88R3086 KBB-F
By: Goldman H.B. No. 3001
A BILL TO BE ENTITLED
AN ACT
relating to purposes for which certificates of obligation may be
authorized.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 271.043, Local Government Code, is
amended by adding Subdivision (5-a) to read as follows:
(5-a) "Designated infrastructure" means
infrastructure for a purpose described by Sections
26.012(9)(A)-(E) and (G), Tax Code.
SECTION 2. Sections 271.045(a) and (b), Local Government
Code, are amended to read as follows:
(a) The governing body of an issuer may authorize
certificates to pay a contractual obligation to be incurred for
the:
(1) construction of any designated infrastructure
[public work];
(2) purchase of materials, supplies, equipment,
machinery, buildings, land, and rights-of-way for authorized needs
and purposes; or
(3) payment of contractual obligations for
professional services, including services provided by tax
appraisers, engineers, architects, attorneys, map makers,
auditors, financial advisors, and fiscal agents.
(b) If necessary because of change orders, certificates may
be authorized in an amount not to exceed 25 percent of a contractual
obligation incurred for the construction of designated
infrastructure [public works], but certificates may be delivered
only in the amount necessary to discharge contractual obligations.
SECTION 3. Section 271.057(a), Local Government Code, is
amended to read as follows:
(a) Except as provided by Subsection (b), a contract let
under this subchapter for the construction of designated
infrastructure [public works] or the purchase of materials,
equipment, supplies, or machinery and for which competitive bidding
is required by this subchapter must be let to the lowest responsible
bidder and, as the governing body determines, may be let on a
lump-sum basis or unit price basis.
SECTION 4. Section 271.059, Local Government Code, is
amended to read as follows:
Sec. 271.059. CONTRACTOR'S BONDS. If a contract is for the
construction of designated infrastructure [public works] and is
required by this subchapter to be submitted to competitive bidding,
the successful bidder must execute a good and sufficient payment
bond and performance bond. The bonds must each be:
(1) in the full amount of the contract price; and
(2) executed, in accordance with Chapter 2253,
Government Code, with a surety company authorized to do business in
this state.
SECTION 5. The changes in law made by this Act apply only to
a certificate of obligation authorized to be issued on or after the
effective date of this Act. A certificate of obligation authorized
to be issued before the effective date of this Act is governed by
the law in effect immediately before the effective date of this Act,
and the former law is continued in effect for that purpose.
SECTION 6. This Act takes effect September 1, 2023.