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.