H.B. No. 3610
AN ACT
relating to the applicability of certain laws to certain public
schools and certain requirements of a charter school that receives
certain tax exemptions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 12.1058(a), Education Code, is amended
to read as follows:
(a) An open-enrollment charter school is considered to be:
(1) a local government for purposes of Chapter 791,
Government Code;
(2) a local government for purposes of Chapter 2259,
Government Code, except that an open-enrollment charter school may
not issue public securities as provided by Section 2259.031(b),
Government Code;
(3) a political subdivision for purposes of Chapter
172, Local Government Code; [and]
(4) a local governmental entity for purposes of
Subchapter I, Chapter 271, Local Government Code;
(5) a political subdivision for purposes of Section
16.061, Civil Practice and Remedies Code, with respect to any
property purchased, leased, constructed, renovated, or improved
with state funds under Section 12.128 of this code; and
(6) a political subdivision for purposes of Section
11.11, Tax Code.
SECTION 2. Sections 12.128(a) and (a-1), Education Code,
are amended to read as follows:
(a) Property purchased with funds received by a charter
holder under Section 12.106 [after September 1, 2001]:
(1) is considered to be public property for all
purposes under state law;
(2) is property of this state held in trust by the
charter holder for the benefit of the students of the
open-enrollment charter school; [and]
(3) may be used only for a purpose for which a school
district may use school district property; and
(4) is exempt from ad valorem taxation as provided by
Section 11.11, Tax Code.
(a-1) Property leased with funds received by a charter
holder under Section 12.106 [after September 1, 2001]:
(1) is considered to be public property for all
purposes under state law;
(2) is property of this state held in trust by the
charter holder for the benefit of the students of the
open-enrollment charter school; [and]
(3) may be used only for a purpose for which a school
district may use school district property; and
(4) is exempt from ad valorem taxation as provided by
Section 11.11, Tax Code.
SECTION 3. Section 12.128, Education Code, is amended by
adding Subsection (a-2) to read as follows:
(a-2) The owner of property that receives a tax exemption
under Subsection (a) shall transfer the amount of tax savings from
the exemption to the tenant or reduce the common area maintenance
fee in a proportionate amount based upon the square footage of the
exempt portion of the property.
SECTION 4. Subchapter B, Chapter 11, Tax Code, is amended by
adding Section 11.211 to read as follows:
Sec. 11.211. REAL PROPERTY LEASED TO CERTAIN SCHOOLS. The
portion of real property that is leased to an independent school
district, community college district, or open-enrollment charter
school authorized by Subchapter C, D, or E, Chapter 12, Education
Code, is qualified and exempt from taxation pursuant to Sections
11.11 and 11.21 of this code if the portion of the real property
that is leased to the public school is:
(1) used exclusively by the public school for the
operation or administration of the school or the performance of
other educational functions of the school; and
(2) reasonably necessary for a purpose described in
Subdivision (1) as found by the school's governing body.
SECTION 5. The change in law made by this Act applies only
to ad valorem taxes imposed in a tax year that begins on or after the
effective date of this Act.
SECTION 6. This Act takes effect September 1, 2021.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3610 was passed by the House on May 8,
2021, by the following vote: Yeas 65, Nays 60, 2 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3610 was passed by the Senate on May
22, 2021, by the following vote: Yeas 19, Nays 11.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor