EDUCATION CODE
SUBTITLE I. SCHOOL FINANCE AND FISCAL MANAGEMENT
CHAPTER 41. EQUALIZED WEALTH LEVEL
SUBCHAPTER A. GENERAL PROVISIONS
§ 41.001. DEFINITIONS.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
In this chapter:
(1) "Equalized wealth level" means the wealth per
student provided by Section 41.002.
(2) "Wealth per student" means the taxable value of
property, as determined under Subchapter M, Chapter 403, Government
Code, divided by the number of students in weighted average daily
attendance.
(3) "Weighted average daily attendance" has the
meaning assigned by Section 42.302.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 1999, 76th Leg., ch. 396, § 1.01, eff. Sept. 1,
1999.
§ 41.002. EQUALIZED WEALTH LEVEL.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) A school district may not have a wealth per student that
exceeds $305,000.
(b) For purposes of this chapter, the commissioner shall
adjust, in accordance with Section 42.2521, the taxable values of a
school district that, due to factors beyond the control of the board
of trustees, experiences a rapid decline in the tax base used in
calculating taxable values.
(c) Repealed by Acts 1999, 76th Leg., ch. 396, § 3.01(a),
eff. Sept. 1, 1999.
(d) Expired.
(e) Notwithstanding Subsection (a), and except as provided
by Subsection (g), in accordance with a determination of the
commissioner, the wealth per student that a school district may
have after exercising an option under Section 41.003(2) or (3) may
not be less than the amount needed to maintain state and local
revenue in an amount equal to state and local revenue per weighted
student for maintenance and operation of the district for the
1992-1993 school year less the district's current year distribution
per weighted student from the available school fund, other than
amounts distributed under Chapter 31, if the district imposes an
effective tax rate for maintenance and operation of the district
equal to the greater of the district's current tax rate or $1.50 on
the $100 valuation of taxable property.
(f) For purposes of Subsection (e), a school district's
effective tax rate is determined by dividing the total amount of
taxes collected by the district for the applicable school year less
any amounts paid into a tax increment fund under Chapter 311, Tax
Code, by the quotient of the district's taxable value of property,
as determined under Subchapter M, Chapter 403, Government Code,
divided by 100.
(g) The wealth per student that a district may have under
Subsection (e) is adjusted as follows:
AWPS = WPS X (((EWL/280,000 - 1) X DTR/1.5) + 1)
where:
"AWPS" is the district's wealth per student;
"WPS" is the district's wealth per student determined under
Subsection (e);
"EWL" is the equalized wealth level; and
"DTR" is the district's adopted maintenance and operations
tax rate for the current school year.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 1997, 75th Leg., ch. 1071, § 7, eff. Sept. 1,
1997; Acts 1999, 76th Leg., ch. 396, § 1.02, 3.01(a), eff. Sept.
1, 1999; Acts 2001, 77th Leg., ch. 1187, § 2.02, eff. Sept. 1,
2001; Acts 2001, 77th Leg., ch. 1187, § 2.03, eff. Sept. 1,
2002.
§ 41.0021. WEALTH PER STUDENT IN CERTAIN DISTRICTS NOT
SERVING ALL GRADES.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) Notwithstanding Section 41.002, for the 2003-2004
school year, a school district that in the 1999-2000 school year did
not offer each grade level from kindergarten through 12 may elect to
have its wealth per student determined under this section.
(b) In accordance with a determination of the commissioner,
the wealth per student that a school district to which this section
applies may have after exercising an option under Section 41.003(2)
or (3) is the amount needed to maintain state and local revenue in
an amount equal to state and local revenue per weighted student for
maintenance and operation of the district for the 1999-2000 school
year less the district's current year distribution per weighted
student from the available school fund, other than amounts
distributed under Chapter 31, if the district imposes an effective
tax rate for maintenance and operation of the district equal to the
district's tax rate for maintenance and operation for the 1999-2000
school year. For purposes of this subsection, a district's
effective tax rate is determined as provided by Section 41.002(f).
(c) The commissioner shall:
(1) compute the wealth per student levels under this
section using weighted average daily attendance as defined by
Section 42.302;
(2) notify each school district that is eligible to
have its wealth per student computed under this section; and
(3) establish a date by which a district must elect to
have its wealth per student computed under this section.
(d) A school district that elects to have its wealth per
student computed under this section:
(1) is not entitled to state aid to achieve the funding
levels permitted by Subsection (b);
(2) is not subject to a limitation on tuition under
Section 25.039;
(3) is not eligible for credit for tuition payments
under Section 41.124(b); and
(4) is not eligible for an adjustment to the district's
taxable value of property under Section 42.106.
(e) This section expires September 1, 2004.
Added by Acts 2001, 77th Leg., ch. 1156, § 2, eff. Sept. 1, 2001.
Amended by Acts 2003, 78th Leg., ch. 201, § 28(a), eff. Sept. 1,
2003.
§ 41.003. OPTIONS TO ACHIEVE EQUALIZED WEALTH LEVEL.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
A district with a wealth per student that exceeds the
equalized wealth level may take any combination of the following
actions to achieve the equalized wealth level:
(1) consolidation with another district as provided by
Subchapter B;
(2) detachment of territory as provided by Subchapter
C;
(3) purchase of average daily attendance credit as
provided by Subchapter D;
(4) education of nonresident students as provided by
Subchapter E; or
(5) tax base consolidation with another district as
provided by Subchapter F.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 1999, 76th Leg., ch. 396, § 1.03, eff. Sept. 1,
1999.
