By:  Luna                                             S.B. No. 1158

                                A BILL TO BE ENTITLED

                                       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

1-24     services from any regional education service center; or

 2-1                 (2)  require a school district to purchase services

 2-2     from a regional education service center.

 2-3           Sec. 8.002.  PURPOSE.  [(a)]  Regional education service

 2-4     centers shall:

 2-5                 (1)  [, at the direction of the commissioner, provide

 2-6     services to] assist school districts in improving student

 2-7     performance in each region of the system;

 2-8                 (2)  enable school districts to operate more

 2-9     efficiently and economically; and

2-10                 (3)  implement initiatives assigned by the legislature

2-11     or the commissioner [increasing the efficiency and effectiveness of

2-12     school operations].

2-13           [(b)  In addition to core services a regional education

2-14     service center is required to offer under Section 8.051, a school

2-15     district or campus may purchase any other available service from

2-16     any center.]

2-17           Sec. 8.003.  GOVERNANCE.  (a)  Each regional education

2-18     service center is governed by a board of directors composed of

2-19     seven members.

2-20           (b)  The commissioner shall adopt [recommend to the State

2-21     Board of Education for adoption uniform] rules to provide for the

2-22     local selection, appointment, and continuity of membership of

2-23     regional education service center boards of directors.

2-24           (c)  A vacancy on a regional education service center board

2-25     of directors shall be filled by appointment by the remaining

2-26     members of the board for the unexpired term.

2-27           (d)  A member of the board is not entitled to compensation

 3-1     from the regional education service center but is entitled to

 3-2     reimbursement with center funds for necessary expenses incurred in

 3-3     performing duties as a board member.

 3-4           (e)  Each regional education service center board of

 3-5     directors shall develop policies to ensure the sound management and

 3-6     operation of the center consistent with Section 8.002.  Subject to

 3-7     approval of the board of directors, regional education service

 3-8     centers shall offer programs and activities to school districts and

 3-9     campuses under Sections 8.051, 8.052, and 8.053.  [The board of

3-10     directors shall be directly involved in the planning and evaluation

3-11     of programs and activities developed and offered to school

3-12     districts and campuses under Section 8.051 or 8.052.]

3-13           (f)  Each regional education service center board of

3-14     directors shall adopt an annual budget for the following year after

3-15     conducting a public hearing on the center's performance during the

3-16     preceding year on standards established by the commissioner under

3-17     Section 8.101.

3-18           Sec. 8.004.  EXECUTIVE DIRECTOR.  The regional education

3-19     service center board of directors shall employ an executive

3-20     director.  The selection and dismissal of the executive director is

3-21     subject to the approval of the commissioner.  The executive

3-22     director is the chief executive officer of the regional education

3-23     service center and may employ personnel as necessary to carry out

3-24     the functions of the center.

3-25           Sec. 8.005.  EXEMPTION FROM TAXATION.  A regional education

3-26     service center and its employees are subject to or exempt from

3-27     taxation in the same manner as a school district and school

 4-1     district employees.

 4-2           Sec. 8.006.  IMMUNITY FROM LIABILITY.  An employee or

 4-3     volunteer of a regional education service center is immune from

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

 4-5     school district.

 4-6           Sec. 8.007.  TRANSFERABILITY OF LEAVE.  (a)  A regional

 4-7     education service center shall accept personal leave accrued by a

 4-8     center employee as sick leave under state law by an employee who

 4-9     was formerly employed by the state.

4-10           (b)  A school district or the state shall accept the sick

4-11     leave accrued by an employee who was formerly employed by a

4-12     regional education service center not to exceed five days per year

4-13     for each year of employment.

4-14                      SUBCHAPTER B.  POWERS AND DUTIES

4-15           Sec. 8.051.  CORE SERVICES AND SERVICES TO IMPROVE

4-16     PERFORMANCE.  (a)  Each regional education service center shall use

4-17     funds distributed to the center under Section 8.121 to develop,

4-18     maintain, and deliver services identified under this section to

4-19     improve student and school district performance.

