  does not affect the authority of a municipality or
  county to conduct a public awareness campaign; and
               (4)  does not affect the authority of a municipality or
  county to repeal or amend an existing ordinance, order, or rule that
  violates the provisions of this Act for the limited purpose of
  bringing that ordinance, order, or rule in compliance with this
  Act.
         SECTION 4.  Chapter 102A, Civil Practice and Remedies Code,
  is amended by adding Subchapter A, and a heading is added to that
  subchapter to read as follows:
  SUBCHAPTER A. PRIVATE ACTION
         SECTION 5.  Section 102A.001, Civil Practice and Remedies
  Code, is transferred to Subchapter A, Chapter 102A, Civil Practice
  and Remedies Code, as added by this Act, and amended to read as
  follows:
         Sec. 102A.001.  DEFINITION.  In this subchapter [chapter],
  "person" means an individual, corporation, business trust, estate,
  trust, partnership, limited liability company, association, joint
  venture, agency or instrumentality, public corporation, any legal
  or commercial entity, or protected or registered series of a
  for-profit entity.
         SECTION 6.  Section 102A.0015, Civil Practice and Remedies
  Code, as added by S.B. 1008, Acts of the 89th Legislature, Regular
  Session, 2025, as effective September 1, 2025, and Section
  102A.002, Civil Practice and Remedies Code, as amended by S.B.
  1008, Acts of the 89th Legislature, Regular Session, 2025, as
  effective September 1, 2025, are transferred to Subchapter A,
  Chapter 102A, Civil Practice and Remedies Code, as added by this
  Act, reenacted, and amended to read as follows:
         Sec. 102A.0015.  APPLICABILITY OF CHAPTER.  In this chapter,
  a reference to a municipality or county includes a public health
  district created by one or more municipalities or counties.
         Sec. 102A.002.  LIABILITY FOR CERTAIN REGULATION.  (a)  Any
  person who has sustained an injury in fact, actual or threatened,
  from a municipal or county ordinance, order, or rule adopted or
  enforced by a municipality or county in violation of any of the
  following provisions or a trade association representing the person
  has standing to bring and may bring an action against the
  municipality or county:
               (1)  Section 1.004, Agriculture Code;
               (2)  Section 1.109, Business & Commerce Code;
               (3)  Section 1.023, Election Code;
               (4)  Section 1.004, Finance Code;
               (5)  Section 1.007 or [(3-a)]  Chapter 437, 437A, or
  438, Health and Safety Code;
               (6) [(4)]  Section 30.005, Insurance Code;
               (7) [(5)]  Section 1.005, Labor Code;
               (8) [(6)]  Section 229.901, Local Government Code;
               (9) [(7)]  Section 1.003, Natural Resources Code;
               (10) [(8)]  Section 1.004, Occupations Code;
               (11)  Section 1.08(b), Penal Code; or
               (12) [(9)]  Section 1.004, Property Code.
         (b)  A person who has sustained an actual or threatened
  injury in fact from a municipal or county ordinance, order, or rule
  adopted or enforced in violation of Section 40.001 or 250A.001,
  Local Government Code, or a nonprofit organization or trade
  association representing the person, has standing to bring an
  action against the municipality or county.
         SECTION 7.  Sections 102A.003, 102A.004, 102A.005, and
  102A.006, Civil Practice and Remedies Code, are transferred to
  Subchapter A, Chapter 102A, Civil Practice and Remedies Code, as
  added by this Act, and amended to read as follows:
         Sec. 102A.003.  REMEDIES.  (a)  A claimant is entitled to
  recover in an action brought under this subchapter [chapter]:
               (1)  declaratory and injunctive relief; and
               (2)  costs and reasonable attorney's fees.
         (b)  A municipality or county is entitled to recover in an
  action brought under this subchapter [chapter] costs and reasonable
  attorney's fees if the court finds the action to be frivolous.
