By Williamson                                   H.B. No. 1066

      75R1989 CAS-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to municipal school districts.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Chapter 11, Education Code, is amended by adding

 1-5     Subchapter I to read as follows:

 1-6                     SUBCHAPTER I.  MUNICIPAL SCHOOL DISTRICTS

 1-7           Sec. 11.401.  STATUS.  A municipal school district created

 1-8     under Subchapter H, Chapter 13, is an independent school district.

 1-9     Except as otherwise specifically provided by this subchapter, a

1-10     provision of this code that applies to any other independent school

1-11     district, including a provision that applies to the board of

1-12     trustees of any other independent school district, applies to a

1-13     municipal school district.

1-14           Sec. 11.402.  GOVERNANCE.  A municipal school district is

1-15     governed by a board of seven trustees.

1-16           Sec. 11.403.  SELECTION OF TRUSTEES.  (a)  The trustees of a

1-17     municipal school district may be elected as provided by Subchapter

1-18     C or may be appointed by the governing body of the municipality, as

1-19     determined by the governing body and as stated in the resolution

1-20     adopted under Section 13.303.

1-21           (b)  A municipal school district whose trustees are appointed

1-22     by the governing body of the municipality shall continue to select

1-23     trustees by appointment unless the method of selecting trustees is

1-24     changed under Subsection (c).  The governing body of the

 2-1     municipality shall appoint either two or three trustees each year

 2-2     as necessary to maintain a board of seven trustees.  Each trustee

 2-3     shall be appointed for a term of three years.

 2-4           (c)  A municipal school district whose trustees are appointed

 2-5     as provided by Subsection (b) may provide for the election of

 2-6     trustees as provided by this subsection.  To initiate the change in

 2-7     the method of selecting trustees, a petition requesting an election

 2-8     to determine whether the board of trustees of the district shall be

 2-9     elected must be presented to the mayor.  To be valid, the petition

2-10     must be signed by registered voters of the municipal school

2-11     district equal in number to at least 10 percent of the number of

2-12     voters voting in the most recent regular municipal election.  As

2-13     soon as practicable after receiving a valid petition, the mayor

2-14     shall order an election to be held on the proposition of whether

2-15     the board of trustees of the district shall be elected.  The

2-16     election shall be conducted in the manner in which other elections

2-17     on measures are conducted by the municipality.  If a majority of

2-18     the qualified voters voting at the election vote in favor of

2-19     selecting members of the board of trustees by election, the mayor

2-20     shall order an election to select a board of seven trustees to be

2-21     held on the date on which members of the governing body of the

2-22     municipality are elected.  The terms of the first members of the

2-23     board shall be determined by lot.

2-24           Sec. 11.404.  TAXES AND BONDS.  (a)  The governing body of a

2-25     municipality that constitutes a municipal school district may by

2-26     resolution order an election on the proposition of whether to levy

2-27     a maintenance tax or to issue bonds for school purposes.

 3-1           (b)  If a majority of the qualified voters voting at an

 3-2     election vote in favor of a tax, the governing body of the

 3-3     municipality shall by ordinance at the request of the board of

 3-4     trustees of the district annually impose the tax on the taxable

 3-5     property in the municipal school district for the support and

 3-6     maintenance of the public schools, and in the case of bonds

 3-7     approved, for the erection and equipment of public school buildings

 3-8     in accordance with the requisition furnished.

 3-9           (c)  The board of trustees of the municipal school district

3-10     shall determine the amount of tax necessary to support and maintain

3-11     the schools and erect and equip public school buildings for each

3-12     fiscal year except that the tax rate may not exceed the limit

3-13     authorized by law and approved by the voters.

3-14           (d)  The school taxes shall be at the disposal of the board

3-15     of trustees and paid monthly to the depository to the account of

3-16     the board of trustees to be used for maintenance and support of the

3-17     public schools in the municipal school district.

3-18           Sec. 11.405.  ASSESSMENT AND COLLECTION OF TAXES.  (a)  Taxes

3-19     for a municipal school district may be assessed and collected only

3-20     as prescribed by Subsection (b) or (c).

3-21           (b)  The assessor and collector of taxes for the municipality

3-22     may assess and collect taxes for the municipal school district.  In

3-23     that case, the taxes for school purposes shall be assessed and

3-24     collected at the same time and in the same manner as other

3-25     municipal taxes are assessed and collected.  The assessor and

3-26     collector of taxes for the municipality may not receive

3-27     compensation for assessing and collecting school taxes in addition

 4-1     to the compensation paid for assessing and collecting municipal

 4-2     taxes.

