By: Huffines, Hall, Taylor of Collin S.B. No. 1122
(In the Senate - Filed February 28, 2017; March 7, 2017,
read first time and referred to Committee on Education;
April 26, 2017, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 9, Nays 1; April 26, 2017,
sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 1122 By: Huffines
A BILL TO BE ENTITLED
AN ACT
relating to abolishing certain county boards of education, boards
of county school trustees, and offices of county school
superintendent.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. (a) Each county board of education, board of
county school trustees, and office of county school superintendent
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 800,000 is
abolished effective September 1, 2017.
(b) Not later than September 1, 2017, a dissolution
committee shall be formed for each county board of education or
board of county school trustees to be abolished as provided by
Subsection (a) of this section. The dissolution committee is
responsible for all financial decisions for each county board of
education or board of county school trustees abolished by this Act,
including asset distribution and payment of all debt obligations.
(c) A dissolution committee required by this Act shall be
appointed by the comptroller and include:
(1) one financial advisor;
(2) the superintendent of the participating component
school district with the largest number of students in average
daily attendance or the superintendent's designee;
(3) one certified public accountant;
(4) one auditor who holds a license or other
professional credential; and
(5) one bond counsel who holds a license or other
professional credential.
(d) A dissolution committee created under this Act is
subject to the open meetings requirements under Chapter 551,
Government Code, and public information requirements under Chapter
552, Government Code.
(e) Members of a 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.
(f) Subject to the other requirements of this Act, the
dissolution committee shall determine the manner in which all
assets, liabilities, contracts, and services of the county board of
education or board of county school trustees abolished by this Act
are divided, transferred, or discontinued. The dissolution
committee shall create a sinking fund to deposit all money received
in the abolishment of each county board of education or board of
county school trustees for the payment of all debts of the county
board of education or board of county school trustees.
(g) The dissolution committee shall continue providing
transportation services to participating component school
districts for the 2017-2018 school year. The dissolution committee
shall maintain current operations and personnel needed to provide
the transportation services.
(h) At the end of the 2017-2018 school year all school
buses, vehicles, and bus service centers shall be transferred to
participating component school districts in proportionate shares
equal to the proportion that the membership in each district bears
to total membership in the county as of September 1, 2018, at no
cost to the districts.
(i) The dissolution committee may employ for the 2017-2018
school year one person to assist in the abolishment of the county
board of education or board of county school trustees.
(j) On September 1, 2017, the participating component
school district with the largest number of students in average
daily attendance has the right of first refusal to buy, at fair
market value, the administrative building of the county board of
education or board of county school trustees.
(k) An ad valorem tax assessed by a county board of
education or board of county school trustees shall continue to be
assessed by the county on behalf of the board for the purpose of
paying the principal of and interest on any bonds issued by the
county board of education or board of county school trustees 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 board of education or board of county school trustees the ad
valorem tax may not be assessed.
(l) In the manner provided by rule of the commissioner of
education, the county shall collect and use any delinquent taxes
imposed by or on behalf of the county board of education or board of
county school trustees.
(m) The dissolution committee shall distribute the assets
remaining after discharge of the liabilities of the county board of
education or board of county school trustees 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 September 1, 2017. The dissolution
committee shall liquidate board assets as necessary to discharge
board 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.
(n) The dissolution committee shall encourage the component
school districts to:
(1) continue sharing services received through the
county board of education or board of county school trustees; and
(2) give preference to private sector contractors to
continue services provided by the county board of education or
board of county school trustees.
(o) The chief financial officer and financial advisor for
the county board of education or board of county school trustees
shall provide assistance to the dissolution committee in abolishing
the county board of education or board of county school trustees.
(p) The Texas Education Agency shall provide assistance to a
dissolution committee in the distribution of assets, liabilities,
contracts, and services of a county board of education or board of
county school trustees abolished by this Act.
(q) Any dissolution committee created as provided by this
Act is abolished on the date all debt obligations of the county
board of education or board of county school trustees are paid in
full and all assets distributed to component school districts.
SECTION 2. Chapter 266 (S.B. 394), Acts of the 40th
Legislature, Regular Session, 1927 (Article 2700a, Vernon's Texas
Civil Statutes), is repealed.
SECTION 3. This Act takes effect September 1, 2017.
* * * * *