By Grusendorf                                         H.B. No. 2411
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to county education districts.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 20.942, Education Code, is amended to
    1-5  read as follows:
    1-6        Sec. 20.942.  AUTHORIZATION.  Each county education district
    1-7  is <an independent school district> established <by the
    1-8  consolidation of the local school districts in its boundaries> for
    1-9  the limited purpose of exercising <a portion of> the taxing power
   1-10  <previously> authorized by Article VII, Section 3, of the Texas
   1-11  Constitution <the voters in those school districts> and of
   1-12  distributing revenue of the county education district to the school
   1-13  districts in its boundaries <those districts>.
   1-14        SECTION 2.  Sections 20.943(a) and (b), Education Code, are
   1-15  amended to read as follows:
   1-16        (a)  Except as provided by this subsection, a <A> county
   1-17  education district is governed by a board of trustees appointed by
   1-18  the respective boards of trustees of its component school
   1-19  districts.  A county education district that is composed of one
   1-20  component district is governed by the board of trustees of the
   1-21  component district.
   1-22        (b)  If a county education district is composed of three or
   1-23  more component districts <Except as provided by this subsection>,
    2-1  the board of trustees of each component school district shall
    2-2  appoint one of its members to serve on the board of trustees of the
    2-3  county education district.  If a county education district is
    2-4  composed of two <fewer than three> component districts, the board
    2-5  of trustees of each component district shall appoint two of its
    2-6  members to serve on the board of trustees of the county education
    2-7  district.  An appointed member of the board of trustees serves at
    2-8  the pleasure of the appointing school district's board of trustees
    2-9  and may be replaced at any time by that board.  Service on the
   2-10  county education district board under this section is an additional
   2-11  duty of office of the member serving.
   2-12        SECTION 3.  Subchapter G, Chapter 20, Education Code, is
   2-13  amended by adding Section 20.9442 to read as follows:
   2-14        Sec. 20.9442.  TAX AUTHORIZATION ELECTION.  (a)  Except as
   2-15  provided by Subsection (e) of this section, the board of trustees
   2-16  of each county education district shall order an election to be
   2-17  held on Aug. 14, 1993, to determine whether or not the district
   2-18  shall be authorized to levy a tax not exceeding $1.00 per $100
   2-19  valuation of property in the district.
   2-20        (b)  At the tax authorization election the ballot shall be
   2-21  prepared to permit voting for or against the proposition:  "The
   2-22  county education district tax not exceeding $1.00 on the $100
   2-23  valuation of property."
   2-24        (c)  Each component school district shall conduct the
   2-25  election and deliver the canvass of the vote to the county
    3-1  education district board of trustees.  The board of trustees shall
    3-2  conduct a final canvass not later than the second day after the
    3-3  receipt of all school district election returns and prepare a
    3-4  tabulation of the total number of votes received in each school
    3-5  district and the sum of the school district totals.  The
    3-6  proposition is approved only if the majority of the votes reflected
    3-7  in the sum of school district totals favors the proposition.  The
    3-8  board of trustees shall declare the results and retain the election
    3-9  returns and tabulations for the period for preserving precinct
   3-10  election records.
   3-11        (d)  If at the election the majority of the votes are cast
   3-12  against the proposition, the board of trustees may call another
   3-13  election for the same purpose on an authorized election date, as
   3-14  prescribed by Section 41.001, Election Code, occurring after the
   3-15  expiration of 60 days after the date of the prior election.
   3-16        (e)  This section does not apply to a county education
   3-17  district composed of only one school district.
   3-18        SECTION 4.  Section 20.945(a), Education Code, is amended to
   3-19  read as follows:
   3-20        (a)  The board of trustees of a county education district
   3-21  shall levy a tax for the support of that district's component
   3-22  school districts at a rate not exceeding the rate necessary to
   3-23  collect its local fund assignment under Section 16.252 of this code
   3-24  not later than September 1 of each year or as soon thereafter as
   3-25  practicable.
