1-1 By: Montford S.B. No. 826
1-2 (In the Senate - Filed March 11, 1993; March 15, 1993, read
1-3 first time and referred to Committee on Education; April 15, 1993,
1-4 reported adversely, with favorable Committee Substitute by the
1-5 following vote: Yeas 11, Nays 0; April 15, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Ratliff x
1-9 Haley x
1-10 Barrientos x
1-11 Bivins x
1-12 Harris of Tarrant x
1-13 Luna x
1-14 Montford x
1-15 Shapiro x
1-16 Sibley x
1-17 Turner x
1-18 Zaffirini x
1-19 COMMITTEE SUBSTITUTE FOR S.B. No. 826 By: Montford
1-20 A BILL TO BE ENTITLED
1-21 AN ACT
1-22 relating to authorizing school districts to acquire, use, and
1-23 purchase real property.
1-24 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-25 SECTION 1. Section 271.002, Local Government Code, is
1-26 amended to read as follows:
1-27 Sec. 271.002. PURPOSE. (a) The legislature finds that the
1-28 purchase or other acquisition or the use of <personal> property by
1-29 governmental agencies and the financing of those activities are
1-30 necessary to the efficient and economic operation of government.
1-31 (b) This subchapter promotes a public purpose by furnishing
1-32 governmental agencies with a feasible means to purchase or
1-33 otherwise acquire, use, and finance public <personal> property.
1-34 SECTION 2. Section 271.003, Local Government Code, is
1-35 amended by amending Subdivision (2) and by adding Subdivisions (10)
1-36 and (11) to read as follows:
1-37 (2) "Contract" means an agreement entered into under
1-38 this subchapter but does not mean a contract solely for the
1-39 construction of improvements to real property.
1-40 (10) "Improvement" means a permanent building,
1-41 structure, fixture, or fence that is erected on or affixed to land
1-42 but does not include a transportable building or structure whether
1-43 or not it is affixed to land.
1-44 (11) "Real property" means land, improvement, or an
1-45 estate or interest in real property, other than a mortgage or deed
1-46 of trust creating a lien on property or an interest securing
1-47 payment or performance of an obligation in real property.
1-48 SECTION 3. Section 271.004, Local Government Code, is
1-49 amended to read as follows:
1-50 Sec. 271.004. REAL PROPERTY AND IMPROVEMENTS FOR SCHOOL
1-51 DISTRICTS <NOT COVERED>. (a) The board of trustees of a school
1-52 district may execute, perform, and make payments under a contract
1-53 under this Act for the use or purchase or other acquisition of real
1-54 property or an improvement to real property. If the board proposes
1-55 to enter into such a contract, the board shall publish notice of
1-56 intent to enter into the contract not less than 60 days before the
1-57 date set to approve execution of the contract in a newspaper with
1-58 general circulation in the district. The notice must summarize the
1-59 major provisions of the proposed contract. The notice shall
1-60 estimate the construction and other costs, but the board shall not
1-61 publish the first advertisement for bids for construction of
1-62 improvements until 60 days has expired from the publication of the
1-63 notice of intent to enter into the contract.
1-64 (b) If, within 60 days of the date of publication of the
1-65 notice of intent required by Subsection (a), a written petition
1-66 signed by at least five percent of the registered voters of the
1-67 district is filed with the board of trustees requesting that the
1-68 board order a referendum on the question of whether the contract
2-1 should be approved, the board may not approve the contract or
2-2 publish the first advertisement for bids for construction of
2-3 improvements unless the question is approved by a majority of the
2-4 votes received in a referendum ordered and held on the question.
2-5 (c) Except as otherwise provided by this section, the
2-6 referendum shall be held in accordance with the applicable
2-7 provisions of the Election Code. The requirement that an election
2-8 must be held on a uniform election date as prescribed by the
2-9 Election Code does not apply to an election held under this
2-10 section.
2-11 (d) The contract is a special obligation of the school
2-12 district if ad valorem taxes are not pledged to the payment of the
2-13 contract.
2-14 (e) If the contract provides that payments by the school
2-15 district are to be made from maintenance taxes previously approved
2-16 by the voters of the school district and are subject to annual
2-17 appropriation or are paid from a source other than ad valorem
2-18 taxes, the payments under the contract shall not be considered
2-19 payment of indebtedness under Section 26.04(c), Tax Code.
2-20 (f) All or part of the obligation of the school district may
2-21 be evidenced by one or more negotiable promissory notes.
2-22 (g) A lease-purchase contract entered into by the district
2-23 under this section and the records relating to its execution must
2-24 be submitted to the attorney general for examination as to their
2-25 validity.
2-26 (h) If the attorney general finds that the contract has been
2-27 authorized in accordance with the law, the attorney general shall
2-28 approve them, and the comptroller of public accounts shall register
2-29 the contract.
2-30 (i) Following approval and registration, the contract is
2-31 incontestable and is a binding obligation according to its terms.
2-32 <This subchapter does not apply to a contract solely for the
2-33 construction of improvements to real property.>
2-34 SECTION 4. Subsection (c), Section 20.48, Education Code, is
2-35 amended to read as follows:
2-36 (c) Local school funds from district taxes, tuition fees of
2-37 pupils not entitled to free tuition and other local sources may be
2-38 used for the purposes enumerated for state and county funds and for
2-39 purchasing appliances and supplies, for the payment of insurance
2-40 premiums, janitors and other employees, for buying school sites,
2-41 buying, building and repairing and renting school houses, including
2-42 acquisition of school houses and sites by leasing same through
2-43 annual payments with an ultimate option to purchase, and for other
2-44 purposes necessary in the conduct of the public schools to be
2-45 determined by the board of trustees, the accounts and vouchers for
2-46 county districts to be approved by the county superintendent;
2-47 provided, that when the state available school fund in any city or
2-48 district is sufficient to maintain the schools thereof in any year
2-49 for at least eight months, and leave a surplus, such surplus may be
2-50 expended for the purposes mentioned herein.
2-51 SECTION 5. Subsection (d), Section 4.041, Public Facility
2-52 Corporation Act (Article 717s, Vernon's Texas Civil Statutes), is
2-53 repealed.
2-54 SECTION 6. The importance of this legislation and the
2-55 crowded condition of the calendars in both houses create an
2-56 emergency and an imperative public necessity that the
2-57 constitutional rule requiring bills to be read on three several
2-58 days in each house be suspended, and this rule is hereby suspended,
2-59 and that this Act take effect and be in force from and after its
2-60 passage, and it is so enacted.
2-61 * * * * *
2-62 Austin,
2-63 Texas
2-64 April 15, 1993
2-65 Hon. Bob Bullock
2-66 President of the Senate
2-67 Sir:
2-68 We, your Committee on Education to which was referred S.B. No. 826,
2-69 have had the same under consideration, and I am instructed to
2-70 report it back to the Senate with the recommendation that it do not
3-1 pass, but that the Committee Substitute adopted in lieu thereof do
3-2 pass and be printed.
3-3 Ratliff,
3-4 Chairman
3-5 * * * * *
3-6 WITNESSES
3-7 FOR AGAINST ON
3-8 ___________________________________________________________________
3-9 Name: Nicholas Deluca x
3-10 Representing: Self
3-11 City: San Antonio
3-12 -------------------------------------------------------------------
3-13 Name: Frank Battle x
3-14 Representing: Tx Assn. of School Boards
3-15 City: Austin
3-16 -------------------------------------------------------------------
3-17 Name: Tom Leonard x
3-18 Representing: Leonard Marsh Hurt Terry & Bl
3-19 City: Austin
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