CHAPTER 13. CREATION, CONSOLIDATION, AND ABOLITION OF A DISTRICT - Texas Statutes

EDUCATION CODE

TITLE 2. PUBLIC EDUCATION

SUBTITLE C. LOCAL ORGANIZATION AND GOVERNANCE

CHAPTER 13. CREATION, CONSOLIDATION, AND ABOLITION OF A DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 13.001. DEFINITION. In this chapter, "membership" means

the number of students enrolled in a school district as of a

given date.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 13.002. PERMITTED FREQUENCY OF PROPOSED ACTIONS. (a) If

at an election on a proposition under this chapter the majority

of the votes are cast against the proposition, another election

for the same purpose may not be held earlier than the

corresponding uniform election date three years after the date of

the first election. If a majority of the votes are cast in favor

of the proposition, an election to reverse the effects of the

first election may not be held earlier than the corresponding

uniform election date three years after the date of the first

election.

(b) If, without an election, an action under this chapter occurs

on the order or ordinance of an authority acting in response to a

petition and the petitioners' request is rejected, that authority

may not consider a subsequent petition on the same request

earlier than three years after the date on which the request is

rejected. If the request is granted and the order is issued or

the ordinance is adopted, a petition to reverse the effects of

the order or ordinance may not be considered by the authority

earlier than three years after the date of issuance or adoption.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 13.003. PETITION AND ELECTION. (a) Except as otherwise

provided by this chapter, this section governs:

(1) the validity of a petition submitted to request an election

under this chapter; and

(2) the conduct of the resulting election.

(b) To be valid, a petition must:

(1) be submitted to the county judge serving the county in which

the appropriate school district is located;

(2) be signed by at least 10 percent of the registered voters of

the appropriate district; and

(3) state the purpose for which it is being submitted.

(c) Immediately following receipt of a valid petition, the

county judge shall order the election to be held on an authorized

election date, as prescribed by Chapter 41, Election Code,

occurring not later than the 60th day after the date of receipt.

If an authorized date within that period does not allow

sufficient time to comply with other legal requirements or if

there is no authorized date within that period, the election

shall be ordered for the next authorized date.

(d) The election order must include the date of the election,

the hours during which the polls will be open, the location of

the polling places, and the proposition to be voted on.

(e) Not earlier than the 30th day or later than the 10th day

before the date of the election, the county judge shall give

notice of the election by having a copy of the election order

published at least once in a newspaper published at least once

each week in the appropriate school district. If such a newspaper

is not published in the district, the notice shall be published

in at least one newspaper of general circulation in the county in

which the district is located. The county judge shall give

additional notice of the election by having a copy of the

election order posted in a public place in each election precinct

not later than the 21st day before the date of the election.

(f) The election precincts and polling places usually used in

the elections of the appropriate school district shall be used in

an election held under this chapter, except that if another

election is occurring on the same date for all or part of the

same geographic area, precincts and polling places shall be

selected to allow each voter to cast ballots at the same polling

place for each of the elections. To the extent practical, the

election shall be conducted in accordance with the Election Code.

(g) The expenses of the election shall be paid by the

appropriate school district or districts.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 13.004. ALLOCATION OF INDEBTEDNESS AND PERSONAL PROPERTY.

(a) If under this chapter a school district assumes a portion of

the indebtedness of another district, the commissioners court by

order shall equitably allocate the indebtedness among the

districts involved. If territory from one district is annexed to

another or if a district is abolished, the commissioners court

shall also equitably allocate among the receiving districts a

portion of the personal property of the annexed district or all

the personal property of an abolished district. If districts

located in more than one county are involved, the commissioners

court of each county in which an involved school district is

located must agree on the allocation of indebtedness and personal

property.

(b) In allocating the indebtedness and personal property, the

commissioners court shall consider the value of the properties

involved and the taxable value of the districts involved.

(c) The order of the commissioners court is binding on the

school districts and territory affected by the order.

(d) A school district required to assume 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 levy and

collect taxes necessary to pay principal and interest on the

assumed debt so long as the debt is outstanding.

