SRC-MWN S.B. 218 77(R)BILL ANALYSIS


Senate Research CenterS.B. 218
By: Shapiro
Education
6/5/2001
Enrolled


DIGEST AND PURPOSE 

School districts lack an accountability rating system to handle their
financial resources. S.B. 218 directs the commissioner of education to
create a financial accountability rating system for school districts in
Texas. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the commissioner of education
in SECTION 1 (Section 39.204, Education Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 39I, Education Code, by adding Sections
39.201-39.204 as follows: 

 Sec. 39.201. DEFINITIONS. Defines "parent" and "system."

Sec. 39.202. DEVELOPMENT AND IMPLEMENTATION. (a)  Requires the commissioner
of education (commissioner), in consultation with the comptroller, to
develop and implement a financial accountability rating system for school
districts in this state.  

(b)  Requires the system to include uniform indicators adopted by the
commissioner by which to measure a district's financial management
performance. 

Sec. 39.203. REPORTING. (a)  Requires the commissioner to develop, as part
of the system, a reporting procedure under which certain criteria is met.  

(b)  Requires the annual financial management report to include certain
information.  

  (c)  Authorizes the report to include certain information.   

(d)  Requires the board of trustees of each school district to hold a
public hearing on the report.  Requires the board to give notice of the
hearing to owners of real property in the district and to parents of
district students.  Requires notice of the hearing to be provided, in
addition to other notice required by law, to a newspaper of general
circulation in the district; and through electronic mail to the media
serving the district.  

(e)  Requires the report to be disseminated in the district in the manner
prescribed by the commissioner after the hearing.  

Sec. 39.204. RULES. Requires the commissioner to adopt rules as necessary
for the implementation and administration of this subchapter. 

SECTION 2. Amends Section 44.008(d), Education Code, to require a copy of
the annual report, approved by the board of trustees, to be filed by the
district with the agency not later than 150th, rather  than 120th, day
after the end of the fiscal year for which the audit was made. 

SECTION 3. Effective date: September 1, 2001.

(b)  Requires the commissioner of education to implement a transitional
financial accountability management system not later than September 1,
2002.  

(c)  Requires the commissioner of education to fully implement the
financial accountability rating system prescribed by  Subchapter I, Chapter
39, Education Code, as amended by this Act, not later than September 1,
2003. 

(d)  Provides that Section 44.008, Education Code, as amended by this Act,
applies beginning with the annual audit of school districts for the
2001-2002 school year.