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.