(e) Without an election, a school district may issue refunding

bonds for bonds of another district assumed under this chapter.

(f) If an entire district is annexed to or consolidated with

another district, if a district is converted from a common to an

independent school district, or if a school district is separated

from a municipality, the governing board of the district as

changed may, without an election, sell and deliver any unissued

bonds voted in the district before the change and may levy and

collect taxes in the district as changed for the payment of

principal and interest on bonds.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 13.005. EFFECTIVE DATE OF TRANSFER. (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.

(b) On the effective date of the transfer:

(1) students residing in the territory become residents of the

receiving 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.

(c) If the annexation is appealed to the commissioner and is

approved, the transfer is effective on a date set by the

commissioner that is not earlier than the 30th day after the date

of the commissioner's decision in the appeal. If the decision of

the commissioner is appealed to a district court in Travis

County, the transfer, if approved, is effective on a date set by

the court.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995. Amended by Acts 2003, 78th Leg., ch. 201, Sec. 7, eff.

Sept. 1, 2003.

Sec. 13.006. TAXING AUTHORITY TRANSFER. (a) If all or part of

the territory of a school district is annexed to another

district, the receiving district may levy 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.

(b) Conversion of a common school district or rural high school

district to an independent school district or separation from

municipal control does not affect the taxes levied for school

purposes. The new district may levy and collect taxes at the same

rate at which the taxes were previously levied and is not

required to conduct an election for that purpose.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 13.008. DISTRICT TRUSTEE APPROVAL OF BOUNDARY CHANGES

REQUIRED. Any change in the boundaries of a school district is

not effective unless approved by a majority of the board of

trustees of the district if the board's approval is required

under this chapter.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 13.009. APPEALS. (a) A decision of a commissioners court

under this chapter may be appealed for a de novo review.

(b) If this chapter requires the agreement of or action by two

or more commissioners courts, and the commissioners courts fail

to agree or take action within a reasonable time set by rule of

the State Board of Education, a person aggrieved by the failure

may appeal to the commissioner for resolution of the issue.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 13.010. BOUNDARY DESCRIPTIONS AND MAPS TO BE FILED WITH

AGENCY. (a) Each school district shall file with the agency:

(1) a complete and legally sufficient description of the

boundaries of the district;

(2) a map of the district that:

(A) is drawn to the county general highway maps produced by the

Texas Department of Transportation or a similar map of sufficient

detail to display the names of visible features that the

boundaries follow or to which the boundaries are in close

proximity; and

(B) is an accurate and legible representation of the boundaries

in relationship to other features on the map; and

(3) a list of voting precincts in the district, separately

listing those precincts wholly in the district and those

precincts only partly in the district.

(b) A school district shall amend the information and maps on

file under this section if the boundaries of the district change

or if any other change makes the information on file incomplete

or inaccurate.

(c) The agency shall make maps and information maintained under

this section available to the legislature and legislative

agencies without cost.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

SUBCHAPTER B. DETACHMENT; ANNEXATION

Sec. 13.051. DETACHMENT AND ANNEXATION OF TERRITORY. (a) In

accordance with this section, territory may be detached from a

school district and annexed to another school district that is

contiguous to the detached territory. A petition requesting the

detachment and annexation must be presented to the board of

trustees of the district from which the territory is to be

detached and to the board of trustees of the district to which

the territory is to be annexed. Each board of trustees to which a

petition is required to be presented must conduct a hearing and

adopt a resolution as provided by this section for the annexation

to be effective.

(b) The petition requesting detachment and annexation must:

(1) be signed by a majority of:

(A) the registered voters residing in the territory to be

detached and annexed, if the territory has residents; or

(B) the surface owners of taxable property in the territory to

be detached and annexed, if the territory does not have

residents; and

(2) give the metes and bounds of the territory to be detached

and annexed.

(c) Territory that does not have residents may be detached from

a school district and annexed to another school district if:

(1) the total taxable value of the property in the territory

according to the most recent certified appraisal roll for each

school district is not greater than:

(A) five percent of the district's taxable value of all property

in that district as determined under Subchapter M, Chapter 403,

Government Code; and

(B) $5,000 property value per student in average daily

attendance as determined under Section 42.005; and

(2) the school district from which the property will be detached

does not own any real property located in the territory.

