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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of a political subdivision of this state |
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to execute certain contracts for the use or acquisition of personal |
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property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 271.005(a), Local Government Code, is |
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amended to read as follows: |
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(a) Subject to Section 271.0055, the [The] governing body of |
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a governmental agency may execute, perform, and make payments under |
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a contract with any person for the use or the purchase or other |
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acquisition of any personal property, or the financing thereof. |
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The contract is an obligation of the governmental agency. The |
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contract may: |
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(1) be on the terms considered appropriate by the |
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governing body; |
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(2) be in the form of a lease, a lease with an option or |
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options to purchase, an installment purchase, or any other form |
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considered appropriate by the governing body including that of an |
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instrument which would be required to be approved by the attorney |
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general under Chapter 1202, Government Code, provided that |
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contracts in such form must be approved by the attorney general in |
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accordance with the terms of that chapter; |
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(3) be for a term approved by the governing body and |
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contain an option or options to renew or extend the term; and |
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(4) be made payable from a pledge of all or any part of |
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any revenues, funds, or taxes available to the governmental agency |
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for its public purposes. |
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SECTION 2. Subchapter A, Chapter 271, Local Government |
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Code, is amended by adding Section 271.0055 to read as follows: |
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Sec. 271.0055. AUTHORIZATION OF CERTAIN CONTRACTS FOR |
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PERSONAL PROPERTY; NOTICE; PETITION AND ELECTION. (a) This section |
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applies only to a contract authorized by Section 271.005 that will |
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require an expenditure by a governmental agency of $25,000 or more. |
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(b) The governing body of a governmental agency must approve |
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the execution of a contract by majority vote of the governing body |
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before the contract may be executed. |
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(c) Before the governing body of a governmental agency may |
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approve the execution of the contract, the governmental agency must |
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publish notice of the agency's intention to enter into the |
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contract. The notice must be published once a week for two |
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consecutive weeks in a newspaper with general circulation in the |
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area of the governmental agency, with the date of the first |
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publication to be before the 30th day before the date tentatively |
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set for the governing body's approval of the execution of the |
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contract. |
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(d) The notice must state: |
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(1) the time and place tentatively set for the |
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approval of the execution of the contract; |
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(2) the purpose and an estimate of the cost of the |
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contract; and |
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(3) the manner in which the amount required to be paid |
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under the contract by the agency will be paid, whether by taxes, |
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revenues, or a combination of funds. |
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(e) If, before the execution of the contract, the secretary |
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or clerk of the governmental agency receives a petition signed by at |
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least five percent of the qualified voters within the boundaries of |
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the governmental agency protesting the execution of the contract, |
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the governing body of the agency may not authorize the execution of |
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the contract unless the execution is approved at an election |
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ordered, held, and conducted in the manner provided for bond |
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elections under Chapter 1251, Government Code. |
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SECTION 3. Section 271.006(a), Local Government Code, is |
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amended to read as follows: |
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(a) In entering into the contract, a municipality must |
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comply with the requirements of Chapter 252 and a county must comply |
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with the requirements of Subchapter C, Chapter 262. However, the |
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municipality or county is not required to submit to a referendum the |
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question of entering into the contract, except as provided by |
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Section 271.0055(e). |
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SECTION 4. The changes in law made by Section 271.005(a), |
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Local Government Code, as amended by this Act, and Section |
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271.0055, Local Government Code, as added by this Act, apply only to |
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a contract authorized by Section 271.005, Local Government Code, |
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that is entered into on or after the effective date of this Act. |
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SECTION 5. This Act takes effect September 1, 2015. |