By:  Haley                                             S.B. No. 617
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to transfer of the functions of the Legislative Education
    1-2  Board to the Legislative Budget Board and certain legislative
    1-3  committees.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subsection (a), Section 11.24, Education Code, is
    1-6  amended to read as follows:
    1-7        (a)  In addition to performing its duties under the
    1-8  constitution, the State Board of Education shall take actions
    1-9  necessary to implement legislative policy for the public school
   1-10  system of the state.  The board shall include in the record of its
   1-11  meetings the legislative authority for each action taken by the
   1-12  board.  The board shall consider any comments submitted by a
   1-13  standing committee of the senate or house of representatives with
   1-14  primary jurisdiction over the public school system <the Legislative
   1-15  Education Board> on a proposed rule before voting on final adoption
   1-16  of the rule.  If the board is unsure of the legislative intent of
   1-17  any legislative enactment, the board may request a joint meeting
   1-18  with either or both of those committees <the Legislative Education
   1-19  Board> to discuss the intent.
   1-20        SECTION 2.  Subsections (c), (e), and (h), Section 11.27,
   1-21  Education Code, are amended to read as follows:
   1-22        (c)  Innovative program applications shall initially be
   1-23  selected on a competitive, peer review basis by the program
   1-24  advisory committee established under Section 11.271 of this code,
    2-1  with final approval by the State Board of Education and, if the
    2-2  program requires the expenditure of state funds, the Legislative
    2-3  Budget <Education> Board.
    2-4        (e)  The approval by the State Board of Education of an
    2-5  application under this section that requires the expenditure of
    2-6  state funds is ineffective unless the Legislative Budget
    2-7  <Education> Board approves the expenditure of state funds for the
    2-8  program under the authority of Article XVI, Section 69, of the
    2-9  Texas Constitution.
   2-10        (h)  The Central Education Agency shall evaluate each
   2-11  program's effectiveness and shall report its findings to the
   2-12  Legislative Budget <Education> Board and to the State Board of
   2-13  Education not later than December 1 preceding each regular session
   2-14  of the legislature.
   2-15        SECTION 3.  Subsections (d) and (i), Section 11.271,
   2-16  Education Code, are amended to read as follows:
   2-17        (d)  Each fiscal year, the board, after deducting the cost of
   2-18  administration not to exceed an amount set by appropriation, shall
   2-19  make disbursements from the public education development fund to
   2-20  the Educational Economic Policy Center in a total amount approved
   2-21  by the Legislative Budget <Education> Board.  The board shall
   2-22  disburse the remainder of the fund to eligible school campuses.
   2-23        (i)  The Educational Economic Policy Committee shall appoint
   2-24  a program advisory committee, composed of experts in policy
   2-25  research and disciplines that represent the center's purposes, to
   2-26  make recommendations to the State Board of Education and the
   2-27  Legislative Budget <Education> Board on the use of the public
    3-1  education development fund.
    3-2        SECTION 4.  Subsection (c), Section 11.272, Education Code,
    3-3  is amended to read as follows:
    3-4        (c)  The Central Education Agency shall monitor and evaluate
    3-5  deregulation of a school campus or district under this section and
    3-6  Section 11.273 of this code and report annually on the effect of
    3-7  deregulation on student achievement to the State Board of
    3-8  Education, <the Legislative Education Board,> the governor, the
    3-9  lieutenant governor, the speaker of the house of representatives,
   3-10  and the standing committees of the senate and house of
   3-11  representatives with primary jurisdiction over the public school
   3-12  system <legislature>.  The report must include a list of the
   3-13  exemptions utilized and a review of the effectiveness of the
   3-14  waivers and exemptions programs.
   3-15        SECTION 5.  Subsection (a), Section 11.29, Education Code, is
   3-16  amended to read as follows:
   3-17        (a)  The commissioner of education shall adopt annually a
   3-18  budget for operating the Foundation School Program, the Central
   3-19  Education Agency, and other programs for which the State Board of
   3-20  Education has responsibility.  The budget shall be in accordance
   3-21  with the amounts appropriated by the general appropriations act and
   3-22  shall provide funds for the administration and operation of the
   3-23  Central Education Agency and any other necessary expense.  Before
   3-24  adopting the budget, the commissioner shall:
   3-25              (1)  submit the budget to the State Board of Education
   3-26  and the Legislative Budget <Education> Board for review and
   3-27  comment; and
    4-1              (2)  after receiving the comments of those boards,
    4-2  present the budget to the governor and the Legislative Budget
    4-3  Board.
