By:  Haley                                             S.B. No. 617
       73R2489 JSA-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to transfer of the functions of the Legislative Education
    1-3  Board to the Legislative Budget Board.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 11.24(a), Education Code, is amended to
    1-6  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 the
   1-13  Legislative Budget Board <Legislative Education Board> on a
   1-14  proposed rule before voting on final adoption of the rule.   If the
   1-15  board is unsure of the legislative intent of any legislative
   1-16  enactment, the board may request a joint meeting with the
   1-17  Legislative Budget Board <Legislative Education Board> to discuss
   1-18  the intent.
   1-19        SECTION 2.  Sections 11.27(c), (e), and (h), Education Code,
   1-20  are amended to read as follows:
   1-21        (c)  Innovative program applications shall initially be
   1-22  selected on a competitive, peer review basis by the program
   1-23  advisory committee established under Section 11.271 of this code,
   1-24  with final approval by the State Board of Education and, if the
    2-1  program requires the expenditure of state funds, the Legislative
    2-2  Budget Board <Legislative Education Board>.
    2-3        (e)  The approval by the State Board of Education of an
    2-4  application under this section that requires the expenditure of
    2-5  state funds is ineffective unless the Legislative Budget Board
    2-6  <Legislative Education Board> approves the expenditure of state
    2-7  funds for the program under the authority of Article XVI, Section
    2-8  69, of the Texas Constitution.
    2-9        (h)  The Central Education Agency shall evaluate each
   2-10  program's effectiveness and shall report its findings to the
   2-11  Legislative Budget Board <Legislative Education Board> and to the
   2-12  State Board of Education not later than December 1 preceding each
   2-13  regular session of the legislature.
   2-14        SECTION 3.  Sections 11.271(d) and (i), Education Code, are
   2-15  amended to read as follows:
   2-16        (d)  Each fiscal year, the board, after deducting the cost of
   2-17  administration not to exceed an amount set by appropriation, shall
   2-18  make disbursements from the public education development fund to
   2-19  the Educational Economic Policy Center in a total amount approved
   2-20  by the Legislative Budget Board <Legislative Education Board>.  The
   2-21  board shall disburse the remainder of the fund to eligible school
   2-22  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 Board <Legislative Education Board> on the use
    3-1  of the public education development fund.
    3-2        SECTION 4.  Section 11.272(c), Education Code, is amended to
    3-3  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 Budget Board <Legislative Education
    3-9  Board>, the governor, the lieutenant governor, the speaker of the
   3-10  house of representatives, and the legislature.  The report must
   3-11  include a list of the exemptions utilized and a review of the
   3-12  effectiveness of the waivers and exemptions programs.
   3-13        SECTION 5.  Section 11.29(a), Education Code, is amended to
   3-14  read as follows:
   3-15        (a)  The commissioner of education shall adopt annually a
   3-16  budget for operating the Foundation School Program, the Central
   3-17  Education Agency, and other programs for which the State Board of
   3-18  Education has responsibility.  The budget shall be in accordance
   3-19  with the amounts appropriated by the general appropriations act and
   3-20  shall provide funds for the administration and operation of the
   3-21  Central Education Agency and any other necessary expense.  Before
   3-22  adopting the budget, the commissioner shall:
   3-23              (1)  submit the budget to the State Board of Education
   3-24  and the Legislative Budget Board <Legislative Education Board> for
   3-25  review and comment; and
   3-26              (2)  after receiving the comments of those boards,
   3-27  present the budget to the governor and the Legislative Budget
    4-1  Board.
    4-2        SECTION 6.  Section 14.044(e), Education Code, is amended to
    4-3  read as follows:
    4-4        (e)  The governing board shall:
    4-5              (1)  employ an executive director for the center;
    4-6              (2)  adopt rules, subject to the approval of the State
    4-7  Board of Education, for administration, operation, and management
    4-8  of the center; and
    4-9              (3)  report annually on the operation, projects, and
   4-10  fiscal affairs of the center to the governor's office, the
   4-11  Legislative Budget Board <Legislative Education Board>, and the
   4-12  State Board of Education.
   4-13        SECTION 7.  Section 16.007(c), Education Code, is amended to
   4-14  read as follows:
   4-15        (c)  The Central Education Agency shall report annually to
   4-16  the Legislative Budget Board <Legislative Education Board> the
   4-17  financial status of each county education district.  The report
   4-18  shall include the total state and local education revenues for each
   4-19  tier of the Foundation School Program.
