TITLE: Relating to the consolidation of, or detachment and annexation of territory in, certain school districts.

SUMMARY: Relating to the consolidation of, or detachment and annexation of territory in, certain school districts.

FULL TEXT:
AN ACT relating to the consolidation of, or detachment and annexation of territory in, certain school 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 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. A school district resulting from a consolidation or detachment and annexation under this chapter is an independent school district. 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. 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 3. 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 4. 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 5. Section 12.029, Education Code, is amended to read as follows: Sec. .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 6. 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 7. 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 8. 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 9. 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 10. 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 11. 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 12. 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 13. 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 14. 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 15. Effective September 1, 2016, Section 11.303, Education Code, is repealed. SECTION 16. 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.