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.