HB 3462

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
(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
(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
(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
(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
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.