    4-4        SECTION 6.  Subsection (e), Section 14.044, Education Code,
    4-5  is amended to read as follows:
    4-6        (e)  The governing board shall:
    4-7              (1)  employ an executive director for the center;
    4-8              (2)  adopt rules, subject to the approval of the State
    4-9  Board of Education, for administration, operation, and management
   4-10  of the center; and
   4-11              (3)  report annually on the operation, projects, and
   4-12  fiscal affairs of the center to the governor's office, the
   4-13  Legislative Budget <Education> Board, and the State Board of
   4-14  Education.
   4-15        SECTION 7.  Subsection (c), Section 16.007, Education Code,
   4-16  is amended to read as follows:
   4-17        (c)  The Central Education Agency shall report annually to
   4-18  the Legislative Budget <Education> Board the financial status of
   4-19  each county education district.  The report shall include the total
   4-20  state and local education revenues for each tier of the Foundation
   4-21  School Program.
   4-22        SECTION 8.  Subsection (a), Section 16.008, Education Code,
   4-23  is amended to read as follows:
   4-24        (a)  The Legislative Budget <Education> Board shall adopt
   4-25  rules, subject to appropriate notice and opportunity for public
   4-26  comment, for the calculation for each year of a biennium of the
   4-27  qualified funding elements under Section 16.256(e) of this code
    5-1  necessary to achieve the state policy under Section 16.001 of this
    5-2  code not later than the 1994-1995 school year and for each school
    5-3  year thereafter.
    5-4        SECTION 9.  Section 16.202, Education Code, is amended to
    5-5  read as follows:
    5-6        Sec. 16.202.  Studies.  On a biennial basis, the <Legislative
    5-7  Education Board and the> Legislative Budget Board, with the
    5-8  assistance of the Educational Economic Policy Center and the
    5-9  Central Education Agency, shall complete each of the following
   5-10  studies and develop recommended amounts where appropriate for each
   5-11  year of the next biennium:
   5-12              (1)  a study of the fiscal neutrality of the system to
   5-13  determine the status of the state and local finance system with
   5-14  regard to the policies established under the provisions of Section
   5-15  16.001 of this code, including recommendations for adjustments
   5-16  necessary to maintain fiscal neutrality;
   5-17              (2)  the accountable costs per student to school
   5-18  districts of providing educational programs, personnel, and other
   5-19  operating costs that meet accreditation criteria and the provisions
   5-20  of law and regulation;
   5-21              (3)  program cost differentials designed by program to
   5-22  provide support for the added expense of high-cost courses or
   5-23  programs for students participating in such courses or programs,
   5-24  with the program funding level expressed as dollar amounts and as
   5-25  weights applied to the adjusted basic allotment for the appropriate
   5-26  year;
   5-27              (4)  transportation and career ladder allotments;
    6-1              (5)  the levels of tax effort necessary for each tier
    6-2  of the Foundation School Program necessary to fulfill the
    6-3  requirements of Sections 16.001 and 16.008 of this code; and
    6-4              (6)  capital outlay and debt service requirements and
    6-5  formula elements for the requirements of Subchapter I of this
    6-6  chapter  or other provisions of this chapter.
    6-7        SECTION 10.  Section 16.203, Education Code, is amended to
    6-8  read as follows:
    6-9        Sec. 16.203.  Procedures.  (a)  The program cost
   6-10  differentials developed <jointly> by the <Legislative Education
   6-11  Board and the> Legislative Budget Board shall be submitted to the
   6-12  foundation school fund budget committee for adoption beginning with
   6-13  the 1993-1994 school year.  If the foundation school fund budget
   6-14  committee fails to adopt by April 1 the program cost differentials
   6-15  for the following school year, the commissioner of education, after
   6-16  considering the recommendations developed by the Legislative Budget
   6-17  Board <those boards>, shall adopt program cost differentials.
