By: Haley S.B. No. 1111
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the consolidation of independent school districts.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Subsection (a), Section 19.051, Education Code,
1-4 is amended to read as follows:
1-5 (a) By the procedure described in this subchapter, any of
1-6 the following groups of school districts may consolidate into a
1-7 single school district:
1-8 (1) two or more <contiguous> independent school
1-9 districts;
1-10 (2) two or more <contiguous> common school districts;
1-11 or
1-12 (3) one or more independent school districts and one
1-13 or more common school districts <constituting as a whole one
1-14 continuous territory>.
1-15 SECTION 2. Subchapter C, Chapter 19, Education Code, is
1-16 amended by adding Section 19.060 to read as follows:
1-17 Sec. 19.060. REGIONAL EDUCATION SERVICE CENTER
1-18 ADMINISTRATIVE CONSOLIDATION PLAN. (a) The board of each regional
1-19 education service center shall adopt an administrative
1-20 consolidation plan for the school districts in the area served by
1-21 the service center. The plan must contain recommendations
1-22 concerning the consolidation of the school districts'
1-23 administrative and support functions that would allow the school
1-24 districts to reduce costs, operate more efficiently, and improve
2-1 educational quality.
2-2 (b) In developing its plan, each service center shall meet
2-3 with representatives from each school district in the area.
2-4 (c) Each service center's plan must provide for all school
2-5 districts that are assigned to a single county in the 1992-1993
2-6 Texas School Directory published by the Central Education Agency to
2-7 consolidate administrative and support functions to the extent
2-8 recommended by the plan. The plan may recommend that a school
2-9 district that is not assigned to a single county consolidate
2-10 administrative and support functions with one or more other
2-11 specified school districts.
2-12 (d) Among the administrative and support functions a plan
2-13 may recommend for school districts to consolidate are central
2-14 administrative, transportation, food service, purchasing, and
2-15 payroll functions.
2-16 (e) After developing a plan as provided by this section,
2-17 each service center shall provide the plan to each school district
2-18 in the area for implementation. A school district is not required
2-19 to implement any recommendation made in the plan.
2-20 (f) A service center may modify or revise a plan made under
2-21 this section, including, after the 1994-1995 school year, changing
2-22 the assignments of school districts provided under Subsection (c)
2-23 of this section.
2-24 SECTION 3. Section 23.991, Education Code, is amended to
2-25 read as follows:
2-26 Sec. 23.991. Incentive Aid. (a) Independent school
2-27 districts created after August 22, 1963, through consolidation may
3-1 qualify for incentive aid payments by the State of Texas.
3-2 (b) In addition to incentive aid payments authorized under
3-3 Subsection (a) of this section, the commissioner of education may
3-4 authorize payments for planning and consolidating administrative
3-5 and support functions at the regional or subregional level.
3-6 (c) No<; provided, however, no> school district may receive
3-7 <such> payments under this subchapter for a period of more than 10
3-8 years.
3-9 (d) The <Such> incentive aid payments shall be made only
3-10 upon application to the Texas Education Agency and in compliance
3-11 with the terms and conditions contained in this subchapter
3-12 <section>.
3-13 SECTION 4. Section 23.992, Education Code, is amended by
3-14 adding Subsection (c) to read as follows:
3-15 (c) This section applies only to incentive aid payments
3-16 under Section 23.991(a) of this code.
3-17 SECTION 5. Section 23.995, Education Code, is amended to
3-18 read as follows:
3-19 Sec. 23.995. Payments Reduced. (a) The incentive aid
3-20 payments shall be reduced in direct proportion to any reduction in
3-21 the annual average daily attendance of the reorganized school
3-22 district for the preceding year.
3-23 (b) Subsection (a) of this section applies only to incentive
3-24 aid payments under Section 23.991(a) of this code.
3-25 SECTION 6. Section 23.996, Education Code, is amended to
3-26 read as follows:
3-27 Sec. 23.996. Consolidation Defined. "Consolidation" for
4-1 purposes of this subchapter shall mean and have application to
4-2 creation of new districts by election under school district
4-3 consolidation laws and/or by enlargement of existing districts by
4-4 annexation thereto of other entire <contiguous district or>
4-5 districts, other than dormant districts, under annexation laws, and
4-6 where the district consolidated by election or enlarged by
4-7 annexation under such laws results as an independent school
4-8 district.
