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A BILL TO BE ENTITLED
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AN ACT
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relating to the use by a school district of certain undesignated |
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funds in the district's general fund. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 44, Education Code, is |
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amended by adding Section 44.013 to read as follows: |
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Sec. 44.013. USE OF GENERAL FUND. (a) A school district |
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must maintain a minimum balance of undesignated funds in the |
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general fund of the district in an amount that is not less than the |
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general operating expenses of the school district for a period of 90 |
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days. The general operating expenses for a period of 90 days must |
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be determined using the operating expenses incurred by the district |
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for the preceding 90 days. |
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(b) A school district may, after obtaining approval from the |
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board of trustees, use any undesignated funds in the general fund |
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that exceed the amount required to be maintained by the school |
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district under Subsection (a) for any authorized payment or |
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purchase of the district, including: |
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(1) payment of any outstanding debt maintained by the |
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district; |
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(2) purchase of land or school buildings for the |
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district; or |
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(3) reduction of the district's operation and |
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maintenance tax rate for the following tax year. |
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SECTION 2. This Act takes effect September 1, 2017. |