By: Culberson H.B. No. 526 73R2759 CAE-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the office of inspector general for education. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Title 1, Education Code, is amended by adding 1-5 Chapter 3 to read as follows: 1-6 CHAPTER 3. INSPECTOR GENERAL FOR EDUCATION 1-7 Sec. 3.01. Creation. (a) The office of inspector general 1-8 for education is created. 1-9 (b) The office of inspector general for education is within 1-10 the office of the governor. 1-11 Sec. 3.02. Appointment; Qualifications; Term. (a) The 1-12 governor, with the advice and consent of the senate, shall appoint 1-13 a person to serve as inspector general. 1-14 (b) The inspector general must be a person of integrity and 1-15 of demonstrated ability in accounting, auditing, financial 1-16 analysis, law, management analysis, public administration, or 1-17 investigations. 1-18 (c) The office of inspector general is an office of the 1-19 public school system for purposes of Article VII, Section 16, of 1-20 the Texas Constitution, and the inspector general shall serve for a 1-21 term of office of five years expiring February 1 of the applicable 1-22 year. 1-23 Sec. 3.03. ASSISTANT INSPECTORS GENERAL. (a) The inspector 1-24 general shall appoint an assistant inspector general for auditing 2-1 who shall supervise the audits performed under this chapter. 2-2 (b) The inspector general shall appoint an assistant 2-3 inspector general for investigations who shall supervise 2-4 investigations performed under this chapter. 2-5 Sec. 3.04. Staff. The staff of the inspector general shall 2-6 be that provided for by the General Appropriations Act. 2-7 Sec. 3.05. Purposes. The purposes of the office of 2-8 inspector general are to: 2-9 (1) conduct management audits of, and review and 2-10 analyze the effectiveness of, the use of resources allocated to 2-11 public education, recognizing that those resources constitute an 2-12 investment in the quality of life and the economic prosperity of 2-13 future generations of Texans; 2-14 (2) advocate resources for the support of the state's 2-15 public institutions of education, including state, federal, and 2-16 private resources; 2-17 (3) provide current information to the commissioner of 2-18 education and the legislature about fraud, abuse, deficiencies, and 2-19 other problems in the administration of public education, recommend 2-20 corrective action, and report on the progress of corrective action; 2-21 (4) review existing and proposed legislation or rules 2-22 relating to public education to determine the impact of the 2-23 legislation or rules on the economy and efficiency in the 2-24 administration of public education or on the prevention and 2-25 detection of fraud or abuse in the administration of public 2-26 education; 2-27 (5) recommend policies for school districts and for 3-1 the Central Education Agency for the promotion of economy and 3-2 efficiency in the administration of public education and in the 3-3 prevention and detection of fraud and abuse in the administration 3-4 of public education; and 3-5 (6) recommend policies for the coordination of 3-6 relationships between the Central Education Agency and federal 3-7 agencies, other state agencies, school districts, and 3-8 nongovernmental entities regarding: 3-9 (A) the promotion of economy and efficiency in 3-10 the administration of public education; 3-11 (B) the prevention and detection of fraud and 3-12 abuse in the administration of public education; and 3-13 (C) the identification and prosecution of 3-14 participants in any detected fraud or abuse. 3-15 Sec. 3.06. Audits. (a) In order to assure that the state 3-16 gains maximum results from its investment in education, the 3-17 inspector general shall carry out management audits under 3-18 Subsections (b) and (c) of this section of the programs implemented 3-19 by the Central Education Agency, the State Board of Education, and 3-20 the state's public schools. 3-21 (b) The inspector general shall conduct economy and 3-22 efficiency audits to determine: 3-23 (1) whether the audited entity is managing or using 3-24 its resources, including state funds, personnel, property, 3-25 equipment, and space, in an economical and efficient manner; 3-26 (2) the causes of inefficiencies or uneconomical 3-27 practices, including inadequacies in management information 4-1 systems, internal and administrative procedures, organizational 4-2 structure, use of resources, allocation of personnel, purchasing, 4-3 policies, and equipment; and 4-4 (3) whether financial, program, and statistical 4-5 reports of the audited entity contain useful data and are fairly 4-6 presented. 4-7 (c) The inspector general shall conduct effectiveness audits 4-8 to determine, according to established or designated program 4-9 objectives, responsibilities or duties, statutes and regulations, 4-10 program performance criteria, or program evaluation standards: 4-11 (1) whether the objectives and intended benefits of a 4-12 program are being achieved efficiently and effectively; and 4-13 (2) whether a program duplicates, overlaps, or 4-14 conflicts with another program. 4-15 (d) The inspector general may conduct an audit on the 4-16 inspector general's own initiative and shall conduct an audit in a 4-17 school district on the request of the board of trustees of the 4-18 school district or of a member of the legislature whose legislative 4-19 district includes all or part of the school district. 4-20 Sec. 3.07. Programs. (a) In cooperation with the State 4-21 Board of Education and the boards of trustees of school districts, 4-22 the inspector general shall develop and encourage the development 4-23 of programs that will ensure that all public schools achieve their 4-24 maximum potential. 