   4-20        SECTION 8.  Section 16.008(a), Education Code, is amended to
   4-21  read as follows:
   4-22        (a)  The Legislative Budget Board <Legislative Education
   4-23  Board> shall adopt rules, subject to appropriate notice and
   4-24  opportunity for public comment, for the calculation for each year
   4-25  of a biennium of the qualified funding elements under Section
   4-26  16.256(e) of this code necessary to achieve the state policy under
   4-27  Section 16.001 of this code not later than the 1994-1995 school
    5-1  year and for each school year thereafter.
    5-2        SECTION 9.  Section 16.202, Education Code, is amended to
    5-3  read as follows:
    5-4        Sec. 16.202.  Studies.  On a biennial basis, the <Legislative
    5-5  Education Board and the> Legislative Budget Board, with the
    5-6  assistance of the Educational Economic Policy Center and the
    5-7  Central Education Agency, shall complete each of the following
    5-8  studies and develop recommended amounts where appropriate for each
    5-9  year of the next biennium:
   5-10              (1)  a study of the fiscal neutrality of the system to
   5-11  determine the status of the state and local finance system with
   5-12  regard to the policies established under the provisions of Section
   5-13  16.001 of this code, including recommendations for adjustments
   5-14  necessary to maintain fiscal neutrality;
   5-15              (2)  the accountable costs per student to school
   5-16  districts of providing educational programs, personnel, and other
   5-17  operating costs that meet accreditation criteria and the provisions
   5-18  of law and regulation;
   5-19              (3)  program cost differentials designed by program to
   5-20  provide support for the added expense of high-cost courses or
   5-21  programs for students participating in such courses or programs,
   5-22  with the program funding level expressed as dollar amounts and as
   5-23  weights applied to the adjusted basic allotment for the appropriate
   5-24  year;
   5-25              (4)  transportation and career ladder allotments;
   5-26              (5)  the levels of tax effort necessary for each tier
   5-27  of the Foundation School Program necessary to fulfill the
    6-1  requirements of Sections 16.001 and 16.008 of this code; and
    6-2              (6)  capital outlay and debt service requirements and
    6-3  formula elements for the requirements of Subchapter I of this
    6-4  chapter  or other provisions of this chapter.
    6-5        SECTION 10.  Section 16.203, Education Code, is amended to
    6-6  read as follows:
    6-7        Sec. 16.203.  Procedures.  (a)  The program cost
    6-8  differentials developed <jointly> by the <Legislative Education
    6-9  Board and the> Legislative Budget Board shall be submitted to the
   6-10  foundation school fund budget committee for adoption beginning with
   6-11  the 1993-1994 school year.  If the foundation school fund budget
   6-12  committee fails to adopt by April 1 the program cost differentials
   6-13  for the following school year, the commissioner of education, after
   6-14  considering the recommendations developed by the Legislative Budget
   6-15  Board <those boards>, shall adopt program cost differentials.
   6-16        (b)  The commissioner of education shall provide appropriate
   6-17  assistance to the Legislative Budget Board <boards> for the
   6-18  calculation of the various funding elements.  Subject to review by
   6-19  the Legislative Budget Board <Legislative Education Board>, the
   6-20  commissioner of education shall retain from the allotments under
   6-21  Sections 16.102 and 16.103 of this code and Subchapter D of this
   6-22  chapter  amounts appropriate to finance necessary additional costs
   6-23  for the studies required under this subchapter.
   6-24        (c)  The Legislative Budget Board <boards> may appoint
   6-25  advisory committees to assist in the development of the various
   6-26  funding elements and studies required under this subchapter.
   6-27  Advisory committee members serve without compensation but are
    7-1  entitled to reimbursement for actual and necessary expenses
    7-2  incurred in the performance of their duties.  Reimbursement shall
    7-3  be from funds available under Subsection (b) of this section or
    7-4  from other funds available to the board <boards>.
    7-5        (d)  In the studies relating to program cost differentials
    7-6  the Legislative Budget Board <boards> shall give special
    7-7  consideration to cost factors associated with class size,
    7-8  laboratory expenses, materials, equipment, teacher training,
    7-9  necessary salary supplementation, and special services related to
   7-10  individual courses or groups of courses.
   7-11        SECTION 11.  Section 16.204(b), Education Code, is amended to
   7-12  read as follows:
   7-13        (b)  If the construction or operation of a significant new
   7-14  naval military facility begins during a school year, the
   7-15  <Legislative Education Board and the> Legislative Budget Board
   7-16  shall recommend the adjustment of the basic allotment during that
   7-17  school year to consider any impact of the facility on the cost of
   7-18  education index of the districts in the impacted region.