    4-1        SECTION 5.  Sections 20.946(a), (b), (c), and (f), Education
    4-2  Code, are amended to read as follows:
    4-3        (a)  The <Subject to Subsection (f) of this section, the>
    4-4  voters of a county education district may exempt from ad valorem
    4-5  taxation a percentage of the market value of the residence
    4-6  homestead of a married or unmarried adult, including one living
    4-7  alone, at an election held in the district as provided by this
    4-8  section.
    4-9        (b)  At the first regular meeting of the board, the board
   4-10  shall order an election to be held on Aug. 14, 1993 <August 10,
   4-11  1991>, on the question of exempting from ad valorem taxation by the
   4-12  district a percentage of the market value of a residence homestead
   4-13  in the district.  The amount of the exemption shall be the maximum
   4-14  percentage exemption as provided by Article VIII, Section 1-b(e),
   4-15  of the Texas Constitution.  <If the exemption is approved, it takes
   4-16  effect only if this section remains in effect after August 10,
   4-17  1991, under Subsection (f) of this section.>
   4-18        (c)  If the exemption is not adopted at the 1993 <1991>
   4-19  election and the board subsequently receives a valid petition
   4-20  requesting an election for the purpose of adopting the exemption,
   4-21  the board shall hold another election on the proposition.  The
   4-22  petition must be signed by a number of registered voters of the
   4-23  district equal to at least five percent of the registered voters
   4-24  residing in the district and must state the percentage of market
   4-25  value to be exempted.  The board shall order the election to be
    5-1  held on an authorized election date, as prescribed by Section
    5-2  41.001, Election Code, occurring not later than 60 days after the
    5-3  date on which the petition is received by the board.  If at the
    5-4  election the majority of the votes are cast against the
    5-5  proposition, another election for the same purpose may not be held
    5-6  earlier than the corresponding uniform election date three years
    5-7  after the date of the preceding election ordered under this
    5-8  subsection.
    5-9        (f)  This section does not apply to a county education
   5-10  district composed of only one component school district. <remains
   5-11  in effect after August 10, 1991, only if the constitutional
   5-12  amendment proposed by the 72nd Legislature, Regular Session,
   5-13  providing an exemption of a percentage of the market value of a
   5-14  residence homestead from ad valorem taxation in county education
   5-15  districts by election of the voters, is adopted.  If that amendment
   5-16  is not adopted, this section has no effect.>
   5-17        SECTION 6.  Section 20.947, Education Code, is amended to
   5-18  read as follows:
   5-19        Sec. 20.947.  AUTHORITY OF COMPONENT SCHOOL DISTRICTS.  (a)
   5-20  Except as provided by Subsection (b) of this section, the <The>
   5-21  boards of trustees of the component school districts in a county
   5-22  education district retain the authority granted them elsewhere in
   5-23  this code, except the authority to levy that portion of their
   5-24  former taxing authority exercised by the county education district.
   5-25        (b)  A school district that is the single component of a
    6-1  county education district retains its authority to tax.  Revenue
    6-2  raised by the school district in an amount equal to its local fund
    6-3  assignment under Section 16.252 of this code shall be treated as if
    6-4  it were revenue raised by a county education district for
    6-5  Foundation School Program funding purposes.
    6-6        SECTION 7.  Sections 20.950(a), (b), (c), and (f), Education
    6-7  Code, are amended to read as follows:
    6-8        (a)  The <Subject to Subsection (f) of this section, the>
    6-9  voters of a county education district may exempt from ad valorem
   6-10  taxation not less than $3,000 of the appraised value of the
   6-11  residence homestead of an individual who is disabled or is 65 or
   6-12  older at an election held in the district as provided by this
   6-13  section.
   6-14        (b)  At the first regular meeting of the board, the board
   6-15  shall order an election to be held on Aug. 14, 1993 <August 10,
   6-16  1991>, on the question of exempting from ad valorem taxation by the
   6-17  district an amount of the market value of a residence homestead in
   6-18  the district of an individual who is disabled or is 65 or older.
   6-19  The amount of the exemption for individuals who are disabled and
   6-20  the amount of the exemption for individuals who are 65 or older
   6-21  shall each be $10,000.  <If the exemption is approved, it takes
   6-22  effect only if this section remains in effect after August 10,
   6-23  1991, under Subsection (f) of this section.>
   6-24        (c)  If the exemption is not adopted at the 1993 <1991>
   6-25  election and the board subsequently receives a valid petition
    7-1  requesting an election for the purpose of adopting the exemption,
    7-2  the board shall hold another election on the proposition.  The
    7-3  petition must be signed by a number of registered voters of the
    7-4  district equal to at least five percent of the registered voters
    7-5  residing in the district and must state the amount to be exempted.
    7-6  The board shall order the election to be held on an authorized
    7-7  election date, as prescribed by Section 41.001, Election Code,
    7-8  occurring not later than 60 days after the date on which the
    7-9  petition is received by the board.  If at the election the majority
   7-10  of the votes are cast against the proposition, another election for
   7-11  the same purpose may not be held earlier than the corresponding
   7-12  uniform election date three years after the date  of the preceding
   7-13  election ordered under this subsection.
   7-14        (f)  This section does not apply to a county education
   7-15  district composed of only one school district. <remains in effect
   7-16  after August 10, 1991, only if the constitutional amendment
   7-17  proposed by the 72nd Legislature, Regular Session, providing an
   7-18  exemption of not less than $3,000 of the market value of a
   7-19  residence homestead of an individual who is disabled or who is 65
   7-20  or older from ad valorem taxation in county education districts by
   7-21  election of the voters, is adopted.  If that amendment is not
   7-22  adopted, this section has no effect.>
   7-23        SECTION 8.  Sections 20.951(a), (b), (c), and (f), Education
   7-24  Code, are amended to read as follows:
   7-25        (a)  The <Subject to Subsection (f) of this section, the>
    8-1  voters of a county education district may provide for the taxation
    8-2  of tangible personal property exempt under Section 11.14(a), Tax
    8-3  Code, at an election held in the district as provided by this
    8-4  section.
    8-5        (b)  At the first regular meeting of the board, the board
    8-6  shall order an election to be held on Aug. 14, 1993 <August 10,
    8-7  1991>, on the question of taxation by the district of tangible
    8-8  personal property exempt under Section 11.14(a), Tax Code.  <If the
    8-9  proposition is approved, it takes effect only if this section
   8-10  remains in effect after August 10, 1991, under Subsection (f) of
   8-11  this section.>
   8-12        (c)  If the proposition is not adopted at the 1993 <1991>
   8-13  election and the board subsequently receives a valid petition
   8-14  requesting an election for the purpose of providing for the
   8-15  taxation of tangible personal property exempt under Section
   8-16  11.14(a), Tax Code, the board shall hold another election on the
   8-17  proposition.  The petition must be signed by a number of registered
   8-18  voters of the district equal to at least five percent of the
   8-19  registered voters residing in the district.  The board shall order
   8-20  the election to be held on an authorized election date, as
   8-21  prescribed by Section 41.001, Election Code, occurring not later
   8-22  than 60 days after the date on which the petition is received by
   8-23  the board.  If at the election the majority of the votes are cast
   8-24  against the proposition, another election for the same purpose may
   8-25  not be held earlier than the corresponding uniform election date
    9-1  three years after the date  of the preceding election ordered under
    9-2  this subsection.
    9-3        (f)  This section does not apply to a county education
    9-4  district composed of only one school district. <remains in effect
    9-5  after August 10, 1991, only if the constitutional amendment
    9-6  proposed by the 72nd Legislature, Regular Session, providing for
    9-7  the taxation of tangible personal property, except structures used
    9-8  or occupied as a residence or property used or held for the
    9-9  production of income, in county education districts by election of
   9-10  the voters is adopted.>
   9-11        SECTION 9.  Subchapter B, Chapter 16, Education Code, is
   9-12  amended by adding Section 16.058 to read as follows:
   9-13        Sec. 16.058.  REQUIRED LOCAL FUNDING.  A school district must
   9-14  raise or receive from the county education district in which the
   9-15  school district is located an amount of local funds that is not
   9-16  less than 95 percent of the amount assigned or reallocated to the
   9-17  school district under Section 16.252 of this code.
