82S10149 CAE-D
 
  By: Dutton H.B. No. 44
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the consolidation of, or detachment and annexation of
  territory in, certain school districts and the board of trustees of
  those districts.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle C, Title 2, Education Code, is amended
  by adding Chapter 14 to read as follows:
  CHAPTER 14. CONSOLIDATION OF OR DETACHMENT AND ANNEXATION
  IN CERTAIN SCHOOL DISTRICTS
         Sec. 14.001.  PURPOSE OF CHAPTER.  (a)  The purpose of this
  chapter is to provide for the creation of one independent school
  district in each county in this state, having boundaries
  coextensive with the boundaries of the county.
         (b)  This chapter does not affect:
               (1)  the ability of a school district to consolidate or
  detach and annex territory under Chapter 41; or
               (2)  the power of the commissioner to order a
  consolidation or a detachment and annexation under Chapter 41.
         Sec. 14.002.  NONAPPLICABILITY OF CHAPTER.  This chapter
  does not apply to:
               (1)  a school district that, on the effective date of
  this chapter, has boundaries that are coextensive with those of a
  single county; or
               (2)  a special-purpose school district under
  Subchapter H, Chapter 11.
         Sec. 14.003.  CONSOLIDATION OF CERTAIN SCHOOL DISTRICTS.  
  Each school district that contains territory located in a single
  county shall enter into one or more consolidation agreements with
  each other school district located in the county.
         Sec. 14.004.  DETACHMENT AND ANNEXATION OF TERRITORY OF
  CERTAIN SCHOOL DISTRICTS.  (a)  Each school district that contains
  territory located in two or more counties shall enter into one or
  more agreements under which district territory in a county other
  than the county in which the largest part of the district's student
  population resides is detached from the district and annexed to a
  district in the county in which that territory is located.
         (b)  After completing a detachment and annexation agreement
  as required by Subsection (a), the school district shall enter into
  one or more consolidation agreements as required by Section 14.003.
         Sec. 14.005.  INITIATION OF PROCEDURE.  A consolidation
  under Section 14.003 or a detachment and annexation under Section
  14.004 must be initiated by a resolution of the board of trustees of
  each school district involved in the procedure.
         Sec. 14.006.  ELECTION NOT REQUIRED.  An election is not
  required for a consolidation under Section 14.003 or a detachment
  and annexation under Section 14.004.
         Sec. 14.007.  EFFECTIVE DATE OF TRANSFER.  (a)  A
  consolidation under Section 14.003 or a detachment and annexation
  under Section 14.004 must have an effective date not later than July
  1, 2016.
         (b)  On the effective date of the transfer:
               (1)  students residing in the transferred territory
  become residents of the receiving school district;
               (2)  title to property allocated to the receiving
  district vests in the district;
               (3)  the receiving district assumes any debt allocated
  to it; and
               (4)  the receiving district assumes jurisdiction of the
  annexed territory for all other purposes.
         Sec. 14.008.  TERMS OF AGREEMENT.  An agreement under
  Section 14.003 or 14.004 must include, as appropriate:
               (1)  a schedule for electing a board of trustees of the
  new school district;
               (2)  provisions relating to the transfer of title to
  district property located in an area detached from one district and
  annexed to another; and
               (3)  provisions relating to allocation of debt in
  connection with district property located in an area detached from
  one district and annexed to another.
         Sec. 14.009.  STATUS OF RESULTING DISTRICT; ELECTION OF
  BOARD OF TRUSTEES.  (a)  A school district resulting from a
  consolidation or detachment and annexation under this chapter is an
  independent school district.
         (b)  Beginning with the first regular election after the
  consolidation, the board of trustees shall be elected in the manner
  provided by Section 11.0511.
         Sec. 14.010.  ABOLITION OF COUNTY SYSTEM.  (a)  On the
  effective date of an agreement under this chapter creating a school
  district that contains all the territory in a single county that has
  a county system operating under former Chapter 18 as provided by
  Section 11.301, the county system is abolished.
         (b)  On the abolition of a county system under this section,
  all assets and liabilities of the system are transferred to the
  independent school district for the county.
