85R8792 CAE-D
By: Burkett H.B. No. 2329
A BILL TO BE ENTITLED
AN ACT
relating to elimination of the authority of certain county school
districts to impose ad valorem taxes and to a procedure under which
those districts may be abolished.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. (a) This section only applies to a county
school district in a county with a population of 2.2 million or more
and that is adjacent to a county with a population of more than
600,000.
(b) On or after January 1, 2018, a county school district
may not impose an ad valorem tax.
(c) An ad valorem tax formerly assessed by a county school
district shall continue to be assessed by the county on behalf of
the district solely for the purpose of paying the principal of and
interest on any bonds issued by the district until all bonds are
paid in full. This subsection applies only to a bond issued before
the effective date of this Act for which the tax receipts were
obligated. On payment of all bonds issued by the county school
district, the ad valorem tax may not be assessed.
(d) In the manner provided by rule of the commissioner of
education, the county shall collect any delinquent taxes imposed by
or on behalf of the county school district and distribute the
collected delinquent taxes that are not obligated to pay bonds to
the component school districts in the county in proportionate
shares equal to the proportion that the membership in each district
bears to total membership in the county as of May 1, 2017.
(e) A county school district shall be abolished in
accordance with this section unless component school districts with
75 percent or more of the student population for all school
districts in the county elect each school year to participate in
services offered by the county school district. Beginning at the
end of the 2017-2018 school year, the commissioner of education
shall determine at the end of each school year whether the county
school district achieved the required participation level during
that year. If the county school district failed to achieve that
level, a dissolution committee shall be formed as provided by
Subsection (f) of this section, and the county school district,
board of county school trustees, and office of county school
superintendent are abolished effective September 1 of the year
following the year in which the dissolution committee is formed.
(f) As soon as practicable, a dissolution committee shall be
formed for a county school district to be abolished as provided by
Subsection (e) of this section. The dissolution committee is
responsible for all financial decisions for the county school
district to be abolished, including asset distribution and payment
of all debt obligations.
(g) A dissolution committee required by Subsection (f) of
this section shall be appointed by the comptroller and include:
(1) one financial advisor;
(2) one chief financial officer employed by a school
district located in the same county as the county school district
for which the dissolution committee is formed; and
(3) one certified public accountant.
(h) The dissolution committee is subject to the open
meetings requirements under Chapter 551, Government Code, and
public information requirements under Chapter 552, Government
Code.
(i) Members of the dissolution committee may not receive
compensation but are entitled to reimbursement for actual and
necessary expenses incurred in performing the functions of the
dissolution committee.
(j) The dissolution committee shall determine the manner in
which all assets, liabilities, contracts, and services of the
county school district to be abolished are divided, transferred, or
discontinued. The dissolution committee shall create a sinking
fund to deposit all money received in the abolishment of the county
school district for the payment of all debts of the county school
district.
(k) The dissolution committee shall distribute the assets
remaining after discharge of the liabilities of the county school
district to the component school districts in the county in
proportionate shares equal to the proportion that the membership in
each district bears to total membership in the county as of May 1 of
the year the county school district is abolished. The dissolution
committee shall liquidate county school district assets as
necessary to discharge county school district liabilities and
facilitate the distribution of assets. A person authorized by the
dissolution committee shall execute any documents necessary to
complete the transfer of assets, liabilities, or contracts.
(l) The dissolution committee shall encourage the component
school districts to:
(1) continue sharing services previously received
through the county school district; and
(2) give preference to private sector contractors to
continue services previously provided by the county school
district.
(m) The chief financial officer and financial advisor for
the county school district shall provide assistance to the
dissolution committee in abolishing the county school district.
(n) The Texas Education Agency shall provide assistance to a
dissolution committee in the distribution of assets, liabilities,
contracts, and services of a county school district abolished by
this Act.
(o) Any dissolution committee created as provided by this
Act is abolished on the date all debt obligations of the county
school district are paid in full and all assets distributed to
component school districts.
(p) For purposes of Subsection (g) of this section,
"financial advisor" includes a person or business entity who acts
as a financial advisor, financial consultant, money or investment
manager, or broker.
SECTION 2. Subchapter G, Chapter 11, Education Code, is
amended by adding Section 11.305 to read as follows:
Sec. 11.305. COUNTYWIDE EQUALIZATION TAX PROHIBITED IN
CERTAIN COUNTIES. Notwithstanding former Chapter 18, as that
chapter existed on May 1, 1995, a county school district in a county
with a population of 2.2 million or more and that is adjacent to a
county with a population of more than 600,000 may not levy, assess,
or collect a countywide equalization tax.
SECTION 3. Section 45.002, Education Code, is amended to
read as follows:
Sec. 45.002. MAINTENANCE TAXES. (a) Except as provided by
Subsection (b), the [The] governing board of an independent school
district, including the city council or commission that has
jurisdiction over a municipally controlled independent school
district, the governing board of a rural high school district, and
the commissioners court of a county, on behalf of each common school
district under its jurisdiction, may levy, assess, and collect
annual ad valorem taxes for the further maintenance of public
schools in the district, subject to Section 45.003.
(b) A county school district in a county with a population
of 2.2 million or more and that is adjacent to a county with a
population of more than 600,000 may not levy, assess, or collect
annual ad valorem taxes for the maintenance of a public school.
SECTION 4. Section 11.305, Education Code, as added by this
Act, and Section 45.002, Education Code, as amended by this Act,
apply beginning with the 2018 tax year. Notwithstanding Section
11.305, Education Code, as added by this Act, or Section 45.002,
Education Code, as amended by this Act, a county school district may
collect annual ad valorem taxes levied or assessed for the 2017 or
an earlier tax year.
SECTION 5. This Act takes effect September 1, 2017.