   6-18        (b)  The commissioner of education shall provide appropriate
   6-19  assistance to the Legislative Budget Board <boards> for the
   6-20  calculation of the various funding elements.  Subject to review by
   6-21  the Legislative Budget <Education> Board, the commissioner of
   6-22  education shall retain from the allotments under Sections 16.102
   6-23  and 16.103 of this code and Subchapter D of this chapter  amounts
   6-24  appropriate to finance necessary additional costs for the studies
   6-25  required under this subchapter.
   6-26        (c)  The Legislative Budget Board <boards> may appoint
   6-27  advisory committees to assist in the development of the various
    7-1  funding elements and studies required under this subchapter.
    7-2  Advisory committee members serve without compensation but are
    7-3  entitled to reimbursement for actual and necessary expenses
    7-4  incurred in the performance of their duties.  Reimbursement shall
    7-5  be from funds available under Subsection (b) of this section or
    7-6  from other funds available to the board <boards>.
    7-7        (d)  In the studies relating to program cost differentials
    7-8  the Legislative Budget Board <boards> shall give special
    7-9  consideration to cost factors associated with class size,
   7-10  laboratory expenses, materials, equipment, teacher training,
   7-11  necessary salary supplementation, and special services related to
   7-12  individual courses or groups of courses.
   7-13        SECTION 11.  Subsection (b), Section 16.204, Education Code,
   7-14  is amended to read as follows:
   7-15        (b)  If the construction or operation of a significant new
   7-16  naval military facility begins during a school year, the
   7-17  <Legislative Education Board and the> Legislative Budget Board
   7-18  shall recommend the adjustment of the basic allotment during that
   7-19  school year to consider any impact of the facility on the cost of
   7-20  education index of the districts in the impacted region.
   7-21        SECTION 12.  Subsection (d), Section 16.205, Education Code,
   7-22  is amended to read as follows:
   7-23        (d)  Prior to the beginning of each regular session of the
   7-24  legislature, the agency shall provide a report with recommendations
   7-25  to the Legislative Budget <Education> Board and the legislature.
   7-26        SECTION 13.  Subsections (d) and (f), Section 16.256,
   7-27  Education Code, are amended to read as follows:
    8-1        (d)  The foundation school fund budget committee shall adopt
    8-2  rules for the calculation for each year of a biennium of the
    8-3  qualified funding elements necessary to achieve the state funding
    8-4  policy under Section 16.001 of this code not later than the
    8-5  1994-1995 school year and for each year thereafter.  In the
    8-6  calculation of these funding elements, the committee shall consider
    8-7  the report of the Legislative Budget <Education> Board prescribed
    8-8  under Section 16.008 of this code.
    8-9        (f)  Beginning in 1992, not later than November 1 preceding
   8-10  each regular session of the legislature, the foundation school fund
   8-11  budget committee by rule shall adopt and report the equalized
   8-12  funding elements calculated under this section to the commissioner
   8-13  of education and the legislature.  Before the committee adopts the
   8-14  elements, the committee or the committee's designees shall hold a
   8-15  public hearing on the recommendations of the Legislative Budget
   8-16  <Education> Board.
   8-17        SECTION 14.  Subsection (b), Section 16.302, Education Code,
   8-18  is amended to read as follows:
   8-19        (b)  Beginning with the 1993-1994 school year, if the program
   8-20  cost differentials developed <jointly> by the <Legislative
   8-21  Education Board and the> Legislative Budget Board under Section
   8-22  16.203 of this code and the adjustments studied under Section
   8-23  16.206 of this code are not adopted by the foundation school fund
   8-24  budget committee or the commissioner of education, the amount
   8-25  guaranteed under this section is an amount per student rather than
   8-26  per weighted student and a school district's average daily
   8-27  attendance ("ADA") under Section 16.006 of this code is substituted
    9-1  for "WADA" in the formula under Subsection (a) of this section.
