By Tillery                                            H.B. No. 1827
         77R5606 ESH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the boundaries of school districts located in home-rule
 1-3     municipalities.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Chapter 13, Education Code, is amended by adding
 1-6     Subchapter H to read as follows:
 1-7         SUBCHAPTER H.  ANNEXATION OF TERRITORY OF SCHOOL DISTRICTS
 1-8                      LOCATED IN HOME-RULE MUNICIPALITY
 1-9           Sec. 13.301.  APPLICABILITY OF SUBCHAPTER. This subchapter
1-10     applies only to a school district that contains territory located
1-11     in a home-rule municipality.
1-12           Sec. 13.302.  SINGLE SCHOOL DISTRICT IN HOME-RULE
1-13     MUNICIPALITY REQUIRED. Except as otherwise provided by this
1-14     subchapter, all territory located in a home-rule municipality must
1-15     be included in the same school district.
1-16           Sec. 13.3021.  ANNEXATION OF TERRITORY OF SCHOOL DISTRICTS IN
1-17     HOME-RULE MUNICIPALITIES EXISTING ON SEPTEMBER 1, 2001. (a)  This
1-18     section applies only to a municipality that:
1-19                 (1)  is a home-rule municipality on September 1, 2001;
1-20     and
1-21                 (2)  contains territory that is located in two or more
1-22     school districts.
1-23           (b)  Not later than September 1, 2003, the school district
1-24     whose territory located in  the home-rule municipality has the
 2-1     greatest number of the municipality's residents shall, by agreement
 2-2     with each other district as provided by Section 13.306, annex all
 2-3     territory located in the boundaries of the municipality, as those
 2-4     boundaries exist on the date of the annexation, that is part of
 2-5     another school district.
 2-6           (c)  This section expires January 1, 2004.
 2-7           Sec. 13.303.  ANNEXATION FOLLOWING ADOPTION OF HOME-RULE
 2-8     STATUS. (a)  This section applies only to a municipality that:
 2-9                 (1)  becomes a home-rule municipality after September
2-10     1, 2001; and
2-11                 (2)  at the time it becomes a home-rule municipality,
2-12     contains territory that is located in two or more school districts.
2-13           (b)  Not later than the second anniversary of the date the
2-14     municipality becomes a home-rule municipality, the school district
2-15     whose territory located in the home-rule municipality has the
2-16     greatest number of the municipality's residents shall, by agreement
2-17     with each other district as provided by Section 13.306, annex all
2-18     territory located in the boundaries of the municipality, as those
2-19     boundaries exist on the date of the annexation, that is part of
2-20     another school district.
2-21           Sec. 13.304.  ANNEXATION FOLLOWING EXPANSION OF MUNICIPAL
2-22     BOUNDARIES. Not later than the first anniversary of the effective
2-23     date on which a home-rule municipality annexes territory that is
2-24     not located in the boundaries of the school district located in the
2-25     municipality, the district shall, by agreement with each school
2-26     district in which the territory is located as provided by Section
2-27     13.306, annex that territory.
 3-1           Sec. 13.305.  ALLOCATION OF PROPERTY AND ASSUMPTION OF
 3-2     INDEBTEDNESS. (a)  As provided by the agreement of the boards of
 3-3     trustees of the affected school districts, a school district that
 3-4     annexes territory of another school district under this subchapter:
 3-5                 (1)  takes title to all school property located in the
 3-6     annexed territory; and
 3-7                 (2)  shall assume all indebtedness relating to any
 3-8     school property located in the annexed territory.
 3-9           (b)  Sections 13.004(a)-(c) do not apply to an annexation
3-10     under this subchapter.
3-11           Sec. 13.306.  ANNEXATION AGREEMENT; EFFECTIVE DATE. (a)  The
3-12     board of trustees of each school district affected by an annexation
3-13     under this subchapter shall execute an annexation agreement.  The
3-14     agreement must:
3-15                 (1)  specify the territory to be annexed; and
3-16                 (2)  allocate property and indebtedness as provided by
3-17     Section 13.305.
3-18           (b)  The annexation agreement must be filed with the
3-19     commissioners court of each county in which the school district
3-20     contains territory.  The commissioners court shall enter an order
3-21     redefining the boundaries of the affected districts.
3-22           (c)  An annexation agreement under this subchapter takes
3-23     effect as provided by Section 13.005.
3-24           Sec. 13.307.  INABILITY TO AGREE. (a)  If the board of
3-25     trustees of a school district that is required to annex territory
3-26     under this subchapter cannot reach agreement regarding the
3-27     annexation with the board of trustees of another district, the
 4-1     board of trustees of the district required to annex territory shall
 4-2     appeal to the commissioner.  The commissioner shall:
 4-3                 (1)  conduct a hearing on each issue in dispute between
 4-4     the districts;
 4-5                 (2)  decide each issue; and
 4-6                 (3)  enter an order stating the commissioner's
 4-7     decision.
 4-8           (b)  Either affected school district may appeal a decision of
 4-9     the commissioner under Subsection (a) to a district court in Travis
4-10     County.
4-11           Sec. 13.308.  INCLUDING TERRITORY OUTSIDE MUNICIPAL
4-12     BOUNDARIES NOT PROHIBITED. This subchapter does not prohibit a
4-13     school district that contains the territory of a home-rule
4-14     municipality from containing territory that is located outside the
4-15     municipal boundaries.
4-16           SECTION 2. This Act takes effect September 1, 2001.