AN ACT

 1-1     relating to regional education service centers.

 1-2           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-3           SECTION 1.  Chapter 8, Education Code, is amended to read as

 1-4     follows:

 1-5               CHAPTER 8.  REGIONAL EDUCATION SERVICE CENTERS

 1-6                      SUBCHAPTER A.  GENERAL PROVISIONS

 1-7           Sec. 8.001.  ESTABLISHMENT.  (a)  The commissioner [agency]

 1-8     shall provide for the establishment and operation of not more than

 1-9     20 regional education service centers.

1-10           (b)  Regional education service centers shall be located

1-11     throughout the state so that each school district has the

1-12     opportunity to be served by and to participate, [in an approved

1-13     center] on a voluntary basis, in a center that meets the

1-14     accountability standards established by the commissioner.

1-15           (c)  The commissioner may decide any matter concerning the

1-16     operation or administration of the regional education service

1-17     centers, including:

1-18                 (1)  the number and location of centers;

1-19                 (2)  the regional boundaries of centers; and

1-20                 (3)  the allocation among centers of state and federal

1-21     funds administered by the agency.

1-22           (d)  This chapter does not:

1-23                 (1)  limit a school district's freedom to purchase

 2-1     services from any regional education service center; or

 2-2                 (2)  require a school district to purchase services

 2-3     from a regional education service center.

 2-4           Sec. 8.002.  PURPOSE.  [(a)]  Regional education service

 2-5     centers shall:

 2-6                 (1)  [, at the direction of the commissioner, provide

 2-7     services to] assist school districts in improving student

 2-8     performance in each region of the system;

 2-9                 (2)  enable school districts to operate more

2-10     efficiently and economically; and

2-11                 (3)  implement initiatives assigned by the legislature

2-12     or the commissioner [increasing the efficiency and effectiveness of

2-13     school operations].

2-14           [(b)  In addition to core services a regional education

2-15     service center is required to offer under Section 8.051, a school

2-16     district or campus may purchase any other available service from

2-17     any center.]

2-18           Sec. 8.003.  GOVERNANCE.  (a)  Each regional education

2-19     service center is governed by a board of directors composed of

2-20     seven members.

2-21           (b)  The commissioner shall adopt [recommend to the State

2-22     Board of Education for adoption uniform] rules to provide for the

2-23     local selection, appointment, and continuity of membership of

2-24     regional education service center boards of directors.

2-25           (c)  A vacancy on a regional education service center board

 3-1     of directors shall be filled by appointment by the remaining

 3-2     members of the board for the unexpired term.

 3-3           (d)  A member of the board is not entitled to compensation

 3-4     from the regional education service center but is entitled to

 3-5     reimbursement with center funds for necessary expenses incurred in

 3-6     performing duties as a board member.

 3-7           (e)  Each regional education service center board of

 3-8     directors shall develop policies to ensure the sound management and

 3-9     operation of the center consistent with Section 8.002.  Subject to

3-10     approval of the board of directors, regional education service

3-11     centers shall offer programs and activities to school districts and

3-12     campuses under Sections 8.051, 8.052, and 8.053.  [The board of

3-13     directors shall be directly involved in the planning and evaluation

3-14     of programs and activities developed and offered to school

3-15     districts and campuses under Section 8.051 or 8.052.]

3-16           (f)  Each regional education service center board of

3-17     directors shall adopt an annual budget for the following year after

3-18     conducting a public hearing on the center's performance during the

3-19     preceding year on standards established by the commissioner under

3-20     Section 8.101.

3-21           Sec. 8.004.  EXECUTIVE DIRECTOR.  The regional education

3-22     service center board of directors shall employ an executive

3-23     director.  The selection and dismissal of the executive director is

3-24     subject to the approval of the commissioner.  The executive

3-25     director is the chief executive officer of the regional education

 4-1     service center and may employ personnel as necessary to carry out

 4-2     the functions of the center.

 4-3           Sec. 8.005.  EXEMPTION FROM TAXATION.  A regional education

 4-4     service center and its employees are subject to or exempt from

 4-5     taxation in the same manner as a school district and school

 4-6     district employees.