    9-2        SECTION 15.  Subsection (c), Section 20.941, Education Code,
    9-3  is amended to read as follows:
    9-4        (c)  Before each regular session of the legislature, the
    9-5  <Legislative Education Board, with the assistance of the>
    9-6  Legislative Budget Board<,> shall review the taxable value of
    9-7  property in each county education district and shall recommend
    9-8  changes in the boundaries of the districts necessary to ensure that
    9-9  no district has a taxable value of property in excess of $280,000
   9-10  per weighted student in average daily attendance, or a value set by
   9-11  the foundation school fund committee.
   9-12        SECTION 16.  Subsection (b), Section 21.041, Education Code,
   9-13  as amended by Chapters 353 and 813, Acts of the 71st Legislature,
   9-14  Regular Session, 1989, is amended to read as follows:
   9-15        (b)  The board of trustees of each school district shall
   9-16  appoint one or more attendance committees to hear petitions for
   9-17  class credit by students who are in attendance fewer than 80 days
   9-18  during a semester.  Each board may determine the number of
   9-19  committees needed in the district and the composition of each
   9-20  committee.  The committees may give class credit to a student who
   9-21  is in attendance fewer than 80 days during a semester because of
   9-22  extenuating circumstances.  Each local school board shall establish
   9-23  guidelines to determine what constitutes extenuating circumstances,
   9-24  subject to rules adopted by the State Board of Education, and shall
   9-25  adopt policies establishing alternative ways for students to make
   9-26  up work or regain credit lost because of absences.  The State Board
   9-27  of Education shall submit its rules adopted under this section to
   10-1  the standing committees of the senate and house of representatives
   10-2  with primary jurisdiction over the public school system
   10-3  <Legislative Education Board> for review to ensure compliance with
   10-4  legislative intent.  A certified public school employee may not be
   10-5  assigned additional instructional duties as a result of this
   10-6  section outside of the regular workday unless the employee is
   10-7  compensated for the duties at a reasonable rate of pay.
   10-8        SECTION 17.  Subsection (b), Section 21.5511, Education Code,
   10-9  is amended to read as follows:
  10-10        (b)  Before adopting rules under this section, the board
  10-11  shall consider the comments of the standing committees of the
  10-12  senate and house of representatives with primary jurisdiction over
  10-13  the public school system <Legislative Education Board> as required
  10-14  under Section 11.24 of this code.
  10-15        SECTION 18.  Subsection (b), Section 21.5512, Education Code,
  10-16  is amended to read as follows:
  10-17        (b)  Before adopting rules under this section, the board
  10-18  shall consider the comments of the standing committees of the
  10-19  senate and house of representatives with primary jurisdiction over
  10-20  the public school system <Legislative Education Board> as required
  10-21  under Section 11.24 of this code.
  10-22        SECTION 19.  Subsection (g), Section 21.5513, Education Code,
  10-23  is amended to read as follows:
  10-24        (g)  Not later than the 30th day before the date on which a
  10-25  regular session of the legislature convenes, <At each regular
  10-26  meeting of the Legislative Education Board> the committee shall
  10-27  report to the standing committees of the senate and house of
   11-1  representatives with primary jurisdiction over the public school
   11-2  system <board> its progress regarding:
   11-3              (1)  the essential knowledge and skills identified by
   11-4  the committee for elementary and secondary students, including at a
   11-5  minimum knowledge and skills in the areas of reading, writing,
   11-6  speaking, mathematics, and critical thinking;
   11-7              (2)  a statewide assessment program developed by the
   11-8  committee for elementary students that is primarily
   11-9  performance-based, uses a variety of assessment methodologies to
  11-10  determine if students have mastered the essential knowledge and
  11-11  skills, and is designed to assess students in at least two
  11-12  elementary grade levels;
  11-13              (3)  a statewide assessment program developed by the
  11-14  committee for secondary students that is primarily
  11-15  performance-based, uses a variety of assessment methodologies to
  11-16  determine if students have mastered the essential knowledge and
  11-17  skills, and provides criteria for a certificate of initial mastery;
  11-18              (4)  recommendations for appropriate uses by public
  11-19  schools and school districts of the results of the statewide
  11-20  assessment programs;
  11-21              (5)  recommendations for changes to state laws and
  11-22  rules, school district policies, budget procedures, and other
  11-23  factors that inhibit schools from adopting strategies designed to
  11-24  ensure that students achieve the essential knowledge and skills;
  11-25              (6)  recommendations for accurate and fair indicators
  11-26  to measure the level of student learning in public schools and
  11-27  school districts and measures that would assist public schools and
   12-1  school districts in which student learning is below expected levels
   12-2  of performance;
   12-3              (7)  recommendations for modifying college and
   12-4  university entrance requirements that inhibit public schools from
   12-5  adopting strategies that are designed to ensure that students
   12-6  achieve the essential knowledge and skills;
   12-7              (8)  the time, support, and resources, including
   12-8  technical assistance, that the committee determines to be necessary
   12-9  for public schools and school districts to ensure that students
  12-10  achieve the essential knowledge and skills; and
  12-11              (9)  recommendations for replacing course or class
  12-12  credit requirements with requirements for core competencies,
  12-13  including critical thinking skills, for the purpose of improving
  12-14  and evaluating student performance.