4-20           (b)  Each regional education service center shall annually

4-21     develop and submit to the commissioner for approval a plan for

4-22     improvement.  Each plan must include the purposes and description

4-23     of the services the center will provide to:

4-24                 (1)  campuses identified as low-performing based on the

4-25     indicators adopted under Section 39.051;

4-26                 (2)  the lowest-performing campuses in the region; and

4-27                 (3)  other campuses.

 5-1           (c)  Each regional education service center shall provide

 5-2     services that enable school districts to operate more efficiently

 5-3     and economically [for developing and maintaining core services for

 5-4     purchase by school districts and campuses.  The core services are:]

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

 5-6     area assessed under Section 39.023;]

 5-7                 [(2)  training and assistance in providing each program

 5-8     that qualifies for a funding allotment under Section 42.151,

 5-9     42.152, 42.153, or 42.156;]

5-10                 [(3)  assistance specifically designed for a school

5-11     district rated academically unacceptable under Section 39.072(a) or

5-12     a campus whose performance is considered unacceptable based on the

5-13     indicators adopted under Section 39.051;]

5-14                 [(4)  training and assistance to teachers,

5-15     administrators, members of district boards of trustees, and members

5-16     of site-based decision-making committees; and]

5-17                 [(5)  assistance in complying with state laws and

5-18     rules].

5-19           (d)  Each regional education service center shall maintain

5-20     core services for purchase by school districts and campuses.  The

5-21     core services are:

5-22                 (1)  training and assistance in teaching each subject

5-23     area assessed under Section 39.023;

5-24                 (2)  training and assistance in providing each program

5-25     that qualifies for a funding allotment under Section 42.151,

5-26     42.152, 42.153, or 42.156;

5-27                 (3)  assistance specifically designed for a school

 6-1     district rated academically unacceptable under Section 39.072(a) or

 6-2     a campus whose performance is considered unacceptable based on the

 6-3     indicators adopted under Section 39.051;

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

 6-5     administrators, members of district boards of trustees, and members

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

 6-7                 (5)  assistance in complying with state laws and rules.

 6-8           Sec. 8.052.  STATE INITIATIVES.  As directed by the

 6-9     commissioner, each regional education service center shall, as

6-10     necessary, use funds distributed under Section 8.123 to implement

6-11     initiatives identified by the legislature.

6-12           Sec. 8.053.  ADDITIONAL SERVICES.  In addition to the [core]

6-13     services provided [listed] under Section 8.051 and the initiatives

6-14     implemented under Section 8.052, a regional education service

6-15     center may offer any service requested and purchased by any school

6-16     district or campus in the state.

6-17           [Sec. 8.053.  PLANNING AND REPORTING.  Each regional

6-18     education service center shall:]

6-19                 [(1)  prepare a quantitative summary, by school

6-20     district and campus, of services delivered under Sections 8.051 and

6-21     8.052;]

6-22                 [(2)  report audited financial and performance

6-23     information using the uniform system adopted by the commissioner;

6-24     and]

6-25                 [(3)  perform any other duty the commissioner

6-26     determines is necessary under Subchapter C.]

6-27           Sec. 8.054.  PROHIBITION ON REGULATORY FUNCTION.  A regional

 7-1     education service center may not perform a regulatory function

 7-2     regarding a school district.  This section does not prohibit a

 7-3     regional education service center from offering training or other

 7-4     assistance to a school district in complying with a state or

 7-5     federal law, rule, or regulation.

 7-6           Sec. 8.055.  REGIONAL EDUCATION SERVICE CENTER PROPERTY.

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

 7-8     property or acquire property through lease-purchase and may incur

 7-9     debts for that purpose.  Any transaction under this subsection is

7-10     subject to the approval of the board of directors.

7-11           (b)  Any transaction under this subsection involving real

7-12     property is subject to the approval of the board of directors and

7-13     the commissioner.

7-14           (c)  Each regional education service center may dispose of

7-15     property in the manner and on the terms that the board of directors

7-16     determines.

7-17                SUBCHAPTER C.  EVALUATION AND ACCOUNTABILITY

7-18           Sec. 8.101.  PERFORMANCE STANDARDS AND INDICATORS.  The

7-19     commissioner shall establish performance standards and indicators

7-20     for regional education service centers that measure the achievement

7-21     of the objectives in Section 8.002.  Performance standards and

7-22     indicators must include the following:

7-23                 (1)  student performance in districts served;

7-24                 (2)  district effectiveness and efficiency in districts

7-25     served resulting from technical assistance and program support;

7-26                 (3)  direct services provided or regionally shared

7-27     services arranged by the service center which produce more

 8-1     economical and efficient school operations;

 8-2                 (4)  direct services provided or regionally shared

 8-3     services arranged by the service center which provide for

 8-4     assistance in core services; and

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

 8-6     initiatives and the results achieved by the service center under

 8-7     the terms of the grant contract.

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

 8-9     center shall report audited or budgeted financial information and

8-10     any other information requested by the commissioner for use in

8-11     assessing the performance of the center.  The commissioner shall

8-12     develop a uniform system for regional education service centers to

8-13     report audited financial data, to report information on the

8-14     indicators adopted under Section 8.101, and to provide information

8-15     on client satisfaction with services provided under Subchapter B

8-16     [and performance data].

8-17           Sec. 8.103 [8.102].  ANNUAL EVALUATION.  The commissioner

8-18     shall conduct an annual evaluation of each executive director and

8-19     regional education service center.  Each evaluation must include:

8-20                 (1)  an audit of the center's finances [and

8-21     management];

8-22                 (2)  a review of the center's performance on the

8-23     [academic excellence] indicators adopted under Section 8.101

8-24     [identified in Section 39.051 of each school district and campus in

8-25     the center's region]; [and]

8-26                 (3)  a review of client satisfaction with services

8-27     provided under Subchapter B; and

 9-1                 (4)  a review of any other factor the commissioner

 9-2     determines to be appropriate.

 9-3           Sec. 8.104 [8.103].  SANCTIONS.  The commissioner shall

 9-4     develop [recommend to the State Board of Education for approval] a

 9-5     system of corrective actions to require of a regional education

 9-6     service center that the commissioner determines to be deficient in

 9-7     an accountability measure under Section 8.103 [8.102].  The actions

 9-8     must include, in increasing order of severity:

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

9-10                 (2)  requiring the center to send notice of each

9-11     deficiency to each school district and campus in the center's

9-12     region or served by the center the previous year;

9-13                 (3) [(2)]  requiring the center to prepare for the

9-14     commissioner's approval a plan to address each area of deficiency;

9-15                 [(3)  conducting an on-site investigation of the

9-16     center;]

9-17                 (4)  appointing a master to oversee the operations of

9-18     the center;

9-19                 (5)  replacing the executive director or board of

9-20     directors; and

9-21                 (6)  in the case of deficient performance in two

9-22     consecutive years, closing the center.

9-23                           SUBCHAPTER D.  FUNDING

9-24           Sec. 8.121.  FUNDING FOR CORE SERVICES AND SERVICES TO

9-25     IMPROVE PERFORMANCE.  (a)  Regional education service centers

9-26     receive state financial support for services provided under Section

9-27     8.051 from money appropriated for [to] the Foundation School

 10-1    Program [for that purpose].  The commissioner shall distribute

 10-2    money to each regional education service center for basic costs of

 10-3    providing those [core] services according to an annual allotment

 10-4    set by the commissioner based on:

 10-5                (1)  the minimum amount of money necessary for the

 10-6    operation of a center; [and]

 10-7                (2)  an additional amount of money that reflects the

 10-8    size and number of campuses served by the center under Section

 10-9    8.051; and

10-10                (3)  an additional amount of money that reflects [the

10-11    number of students in a center's service area and] the impact of

10-12    the geographic size of a center's service area on the cost of

10-13    providing [core] services under Section 8.051.

10-14          (b)  The allotments authorized by Subsection (a) in any year

10-15    may not be less than 0.4 percent of the amount appropriated for

10-16    purposes of the Foundation School Program for that year.

10-17          (c)  Each regional education service center shall use money

10-18    distributed to it under this section for the provision of core

10-19    services required under Section 8.051 or for payment of necessary

10-20    administrative and operational expenses of the center related to

10-21    the provision of those [core] services.

10-22          Sec. 8.122.  INCENTIVE FUNDING FOR DISTRICT EFFICIENCIES.

10-23    (a)  The legislature may appropriate money from the foundation

10-24    school fund to establish an incentive fund to encourage efficiency

10-25    in the provision of services by the system of regional education

10-26    service centers.

10-27          (b)  The commissioner may submit to each regular session of

 11-1    the legislature an incentive funding report and plan that:

 11-2                (1)  demonstrates that regional education service

 11-3    centers are providing the services required or permitted by law;

 11-4                (2)  defines efficiencies of scale in measurable terms;

 11-5                (3)  proposes the size of and payment schedule for the

 11-6    incentive fund; and

 11-7                (4)  establishes a method for documenting and computing

 11-8    efficiencies.

 11-9          (c)  The commissioner shall determine the method by which

11-10    money appropriated under this section is distributed to regional

11-11    education service centers.

11-12          (d)  The board of trustees of a school district may delegate

11-13    purchasing or other administrative functions to a regional

11-14    education service center to the extent necessary to achieve

11-15    efficiencies under this section. [PERFORMANCE CONTRACTS FOR

11-16    ADDITIONAL SERVICES.  (a)  After providing for the payment of basic

11-17    costs of providing core services under Section 8.121, the

11-18    commissioner may distribute the remaining money appropriated to the

11-19    Foundation School Program and money from other sources to regional

11-20    education service centers or school districts for the costs of

11-21    providing additional services.]

11-22          [(b)  The commissioner may designate the amount of money

11-23    available for distribution under Subsection (a) and the purposes

11-24    for which the money may be used.  In determining the allocation of

11-25    money distributed under Subsection (a), the commissioner shall

11-26    consider:]

11-27                [(1)  the scope and cost-effectiveness of the services

 12-1    involved;]

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

 12-3    an area served by a regional education service center, as

 12-4    applicable; and]

 12-5                [(3)  the impact of the geographic size of a school

 12-6    district or of an area served by a regional education service

 12-7    center on the cost of providing services.]

 12-8          [(c)  As soon as possible after enactment of the General

 12-9    Appropriations Act each biennium, the commissioner shall notify

12-10    each school district and regional education service center of the

12-11    amount of money available for distribution under this section and

12-12    the purposes for which the money may be used.]

12-13          [(d)  If a school district requests direct distribution of

12-14    money under this section to provide an additional service, the

12-15    commissioner and district may enter into a performance contract

12-16    that specifies the purpose for which the money will be used and the

12-17    expected results of the expenditure.  After entering into a

12-18    performance contract with a school district, the commissioner shall

12-19    distribute to the district 90 percent of the funds available for

12-20    the service and distribute the remaining 10 percent to the regional

12-21    education service center for the region in which the district is

12-22    located.  The school district may provide the service specified in

12-23    the performance contract independently, in cooperation with one or

12-24    more other school districts, or through a contract with one or more

12-25    public or private entities, including a regional education service

12-26    center for a region other than the region in which the district is

12-27    located.]

 13-1          [(e)  If a district elects to receive an additional service

 13-2    from the regional education service center for the region in which

 13-3    the district is located, the district shall execute a performance

 13-4    contract with the center, subject to approval by the commissioner,

 13-5    that specifies the purpose for which the money will be used and the

 13-6    expected results of the expenditure.  The commissioner shall

 13-7    distribute the entire amount of money available for the service to

 13-8    the regional education service center in accordance with the

 13-9    performance contract.]

13-10          Sec. 8.123.  FUNDING FOR STATE INITIATIVES [GRANTS].

13-11    (a)  The legislature may appropriate money from the foundation

13-12    school fund or other sources to implement initiatives identified by

13-13    the legislature.

13-14          (b)  The commissioner may adopt rules governing:

13-15                (1)  the strategies, programs, projects, and regions

13-16    eligible for funding under this section; and

13-17                (2)  the amount of funds that may be distributed to a

13-18    regional education service center for a specific initiative.

13-19          Sec. 8.124.  INNOVATIVE AND EMERGENCY GRANTS.  (a)  The

13-20    legislature may appropriate money from the foundation school fund

13-21    or other sources for grants to regional education service centers.

13-22    Money appropriated under this section shall be distributed to

13-23    regional education service centers as:

13-24                (1)  competitive grants for developing and implementing

13-25    innovative regional strategies or programs; or

13-26                (2)  emergency grants for providing adequate [core]

13-27    services under Section 8.051 to small and isolated school districts

 14-1    or, in extreme circumstances, other school districts.

 14-2          (b)  The commissioner may adopt rules governing:

 14-3                (1)  the strategies, programs, and regions eligible for

 14-4    funding under this section; and

 14-5                (2)  the amount of money that may be distributed to a

 14-6    regional education service center for a specific purpose.

 14-7          Sec. 8.125 [8.124].  CONTRACTS FOR GRANTS.  Each regional

 14-8    education service center board of directors, under rules adopted by

 14-9    the commissioner [State Board of Education], may enter into a

14-10    contract for a grant from a public or private organization and may

14-11    spend grant funds in accordance with the terms of the contract.

14-12          SECTION 2.  Section 7.102, Education Code, is amended to read

14-13    as follows:

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

14-15    (a)  The board may perform only those duties relating to school

14-16    districts or regional education service centers assigned to the

14-17    board by the constitution of this state or by this subchapter or

14-18    another provision of this code.

14-19          (b)  The board has the [following] powers and duties provided

14-20    by Subsection (c), which shall be carried out with the advice and

14-21    assistance of the commissioner.

14-22          (c)[:](1)  The board shall develop and update a long-range

14-23    plan for public education.

14-24                (2)  The board may enter into contracts relating to or

14-25    accept grants for the improvement of educational programs

14-26    specifically authorized by statute.

14-27                (3)  The board may accept a gift, donation, or other

 15-1    contribution on behalf of the public school system or agency and,

 15-2    unless otherwise specified by the donor, may use the contribution

 15-3    in the manner the board determines.

 15-4                (4)  The board shall establish curriculum and

 15-5    graduation requirements.

 15-6                (5)  The board shall establish a standard of

 15-7    performance considered satisfactory on student assessment

 15-8    instruments.

 15-9                (6)  [The board shall adopt rules to provide for

15-10    regional education service center boards of directors as provided

15-11    by Section 8.003 and rules under which a regional education service

15-12    center may receive and spend grants under Section 8.124.]

15-13                [(7)]  The board may create special-purpose school

15-14    districts under Chapter 11.

15-15                (7) [(8)]  The board shall provide for a training

15-16    course for school district trustees under Section 11.159.

15-17                (8) [(9)]  The board shall adopt a procedure to be used

15-18    for placing on probation or revoking a home-rule school district

15-19    charter as required by Subchapter B, Chapter 12, and may place on

15-20    probation or revoke a home-rule school district charter as provided

15-21    by that subchapter.

15-22                (9) [(10)]  The board may grant an open-enrollment

15-23    charter or approve a charter revision as provided by Subchapter D,

15-24    Chapter 12.

15-25                (10) [(11)]  The board shall adopt rules establishing

15-26    criteria for certifying hearing examiners as provided by Section

15-27    21.252.

 16-1                (11) [(12)]  The board shall adopt rules to carry out

 16-2    the curriculum required or authorized under Section 28.002.

 16-3                (12) [(13)]  The board shall establish guidelines for

 16-4    credit by examination under Section 28.023.

 16-5                (13) [(14)]  The board shall adopt transcript forms and

 16-6    standards for differentiating high school programs for purposes of

 16-7    reporting academic achievement under Section 28.025.

 16-8                (14) [(15)]  The board shall adopt guidelines for

 16-9    determining financial need for purposes of the Texas Advanced

16-10    Placement Incentive Program under Subchapter C, Chapter 28, and may

16-11    approve payments as provided by that subchapter.

16-12                (15) [(16)]  The board shall adopt criteria for

16-13    identifying gifted and talented students and shall develop and

16-14    update a state plan for the education of gifted and talented

16-15    students as required under Subchapter D, Chapter 29.

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

16-17    adult education programs as required under Section 29.253 and may

16-18    establish an adult education advisory committee under Section

16-19    29.254.

16-20                (17) [(18)]  The board shall adopt rules relating to

16-21    community education development projects as required under Section

16-22    29.257.

16-23                (18) [(19)]  The board may approve the plan to be

16-24    developed and implemented by the commissioner for the coordination

16-25    of services to children with disabilities as required under Section

16-26    30.001.

16-27                (19) [(20)]  The board shall establish a date by which

 17-1    each school district and state institution shall provide to the

 17-2    commissioner the necessary information to determine the district's

 17-3    share of the cost of the education of a student enrolled in the

 17-4    Texas School for the Blind and Visually Impaired or the Texas

 17-5    School for the Deaf as required under Section 30.003 and may adopt

 17-6    other rules concerning funding of the education of students

 17-7    enrolled in the Texas School for the Blind and Visually Impaired or

 17-8    the Texas School for the Deaf as authorized under Section 30.003.

 17-9                (20) [(21)]  The board shall adopt rules prescribing

17-10    the form and content of information school districts are required

17-11    to provide concerning programs offered by state institutions as

17-12    required under Section 30.004.

17-13                (21) [(22)]  The board shall adopt rules concerning

17-14    admission of students to the Texas School for the Deaf as required

17-15    under Section 30.057.

17-16                (22) [(23)]  The board shall carry out powers and

17-17    duties related to regional day school programs for the deaf as

17-18    provided under Subchapter D, Chapter 30.

17-19                (23) [(24)]  The board shall adopt and purchase or

17-20    license textbooks as provided by Chapter 31 and adopt rules

17-21    required by that chapter.

17-22                (24) [(25)]  The board shall develop and update a

17-23    long-range plan concerning technology in the public school system

17-24    as required under Section 32.001 and shall adopt rules and policies

17-25    concerning technology in public schools as provided by Chapter 32.

17-26                (25) [(26)]  The board shall conduct feasibility

17-27    studies related to the telecommunications capabilities of school

 18-1    districts and regional education service centers as provided by

 18-2    Section 32.033.

 18-3                (26) [(27)]  The board shall appoint a board of

 18-4    directors of the center for educational technology under Section

 18-5    32.034.

 18-6                (27) [(28)]  The board shall adopt rules relating to

 18-7    extracurricular activities under Section 33.081 and approve,

 18-8    disapprove, or modify University Interscholastic League rules and

 18-9    procedures under Section 33.083.

18-10                (28) [(29)]  The board shall approve a program for

18-11    testing students for dyslexia and related disorders as provided by

18-12    Section 38.003.

18-13                (29) [(30)]  The board shall perform duties in

18-14    connection with the public school accountability system as

18-15    prescribed by Chapter 39.

18-16                (30) [(31)]  The board shall perform duties in

18-17    connection with the Foundation School Program as prescribed by

18-18    Chapter 42.

18-19                (31) [(32)]  The board may invest the permanent school

18-20    fund within the limits of the authority granted by Section 5,

18-21    Article VII, Texas Constitution, and Chapter 43.

18-22                (32) [(33)]  The board shall adopt rules concerning

18-23    school district budgets and audits of school district fiscal

18-24    accounts as required under Subchapter A, Chapter 44.

18-25                (33) [(34)]  The board shall adopt an annual report on

18-26    the status of the guaranteed bond program and may adopt rules as

18-27    necessary for the administration of the program as provided under

 19-1    Subchapter C, Chapter 45.

 19-2                (34) [(35)]  The board shall prescribe uniform bid

 19-3    blanks for school districts to use in selecting a depository bank

 19-4    as required under Section 45.206.

 19-5          (d) [(c)]  The board may adopt rules relating to school

 19-6    districts or regional education service centers only as required to

 19-7    carry out the specific duties assigned to the board by the

 19-8    constitution or under Subsection (c) [(b)].

 19-9          (e) [(d)]  An action of the board to adopt a rule under this

19-10    section is effective only if the board includes in the rule's

19-11    preamble a statement of the specific authority under Subsection (c)

19-12    [(b)] to adopt the rule.

19-13          (f) [(e)]  Except as otherwise provided by this subsection, a

19-14    rule adopted by the board under this section does not take effect

19-15    until the beginning of the school year that begins at least 90 days

19-16    after the date on which the rule was adopted.  The rule takes

19-17    effect earlier if the rule's preamble specifies an earlier

19-18    effective date and the reason for that earlier date and:

19-19                (1)  the earlier effective date is a requirement of:

19-20                      (A)  a federal law; or

19-21                      (B)  a state law that specifically refers to this

19-22    section and expressly requires the adoption of an earlier effective

19-23    date; or

19-24                (2)  on the affirmative vote of two-thirds of the

19-25    members of the board, the board makes a finding that an earlier

19-26    effective date is necessary.

19-27          SECTION 3.  Section 39.183, Education Code, is amended to

 20-1    read as follows:

 20-2          Sec. 39.183.  REGIONAL AND DISTRICT LEVEL REPORT.  The agency

 20-3    shall prepare and deliver to the governor, the lieutenant governor,

 20-4    the speaker of the house of representatives, each member of the

 20-5    legislature, the Legislative Budget Board, and the clerks of the

 20-6    standing committees of the senate and house of representatives with

 20-7    primary jurisdiction over the public school system a regional and

 20-8    district level report covering the preceding two school years and

 20-9    containing:

20-10                (1)  a summary of school district compliance with the

20-11    student/teacher ratios and class-size limitations prescribed by

20-12    Sections 25.111 and 25.112, including the number of districts

20-13    granted an exception from Section 25.112;

20-14                (2)  a summary of the exemptions and waivers granted to

20-15    school districts under Section 7.056 or 39.112 and a review of the

20-16    effectiveness of each campus or district following deregulation;

20-17    and

20-18                (3)  an evaluation of the performance of the system of

20-19    [a summary of the services offered by] regional education service

20-20    centers based on the indicators adopted under Section 8.101 and

20-21    client satisfaction with services provided under Subchapter B,

20-22    Chapter 8 [with an evaluation of the effectiveness of those

20-23    services].

20-24          SECTION 4.  Section 59, Chapter 260, Acts of the 74th

20-25    Legislature, 1995, is repealed.

20-26          SECTION 5.  (a)  Except as provided by Subsection (b) of this

20-27    section, this Act takes effect immediately.

 21-1          (b)  Section 8.121, Education Code, as amended by this Act,

 21-2    takes effect September 1, 1997.

 21-3          SECTION 6.  The importance of this legislation and the

 21-4    crowded condition of the calendars in both houses create an

 21-5    emergency and an imperative public necessity that the

 21-6    constitutional rule requiring bills to be read on three several

 21-7    days in each house be suspended, and this rule is hereby suspended,

 21-8    and that this Act take effect and be in force according to its

 21-9    terms, and it is so enacted.