   7-19        SECTION 12.  Section 16.205(d), Education Code, is amended to
   7-20  read as follows:
   7-21        (d)  Prior to the beginning of each regular session of the
   7-22  legislature, the agency shall provide a report with recommendations
   7-23  to the Legislative Budget Board <Legislative Education Board> and
   7-24  the legislature.
   7-25        SECTION 13.  Sections 16.256(d) and (f), Education Code, are
   7-26  amended to read as follows:
   7-27        (d)  The foundation school fund budget committee shall adopt
    8-1  rules for the calculation for each year of a biennium of the
    8-2  qualified funding elements necessary to achieve the state funding
    8-3  policy under Section 16.001 of this code not later than the
    8-4  1994-1995 school year and for each year thereafter.  In the
    8-5  calculation of these funding elements, the committee shall consider
    8-6  the report of the Legislative Budget Board <Legislative Education
    8-7  Board> prescribed under Section 16.008 of this code.
    8-8        (f)  Beginning in 1992, not later than November 1 preceding
    8-9  each regular session of the legislature, the foundation school fund
   8-10  budget committee by rule shall adopt and report the equalized
   8-11  funding elements calculated under this section to the commissioner
   8-12  of education and the legislature.  Before the committee adopts the
   8-13  elements, the committee or the committee's designees shall hold a
   8-14  public hearing on the recommendations of the Legislative Budget
   8-15  Board <Legislative Education Board>.
   8-16        SECTION 14.  Section 16.302(b), Education Code, is amended to
   8-17  read as follows:
   8-18        (b)  Beginning with the 1993-1994 school year, if the program
   8-19  cost differentials developed <jointly> by the <Legislative
   8-20  Education Board and the> Legislative Budget Board under Section
   8-21  16.203 of this code and the adjustments studied under Section
   8-22  16.206 of this code are not adopted by the foundation school fund
   8-23  budget committee or the commissioner of education, the amount
   8-24  guaranteed under this section is an amount per student rather than
   8-25  per weighted student and a school district's average daily
   8-26  attendance ("ADA") under Section 16.006 of this code is substituted
   8-27  for "WADA" in the formula under Subsection (a) of this section.
    9-1        SECTION 15.  Section 20.941(c), Education Code, is amended to
    9-2  read as follows:
    9-3        (c)  Before each regular session of the legislature, the
    9-4  <Legislative Education Board, with the assistance of the>
    9-5  Legislative Budget Board<,> shall review the taxable value of
    9-6  property in each county education district and shall recommend
    9-7  changes in the boundaries of the districts necessary to ensure that
    9-8  no district has a taxable value of property in excess of $280,000
    9-9  per weighted student in average daily attendance, or a value set by
   9-10  the foundation school fund committee.
   9-11        SECTION 16.  Section 21.041(b), Education Code, as amended by
   9-12  Chapters 353 and 813, Acts of the 71st Legislature, Regular
   9-13  Session, 1989, is amended to read as follows:
   9-14        (b)  The board of trustees of each school district shall
   9-15  appoint one or more attendance committees to hear petitions for
   9-16  class credit by students who are in attendance fewer than 80 days
   9-17  during a semester.  Each board may determine the number of
   9-18  committees needed in the district and the composition of each
   9-19  committee.  The committees may give class credit to a student who
   9-20  is in attendance fewer than 80 days during a semester because of
   9-21  extenuating circumstances.  Each local school board shall establish
   9-22  guidelines to determine what constitutes extenuating circumstances,
   9-23  subject to rules adopted by the State Board of Education, and shall
   9-24  adopt policies establishing alternative ways for students to make
   9-25  up work or regain credit lost because of absences.  The State Board
   9-26  of Education shall submit its rules adopted under this section to
   9-27  the Legislative Budget Board <Legislative Education Board> for
   10-1  review to ensure compliance with legislative intent.  A certified
   10-2  public school employee may not be assigned additional instructional
   10-3  duties as a result of this section outside of the regular workday
   10-4  unless the employee is compensated for the duties at a reasonable
   10-5  rate of pay.
   10-6        SECTION 17.  Section 21.5511(b), Education Code, is amended
   10-7  to read as follows:
   10-8        (b)  Before adopting rules under this section, the board
   10-9  shall consider the comments of the Legislative Budget Board
  10-10  <Legislative Education Board> as required under Section 11.24 of
  10-11  this code.
  10-12        SECTION 18.  Section 21.5512(b), Education Code, is amended
  10-13  to read as follows:
  10-14        (b)  Before adopting rules under this section, the board
  10-15  shall consider the comments of the Legislative Budget Board
  10-16  <Legislative Education Board> as required under Section 11.24 of
  10-17  this code.