 4-7           Sec. 8.006.  IMMUNITY FROM LIABILITY.  An employee or

 4-8     volunteer of a regional education service center is immune from

 4-9     liability to the same extent as an employee or volunteer of a

4-10     school district.

4-11           Sec. 8.007.  TRANSFERABILITY OF LEAVE.  (a)  A regional

4-12     education service center shall accept personal leave accrued by a

4-13     center employee as sick leave under state law by an employee who

4-14     was formerly employed by the state.

4-15           (b)  A school district or the state shall accept the sick

4-16     leave accrued by an employee who was formerly employed by a

4-17     regional education service center not to exceed five days per year

4-18     for each year of employment.

4-19                      SUBCHAPTER B.  POWERS AND DUTIES

4-20           Sec. 8.051.  CORE SERVICES AND SERVICES TO IMPROVE

4-21     PERFORMANCE.  (a)  Each regional education service center shall use

4-22     funds distributed to the center under Section 8.121 to develop,

4-23     maintain, and deliver services identified under this section to

4-24     improve student and school district performance.

4-25           (b)  Each regional education service center shall annually

 5-1     develop and submit to the commissioner for approval a plan for

 5-2     improvement.  Each plan must include the purposes and description

 5-3     of the services the center will provide to:

 5-4                 (1)  campuses identified as low-performing based on the

 5-5     indicators adopted under Section 39.051;

 5-6                 (2)  the lowest-performing campuses in the region; and

 5-7                 (3)  other campuses.

 5-8           (c)  Each regional education service center shall provide

 5-9     services that enable school districts to operate more efficiently

5-10     and economically [for developing and maintaining core services for

5-11     purchase by school districts and campuses.  The core services are:]

5-12                 [(1)  training and assistance in teaching each subject

5-13     area assessed under Section 39.023;]

5-14                 [(2)  training and assistance in providing each program

5-15     that qualifies for a funding allotment under Section 42.151,

5-16     42.152, 42.153, or 42.156;]

5-17                 [(3)  assistance specifically designed for a school

5-18     district rated academically unacceptable under Section 39.072(a) or

5-19     a campus whose performance is considered unacceptable based on the

5-20     indicators adopted under Section 39.051;]

5-21                 [(4)  training and assistance to teachers,

5-22     administrators, members of district boards of trustees, and members

5-23     of site-based decision-making committees; and]

5-24                 [(5)  assistance in complying with state laws and

5-25     rules].

 6-1           (d)  Each regional education service center shall maintain

 6-2     core services for purchase by school districts and campuses.  The

 6-3     core services are:

 6-4                 (1)  training and assistance in teaching each subject

 6-5     area assessed under Section 39.023;

 6-6                 (2)  training and assistance in providing each program

 6-7     that qualifies for a funding allotment under Section 42.151,

 6-8     42.152, 42.153, or 42.156;

 6-9                 (3)  assistance specifically designed for a school

6-10     district rated academically unacceptable under Section 39.072(a) or

6-11     a campus whose performance is considered unacceptable based on the

6-12     indicators adopted under Section 39.051;

6-13                 (4)  training and assistance to teachers,

6-14     administrators, members of district boards of trustees, and members

6-15     of site-based decision-making committees; and

6-16                 (5)  assistance in complying with state laws and rules.

6-17           Sec. 8.052.  STATE INITIATIVES.  As directed by the

6-18     commissioner, each regional education service center shall, as

6-19     necessary, use funds distributed under Section 8.123 to implement

6-20     initiatives identified by the legislature.

6-21           Sec. 8.053.  ADDITIONAL SERVICES.  In addition to the [core]

6-22     services provided [listed] under Section 8.051 and the initiatives

6-23     implemented under Section 8.052, a regional education service

6-24     center may offer any service requested and purchased by any school

6-25     district or campus in the state.

 7-1           [Sec. 8.053.  PLANNING AND REPORTING.  Each regional

 7-2     education service center shall:]

 7-3                 [(1)  prepare a quantitative summary, by school

 7-4     district and campus, of services delivered under Sections 8.051 and

 7-5     8.052;]

 7-6                 [(2)  report audited financial and performance

 7-7     information using the uniform system adopted by the commissioner;

 7-8     and]

 7-9                 [(3)  perform any other duty the commissioner

7-10     determines is necessary under Subchapter C.]