         Sec. 14.011.  ASSUMPTION OF DEBT.  (a)  A school district
  that assumes the indebtedness of another district under this
  chapter is not required to conduct an election on assumption of the
  indebtedness. Without an election, the school district assuming the
  indebtedness may impose and collect taxes necessary to pay
  principal and interest on the assumed debt so long as the debt is
  outstanding.
         (b)  Without an election, a school district may issue
  refunding bonds for bonds of another district assumed under this
  chapter.
         Sec. 14.012.  TAXING AUTHORITY TRANSFER.  If all or part of
  the territory of a school district is annexed to another district,
  the receiving district may impose taxes at the rate established in
  accordance with law for the district as a whole and is not required
  to conduct an election for the purpose of taxing the territory
  received.
         Sec. 14.013.  BOUNDARY CHANGES RESULTING IN APPRAISAL
  DISTRICT CHANGES.  (a)  This section applies if all or part of
  territory annexed to a school district is in an appraisal district
  in which the receiving district does not participate.
         (b)  For the tax year in which the annexation is effective,
  the receiving district may impose taxes on the basis of:
               (1)  the valuation arrived at by the appraisal district
  in which the territory is located before the annexation; or
               (2)  the valuation arrived at by a reappraisal
  requested by the receiving district, and conducted by the appraisal
  district in which the receiving district participates, in the
  manner prescribed by Section 25.18(c), Tax Code.
         Sec. 14.014.  ACTION BY COMMISSIONER.  (a)  If a school
  district required to enter into a consolidation agreement or
  detachment and annexation agreement under this chapter fails to do
  so before May 1, 2016, the commissioner shall enter an order
  consolidating the school district with another district or
  detaching territory from the district and annexing the territory to
  another district so that each county contains:
               (1)  a single independent school district; or
               (2)  a single independent school district and one or
  more special-purpose school districts under Subchapter H, Chapter
  11.
         (b)  An order under this section may contain any appropriate
  provision that may be contained in an agreement under Section
  14.008.
         Sec. 14.015.  EXPIRATION.  This chapter expires September 1,
  2016.
         SECTION 2.  The heading to Section 11.051, Education Code,
  is amended to read as follows:
         Sec. 11.051.  GOVERNANCE OF INDEPENDENT SCHOOL DISTRICT[;
  NUMBER OF TRUSTEES].
         SECTION 3.  Subchapter C, Chapter 11, Education Code, is
  amended by adding Section 11.0511 to read as follows:
         Sec. 11.0511.  NUMBER OF TRUSTEES; METHOD OF ELECTING BOARD.  
  (a) The board of trustees of a school district consists of nine
  members, elected as provided by this section.
         (b)  One member of the board of trustees is elected by the
  voters of the entire school district and shall serve as president of
  the board. Two members of the board of trustees are elected from
  each county commissioners precinct by the voters of that precinct.
         (c)  To be eligible to be a candidate for or to serve as
  president of the board of trustees, a person must be a registered
  voter in the school district. Except as provided by Subsection (e),
  to be a candidate for or to serve as a member of the board of
  trustees from a county commissioners precinct, a person must be a
  registered voter of that precinct.
         (d)  A person shall indicate on the application for a place
  on the ballot:
               (1)  the precinct that the person seeks to represent;
  or
               (2)  that the person seeks the office of president.
         (e)  When the boundaries of the county commissioners
  precincts are redrawn after each federal decennial census to
  reflect population changes, a member of the board of trustees in
  office on the effective date of the change, or a member of the board
  of trustees elected or appointed before the effective date of the
  change whose term of office begins on or after the effective date of
  the change, shall serve in the precinct to which elected or
  appointed even though the change in boundaries places the person's
  residence outside the precinct for which the person was elected or
  appointed.
         (f)  Before September 1, 2016, a school district described by
  Section 14.002(1) shall begin electing its board of trustees in the
  manner prescribed by this section and Section 11.059.  This
  subsection expires September 1, 2016.
         SECTION 4.  Effective September 1, 2016, Section 11.059,
  Education Code, is amended by amending Subsection (d) and adding
  Subsection (f) to read as follows:
         (d)  A board policy must state the schedule on which specific
  terms expire. The policy must provide that except as provided by
  Subsection (f), the terms of trustees elected from the same
  commissioners precinct expire at different times.
         (f)  At the first election of trustees following a change in
  the boundaries of county commissioners precincts as provided by
  Section 11.0511:
               (1)  the positions of all trustees elected from
  commissioners precincts shall be filled;
               (2)  the two candidates receiving the highest number of
  votes for each county commissioners precinct are elected; and
               (3)  the trustees then elected shall, for each
  precinct, draw lots for staggered terms as provided by this
  section.
         SECTION 5.  Effective September 1, 2016, Section 11.061(c),
  Education Code, is amended to read as follows:
         (c)  At [Except as provided by Section 11.062, at] the first
  meeting after each election and qualification of trustees, the
  members shall organize by selecting:
               (1)  [a president, who must be a member of the board;
               [(2)]  a secretary, who may or may not be a member of
  the board; and
               (2) [(3)]  other officers and committees the board
  considers necessary.
         SECTION 6.  Effective September 1, 2016, Section 11.301(a),
  Education Code, is amended to read as follows:
         (a)  A school district [or county system] operating under
  former Chapter 17, [18,] 22, 25, 26, 27, or 28 on May 1, 1995, may
  continue to operate under the applicable chapter as that chapter
  existed on that date and under state law generally applicable to
  school districts that does not conflict with that chapter.
         SECTION 7.  Effective September 1, 2016, Section 11.302,
  Education Code, is amended to read as follows:
         Sec. 11.302.  PUBLIC INFORMATION.  The governing body of a
  school district [or county system] to which Section 11.301 applies
  shall make available to the public for inspection and copying
  during regular operating hours a copy of the provisions under which
  the district [or county system] operates that are specific to that
  type of district [or county system].
         SECTION 8.  Section 11.354, Education Code, is amended to
  read as follows:
         Sec. 11.354.  ABOLITION OF SPECIAL-PURPOSE DISTRICT.  (a) On
  the written request signed by a majority of the board of trustees of
  a military reservation school district, the State Board of
  Education may abolish the district. The State Board of Education
  shall give written notice to the board of trustees requesting
  abolition.
         (b)  Each commissioners court shall annex the territory of
  the abolished military reservation school district in its county to
  a contiguous school district in the county.
         (c)  Title to the real property of the abolished military
  reservation school district vests in the district to which the
  property is annexed.
         (d)  The school district to which territory from the
  abolished district is annexed assumes and is liable for the
  indebtedness of the abolished district.
         (e)  A creditor of an abolished military reservation school
  district must file the creditor's claim against the district with
  the commissioners court not later than the 60th day after the
  effective date on which the military reservation school district is
  abolished and, if the claim is not allowed, may maintain suit
  against the abolished military reservation school district as such.
  Suit must be brought not later than the first anniversary of the
  date on which the claim is disallowed. Process in a suit, if
  necessary, may be served on the county judge of each county in which
  the district was located. The commissioners court shall defend any
  suit against an abolished military reservation school district but
  may settle the litigation as the commissioners court considers
  advisable. This section does not waive any defense available to the
  abolished district. [The territory of the abolished district and
  property of the district shall be disposed of as provided by Section
  13.205.]
         SECTION 9.  Section 12.029, Education Code, is amended to
  read as follows:
         Sec. 12.029.  STATUS OF DISTRICT IN CASE OF ANNEXATION OR
  CONSOLIDATION.  (a)  If a school district is annexed to another
  district under Chapter 14 [13], and only one of the districts has a
  home-rule school district status, the status, as a home-rule or
  other type of school district, of the receiving district is the
  status for both districts following annexation.
         (b)  Except as provided by Subchapter H, Chapter 41, if two
  or more school districts having different status, one of which is
  home-rule school district status, consolidate into a single
  district, [the petition under Section 13.003 initiating the
  consolidation must state] the status for the consolidated district
  is the status of the district with the greatest enrollment. [The
  ballot shall be printed to permit voting for or against the
  proposition: "Consolidation of (names of school districts) into a
  single school district governed as (status of school district
  specified in the petition)."]
         SECTION 10.  Section 39.102(a), Education Code, is amended
  to read as follows:
         (a)  If a school district does not satisfy the accreditation
  criteria under Section 39.052, the academic performance standards
  under Section 39.053 or 39.054, or any financial accountability
  standard as determined by commissioner rule, the commissioner shall
  take any of the following actions to the extent the commissioner
  determines necessary:
               (1)  issue public notice of the deficiency to the board
  of trustees;
               (2)  order a hearing conducted by the board of trustees
  of the district for the purpose of notifying the public of the
  insufficient performance, the improvements in performance expected
  by the agency, and the interventions and sanctions that may be
  imposed under this section if the performance does not improve;
               (3)  order the preparation of a student achievement
  improvement plan that addresses each student achievement indicator
  under Section 39.053(c) for which the district's performance is
  insufficient, the submission of the plan to the commissioner for
  approval, and implementation of the plan;
               (4)  order a hearing to be held before the commissioner
  or the commissioner's designee at which the president of the board
  of trustees of the district and the superintendent shall appear and
  explain the district's low performance, lack of improvement, and
  plans for improvement;
               (5)  arrange an on-site investigation of the district;
               (6)  appoint an agency monitor to participate in and
  report to the agency on the activities of the board of trustees or
  the superintendent;
               (7)  appoint a conservator to oversee the operations of
  the district;
               (8)  appoint a management team to direct the operations
  of the district in areas of insufficient performance or require the
  district to obtain certain services under a contract with another
  person;
               (9)  if a district has a current accreditation status
  of accredited-warned or accredited-probation, fails to satisfy any
  standard under Section 39.054(e), or fails to satisfy financial
  accountability standards as determined by commissioner rule,
  appoint a board of managers to exercise the powers and duties of the
  board of trustees;
               (10)  if for two consecutive school years, including
  the current school year, a district has received an accreditation
  status of accredited-warned or accredited-probation, has failed to
  satisfy any standard under Section 39.054(e), or has failed to
  satisfy financial accountability standards as determined by
  commissioner rule, revoke the district's accreditation and,[:
                     [(A)     order closure of the district and annex the
  district to one or more adjoining districts under Section 13.054;
  or
                     [(B)] in the case of a home-rule school district
  or open-enrollment charter school, order closure of all programs
  operated under the district's or school's charter; or
               (11)  if a district has failed to satisfy any standard
  under Section 39.054(e) due to the district's dropout rates, impose
  sanctions designed to improve high school completion rates,
  including:
                     (A)  ordering the development of a dropout
  prevention plan for approval by the commissioner;
                     (B)  restructuring the district or appropriate
  school campuses to improve identification of and service to
  students who are at risk of dropping out of school, as defined by
  Section 29.081;
                     (C)  ordering lower student-to-counselor ratios
  on school campuses with high dropout rates; and
                     (D)  ordering the use of any other intervention
  strategy effective in reducing dropout rates, including mentor
  programs and flexible class scheduling.
         SECTION 11.  Section 41.032, Education Code, is amended to
  read as follows:
         Sec. 41.032.  CONSOLIDATION AGREEMENT [GOVERNING LAW].  The
  agreement among the consolidating districts [Except to the extent
  modified by the terms of the agreement, the consolidated district
  is governed by the applicable provisions of Subchapter D, Chapter
  13, other than a provision requiring consolidating districts to be
  contiguous. The agreement] may not be inconsistent with the
  requirements of this subchapter.
         SECTION 12.  Section 41.033(a), Education Code, is amended
  to read as follows:
         (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 impose [levy] taxes.  The
  agreement may include:
               (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)  a requirement that the consolidated district
  educate particular grades within the boundaries of a district being
  consolidated;
               (4)  a requirement that the consolidated district
  maintain a specific campus in operation;
               (5)  a provision stating 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)  a provision stating 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 [, including a provision authorized by Section
  13.158(b)].
         SECTION 13.  Subchapter B, Chapter 41, Education Code, is
  amended by adding Sections 41.0331 and 41.0332 to read as follows:
         Sec. 41.0331.  ELECTION.  (a)  Each board of trustees of a
  school district that proposes to consolidate under this subchapter
  shall:
               (1)  issue an order for an election to be held on the
  same day in each district included in the proposed consolidated
  district; and
               (2)  give notice of the election.
         (b)  The ballot in the election shall be printed to permit
  voting for or against the proposition: "Consolidation of (names of
  school districts) into a single school district."
         (c)  Each board of trustees shall canvass the returns of the
  election in its district and shall publish the results separately
  for each district.
         (d)  If the votes cast in all districts show a majority in
  each district voting in favor of the consolidation, the boards of
  trustees shall declare the districts consolidated.
         Sec. 41.0332.  TITLE TO PROPERTY; ASSUMPTION OF DEBT.  Title
  to all property of the consolidating districts vests in the
  consolidated district, and the consolidated district assumes and is
  liable for the outstanding indebtedness of the consolidating
  districts.
         SECTION 14.  Section 41.064, Education Code, is amended to
  read as follows:
         Sec. 41.064.  ALLOCATION OF INDEBTEDNESS.  (a) The
  annexation agreement may allocate to the receiving district any
  portion of the indebtedness of the district from which the
  territory is detached, and the receiving district assumes and is
  liable for the allocated indebtedness.
         (b)  A school district that assumes the indebtedness of
  another district under this subchapter is not required to conduct
  an election on assumption of the indebtedness. Without an election,
  the school district assuming the indebtedness may impose and
  collect taxes necessary to pay principal and interest on the
  assumed debt so long as the debt is outstanding.
         (c)  Without an election, a school district may issue
  refunding bonds for bonds of another district assumed under this
  subchapter.
         SECTION 15.  Subchapter C, Chapter 41, Education Code, is
  amended by adding Sections 41.066 and 41.067 to read as follows:
         Sec. 41.066.  TRANSFER.  On the effective date of the
  transfer of territory under this subchapter:
               (1)  students residing in the transferred territory
  become residents of the receiving school district;
               (2)  title to property allocated to the receiving
  district vests in the district;
               (3)  the receiving district assumes any debt allocated
  to it; and
               (4)  the receiving district assumes jurisdiction of the
  annexed territory for all other purposes.
         Sec. 41.067.  TAXING AUTHORITY TRANSFER.  The receiving
  district may impose taxes at the rate established in accordance
  with law for the district as a whole and is not required to conduct
  an election for the purpose of taxing the territory received.
         SECTION 16.  Section 41.096(a), Education Code, is amended
  to read as follows:
         (a)  After first executing an agreement under this section,
  the board of trustees shall order and conduct an election[, in the
  manner provided by Sections 13.003(d)-(g),] to obtain voter
  approval of the agreement.
         SECTION 17.  Section 41.122(a), Education Code, is amended
  to read as follows:
         (a)  After first executing an agreement under this
  subchapter other than an agreement under Section 41.125, the board
  of trustees of the district that will be educating nonresident
  students shall order and conduct an election[, in the manner
  provided by Sections 13.003(d)-(g),] to obtain voter approval of
  the agreement.
         SECTION 18.  The following provisions of the Education Code
  are repealed:
               (1)  Chapter 13; and
               (2)  Sections 41.007, 41.034(b) and (c), 41.062, and
  41.253(d).
         SECTION 19.  Effective September 1, 2016, the following
  provisions of the Education Code are repealed:
               (1)  Sections 11.051(b) and (c);
               (2)  Section 11.052;
               (3)  Section 11.053;
               (4)  Section 11.054;
               (5)  Section 11.055(b);
               (6)  Section 11.057;
               (7)  Section 11.058;
               (8)  Section 11.062;
               (9)  Section 11.065; and
               (10)  Section 11.303.
         SECTION 20.  Except as otherwise provided by this Act, 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 on the
  91st day after the last day of the legislative session, except as
  otherwise provided by this Act.