  10-18        SECTION 19.  Section 21.5513(g), Education Code, is amended
  10-19  to read as follows:
  10-20        (g)  At the direction of the Legislative Budget Board, <each
  10-21  regular meeting of the Legislative Education Board> the committee
  10-22  shall report to the board its progress regarding:
  10-23              (1)  the essential knowledge and skills identified by
  10-24  the committee for elementary and secondary students, including at a
  10-25  minimum knowledge and skills in the areas of reading, writing,
  10-26  speaking, mathematics, and critical thinking;
  10-27              (2)  a statewide assessment program developed by the
   11-1  committee for elementary students that is primarily
   11-2  performance-based, uses a variety of assessment methodologies to
   11-3  determine if students have mastered the essential knowledge and
   11-4  skills, and is designed to assess students in at least two
   11-5  elementary grade levels;
   11-6              (3)  a statewide assessment program developed by the
   11-7  committee for secondary students that is primarily
   11-8  performance-based, uses a variety of assessment methodologies to
   11-9  determine if students have mastered the essential knowledge and
  11-10  skills, and provides criteria for a certificate of initial mastery;
  11-11              (4)  recommendations for appropriate uses by public
  11-12  schools and school districts of the results of the statewide
  11-13  assessment programs;
  11-14              (5)  recommendations for changes to state laws and
  11-15  rules, school district policies, budget procedures, and other
  11-16  factors that inhibit schools from adopting strategies designed to
  11-17  ensure that students achieve the essential knowledge and skills;
  11-18              (6)  recommendations for accurate and fair indicators
  11-19  to measure the level of student learning in public schools and
  11-20  school districts and measures that would assist public schools and
  11-21  school districts in which student learning is below expected levels
  11-22  of performance;
  11-23              (7)  recommendations for modifying college and
  11-24  university entrance requirements that inhibit public schools from
  11-25  adopting strategies that are designed to ensure that students
  11-26  achieve the essential knowledge and skills;
  11-27              (8)  the time, support, and resources, including
   12-1  technical assistance, that the committee determines to be necessary
   12-2  for public schools and school districts to ensure that students
   12-3  achieve the essential knowledge and skills; and
   12-4              (9)  recommendations for replacing course or class
   12-5  credit requirements with requirements for core competencies,
   12-6  including critical thinking skills, for the purpose of improving
   12-7  and evaluating student performance.
   12-8        SECTION 20.  Section 21.557(i), Education Code, is amended to
   12-9  read as follows:
  12-10        (i)  Each school district shall maintain on file and
  12-11  expeditiously make available on the request of a member of the
  12-12  general public a copy of the report describing the district's
  12-13  overall compensatory education program for educationally
  12-14  disadvantaged students.  The report must include sufficient detail
  12-15  to describe the overall compensatory education program offered on
  12-16  each campus and the activities and services provided on each campus
  12-17  from each funding source.  The commissioner of education shall
  12-18  develop model report formats that districts may use for the report.
  12-19  The model formats must be designed to be easily understood by a
  12-20  member of the general public and may not be overly burdensome for
  12-21  districts to prepare.  The commissioner shall submit the model
  12-22  formats to the Legislative Budget Board <Legislative Education
  12-23  Board> for comment and may not distribute the formats until the
  12-24  commissioner has received and considered those comments.  Each
  12-25  school district shall prepare and periodically update the
  12-26  description of the district's compensatory education program to
  12-27  accurately reflect the programs and services currently provided to
   13-1  educationally disadvantaged students.
   13-2        SECTION 21.  Sections 21.7531(a) and (e), Education Code, are
   13-3  amended to read as follows:
   13-4        (a)  The State Board of Education, on the advice of the
   13-5  academic excellence indicators advisory committee, the educational
   13-6  excellence committee, and the Legislative Budget Board <Legislative
   13-7  Education Board>, shall adopt a set of indicators of the quality of
   13-8  learning on a campus and other performance standards.  The board
   13-9  biennially shall review the indicators for the consideration of
  13-10  appropriate revisions.
  13-11        (e)  The Educational Economic Policy Center shall biennially
  13-12  review the indicators adopted under this section and recommend
  13-13  changes in those indicators to the State Board of Education and the
  13-14  Legislative Budget Board <Legislative Education Board>.
  13-15        SECTION 22.  Sections 21.758(a) and (c), Education Code, are
  13-16  amended to read as follows:
  13-17        (a)  The commissioner of education may order the suspension
  13-18  of the powers of the board of trustees of a school district if the
  13-19  school district has been rated academically unaccredited for a
  13-20  period of one year.  The commissioner shall immediately inform the
  13-21  Legislative Budget Board <Legislative Education Board> of the
  13-22  commissioner's decision to order the suspension.
