Texas 2017 - 85th Regular

Texas House Bill HB1059 Compare Versions

Only one version of the bill is available at this time.

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1	1	85R6715 CAE-D
2	2	By: Murphy H.B. No. 1059
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the effective date of certain actions taken by the
8	8	commissioner of education against school districts that exceed the
9	9	equalized wealth level and to reattachment of property detached
10	10	from a school district by the commissioner of education to achieve
11	11	the equalized wealth level.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 41.004, Education Code, is amended by
14	14	amending Subsections (a) and (d) and adding Subsection (e) to read
15	15	as follows:
16	16	(a) Not later than July 15 of each year, using the estimate
17	17	of enrollment under Section 42.254, the commissioner shall review
18	18	the wealth per student of school districts in the state and shall
19	19	notify:
20	20	(1) each district with wealth per student exceeding
21	21	the equalized wealth level;
22	22	(2) each district to which the commissioner proposes
23	23	to annex property detached from a district notified under
24	24	Subdivision (1), if necessary, under Subchapter G; [and]
25	25	(3) each district to which the commissioner proposes
26	26	to reattach property previously detached from the district under
27	27	Subchapter G; and
28	28	(4) each district to which the commissioner proposes
29	29	to consolidate a district notified under Subdivision (1), if
30	30	necessary, under Subchapter H.
31	31	(d) Except as provided by Subsection (e), a [A] detachment
32	32	and annexation, reattachment, or consolidation under this chapter:
33	33	(1) is effective for Foundation School Program funding
34	34	purposes for the school year that begins in the calendar year
35	35	following the year in which the detachment and annexation,
36	36	reattachment, or consolidation is [agreed to or] ordered; and
37	37	(2) applies to the ad valorem taxation of property
38	38	beginning with the tax year in which the [agreement or] order is
39	39	effective.
40	40	(e) A consolidation or detachment and annexation agreed to
41	41	under Subchapter B or C:
42	42	(1) is effective for Foundation School Program funding
43	43	purposes for the school year that begins in the calendar year in
44	44	which the consolidation or detachment and annexation is agreed to;
45	45	and
46	46	(2) applies to the ad valorem taxation of property
47	47	beginning with the tax year in which the agreement is effective.
48	48	SECTION 2. Section 41.202(a), Education Code, is amended to
49	49	read as follows:
50	50	(a) For purposes of this subchapter, the taxable value of an
51	51	individual parcel or other item of property and the total taxable
52	52	value of property in a school district resulting from the
53	53	detachment of property from a district, [or] annexation of property
54	54	to that district, or reattachment of property to a district is
55	55	determined by applying the appraisal ratio for the appropriate
56	56	category of property determined under Subchapter M, Chapter 403,
57	57	Government Code, for the preceding tax year to the taxable value of
58	58	the detached, [or] annexed, or reattached property determined under
59	59	Title 1, Tax Code, for the preceding tax year.
60	60	SECTION 3. The heading to Section 41.203, Education Code,
61	61	is amended to read as follows:
62	62	Sec. 41.203. PROPERTY SUBJECT TO DETACHMENT AND ANNEXATION
63	63	OR REATTACHMENT.
64	64	SECTION 4. Section 41.203, Education Code, is amended by
65	65	adding Subsection (a-1) to read as follows:
66	66	(a-1) Any property detached and annexed under this
67	67	subchapter is subject to reattachment under Section 41.2065,
68	68	regardless of whether the property continues to satisfy the
69	69	limitation imposed under Subsection (a).
70	70	SECTION 5. Subchapter G, Chapter 41, Education Code, is
71	71	amended by adding Section 41.2065 to read as follows:
72	72	Sec. 41.2065. REATTACHMENT OF DETACHED AND ANNEXED
73	73	PROPERTY. (a) If property has been detached from a school district
74	74	and annexed to another school district by the commissioner under
75	75	this subchapter, the commissioner shall reattach the property to
76	76	the original school district if that district's wealth per student
77	77	for a subsequent school year is determined to be $10,000 or more
78	78	below each equalized wealth level specified by Section 41.002 that:
79	79	(1) applies to the district's maintenance and
80	80	operations tax effort; and
81	81	(2) would, if the district's wealth per student
82	82	exceeded that equalized wealth level, require the district to take
83	83	action to reduce the district's wealth per student under this
84	84	chapter.
85	85	(b) In determining the property to be reattached under this
86	86	section, the commissioner shall reattach one or more whole parcels
87	87	or items of property in ascending order of the taxable value of each
88	88	parcel or item, beginning with the parcel or item having the lowest
89	89	taxable value, until the district reaches a wealth per student
90	90	equal as nearly as possible to, but not exceeding, the lowest
91	91	equalized wealth level described by Subsection (a).
92	92	(c) The commissioner shall adopt rules necessary for the
93	93	reattachment of property under this section, including rules for
94	94	the reattachment of only a portion of a parcel or item of property
95	95	if reattachment of the entire parcel or item would increase the
96	96	district's wealth per student to an amount that is more than
97	97	permitted by this section.
98	98	SECTION 6. Section 41.208(a), Education Code, is amended to
99	99	read as follows:
