(a) Not later than July 15 of each year, using the estimates of enrollment and taxable property value under § 48.269, the commissioner shall review the local revenue level of school districts in the state and shall notify:
(1) each district with a local revenue level in excess of entitlement;
(2) each district to which the commissioner proposes to annex property detached from a district notified under Subdivision (1), if necessary, under Subchapter G; and
(3) each district to which the commissioner proposes to consolidate a district notified under Subdivision (1), if necessary, under Subchapter H.
(a-1) This subsection applies only if the constitutional amendment proposed by H.J.R. 2, 88th Legislature, 2nd Called Session, 2023, is approved by the voters in an election held for that purpose. As soon as practicable after receiving revised property values that reflect adoption of the constitutional amendment, the commissioner shall review the local revenue level of districts in the state and revise as necessary the notifications provided under Subsection (a) for the 2023-2024 school year. This subsection expires September 1, 2024.

(b) If, before the dates provided by this subsection, a district notified under Subsection (a)(1) has not successfully exercised one or more options under § 49.002 that reduce the district’s local revenue level to a level equal to or less than the level established under § 48.257, the commissioner shall order the detachment of property from that district as provided by Subchapter G. If that detachment will not reduce the district’s local revenue level to a level equal to or less than the level established under § 48.257, the commissioner may not detach property under Subchapter G but shall order the consolidation of the district with one or more other districts as provided by Subchapter H. An agreement under § 49.002(1) or (2) must be executed not later than September 1 immediately following the notice under Subsection (a). An election for an option under § 49.002(3), (4), or (5) must be ordered before September 1 immediately following the notice under Subsection (a).
(b-1) This subsection applies only to a district that has not previously held an election under this chapter. Notwithstanding Subsection (b), a district that enters into an agreement to exercise an option to reduce the district’s local revenue level in excess of entitlement under § 49.002(3), (4), or (5) for the 2023-2024 school year may request and, as provided by § 49.0042(a), receive approval from the commissioner to delay the date of the election otherwise required to be ordered before September 1. This subsection expires September 1, 2024.
(c) A district notified under Subsection (a) may not adopt a tax rate for the tax year in which the district receives the notice until the commissioner certifies that the district has reduced the district’s local revenue level in excess of entitlement to the level established under § 48.257.
(c-1) Notwithstanding Subsection (c), a district that receives approval from the commissioner to delay an election as provided by Subsection (b-1) may adopt a tax rate for the 2023 tax year before the commissioner certifies that the district has reduced its local revenue level to the level established by § 48.257. This subsection expires September 1, 2024.
(d) A detachment and annexation or consolidation under this chapter:
(1) is effective for Foundation School Program funding purposes for the school year that begins in the calendar year in which the detachment and annexation or consolidation is agreed to or ordered; and
(2) applies to the ad valorem taxation of property beginning with the tax year in which the agreement or order is effective.