  12-15        SECTION 20.  Subsection (i), Section 21.557, Education Code,
  12-16  is amended to read as follows:
  12-17        (i)  Each school district shall maintain on file and
  12-18  expeditiously make available on the request of a member of the
  12-19  general public a copy of the report describing the district's
  12-20  overall compensatory education program for educationally
  12-21  disadvantaged students.  The report must include sufficient detail
  12-22  to describe the overall compensatory education program offered on
  12-23  each campus and the activities and services provided on each campus
  12-24  from each funding source.  The commissioner of education shall
  12-25  develop model report formats that districts may use for the report.
  12-26  The model formats must be designed to be easily understood by a
  12-27  member of the general public and may not be overly burdensome for
   13-1  districts to prepare.  The commissioner shall submit the model
   13-2  formats to the standing committees of the senate and house of
   13-3  representatives with primary jurisdiction over the public school
   13-4  system <Legislative Education Board> for comment and may not
   13-5  distribute the formats until the commissioner has received and
   13-6  considered those comments.  Each school district shall prepare and
   13-7  periodically update the description of the district's compensatory
   13-8  education program to accurately reflect the programs and services
   13-9  currently provided to educationally disadvantaged students.
  13-10        SECTION 21.  Subsections (a) and (e), Section 21.7531,
  13-11  Education Code, are amended to read as follows:
  13-12        (a)  The State Board of Education, on the advice of the
  13-13  academic excellence indicators advisory committee, the educational
  13-14  excellence committee, and the standing committees of the senate and
  13-15  house of representatives with primary jurisdiction over the public
  13-16  school system <Legislative Education Board>, shall adopt a set of
  13-17  indicators of the quality of learning on a campus and other
  13-18  performance standards.  The board biennially shall review the
  13-19  indicators for the consideration of appropriate revisions.
  13-20        (e)  The Educational Economic Policy Center shall biennially
  13-21  review the indicators adopted under this section and recommend
  13-22  changes in those indicators to the State Board of Education and the
  13-23  standing committees of the senate and house of representatives with
  13-24  primary jurisdiction over the public school system <Legislative
  13-25  Education Board>.
  13-26        SECTION 22.  Subsections (a) and (c), Section 21.758,
  13-27  Education Code, are amended to read as follows:
   14-1        (a)  The commissioner of education may order the suspension
   14-2  of the powers of the board of trustees of a school district if the
   14-3  school district has been rated academically unaccredited for a
   14-4  period of one year.  The commissioner shall immediately inform the
   14-5  standing committees of the senate and house of representatives with
   14-6  primary jurisdiction over the public school system <Legislative
   14-7  Education Board> of the commissioner's decision to order the
   14-8  suspension.
   14-9        (c)  The appointed superintendent shall report annually to
  14-10  the commissioner on the progress of the school district toward
  14-11  meeting the requirements necessary for accreditation.  The
  14-12  commissioner shall report to the standing committees of the senate
  14-13  and house of representatives with primary jurisdiction over the
  14-14  public school system <Legislative Education Board> annually on the
  14-15  district's progress.
