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A BILL TO BE ENTITLED
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AN ACT
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relating to the use or purchase or other acquisition of property |
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under the Public Property Finance Act. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 271.003(3), Local Government Code, is |
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amended to read as follows: |
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(3) "Governing body" means the board, council, |
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commission, agency, court, or other body or group that is |
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authorized by law to acquire real or personal property for each |
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respective governmental agency. |
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SECTION 2. The heading to Section 271.004, Local Government |
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Code, is amended to read as follows: |
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Sec. 271.004. AUTHORITY TO CONTRACT FOR REAL PROPERTY [AND |
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IMPROVEMENTS FOR SCHOOL DISTRICTS]. |
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SECTION 3. Sections 271.004(a), (b), (d), (e), (f), and |
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(g), Local Government Code, are amended to read as follows: |
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(a) The governing body [board of trustees] of a governmental |
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agency [school district] may execute, perform, and make payments |
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under a contract under this subchapter with a person [Act] for the |
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use or purchase or other acquisition of real property [or an |
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improvement to real property]. If the governing body [board] |
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proposes to enter into such a contract, the governing body [board] |
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shall publish notice of intent to enter into the contract not less |
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than 60 days before the date set to approve execution of the |
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contract in a newspaper with general circulation in the |
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jurisdiction of the governmental agency [district]. The notice |
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must summarize the major provisions of the proposed contract. The |
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notice shall estimate the construction and other costs, but the |
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governing body [board] shall not publish the first advertisement |
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for bids for construction of improvements until 60 days has expired |
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from the publication of the notice of intent to enter into the |
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contract. |
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(b) If, within 60 days of the date of publication of the |
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notice of intent required by Subsection (a), a written petition |
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signed by at least five percent of the registered voters of the |
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governmental agency [district] is filed with the governing body |
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[board of trustees] requesting that the governing body [board] |
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order a referendum on the question of whether the contract should be |
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approved, the governing body [board] may not approve the contract |
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or publish the first advertisement for bids for construction of |
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improvements unless the question is approved by a majority of the |
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votes received in a referendum ordered and held on the question. |
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(d) The contract is a special obligation of the governmental |
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agency [school district] if ad valorem taxes are not pledged to the |
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payment of the contract. |
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(e) If the contract provides that payments by the |
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governmental agency [school district] are to be made from any |
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maintenance taxes previously approved by the voters of the |
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governmental agency [school district] and are subject to annual |
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appropriation or are paid from a source other than ad valorem taxes, |
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the payments under the contract shall not be considered payment of |
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indebtedness under Section 26.04(c), Tax Code. |
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(f) All or part of the obligation of the governmental agency |
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[school district] may be evidenced by one or more negotiable |
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promissory notes. |
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(g) A lease-purchase contract entered into by the |
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governmental agency [district] under this section and the records |
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relating to its execution must be submitted to the attorney general |
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for examination as to their validity. |
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SECTION 4. Section 271.009, Local Government Code, is |
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amended to read as follows: |
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Sec. 271.009. TERM OF CONTRACT. The contract may be for any |
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term not to exceed 35 [25] years. |
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SECTION 5. The changes in law made by this Act apply only to |
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a contract entered into on or after the effective date of this Act. |
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A contract entered into before the effective date of this Act is |
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governed by the law in effect on the date the contract was entered |
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into, and the former law is continued in effect for that purpose. |
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SECTION 6. This Act takes effect September 1, 2025. |