| 1 | 1 | | 89R9135 MZM-F |
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| 2 | 2 | | By: Hunter H.B. No. 3462 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the use or purchase or other acquisition of property |
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| 10 | 10 | | under the Public Property Finance Act. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 271.003(3), Local Government Code, is |
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| 13 | 13 | | amended to read as follows: |
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| 14 | 14 | | (3) "Governing body" means the board, council, |
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| 15 | 15 | | commission, agency, court, or other body or group that is |
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| 16 | 16 | | authorized by law to acquire real or personal property for each |
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| 17 | 17 | | respective governmental agency. |
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| 18 | 18 | | SECTION 2. The heading to Section 271.004, Local Government |
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| 19 | 19 | | Code, is amended to read as follows: |
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| 20 | 20 | | Sec. 271.004. AUTHORITY TO CONTRACT FOR REAL PROPERTY [AND |
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| 21 | 21 | | IMPROVEMENTS FOR SCHOOL DISTRICTS]. |
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| 22 | 22 | | SECTION 3. Sections 271.004(a), (b), (d), (e), (f), and |
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| 23 | 23 | | (g), Local Government Code, are amended to read as follows: |
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| 24 | 24 | | (a) The governing body [board of trustees] of a governmental |
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| 25 | 25 | | agency [school district] may execute, perform, and make payments |
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| 26 | 26 | | under a contract under this subchapter with a person [Act] for the |
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| 27 | 27 | | use or purchase or other acquisition of real property [or an |
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| 28 | 28 | | improvement to real property]. If the governing body [board] |
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| 29 | 29 | | proposes to enter into such a contract, the governing body [board] |
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| 30 | 30 | | shall publish notice of intent to enter into the contract not less |
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| 31 | 31 | | than 60 days before the date set to approve execution of the |
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| 32 | 32 | | contract in a newspaper with general circulation in the |
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| 33 | 33 | | jurisdiction of the governmental agency [district]. The notice |
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| 34 | 34 | | must summarize the major provisions of the proposed contract. The |
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| 35 | 35 | | notice shall estimate the construction and other costs, but the |
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| 36 | 36 | | governing body [board] shall not publish the first advertisement |
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| 37 | 37 | | for bids for construction of improvements until 60 days has expired |
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| 38 | 38 | | from the publication of the notice of intent to enter into the |
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| 39 | 39 | | contract. |
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| 40 | 40 | | (b) If, within 60 days of the date of publication of the |
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| 41 | 41 | | notice of intent required by Subsection (a), a written petition |
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| 42 | 42 | | signed by at least five percent of the registered voters of the |
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| 43 | 43 | | governmental agency [district] is filed with the governing body |
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| 44 | 44 | | [board of trustees] requesting that the governing body [board] |
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| 45 | 45 | | order a referendum on the question of whether the contract should be |
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| 46 | 46 | | approved, the governing body [board] may not approve the contract |
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| 47 | 47 | | or publish the first advertisement for bids for construction of |
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| 48 | 48 | | improvements unless the question is approved by a majority of the |
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| 49 | 49 | | votes received in a referendum ordered and held on the question. |
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| 50 | 50 | | (d) The contract is a special obligation of the governmental |
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| 51 | 51 | | agency [school district] if ad valorem taxes are not pledged to the |
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| 52 | 52 | | payment of the contract. |
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| 53 | 53 | | (e) If the contract provides that payments by the |
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| 54 | 54 | | governmental agency [school district] are to be made from any |
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| 55 | 55 | | maintenance taxes previously approved by the voters of the |
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| 56 | 56 | | governmental agency [school district] and are subject to annual |
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| 57 | 57 | | appropriation or are paid from a source other than ad valorem taxes, |
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| 58 | 58 | | the payments under the contract shall not be considered payment of |
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| 59 | 59 | | indebtedness under Section 26.04(c), Tax Code. |
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| 60 | 60 | | (f) All or part of the obligation of the governmental agency |
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| 61 | 61 | | [school district] may be evidenced by one or more negotiable |
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| 62 | 62 | | promissory notes. |
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| 63 | 63 | | (g) A lease-purchase contract entered into by the |
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| 64 | 64 | | governmental agency [district] under this section and the records |
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| 65 | 65 | | relating to its execution must be submitted to the attorney general |
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| 66 | 66 | | for examination as to their validity. |
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| 67 | 67 | | SECTION 4. Section 271.009, Local Government Code, is |
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| 68 | 68 | | amended to read as follows: |
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| 69 | 69 | | Sec. 271.009. TERM OF CONTRACT. The contract may be for any |
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| 70 | 70 | | term not to exceed 35 [25] years. |
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| 71 | 71 | | SECTION 5. The changes in law made by this Act apply only to |
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| 72 | 72 | | a contract entered into on or after the effective date of this Act. |
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| 73 | 73 | | A contract entered into before the effective date of this Act is |
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| 74 | 74 | | governed by the law in effect on the date the contract was entered |
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| 75 | 75 | | into, and the former law is continued in effect for that purpose. |
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| 76 | 76 | | SECTION 6. This Act takes effect September 1, 2025. |
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