The bill establishes a process for the consolidation of city school systems in Alabama by allowing two or more contiguous city boards of education to merge under one controlling board. Each participating board must adopt a formal resolution detailing the terms of the consolidation, including the payment of debts, the identification of the remaining board, and the timeline for implementation. If 25 percent of qualified electors from any of the affected school systems protest the consolidation within 30 days of the resolution, a referendum must be held to determine if the consolidation will proceed. The bill outlines the procedures for conducting the referendum, including notification requirements and ballot formatting.

Additionally, the bill clarifies that the consolidation does not relieve any board of education from liabilities incurred prior to the merger and that the agreement reached during the consolidation process is binding on all parties involved. The State Board of Education is tasked with adopting necessary rules to implement these provisions. The act is set to take effect on October 1, 2026.