7-11           Sec. 8.054.  PROHIBITION ON REGULATORY FUNCTION.  A regional

7-12     education service center may not perform a regulatory function

7-13     regarding a school district.  This section does not prohibit a

7-14     regional education service center from offering training or other

7-15     assistance to a school district in complying with a state or

7-16     federal law, rule, or regulation.

7-17           Sec. 8.055.  REGIONAL EDUCATION SERVICE CENTER PROPERTY.

7-18     (a)  Each regional education service center may purchase or lease

7-19     property or acquire property through lease-purchase and may incur

7-20     debts for that purpose.  Any transaction under this subsection is

7-21     subject to the approval of the board of directors.

7-22           (b)  Any transaction under this subsection involving real

7-23     property is subject to the approval of the board of directors and

7-24     the commissioner.

7-25           (c)  Each regional education service center may dispose of

 8-1     property in the manner and on the terms that the board of directors

 8-2     determines.

 8-3                SUBCHAPTER C.  EVALUATION AND ACCOUNTABILITY

 8-4           Sec. 8.101.  PERFORMANCE STANDARDS AND INDICATORS.  The

 8-5     commissioner shall establish performance standards and indicators

 8-6     for regional education service centers that measure the achievement

 8-7     of the objectives in Section 8.002.  Performance standards and

 8-8     indicators must include the following:

 8-9                 (1)  student performance in districts served;

8-10                 (2)  district effectiveness and efficiency in districts

8-11     served resulting from technical assistance and program support;

8-12                 (3)  direct services provided or regionally shared

8-13     services arranged by the service center which produce more

8-14     economical and efficient school operations;

8-15                 (4)  direct services provided or regionally shared

8-16     services arranged by the service center which provide for

8-17     assistance in core services; and

8-18                 (5)  grants received for implementation of state

8-19     initiatives and the results achieved by the service center under

8-20     the terms of the grant contract.

8-21           Sec. 8.102.  DATA REPORTING.  Each regional education service

8-22     center shall report audited or budgeted financial information and

8-23     any other information requested by the commissioner for use in

8-24     assessing the performance of the center.  The commissioner shall

8-25     develop a uniform system for regional education service centers to

 9-1     report audited financial data, to report information on the

 9-2     indicators adopted under Section 8.101, and to provide information

 9-3     on client satisfaction with services provided under Subchapter B

 9-4     [and performance data].

 9-5           Sec. 8.103 [8.102].  ANNUAL EVALUATION.  The commissioner

 9-6     shall conduct an annual evaluation of each executive director and

 9-7     regional education service center.  Each evaluation must include:

 9-8                 (1)  an audit of the center's finances [and

 9-9     management];

9-10                 (2)  a review of the center's performance on the

9-11     [academic excellence] indicators adopted under Section 8.101

9-12     [identified in Section 39.051 of each school district and campus in

9-13     the center's region]; [and]

9-14                 (3)  a review of client satisfaction with services

9-15     provided under Subchapter B; and

9-16                 (4)  a review of any other factor the commissioner

9-17     determines to be appropriate.

9-18           Sec. 8.104 [8.103].  SANCTIONS.  The commissioner shall

9-19     develop [recommend to the State Board of Education for approval] a

9-20     system of corrective actions to require of a regional education

9-21     service center that the commissioner determines to be deficient in

9-22     an accountability measure under Section 8.103 [8.102].  The actions

9-23     must include, in increasing order of severity:

9-24                 (1)  conducting an on-site investigation of the center;

9-25                 (2)  requiring the center to send notice of each

 10-1    deficiency to each school district and campus in the center's

 10-2    region or served by the center the previous year;

 10-3                (3) [(2)]  requiring the center to prepare for the

 10-4    commissioner's approval a plan to address each area of deficiency;

 10-5                [(3)  conducting an on-site investigation of the

 10-6    center;]

 10-7                (4)  appointing a master to oversee the operations of

 10-8    the center;

 10-9                (5)  replacing the executive director or board of

10-10    directors; and

10-11                (6)  in the case of deficient performance in two

10-12    consecutive years, closing the center.

