Opinion No. GA-0009

The Honorable Robert Duncan, Interim Chair, Natural Resources Committee, Texas State Senate, P. O. Box 12068, Austin, Texas 78711

Re: Whether the wealth-reduction provisions of chapter 41 of the Texas Education Code apply to that portion of local property tax revenues attributable to a school district's tax rate in excess of $1.50 per $100 valuation (RQ-0562-JC)

S U M M A R Y

The Education Code authorizes school districts to set a tax rate for maintenance and operations that is not to exceed $1.50 per $100 valuation of taxable property. Under article 2784g of the Texas Education Code Auxiliary Laws, the Deer Park Independent School District has been authorized by its voters to set its tax rate for maintenance tax and the interest and sinking fund combined at $2.00 per $100 valuation of taxable property, and Deer Park is considering raising its maintenance and operations tax above $1.50 under this provision.

The Deer Park Independent School District School, which has a "wealth per student" in excess of the statutory cap provided by Education Code section 41.002(a), is required by chapter 41 of the Education Code to reduce its wealth by reducing its taxable property or by increasing its student count. If the Deer Park Independent School District reduces its wealth per student by increasing the student count, the adoption of a maintenance and operations tax rate under article 2784g in excess of $1.50 per $100 valuation would affect its wealth reduction. The actual increase in outlay resulting from a particular tax rate may be computed by applying the relevant formulas set out in Education Code, chapter 41. The statutory methods that achieve wealth equalization by reducing taxable property would not be affected by revenues generated by a tax rate in excess of $1.50 per $100 valuation.

Opinion No. GA-0010

The Honorable Steven D. Wolens, Chair, Committee on State Affairs, Texas House of Representatives, P. O. Box 2910, Austin, Texas 78768-2910

Re: Whether the divestiture provision in section 12.152(b) of the Utilities Code applies to an interest under section 12.053(b)(l)(B) (RQ-0575-JC)

S U M M A R Y

Utilities Code section 12.053 and section 12.152 provide that a person with certain pecuniary interests is not eligible for appointment as commissioner of the Public Utility Commission. Unlike section 12.053, section 12.152 provides that a person who discloses and divests certain types of interests is not disqualified. The section 12.152(b) divestiture provision cures a disqualification due to an interest under section 12.053(b)(1) that also falls within section 12.152(a)(2)(B). It does not cure a disqualification due to an interest that falls under section 12.053(b)(1) but that is not within the scope of section 12.152(a)(2)(B).

For further information, please access the website at www.oag.state.tx.us. or call the Opinion Committee at 512/ 463-2110.

TRD-200300162

Rick Gilpin

Assistant Attorney General

Office of the Attorney General

Filed: January 13, 2003