   9-18        SECTION 10.  Section 16.251(b), Education Code, is amended to
   9-19  read as follows:
   9-20        (b)  The program shall be financed by:
   9-21              (1)  ad valorem tax revenue generated by an equalized
   9-22  uniform <county education district> effort by school districts or
   9-23  by county education districts on behalf of their component school
   9-24  districts;
   9-25              (2)  ad valorem tax revenue generated by local school
   10-1  district effort in excess of the equalized uniform <county
   10-2  education district> effort;
   10-3              (3)  state available school funds distributed in
   10-4  accordance with law; and
   10-5              (4)  state funds appropriated for the purposes of
   10-6  public school education and allocated to each district in an amount
   10-7  sufficient to finance the cost of each district's Foundation School
   10-8  Program not covered by other funds specified in this subsection.
   10-9        SECTION 11.  Section 16.252(d), Education Code, is amended to
  10-10  read as follows:
  10-11        (d)  The commissioner of education shall allocate each county
  10-12  education district's local fund assignment among its component
  10-13  school districts on the basis of the component districts' shares of
  10-14  the taxable value of property in the county education district,
  10-15  except that no component district's share shall exceed that
  10-16  district's tier one program cost less the amount distributed to the
  10-17  component district from the available school fund.  <A county
  10-18  education district shall raise its total local share of the
  10-19  foundation school program.  The funds shall be reallocated to the
  10-20  school districts in the county education district in the manner
  10-21  prescribed by Subchapter J of this chapter.>
  10-22        SECTION 12.  Sections 16.254(a) and (b), Education Code, are
  10-23  amended to read as follows:
  10-24        (a)  The commissioner of education shall determine annually:
  10-25              (1)  the amount of money necessary to operate a
   11-1  Foundation School Program in each school district;
   11-2              (2)  the amount of each <local funds due the> school
   11-3  district's <district from the> local fund assignment <of the county
   11-4  education district>; and
   11-5              (3)  the amount of state available school funds
   11-6  distributed to each school district.
   11-7        (b)  The commissioner of education shall then grant to each
   11-8  school district from the Foundation School Program appropriation
   11-9  the amount of funds necessary to provide the difference between
  11-10  Subdivision (1) and the sum of Subdivisions (2) and (3) of
  11-11  Subsection (a) of this section.  However, if a school district
  11-12  fails to raise, or to receive from its county education district,
  11-13  sufficient local revenue to cover its local fund assignment, the
  11-14  commissioner shall reduce the amount granted to the district by the
  11-15  same proportion that the amount raised or received by the district
  11-16  bears to the district's local fund assignment.
  11-17        SECTION 13.  Section 20.09, Education Code, is amended by
  11-18  adding Subsection (e) to read as follows:
  11-19        (e)  This section does not apply to a school district if the
  11-20  district is the single component school district of a county
  11-21  education district.
  11-22        SECTION 14.  Section 26.07(a), Tax Code, is amended to read
  11-23  as follows:
  11-24        (a)  If the governing body of a taxing unit other than a
  11-25  school district or county education district adopts a tax rate that
   12-1  exceeds the rollback tax rate calculated as provided by Section
   12-2  26.04 of this code, the qualified voters of the taxing unit by
   12-3  petition may require that an election be held to determine whether
   12-4  or not to reduce the tax rate adopted for the current year to the
   12-5  rollback tax rate calculated as provided by Section 26.04 of this
   12-6  code.
   12-7        SECTION 15.  Section 26.08, Tax Code, is amended by adding
   12-8  Subsection (k) to read as follows:
   12-9        (k)  This section does not apply to a county education
  12-10  district.
  12-11        SECTION 16.  This Act takes effect immediately, except that
  12-12  Sections 9-13 of this Act take effect September 1, 1993.
  12-13        SECTION 17.  The importance of this legislation and the
  12-14  crowded condition of the calendars in both houses create an
  12-15  emergency and an imperative public necessity that the
  12-16  constitutional rule requiring bills to be read on three several
  12-17  days in each house be suspended, and this rule is hereby suspended,
  12-18  and that this Act take effect and be in force according to its
  12-19  terms, and it is so enacted.