10-13                          SUBCHAPTER D.  FUNDING

10-14          Sec. 8.121.  FUNDING FOR CORE SERVICES AND SERVICES TO

10-15    IMPROVE PERFORMANCE.  (a)  Regional education service centers

10-16    receive state financial support for services provided under Section

10-17    8.051 from money appropriated for [to] the Foundation School

10-18    Program [for that purpose].  The commissioner shall distribute

10-19    money to each regional education service center for basic costs of

10-20    providing those [core] services according to an annual allotment

10-21    set by the commissioner based on:

10-22                (1)  the minimum amount of money necessary for the

10-23    operation of a center; [and]

10-24                (2)  an additional amount of money that reflects the

10-25    size and number of campuses served by the center under Section

 11-1    8.051; and

 11-2                (3)  an additional amount of money that reflects [the

 11-3    number of students in a center's service area and] the impact of

 11-4    the geographic size of a center's service area on the cost of

 11-5    providing [core] services under Section 8.051.

 11-6          (b)  The allotments authorized by Subsection (a) in any year

 11-7    may not be less than 0.4 percent of the amount appropriated for

 11-8    purposes of the Foundation School Program for that year.

 11-9          (c)  Each regional education service center shall use money

11-10    distributed to it under this section for the provision of core

11-11    services required under Section 8.051 or for payment of necessary

11-12    administrative and operational expenses of the center related to

11-13    the provision of those [core] services.

11-14          Sec. 8.122.  INCENTIVE FUNDING FOR DISTRICT EFFICIENCIES.

11-15    (a)  The legislature may appropriate money from the foundation

11-16    school fund to establish an incentive fund to encourage efficiency

11-17    in the provision of services by the system of regional education

11-18    service centers.

11-19          (b)  The commissioner may submit to each regular session of

11-20    the legislature an incentive funding report and plan that:

11-21                (1)  demonstrates that regional education service

11-22    centers are providing the services required or permitted by law;

11-23                (2)  defines efficiencies of scale in measurable terms;

11-24                (3)  proposes the size of and payment schedule for the

11-25    incentive fund; and

 12-1                (4)  establishes a method for documenting and computing

 12-2    efficiencies.

 12-3          (c)  The commissioner shall determine the method by which

 12-4    money appropriated under this section is distributed to regional

 12-5    education service centers.

 12-6          (d)  The board of trustees of a school district may delegate

 12-7    purchasing or other administrative functions to a regional

 12-8    education service center to the extent necessary to achieve

 12-9    efficiencies under this section. [PERFORMANCE CONTRACTS FOR

12-10    ADDITIONAL SERVICES.  (a)  After providing for the payment of basic

12-11    costs of providing core services under Section 8.121, the

12-12    commissioner may distribute the remaining money appropriated to the

12-13    Foundation School Program and money from other sources to regional

12-14    education service centers or school districts for the costs of

12-15    providing additional services.]

12-16          [(b)  The commissioner may designate the amount of money

12-17    available for distribution under Subsection (a) and the purposes

12-18    for which the money may be used.  In determining the allocation of

12-19    money distributed under Subsection (a), the commissioner shall

12-20    consider:]

12-21                [(1)  the scope and cost-effectiveness of the services

12-22    involved;]

12-23                [(2)  the number of students in a school district or in

12-24    an area served by a regional education service center, as

12-25    applicable; and]

 13-1                [(3)  the impact of the geographic size of a school

 13-2    district or of an area served by a regional education service

 13-3    center on the cost of providing services.]

 13-4          [(c)  As soon as possible after enactment of the General

 13-5    Appropriations Act each biennium, the commissioner shall notify

 13-6    each school district and regional education service center of the

 13-7    amount of money available for distribution under this section and

 13-8    the purposes for which the money may be used.]

 13-9          [(d)  If a school district requests direct distribution of

13-10    money under this section to provide an additional service, the

13-11    commissioner and district may enter into a performance contract

13-12    that specifies the purpose for which the money will be used and the

13-13    expected results of the expenditure.  After entering into a

13-14    performance contract with a school district, the commissioner shall

13-15    distribute to the district 90 percent of the funds available for

13-16    the service and distribute the remaining 10 percent to the regional

13-17    education service center for the region in which the district is

13-18    located.  The school district may provide the service specified in

13-19    the performance contract independently, in cooperation with one or

13-20    more other school districts, or through a contract with one or more

13-21    public or private entities, including a regional education service

13-22    center for a region other than the region in which the district is

13-23    located.]

