Texas 2017 - 85th Regular

Texas House Bill HB2329 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	85R8792 CAE-D
2	2	By: Burkett H.B. No. 2329
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to elimination of the authority of certain county school
8	8	districts to impose ad valorem taxes and to a procedure under which
9	9	those districts may be abolished.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. (a) This section only applies to a county
12	12	school district in a county with a population of 2.2 million or more
13	13	and that is adjacent to a county with a population of more than
14	14	600,000.
15	15	(b) On or after January 1, 2018, a county school district
16	16	may not impose an ad valorem tax.
17	17	(c) An ad valorem tax formerly assessed by a county school
18	18	district shall continue to be assessed by the county on behalf of
19	19	the district solely for the purpose of paying the principal of and
20	20	interest on any bonds issued by the district until all bonds are
21	21	paid in full. This subsection applies only to a bond issued before
22	22	the effective date of this Act for which the tax receipts were
23	23	obligated. On payment of all bonds issued by the county school
24	24	district, the ad valorem tax may not be assessed.
25	25	(d) In the manner provided by rule of the commissioner of
26	26	education, the county shall collect any delinquent taxes imposed by
27	27	or on behalf of the county school district and distribute the
28	28	collected delinquent taxes that are not obligated to pay bonds to
29	29	the component school districts in the county in proportionate
30	30	shares equal to the proportion that the membership in each district
31	31	bears to total membership in the county as of May 1, 2017.
32	32	(e) A county school district shall be abolished in
33	33	accordance with this section unless component school districts with
34	34	75 percent or more of the student population for all school
35	35	districts in the county elect each school year to participate in
36	36	services offered by the county school district. Beginning at the
37	37	end of the 2017-2018 school year, the commissioner of education
38	38	shall determine at the end of each school year whether the county
39	39	school district achieved the required participation level during
40	40	that year. If the county school district failed to achieve that
41	41	level, a dissolution committee shall be formed as provided by
42	42	Subsection (f) of this section, and the county school district,
43	43	board of county school trustees, and office of county school
44	44	superintendent are abolished effective September 1 of the year
45	45	following the year in which the dissolution committee is formed.
46	46	(f) As soon as practicable, a dissolution committee shall be
47	47	formed for a county school district to be abolished as provided by
48	48	Subsection (e) of this section. The dissolution committee is
49	49	responsible for all financial decisions for the county school
50	50	district to be abolished, including asset distribution and payment
51	51	of all debt obligations.
52	52	(g) A dissolution committee required by Subsection (f) of
53	53	this section shall be appointed by the comptroller and include:
54	54	(1) one financial advisor;
55	55	(2) one chief financial officer employed by a school
56	56	district located in the same county as the county school district
57	57	for which the dissolution committee is formed; and
58	58	(3) one certified public accountant.
59	59	(h) The dissolution committee is subject to the open
60	60	meetings requirements under Chapter 551, Government Code, and
61	61	public information requirements under Chapter 552, Government
62	62	Code.
63	63	(i) Members of the dissolution committee may not receive
64	64	compensation but are entitled to reimbursement for actual and
65	65	necessary expenses incurred in performing the functions of the
66	66	dissolution committee.
67	67	(j) The dissolution committee shall determine the manner in
68	68	which all assets, liabilities, contracts, and services of the
69	69	county school district to be abolished are divided, transferred, or
70	70	discontinued. The dissolution committee shall create a sinking
71	71	fund to deposit all money received in the abolishment of the county
72	72	school district for the payment of all debts of the county school
73	73	district.
74	74	(k) The dissolution committee shall distribute the assets
75	75	remaining after discharge of the liabilities of the county school
76	76	district to the component school districts in the county in
77	77	proportionate shares equal to the proportion that the membership in
78	78	each district bears to total membership in the county as of May 1 of
79	79	the year the county school district is abolished. The dissolution
80	80	committee shall liquidate county school district assets as
81	81	necessary to discharge county school district liabilities and
82	82	facilitate the distribution of assets. A person authorized by the
83	83	dissolution committee shall execute any documents necessary to
84	84	complete the transfer of assets, liabilities, or contracts.
85	85	(l) The dissolution committee shall encourage the component
86	86	school districts to:
87	87	(1) continue sharing services previously received
88	88	through the county school district; and
89	89	(2) give preference to private sector contractors to
90	90	continue services previously provided by the county school
91	91	district.
92	92	(m) The chief financial officer and financial advisor for
93	93	the county school district shall provide assistance to the
94	94	dissolution committee in abolishing the county school district.
95	95	(n) The Texas Education Agency shall provide assistance to a
96	96	dissolution committee in the distribution of assets, liabilities,
97	97	contracts, and services of a county school district abolished by
98	98	this Act.
99	99	(o) Any dissolution committee created as provided by this
100	100	Act is abolished on the date all debt obligations of the county
101	101	school district are paid in full and all assets distributed to
102	102	component school districts.
103	103	(p) For purposes of Subsection (g) of this section,
104	104	"financial advisor" includes a person or business entity who acts
105	105	as a financial advisor, financial consultant, money or investment
106	106	manager, or broker.
107	107	SECTION 2. Subchapter G, Chapter 11, Education Code, is
108	108	amended by adding Section 11.305 to read as follows:
109	109	Sec. 11.305. COUNTYWIDE EQUALIZATION TAX PROHIBITED IN
110	110	CERTAIN COUNTIES. Notwithstanding former Chapter 18, as that
111	111	chapter existed on May 1, 1995, a county school district in a county
112	112	with a population of 2.2 million or more and that is adjacent to a
113	113	county with a population of more than 600,000 may not levy, assess,
114	114	or collect a countywide equalization tax.
115	115	SECTION 3. Section 45.002, Education Code, is amended to
116	116	read as follows:
117	117	Sec. 45.002. MAINTENANCE TAXES. (a) Except as provided by
118	118	Subsection (b), the [The] governing board of an independent school
119	119	district, including the city council or commission that has
120	120	jurisdiction over a municipally controlled independent school
121	121	district, the governing board of a rural high school district, and
122	122	the commissioners court of a county, on behalf of each common school
123	123	district under its jurisdiction, may levy, assess, and collect
124	124	annual ad valorem taxes for the further maintenance of public
125	125	schools in the district, subject to Section 45.003.
126	126	(b) A county school district in a county with a population
127	127	of 2.2 million or more and that is adjacent to a county with a
128	128	population of more than 600,000 may not levy, assess, or collect
129	129	annual ad valorem taxes for the maintenance of a public school.
130	130	SECTION 4. Section 11.305, Education Code, as added by this
131	131	Act, and Section 45.002, Education Code, as amended by this Act,
132	132	apply beginning with the 2018 tax year. Notwithstanding Section
133	133	11.305, Education Code, as added by this Act, or Section 45.002,
134	134	Education Code, as amended by this Act, a county school district may
135	135	collect annual ad valorem taxes levied or assessed for the 2017 or
136	136	an earlier tax year.
137	137	SECTION 5. This Act takes effect September 1, 2017.