78R7219 BDH-D

By:  Truitt                                                       H.B. No. 3123



A BILL TO BE ENTITLED

AN ACT

relating to monetary incentives for consolidation of services among 
public school districts.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter A, Chapter 11, Education Code, is 
amended by adding Section 11.003 to read as follows:
	Sec. 11.003.  GRANTS FOR CONSOLIDATED SERVICES AMONG 
DISTRICTS.  (a)  In this section, "service" means an 
administrative, educational, or other service provided by a school 
district, including a service related to curriculum design, 
payroll, purchasing, or technology.
	(b)  The commissioner shall establish a grant program 
designed to encourage school districts to consolidate services in 
an effort to improve efficiency and decrease costs related to 
provision of the services.
	(c)  From funds appropriated or donated for the purpose, the 
commissioner shall award grants based on criteria adopted by the 
commissioner.
	(d)  To be eligible to receive a grant, a school district 
must:       
		(1)  apply within the period and in the manner required 
by the commissioner; and
		(2)  provide the commissioner with evidence of 
projected increased efficiency and monetary savings that will 
result from consolidating services with another district.
	(e)  The commissioner shall determine the amount of a grant 
awarded under this section.  In making that determination, the 
commissioner shall ensure that the grant amount is:
		(1)  based on a percentage of the monetary savings 
projected to result from the consolidation of services; and
		(2)  sufficient to encourage school districts to 
consolidate services and apply for grants.
	(f)  The commissioner may seek private contributions to 
increase the amount of state money available to fund the grant 
program.
	(g)  Not later than December 1 of each even-numbered year, 
the commissioner shall submit to the legislature a report on the 
grant program.  The report must include:
		(1)  a description of how the consolidation of services 
among school districts affects necessary district operations;
		(2)  a statement of applicable efficiencies of scale, 
expressed in measurable terms;
		(3)  the payment schedule used for grants; and                         
		(4)  a method for computing and documenting 
efficiencies resulting from consolidation of services among 
districts.
	SECTION 2.  Subject to the availability of funding, the 
commissioner of education shall adopt rules necessary to administer 
the grant program authorized by Section 11.003, Education Code, as 
added by this Act, not later than January 1, 2004.
	SECTION 3.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.