By Maxey H.B. No. 433
75R2860 CAS-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to school district financial accountability.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 39.072, Education Code, is amended by
1-5 amending Subsection (b) and adding Subsection (d) to read as
1-6 follows:
1-7 (b) The academic excellence indicators adopted under
1-8 Sections 39.051(b)(1) through (6) shall be the main consideration
1-9 of the agency in the rating of the district under this section.
1-10 Additional criteria in the rules may include consideration of:
1-11 (1) compliance with statutory requirements and
1-12 requirements imposed by rule of the State Board of Education under
1-13 specific statutory authority that relate to:
1-14 (A) reporting data, including reporting through
1-15 the Public Education Information Management System (PEIMS);
1-16 (B) the high school graduation requirements
1-17 under Section 28.025; or
1-18 (C) an item listed in Sections
1-19 7.056(e)(3)(C)-(I) that applies to the district; and
1-20 (2) the effectiveness of the district's programs in
1-21 special education based on the agency's most recent compliance
1-22 review of the district and programs for special populations.
1-23 (d) For purposes of Subsection (b), compliance with
1-24 statutory requirements and requirements imposed by rule for
2-1 reporting financial data shall be measured by a district's
2-2 financial data reporting rating under Chapter 46.
2-3 SECTION 2. Subtitle I, Title 2, Education Code, is amended
2-4 by adding Chapter 46 to read as follows:
2-5 CHAPTER 46. SCHOOL DISTRICT FINANCIAL ACCOUNTABILITY
2-6 Sec. 46.001. FINANCIAL DATA REPORTING STANDARDS; RATINGS.
2-7 (a) The agency by rule shall adopt standards by which to evaluate
2-8 the quality of financial data reported to the agency by school
2-9 districts through any means, including through the Public Education
2-10 Information Management System under Section 42.006. Among the
2-11 standards adopted shall be district compliance in reporting
2-12 financial data required by this code or by rule adopted under this
2-13 code, including whether the data is accurate and complete and
2-14 whether the district reports the data in the form and by the date
2-15 required. Based on the standards, the agency shall assign to each
2-16 district a financial data reporting rating as follows:
2-17 (1) exemplary (meets or exceeds exemplary standards);
2-18 (2) recognized (within 10 percent of exemplary
2-19 standards);
2-20 (3) acceptable (below the exemplary and recognized
2-21 standards but exceeds the unacceptable standards); or
2-22 (4) unacceptable (below the clearly unacceptable
2-23 performance standard).
2-24 (b) Each year, the agency shall notify each district of the
2-25 district's financial data reporting rating. The district shall
2-26 notify property owners and parents of students in the district of
2-27 the rating. The district shall provide the notification by
3-1 publishing the rating in a newspaper of general circulation in the
3-2 district and by giving notice to electronic media serving the
3-3 district unless the commissioner by rule requires a different or
3-4 additional method of notification.
3-5 Sec. 46.002. REVIEW OF RATING. The agency shall annually
3-6 review the financial data reporting rating given to each district
3-7 under Section 46.001 and determine if a change in rating of the
3-8 district is warranted.
3-9 Sec. 46.003. COMPUTER SOFTWARE STANDARDS. (a) The agency
3-10 shall develop standards for computer software that school districts
3-11 use in collecting financial data and for software that school
3-12 districts use in reporting financial data to the agency.
3-13 (b) A district that received a financial data reporting
3-14 rating of unacceptable for the preceding year under Section 46.001
3-15 must, as determined by the commissioner, use computer software that
3-16 complies with the standards adopted under Subsection (a) or provide
3-17 data collection and reporting training to district personnel
3-18 responsible for those duties.
3-19 Sec. 46.004. USE OF ACTUAL AND BUDGETED DATA. In agency or
3-20 school district reports or other publications that include or are
3-21 based on financial data and that are generally distributed to the
3-22 public, including the performance report under Section 39.053 and
3-23 agency publications of school district profiles, the district or
3-24 agency shall include both the amount budgeted for a specified
3-25 expenditure and the actual amount spent.
3-26 Sec. 46.005. EDUCATIONAL MATERIALS FOR THE PUBLIC. (a) The
3-27 agency shall develop educational materials, including computer
4-1 software, to assist the public in understanding issues of school
4-2 district and agency financial accountability, including the manner
4-3 in which state and local tax dollars are spent on public education.
4-4 (b) Computer software the agency develops under Subsection
4-5 (a) must include software to facilitate public access to agency
4-6 financial databases that provides extensive on-screen directions in
4-7 using the software and on-screen explanations of school district
4-8 accounting requirements and the terminology used.
4-9 (c) The agency, in conjunction with regional education
4-10 service centers, shall coordinate efforts of school districts in
4-11 providing financial information to the public through interactive
4-12 electronic media, such as the Internet, including financial
4-13 information about the districts and campuses in the districts.
4-14 SECTION 3. (a) The Texas Education Agency shall implement
4-15 a financial data reporting rating system as required by Chapter 46,
4-16 Education Code, as added by this Act, not later than August 31,
4-17 1999.
4-18 (b) Section 46.004, Education Code, as added by this Act,
4-19 applies to reports or publications issued on or after September 1,
4-20 1998.
4-21 SECTION 4. This Act takes effect September 1, 1997.
4-22 SECTION 5. The importance of this legislation and the
4-23 crowded condition of the calendars in both houses create an
4-24 emergency and an imperative public necessity that the
4-25 constitutional rule requiring bills to be read on three several
4-26 days in each house be suspended, and this rule is hereby suspended.