Bill Text: TX HB1059 | 2017-2018 | 85th Legislature | Introduced

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Bill Title: Relating to the effective date of certain actions taken by the commissioner of education against school districts that exceed the equalized wealth level and to reattachment of property detached from a school district by the commissioner of education to achieve the equalized wealth level.

Spectrum: Slight Partisan Bill (Democrat 7-3)

Status: (Introduced - Dead) 2017-03-28 - Left pending in committee [HB1059 Detail]

Download: Texas-2017-HB1059-Introduced.html

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85R6715 CAE-D
By: Murphy H.B. No. 1059

A BILL TO BE ENTITLED
AN ACT
relating to the effective date of certain actions taken by the
commissioner of education against school districts that exceed the
equalized wealth level and to reattachment of property detached
from a school district by the commissioner of education to achieve
the equalized wealth level.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 41.004, Education Code, is amended by
amending Subsections (a) and (d) and adding Subsection (e) to read
as follows:
(a) Not later than July 15 of each year, using the estimate
of enrollment under Section 42.254, the commissioner shall review
the wealth per student of school districts in the state and shall
notify:
(1) each district with wealth per student exceeding
the equalized wealth level;
(2) each district to which the commissioner proposes
to annex property detached from a district notified under
Subdivision (1), if necessary, under Subchapter G; [and]
(3) each district to which the commissioner proposes
to reattach property previously detached from the district under
Subchapter G; and
(4) each district to which the commissioner proposes
to consolidate a district notified under Subdivision (1), if
necessary, under Subchapter H.
(d) Except as provided by Subsection (e), a [A] detachment
and annexation, reattachment, or consolidation under this chapter:
(1) is effective for Foundation School Program funding
purposes for the school year that begins in the calendar year
following the year in which the detachment and annexation,
reattachment, or consolidation is [agreed to or] ordered; and
(2) applies to the ad valorem taxation of property
beginning with the tax year in which the [agreement or] order is
effective.
(e) A consolidation or detachment and annexation agreed to
under Subchapter B or C:
(1) is effective for Foundation School Program funding
purposes for the school year that begins in the calendar year in
which the consolidation or detachment and annexation is agreed to;
and
(2) applies to the ad valorem taxation of property
beginning with the tax year in which the agreement is effective.
SECTION 2. Section 41.202(a), Education Code, is amended to
read as follows:
(a) For purposes of this subchapter, the taxable value of an
individual parcel or other item of property and the total taxable
value of property in a school district resulting from the
detachment of property from a district, [or] annexation of property
to that district, or reattachment of property to a district is
determined by applying the appraisal ratio for the appropriate
category of property determined under Subchapter M, Chapter 403,
Government Code, for the preceding tax year to the taxable value of
the detached, [or] annexed, or reattached property determined under
Title 1, Tax Code, for the preceding tax year.
SECTION 3. The heading to Section 41.203, Education Code,
is amended to read as follows:
Sec. 41.203. PROPERTY SUBJECT TO DETACHMENT AND ANNEXATION
OR REATTACHMENT.
SECTION 4. Section 41.203, Education Code, is amended by
adding Subsection (a-1) to read as follows:
(a-1) Any property detached and annexed under this
subchapter is subject to reattachment under Section 41.2065,
regardless of whether the property continues to satisfy the
limitation imposed under Subsection (a).
SECTION 5. Subchapter G, Chapter 41, Education Code, is
amended by adding Section 41.2065 to read as follows:
Sec. 41.2065. REATTACHMENT OF DETACHED AND ANNEXED
PROPERTY. (a) If property has been detached from a school district
and annexed to another school district by the commissioner under
this subchapter, the commissioner shall reattach the property to
the original school district if that district's wealth per student
for a subsequent school year is determined to be $10,000 or more
below each equalized wealth level specified by Section 41.002 that:
(1) applies to the district's maintenance and
operations tax effort; and
(2) would, if the district's wealth per student
exceeded that equalized wealth level, require the district to take
action to reduce the district's wealth per student under this
chapter.
(b) In determining the property to be reattached under this
section, the commissioner shall reattach one or more whole parcels
or items of property in ascending order of the taxable value of each
parcel or item, beginning with the parcel or item having the lowest
taxable value, until the district reaches a wealth per student
equal as nearly as possible to, but not exceeding, the lowest
equalized wealth level described by Subsection (a).
