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.