13-24          [(e)  If a district elects to receive an additional service

13-25    from the regional education service center for the region in which

 14-1    the district is located, the district shall execute a performance

 14-2    contract with the center, subject to approval by the commissioner,

 14-3    that specifies the purpose for which the money will be used and the

 14-4    expected results of the expenditure.  The commissioner shall

 14-5    distribute the entire amount of money available for the service to

 14-6    the regional education service center in accordance with the

 14-7    performance contract.]

 14-8          Sec. 8.123.  FUNDING FOR STATE INITIATIVES [GRANTS].

 14-9    (a)  The legislature may appropriate money from the foundation

14-10    school fund or other sources to implement initiatives identified by

14-11    the legislature.

14-12          (b)  The commissioner may adopt rules governing:

14-13                (1)  the strategies, programs, projects, and regions

14-14    eligible for funding under this section; and

14-15                (2)  the amount of funds that may be distributed to a

14-16    regional education service center for a specific initiative.

14-17          Sec. 8.124.  INNOVATIVE AND EMERGENCY GRANTS.  (a)  The

14-18    legislature may appropriate money from the foundation school fund

14-19    or other sources for grants to regional education service centers.

14-20    Money appropriated under this section shall be distributed to

14-21    regional education service centers as:

14-22                (1)  competitive grants for developing and implementing

14-23    innovative regional strategies or programs; or

14-24                (2)  emergency grants for providing adequate [core]

14-25    services under Section 8.051 to small and isolated school districts

 15-1    or, in extreme circumstances, other school districts.

 15-2          (b)  The commissioner may adopt rules governing:

 15-3                (1)  the strategies, programs, and regions eligible for

 15-4    funding under this section; and

 15-5                (2)  the amount of money that may be distributed to a

 15-6    regional education service center for a specific purpose.

 15-7          Sec. 8.125 [8.124].  CONTRACTS FOR GRANTS.  Each regional

 15-8    education service center board of directors, under rules adopted by

 15-9    the commissioner [State Board of Education], may enter into a

15-10    contract for a grant from a public or private organization and may

15-11    spend grant funds in accordance with the terms of the contract.

15-12          SECTION 2.  Section 7.102, Education Code, is amended to read

15-13    as follows:

15-14          Sec. 7.102.  STATE BOARD OF EDUCATION POWERS AND DUTIES.

15-15    (a)  The board may perform only those duties relating to school

15-16    districts or regional education service centers assigned to the

15-17    board by the constitution of this state or by this subchapter or

15-18    another provision of this code.

15-19          (b)  The board has the [following] powers and duties provided

15-20    by Subsection (c), which shall be carried out with the advice and

15-21    assistance of the commissioner.

15-22          (c)[:](1)  The board shall develop and update a long-range

15-23    plan for public education.

15-24                (2)  The board may enter into contracts relating to or

15-25    accept grants for the improvement of educational programs

 16-1    specifically authorized by statute.

 16-2                (3)  The board may accept a gift, donation, or other

 16-3    contribution on behalf of the public school system or agency and,

 16-4    unless otherwise specified by the donor, may use the contribution

 16-5    in the manner the board determines.

 16-6                (4)  The board shall establish curriculum and

 16-7    graduation requirements.

 16-8                (5)  The board shall establish a standard of

 16-9    performance considered satisfactory on student assessment

16-10    instruments.

16-11                (6)  [The board shall adopt rules to provide for

16-12    regional education service center boards of directors as provided

16-13    by Section 8.003 and rules under which a regional education service

16-14    center may receive and spend grants under Section 8.124.]

16-15                [(7)]  The board may create special-purpose school

16-16    districts under Chapter 11.

16-17                (7) [(8)]  The board shall provide for a training

16-18    course for school district trustees under Section 11.159.

16-19                (8) [(9)]  The board shall adopt a procedure to be used

16-20    for placing on probation or revoking a home-rule school district

16-21    charter as required by Subchapter B, Chapter 12, and may place on

16-22    probation or revoke a home-rule school district charter as provided

16-23    by that subchapter.

