Senator Nichols presented Senate Bill 2540 to clarify the legal effect of minor boundary adjustments when school district boundaries change for parcels with existing contracts, restrictions or covenants.

Sponsor explanation: Senator Nichols said a prior minor boundary adjustment caused a dispute when appraisal-district boundary lines differed from TEA boundary maps and a large industrial taxpayer’s property and related incentive contract ended up split between districts. The bill would clarify that contracts, restrictions and covenants associated with transferred land must be included in the mutual boundary agreement and remain attached to the land after transfer.

Supporters: Chaney Moore, representing Chevron Phillips Chemical and Golden Triangle Polymers in Orange, Texas, testified the clarification would help resolve uncertainty about tax incentives and obligations when appraisal and TEA boundaries differ and would assist both school districts in fair allocation of contracts tied to land.

Disposition: Public testimony was taken and the committee left SB 2540 pending subject to the call of the chair. The transcript notes supporting resolutions from both school districts were provided.