HB3462 - Relating to the use or purchase or other acquisition of property under the Public Property Finance Act.

  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.