(d) The proposed annexation must be approved by the board of

trustees of each affected district, subject to the appeal

provisions of Subsection (j).

(e) Unless the petition is signed by a majority of the trustees

of the district from which the territory is to be detached,

territory that has residents may not be detached from a school

district under this section if detachment would reduce that

district's tax base by a ratio at least twice as large as the

ratio by which it would reduce its membership. The first ratio is

determined by dividing the assessed value of taxable property in

the affected territory by the assessed value of all taxable

property in the district, both figures according to the preceding

year's tax rolls. The second ratio is determined by dividing the

number of students residing in the affected territory by the

number of students residing in the district as a whole, using

membership on the last day of the preceding school year and the

students' places of residence as of that date.

(f) A school district may not be reduced to an area of less than

nine square miles.

(g) Immediately following receipt of the petition as required by

this section, each affected board of trustees shall give notice

of the contemplated change by publishing and posting a notice in

the manner required for an election order under Section 13.003.

The notice must specify the place and date at which a hearing on

the matter shall be held. Unless the districts hold a joint

hearing, the districts must hold hearings on separate dates. At

each hearing, affected persons are entitled to an opportunity to

be heard.

(h) At the hearing, each board of trustees shall consider the

educational interests of the current students residing or future

students expected to reside in the affected territory and in the

affected districts and the social, economic, and educational

effects of the proposed boundary change. After the conclusion of

the hearing, each board of trustees shall make findings as to the

educational interests of the current students residing or future

students expected to reside in the affected territory and in the

affected districts and as to the social, economic, and

educational effects of the proposed boundary change and shall, on

the basis of those findings, adopt a resolution approving or

disapproving the petition. The findings and resolution shall be

recorded in the minutes of each affected board of trustees and

shall be reported to the commissioners court of the county to

which the receiving district is assigned for administrative

purposes by the agency and to the commissioners court of the

county to which the district from which territory is to be

detached is assigned for administrative purposes.

(i) If both boards of trustees of the affected districts approve

the petition, the commissioners court or commissioners courts to

whom the matter is required to be reported shall enter an order

redefining the boundaries of the districts affected by the

transfer. Title to all real property of the district from which

territory is detached within the territory annexed vests in the

receiving district, and the receiving district assumes and is

liable for any portion of the indebtedness of the district from

which the territory is to be detached that is allocated to the

receiving district under Section 13.004.

(j) If both boards of trustees of the affected districts

disapprove the petition, the decisions may not be appealed. If

the board of trustees of only one affected district disapproves

the petition, an aggrieved party to the proceedings in either

district may appeal the board's decision to the commissioner

under Section 7.057. An appeal under this subsection is de novo.

In deciding the appeal, the commissioner shall consider the

educational interests of the students in the affected territory

and the affected districts and the social, economic, and

educational effects of the proposed boundary change.

(k) Any additional tax resulting from a change of use, as

provided for by Chapter 23, Tax Code, and the interest and

penalty on the additional tax, that is imposed for any year on

land in the annexed territory shall be paid to the school

district that imposed the tax.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 13.052. DORMANT SCHOOL DISTRICTS. (a) If the commissioner

determines that a school district has failed to operate a school

for a full school year, the commissioner shall report to each

appropriate commissioners court that the district is dormant.

(b) The commissioners court of a county shall by order annex

each dormant school district within the county with an adjoining

district or districts. If the dormant district is a county-line

district, the commissioners court of each county in which the

district is located shall annex the territory of the dormant

district that is within that county. The commissioners court may

annex territory to a school district only if the board of

trustees of that district approves the annexation.

(c) The governing board of the district to which a dormant

school district is annexed is the governing board for the new

district.

(d) The order of the commissioners court shall define by legal

boundary description the territory of the new district as

enlarged and shall be recorded in the minutes of the

commissioners court.

(e) Title to the real property of the dormant district vests in

the district to which the property is annexed. Each district to

which territory is annexed assumes and is liable for any portion

of the dormant district's indebtedness that is allocated to the

receiving district under Section 13.004.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 13.053. TERRITORY NOT IN SCHOOL DISTRICT. (a) All real

property must be included within the limits of a school district.

At any time it is determined that there is territory located in a

county but not within the described limits of a school district,

the commissioners court shall annex the territory to one or more

adjoining districts.

(b) The annexation order shall define by legal boundary

description the territory of the new district and shall be

recorded in the minutes of the commissioners court.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 13.054. ACADEMICALLY UNACCEPTABLE SCHOOL DISTRICTS. (a)

The commissioner by order may annex to one or more adjoining

districts a school district that has been rated as academically

unacceptable for a period of two years.

(b) The governing board of a district to which territory of an

academically unacceptable district is annexed is the governing

board for the new district.

(c) The order of the commissioner shall define by legal boundary

description the territory of the new district as enlarged.

(d) Title to the real property of the academically unacceptable

district vests in the district to which the property is annexed.

Each district to which territory is annexed assumes and is liable

for any portion of the academically unacceptable district's

indebtedness that is allocated to the receiving district under

Section 13.004.

(e) Before the commissioner orders an annexation under this

section, the commissioner shall investigate the educational and

financial impact of the annexation on the receiving district. The

commissioner may order the annexation only if the commissioner

finds that the annexation will not substantially impair the

ability of the receiving district to educate the students located

in the district before the annexation and to meet its financial

obligations incurred before the annexation.

(f) For five years beginning with the school year in which the

annexation occurs, the commissioner shall annually adjust the

local fund assignment of a district to which territory is annexed

under this section by multiplying the enlarged district's local

fund assignment computed under Section 42.252 by a fraction, the

numerator of which is the number of students residing in the

district preceding the date of the annexation and the denominator

of which is the number of students residing in the district as

enlarged on the date of the annexation.

(g) A district to which territory is annexed under this section

is entitled to additional state aid equal to the amount by which

the annual debt service required to meet the indebtedness

incurred by the district due to the annexation exceeds the

additional amount of state aid that results from the adjustment

under Subsection (f), if any. In determining the amount of annual

debt service required, the estimated tax levy from applying the

receiving district's current debt service tax rate, if any, to

the territory that has been annexed shall be deducted.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

SUBCHAPTER C. CREATION OF DISTRICT BY DETACHMENT

Sec. 13.101. CREATION OF DISTRICT BY DETACHING TERRITORY FROM

EXISTING DISTRICT. (a) A new school district may be created by

detaching territory from an existing school district or existing

contiguous school districts and establishing a new school

district.

(b) A school district created under this subchapter has all the

rights and privileges of other independent school districts.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 13.102. MINIMUM AREA AND ATTENDANCE REQUIREMENTS. A new

district may not be created with an area of less than nine square

miles or fewer than 8,000 students in average daily attendance,

and a district may not be reduced to an area of less than nine

square miles or fewer than 8,000 students in average daily

attendance.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 13.103. INITIATION OF DETACHMENT. Creation of a new

district by detachment is initiated by resolution of the board of

trustees of each district from which territory is to be detached

or by a petition presented to the commissioners court. A petition

under this subchapter must:

(1) give the metes and bounds of the proposed new district;

(2) be signed by at least 10 percent of the registered voters

residing in the proposed area to be detached from an existing

district; and

(3) be addressed to the commissioners court of the county in

which the territory of the proposed district is located or, if

the territory is in more than one county, to the commissioners

court of each county in which the territory is located.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 13.104. ELECTION. (a) Not later than the 30th day after

the date the commissioners court receives a petition under this

subchapter, the commissioners court shall hold a hearing on the

validity of the petition. If the commissioners court determines

the petition is valid, each board of trustees shall order an

election to be held on the same date in each district.

(b) The ballot shall be printed to permit voting for or against

the proposition: "Creation of a new school district that includes

the following territory from the _________ School District:

___________________." The ballot description of the territory to

be detached must be sufficient to give general notice of the

territory affected.

(c) An election on the detachment of the territory and creation

of a new district has no effect unless at least 25 percent of the

registered voters of each district vote in the election in which

the issue is on the ballot.

