The bill amends the Local Government Code to update the provisions related to the acquisition of property under the Public Property Finance Act. Key changes include redefining the term "governing body" to encompass various governmental agencies rather than just school districts, allowing these bodies to execute contracts for the use or purchase of real or personal property. The bill also modifies the heading of Section 271.004 to reflect this broader authority and removes references to school districts in favor of a more inclusive term. Additionally, it establishes that contracts may be for a term not exceeding 35 years, an increase from the previous limit of 25 years.

Furthermore, the bill stipulates that if a written petition signed by at least five percent of registered voters is submitted within 60 days of a notice of intent to enter into a contract, the governing body must hold a referendum to approve the contract before proceeding. It clarifies that contracts are special obligations of the governmental agency if ad valorem taxes are not pledged for payment, and it allows for payments to be made from previously approved maintenance taxes without being classified as indebtedness. The changes will apply only to contracts entered into after the effective date of the Act, which is set for September 1, 2025.

Statutes affected:
Introduced: Local Government Code 271.003, Local Government Code 271.004, Local Government Code 271.009 (Local Government Code 271)
House Committee Report: Local Government Code 271.003, Local Government Code 271.004, Local Government Code 271.009 (Local Government Code 271)
Engrossed: Local Government Code 271.003, Local Government Code 271.004, Local Government Code 271.009 (Local Government Code 271)