16-24                (9) [(10)]  The board may grant an open-enrollment

16-25    charter or approve a charter revision as provided by Subchapter D,

 17-1    Chapter 12.

 17-2                (10) [(11)]  The board shall adopt rules establishing

 17-3    criteria for certifying hearing examiners as provided by Section

 17-4    21.252.

 17-5                (11) [(12)]  The board shall adopt rules to carry out

 17-6    the curriculum required or authorized under Section 28.002.

 17-7                (12) [(13)]  The board shall establish guidelines for

 17-8    credit by examination under Section 28.023.

 17-9                (13) [(14)]  The board shall adopt transcript forms and

17-10    standards for differentiating high school programs for purposes of

17-11    reporting academic achievement under Section 28.025.

17-12                (14) [(15)]  The board shall adopt guidelines for

17-13    determining financial need for purposes of the Texas Advanced

17-14    Placement Incentive Program under Subchapter C, Chapter 28, and may

17-15    approve payments as provided by that subchapter.

17-16                (15) [(16)]  The board shall adopt criteria for

17-17    identifying gifted and talented students and shall develop and

17-18    update a state plan for the education of gifted and talented

17-19    students as required under Subchapter D, Chapter 29.

17-20                (16) [(17)]  The board shall adopt rules for approving

17-21    adult education programs as required under Section 29.253 and may

17-22    establish an adult education advisory committee under Section

17-23    29.254.

17-24                (17) [(18)]  The board shall adopt rules relating to

17-25    community education development projects as required under Section

 18-1    29.257.

 18-2                (18) [(19)]  The board may approve the plan to be

 18-3    developed and implemented by the commissioner for the coordination

 18-4    of services to children with disabilities as required under Section

 18-5    30.001.

 18-6                (19) [(20)]  The board shall establish a date by which

 18-7    each school district and state institution shall provide to the

 18-8    commissioner the necessary information to determine the district's

 18-9    share of the cost of the education of a student enrolled in the

18-10    Texas School for the Blind and Visually Impaired or the Texas

18-11    School for the Deaf as required under Section 30.003 and may adopt

18-12    other rules concerning funding of the education of students

18-13    enrolled in the Texas School for the Blind and Visually Impaired or

18-14    the Texas School for the Deaf as authorized under Section 30.003.

18-15                (20) [(21)]  The board shall adopt rules prescribing

18-16    the form and content of information school districts are required

18-17    to provide concerning programs offered by state institutions as

18-18    required under Section 30.004.

18-19                (21) [(22)]  The board shall adopt rules concerning

18-20    admission of students to the Texas School for the Deaf as required

18-21    under Section 30.057.

18-22                (22) [(23)]  The board shall carry out powers and

18-23    duties related to regional day school programs for the deaf as

18-24    provided under Subchapter D, Chapter 30.

18-25                (23) [(24)]  The board shall adopt and purchase or

 19-1    license textbooks as provided by Chapter 31 and adopt rules

 19-2    required by that chapter.

 19-3                (24) [(25)]  The board shall develop and update a

 19-4    long-range plan concerning technology in the public school system

 19-5    as required under Section 32.001 and shall adopt rules and policies

 19-6    concerning technology in public schools as provided by Chapter 32.

 19-7                (25) [(26)]  The board shall conduct feasibility

 19-8    studies related to the telecommunications capabilities of school

 19-9    districts and regional education service centers as provided by

19-10    Section 32.033.

19-11                (26) [(27)]  The board shall appoint a board of

19-12    directors of the center for educational technology under Section

19-13    32.034.

19-14                (27) [(28)]  The board shall adopt rules relating to

19-15    extracurricular activities under Section 33.081 and approve,

19-16    disapprove, or modify University Interscholastic League rules and

19-17    procedures under Section 33.083.

19-18                (28) [(29)]  The board shall approve a program for

19-19    testing students for dyslexia and related disorders as provided by

19-20    Section 38.003.

19-21                (29) [(30)]  The board shall perform duties in

19-22    connection with the public school accountability system as

19-23    prescribed by Chapter 39.

19-24                (30) [(31)]  The board shall perform duties in

19-25    connection with the Foundation School Program as prescribed by

 20-1    Chapter 42.