         Sec. 102A.004.  IMMUNITY WAIVER.  Governmental immunity of a
  municipality or county to suit and from liability is waived to the
  extent of liability created by this subchapter [chapter].
         Sec. 102A.005.  NOTICE.  A municipality or county is
  entitled to receive notice of a claim against it under this
  subchapter [chapter] not later than three months before the date a
  claimant files an action under this subchapter [chapter].  The
  notice must reasonably describe:
               (1)  the injury claimed; and
               (2)  the ordinance, order, or rule that is the cause of
  the injury.
         Sec. 102A.006.  VENUE.  (a)  Notwithstanding any other law,
  including Chapter 15, a claimant may bring an action under this
  subchapter [chapter] in:
               (1)  the county in which all or a substantial part of
  the events giving rise to the cause of action occurred; or
               (2)  if the defendant is a municipality, a county in
  which the municipality is located.
         (b)  If the action is brought in a venue authorized by this
  section, the action may not be transferred to a different venue
  without the written consent of all parties.
         SECTION 8.  Chapter 102A, Civil Practice and Remedies Code,
  is amended by adding Subchapter B to read as follows:
  SUBCHAPTER B. ATTORNEY GENERAL ENFORCEMENT
         Sec. 102A.051.  DEFINITION.  In this subchapter,
  "no-new-revenue tax rate" means the no-new-revenue tax rate
  calculated under Chapter 26, Tax Code.
         Sec. 102A.052.  ATTORNEY GENERAL INVESTIGATION AND ACTION.
  (a)  The attorney general may investigate an alleged violation of a
  law described by Section 102A.002 by a municipality or county.
         (b)  The attorney general may bring an action for injunctive,
  declaratory, or mandamus relief against a municipality or county if
  the attorney general determines after conducting an investigation
  under Subsection (a) that the municipality or county violated a law
  described by Section 102A.002.
         (c)  Notwithstanding any other law, including Chapter 15,
  the attorney general may bring an action under this section in:
               (1)  the county in which all or a substantial part of
  the events giving rise to the cause of action occurred; or
               (2)  if the defendant is a municipality, a county in
  which the municipality is located.
         Sec. 102A.053.  EFFECTS OF PENDENCY OF ACTION.  (a)  During
  the pendency of an action brought under Section 102A.052, with
  respect to a municipality or county defending the action:
               (1)  the comptroller shall withhold payment of any
  money due to the municipality or county under Section 321.502 or
  323.502, Tax Code;
               (2)  the municipality or county may not adopt an ad
  valorem tax rate that exceeds the municipality's or county's
  no-new-revenue tax rate;
               (3)  the municipality or county may not adopt a budget
  that exceeds the total expenditures of the budget under which the
  municipality or county is operating at the time the attorney
  general brings the action under Section 102A.052; and
               (4)  the municipality or county may not receive state
  grant funds and any pending application for such funds shall be
  denied.
         (b)  Section 109.004(a)(1), Local Government Code, does not
  apply to a municipality if the comptroller is withholding payments
  from the municipality in accordance with Subsection (a)(1) of this
  section.
         (c)  Notwithstanding Section 120.002, Local Government Code,
  a county may not hold an election under that section if the
  comptroller is withholding payments from the county in accordance
  with Subsection (a)(1) of this section.
         (d)  Notwithstanding Subsection (a)(4), a municipality or
  county may receive state grant funds for grants provided for the
  purpose of:
               (1)  responding to a disaster declared under Chapter
  418, Government Code, if:
                     (A)  for a municipality, the municipality is
  located in a county or a county adjacent to a county that includes
  an area specified in the disaster declaration; and
                     (B)  for a county, the county or a county adjacent
  to the county includes an area specified in the disaster
  declaration; or
               (2)  providing financial assistance to a municipal
  police department, sheriff's department, constable's office,
  district or county attorney's office, fire department, municipal or
  county jail, or other municipal or county department providing law
  enforcement or emergency response services.
         Sec. 102A.054.  ACTION PROCEDURES.  (a) A municipality or
  county defending an action brought under Section 102A.052 has the
  burden of proof to establish that the municipality or county
  complied with the law that is the subject of the action.
         (b)  The trial court shall set an action brought under
  Section 102A.052:
               (1)  for an initial hearing not later than the 30th day
  after the date the municipality or county defending the action was
  served with process for the action; and
               (2)  for a trial on the merits not later than the 90th
  day after the date the municipality or county defending the action
  was served with process for the action, unless:
                     (A)  the municipality or county and the attorney
  general agree to a later date; and
                     (B)  the court determines that holding trial at a
  later date is in the interest of justice.
         Sec. 102A.055.  APPELLATE JURISDICTION; EXPEDITED APPEAL.  
  (a)  The Fifteenth Court of Appeals has exclusive intermediate
  appellate jurisdiction of an action brought under Section 102A.052.
  A party must appeal the action not later than the 30th day after the
  date the judgment is signed.
         (b)  An appellate court shall expedite an appeal of an action
  brought under Section 102A.052.
         Sec. 102A.056.  RESOLUTION OF ACTION IN FAVOR OF ATTORNEY
  GENERAL.  (a)  If the attorney general prevails in an action brought
  under Section 102A.052:
               (1)  the municipality or county defending the action
  may not, during the five fiscal years following the year in which
  the judgment becomes final:
                     (A)  adopt an ad valorem tax rate that exceeds the
  municipality's or county's no-new-revenue tax rate; or
                     (B)  receive state grant funds; and
               (2)  the court issuing the final judgment resolving the
  action shall provide in the judgment that the state is entitled to
  recover from the municipality or county defending the action a
  penalty equal to the balance of the suspense account maintained for
  the municipality or county under Section 321.501 or 323.501, Tax
  Code, as applicable, that exists on the date the judgment is signed,
  less the amount the comptroller may retain under Subsection (b) of
  this section.
         (b)  Except as provided by this subsection, the comptroller
  shall, on receipt of a copy of the final judgment in an action
  brought under Section 102A.052, deposit the balance of the suspense
  account maintained for the municipality or county defending the
  action under Section 321.501 or 323.501, Tax Code, as applicable,
  as of the date the judgment is signed to the credit of the general
  revenue fund.  The comptroller may retain in the suspense account
  maintained for the municipality or county an amount not to exceed
  five percent of the balance of the suspense account as of the date
  the judgment is signed for the purpose of making refunds for
  overpayments to the suspense account or redeeming dishonored checks
  and drafts deposited to the credit of the suspense account.  Not
  later than the fourth anniversary of the date the comptroller
  retains an amount in a suspense account under this subsection, the
  comptroller shall deposit the balance of that retained amount, if
  any, to the credit of the general revenue fund.
         (c)  Section 109.004(a)(1), Local Government Code, does not
  apply to a municipality subject to a final judgment in an action
  brought under Section 102A.052 for six state fiscal years following
  the date the judgment is signed.
         (d)  Notwithstanding Section 120.002, Local Government Code,
  a county may not hold an election under that section if the county
  has been the subject of an adverse final judgment in an action
  brought under Section 102A.052 before the sixth anniversary of the
  date the judgment is signed.
         Sec. 102A.057.  RESOLUTION OF ACTION IN FAVOR OF
  MUNICIPALITY OR COUNTY.  If a municipality or county prevails in an
  action brought under Section 102A.052, the comptroller shall
  immediately send to the municipality or county any balance of the
  suspense account maintained for the municipality or county under
  Section 321.501 or 323.501, Tax Code, as applicable, being held
  under Section 102A.053(a)(1) as of the date the final judgment
  resolving the action is signed, including any interest that accrued
  on the balance of the suspense account during the period the balance
  was withheld.
         SECTION 9.  Chapter 1, Election Code, is amended by adding
  Section 1.023 to read as follows:
         Sec. 1.023.  PREEMPTION.  Unless expressly authorized by
  another statute, a municipality or county may not adopt, enforce,
  or maintain an ordinance, order, or rule regulating conduct in a
  field of regulation that is occupied by a provision of this code.
