BILL ANALYSIS Senate Research Center S.B. 2540 By: Nichols Education K-16 4/14/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Under current law, two contiguous school districts are allowed to adjust their common boundary by agreement if no child resides in the transferred territory and the taxable value of the territory that is transferred does not exceed one-tenth of one percent of the total taxable value of the district from which the territory is transferred. This bill would clarify that any contracts, restrictions, or covenants associated with the land being transferred must be included in the mutual boundary agreement and move with the transferred land. As proposed, S.B. 2540 amends current law relating to the terms of certain agreements involving minor boundary adjustments between two contiguous school districts. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 13.231, Education Code, by adding Subsections (c) and (d), as follows: (c) Requires that an agreement executed under Section 13.231 (Minor Boundary Adjustments by Agreement) on or after January 1, 2025, include, if applicable: (1) any term or terms of the agreement, including restrictions, covenants, or contracts, that will continue to apply in force and effect with respect to the real property in the territory following the transfer of that territory from one school district to the other; and (2) a brief explanation of the privileges, rights, and responsibilities of each school district with respect to a term described under Subdivision (1). (d) Provides that, for an agreement executed under this section on or after January 1, 2025, but before the effective date of this Act, a term described under Subsection (c)(1) is effective as of January 1, 2025, or a subsequent date agreed to by the parties. SECTION 2. Effective date: September 1, 2025. BILL ANALYSIS Senate Research Center S.B. 2540 By: Nichols Education K-16 4/14/2025 As Filed Senate Research Center S.B. 2540 By: Nichols Education K-16 4/14/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Under current law, two contiguous school districts are allowed to adjust their common boundary by agreement if no child resides in the transferred territory and the taxable value of the territory that is transferred does not exceed one-tenth of one percent of the total taxable value of the district from which the territory is transferred. This bill would clarify that any contracts, restrictions, or covenants associated with the land being transferred must be included in the mutual boundary agreement and move with the transferred land. As proposed, S.B. 2540 amends current law relating to the terms of certain agreements involving minor boundary adjustments between two contiguous school districts. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 13.231, Education Code, by adding Subsections (c) and (d), as follows: (c) Requires that an agreement executed under Section 13.231 (Minor Boundary Adjustments by Agreement) on or after January 1, 2025, include, if applicable: (1) any term or terms of the agreement, including restrictions, covenants, or contracts, that will continue to apply in force and effect with respect to the real property in the territory following the transfer of that territory from one school district to the other; and (2) a brief explanation of the privileges, rights, and responsibilities of each school district with respect to a term described under Subdivision (1). (d) Provides that, for an agreement executed under this section on or after January 1, 2025, but before the effective date of this Act, a term described under Subsection (c)(1) is effective as of January 1, 2025, or a subsequent date agreed to by the parties. SECTION 2. Effective date: September 1, 2025.