 4-3           (c)  The board of trustees of a municipal school district may

 4-4     contract with the county assessor-collector of taxes to assess and

 4-5     collect the taxes for the municipal school district on property

 4-6     located in the county.

 4-7           Sec. 11.406.  PROPERTY.  Title to property owned, held, or

 4-8     otherwise dedicated to the use and benefit of the public schools of

 4-9     the municipality, whether acquired before or after the

4-10     establishment of the municipal school district, vests in the board

4-11     of trustees in trust for the use and benefit of the public schools

4-12     in the municipality.

4-13           SECTION 2.  Chapter 13, Education Code, is amended by adding

4-14     Subchapter H to read as follows:

4-15            SUBCHAPTER H.  CREATION OF MUNICIPAL SCHOOL DISTRICT 

4-16           Sec. 13.301.  AUTHORIZATION.  A municipal school district may

4-17     be created as provided by this subchapter.

4-18           Sec. 13.302.  BOUNDARIES.  At the time a municipal school

4-19     district is created under this subchapter, the boundaries of the

4-20     district must be coterminous with those of the municipality in

4-21     which the district is located.

4-22           Sec. 13.303.  INITIATION  OF DISTRICT.  Creation of a

4-23     municipal school district is initiated by resolution of the

4-24     governing body of a home-rule municipality or by a petition

4-25     presented to the governing body.  A resolution under this

4-26     subchapter must state whether the board of trustees of the

4-27     municipal school district is to be appointed by the governing body

 5-1     of the municipality or elected.  A petition under this subchapter

 5-2     must:

 5-3                 (1)  be addressed to the governing body of the

 5-4     home-rule municipality;

 5-5                 (2)  be signed by at least 10 percent of the registered

 5-6     voters residing in the municipality; and

 5-7                 (3)  request that the governing body order an election

 5-8     on the proposition of whether to create a municipal school

 5-9     district.

5-10           Sec. 13.304.  ELECTION.  (a)  Not later than the 30th day

5-11     after the date the governing body of a municipality receives a

5-12     petition under this subchapter, the governing body shall hold a

5-13     hearing on the validity of the petition.  If the governing body

5-14     determines the petition is valid or if the governing body has

5-15     adopted a resolution under Section 13.303, the governing body shall

5-16     order an election.

5-17           (b)  Not earlier than the 30th day or later than the 10th day

5-18     before the date of the election, the governing body of the

5-19     municipality shall give notice of the election by having a copy of

5-20     the election order published at least once in a newspaper published

5-21     at least once each week in the municipality.  If such a newspaper

5-22     is not published in the municipality, the notice shall be published

5-23     in at least one newspaper of general circulation in the county in

5-24     which the municipality is located.  The governing body of the

5-25     municipality shall give additional notice of the election by having

5-26     a copy of the election order posted in a public place in each

5-27     election precinct not later than the 21st day before the date of

 6-1     the election.

 6-2           (c)  The election precincts and polling places usually used

 6-3     in the elections of the municipality shall be used in an election

 6-4     held under this subchapter, except that if another election is

 6-5     occurring on the same date for all or part of the same geographic

 6-6     area, precincts and polling places shall be selected to allow each

 6-7     voter to cast ballots at the same polling place for each of the

 6-8     elections.  The election shall be conducted in accordance with the

 6-9     Election Code to the extent that code may be made applicable.

6-10           (d)  The ballot shall be printed to permit voting for or

6-11     against the proposition:  "Creation of a municipal school district

6-12     under the control of and with boundaries coterminous with the

6-13     boundaries of ______ (name of municipality)."

6-14           (e)  An election on the creation of a municipal school

6-15     district has no effect unless at least 10 percent of the registered

6-16     voters of the municipality vote in the election in which the issue

6-17     is on the ballot.

6-18           (f)  The governing body of the municipality shall declare the

6-19     results of the election and report the results to the board of

6-20     trustees of each school district having territory in the

6-21     municipality.

6-22           (g)  The municipal school district may be created only if:

6-23                 (1)  the proposition receives a majority of votes in

6-24     the municipality; and

6-25                 (2)  the board of trustees of each school district

6-26     having territory in the municipality, after a public hearing on the

6-27     issue,  adopts a resolution approving detachment of district

 7-1     territory located in the municipality and transfer of that

 7-2     territory to the municipality for school purposes.

 7-3           (h)  The board of trustees may approve detachment and

 7-4     transfer to the municipality of school district territory only if

 7-5     the board finds that the transfer is of benefit to the educational

 7-6     and social interests of the current students residing or future

 7-7     students expected to reside in the affected territory and is

 7-8     economically sound.

 7-9           (i)  The expenses of the election shall be paid by the

7-10     municipality.

7-11           Sec. 13.305.  ORDER CREATING DISTRICT.  (a)  If all of the

7-12     requirements of this subchapter are met, the governing body of the

7-13     municipality shall enter an order creating the municipal school

7-14     district.

7-15           (b)  At the time the order creating the district is issued,

7-16     the governing body of the municipality shall appoint a board of

7-17     seven trustees for the new district.  Those trustees serve until

7-18     the next regular election of trustees, when a board of trustees

7-19     shall be elected in compliance with Chapter 11, or until the terms

7-20     of trustees expire if the governing body of the municipality is

7-21     responsible for appointing the board of trustees under Section

7-22     11.403.  If the governing body of the municipality is responsible

7-23     for appointing the board of trustees, the terms of the first

7-24     members of the board shall be determined by lot.

7-25           (c)  Title to school district real property in the territory

7-26     detached vests in the municipal school district, and the municipal

7-27     school district assumes and is liable for any portion of

 8-1     outstanding indebtedness of the district from which the territory

 8-2     was detached that is allocated to the new district under Section

 8-3     13.004.

 8-4           Sec. 13.306.  SEPARATION FROM MUNICIPAL CONTROL.  (a)  A

 8-5     municipal school district may be separated from municipal control

 8-6     as provided by this section.

 8-7           (b)  Separation from municipal control is initiated by a

 8-8     petition signed by at least 10 percent of the registered voters of

 8-9     the municipal school district.  The petition must be presented to

8-10     the board of trustees of the municipal school district.  The board

8-11     of trustees must certify the petition to the governing body of the

8-12     municipality.

8-13           (c)  As soon as practicable after receiving the petition, the

8-14     governing body of the municipality shall establish a date not later

8-15     than the 10th day after the date on which the petition is received

8-16     for holding a joint meeting of the governing body of the

8-17     municipality and the board of trustees of the municipal school

8-18     district.  At the joint meeting, the governing body of the

8-19     municipality and the board of trustees of the municipal school

8-20     district, acting jointly as one body with the mayor or chairperson

8-21     of the governing body presiding, shall order an election.

8-22           (d)  The election shall be held on an authorized election

8-23     date, as prescribed by Chapter 41, Election Code, occurring not

8-24     later than the 60th day after the date the petition is  received.

8-25     If an authorized date within that period does not allow sufficient

8-26     time to comply with other legal requirements or if there is no

8-27     authorized date within that period, the election shall be ordered

 9-1     for the next authorized date.  The ballot shall be printed to

 9-2     provide for voting for or against the proposition:  "The separation

 9-3     of the public schools from municipal control."  Except as provided

 9-4     by this section, the election shall be conducted in the manner in

 9-5     which other elections on measures are conducted by the

 9-6     municipality.  Following the canvass of the election returns, the

 9-7     governing body of the municipality shall deliver to the board of

 9-8     trustees of the municipal school district the certified results of

 9-9     the election and a certified copy of the record showing all

9-10     proceedings relating to the election.  If a majority of the voters

9-11     voting at the election vote in favor of the separation of the

9-12     public schools from municipal control, the board of trustees shall

9-13     by resolution declare that the public schools of the municipal

9-14     school district have been separated from municipal control and that

9-15     the corporate name for the school district shall be "______

9-16     Independent School District."

9-17           (e)  The separated school district is an independent school

9-18     district with all the powers and duties of an independent school

9-19     district.  Title to property of the municipal school district vests

9-20     in the separated district, and the separated district assumes and

9-21     is liable for the outstanding indebtedness of the municipal school

9-22     district.

9-23           (f)  The board of trustees of the separated school district

9-24     consists of seven members.  The members of the board of trustees of

9-25     the municipal school district shall continue as members of the

9-26     board of trustees of the independent school district until the

9-27     terms for which they have been elected or appointed, as applicable,

 10-1    have expired or until their successors have been elected and have

 10-2    qualified.

 10-3          (g)  At the expiration of the terms of office of the existing

 10-4    trustees, election of trustees shall be held in compliance with

 10-5    Chapter 11.

 10-6          SECTION 3.  The importance of this legislation and the

 10-7    crowded condition of the calendars in both houses create an

 10-8    emergency and an imperative public necessity that the

 10-9    constitutional rule requiring bills to be read on three several

10-10    days in each house be suspended, and this rule is hereby suspended,

10-11    and that this Act take effect and be in force from and after its

10-12    passage, and it is so enacted.