 20-2                (31) [(32)]  The board may invest the permanent school

 20-3    fund within the limits of the authority granted by Section 5,

 20-4    Article VII, Texas Constitution, and Chapter 43.

 20-5                (32) [(33)]  The board shall adopt rules concerning

 20-6    school district budgets and audits of school district fiscal

 20-7    accounts as required under Subchapter A, Chapter 44.

 20-8                (33) [(34)]  The board shall adopt an annual report on

 20-9    the status of the guaranteed bond program and may adopt rules as

20-10    necessary for the administration of the program as provided under

20-11    Subchapter C, Chapter 45.

20-12                (34) [(35)]  The board shall prescribe uniform bid

20-13    blanks for school districts to use in selecting a depository bank

20-14    as required under Section 45.206.

20-15          (d) [(c)]  The board may adopt rules relating to school

20-16    districts or regional education service centers only as required to

20-17    carry out the specific duties assigned to the board by the

20-18    constitution or under Subsection (c) [(b)].

20-19          (e) [(d)]  An action of the board to adopt a rule under this

20-20    section is effective only if the board includes in the rule's

20-21    preamble a statement of the specific authority under Subsection (c)

20-22    [(b)] to adopt the rule.

20-23          (f) [(e)]  Except as otherwise provided by this subsection, a

20-24    rule adopted by the board under this section does not take effect

20-25    until the beginning of the school year that begins at least 90 days

 21-1    after the date on which the rule was adopted.  The rule takes

 21-2    effect earlier if the rule's preamble specifies an earlier

 21-3    effective date and the reason for that earlier date and:

 21-4                (1)  the earlier effective date is a requirement of:

 21-5                      (A)  a federal law; or

 21-6                      (B)  a state law that specifically refers to this

 21-7    section and expressly requires the adoption of an earlier effective

 21-8    date; or

 21-9                (2)  on the affirmative vote of two-thirds of the

21-10    members of the board, the board makes a finding that an earlier

21-11    effective date is necessary.

21-12          SECTION 3.  Section 39.183, Education Code, is amended to

21-13    read as follows:

21-14          Sec. 39.183.  REGIONAL AND DISTRICT LEVEL REPORT.  The agency

21-15    shall prepare and deliver to the governor, the lieutenant governor,

21-16    the speaker of the house of representatives, each member of the

21-17    legislature, the Legislative Budget Board, and the clerks of the

21-18    standing committees of the senate and house of representatives with

21-19    primary jurisdiction over the public school system a regional and

21-20    district level report covering the preceding two school years and

21-21    containing:

21-22                (1)  a summary of school district compliance with the

21-23    student/teacher ratios and class-size limitations prescribed by

21-24    Sections 25.111 and 25.112, including the number of districts

21-25    granted an exception from Section 25.112;

 22-1                (2)  a summary of the exemptions and waivers granted to

 22-2    school districts under Section 7.056 or 39.112 and a review of the

 22-3    effectiveness of each campus or district following deregulation;

 22-4    and

 22-5                (3)  an evaluation of the performance of the system of

 22-6    [a summary of the services offered by] regional education service

 22-7    centers based on the indicators adopted under Section 8.101 and

 22-8    client satisfaction with services provided under Subchapter B,

 22-9    Chapter 8 [with an evaluation of the effectiveness of those

22-10    services].

22-11          SECTION 4.  Section 59, Chapter 260, Acts of the 74th

22-12    Legislature, 1995, is repealed.

22-13          SECTION 5.  (a)  Except as provided by Subsection (b) of this

22-14    section, this Act takes effect immediately.

22-15          (b)  Section 8.121, Education Code, as amended by this Act,

22-16    takes effect September 1, 1997.

22-17          SECTION 6.  The importance of this legislation and the

22-18    crowded condition of the calendars in both houses create an

22-19    emergency and an imperative public necessity that the

22-20    constitutional rule requiring bills to be read on three several

22-21    days in each house be suspended, and this rule is hereby suspended,

22-22    and that this Act take effect and be in force according to its

22-23    terms, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 1158 passed the Senate on

         April 21, 1997, by the following vote:  Yeas 31, Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 1158 passed the House on

         May 10, 1997, by the following vote:  Yeas 117, Nays 22, one

         present not voting.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor