SR H.B. 2839 75(R)    BILL ANALYSIS


PUBLIC EDUCATION
H.B. 2839
By: Sadler
4-21-97
Committee Report (Unamended)



BACKGROUND 

Currently, the twenty regional education service centers established under
former Section 11.32, Education Code, are to be abolished on August 31,
1997, and Chapter 8, Education Code, is to be repealed unless continuing
legislative action occurs. 

PURPOSE

To provide for the continuation of regional education service centers.

RULEMAKING AUTHORITY

It is the committee's opinion the bill expressly grants rulemaking
authority in SECTION 1 to the commissioner of education. 

SECTION BY SECTION ANALYSIS

SECTION 1

 Amends Chapter 8, Education Code as follows:
 
 Section 8.001 (a) The commissioner shall provide for the establishment
and operation of  a system of regional education service centers.  
 (b) Provides that each school district has the opportunity to be served
by and participate  in a center that meets the accountability standards
established by the commissioner. 
 (c) The commissioner may decide any matter concerning the operation or
administration  of the system of regional education service centers
including:  the number and location,  the regional boundaries of the
centers, and the allocation among centers of state and  federal funds
administered by the agency. 
 (d) This chapter does not limit a school district's freedom to purchase
services from any  regional education service center, or require a school
district to purchase services from a  regional education service center. 

 Section 8.002 The system of regional education service centers shall
assist school  districts in improving student performance in each region
of the system, enable school  districts to operate more efficiently and
economically, and implement initiatives assigned  by the legislature or
commissioner. 

 Section 8.003 (b) The commissioner shall adopt rules to provide for the
local selection,  appointment, and continuity of membership of regional
educational  service center boards  of directors. 
 (e) Each regional educational service center board of directors shall
develop    policies to ensure the sound management and operation of the
center consistent with  Section 8.002. 
 (f) Each regional education service center board of directors shall adopt
an annual budget  for the following year after conducting a public hearing
on the center's performance  during the preceding year on standards
established by the commissioner. 

  Section 8.004 The selection and dismissal of the executive director of a
regional    education service center is subject to the approval of the
commissioner. 

 Section 8.005 A regional education service center and its employees are
subject to or  exempt from taxation in the same manner as a school
district and school district    employees. 

 Section 8.006 An employee or volunteer of a regional education service
center is immune  from liability to the same extent as an employee or
volunteer of a school district.  

 Section 8.007 (a) A regional education service center may accept personal
leave accrued  by a center employee if the employee was formerly employed
by the state or was formerly  employed by a school district. 
 (b) A school district or the state shall accept the personal leave
accrued by an employee  who was formally employed by a regional education
service center. 

 Section 8.051 (a) Each regional education service center shall use funds
distributed to  develop, maintain, and deliver services identified under
this section to improve student  and school district performance. 
   (b) Each regional education service center shall annually develop and
submit to the  commissioner for approval a plan for improvement.  Each
plan must include the purposes  and description of the services the center
will provide to low-performing campuses, the  lowest performing campus in
the region, and other campuses. 
 (c) Each regional education service center shall provide services that
enable school  districts to operate more efficiently and economically. 

 Section 8.052 As directed by the commissioner each regional education
service center  shall, as necessary, use funds distributed under Section
8.123 to implement initiatives  identified by the legislature.  

 Section 8.053 In addition to the services provided and the initiatives
implemented,  a regional education service center may offer any service
requested and purchased by any  school district or campus in the state. 

 Section 8.054 A regional education service center may not perform a
regulatory function  regarding a school district, but may offer training
or other assistance to a school district in  complying with a state or
federal law, rule, or regulation. 

 Section 8.055 (a) Each regional education service center may purchase or
lease property  or acquire property through lease-purchase and may incur
debts for that purpose.  The  board of directors may, with the
commissioner's approval, approve a transaction under  this subsection. 
 (b) Each regional education service center may dispose of property in the
manner and on  the terms that the board of directors determines. 

 Section 8.101 The commissioner shall establish performance standards and
indicators for regional education service centers that measure the
achievement of the  objectives in Section 8.002.  Performance standards
and indicators must at least measure  a center's assistance to school
districts in improving student performance, promotion of  more efficient
and economical school district operations, and implementation of
initiatives assigned by the legislature and the commissioner. 

 Section 8.102 Each regional education service center shall report audited
or budgeted  financial information and any other information requested by
the commissioner for use in  assessing the performance of the center.  The
commissioner shall develop a uniform  system to report audited financial
data, to report information on the indicators, and to  provide information
on client satisfaction with services provided. 


  Section 8.103  The commissioner shall conduct an annual evaluation of
each executive  director and regional education service center.  Each
evaluation must include an audit of  the center's finances, a review of
the center's performance on the indicators, a review of  client
satisfaction with services provided, and a review of any other factor the
commissioner determines to be appropriate. 

 Section 8.104 The commissioner shall develop a system of corrective
actions to require  of a regional education service center that the
commissioner determines to be deficient in  an accountability measure
under Section 8.103.  The actions will include conducting an  on-site
investigation of the center as the least severe action. 

 Section 8.121 (a) Regional education service centers receive state
financial support for  services provided under Section 8.051 from money
appropriated for the Foundation  School Program.  The commissioner shall
distribute money based on the minimum  amount necessary for operation, an
additional amount of money that reflects the size and  number of campuses
served by the center, and the impact of the geographic size of  a center's
service area on the cost of providing services under Section 8.051.  
 (b) The allotments authorized by Subsection (a) in any year may not be
less than .4  percent of the amount appropriated for purposes of the
Foundation School Program for  that year. 
 (c) Each center shall use money distributed under this section for the
provision of services  required under Section 8.051 or for payment of
necessary administrative and operational  expenses of the center related
to the provision of those services. 

 Section 8.122 (a) The legislature may appropriate money from the
foundation school  fund to establish an incentive fund to encourage
efficiency in the provision of services by  the system of regional
education service centers.  
  (b)  The commissioner may submit to each regular session of the
legislature an incentive  funding report and plan that: demonstrates
centers are providing the services required or  permitted by law; defines
efficiencies of scale in measurable terms; proposes the payment  size and
schedule for the incentive fund; and establishes a method for
documenting and computing efficiencies. 
 (c) The commissioner shall determine the method by which money
appropriated under  this section is distributed to regional education
service centers. 
 (d) The board of trustees of a school district may delegate purchasing or
other    administrative functions to a regional education service center
to the extent necessary to  achieve efficiencies under this section. 

 Section 8.123 (a) The legislature may appropriate money from the
foundation school  fund or other sources to implement initiatives
identified by the legislature. 
 (b) The commissioner may adopt rules governing the strategies, programs,
projects, and  regions eligible for funding under this section, and the
amount of funds that may be  distributed to a regional education serviced
center for a specific initiative.  

 Section 8.124 (a) Allows money appropriated under this section to be
distributed as  emergency grants for providing adequate services under
Section 8.051 to small and  isolated school districts or other school
districts in extreme circumstances.   

 Section 8.125 Each regional education service center board of directors,
under rules  adopted by the commissioner, may enter into a contract for a
grant from a public or  private organization and may spend grant funds in
accordance with the terms of the  contract. 

 SECTION 2 

 Amends Section 7.102, Education Code by deleting the power and duty of
the State  Board of Education to adopt rules to provide for regional
education service center boards  of directors as provided by Section 8.003
and rules under which a regional education  service center may receive and
spend grants under Section 8.1224.  The bill then    renumbers
accordingly. 

 SECTION 3 

 Amends Section 39.183, Education Code to include in the regional and
district level  report an evaluation of the performance of the system of
regional education service  centers based on the indicators adopted under
Section 8.101 and client satisfaction with  services provided under
Subchapter B, Chapter 8.  


 SECTION 4 

 Repeals Section 59, Chapter 260, Acts of the 74th Legislature, Regular
Session, 1995. 

 SECTION 5 

 Effective dates.

 SECTION 6 

 Emergency Clause.