Bill Text: TX HB70 | 2011 | 82nd Legislature 1st Special | Introduced
Bill Title: Relating to a financial exigency of a school district.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-06-09 - Referred to Public Education [HB70 Detail]
Download: Texas-2011-HB70-Introduced.html
| 82S10424 CAS-D | ||
| By: Dutton | H.B. No. 70 | |
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| relating to a financial exigency of a school district. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter A, Chapter 44, Education Code, is | ||
| amended by adding Section 44.011 to read as follows: | ||
| Sec. 44.011. FINANCIAL EXIGENCY. (a) In this section, | ||
| "financial exigency" means substantial and recurring financial | ||
| deficits in the total operating budget of a school district that | ||
| have occurred and are reasonably projected to continue to occur, | ||
| placing the district at serious risk of insolvency. The term does | ||
| not include: | ||
| (1) the expectation of short-term deficits in the | ||
| operating budget of a district; or | ||
| (2) the elimination of or reduction in a district | ||
| academic program for academic reasons. | ||
| (b) This section applies only if, in response to a financial | ||
| exigency as determined by the board of trustees of a school | ||
| district, the district proposes to terminate contracts of and | ||
| discharge classroom teachers. A district shall consider | ||
| termination of contracts and discharge of classroom teachers to be | ||
| an exceptional action. The board of trustees of a district must | ||
| comply with this section before the board may terminate contracts | ||
| of and discharge classroom teachers on the basis of a financial | ||
| exigency. | ||
| (c) The board of trustees of a school district that proposes | ||
| to terminate contracts of and discharge classroom teachers on the | ||
| basis of a financial exigency must prepare and submit to the | ||
| commissioner a report specifying the precise nature and extent of | ||
| the district's financial problems. The report must include: | ||
| (1) a description of each measure the district has | ||
| taken to address the financial problems; | ||
| (2) whether reduction or elimination of any academic | ||
| program redundancies is recommended in addressing the financial | ||
| problems; | ||
| (3) each reason for proposing termination of contracts | ||
| and discharge of classroom teachers; and | ||
| (4) the number of classroom teachers whom the district | ||
| is proposing to discharge. | ||
| (d) Not later than the 10th day after the date the board of | ||
| trustees of a school district submits a report to the commissioner | ||
| under Subsection (c), a financial exigency committee shall be | ||
| established to review all documentation relevant in determining | ||
| whether a district financial exigency exists. The committee shall | ||
| be composed of five members, none of whom may be employed by the | ||
| district. Two members of the committee shall be appointed by the | ||
| board of trustees, two members shall be appointed by the | ||
| commissioner, and one member shall be appointed to serve as | ||
| presiding officer by the other members of the committee. | ||
| (e) In performing its duties under this section, the | ||
| financial exigency committee may consult with any person and may | ||
| consider oral or written submissions concerning the school | ||
| district's financial condition and district academic program | ||
| redundancies. | ||
| (f) The financial exigency committee shall prepare and | ||
| submit to the commissioner and the board of trustees of the school | ||
| district, in the time and manner required by commissioner rule, a | ||
| report that includes: | ||
| (1) an analysis of the nature and extent of the | ||
| district's financial problems; | ||
| (2) a determination of whether a district financial | ||
| exigency exists; | ||
| (3) a description of the potential impact on the | ||
| district's academic programs of the district's proposals under | ||
| Subsection (c); | ||
| (4) a determination of whether district enrollment | ||
| projections are consistent with the reduction in the number of | ||
| classroom teachers proposed under Subsection (c); | ||
| (5) a determination of whether the district has | ||
| proposed making any necessary reductions among district employees | ||
| in a manner that best maintains the academic viability of the | ||
| district; and | ||
| (6) a determination of whether the district has | ||
| exhausted all reasonable means, other than termination of contracts | ||
| and discharge of classroom teachers, to alleviate the district's | ||
| financial problems, including: | ||
| (A) applying rigorous economies in all areas of | ||
| the district's present and projected expenditures; | ||
| (B) using all reasonable means of increasing the | ||
| district's income; and | ||
| (C) reducing the number of classroom teachers by | ||
| voluntary retirement, resignation, or reduction in workload or by | ||
| other voluntary means. | ||
| (g) If the financial exigency committee determines that a | ||
| school district financial exigency does not exist, the district may | ||
| not terminate a contract of and discharge a classroom teacher for | ||
| budgetary reasons. If the committee determines that a district | ||
| financial exigency does exist and that the district has exhausted | ||
| all other reasonable means to alleviate the district's financial | ||
| problems, the committee may recommend a reduction in the number of | ||
| classroom teachers or in the district's budgetary allocations for | ||
| classroom teacher salaries or benefits. If the committee | ||
| recommends a reduction in the number of classroom teachers that is | ||
| different from the number proposed under Subsection (c), the | ||
| committee shall explain the reasons for the difference in the | ||
| report under Subsection (f). | ||
| (h) If the financial exigency committee determines a school | ||
| district financial exigency exists and no other satisfactory | ||
| provision can be made for the continued employment of all district | ||
| classroom teachers, the board of trustees of the district shall | ||
| prepare a plan for the reduction in the number of classroom | ||
| teachers. The plan must be structured in a manner that allows the | ||
| district to continue to operate to the greatest extent practicable | ||
| in accordance with the district's mission and may include a | ||
| reduction in or elimination of one or more academic programs. The | ||
| district may terminate contracts of and discharge classroom | ||
| teachers only to the extent necessary to alleviate the financial | ||
| exigency. The number of classroom teachers discharged may not | ||
| exceed the number recommended by the financial exigency committee | ||
| under Subsection (g). | ||
| (i) The commissioner shall adopt rules as necessary for the | ||
| administration of this section. | ||
| SECTION 2. This Act applies beginning with the 2011-2012 | ||
| school year. | ||
| 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 on the 91st day after the last day of the | ||
| legislative session. | ||
