Commissioner's Rules
Adopted Repeal of 19 TAC Chapter 62, Commissioner's Rules Concerning the Equalized Wealth Level, §62.1071, Administration of Wealth Equalization, and New 19 TAC §62.1071, Manual for Districts Subject to Wealth Equalization
Attachments:
I. Statutory Citation (PDF)
II. Text of Adopted Repeal of 19 TAC Chapter 62, Commissioner's Rules Concerning the Equalized Wealth Level, §62.1071, Administration of Wealth Equalization (PDF)
III. Text of Adopted New 19 TAC Chapter 62, Commissioner's Rules Concerning the Equalized Wealth Level, §62.1071, Manual for Districts Subject to Wealth Equalization (PDF)
SUMMARY:
The rule action presented in this item will be filed as adopted with the Texas Register under the commissioner's rulemaking authority. This item adopts the repeal of 19 TAC Chapter 62, Commissioner's Rules Concerning the Equalized Wealth Level, §62.1071, Administration of Wealth Equalization, and new 19 TAC §62.1071, Manual for Districts Subject to Wealth Equalization. The adopted repeal removes outdated provisions from rule. The adopted new rule replaces those outdated provisions with a manual on wealth equalization requirements that will be updated and adopted as a part of the TAC each year. No changes were made to the rule or manual since published as proposed.
STATUTORY AUTHORITY:
Texas Education Code (TEC), §41.006.
EFFECTIVE DATE:
May 9, 2011.
BACKGROUND INFORMATION AND SIGNIFICANT ISSUES:
Through 19 TAC §62.1071, adopted to be effective June 11, 1998, and last amended to be effective May 9, 2004, the commissioner exercised rulemaking authority relating to administration of wealth equalization.
Current 19 TAC §62.1071, Administration of Wealth Equalization, adopted for repeal describes identification of school districts subject to wealth equalization; provides an alternative calculation of wealth, now outdated, for certain districts; explains how property-wealthy districts are to equalize wealth; provides a method for calculating costs to equalize wealth, now obsolete; sets forth administrative requirements, now outdated; provides consequences for noncompliance; explains that a certain exemption, now obsolete, does not apply for purposes of wealth equalization; and describes how adjustments to property value for property value declines are made. Repeal of the rule is necessary to remove outdated and obsolete provisions from rule.
The most current requirements that school districts subject to wealth equalization must meet are specified in each annual manual for districts subject to wealth equalization. Legal counsel with the Texas Education Agency (TEA) has advised that the procedures contained in each annual manual for districts subject to wealth equalization be adopted as part of the TAC. Adopted new 19 TAC §62.1071, Manual for Districts Subject to Wealth Equalization, adopts in rule the official TEA publication Manual for Districts Subject to Wealth Equalization 2010-2011 School Year, revised January 2011, as Figure: 19 TAC §62.1071(a). The intent is to annually update 19 TAC §62.1071 to refer to the most recently published manual. Manuals adopted for previous school years will remain in effect with respect to those school years.
Each annual manual for districts subject to wealth equalization explains how districts subject to wealth equalization are identified; the fiscal, procedural, and administrative requirements those districts must meet; and the consequences for not meeting requirements. The manual also provides information on using the online Foundation School Program (FSP) System to fulfill certain requirements.
No changes were made to the rule or manual since published as proposed.
FISCAL IMPACT:
The TEA has determined that there are no fiscal implications to persons or entities, including local school districts and open-enrollment charter schools, required to comply with the rule actions. The adoption places in rule the current procedures for administration of wealth equalization. In addition, there is no economic impact for small businesses and microbusinesses; therefore, no regulatory flexibility analysis, specified in Texas Government Code, §2006.002, is required.
PUBLIC AND STUDENT BENEFIT:
The adopted repeal of 19 TAC §62.1071 removes obsolete provisions from rule. The adopted new 19 TAC §62.1071 informs the public of the existence of an annual publication specifying requirements for school districts subject to wealth equalization.
PROCEDURAL AND REPORTING IMPLICATIONS:
The adopted rule actions place the specific procedures contained in the Manual for Districts Subject to Wealth Equalization 2010-2011 School Year, revised January 2011, in the TAC. The TEA administers the wealth equalization provisions of the TEC, Chapter 41, according to the procedures specified in each annual manual for districts subject to wealth equalization. Data reporting requirements are addressed primarily through the online FSP System. A district that is subject to the provisions of the TEC, Chapter 41, and that wishes to be considered for a property value adjustment based on a rapid decline in property value must submit a form indicating the district's estimated taxable value for the current year to the TEA by mail or fax. The form must be signed by the chief appraiser of the county appraisal district.
LOCALLY MAINTAINED PAPERWORK REQUIREMENTS:
The adopted rule actions have no locally maintained paperwork requirements.
PUBLIC COMMENTS:
The public comment period on the proposal began February 25, 2011, and ended March 28, 2011. No public comments were received.
ALTERNATIVES:
None.
OTHER COMMENTS AND RELATED ISSUES:
None.
Staff Members Responsible:
Shirley Beaulieu, Associate Commissioner, Finance / Chief Financial Officer
Lisa Dawn-Fisher, Deputy Associate Commissioner, School Finance
For additional information, email rules@tea.state.tx.us.