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A BILL TO BE ENTITLED
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AN ACT
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relating to purposes for which certificates of obligation may be |
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authorized. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 271.043, Local Government Code, is |
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amended by adding Subdivision (5-a) to read as follows: |
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(5-a) "Designated infrastructure" means |
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infrastructure for a purpose described by Sections |
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26.012(9)(A)-(E) and (G), Tax Code. |
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SECTION 2. Sections 271.045(a) and (b), Local Government |
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Code, are amended to read as follows: |
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(a) The governing body of an issuer may authorize |
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certificates to pay a contractual obligation to be incurred for |
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the: |
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(1) construction of any designated infrastructure |
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[public work]; |
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(2) purchase of materials, supplies, equipment, |
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machinery, buildings, land, and rights-of-way for authorized needs |
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and purposes; or |
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(3) payment of contractual obligations for |
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professional services, including services provided by tax |
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appraisers, engineers, architects, attorneys, map makers, |
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auditors, financial advisors, and fiscal agents. |
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(b) If necessary because of change orders, certificates may |
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be authorized in an amount not to exceed 25 percent of a contractual |
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obligation incurred for the construction of designated |
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infrastructure [public works], but certificates may be delivered |
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only in the amount necessary to discharge contractual obligations. |
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SECTION 3. Section 271.057(a), Local Government Code, is |
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amended to read as follows: |
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(a) Except as provided by Subsection (b), a contract let |
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under this subchapter for the construction of designated |
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infrastructure [public works] or the purchase of materials, |
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equipment, supplies, or machinery and for which competitive bidding |
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is required by this subchapter must be let to the lowest responsible |
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bidder and, as the governing body determines, may be let on a |
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lump-sum basis or unit price basis. |
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SECTION 4. Section 271.059, Local Government Code, is |
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amended to read as follows: |
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Sec. 271.059. CONTRACTOR'S BONDS. If a contract is for the |
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construction of designated infrastructure [public works] and is |
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required by this subchapter to be submitted to competitive bidding, |
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the successful bidder must execute a good and sufficient payment |
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bond and performance bond. The bonds must each be: |
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(1) in the full amount of the contract price; and |
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(2) executed, in accordance with Chapter 2253, |
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Government Code, with a surety company authorized to do business in |
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this state. |
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SECTION 5. The changes in law made by this Act apply only to |
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a certificate of obligation authorized to be issued on or after the |
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effective date of this Act. A certificate of obligation authorized |
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to be issued before the effective date of this Act is governed by |
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the law in effect immediately before the effective date of this Act, |
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and the former law is continued in effect for that purpose. |
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SECTION 6. This Act takes effect September 1, 2023. |