  An ordinance, order, or rule that violates this section is void,
  unenforceable, and inconsistent with this code.
         SECTION 10.  Chapter 1, Health and Safety Code, is amended by
  adding Section 1.007 to read as follows:
         Sec. 1.007.  PREEMPTION.  Unless expressly authorized by
  another statute, a municipality or county may not adopt, enforce,
  or maintain an ordinance, order, or rule regulating conduct in a
  field of regulation that is occupied by a provision of this code.
  An ordinance, order, or rule that violates this section is void,
  unenforceable, and inconsistent with this code.
         SECTION 11.  Subtitle C, Title 2, Local Government Code, is
  amended by adding Chapter 40 to read as follows:
  CHAPTER 40.  PREEMPTION
         Sec. 40.001.  PREEMPTION.  Unless expressly authorized by
  another statute, a municipality may not adopt, enforce, or maintain
  an ordinance or rule regulating conduct in a field of regulation
  that is occupied by a provision of this subtitle. An ordinance or
  rule that violates this section is void, unenforceable, and
  inconsistent with this subtitle.
         SECTION 12.  Subtitle C, Title 7, Local Government Code, is
  amended by adding Chapter 250A to read as follows:
  CHAPTER 250A.  PREEMPTION
         Sec. 250A.001.  PREEMPTION.  Unless expressly authorized by
  another statute, a municipality or county may not adopt, enforce,
  or maintain an ordinance, order, or rule regulating conduct in a
  field of regulation that is occupied by a provision of this title.
  An ordinance, order, or rule that violates this section is void,
  unenforceable, and inconsistent with this title.
         SECTION 13.  Section 1.08, Penal Code, is amended to read as
  follows:
         Sec. 1.08.  PREEMPTION.  (a) No governmental subdivision or
  agency may enact or enforce a law that makes any conduct covered by
  this code an offense subject to a criminal penalty. This subsection
  [section] shall apply only as long as the law governing the conduct
  proscribed by this code is legally enforceable.
         (b)  Unless expressly authorized by another statute, a
  municipality or county may not adopt, enforce, or maintain an
  ordinance, order, or rule regulating conduct that is otherwise
  prohibited by a provision of this code.  An ordinance, order, or
  rule that violates this subsection is void, unenforceable, and
  inconsistent with this code.
         SECTION 14.  Subchapter B, Chapter 102A, Civil Practice and
  Remedies Code, as added by this Act, applies only to a cause of
  action that accrues on or after the effective date of this Act.
         SECTION 15.  Every provision, section, subsection,
  sentence, clause, phrase, or word in this Act, and every
  application of the provisions in this Act to every person, group of
  persons, or circumstances, are severable from each other.  If any
  application of any provision in this Act to any person, group of
  persons, or circumstances is found by a court to be invalid,
  preempted, or unconstitutional, for any reason whatsoever, then the
  remaining applications of the Act to all other persons and
  circumstances shall be severed and preserved and shall remain in
  effect.  All constitutionally valid applications of the provisions
  in this Act shall be severed from any applications that a court
  finds to be invalid, preempted, or unconstitutional, because it is
  the legislature's intent and priority that every single valid
  application of every statutory provision be allowed to stand alone.
  The legislature further declares that it would have enacted this
  Act, and each provision, section, subsection, sentence, clause,
  phrase, or word, and all constitutional applications of the
  provisions of this Act, irrespective of the fact that any
  provision, section, subsection, sentence, clause, phrase, or word,
  or applications of this chapter were to be declared invalid,
  preempted, or unconstitutional.
         SECTION 16.  The Texas Supreme Court has exclusive and
  original jurisdiction over a challenge to the constitutionality of
  this Act or any part of this Act and may issue injunctive or
  declaratory relief in connection with the challenge.
         SECTION 17.  This Act takes effect on the 91st day after the
  last day of the legislative session.