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Amend CSHB 3459 by adding the following SECTIONS in the 
appropriate place and renumber accordingly:
	"SECTION ____.  Subsection (a), Section 13.005, Education 
Code, is amended to read as follows:
	(a)  Except as provided by this section or by a local 
consolidation agreement under Section 13.158, the annexation of all 
or part of the territory of one district to another is effective on 
the first July 1 that is more than 30 days after the date of the 
order or ordinance accomplishing the annexation or of the 
declaration of the results of an election at which the transfer is 
approved."
	"SECTION ____.  Section 13.152, Education Code, is amended 
to read as follows:
	Sec. 13.152.  RESOLUTION OR PETITION.  Consolidation is 
initiated in each district proposed to be consolidated by either a 
resolution adopted by the board of trustees of the [each] district 
or a petition requesting an election on the question that is signed 
by the required number of registered voters of the district [each of 
the districts proposed to be consolidated].  Each district is not 
required to use the same method to initiate consolidation."
	"SECTION ____.  Section 13.153, Education Code, is amended 
by amending Subsection (b) and adding Subsection (c) to read as 
follows:
	(b)  If no local consolidation agreement is submitted under 
Section 13.158, the [The] ballot in the election shall be printed to 
permit voting for or against the proposition:  "Consolidation of 
(name of school districts) into a single school district."
	(c)  If a local consolidation agreement is submitted under 
Section 13.158, the ballot in the election shall be printed to 
permit voting for or against the proposition:  "Consolidation of 
(name of school districts) into a single school district under a 
local consolidation agreement.""
	"SECTION ____.  Subsections (b) and (c), Section 13.155, 
Education Code, are amended to read as follows:
	(b)  Except as provided by Subsection (c) or by a local 
consolidation agreement under Section 13.158, the board of trustees 
of the school district having the greatest membership on the last 
day of the school year preceding the consolidation serves as the 
board of trustees of the consolidated district until the next 
regular election of trustees, at which time the consolidated 
district shall elect a board of trustees.
	(c)  Except as provided by a local consolidation agreement 
under Section 13.158, if [If] the membership on the last day of the 
school year preceding the consolidation in the district with the 
largest membership is more than five times that of the other 
district or districts consolidating with it, the trustees of the 
district with the largest membership continue to serve for the 
terms for which they have been elected and only the vacancies, as 
they occur, are filled from the consolidated district."
	"SECTION ____.  Subchapter D, Chapter 13, Education Code, is 
amended by adding Section 13.158 to read as follows:
	Sec. 13.158.  LOCAL CONSOLIDATION AGREEMENT.  (a)  Before 
issuing an order for an election under Section 13.153, the boards of 
trustees of the districts to be consolidated may draft a local 
consolidation agreement to be submitted to the registered voters in 
each district.  An agreement must set out the composition and method 
of election of the consolidated board of trustees.  The identical 
agreement must be submitted to the registered voters of each 
district.
	(b)  A local consolidation agreement may provide the 
following:       
(1)  an effective date that is not more than one year 
after the date of the consolidation election;
(2)  a schedule to elect the board of trustees of the 
consolidated district before or after the effective date of 
consolidation;
(3)  that the consolidated district educate 
particular grades within the boundaries of a district being 
consolidated;
(4)  that the consolidated district maintain a 
specific campus in operation;
(5)  that if the votes cast in some districts, but not 
all districts, show a majority voting in favor of the 
consolidation, the districts receiving a favorable vote may 
consolidate;
(6)  that a majority of the votes cast in each district 
must be in favor of consolidation for there to be a consolidation; 
or
(7)  any other provision consistent with state and 
federal law.        
	(c)  Not later than 30 days before a consolidation election 
is held, the boards of trustees of the districts to be consolidated 
may amend the local consolidation agreement.  After a successful 
election to consolidate, the local consolidation agreement may not 
be amended for five years following the effective date of 
consolidation, unless a shorter period is set out in the agreement.  
After that time, the agreement may be amended only by unanimous vote 
of the board of trustees of the district.
	(d)  The commissioner may waive a requirement under this 
section or Section 13.159 on application of the boards of trustees 
of all districts proposed for consolidation."
	"SECTION ____.  Subchapter D, Chapter 13, Education Code, is 
amended by adding Section 13.159 to read as follows:
	Sec. 13.159.  PUBLIC INSPECTION AND HEARING.  (a)  A local 
consolidation agreement under Section 13.158 must be made available 
for public inspection during regular business hours at the central 
administration building of each district for at least 25 days 
before the consolidation election.
	(b)  Each district shall hold a public hearing to allow 
interested persons to present comments related to the local 
consolidation agreement.  If the agreement is amended following a 
public hearing, before the consolidation election each district 
shall hold another public hearing to consider the amendment.
	(c)  Each district shall provide notice of each public 
hearing to the public."
	"SECTION ____.  Section 41.033, Education Code, is amended 
to read as follows:
	Sec. 41.033.  GOVERNANCE PLAN.  (a)  The agreement among the 
consolidating districts may include a governance plan designed to 
preserve community-based and site-based decision making within the 
consolidated district, including the delegation of specific powers 
of the governing board of the district other than the power to levy 
taxes, including a provision authorized by Section 13.158(b).
	(b)  The governance plan may provide for a transitional board 
of trustees during the first year after consolidation, but 
beginning with the next year the board of trustees must be elected 
from within the boundaries of the consolidated district [from 
single-member districts drawn in accordance with the procedures 
provided by Section 11.052].  If the consolidating districts elect 
trustees from single-member districts, the consolidated district 
must adopt a plan to elect its board of trustees from single-member 
districts."
	"SECTION ____.  (a)  The changes in law made by this Act to 
Subsection (a), Section 13.005, Education Code, Subsections (b) and 
(c), Section 13.155, Education Code, and Section 41.033, Education 
Code, apply only to a school district consolidated with an 
effective date on or after the effective date of this Act.  A school 
district consolidated with an effective date before the effective 
date of this Act is covered by the law in effect on the effective 
date of the district's consolidation, and the former law is 
continued in effect for that purpose."