By:  Johnson                                          H.B. No. 2526
       73R6081 CAS-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the consolidation of independent school districts.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 19.051(a), Education Code, is amended to
    1-5  read as follows:
    1-6        (a)  By the procedure described in this subchapter, any of
    1-7  the following groups of school districts may consolidate into a
    1-8  single school district:
    1-9              (1)  two or more <contiguous> independent school
   1-10  districts;
   1-11              (2)  two or more <contiguous> common school districts;
   1-12  or
   1-13              (3)  one or more independent school districts and one
   1-14  or more common school districts <constituting as a whole one
   1-15  continuous territory>.
   1-16        SECTION 2.  Section 23.991, Education Code, is amended to
   1-17  read as follows:
   1-18        Sec. 23.991.  Incentive Aid.  (a)  Independent school
   1-19  districts created after August 22, 1963, through consolidation may
   1-20  qualify for incentive aid payments by the State of Texas.
   1-21        (b)  In addition to incentive aid payments authorized under
   1-22  Subsection (a) of this section, the commissioner of education may
   1-23  authorize incentive aid payments to school districts for:
   1-24              (1)  planning and consolidating administrative and
    2-1  support functions at the regional or subregional level; and
    2-2              (2)  the development and administration of and training
    2-3  for a revised statewide system of school district budgeting,
    2-4  accounting, and reporting.
    2-5        (c)  No<; provided, however, no> school district may receive
    2-6  <such> payments under this subchapter for a period of more than 10
    2-7  years.
    2-8        (d)  The <Such> incentive aid payments shall be made only
    2-9  upon application to the Texas Education Agency and in compliance
   2-10  with the terms and conditions contained in this subchapter
   2-11  <section>.
   2-12        SECTION 3.  Section 23.992, Education Code, is amended by
   2-13  adding Subsection (c) to read as follows:
   2-14        (c)  This section applies only to incentive aid payments
   2-15  under Section 23.991(a) of this code.
   2-16        SECTION 4.  Section 23.993, Education Code, is amended to
   2-17  read as follows:
   2-18        Sec. 23.993.  Minimum ADA.  The new district created through
   2-19  consolidation shall contain not fewer than <750 children in average
   2-20  daily attendance or> a majority of the children in average daily
   2-21  attendance in the county containing the majority of the land area
   2-22  involved in the reorganization.
   2-23        SECTION 5.  Section 23.994, Education Code, is amended to
   2-24  read as follows:
   2-25        Sec. 23.994.  Use Restricted.  The incentive aid payments
   2-26  under Section 23.991(a) of this code shall be used exclusively to
   2-27  retire the existing bonded indebtedness of the school districts
    3-1  which have been consolidated, shall be applied to the cost of
    3-2  constructing new buildings required by the reorganized district, or
    3-3  shall be used for renovation or improvement of existing buildings
    3-4  in the reorganized district.
    3-5        SECTION 6.  Section 23.995, Education Code, is amended to
    3-6  read as follows:
    3-7        Sec. 23.995.  Payments Reduced.  (a)  The incentive aid
    3-8  payments shall be reduced in direct proportion to any reduction in
    3-9  the annual average daily attendance of the reorganized school
   3-10  district for the preceding year.
   3-11        (b)  Subsection (a) of this section applies only to incentive
   3-12  aid payments under Section 23.991(a) of this code.
   3-13        SECTION 7.  Section 23.996, Education Code, is amended to
   3-14  read as follows:
   3-15        Sec. 23.996.  Consolidation Defined.  "Consolidation" for
   3-16  purposes of this subchapter shall mean and have application to
   3-17  creation of new districts by election under school district
   3-18  consolidation laws and/or by enlargement of existing districts by
   3-19  annexation thereto of other entire <contiguous district or>
   3-20  districts, other than dormant districts, under annexation laws, and
   3-21  where the district consolidated by election or enlarged by
   3-22  annexation under such laws results as an independent school
   3-23  district.
   3-24        SECTION 8.  Section 23.997, Education Code, is amended to
   3-25  read as follows:
   3-26        Sec. 23.997.  Conditions Precedent to Payment.  As a
   3-27  condition precedent to receiving incentive aid payments under
    4-1  Section 23.991(a) of this code:
    4-2              (1)  the geographical limits of the proposed
    4-3  consolidated district shall be submitted to the Texas Education
    4-4  Agency for approval and the geographical limits so approved shall
    4-5  be set forth in the petition for any consolidation election; and
    4-6              (2)  the consolidation of the school districts shall
    4-7  result in the formation of an independent school district.
    4-8        SECTION 9.  Section 23.999, Education Code, is repealed.
    4-9        SECTION 10.  This Act applies beginning with the 1993-1994
   4-10  school year.
   4-11        SECTION 11.  The importance of this legislation and the
   4-12  crowded condition of the calendars in both houses create an
   4-13  emergency and an imperative public necessity that the
   4-14  constitutional rule requiring bills to be read on three several
   4-15  days in each house be suspended, and this rule is hereby suspended,
   4-16  and that this Act take effect and be in force from and after its
   4-17  passage, and it is so enacted.