1-1                                   AN ACT

 1-2     relating to audits and annual performance reports of junior college

 1-3     districts.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subchapter A, Chapter 130, Education Code, is

 1-6     amended by adding Section 130.0035 to read as follows:

 1-7           Sec. 130.0035.  PERFORMANCE REPORTS.  (a)  As soon as

 1-8     practicable after the end of each academic year, a junior college

 1-9     district shall prepare an annual performance report for that

1-10     academic year.  The report shall be prepared in a form that would

1-11     enable any interested person, including a prospective student, to

1-12     understand the information in the report and to compare the

1-13     information to similar information for other junior college

1-14     districts.  A junior college district shall make the report

1-15     available to any person on request.

1-16           (b)  The report must include the following information for

1-17     the junior college district for the academic year covered by the

1-18     report:

1-19                 (1)  the rate at which students completed courses

1-20     attempted;

1-21                 (2)  the number and types of degrees and certificates

1-22     awarded;

1-23                 (3)  the percentage of graduates who passed licensing

1-24     exams related to the degree or certificate awarded, to the extent

 2-1     the information can be determined;

 2-2                 (4)  the number of students or graduates who transfer

 2-3     to or are admitted to a public university;

 2-4                 (5)  the passing rates for students required to be

 2-5     tested under Section 51.306;

 2-6                 (6)  the percentage of students enrolled who are

 2-7     academically disadvantaged;

 2-8                 (7)  the percentage of students enrolled who are

 2-9     economically disadvantaged;

2-10                 (8)  the racial and ethnic composition of the

2-11     district's student body; and

2-12                 (9)  the percentage of student contact hours taught by

2-13     full-time faculty.

2-14           (c)  The Legislative Budget Board shall develop recommended

2-15     standards for reports under this section, in consultation with

2-16     junior college districts, the Texas Higher Education Coordinating

2-17     Board, the governor's office of budget and planning,  and the state

2-18     auditor.

2-19           (d)  A junior college district is not required to prepare a

2-20     report under this section before the report covering the 1997-1998

2-21     academic year.  This subsection expires January 1, 2000.

2-22           SECTION 2.  Chapter 321, Government Code, is amended by

2-23     adding Section 321.0137 to read as follows:

2-24           Sec. 321.0137.  INDEPENDENT AUDIT OF JUNIOR COLLEGE DISTRICT.

2-25     (a)  At a reasonable time in advance of an independent audit of a

2-26     junior college district, the state auditor shall provide the

2-27     presiding officer of the district's governing body and the chief

 3-1     executive officer of the district with written information relating

 3-2     to the procedures for and scope of the audit.  The state auditor

 3-3     shall include in the materials information describing:

 3-4                 (1)  how the appropriate representatives of the

 3-5     district may participate in the audit planning process; and

 3-6                 (2)  how the district may request information or

 3-7     assistance in preparing for the audit from the state auditor.

 3-8           (b)  The state auditor shall seek the recommendations of the

 3-9     Texas Higher Education Coordinating Board in preparing materials to

3-10     be provided under Subsection (a).

3-11           SECTION 3.  This Act takes effect September 1, 1997.

3-12           SECTION 4.  The importance of this legislation and the

3-13     crowded condition of the calendars in both houses create an

3-14     emergency and an imperative public necessity that the

3-15     constitutional rule requiring bills to be read on three several

3-16     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 2517 was passed by the House on April

         30, 1997, by a non-record vote; that the House refused to concur in

         Senate amendments to H.B. No. 2517 on May 24, 1997, and requested

         the appointment of a conference committee to consider the

         differences between the two houses; and that the House adopted the

         conference committee report on H.B. No. 2517 on June 1, 1997, by a

         non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 2517 was passed by the Senate, with

         amendments, on May 22, 1997, by a viva-voce vote; at the request of

         the House, the Senate appointed a conference committee to consider

         the differences between the two houses; and that the Senate adopted

         the conference committee report on H.B. No. 2517 on June 1, 1997,

         by a viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor