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
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   3-13  Name:  Frank Battle                              x
   3-14  Representing:  Tx Assn. of School Boards
   3-15  City:  Austin
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   3-17  Name:  Tom Leonard                               x
   3-18  Representing:  Leonard Marsh Hurt Terry & Bl
   3-19  City:  Austin
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