§ 41.0031. INCLUSION OF ATTENDANCE CREDITS AND
NONRESIDENTS IN WEIGHTED AVERAGE DAILY ATTENDANCE.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
In determining whether a school district has a wealth per
student less than or equal to the equalized wealth level, the
commissioner shall use:
(1) the district's final weighted average daily
attendance; and
(2) the number of attendance credits a district
purchases under Subchapter D or the number of nonresident students
a district educates under Subchapter E for a school year.
Added by Acts 1999, 76th Leg., ch. 396, § 1.04, eff. Sept. 1,
1999.
§ 41.004. ANNUAL REVIEW OF PROPERTY WEALTH.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(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 consolidate a district notified under Subdivision (1), if
necessary, under Subchapter H.
(b) If, before the dates provided by this subsection, a
district notified under Subsection (a)(1) has not successfully
exercised one or more options under Section 41.003 that reduce the
district's wealth per student to a level equal to or less than the
equalized wealth level, the commissioner shall order the detachment
of property from that district as provided by Subchapter G. If that
detachment will not reduce the district's wealth per student to a
level equal to or less than the equalized wealth level, the
commissioner may not detach property under Subchapter G but shall
order the consolidation of the district with one or more other
districts as provided by Subchapter H. An agreement under Section
41.003(1) or (2) must be executed not later than September 1
immediately following the notice under Subsection (a). An election
for an option under Section 41.003(3), (4), or (5) must be ordered
before September 1 immediately following the notice under
Subsection (a).
(c) A district notified under Subsection (a) may not adopt a
tax rate for the tax year in which the district receives the notice
until the commissioner certifies that the district has achieved the
equalized wealth level.
(d) A detachment and annexation or consolidation under this
chapter:
(1) is effective for Foundation School Program funding
purposes for the school year that begins in the calendar year in
which the detachment and annexation 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.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 1999, 76th Leg., ch. 396, § 1.05, eff. Sept. 1,
1999.
§ 41.005. COMPTROLLER AND APPRAISAL DISTRICT
COOPERATION.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
The chief appraiser of each appraisal district and the
comptroller shall cooperate with the commissioner and school
districts in implementing this chapter.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.006. RULES.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) The commissioner may adopt rules necessary for the
implementation of this chapter. The rules may provide for the
commissioner to make necessary adjustments to the provisions of
Chapter 42, including providing for the commissioner to make an
adjustment in the funding element established by Section 42.302, at
the earliest date practicable, to the amount the commissioner
believes, taking into consideration options exercised by school
districts under this chapter and estimates of student enrollments,
will match appropriation levels.
(b) As necessary for the effective and efficient
administration of this chapter, the commissioner may modify
effective dates and time periods for actions described by this
chapter.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 1997, 75th Leg., ch. 1071, § 8, eff. Sept. 1,
1997.
§ 41.007. COMMISSIONER TO APPROVE SUBSEQUENT BOUNDARY
CHANGES.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
A school district that is involved in an action under this
chapter that results in boundary changes to the district or in the
consolidation of tax bases is subject to consolidation, detachment,
or annexation under Chapter 13 only if the commissioner certifies
that the change under Chapter 13 will not result in a district with
a wealth per student that exceeds the equalized wealth level.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.008. HOMESTEAD EXEMPTIONS.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) The governing board of a school district that results
from consolidation under this chapter, including a consolidated
taxing district under Subchapter F, for the tax year in which the
consolidation occurs may determine whether to adopt a homestead
exemption provided by Section 11.13, Tax Code, and may set the
amount of the exemption, if adopted, at any time before the school
district adopts a tax rate for that tax year. This section applies
only to an exemption that the governing board of a school district
is authorized to adopt or change in amount under Section 11.13, Tax
Code.
(b) This section prevails over any inconsistent provision
of Section 11.13, Tax Code, or other law.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.009. TAX ABATEMENTS.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) A tax abatement agreement executed by a school district
that is involved in consolidation or in detachment and annexation
of territory under this chapter is not affected and applies to the
taxation of the property covered by the agreement as if executed by
the district within which the property is included.
(b) The commissioner shall determine the wealth per student
of a school district under this chapter as if any tax abatement
agreement executed by a school district on or after May 31, 1993,
had not been executed.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.010. TAX INCREMENT OBLIGATIONS.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
The payment of tax increments under Chapter 311, Tax Code, is
not affected by the consolidation of territory or tax bases or by
annexation under this chapter. In each tax year a school district
paying a tax increment from taxes on property over which the
district has assumed taxing power is entitled to retain the same
percentage of the tax increment from that property that the
district in which the property was located before the consolidation
or annexation could have retained for the respective tax year.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.011. CONTINGENCY.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) If any of the options described by Section 41.003 as
applied to a school district are held invalid by a final decision of
a court of competent jurisdiction, a school district is entitled to
exercise any of the remaining valid options in accordance with a
schedule approved by the commissioner.
(b) If a final order of a court of competent jurisdiction
should hold each of the options provided by Section 41.003 invalid,
the commissioner shall act under Subchapter G or H to achieve the
equalized wealth level only after notice and hearing is afforded to
each school district affected by the order. The commissioner shall
adopt a plan that least disrupts the affected school districts. If
because the exigency to adopt a plan prevents the commissioner from
giving a reasonable time for notice and hearing, the commissioner
shall timely give notice to and hold a hearing for the affected
school districts, but in no event less than 30 days from time of
notice to the date of hearing.
