Bill Text: TX HB3375 | 2015-2016 | 84th Legislature | Introduced
Bill Title: Relating to ownership and control of property acquired with state funds by the charter holder of an open-enrollment charter school.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2015-03-17 - Referred to Public Education [HB3375 Detail]
Download: Texas-2015-HB3375-Introduced.html
| 84R12102 MK-F | ||
| By: Bohac | H.B. No. 3375 | |
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| relating to ownership and control of property acquired with state | ||
| funds by the charter holder of an open-enrollment charter school. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 12.128, Education Code, is amended by | ||
| adding Subsections (f), (g), (h), (i), (j), and (k) to read as | ||
| follows: | ||
| (f) Notwithstanding Subsection (a), real or personal | ||
| property acquired, improved, or maintained using state funds is | ||
| considered to be public property only to the extent state funds were | ||
| used to pay for the acquisition, improvement, or maintenance. The | ||
| use of state funds for acquisition, improvement, or maintenance of | ||
| property must be detailed in the accounting and property records of | ||
| the charter holder and the charter school. If the property is | ||
| acquired with federal funds, this subsection may be preempted | ||
| wholly or partly by federal law. | ||
| (g) The property of an open-enrollment charter school used | ||
| for a purpose authorized by Subsection (a)(3) is considered to be | ||
| owned by the charter holder, regardless of the source of funds used | ||
| to acquire the property. The charter holder retains title to the | ||
| property, exercises complete control over the property, and is | ||
| entitled to all use and benefit from the property. Property | ||
| acquired, improved, or maintained using both state funds and other | ||
| funds is considered mixed public and private property, and is | ||
| subject to all requirements for public property under this section. | ||
| (h) A charter holder shall include an exhibit identifying | ||
| the capitalized assets of the charter holder and the ownership | ||
| interest of all parties for all capitalized real and personal | ||
| property held by the charter holder or acquired, improved, or | ||
| maintained by the charter holder during the term of the charter in | ||
| the annual audit report of the charter holder. | ||
| (i) The governing body and officers of the charter holder | ||
| shall ensure that: | ||
| (1) public property is properly and accurately | ||
| documented in the accounting and property records of the charter | ||
| holder and the open-enrollment charter school; and | ||
| (2) the accounting and property records of the charter | ||
| holder separately disclose the cost basis and accumulated | ||
| depreciation of all public property as determined by the | ||
| commissioner or designee, and all other property held, acquired, | ||
| improved, or maintained by the charter holder. | ||
| (j) If, after a due diligence review of the exhibits and | ||
| other disclosures in the annual audit report filed by the charter | ||
| holder, the commissioner determines that the exhibit identifying | ||
| capitalized assets contains errors, the commissioner may require a | ||
| charter holder to engage, at the charter holder's expense, an | ||
| independent audit firm for purposes of reviewing and confirming the | ||
| classification of real and personal property consistent with | ||
| applicable authoritative standards. | ||
| (k) Subject to the rights of any secured creditor or valid | ||
| lien holder and in accordance with Subsection (e), on revocation, | ||
| expiration, or surrender of the charter, dissolution of the charter | ||
| holder, or final loss of exempt status under Section 501(c)(3), | ||
| Internal Revenue Code of 1986, the charter holder shall: | ||
| (1) reimburse the state in a manner prescribed by the | ||
| commissioner for the current value of the public's ownership | ||
| interest in the capitalized assets disclosed in the exhibit | ||
| prepared under Subsection (h); | ||
| (2) transfer title to the state in a manner prescribed | ||
| by the commissioner and in accordance with the rules of the Internal | ||
| Revenue Service; or | ||
| (3) transfer title to another charter holder subject | ||
| to the consent and approval of the commissioner. | ||
| SECTION 2. 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, 2015. | ||
