(1) As used in this section: (a) Obligations means all contractual obligations, employment and service contracts and collective bargaining agreements. (b) Reorganized means a change in: (A) The boundaries of an education service district, including a merger; or (B) The governance structure of an education service district. (2) Employees who are employed by an education service district that is reorganized and who are employed in duties that, after the reorganization, are to be performed by the new education service district shall be considered employees of the new education service district. The new education service district shall succeed the previous education service district as party to any employment contracts. (3) Employees in the new education service district shall retain any seniority and accumulated sick leave and vacation leave from the previous education service district. (4) All real and personal property belonging to an education service district that is reorganized is considered property of the new education service district. (5) All obligations of an education service district that is reorganized are considered obligations of the new education service district.
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