(c) If a final order of a court of competent jurisdiction
should hold an option provided by Section 41.003 invalid and order a
refund to a district of any amounts paid by a district choosing that
option, the amount shall be refunded but held in reserve and not
expended by the district until released by order of the
commissioner. The commissioner shall order the release immediately
on the commissioner's determination that, through one of the means
provided by law, the district has achieved the equalized wealth
level. The amount released shall be deducted from any state aid
payable to the district according to a schedule adopted by the
commissioner.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.012. DATE OF ELECTIONS.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
An election under this chapter for voter approval of an
agreement entered by the board of trustees shall be held on a
Tuesday or Saturday not more than 45 days after the date of the
agreement. Section 41.001, Election Code, does not apply to the
election.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.013. PROCEDURE.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) Except as provided by Subchapter G, a decision of the
commissioner under this chapter is appealable under Section 7.057.
(b) Any order of the commissioner issued under this chapter
shall be given immediate effect and may not be stayed or enjoined
pending any appeal.
(c) Chapter 2001, Government Code, does not apply to a
decision of the commissioner under this chapter.
(d) On the request of the commissioner, the secretary of
state shall publish any rules adopted under this chapter in the
Texas Register and the Texas Administrative Code.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
SUBCHAPTER B. CONSOLIDATION BY AGREEMENT
§ 41.031. AGREEMENT.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
The governing boards of any two or more school districts may
consolidate the districts by agreement in accordance with this
subchapter to establish a consolidated district with a wealth per
student equal to or less than the equalized wealth level. The
agreement is not effective unless the commissioner certifies that
the consolidated district, as a result of actions taken under this
chapter, will have a wealth per student equal to or less than the
equalized wealth level.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.032. GOVERNING LAW.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
Except to the extent modified by the terms of the agreement,
the consolidated district is governed by the applicable provisions
of Subchapter D, Chapter 13, other than a provision requiring
consolidating districts to be contiguous. The agreement may not be
inconsistent with the requirements of this subchapter.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.033. GOVERNANCE PLAN.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) The agreement among the consolidating districts may
include a governance plan designed to preserve community-based and
site-based decision making within the consolidated district,
including the delegation of specific powers of the governing board
of the district other than the power to levy taxes, including a
provision authorized by Section 13.158(b).
(b) The governance plan may provide for a transitional board
of trustees during the first year after consolidation, but
beginning with the next year the board of trustees must be elected
from within the boundaries of the consolidated district. If the
consolidating districts elect trustees from single-member
districts, the consolidated district must adopt a plan to elect its
board of trustees from single-member districts.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 2003, 78th Leg., ch. 201, § 29, eff. Sept. 1,
2003.
§ 41.034. INCENTIVE AID.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) For the first and second school years after creation of
a consolidated district under this subchapter, the commissioner
shall adjust allotments to the consolidated district to the extent
necessary to preserve the effects of an adjustment under Section
42.102, 42.103, or 42.105 to which either of the consolidating
districts would have been entitled but for the consolidation.
(b) Except as provided by Subsection (c), a district
receiving incentive aid payments under this section is not entitled
to incentive aid under Subchapter G, Chapter 13.
(c) Four or more districts that consolidate into one
district under this subchapter within a period of one year may elect
to receive incentive aid under this section or to receive incentive
aid for not more than five years under Subchapter G, Chapter 13.
Incentive aid under this subsection may not provide the
consolidated district with more revenue in state and local funds
than the district would receive at the equalized wealth level.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
SUBCHAPTER C. DETACHMENT AND ANNEXATION BY AGREEMENT
§ 41.061. AGREEMENT.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) By agreement of the governing boards of two school
districts, territory may be detached from one of the districts and
annexed to the other district if, after the action:
(1) the wealth per student of the district from which
territory is detached is equal to or less than the equalized wealth
level; and
(2) the wealth per student of the district to which
territory is annexed is not greater than the greatest level for
which funds are provided under Subchapter F, Chapter 42.
(b) The agreement is not effective unless the commissioner
certifies that, after all actions taken under this chapter, the
wealth per student of each district involved will be equal to or
less than the applicable level permitted by Subsection (a).
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.062. GOVERNING LAW.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
Except to the extent of any conflict with this chapter and
except for any requirement that detached property must be annexed
to a school district that is contiguous to the detached territory,
the annexation and detachment is governed by Chapter 13.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.063. ALLOCATION OF APPRAISED VALUE OF DIVIDED UNIT.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
If portions of a parcel or other item of property are located
in different school districts as a result of a detachment and
annexation under this subchapter, the parcel or other item of
property shall be appraised for taxation as a unit, and the
agreement shall allocate the taxable value of the property between
the districts.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.064. ALLOCATION OF INDEBTEDNESS.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
The annexation agreement may allocate to the receiving
district any portion of the indebtedness of the district from which
the territory is detached, and the receiving district assumes and
is liable for the allocated indebtedness.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.065. NOTICE.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
As soon as practicable after the agreement is executed, the
districts involved shall notify each affected property owner and
the appraisal district in which the affected property is located.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
SUBCHAPTER D. PURCHASE OF ATTENDANCE CREDIT
§ 41.091. AGREEMENT.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
A school district with a wealth per student that exceeds the
equalized wealth level may execute an agreement with the
commissioner to purchase attendance credits in an amount
sufficient, in combination with any other actions taken under this
chapter, to reduce the district's wealth per student to a level that
is equal to or less than the equalized wealth level.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.092. CREDIT.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) For each credit purchased, the weighted average daily
attendance of the purchasing school district is increased by one
student in weighted average daily attendance for purposes of
determining whether the district exceeds the equalized wealth
level.
