| 1 | 1 | | 85R3676 CAE-D |
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| 2 | 2 | | By: Huberty H.B. No. 2340 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the use by a school district of certain undesignated |
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| 8 | 8 | | funds in the district's general fund. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter A, Chapter 44, Education Code, is |
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| 11 | 11 | | amended by adding Section 44.013 to read as follows: |
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| 12 | 12 | | Sec. 44.013. USE OF GENERAL FUND. (a) A school district |
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| 13 | 13 | | must maintain a minimum balance of undesignated funds in the |
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| 14 | 14 | | general fund of the district in an amount that is not less than the |
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| 15 | 15 | | general operating expenses of the school district for a period of 90 |
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| 16 | 16 | | days. The general operating expenses for a period of 90 days must |
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| 17 | 17 | | be determined using the operating expenses incurred by the district |
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| 18 | 18 | | for the preceding 90 days. |
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| 19 | 19 | | (b) A school district may, after obtaining approval from the |
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| 20 | 20 | | board of trustees, use any undesignated funds in the general fund |
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| 21 | 21 | | that exceed the amount required to be maintained by the school |
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| 22 | 22 | | district under Subsection (a) for any authorized payment or |
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| 23 | 23 | | purchase of the district, including: |
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| 24 | 24 | | (1) payment of any outstanding debt maintained by the |
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| 25 | 25 | | district; |
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| 26 | 26 | | (2) purchase of land or school buildings for the |
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| 27 | 27 | | district; or |
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| 28 | 28 | | (3) reduction of the district's operation and |
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| 29 | 29 | | maintenance tax rate for the following tax year. |
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| 30 | 30 | | SECTION 2. This Act takes effect September 1, 2017. |
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