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.