(d) The boards of trustees shall report the results of the

election to the appropriate commissioners courts, which shall

declare the results of the election. The new school district is

created only if the proposition receives:

(1) a majority of the votes in the territory to be detached; and

(2) a majority of the votes in the remaining territory in each

district from which property is to be detached in the manner

prescribed by Section 13.003.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 13.105. CREATION OF DISTRICT. (a) If all the requirements

of this subchapter are met, the commissioners court shall enter

an order creating the new school district. If the new district

contains territory in two or more counties, the order must be

concurred in by the commissioners court of each county concerned.

(b) At the time the order creating the district is made, the

commissioners court of the county in which the largest portion of

the district's territory is located shall appoint a board of

seven trustees for the new district to serve until the next

regular election of trustees, when a board of trustees shall be

elected in compliance with Chapter 11.

(c) Title to school district real property in the territory

detached vests in the new district. The new district assumes and

is liable for any portion of outstanding indebtedness of the

district from which the territory was detached that is allocated

to the new district under Section 13.004.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

SUBCHAPTER D. CONSOLIDATION

Sec. 13.151. DISTRICTS THAT MAY CONSOLIDATE. (a) By the

procedure provided by this subchapter, two or more school

districts may consolidate into a single school district.

(b) The consolidated district may include area in more than one

county.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

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 district or a

petition requesting an election on the question that is signed by

the required number of registered voters of the district. Each

district is not required to use the same method to initiate

consolidation.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995. Amended by Acts 2003, 78th Leg., ch. 201, Sec. 8, eff.

Sept. 1, 2003.

Sec. 13.153. ELECTION ORDER; NOTICE. (a) Each board of

trustees 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) If no 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."

(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."

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995. Amended by Acts 2003, 78th Leg., ch. 201, Sec. 9, eff.

Sept. 1, 2003.

Sec. 13.154. CANVASS; RESULT. (a) Each board of trustees shall

canvass the returns of the election in its district and shall

publish the results separately for each district.

(b) If the votes cast in all districts show a majority in each

district voting in favor of the consolidation, the board of

trustees shall declare the school districts consolidated.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 13.155. STATUS; GOVERNANCE. (a) The consolidated district

is an independent school district.

(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 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.

(d) The powers, duties, and terms of office of the trustees are

governed by Chapter 11.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995. Amended by Acts 2003, 78th Leg., ch. 201, Sec. 10, eff.

Sept. 1, 2003.

Sec. 13.156. 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.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 13.157. DISSOLUTION OF CONSOLIDATED SCHOOL DISTRICT. (a)

A consolidated school district may be dissolved by the same

procedure provided for consolidation, except that it is not

necessary to provide polling places in each of the former

districts.

(b) If the district is dissolved, each of the former districts

is restored as a separate district and classified as an

independent school district.

(c) Title to property of the consolidated district that is

allocated to each of the restored districts under Section 13.004

vests in the restored districts, and each of the restored

districts assumes and is liable for the indebtedness of the

consolidated district as allocated under that section.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

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.

Added by Acts 2003, 78th Leg., ch. 201, Sec. 11, eff. Sept. 1,

2003.

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.

Added by Acts 2003, 78th Leg., ch. 201, Sec. 11, eff. Sept. 1,

2003.

SUBCHAPTER E. ABOLITION OF INDEPENDENT SCHOOL DISTRICT

Sec. 13.201. ELIGIBILITY. An independent school district may be

abolished in the manner provided by this subchapter.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 13.202. PETITION. Abolition of an independent school

district is initiated by a petition requesting an election on the

question. The petition must be signed by a majority of the board

of trustees of the district to be abolished and must be presented

to the county judge of each county in which part of the

independent school district is situated.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 13.203. ELECTION. (a) Each county judge receiving a valid

petition shall:

(1) issue an order for an election to be held on the same day in

each county; and

(2) give notice of the election.

(b) The ballot in the election shall be printed to permit voting

for or against the proposition: "Abolition of the ___________

Independent School District."