  14-16        SECTION 23.  Subsection (g), Section 34.052, Education Code,
  14-17  is amended to read as follows:
  14-18        (g)  The committee shall report to the Legislative Budget
  14-19  Board <Legislative Education Board> at least once a year.  The
  14-20  committee shall also report to the governor, the State Board of
  14-21  Education, the Texas Higher Education Coordinating Board, and the
  14-22  legislature before the convening of each regular session.
  14-23        SECTION 24.  Chapter 322, Government Code, is amended by
  14-24  adding Section 322.013 to read as follows:
  14-25        Sec. 322.013.  REVIEW OF EDUCATIONAL POLICY IMPLEMENTATION.
  14-26  (a)  The standing committees of the senate and house of
  14-27  representatives with primary jurisdiction over the public school
   15-1  system shall oversee and review the implementation of legislative
   15-2  education policy by state agencies that have the statutory duty to
   15-3  implement that policy, including policy relating to:
   15-4              (1)  fiscal matters;
   15-5              (2)  academic expectations; and
   15-6              (3)  evaluation of program cost-effectiveness.
   15-7        (b)  The committees shall periodically review the actions or
   15-8  proposed actions of the State Board of Education for the purpose of
   15-9  ensuring compliance with legislative intent. If a committee
  15-10  determines that any action or proposed action of the State Board of
  15-11  Education conflicts with legislative educational policy, the
  15-12  committee shall submit its comments on the conflict to the State
  15-13  Board of Education in writing.  If a committee  determines that a
  15-14  final action of the board conflicts with the intent of legislative
  15-15  educational policy, the committee may:
  15-16              (1)  request additional information from the State
  15-17  Board of Education relating to the intent of the board's action;
  15-18              (2)  request a joint meeting with the State Board of
  15-19  Education to discuss the conflict between the action and
  15-20  legislative educational policy;
  15-21              (3)  request that the State Board of Education
  15-22  reconsider its action; or
  15-23              (4)  notify the governor, lieutenant governor, speaker
  15-24  of the house, and the legislature of the conflict presented.
  15-25        (c)  The board shall assist the committees in administering
  15-26  this section.
  15-27        (d)  For purposes of carrying out its duties, the board may
   16-1  administer oaths and issue subpoenas, signed by the chairman or
   16-2  vice-chairman, to compel the attendance of witnesses and the
   16-3  production of books, records, and documents.  A subpoena of the
   16-4  board shall be served by a peace officer in the manner in which
   16-5  district court subpoenas are served.  On application of the board,
   16-6  a district court of Travis County shall compel compliance with a
   16-7  subpoena issued by the board in the same manner as for district
   16-8  court subpoenas.
   16-9        SECTION 25.  (a)  The Legislative Education Board is
  16-10  abolished.
  16-11        (b)  Chapter 327, Government Code, is repealed.
  16-12        (c)  Any reference in a law not amended by this Act to the
  16-13  Legislative Education Board means the Legislative Budget Board.
  16-14        (d)  A rule adopted by the Legislative Education Board that
  16-15  is in effect on the effective date of this Act is considered to
  16-16  have been adopted by the Legislative Budget Board until amended,
  16-17  repealed, or superseded by the Legislative Budget Board.
  16-18        (e)  An action taken by the Legislative Education Board
  16-19  before the effective date of this Act has the same effect as an
  16-20  action of the Legislative Budget Board  or legislative committee to
  16-21  which the authority for that action is transferred by this Act.
  16-22        (f)  The personnel, property, records, and funds of the
  16-23  Legislative Education Board are transferred to the Legislative
  16-24  Budget Board.
  16-25        SECTION 26.  This Act takes effect September 1, 1993.
  16-26        SECTION 27.  The importance of this legislation and the
  16-27  crowded condition of the calendars in both houses create an
   17-1  emergency and an imperative public necessity that the
   17-2  constitutional rule requiring bills to be read on three several
   17-3  days in each house be suspended, and this rule is hereby suspended.