73R9854 ESH-D
          By Haley                                              S.B. No. 1111
          Substitute the following for S.B. No. 1111:
          By Hernandez, Linebarger                          C.S.S.B. No. 1111
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the administration and boundaries of regional education
    1-3  service centers and the consolidation of independent school
    1-4  districts.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Subsections (b), (c), and (d), Section 11.32,
    1-7  Education Code, are amended, and Subsection (h) as added by Section
    1-8  1.06, Chapter 813, Acts of the 71st Legislature, Regular Session,
    1-9  1989, is amended and relettered as Subsection (i), to read as
   1-10  follows:
   1-11        (b)  Regional centers shall be located throughout the state
   1-12  so that each school district has the opportunity to be served and
   1-13  to participate in an approved center, on a voluntary basis.  No
   1-14  center shall be approved unless it serves an area having 50,000 or
   1-15  more eligible scholastics in average daily attendance for the next
   1-16  preceding school year, except that the State Board of Education may
   1-17  make an exception for sparsely populated areas.  The State Board of
   1-18  Education shall review the boundaries of centers at least once
   1-19  every 10 years to ensure optimal geographic placement.
   1-20        (c)  Each center shall be governed by a seven-member board.
   1-21  Except in the case of a center serving fewer than seven school
   1-22  districts, a school district may not have more than one
   1-23  representative on the board.  The State Board of Education shall
   1-24  adopt uniform rules and regulations to provide for the local
    2-1  selection, appointment, and continuity of membership for regional
    2-2  boards of directors.  Vacancies shall be filled by appointment by
    2-3  the remaining members of the regional board for the unexpired term.
    2-4  All members shall serve without compensation.
    2-5        (d)  The Regional Board of Directors, in consultation with
    2-6  the commissioner of education, is authorized to employ an executive
    2-7  director for its respective center.  The commissioner shall
    2-8  evaluate the performance of each executive director and order
    2-9  termination of the employment of an executive director whose
   2-10  continued employment jeopardizes the successful operation of the
   2-11  center.  Each executive director may hire <and such other>
   2-12  personnel, professional and clerical, <as it deems necessary> to
   2-13  carry out the functions of the center.  The executive director may
   2-14  evaluate the performance and terminate the employment of the
   2-15  center's employees.  To the extent permitted by law, each Regional
   2-16  Board of Directors may<, and to> do and perform all things which it
   2-17  deems proper for the successful operation of the center <thereof,>
   2-18  and <to> pay for all operating expenses by warrants drawn on proper
   2-19  funds available for such purpose.
   2-20        (i) <(h)>  The Central Education Agency shall conduct an
   2-21  annual evaluation of the basic educational services provided by the
   2-22  regional centers.  The State Board of Education shall review the
   2-23  results of the evaluations at least every six years to determine
   2-24  the need for the continuance<, consolidation,> or reorganization of
   2-25  the regional centers.
   2-26        SECTION 2.  Subchapter C, Chapter 19, Education Code, is
   2-27  amended by adding Section 19.060 to read as follows:
    3-1        Sec. 19.060.  REGIONAL EDUCATION SERVICE CENTER
    3-2  ADMINISTRATIVE CONSOLIDATION PLAN FOR SCHOOL DISTRICTS.  (a)  The
    3-3  board of each regional education service center shall  adopt an
    3-4  administrative consolidation plan for the school districts in the
    3-5  area served by the service center.  The plan must contain
    3-6  recommendations concerning the consolidation of the school
    3-7  districts' administrative and support functions that would allow
    3-8  the school districts to reduce costs, operate more efficiently, and
    3-9  improve educational quality.
   3-10        (b)  In developing its plan, each service center shall meet
   3-11  with representatives from each school district in the area.
   3-12        (c)  Each service center's plan must provide for all school
   3-13  districts that are assigned to a single county in the 1992-1993
   3-14  Texas School Directory published by the Central Education Agency to
   3-15  consolidate administrative and support functions to the extent
   3-16  recommended by the plan.  The plan may recommend that a school
   3-17  district that is not assigned to a single county consolidate
   3-18  administrative and support functions with one or more other
   3-19  specified school districts.
   3-20        (d)  Among the administrative and support functions a plan
   3-21  may recommend for school districts to consolidate are central
   3-22  administrative, transportation, food service, purchasing, health
   3-23  and workers' compensation insurance coverage, guidance and
   3-24  counseling, curriculum cost, and payroll functions.
