78R8931 T

By:  Howard                                                       H.B. No. 2964



A BILL TO BE ENTITLED

AN ACT

relating to the maintaining of municipal school district status; 
and the levy of municipal school district taxes.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 11.301, Texas 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.]
	(c)  Municipal School Districts.  Except as provided below, 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.  Notwithstanding the provisions of 
Subsection (c) of Section 24.06, as it existed on May 1, 1995, taxes 
for a municipal school district shall be approved and levied by the 
governing body of the municipality, after requisition by the board 
of trustees.  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 its applicable 
fiscal year budget(s) in accordance with revenue projections based 
on the levied tax.  All hearings required by law as conditions for 
the imposition of a tax shall be held jointly before the board of 
trustees and the governing body of the municipality.  The governing 
body of the municipality shall provide certified copies of all 
ordinances levying such taxes to the board of trustees following 
adoption thereof.  Nothing herein shall 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 full compliance 
with applicable provisions of the Tax Code.
	SECTION 2.  This Act takes effect September 1, 2003.