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  By: Huffines, Hall, Taylor of Collin  S.B. No. 1122
         (In the Senate - Filed February 28, 2017; March 7, 2017,
  read first time and referred to Committee on Education;
  April 26, 2017, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 9, Nays 1; April 26, 2017,
  sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 1122 By:  Huffines
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to abolishing certain county boards of education, boards
  of county school trustees, and offices of county school
  superintendent.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  (a)  Each county board of education, board of
  county school trustees, and office of county school superintendent
  in a county with a population of 2.2 million or more and that is
  adjacent to a county with a population of more than 800,000 is
  abolished effective September 1, 2017.
         (b)  Not later than September 1, 2017, a dissolution
  committee shall be formed for each county board of education or
  board of county school trustees to be abolished as provided by
  Subsection (a) of this section.  The dissolution committee is
  responsible for all financial decisions for each county board of
  education or board of county school trustees abolished by this Act,
  including asset distribution and payment of all debt obligations.
         (c)  A dissolution committee required by this Act shall be
  appointed by the comptroller and include:
               (1)  one financial advisor;
               (2)  the superintendent of the participating component
  school district with the largest number of students in average
  daily attendance or the superintendent's designee;
               (3)  one certified public accountant;
               (4)  one auditor who holds a license or other
  professional credential; and
               (5)  one bond counsel who holds a license or other
  professional credential.
         (d)  A dissolution committee created under this Act is
  subject to the open meetings requirements under Chapter 551,
  Government Code, and public information requirements under Chapter
  552, Government Code.
         (e)  Members of a dissolution committee may not receive
  compensation but are entitled to reimbursement for actual and
  necessary expenses incurred in performing the functions of the
  dissolution committee.
         (f)  Subject to the other requirements of this Act, the
  dissolution committee shall determine the manner in which all
  assets, liabilities, contracts, and services of the county board of
  education or board of county school trustees abolished by this Act
  are divided, transferred, or discontinued.  The dissolution
  committee shall create a sinking fund to deposit all money received
  in the abolishment of each county board of education or board of
  county school trustees for the payment of all debts of the county
  board of education or board of county school trustees.
         (g)  The dissolution committee shall continue providing
  transportation services to participating component school
  districts for the 2017-2018 school year.  The dissolution committee
  shall maintain current operations and personnel needed to provide
  the transportation services.
         (h)  At the end of the 2017-2018 school year all school
  buses, vehicles, and bus service centers shall be transferred to
  participating component school districts in proportionate shares
  equal to the proportion that the membership in each district bears
  to total membership in the county as of September 1, 2018, at no
  cost to the districts.
         (i)  The dissolution committee may employ for the 2017-2018
  school year one person to assist in the abolishment of the county
  board of education or board of county school trustees.
         (j)  On September 1, 2017, the participating component
  school district with the largest number of students in average
  daily attendance has the right of first refusal to buy, at fair
  market value, the administrative building of the county board of
  education or board of county school trustees.
         (k)  An ad valorem tax assessed by a county board of
  education or board of county school trustees shall continue to be
  assessed by the county on behalf of the board for the purpose of
  paying the principal of and interest on any bonds issued by the
  county board of education or board of county school trustees until
  all bonds are paid in full.  This subsection applies only to a bond
  issued before the effective date of this Act for which the tax
  receipts were obligated.  On payment of all bonds issued by the
  county board of education or board of county school trustees the ad
  valorem tax may not be assessed.
         (l)  In the manner provided by rule of the commissioner of
  education, the county shall collect and use any delinquent taxes
  imposed by or on behalf of the county board of education or board of
  county school trustees.
         (m)  The dissolution committee shall distribute the assets
  remaining after discharge of the liabilities of the county board of
  education or board of county school trustees to the component
  school districts in the county in proportionate shares equal to the
  proportion that the membership in each district bears to total
  membership in the county as of September 1, 2017.  The dissolution
  committee shall liquidate board assets as necessary to discharge
  board liabilities and facilitate the distribution of assets. A
  person authorized by the dissolution committee shall execute any
  documents necessary to complete the transfer of assets,
  liabilities, or contracts.
         (n)  The dissolution committee shall encourage the component
  school districts to:
               (1)  continue sharing services received through the
  county board of education or board of county school trustees; and
               (2)  give preference to private sector contractors to
  continue services provided by the county board of education or
  board of county school trustees.
         (o)  The chief financial officer and financial advisor for
  the county board of education or board of county school trustees
  shall provide assistance to the dissolution committee in abolishing
  the county board of education or board of county school trustees.
         (p)  The Texas Education Agency shall provide assistance to a
  dissolution committee in the distribution of assets, liabilities,
  contracts, and services of a county board of education or board of
  county school trustees abolished by this Act.
         (q)  Any dissolution committee created as provided by this
  Act is abolished on the date all debt obligations of the county
  board of education or board of county school trustees are paid in
  full and all assets distributed to component school districts.
         SECTION 2.  Chapter 266 (S.B. 394), Acts of the 40th
  Legislature, Regular Session, 1927 (Article 2700a, Vernon's Texas
  Civil Statutes), is repealed.
         SECTION 3.  This Act takes effect September 1, 2017.
 
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