November 25, 1969 

Honorable J. W. Edgar 

Commissioner 

Texas Education Agency 

Austin, Texas 

Opinion No. M-519 

Re: Local fund credit to be 

assigned a school district 

containing a federal-wned 

military reservation following annexation of 

Dear Dr. Edgar: 

another district pursuant 

to Sections 16.76 and 

19.262 of the Texas 

Education Code. 

You have requested an official opinion regarding the above 

stated matter. We quote from your letter as follows: 

"Pursuant to Article 280313 (now in Chapter 19, 

Section 19.262, Texas Education Code) a prerequisite 

petition has been presented to the El Paso County 

Judge (under Article 26883. acting in the capacity 

of a county school board) requesting that an election 

be called to annex Canutillo Independent School District to the adjoining El Paso Independent School 

District. 

"In line with Section 19.262 of the Code, the 

County Judge has asked the Board of Trustees of 

El Paso Independent School District for its consent 

or approval to the proposed annexation required by 

subsection (c) prior to the calling of an election, 

and the El Paso district is in the process of 

gathering and studying information prior to making 

its decision. 

11 . . . . 

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Honorable J. W. Edgar, page 2 (M-519) 

"The Canutillo district proposed to be annexed 

to El Paso district has 964 square miles of territory, 

none of which is federal-owned military lands. Currently, El Paso district's local fund assignment credit 

for military lands approximates 49 per cent. If 

Canutillo district is combined with the El Paso District, 

the resulting El Paso Independent School District, so 

enlarged would have by virtue thereof 3044 square 

miles of territory and the combined district would have 

a reduced military land credit on its local fund 

assignment approximating 34%. 

"Thus, we are informed that should the Canutillo 

district be annexed, the El Paso district so enlarged 

would realize $334,244 less from Foundation School 

Funds occasioned by the percentage change in the military 

land credit, than it is currently realizing in its 

present status, . . . 

"The Board of Trustees of the El Paso Independent 

School District acting through its superintendent has 

requested this Agency to submit for an opinion from 

the Office of Attorney General the following question: 

"Must the local fund assignment credit for 

federal-owned military reservations be proportionately computed on the basis of total territory 

in a district enlarged by annexation, under 

Chapter 19, Section 19.262, Texas Education Code, 

or can the language in Subsection (k) be construed 

to authorize computation of such credit otherwise." 

Section 16.76 of the Texas Education Code sets out the 

formula to be used in determining the local funds to be charged 

to the various school districts. House Bill 959, Acts of the 

61st Legislature, Regular Session, 1969, pages 2698 et seq.. 

amended Section 16.76, and the pertinent provisions of H.B. 959 

are quoted as follows: 

"Provided, however, that in any district containiraq State University-owned land. State-owned prison land, 

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, . 

Honorable J. W. Edgar,'page 3 (M-519) 

Federal-owned forestry land, Federal-owned reservoirs, 

Federal-owned recreation areas, Federal-owned military 

reservations or Federal-owned Indian reservations, the 

amount assiqned to such school district shall be reduced 

in the proportion that the area included in the abovenamed classification bears to the total area of the 

district. Provided further, that no local fund assignment 

shall be charged to the Boys Ranch Independent School 

District in Oldham County; Texas, the Bexar County School 

for Boys Independent School District in Bexar County, 

Texas, and the Bexar County School for Girls Independent 

School District in Bexar County, Texas." (Emphasis added.) 

1t~'seems clear from the above,underlined language that in 

any school district containing a federal-owned military reservation, such as El Paso presently has, the amount of local funds 

thatthe,district is assigned to raise towa,rd financing its own 

school is reduced by a percentage that the military reservation 

bears to the whole district. A discussion of the apparent 

purpose for such legislation can be found in Central Education 

Aqency v. Independent School District of El Paso, 152 Tex. 56, 

254,,S.W.2d 357, (1953), and you are referred to the discussion 

in that case. 

This brings us to the question at hand, and that is, what 

effect does the annexation of another district have on the local 

fund assignment of a receiving district which has a federal-owned 

military reservation or some other land, as set out in House 

Bill 959, as part of the receiving district. 

Answer to this question lies in an analysis of Certain 

provisions of Section 19.262 of the Texas Education Code, a 

codification of Article 2803b, Vernon's Civil Statutes, which 

authorizes and controls annexation of one school district by 

another in larger counties. 

Subsections (i), (j) and (k) of Section 19,262 of Chapter 19 

of the~Texas Education Code control the effect of an annexation 

of existing school districts in larger counties. Subsections (i), 

(j) and (k) are quoted as follows: 

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Honorable J. W. Edgar, page 4 (M-519) 

. . 

"(i) Title to all property, real and personal, of 

the annexed district shall vest in the receiving district. 

The receiving district shall have complete authority over 

and management of the public schools in the territory 

annexed. 

"(j) The receiving district shall assume all outstanding indebtedness of the annexed district, bonded or 

otherwise. Any tax in effect in the receiving independent 

school district shall continue and become effective and 

apply to the entire independent district as constituted 

after annexation is completed. 

"(k) The independent receiving district shall 

continue as the same district and operate in all 

respects as it was prior to the annexation except that 

the annexed territory shall become liable for all indebtedness, subject to all taxes, and be a part~thereof 

for all purposes as though oriqinally included in the 

independent district." (Emphasis added.) 

The above quoted sections construed as a whole would give 

the receiving district (El Paso) title to all the property and 

authority over all the personnel of the district to be annexed 

(Canutillo). and El Paso district would assume all debts of 

Canutillo district and property owners in Canutillo district 

would be immediately subject to the indebtedness, if any, and 

tax rate, etc. effective in El Paso District. Furthermore, the 

two districts would be treated as one district as if they had 

originally been set up as one district. 

Therefore, the effect of one district (El Paso) annexing 

another (Canutillo) is the same as if the districts were 

originally set up as one district. It is, therefore, our opinion 

that the Commissioner of Education must look to the whole district, 

including the annexed territory, and determine what proportion 

of the whole district is composed of military or other charge 

free land, in determining what the local fund assignment must be. 

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. . 

Honorable J. W. Edgar, page 5 (m-519) 

This construction follows your long departmental interpretation and practice, which we do not believe the Legislature 

intended to change in adopting the Texas Education Code. 

SUMMARY 

The local fund assignment credit for 

federal-owned military reservations must be 

proportionately computed on the basis of 

total territory in a district, including 

territory resulting from the annexation of 

another school district. 

Prepared by James C. McCoy 

Assistant Attorney General 

APPROVED: 

OPINION COMMITTEE 

Kerns Taylor, Chairman 

George Kelton, Vice-Chairman 

Malcolm Quick 

Ed Esquivel 

Scott Garrison 

Jack Goodman 

MRADE F. GRIFFIN 

Staff Legal Assistant 

NOLA WHITE 

First Assistant 

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