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 13.204. ORDER ABOLISHING DISTRICT. (a) The commissioners

court of each county shall canvass the returns of the election in

its county.

(b) If a majority of the total votes cast in the district favor

abolishing the district, each commissioners court shall declare

the results. The abolition is effective only if all territory of

the district is annexed to other contiguous districts.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 13.205. DISPOSITION OF TERRITORY; AFFAIRS OF ABOLISHED

DISTRICT. (a) The property and affairs of the abolished

district are governed by this section unless otherwise controlled

by the manner in which the district was abolished.

(b) Each commissioners court shall annex the territory of the

abolished independent school district in its county to one or

more contiguous districts in the county. The commissioners court

may annex territory to a school district only if the board of

trustees of that district approves the annexation.

(c) Title to the real property of the abolished district vests

in the district to which the property is annexed.

(d) If at the time of its abolition the independent school

district does not have outstanding indebtedness, all uncollected

taxes on the property of the district for the years up to and

including the last day of January of the year immediately

following the year in which the independent school district is

abolished shall be levied and collected, at the same rate and in

the same manner as authorized for the independent school district

immediately before its abolition, by the school district to which

the territory containing the property on which taxes are due is

annexed.

(e) Each school district to which territory from the abolished

district is annexed assumes and is liable for the indebtedness of

the abolished district that is allocated to the district under

Section 13.004.

(f) A creditor of an abolished independent 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 independent school district is

abolished and, if the claim is not allowed, may maintain suit

against the abolished independent 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 county commissioners court

shall defend any suit against an abolished independent 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.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

SUBCHAPTER F. OTHER BOUNDARY CHANGES

Sec. 13.231. MINOR BOUNDARY ADJUSTMENTS BY AGREEMENT. (a) Two

contiguous school districts may adjust their common boundary by

agreement if, at the time the agreement is executed:

(1) no child who resides in the territory that is transferred

from one jurisdiction to the other is enrolled in a school of the

district from which the territory is transferred; and

(2) the taxable value of the territory that is transferred from

one jurisdiction to the other does not exceed one-tenth of one

percent of the total taxable value of all property in the school

district from which the territory is transferred.

(b) In this section, "taxable value" has the meaning assigned by

Section 403.302, Government Code.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

SUBCHAPTER G. INCENTIVE AID PAYMENTS

Sec. 13.281. INCENTIVE AID. (a) A school district created

after August 22, 1963, through consolidation may qualify for

incentive aid payments from the state.

(b) A school district may not receive incentive aid payments for

a period of more than 10 years.

(c) Incentive aid payments may be made only on application to

the agency and in compliance with this subchapter.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 13.282. AMOUNT; COMPUTATION. (a) The amount of incentive

aid payments may not exceed the difference between:

(1) the sum of the entitlements computed under Section 42.253

that would have been paid to the districts included in the

reorganized district if the districts had not been consolidated;

and

(2) the amount to which the reorganized district is entitled

under Section 42.253.

(b) If the reorganized district is not eligible for an

entitlement under Section 42.253, the amount of the incentive aid

payments may not exceed the sum of the entitlements computed

under Section 42.253 for which the districts included in the

reorganized district were eligible in the school year when they

were consolidated.

(c) If there is a series of consolidations at intervals in

compliance with this chapter, the school district last organized

is eligible to receive at due times the total sum of the series

of incentive aid payments as computed separately at the time of

each consolidation, subject to this subchapter.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 13.283. PAYMENTS REDUCED. The incentive aid payments shall

be reduced in direct proportion to any reduction in the average

daily attendance as determined under Section 42.005 of the

reorganized school district for the preceding year.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 13.284. CONDITIONS FOR PAYMENT. To receive incentive aid

payments:

(1) the geographical boundaries of the proposed district must be

submitted to the agency for approval; and

(2) the geographical boundaries approved by the agency must be

set forth in the petition for a consolidation election, if

applicable.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 13.285. COST. The cost of incentive aid payments

authorized by this subchapter shall be paid from the foundation

school fund.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995. Amended by Acts 1997, 75th Leg., ch. 1071, Sec. 1, eff.

Sept. 1, 1997.