78R9738 ESH-F


By:  Howard                                                       H.B. No. 2964

Substitute the following for H.B. No. 2964:                                   

By:  Hochberg                                                 C.S.H.B. No. 2964



A BILL TO BE ENTITLED

AN ACT

relating to the operation of municipal school districts and the 
levy of municipal school district taxes.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter G, Chapter 11, is amended by adding 
Section 11.303 to read as follows:
	Sec. 11.303.  MUNICIPAL SCHOOL DISTRICTS.  (a)  Except as 
otherwise provided by this section, a school district operating 
under former Chapter 24 may 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)  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, the governing body of the municipality 
shall approve and levy taxes for the district.  The governing body 
of the municipality may adopt the tax rate requisitioned by the 
board of trustees or may adopt a different tax rate.  If the 
governing body of the municipality adopts a tax rate different than 
the rate requisitioned by the board of trustees, the board of 
trustees shall 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)  The board of trustees of a municipal school district and 
the governing body of the municipality shall jointly hold any 
hearing required by law as a condition for the imposition of an ad 
valorem tax.  After adopting an ordinance levying a tax for the 
municipal school district, the governing body of the municipality 
shall provide a certified copy of the ordinance to the district's 
board of trustees.
	(d)  This section may not be 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.  Section 11.301, Education Code, is amended to 
read as follows:   
	Sec. 11.301.  APPLICATION OF FORMER LAW.  (a)  A school 
district or county system operating under former Chapter 17, 18, 
22, [24,] 25, 26, 27, or 28 on May 1, 1995, may continue to operate 
under the applicable chapter as that chapter existed on that date 
and under state law generally applicable to school districts that 
does not conflict with that chapter.
	(b)  A school district operating under former Chapter 22 may 
incorporate and become an independent school district in the manner 
provided by former Subchapter F, Chapter 19, as that subchapter 
existed on May 1, 1995.  [A school district operating under former 
Chapter 24 may be separated from municipal control and become an 
independent school district in the manner provided by former 
Subchapter E, Chapter 19, as that subchapter existed on May 1, 
1995.]
	SECTION 3.  This Act takes effect September 1, 2003.