(c) The commissioner shall adopt rules necessary for the
reattachment of property under this section, including rules for
the reattachment of only a portion of a parcel or item of property
if reattachment of the entire parcel or item would increase the
district's wealth per student to an amount that is more than
permitted by this section.
SECTION 6. Section 41.208(a), Education Code, is amended to
read as follows:
(a) The commissioner shall order any detachments, [and]
annexations, and reattachments of property under this subchapter
not later than November 8 of each year.
SECTION 7. Section 41.209, Education Code, is amended to
read as follows:
Sec. 41.209. TREATMENT OF SUBDIVIDED PROPERTY. (a) If the
commissioner orders the detachment, [or] annexation, or
reattachment of a portion of a parcel or item of property under this
subchapter, the order shall specify the portion of the taxable
value of the property to be detached, [or] annexed, or reattached
and may, but need not, describe the specific area of the parcel or
item to be detached, [or] annexed, or reattached.
(b) If an order for the detachment, [or] annexation, or
reattachment of a portion of a parcel or item of property does not
describe the specific area of the parcel or item to be detached,
[or] annexed, or reattached, the commissioner, as soon as
practicable after issuing the order, shall determine the specific
area to be detached, [or] annexed, or reattached and shall certify
that determination to the appraisal district for the county in
which the property is located.
(c) If portions of a parcel or item of property are located
in two or more school districts as the result of a detachment, [or]
annexation, or reattachment, the parcel or item shall be appraised
for taxation as a unit, and the commissioner shall determine the
portion of the taxable value of the property that is located in each
of those school districts based on the square footage of the
property, or any other reasonable method adopted by the
commissioner.
SECTION 8. Section 41.210(b), Education Code, is amended to
read as follows:
(b) As soon as practicable after the detachment and
annexation or the reattachment of property, the chief appraiser of
the appraisal district in which the property is located shall send a
written notice of the detachment and annexation or the reattachment
to the owner of any property taxable in a different school district
as a result of the detachment and annexation or the reattachment.
The notice must include the name of the school district by which the
property is taxable after the detachment and annexation or the
reattachment.
SECTION 9. Section 41.211, Education Code, is amended to
read as follows:
Sec. 41.211. STUDENT ATTENDANCE. (a) A student who is a
resident of real property detached from a school district may
choose to attend school in that district or in the district to which
the property is annexed. For purposes of determining average daily
attendance under Section 42.005, the student shall be counted in
the district to which the property is annexed. If the student
chooses to attend school in the district from which the property is
detached, the state shall withhold any foundation school funds from
the district to which the property is annexed and shall allocate to
the district in which the student is attending school those funds
and the amount of funds equal to the difference between the state
funds the district is receiving for the student and the district's
cost in educating the student.
(b) A student who is a resident of real property reattached
to a school district may choose to attend school in that district or
in the district to which the property was previously annexed. For
purposes of determining average daily attendance under Section
42.005, the student shall be counted in the district to which the
property is reattached. If the student chooses to attend school in
the district to which the property was previously annexed, the
state shall withhold any foundation school funds from the district
to which the property is reattached and shall allocate to the
district in which the student is attending school those funds and
the amount of funds equal to the difference between the state funds
the district is receiving for the student and the district's cost in
educating the student.
SECTION 10. Section 41.212, Education Code, is amended to
read as follows:
Sec. 41.212. BOND TAXES. (a) Property detached from a
school district is released from the obligation for any tax to pay
principal and interest on bonds authorized by the district before
detachment. The property is subject to any tax to pay principal or
interest on bonds authorized by the district to which the property
is annexed whether authorized before or after annexation.
(b) Property reattached to a school district is released
from the obligation for any tax to pay principal and interest on
bonds authorized by the district the property was annexed to before
reattachment. The property is subject to any tax to pay principal
or interest on bonds authorized by the district to which the
property is reattached whether authorized before or after
reattachment.
SECTION 11. 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 September 1, 2017.