bill widening the Public Property Finance Act beyond school districts

The text as introduced · 686 words

89R9135 MZM-F

By: Hunter
H.B. No. 3462

A BILL TO BE ENTITLED

AN ACT

relating to the use or purchase or other acquisition of property

under the Public Property Finance Act.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 271.003(3), Local Government Code, is

amended to read as follows:

(3) "Governing body" means the board, council,

commission, agency, court, or other body or group that is

authorized by law to acquire real or personal property for each

respective governmental agency.

SECTION 2. The heading to Section 271.004, Local Government

Code, is amended to read as follows:

Sec. 271.004. AUTHORITY TO CONTRACT FOR REAL PROPERTY [ AND

IMPROVEMENTS FOR SCHOOL DISTRICTS ].

SECTION 3. Sections 271.004(a), (b), (d), (e), (f), and

(g), Local Government Code, are amended to read as follows:

(a) The governing body [ board of trustees ] of a governmental

agency [ school district ] may execute, perform, and make payments

under a contract under this subchapter with a person [ Act ] for the

use or purchase or other acquisition of real property [ or an

improvement to real property ]. If the governing body [ board ]

proposes to enter into such a contract, the governing body [ board ]

shall publish notice of intent to enter into the contract not less

than 60 days before the date set to approve execution of the

contract in a newspaper with general circulation in the

jurisdiction of the governmental agency [ district ]. The notice

must summarize the major provisions of the proposed contract. The

notice shall estimate the construction and other costs, but the

governing body [ board ] shall not publish the first advertisement

for bids for construction of improvements until 60 days has expired

from the publication of the notice of intent to enter into the

contract.

(b) If, within 60 days of the date of publication of the

notice of intent required by Subsection (a), a written petition

signed by at least five percent of the registered voters of the

governmental agency [ district ] is filed with the governing body

[ board of trustees ] requesting that the governing body [ board ]

order a referendum on the question of whether the contract should be

approved, the governing body [ board ] may not approve the contract

or publish the first advertisement for bids for construction of

improvements unless the question is approved by a majority of the

votes received in a referendum ordered and held on the question.

(d) The contract is a special obligation of the governmental

agency [ school district ] if ad valorem taxes are not pledged to the

payment of the contract.

(e) If the contract provides that payments by the

governmental agency [ school district ] are to be made from any

maintenance taxes previously approved by the voters of the

governmental agency [ school district ] and are subject to annual

appropriation or are paid from a source other than ad valorem taxes,

the payments under the contract shall not be considered payment of

indebtedness under Section 26.04(c), Tax Code.

(f) All or part of the obligation of the governmental agency

[ school district ] may be evidenced by one or more negotiable

promissory notes.

(g) A lease-purchase contract entered into by the

governmental agency [ district ] under this section and the records

relating to its execution must be submitted to the attorney general

for examination as to their validity.

SECTION 4. Section 271.009, Local Government Code, is

amended to read as follows:

Sec. 271.009. TERM OF CONTRACT. The contract may be for any

term not to exceed 35 [ 25 ] years.

SECTION 5. The changes in law made by this Act apply only to

a contract entered into on or after the effective date of this Act.

A contract entered into before the effective date of this Act is

governed by the law in effect on the date the contract was entered

into, and the former law is continued in effect for that purpose.

SECTION 6. This Act takes effect September 1, 2025.