By:  Montford                                          S.B. No. 826
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to authorizing school districts to acquire, use and
    1-2  purchase real property, and declaring an emergency.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 271.002 of the Local Government Code is
    1-5  amended to read as follows:
    1-6        Sec. 271.002.  PURPOSE.  (a)  The legislature finds that the
    1-7  purchase or other acquisition or the use of <personal> property by
    1-8  governmental agencies and the financing of those activities are
    1-9  necessary to the efficient and economic operation of government.
   1-10        (b)  This subchapter promotes a public purpose by furnishing
   1-11  governmental agencies with a feasible means to purchase or
   1-12  otherwise acquire, use and finance public <personal> property.
   1-13        SECTION 2.  Amends Section 271.003, Local Government Code, by
   1-14  adding Subdivisions (1) and (11) to read as follows:
   1-15              (10)  "Improvement" means a permanent building,
   1-16  structure, fixture, or fence, that is erected on or affixed to
   1-17  land, but does not include a transportable building or structure
   1-18  whether or not it is affixed to land.
   1-19              (11)  "Real property" means land, improvement, or an
   1-20  estate or interest in real property, other than a mortgage or deed
   1-21  of trust creating a lien on property or an interest securing
   1-22  payment or performance of an obligation in real property.
   1-23        SECTION 3.  Section 271.004, Local Government Code, is
    2-1  amended to read as follows:
    2-2        Sec. 271.004.  REAL PROPERTY AND IMPROVEMENTS <NOT COVERED>
    2-3  FOR SCHOOL DISTRICTS.  <This subchapter does not apply to a
    2-4  contract solely for the construction of improvements to real
    2-5  property.>
    2-6        (a)  The board of trustees of a school district may execute,
    2-7  perform and make payments under a contract under this Act for the
    2-8  use or purchase or other acquisition of real property or an
    2-9  improvement to real property.  If the board proposes to enter into
   2-10  such a contract, the board shall publish notice of intent to enter
   2-11  into the contract not less than 60 days before the date set to
   2-12  approve execution of the contract in a newspaper with general
   2-13  circulation in the district.  The notice must summarize the major
   2-14  provisions of the proposed contract.
   2-15        (b)  If, by the time set for approval of execution of the
   2-16  contract, a written petition signed by at least five (5) percent of
   2-17  the registered voters of the district is filed with the board of
   2-18  trustees requesting that the board order a referendum on the
   2-19  question of whether the contract should be executed, the board may
   2-20  not execute the contract unless the question is approved by a
   2-21  majority of the votes received in a referendum ordered and held on
   2-22  the question.
   2-23        (c)  Except as otherwise provided by this section, the
   2-24  referendum shall be held in accordance with the applicable
   2-25  provisions of the Election Code.  The requirement that an election
    3-1  must be held on a uniform election date as prescribed by the
    3-2  Election Code does not apply to an election held under this
    3-3  section.
    3-4        (d)  The contract is a special obligation of the school
    3-5  district if ad valorem taxes are not pledged to the payment of the
    3-6  contract.
    3-7        (e)  If the contract provides that payments by the school
    3-8  district are to be made from maintenance taxes previously approved
    3-9  by the voters of the school district and are subject to annual
   3-10  appropriation or are paid from a source other than ad valorem
   3-11  taxes, the payments under the contract shall not be considered
   3-12  payment of indebtedness under Section 26.04(c), Tax Code.
   3-13        (f)  All or part of the obligation of the school district may
   3-14  be evidenced by one or more negotiable promissory notes.
   3-15        SECTION 4.  The importance of this legislation and the
   3-16  crowded condition of the calendars in both houses create an
   3-17  emergency and an imperative public necessity that the
   3-18  constitutional rule requiring bills to be read on three several
   3-19  days in each house be suspended, and this rule is hereby suspended,
   3-20  and that this Act take effect and be in force from and after its
   3-21  passage, and it is so enacted.