By: Shapiro S.B. No. 875
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the financial accountability of school districts.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Chapter 39, Education Code, is amended by adding
1-4 Subchapter I to read as follows:
1-5 SUBCHAPTER I. FINANCIAL ACCOUNTABILITY
1-6 Sec. 39.201. FINANCIAL ACCOUNTABILITY RATING SYSTEM.
1-7 (a) The commissioner by rule shall establish a financial
1-8 accountability rating system for school districts, to be
1-9 implemented beginning in the 2001-2002 school year, based on:
1-10 (1) the findings of a district's annual audit report
1-11 under Section 44.008;
1-12 (2) the agency's review of a district's annual audit
1-13 report under Section 44.008(e); and
1-14 (3) quantitative performance data relating to a
1-15 district collected through the Public Education Information
1-16 Management System (PEIMS) established under Section 42.006.
1-17 (b) The financial accountability rating system shall compare
1-18 the performance of each school district on financial excellence
1-19 indicators with standards established by the commissioner.
1-20 (c) The commissioner shall in consultation with the
1-21 comptroller develop and implement the financial accountability
1-22 rating system.
1-23 Sec. 39.202. ANNUAL REPORTS. (a) Each year, starting with
1-24 the 2002-2003 school year, the agency shall prepare and distribute
2-1 to each school district a report that rates the district's prior
2-2 year performance on the financial excellence indicators. The
2-3 report shall include the recommendations of the commissioner under
2-4 Section 44.008(e) and other appropriate recommendations.
2-5 (b) The board of trustees shall disseminate and publicize
2-6 the report in accordance with the rules of the commissioner.
2-7 (c) The report may be combined with other reports and
2-8 financial statements, including other reports under this chapter.
2-9 SECTION 2. Subsection (e), Section 44.008, Education Code,
2-10 is amended to read as follows:
2-11 (e) The audit reports shall be reviewed by the agency, and
2-12 the commissioner shall notify the board of trustees of objections,
2-13 violations of sound accounting practices or law and regulation
2-14 requirements, or of recommendations concerning the audit reports
2-15 that the commissioner wants to make. If the audit report reflects
2-16 that penal laws have been violated, the commissioner shall notify
2-17 the appropriate county or district attorney, who shall thoroughly
2-18 investigate, and the attorney general. The commissioner shall have
2-19 access to all vouchers, receipts, district fiscal and financial
2-20 records, and other school records as the commissioner considers
2-21 necessary and appropriate for the review, analysis, and passing on
2-22 audit reports. Beginning with the 2000-2001 school year, school
2-23 districts shall make available to the agency their complete audited
2-24 annual financial reports and management letters in an electronic
2-25 format to be determined by the commissioner. The commissioner may
2-26 waive this requirement if it will unduly burden a district.
3-1 SECTION 3. Section 402.028, Government Code, is amended by
3-2 adding Subsection (d) to read as follows:
3-3 (d) The attorney general shall ensure that prosecuting
3-4 attorneys and the general public are aware of the availability of
3-5 assistance under this section, including assistance in the
3-6 investigation and prosecution of crimes involving public school
3-7 funds.
3-8 SECTION 4. This Act takes effect September 1, 1999.
3-9 SECTION 5. The importance of this legislation and the
3-10 crowded condition of the calendars in both houses create an
3-11 emergency and an imperative public necessity that the
3-12 constitutional rule requiring bills to be read on three several
3-13 days in each house be suspended, and this rule is hereby suspended,
3-14 and that this Act take effect and be in force from and after its
3-15 passage, and it is so enacted.