4-9 SECTION 7. Section 23.997, Education Code, is amended to
4-10 read as follows:
4-11 Sec. 23.997. Conditions Precedent to Payment. As a
4-12 condition precedent to receiving incentive aid payments under
4-13 Section 23.991(a) of this code:
4-14 (1) the geographical limits of the proposed
4-15 consolidated district shall be submitted to the Texas Education
4-16 Agency for approval and the geographical limits so approved shall
4-17 be set forth in the petition for any consolidation election; and
4-18 (2) the consolidation of the school districts shall
4-19 result in the formation of an independent school district.
4-20 SECTION 8. Section 16.103, Education Code, is amended by
4-21 adding Subsection (d) to read as follows:
4-22 (d) From the total amount of funds appropriated for the
4-23 small district adjustment under this section, the commissioner of
4-24 education shall withhold an amount necessary for incentive aid
4-25 payments made under Section 23.991(b) of this code, but not to
4-26 exceed $7,500,000 during the 1994-1995 biennium or a higher amount
4-27 set by appropriation. After deducting the amount withheld under
5-1 this subsection from the total amount appropriated for the small
5-2 district adjustment, the commissioner of education shall reduce
5-3 each district's entitlement proportionately and shall allocate
5-4 funds to each district accordingly.
5-5 SECTION 9. Sections 23.993, 23.994, and 23.999, Education
5-6 Code, are repealed.
5-7 SECTION 10. From the total amount of funds appropriated for
5-8 the Foundation School Program, the commissioner of education shall
5-9 withhold an amount not to exceed $2,500,000 during the 1994-1995
5-10 biennium, or a higher amount set by appropriation, for revision of
5-11 Bulletin 679, accounting procedures and related training. After
5-12 deducting the amount withheld under this section from the total
5-13 amount appropriated for the Foundation School Program, the
5-14 commissioner of education shall reduce each district's entitlement
5-15 proportionately and shall allocate funds to each district
5-16 accordingly.
5-17 SECTION 11. The State Board of Education shall conduct a
5-18 study of rural high school districts and shall report the results
5-19 of the study to the 74th Legislature not later than February 1,
5-20 1995. The report must include:
5-21 (1) a description of the status of rural high school
5-22 districts;
5-23 (2) recommendations for criteria for the creation of
5-24 rural high school districts to ensure that the districts provide a
5-25 high school education of high quality; and
5-26 (3) recommendations for statutory changes needed to
5-27 encourage or require the creation of rural high school districts or
6-1 to improve the operation of the districts.
6-2 SECTION 12. (a) Each regional education service center
6-3 shall complete the administrative consolidation plan as provided by
6-4 Section 19.060, Education Code, as added by this Act, for
6-5 implementation at the beginning of the 1994-1995 school year.
6-6 (b) Not later than January 1, 1995, each service center
6-7 shall report to the commissioner of education on the service
6-8 center's recommendations for consolidation of administrative and
6-9 support functions of school districts under Section 19.060,
6-10 Education Code, as added by this Act. The report must:
6-11 (1) identify the proposals recommended under the
6-12 service center's plan;
6-13 (2) identify the proposals school districts have
6-14 agreed to implement and those that school districts do not want to
6-15 implement;
6-16 (3) offer recommendations for consolidation of
6-17 administrative and support functions of school districts that could
6-18 be implemented on a statewide basis and that would allow school
6-19 districts to reduce costs, operate more efficiently, and improve
6-20 educational quality; and
6-21 (4) identify any school district that does not intend
6-22 to implement the recommendations in the plan.
6-23 (c) Not later than February 1, 1995, the commissioner of
6-24 education shall prepare a summary of the service centers' reports
6-25 under Subsection (b) of this section and present that summary to
6-26 the legislature.
6-27 SECTION 13. Sections 1 through 9 of this Act apply beginning
7-1 with the 1993-1994 school year.
7-2 SECTION 14. The importance of this legislation and the
7-3 crowded condition of the calendars in both houses create an
7-4 emergency and an imperative public necessity that the
7-5 constitutional rule requiring bills to be read on three several
7-6 days in each house be suspended, and this rule is hereby suspended,
7-7 and that this Act take effect and be in force from and after its
7-8 passage, and it is so enacted.