89S10121 KJE-F     By: Metcalf H.B. No. 149       A BILL TO BE ENTITLED   AN ACT   relating to the elimination of school district maintenance and   operations ad valorem taxes and the creation of a joint interim   committee on the elimination of those taxes.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 26, Tax Code, is amended by adding   Section 26.035 to read as follows:          Sec. 26.035.  PROHIBITION ON IMPOSITION OF MAINTENANCE AND   OPERATIONS TAX BY SCHOOL DISTRICT; AUTHORIZATION FOR ENRICHMENT   TAX. (a) Notwithstanding any other law and except as provided by   Subsection (b), beginning January 1, 2028, a school district may   not impose a tax for maintenance and operations purposes.          (b)  Subsection (a) does not affect the authority of a school   district to impose an enrichment tax at a rate not to exceed $0.17   per $100 of taxable value of property in the district for the   purpose of providing additional revenue to enrich the educational   opportunities of students enrolled in the district. The revenue   attributable to the tax authorized under this subsection is in   addition to any money the district receives from the state.          (c)  A reference in this code, the Education Code, or any   other law to a school district's authority to impose a maintenance   tax or a maintenance and operations tax may not be construed in a   manner inconsistent with this section.          SECTION 2.  (a) In this section, "committee" means the joint   interim committee on the elimination of school district maintenance   and operations ad valorem taxes.          (b)  The joint interim committee on the elimination of school   district maintenance and operations ad valorem taxes is composed   of:                (1)  five members of the house of representatives   appointed by the speaker of the house of representatives; and                (2)  five senators appointed by the lieutenant   governor.          (c)  The speaker of the house of representatives and the   lieutenant governor shall make the appointments under Subsection   (b) of this section not later than the 60th day after the effective   date of this Act.          (d)  The speaker of the house of representatives and the   lieutenant governor shall each designate a co-chair from among the   committee members.          (e)  The committee shall convene at the joint call of the   co-chairs.          (f)  The committee has all other powers and duties provided   to a special or select committee by the rules of the senate and   house of representatives, by Subchapter B, Chapter 301, Government   Code, and by policies of the senate and house committees on   administration.          (g)  The committee shall consider and evaluate:                (1)  the effectiveness of increasing the rate or   expanding the application of consumption taxes currently imposed by   the state and using the revenue attributable to the increase or   expansion to meet the state's constitutional duty to make suitable   provision for the support and maintenance of an efficient system of   public free schools in the state;                (2)  the effectiveness of imposing consumption taxes   not currently imposed by the state and using the revenue   attributable to the imposition of those taxes to meet the state's   constitutional duty to make suitable provision for the support and   maintenance of an efficient system of public free schools in the   state;                (3)  the ability of state-imposed consumption taxes to   adequately respond to annual changes in funding needs that are   unique to school districts in the state; and                (4)  the effects of an increase in consumption taxes on   the residents of this state and businesses located in this state.          (h)  Not later than November 1, 2026, the committee shall   provide to the legislature a written report:                (1)  addressing the feasibility of using consumption   taxes for the support and maintenance of an efficient system of   public free schools in the state;                (2)  proposing a comprehensive plan to use revenue   attributable to consumption taxes for the support and maintenance   of an efficient system of public free schools in the state; and                (3)  proposing legislation necessary to implement the   comprehensive plan described by Subdivision (2) of this subsection.          (i)  The proposals made in the report under Subsection (h) of   this section must allow for the imposition by a school district of   an ad valorem tax at a rate not to exceed $0.17 per $100 of taxable   value of property in the district for the purpose of enriching   educational opportunities for students enrolled in the district.          (j)  The committee is abolished January 1, 2027.          SECTION 3.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution.  If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect on the 91st day after the last day of the   legislative session.