(b) A credit is not used in determining a school district's
scholastic population, average daily attendance, or weighted
average daily attendance for purposes of Chapter 42 or 43.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.093. COST.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) The cost of each credit is an amount equal to the greater
of:
(1) the amount of the district's maintenance and
operations tax revenue per student in weighted average daily
attendance for the school year for which the contract is executed;
or
(2) the amount of the statewide district average of
maintenance and operations tax revenue per student in weighted
average daily attendance for the school year preceding the school
year for which the contract is executed.
(b) For purposes of this section, a school district's
maintenance and operations tax revenue does not include any amounts
paid into a tax increment fund under Chapter 311, Tax Code.
(c) The cost of an attendance credit for a school district
is computed using the final tax collections of the district.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 1997, 75th Leg., ch. 592, § 1.02, eff. Sept. 1,
1997; Acts 1997, 75th Leg., ch. 1071, § 9, eff. Sept. 1, 1997;
Acts 1999, 76th Leg., ch. 396, § 1.06, eff. Sept. 1, 1999.
§ 41.094. PAYMENT.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) A school district shall pay for credits purchased in
equal monthly payments as determined by the commissioner beginning
February 15 and ending August 15 of the school year for which the
agreement is in effect.
(a-1) Expired.
(b) Receipts shall be deposited in the state treasury and
may be used only for foundation school program purposes.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.095. DURATION.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
An agreement under this section is valid for one school year
and, subject to Section 41.096, may be renewed annually.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.096. VOTER APPROVAL.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) After first executing an agreement under this section,
the board of trustees shall order and conduct an election, in the
manner provided by Sections 13.003(d)-(g), to obtain voter approval
of the agreement.
(b) The ballot shall be printed to permit voting for or
against the proposition: "Authorizing the board of trustees of
________ School District to purchase attendance credits from the
state with local tax revenues."
(c) The proposition is approved if the proposition receives
a favorable vote of a majority of the votes cast. If the
proposition is approved, the agreement executed by the board is
ratified, and the board has continuing authority to execute
agreements under this subchapter on behalf of the district without
further voter approval.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.097. CREDIT FOR APPRAISAL COSTS.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) The total amount required under Section 41.093 for a
district to purchase attendance credits under this subchapter for
any school year is reduced by an amount equal to the product of the
district's costs under Section 6.06, Tax Code, for the central
appraisal district in which it participates multiplied by a
percentage that is computed by dividing the total amount required
under Section 41.093 by the total amount of taxes imposed in the
district for that year less any amounts paid into a tax increment
fund under Chapter 311, Tax Code.
(b) A school district is entitled to a reduction under
Subsection (a) beginning with the 1996-1997 school year. For that
school year, the reduction to which a district is entitled is the
sum of the amounts computed under Subsection (a) for the 1993-1994,
1994-1995, 1995-1996, and 1996-1997 school years. If that amount
exceeds the total amount required under Section 41.093 for the
1996-1997 school year, the difference is carried forward and the
total amount required under Section 41.093 is reduced each
subsequent school year until the total amount of the credit has been
applied to such reductions.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 1997, 75th Leg., ch. 1071, § 10, eff. Sept. 1,
1997.
§ 41.098. EARLY AGREEMENT CREDIT.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
A district that submits a signed agreement under this
subchapter to the commissioner before September 1 of the school
year for which the agreement is made may reduce the total amount
required to be paid for attendance credits under Section 41.093 by
the lesser of four percent or $80 per credit purchased.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.099. LIMITATION.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) Sections 41.002(e), 41.094, 41.097, and 41.098 apply
only to a district that:
(1) executes an agreement to purchase all attendance
credits necessary to reduce the district's wealth per student to
the equalized wealth level;
(2) executes an agreement to purchase attendance
credits and an agreement under Subchapter E to contract for the
education of nonresident students who transfer to and are educated
in the district but who are not charged tuition; or
(3) executes an agreement under Subchapter E to
contract for the education of nonresident students:
(A) to an extent that does not provide more than
10 percent of the reduction in wealth per student required for the
district to achieve a wealth per student that is equal to or less
than the equalized wealth level; and
(B) under which all revenue paid by the district
to other districts, in excess of the reduction in state aid that
results from counting the weighted average daily attendance of the
students served in the contracting district, is required to be used
for funding a consortium of at least three districts in a county
with a population of less than 40,000 that is formed to support a
technology initiative.
(b) A district that executes an agreement under Subsection
(a)(3) must pay full market value for any good or service the
district obtains through the consortium.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 1997, 75th Leg., ch. 1071, § 11, eff. Sept. 1,
1997.
SUBCHAPTER E. EDUCATION OF NONRESIDENT STUDENTS
§ 41.121. AGREEMENT.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
The board of trustees of a district with a wealth per student
that exceeds the equalized wealth level may execute an agreement to
educate the students of another district in a number that, when the
weighted average daily attendance of the students served is added
to the weighted average daily attendance of the contracting
district, is sufficient, in combination with any other actions
taken under this chapter, to reduce the district's wealth per
student to a level that is equal to or less than the equalized
wealth level. The agreement is not effective unless the
commissioner certifies that the transfer of weighted average daily
attendance will not result in any of the contracting districts'
wealth per student being greater than the equalized wealth level
and that the agreement requires an expenditure per student in
weighted average daily attendance that is at least equal to the
amount per student in weighted average daily attendance required
under Section 41.093, unless it is determined by the commissioner
that a quality educational program can be delivered at a lesser
amount. The commissioner may approve a special financial
arrangement between districts if that arrangement serves the best
educational interests of the state.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.122. VOTER APPROVAL.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) After first executing an agreement under this
subchapter other than an agreement under Section 41.125, the board
of trustees of the district that will be educating nonresident
students shall order and conduct an election, in the manner
provided by Sections 13.003(d)-(g), to obtain voter approval of the
agreement.
(b) The ballot shall be printed to permit voting for or
against the proposition: "Authorizing the board of trustees of
________ School District to educate students of other school
districts with local tax revenues."
(c) The proposition is approved if the proposition receives
a favorable vote of a majority of the votes cast. If the
proposition is approved, the agreement executed by the board is
ratified, and the board has continuing authority to execute
agreements under this subchapter on behalf of the district without
further voter approval.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 2003, 78th Leg., ch. 61, § 5, eff. Sept. 1, 2003.
§ 41.123. WADA COUNT.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
For purposes of Chapter 42, students served under an
agreement under this subchapter are counted only in the weighted
average daily attendance of the district providing the services,
except that students served under an agreement authorized by
Section 41.125 are counted in a manner determined by the
commissioner.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 2003, 78th Leg., ch. 61, § 6, eff. Sept. 1, 2003.
§ 41.124. TRANSFERS.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) The board of trustees of a school district with a wealth
per student that exceeds the equalized wealth level may reduce the
district's wealth per student by serving nonresident students who
transfer to the district and are educated by the district but who
are not charged tuition. A district that exercises the option under
this subsection is not required to execute an agreement with the
school district in which a transferring student resides and must
certify to the commissioner that the district has not charged or
received tuition for the transferring students.
(b) A school district with a wealth per student that exceeds
the equalized wealth level that pays tuition to another school
district for the education of students that reside in the district
may apply the amount of tuition paid toward the cost of the option
chosen by the district to reduce its wealth per student. The amount
applied under this subsection may not exceed the amount determined
under Section 41.093 as the cost of an attendance credit for the
district. The commissioner may require any reports necessary to
document the tuition payments.
(c) A school district that receives tuition for a student
from a school district with a wealth per student that exceeds the
equalized wealth level may not claim attendance for that student
for purposes of Chapters 42 and 46 and the technology allotment
under Section 31.021(b)(2).
Added by Acts 1999, 76th Leg., ch. 396, § 1.07, eff. Sept. 1,
1999.
§ 41.125. CAREER AND TECHNOLOGY EDUCATION PROGRAMS.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) The board of trustees of a school district with a wealth
per student that exceeds the equalized wealth level may reduce the
district's wealth per student by executing an agreement to provide
students of one or more other districts with career and technology
education through a program designated as an area program for
career and technology education.
(b) The agreement is not effective unless the commissioner
certifies that:
(1) implementation of the agreement will not result in
any of the affected districts' wealth per student being greater
than the equalized wealth level; and
(2) the agreement requires the district with a wealth
per student that exceeds the equalized wealth level to make
expenditures benefiting students from other districts in an amount
at least equal to the amount that would be required for the district
to purchase the number of attendance credits under Subchapter D
necessary, in combination with any other actions taken under this
chapter other than an action under this section, to reduce the
district's wealth per student to a level that is equal to or less
than the equalized wealth level.
Added by Acts 2003, 78th Leg., ch. 61, § 7, eff. Sept. 1, 2003.
SUBCHAPTER F. TAX BASE CONSOLIDATION
§ 41.151. AGREEMENT.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
The board of trustees of two or more school districts may
execute an agreement to conduct an election on the creation of a
consolidated taxing district for the maintenance and operation of
the component school districts. The agreement is subject to
approval by the commissioner. The agreement is not effective
unless the commissioner certifies that the consolidated taxing
district will have a wealth per student equal to or less than the
equalized wealth level after all actions taken under this chapter.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.152. DATE OF ELECTION.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
Any agreement under this subchapter must provide for the
ordering of an election to be held on the same date in each
district.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.153. PROPOSITION.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) The ballot shall be printed to permit voting for or
against the proposition: "Creation of a consolidated taxing
district composed of the territory of _________________________
school districts, and authorizing the levy, assessment, and
collection of annual ad valorem taxes for the maintenance of the
public free schools within that taxing district at a rate not to
exceed $_________ on the $100 valuation of taxable property."
(b) The rate to be included in the proposition shall be
provided by the agreement among the districts but may not exceed the
maximum rate provided by law for independent school districts.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.154. APPROVAL.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
The proposition is approved only if the proposition receives
a favorable vote of the majority of the votes cast within each
participating school district.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.155. CONSOLIDATED TAXING DISTRICT.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
A consolidated taxing district is a school district
established for the limited purpose of exercising the taxing power
authorized by Section 3, Article VII, Texas Constitution, and
distributing the revenue to its component school districts.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.156. GOVERNANCE.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) The consolidated taxing district is governed by the
boards of the component school districts acting jointly.
(b) Any action taken by the joint board must receive a
favorable vote of a majority of each component district's board of
trustees.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.157. MAINTENANCE TAX.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) The joint board shall levy a maintenance tax for the
benefit of the component school districts not later than September
1 of each year or as soon thereafter as practicable.
(b) Each component district shall bear a share of the costs
of assessing and collecting taxes in proportion to the component
district's share of weighted average daily attendance in the
consolidated taxing district.
(c) A component district may not levy an ad valorem tax for
the maintenance and operation of the schools.
(d) Notwithstanding Section 45.003, the consolidated taxing
district may levy, assess, and collect a maintenance tax for the
benefit of the component districts at a rate that exceeds $1.50 per
$100 valuation of taxable property to the extent necessary to pay
contracted obligations on the lease purchase of permanent
improvements to real property entered into on or before May 12,
1993. The proposition to impose taxes at the necessary rate must be
submitted to the voters in the manner provided by Section 45.003.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.158. REVENUE DISTRIBUTION.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
The consolidated taxing district shall distribute
maintenance tax revenue to the component districts on the basis of
the number of students in weighted average daily attendance in the
component districts.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.159. TAXES OF COMPONENT DISTRICTS.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) The governing board of a component school district of a
consolidated taxing district that has consolidated for maintenance
and operation purposes only may issue bonds and levy, pledge, and
collect ad valorem taxes within that component district sufficient
to pay the principal of and interest on those bonds as provided by
Chapter 45.
(b) A component district levying an ad valorem tax under
this section or Section 41.160(b)(1) is entitled to the guaranteed
yield provided by Subchapter F, Chapter 42, for that portion of its
tax rate that, when added to the maintenance tax levied by the
consolidated taxing unit, does not exceed the limitation provided
by Section 42.303.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.160. OPTIONAL TOTAL TAX BASE CONSOLIDATION.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) An agreement executed under Section 41.151 may provide
for total tax base consolidation instead of consolidation for
maintenance and operation purposes only.
(b) Under an agreement providing for total tax base
consolidation:
(1) the component districts may not levy maintenance
or bond taxes, except to the extent necessary to retire bonds and
other obligations issued before the effective date of the
consolidation;
(2) the joint board may issue bonds and levy, pledge,
and collect ad valorem taxes sufficient to pay the principal of and
interest on those bonds, and issue refunding bonds, as provided by
Chapter 45 for independent school districts; and
(3) to the end of the ballot proposition required
under Section 41.153(a) shall be added ", and further to create a
consolidated tax base for the repayment of all bonded indebtedness
issued by the joint board of the taxing district after the effective
date of the consolidation and to authorize the joint board to levy,
pledge, and collect ad valorem taxes at a rate sufficient to pay the
principal of and interest on those bonds."
(c) Under an agreement providing for total tax base
consolidation:
(1) the component districts may provide for the
consolidated taxing district to assume all of the indebtedness of
all component districts; and
(2) to the end of the ballot proposition required by
Section 41.153(a) shall be added ", and further to create a
consolidated tax base for the repayment of all bonded indebtedness
issued by the joint board of the taxing district or previously
issued by the component school districts and to authorize the joint
board to levy, pledge, and collect ad valorem taxes at a rate
sufficient to pay the principal of and interest on those bonds."
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
SUBCHAPTER G. DETACHMENT AND ANNEXATION BY COMMISSIONER
§ 41.201. DEFINITION. In this subchapter, "mineral
property" means a real property mineral interest that has been
severed from the surface estate by a mineral lease creating a
determinable fee or by a conveyance that creates an interest
taxable separately from the surface estate. A mineral property
includes each royalty interest, working interest, or other
undivided interest in the mineral property.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.202. DETERMINATION OF TAXABLE VALUE.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(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 or annexation of property to that
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 property determined under
Title 1, Tax Code, for the preceding tax year.
(b) For purposes of this subchapter, the taxable value of
all or a portion of a parcel or item of real property includes the
taxable value of personal property having taxable situs at the same
location as the real property.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.203. PROPERTY SUBJECT TO DETACHMENT AND ANNEXATION.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) Only the following property may be detached and annexed
under this subchapter:
(1) a mineral property;
(2) real property used in the operation of a public
utility, including a pipeline, pipeline gathering system, or
railroad or other rail system; and
(3) real property used primarily for industrial or
other commercial purposes, other than property used primarily for
agriculture or for residential purposes.
(b) If a final judgment of a court determines that a mineral
interest may not be annexed and detached as provided by this
subchapter without an attendant annexation and detachment of the
surface estate or any other interest in the same land, the
detachment and annexation of a mineral interest under this
subchapter includes the surface estate and each other interest in
the land covered by the mineral interest.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.204. TAXATION OF PERSONAL PROPERTY.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
Personal property having a taxable situs at the same location
as real property detached and annexed under this subchapter is
taxable by the school district to which the real property is
annexed.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.205. DETACHMENT OF PROPERTY.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) The commissioner shall detach property under this
section from each school district from which the commissioner is
required under Section 41.004 to detach property under this
subchapter.
(b) The commissioner shall detach from each school district
covered by Subsection (a) one or more whole parcels or items of
property in descending order of the taxable value of each parcel or
item, beginning with the parcel or item having the greatest taxable
value, until the school district's wealth per student is equal to or
less than the equalized wealth level, except as otherwise provided
by Subsection (c).
(c) If the detachment of whole parcels or items of property,
as provided by Subsection (a) would result in a district's wealth
per student that is less than the equalized wealth level by more
than $10,000, the commissioner may not detach the last parcel or
item of property and shall detach the next one or more parcels or
items of property in descending order of taxable value that would
result in the school district having a wealth per student that is
equal to or less than the equalized wealth level by not more than
$10,000.
(d) Notwithstanding Subsections (a), (b), and (c), the
commissioner may detach only a portion of a parcel or item of
property if:
(1) it is not possible to reduce the district's wealth
per student to a level that is equal to or less than the equalized
wealth level under this subchapter unless some or all of the parcel
or item of property is detached and the detachment of the whole
parcel or item would result in the district from which it is
detached having a wealth per student that is less than the equalized
wealth level by more than $10,000; or
(2) the commissioner determines that a partial
detachment of that parcel or item of property is preferable to the
detachment of one or more other parcels or items having a lower
taxable value in order to minimize the number of parcels or items of
property to be detached consistent with the purposes of this
chapter.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.206. ANNEXATION OF PROPERTY.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) The commissioner shall annex property detached under
Section 41.205 to school districts eligible for annexation in
accordance with this section. A school district is eligible for
annexation of property to it under this subchapter only if, before
any detachments or annexations are made in a year, the district's
wealth per student is less than the greatest level for which funds
are provided under Subchapter F, Chapter 42.
(b) Property may be annexed to a school district without
regard to whether the property is contiguous to other property in
that district.
(c) The commissioner shall annex property detached from
school districts beginning with the property detached from the
school district with the greatest wealth per student before
detachment, and continuing with the property detached from each
other school district in descending order of the district's wealth
per student before detachment.
(d) The commissioner shall annex the parcels or items of
property detached from a school district to other school districts
that are eligible for annexation of property in descending order of
the taxable value of each parcel or item according to the following
priorities:
(1) first, to the eligible school districts assigned
to the same county as the school district from which the property is
detached whose total adopted tax rate for the preceding tax year
does not exceed by more than $0.15 the total tax rate adopted for
that year by the school district from which the property is
detached;
(2) second, to the eligible school districts served by
the same regional education service center as the district from
which the property is detached whose total adopted tax rate for the
preceding tax year does not exceed by more than $0.10 the total tax
rate adopted for that year by the school district from which the
property is detached; and
(3) third, to other eligible school districts whose
total adopted tax rate for the preceding tax year does not exceed by
more than $0.05 the total tax rate adopted for that year by the
school district from which the property is detached.
(e) If the districts identified by Subsection (d) for a
school district are insufficient to annex all the property detached
from the school district, the commissioner shall increase, for
purposes of this section, all the maximum difference in tax rates
allowed under Subsection (d) in increments of $0.01 until the
districts are identified that are sufficient to annex all the
property detached from the district.
(f) If only one school district is eligible to annex
property detached from a school district within a priority group
established by Subsections (d) and (e), the commissioner shall
annex property to that district until it reaches a wealth per
student equal as nearly as possible to the greatest level for which
funds are provided under Subchapter F, Chapter 42, by annexing
whole parcels or items of property. Any remaining detached
property shall be annexed to eligible school districts in the next
priority group as provided by this section.
(g) If more than one school district is eligible to annex
property detached from a school district within a priority group
established by Subsections (d) and (e), the commissioner shall
first annex property to the district within the priority group to
which could be annexed the most taxable value of property without
increasing its wealth per student above the greatest level for
which funds are provided under Subchapter F, Chapter 42, until that
district reaches a wealth per student equal as nearly as possible to
the greatest level for which funds are provided under Subchapter F,
Chapter 42, by annexing whole parcels or items of property. Then
any additional detached property shall be annexed in the same
manner to other eligible school districts in the same priority
group in descending order of capacity to receive taxable value of
annexed property without increasing the district's wealth per
student above the greatest level for which funds are provided under
Subchapter F, Chapter 42. If every school district in a priority
group reaches a wealth per student equal to the greatest level for
which funds are provided under Subchapter F, Chapter 42, as nearly
as possible, the remaining detached property shall be annexed to
school districts in the next priority group in the manner provided
by this section.
(h) For purposes of this section, a portion of a parcel or
item of property detached in that subdivided form from a school
district is treated as a whole parcel or item of property.
(i) The commissioner may order the annexation of a portion
of a parcel or item of property, including a portion of property
treated as a whole parcel or item under Subsection (h), if:
(1) the annexation of the whole parcel or item would
result in the district eligible to receive it in the appropriate
priority order provided by this section having a wealth per student
greater than $10,000 more than the greatest level for which funds
are provided under Subchapter F, Chapter 42; or
(2) the commissioner determines that annexation of
portions of the parcel or item would reduce disparities in district
wealth per student more efficiently than would be possible if the
parcel or item were annexed as a whole.
(j) The commissioner may modify the priorities established
by this section as the commissioner considers reasonable to
minimize or reduce the number of school districts to which the
property detached from a school district is annexed, to minimize or
reduce the geographic dispersal of property in a school district,
to minimize or reduce disparities in school district wealth per
student that would otherwise result, or to minimize or reduce any
administrative burden or expense.
(k) For purposes of this section, a school district is
assigned to a county if the school district is assigned to that
county in the 1992-1993 Texas School Directory published by the
Central Education Agency.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.207. LIMITATIONS ON DETACHMENT AND ANNEXATION.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
The commissioner may detach and annex property under this
subchapter only if:
(1) the property is not exempt from ad valorem
taxation under Section 11.20 or 11.21, Tax Code; and
(2) the property does not contain a building or
structure owned by the United States, this state, or a political
subdivision of this state that is exempt from ad valorem taxation
under law.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.208. ORDERS AND NOTICE.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) The commissioner shall order any detachments and
annexations of property under this subchapter not later than
November 8 of each year.
(b) As soon as practicable after issuing the order under
Subsection (a), the commissioner shall notify each affected school
district and the appraisal district in which the affected property
is located of the determination.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.209. TREATMENT OF SUBDIVIDED PROPERTY.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) If the commissioner orders the detachment or annexation
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 and may, but need not, describe
the specific area of the parcel or item to be detached or annexed.
(b) If an order for the detachment or annexation 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, the
commissioner, as soon as practicable after issuing the order, shall
determine the specific area to be detached or annexed 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, 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.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.210. DUTIES OF CHIEF APPRAISER.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) The chief appraiser of each appraisal district shall
cooperate with the commissioner in administering this subchapter.