   3-25        (e)  After developing a plan as provided by this section,
   3-26  each service center shall provide the plan to each school district
   3-27  in the area for implementation.  A school district is not required
    4-1  to implement any recommendation made in the plan.
    4-2        (f)  A service center may modify or revise a plan made under
    4-3  this section, including, after the 1994-1995 school year, changing
    4-4  the assignments of school districts provided under Subsection (c)
    4-5  of this section.
    4-6        SECTION 3.  Section 23.991, Education Code, is amended to
    4-7  read as follows:
    4-8        Sec. 23.991.  Incentive Aid.  (a)  Independent school
    4-9  districts created after August 22, 1963, through consolidation may
   4-10  qualify for incentive aid payments by the State of Texas.
   4-11        (b)  In addition to incentive aid payments authorized under
   4-12  Subsection (a) of this section, the commissioner of education may
   4-13  authorize incentive aid payments to school districts for planning
   4-14  and consolidating administrative and support functions at the
   4-15  regional or subregional level.
   4-16        (c)  No<; provided, however, no> school district may receive
   4-17  <such> payments under this subchapter for a period of more than 10
   4-18  years.
   4-19        (d)  The <Such> incentive aid payments shall be made only
   4-20  upon application to the Texas Education Agency and in compliance
   4-21  with the terms and conditions contained in this subchapter
   4-22  <section>.
   4-23        SECTION 4.  Section 23.992, Education Code, is amended by
   4-24  adding Subsection (c) to read as follows:
   4-25        (c)  This section applies only to incentive aid payments
   4-26  under Section 23.991(a) of this code.
   4-27        SECTION 5.  Section 23.995, Education Code, is amended to
    5-1  read as follows:
    5-2        Sec. 23.995.  Payments Reduced.  (a)  The incentive aid
    5-3  payments shall be reduced in direct proportion to any reduction in
    5-4  the annual average daily attendance of the reorganized school
    5-5  district for the preceding year.
    5-6        (b)  Subsection (a) of this section applies only to incentive
    5-7  aid payments under Section 23.991(a) of this code.
    5-8        SECTION 6.  Section 23.997, Education Code, is amended to
    5-9  read as follows:
   5-10        Sec. 23.997.  Conditions Precedent to Payment.  As a
   5-11  condition precedent to receiving incentive aid payments under
   5-12  Section 23.991(a) of this code:
   5-13              (1)  the geographical limits of the proposed
   5-14  consolidated district shall be submitted to the Texas Education
   5-15  Agency for approval and the geographical limits so approved shall
   5-16  be set forth in the petition for any consolidation election; and
   5-17              (2)  the consolidation of the school districts shall
   5-18  result in the formation of an independent school district.
   5-19        SECTION 7.  Section 23.994, Education Code, is repealed.
   5-20        SECTION 8.  Not later than September 1, 1993, the Central
   5-21  Education Agency shall begin reevaluating the boundaries of the
   5-22  regional education service centers and, after consulting with the
   5-23  regional education service centers and their component school
   5-24  districts, as soon as practicable shall make recommendations to the
   5-25  State Board of Education concerning any modifications in the
   5-26  boundaries of the centers to ensure optimal geographic placement.
   5-27  Any modifications the State Board of Education makes in the
    6-1  boundaries apply beginning with the 1994-1995 school year.
    6-2        SECTION 9.  (a)  Each regional education service center shall
    6-3  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 all school districts that intend to
   6-22  implement the recommendations in the plan.
   6-23        (c)  Not later than February 1, 1995, the commissioner shall
   6-24  prepare a summary of the service centers' reports under Subsection
   6-25  (b) of this section and present that summary to the legislature.
   6-26        SECTION 10.  Sections 3-6 of this Act apply beginning with
   6-27  the 1993-1994 school year.
    7-1        SECTION 11.  The importance of this legislation and the
    7-2  crowded condition of the calendars in both houses create an
    7-3  emergency and an imperative public necessity that the
    7-4  constitutional rule requiring bills to be read on three several
    7-5  days in each house be suspended, and this rule is hereby suspended,
    7-6  and that this Act take effect and be in force from and after its
    7-7  passage, and it is so enacted.