Bill Text: TX HB2329 | 2017-2018 | 85th Legislature | Introduced


Bill Title: 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.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2017-04-27 - Left pending in committee [HB2329 Detail]

Download: Texas-2017-HB2329-Introduced.html
  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.
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