100	100	(a) The commissioner shall order any detachments, [and]
101	101	annexations, and reattachments of property under this subchapter
102	102	not later than November 8 of each year.
103	103	SECTION 7. Section 41.209, Education Code, is amended to
104	104	read as follows:
105	105	Sec. 41.209. TREATMENT OF SUBDIVIDED PROPERTY. (a) If the
106	106	commissioner orders the detachment, [or] annexation, or
107	107	reattachment of a portion of a parcel or item of property under this
108	108	subchapter, the order shall specify the portion of the taxable
109	109	value of the property to be detached, [or] annexed, or reattached
110	110	and may, but need not, describe the specific area of the parcel or
111	111	item to be detached, [or] annexed, or reattached.
112	112	(b) If an order for the detachment, [or] annexation, or
113	113	reattachment of a portion of a parcel or item of property does not
114	114	describe the specific area of the parcel or item to be detached,
115	115	[or] annexed, or reattached, the commissioner, as soon as
116	116	practicable after issuing the order, shall determine the specific
117	117	area to be detached, [or] annexed, or reattached and shall certify
118	118	that determination to the appraisal district for the county in
119	119	which the property is located.
120	120	(c) If portions of a parcel or item of property are located
121	121	in two or more school districts as the result of a detachment, [or]
122	122	annexation, or reattachment, the parcel or item shall be appraised
123	123	for taxation as a unit, and the commissioner shall determine the
124	124	portion of the taxable value of the property that is located in each
125	125	of those school districts based on the square footage of the
126	126	property, or any other reasonable method adopted by the
127	127	commissioner.
128	128	SECTION 8. Section 41.210(b), Education Code, is amended to
129	129	read as follows:
130	130	(b) As soon as practicable after the detachment and
131	131	annexation or the reattachment of property, the chief appraiser of
132	132	the appraisal district in which the property is located shall send a
133	133	written notice of the detachment and annexation or the reattachment
134	134	to the owner of any property taxable in a different school district
135	135	as a result of the detachment and annexation or the reattachment.
136	136	The notice must include the name of the school district by which the
137	137	property is taxable after the detachment and annexation or the
138	138	reattachment.
139	139	SECTION 9. Section 41.211, Education Code, is amended to
140	140	read as follows:
141	141	Sec. 41.211. STUDENT ATTENDANCE. (a) A student who is a
142	142	resident of real property detached from a school district may
143	143	choose to attend school in that district or in the district to which
144	144	the property is annexed. For purposes of determining average daily
145	145	attendance under Section 42.005, the student shall be counted in
146	146	the district to which the property is annexed. If the student
147	147	chooses to attend school in the district from which the property is
148	148	detached, the state shall withhold any foundation school funds from
149	149	the district to which the property is annexed and shall allocate to
150	150	the district in which the student is attending school those funds
151	151	and the amount of funds equal to the difference between the state
152	152	funds the district is receiving for the student and the district's
153	153	cost in educating the student.
154	154	(b) A student who is a resident of real property reattached
155	155	to a school district may choose to attend school in that district or
156	156	in the district to which the property was previously annexed. For
157	157	purposes of determining average daily attendance under Section
158	158	42.005, the student shall be counted in the district to which the
159	159	property is reattached. If the student chooses to attend school in
160	160	the district to which the property was previously annexed, the
161	161	state shall withhold any foundation school funds from the district
162	162	to which the property is reattached and shall allocate to the
163	163	district in which the student is attending school those funds and
164	164	the amount of funds equal to the difference between the state funds
165	165	the district is receiving for the student and the district's cost in
166	166	educating the student.
167	167	SECTION 10. Section 41.212, Education Code, is amended to
168	168	read as follows:
169	169	Sec. 41.212. BOND TAXES. (a) Property detached from a
170	170	school district is released from the obligation for any tax to pay
171	171	principal and interest on bonds authorized by the district before
172	172	detachment. The property is subject to any tax to pay principal or
173	173	interest on bonds authorized by the district to which the property
174	174	is annexed whether authorized before or after annexation.
175	175	(b) Property reattached to a school district is released
176	176	from the obligation for any tax to pay principal and interest on
177	177	bonds authorized by the district the property was annexed to before
178	178	reattachment. The property is subject to any tax to pay principal
179	179	or interest on bonds authorized by the district to which the
180	180	property is reattached whether authorized before or after
181	181	reattachment.
182	182	SECTION 11. This Act takes effect immediately if it
183	183	receives a vote of two-thirds of all the members elected to each
184	184	house, as provided by Section 39, Article III, Texas Constitution.
185	185	If this Act does not receive the vote necessary for immediate
186	186	effect, this Act takes effect September 1, 2017.