4-25 (b) The inspector general shall implement programs designed 4-26 to affect positively: 4-27 (1) the effective and efficient delivery of 5-1 educational services to students of public schools and the methods 5-2 used to assess the results of this service delivery; 5-3 (2) the quality of teaching and learning in public 5-4 schools; 5-5 (3) the development of the state's public schools as 5-6 an effective foundation for the production of the educated work 5-7 force essential to an economically diversified and 5-8 technology-intensive business-industrial complex; and 5-9 (4) the realization of the benefits of an educated 5-10 populace to the cultural, political, intellectual, and economic 5-11 quality of life in this state. 5-12 Sec. 3.08. ACCESS TO INFORMATION; ASSISTANCE. (a) The 5-13 inspector general is entitled to: 5-14 (1) have access to all records, reports, audits, 5-15 reviews, documents, papers, recommendations, or other material 5-16 available to or in the custody of the Central Education Agency or a 5-17 school district, as applicable, that relate to the programs and 5-18 audits for which the inspector general has responsibilities under 5-19 this chapter; and 5-20 (2) have access to information in the custody of or 5-21 assistance from any state agency or local government that is 5-22 necessary to carry out the provisions of this chapter. 5-23 (b) The inspector general may issue subpoenas to compel the 5-24 production of information, documents, reports, answers, records, 5-25 accounts, papers, or other data and documentary evidence necessary 5-26 to carry out the provisions of this chapter. A peace officer shall 5-27 serve the subpoena in the manner prescribed for service of a 6-1 district court subpoena. A district court shall enforce a subpoena 6-2 by attachment proceedings for contempt in the same manner the court 6-3 enforces a subpoena issued by that court. 6-4 Sec. 3.09. PERSONNEL COMPLAINTS; INFORMATION. (a) The 6-5 inspector general may receive and investigate complaints or 6-6 information from an employee of the Central Education Agency or of 6-7 a school district concerning the possible existence of: 6-8 (1) mismanagement; 6-9 (2) a gross waste of funds; 6-10 (3) an abuse of authority; 6-11 (4) a violation of law; or 6-12 (5) a substantial and specific danger to the public 6-13 health and safety. 6-14 (b) The inspector general may not disclose the identity of 6-15 the employee who makes the complaint or provides the information 6-16 without that employee's consent unless the disclosure is 6-17 unavoidable during the course of the investigation. 6-18 (c) An employee of the Central Education Agency or of a 6-19 school district who has authority to take, direct others to take, 6-20 recommend, or approve any personnel action may not take or threaten 6-21 to take any action against an employee for making a complaint or 6-22 disclosing information to the inspector general, unless the 6-23 employee made the complaint or disclosed the information with the 6-24 knowledge that it was false or with wilful disregard for its truth 6-25 or falsity. 6-26 Sec. 3.10. REPORT OF VIOLATION OF CRIMINAL LAW. The 6-27 inspector general shall report to the attorney general and to the 7-1 local district attorney if as the result of an audit or 7-2 investigation under this chapter the inspector general has 7-3 reasonable cause to believe that there has been a violation of 7-4 criminal law. 7-5 Sec. 3.11. AUDIT REPORT. (a) The inspector general shall 7-6 prepare and publish a report of each audit that the inspector 7-7 general conducts. 7-8 (b) The inspector general shall publish the report of an 7-9 audit of a school district in a newspaper with general circulation 7-10 in that district and shall post the report for at least 21 7-11 consecutive days in the building in which the board of trustees of 7-12 the district conducts its meetings. 7-13 (c) The inspector general shall publish the report of an 7-14 audit of the Central Education Agency in a newspaper with general 7-15 circulation in Travis County. 7-16 (d) A report published under this section is public 7-17 information subject to disclosure in accordance with the open 7-18 records law, Chapter 424, Acts of the 63rd Legislature, Regular 7-19 Session, 1973 (Article 6252-17a, Vernon's Texas Civil Statutes). 7-20 Sec. 3.12. ANNUAL REPORTS. (a) The inspector general shall 7-21 submit a written report not later than September 30 of each year 7-22 that summarizes the inspector general's activities in the 12-month 7-23 period ending the preceding August 31 to: 7-24 (1) the governor; 7-25 (2) the lieutenant governor; 7-26 (3) the speaker of the house of representatives; 7-27 (4) the chairman of the House Public Education 8-1 Committee; and 8-2 (5) the chairman of the Senate Education Committee. 8-3 (b) The report shall: 8-4 (1) describe significant problems, abuses, and 8-5 deficiencies relating to the administration of public education 8-6 disclosed by the inspector general during the reporting period; 8-7 (2) describe the recommendations made by the inspector 8-8 general during the reporting period for corrective action for the 8-9 problems, abuses, and deficiencies identified under Subdivision (1) 8-10 of this subsection; 8-11 (3) identify each significant recommendation described 8-12 in a previous annual report for which corrective action has not 8-13 been completed; 8-14 (4) summarize matters referred to a prosecuting 8-15 attorney or the attorney general and the prosecutions and 8-16 convictions that have resulted; and 8-17 (5) list each audit report completed by the inspector 8-18 general during the reporting period. 8-19 (c) The inspector general shall provide a copy of the report 8-20 to any member of the legislature on request. 8-21 SECTION 2. The importance of this legislation and the 8-22 crowded condition of the calendars in both houses create an 8-23 emergency and an imperative public necessity that the 8-24 constitutional rule requiring bills to be read on three several 8-25 days in each house be suspended, and this rule is hereby suspended, 8-26 and that this Act take effect and be in force from and after its 8-27 passage, and it is so enacted.