  13-23        (c)  The appointed superintendent shall report annually to
  13-24  the commissioner on the progress of the school district toward
  13-25  meeting the requirements necessary for accreditation.  The
  13-26  commissioner shall report to the Legislative Budget Board
  13-27  <Legislative Education Board> annually on the district's progress.
   14-1        SECTION 23.  Section 34.052(g), Education Code, is amended to
   14-2  read as follows:
   14-3        (g)  The committee shall report to the Legislative Budget
   14-4  Board <Legislative Education Board> at least once a year.  The
   14-5  committee shall also report to the governor, the State Board of
   14-6  Education, the Texas Higher Education Coordinating Board, and the
   14-7  legislature before the convening of each regular session.
   14-8        SECTION 24.  Chapter 322, Government Code, is amended by
   14-9  adding Section 322.013 to read as follows:
  14-10        Sec. 322.013.  REVIEW OF EDUCATIONAL POLICY IMPLEMENTATION.
  14-11  (a)  The board shall oversee and review the implementation of
  14-12  legislative education policy by state agencies that have the
  14-13  statutory duty to implement that policy, including policy relating
  14-14  to:
  14-15              (1)  fiscal matters;
  14-16              (2)  academic expectations; and
  14-17              (3)  evaluation of program cost-effectiveness.
  14-18        (b)  The board shall periodically review the actions or
  14-19  proposed actions of the State Board of Education for the purpose of
  14-20  ensuring compliance with legislative intent.
  14-21        If the board determines that any action or proposed action of
  14-22  the State Board of Education conflicts with legislative educational
  14-23  policy, the board shall submit its comments on the conflict to the
  14-24  State Board of Education in writing.
  14-25        If the board determines that a final action of the board
  14-26  conflicts with the intent of legislative educational policy, the
  14-27  board may:
   15-1              (1)  request additional information from the State
   15-2  Board of Education relating to the intent of the board's action;
   15-3              (2)  request a joint meeting with the State Board of
   15-4  Education to discuss the conflict between the action and
   15-5  legislative educational policy;
   15-6              (3)  request that the State Board of Education
   15-7  reconsider its action; or
   15-8              (4)  notify the governor, lieutenant governor, speaker
   15-9  of the house, and the legislature of the conflict presented.
  15-10        (c)  The board shall make recommendations to the legislature
  15-11  concerning needed changes in legislative education policy.
  15-12        (d)  The board may appoint advisory committees composed of
  15-13  citizens of the state to advise the board in the discharge of the
  15-14  board's duties.  A member of an advisory committee appointed under
  15-15  this section serves without compensation but is entitled to
  15-16  reimbursement for actual expenses incurred in the performance of
  15-17  the member's duties.
  15-18        (e)  For purposes of carrying out its duties, the board may
  15-19  administer oaths and issue subpoenas, signed by the chairman or
  15-20  vice-chairman, to compel the attendance of witnesses and the
  15-21  production of books, records, and documents.  A subpoena of the
  15-22  board shall be served by a peace officer in the manner in which
  15-23  district court subpoenas are served.  On application of the board,
  15-24  a district court of Travis County shall compel compliance with a
  15-25  subpoena issued by the board in the same manner as for district
  15-26  court subpoenas.
  15-27        SECTION 25.  (a)  The Legislative Education Board is
   16-1  abolished.
   16-2        (b)  Chapter 327, Government Code, is repealed.
   16-3        (c)  Any reference in law to the Legislative Education Board
   16-4  means the Legislative Budget Board.
   16-5        (d)  A rule adopted by the Legislative Education Board that
   16-6  is in effect on the effective date of this Act is considered to
   16-7  have been adopted by the Legislative Budget Board until amended,
   16-8  repealed, or superseded by the Legislative Budget Board.
   16-9        (e)  An action taken by the Legislative Education Board
  16-10  before the effective date of this Act has the same effect as an
  16-11  action of the Legislative Budget Board.
  16-12        (f)  The personnel, property, records, and funds of the
  16-13  Legislative Education Board are transferred to the Legislative
  16-14  Budget Board.
  16-15        SECTION 26.  This Act takes effect September 1, 1993.
  16-16        SECTION 27.  The importance of this legislation and the
  16-17  crowded condition of the calendars in both houses create an
  16-18  emergency and an imperative public necessity that the
  16-19  constitutional rule requiring bills to be read on three several
  16-20  days in each house be suspended, and this rule is hereby suspended.