The commissioner may require the chief appraiser to submit any
reports or provide any information available to the chief appraiser
in the form and at the times required by the commissioner.
(b) As soon as practicable after the detachment and
annexation of property, the chief appraiser of the appraisal
district for the school district from which the property is
detached shall send a written notice of the detachment and
annexation to the owner of any property taxable in a different
school district as a result of the detachment and annexation. The
notice must include the name of the school district by which the
property is taxable after the detachment and annexation.
(c) The commissioner may reimburse an appraisal district
for any costs incurred in administering this subchapter and may
condition the reimbursement or the amount of the reimbursement on
the timely submission of reports or information required by the
commissioner or the satisfactory performance of any other action
required or requested by the commissioner.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.211. STUDENT ATTENDANCE.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
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.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.212. BOND TAXES.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
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.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.213. DETERMINATION BY COMMISSIONER FINAL.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
A decision or determination of the commissioner under this
subchapter is final and not appealable.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
SUBCHAPTER H. CONSOLIDATION BY COMMISSIONER
§ 41.251. COMMISSIONER ORDER.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
If the commissioner is required under Section 41.004 to order
the consolidation of districts, the consolidation is governed by
this subchapter. The commissioner's order shall be effective on a
date determined by the commissioner, but not later than the
earliest practicable date after November 8.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.252. SELECTION CRITERIA.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) In selecting the districts to be consolidated with a
district that has a property wealth greater than the equalized
wealth level, the commissioner shall select one or more districts
with a wealth per student that, when consolidated, will result in a
consolidated district with a wealth per student equal to or less
than the equalized wealth level. In achieving that result, the
commissioner shall give priority to school districts in the
following order:
(1) first, to the contiguous district that has the
lowest wealth per student and is located in the same county;
(2) second, to the district that has the lowest wealth
per student and is located in the same county;
(3) third, to a contiguous district with a property
wealth below the equalized wealth level that has requested the
commissioner that it be considered in a consolidation plan;
(4) fourth, to include as few districts as possible
that fall below the equalized wealth level within the consolidation
order that have not requested the commissioner to be included;
(5) fifth, to the district that has the lowest wealth
per student and is located in the same regional education service
center area; and
(6) sixth, to a district that has a tax rate similar to
that of the district that has a property wealth greater than the
equalized wealth level.
(b) The commissioner may not select a district that has been
created as a result of consolidation by agreement under Subchapter
B to be consolidated under this subchapter with a district that has
a property wealth greater than the equalized wealth level.
(c) In applying the selection criteria specified by
Subsection (a), if more than two districts are to be consolidated,
the commissioner shall select the third and each subsequent
district to be consolidated by treating the district that has a
property wealth greater than the equalized wealth level and the
district or districts previously selected for consolidation as one
district.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.253. GOVERNANCE.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) Until the initial trustees elected as provided by
Subsection (b) have qualified and taken office, a district
consolidated under this subchapter is governed by a transitional
board of trustees consisting of the board of trustees of the
district having the greatest student membership on the last day of
the school year preceding the consolidation plus one member of the
board of trustees of each other consolidating district selected by
that board.
(b) The transitional board of trustees shall divide the
consolidated district into nine single-member trustee districts in
accordance with the procedures provided by Section 11.052. The
transitional board shall order an election for the initial board of
trustees to be held on the first February uniform election date
after the effective date of a consolidation order.
(c) Members of the board of trustees of a consolidated
district serve staggered terms of office for four years.
(d) Section 13.156 applies to districts consolidated under
this subchapter.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 2001, 77th Leg., ch. 340, § 3, eff. Sept. 1,
2001.
§ 41.254. DISSOLUTION OF CONSOLIDATED DISTRICT.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
(a) If the legislature abolishes ad valorem taxes for public
school maintenance and operations and adopts another method of
funding public education, the board of trustees of a consolidated
district created under this subchapter may dissolve the
consolidated district, provided that the dissolution is approved by
a majority of those voters residing within the district
participating in an election called for the purpose of approving
the dissolution of the consolidated school district.
(b) If a consolidated district is dissolved, each of the
former districts is restored as a separate district and is
classified as an independent district.
(c) Title to real property of the consolidated district is
allocated to the restored district in which the property is
located. Title to proportionate shares of the fund balances and
personal property of the consolidated district, as determined by
Subsection (e), are allocated to each restored district.
(d) Each of the restored districts assumes and is liable
for:
(1) indebtedness of the consolidated district that
relates to real property allocated to the district; and
(2) a proportionate share, as determined by Subsection
(e), of indebtedness of the consolidated district that does not
relate to real property.
(e) A restored district's proportionate share of fund
balances, personal property, or indebtedness is equal to the
proportion that the number of students in average daily attendance
in the restored district bears to the number of students in average
daily attendance in the consolidated district.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.255. FUND BALANCES.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
Fund balances of a school district consolidated under this
subchapter may be used only for the benefit of the schools within
the district that generated the funds.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.256. EMPLOYMENT CONTRACTS.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
A consolidated district created under this subchapter shall
honor an employment contract entered into by a consolidating
district.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
§ 41.257. APPLICATION OF SMALL AND SPARSE ADJUSTMENTS
AND TRANSPORTATION ALLOTMENT.
Acts 2003, 78th Leg., ch. 201, § 1(1) repealed this section
effective September 1, 2004, provided the legislature enacts a law
that creates a comprehensive school finance system.
The budget of the consolidated district must apply the
benefit of the adjustment or allotment to the schools of the
consolidating district to which Section 42.103, 42.105, or 42.155
would have applied in the event that the consolidated district
still qualifies as a small or sparse district.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
