SRC-AMY H.B. 2964 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 2964
By: Howard (Ellis, Rodney)
Education
5/8/2003
Engrossed


DIGEST AND PURPOSE 

Amendments to Title 2 of the Education Code in 1995 included the removal
of Chapter 24. Chapter 24 contained provisions for the establishment and
governance of municipal school districts.  Under current Section 11.301
(Application of Former Law) of the Education Code, municipal school
districts operating under Chapter 24 at the time of the 1995 amendments
were and are authorized to continue to operate under that chapter as it
existed on May 1, 1995. Section 24.06(c) of Chapter 24 provides that
following requisition by the board of trustees of a municipal school
district, the governing body of the municipality levies taxes for the
benefit of the district, but has no discretion in establishing the rate of
the tax. Current law also permits a municipal school district to be
separated from municipal control and become an independent school district
if approved at an election held for that purpose.   

H.B. 2964 authorizes a school district operating under former Chapter 24
to continue to operate under that chapter as it existed on May 1, 1995,
and under state law generally applicable to school districts that does not
conflict with that chapter.  This bill establishes the manner in which the
governing body of a municipality will approve and levy taxes for the
school district. 


RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter G, Chapter 11, Education Code, by adding
Section 11.303, as follows: 

Sec. 11.303.  MUNICIPAL SCHOOL DISTRICTS.  (a)  Authorizes, except as
otherwise provided by this section, a school district operating under
former Chapter 24 to continue to operate under that chapter as it existed
on May 1, 1995, and under state law generally applicable to school
districts that does not conflict with that chapter. 

(b) Requires the governing body of the municipality, notwithstanding
former Section 24.06(c), as it existed on May 1, 1995, after requisition
by the board of trustees of the municipal school district, to approve and
levy taxes for the district. Authorizes the governing body of the
municipality to adopt the tax rate requisitioned by the board of trustees
or to adopt a different tax rate.  Requires the board of trustees, if the
governing body of the municipality adopts a tax rate different than the
rate requisitioned by the board of trustees, to conform the district's
budget for the applicable fiscal year in accordance with revenue
projections based on the rate adopted by the governing body. 

(c)  Requires the board of trustees of a municipal school district and the
governing body of the municipality to jointly hold any hearing required by
law as a condition for the imposition of an ad valorem tax.  Requires the
governing body of the municipality, after adopting an ordinance levying a
tax for the municipal school district, to  provide a certified copy of the
ordinance to the district's board of  trustees. 

(d)  Prohibits this section from being construed as authorizing the
governing body of a municipality to levy a tax for the support of schools
of a municipal school district without fully complying with all applicable
provisions of the Tax Code. 

SECTION 2.  Amends Section 11.301, Education Code, is amended, as follows:

Sec. 11.301.  APPLICATION OF FORMER LAW.  (a)  Deletes a reference to
Chapter 24. 

(b) Deletes text referring to a school district operating under former
Chapter 24 being separated from municipal control and becoming an
independent school district in the manner provided by former Subchapter E,
Chapter 19, as it existed on May 1, 1995. 

SECTION 3.  Effective date:  September 1, 2003.