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


Senate Research Center   S.B. 218
77R2149 CAS-FBy: Shapiro
Education
1/30/2001
As Filed


DIGEST AND PURPOSE 

Currently, school districts lack an accountability rating system to handle
their financial resources. As proposed, 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. Requires the commissioner of
education (commissioner) to develop and implement a financial
accountability rating system for school districts in this state. 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. Requires the commissioner to develop, as part of
the system, a reporting procedure under which each school district is
required to prepare and distribute an annual financial management report;
and the public is provided an opportunity to comment on the report at a
hearing. Requires the annual financial management report to include a
description of the district's financial management performance based on a
comparison, provided by the Texas Education Agency (agency), of the
district's performance on the indicators adopted under Section 39.202(b) to
state-established standards; and the district's previous performance on the
indicators; and any descriptive information required by the commissioner.
Authorizes the report to include certain information, including any other
information the board determines to be necessary or useful. 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. Requires the report to
be widely 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 39.073(e), Education Code, to provide that in
determining a district's accreditation rating, the agency is required to
consider the district's current special education compliance status with
the agency; and is authorized to consider the district's performance under
the  financial accountability rating system prescribed by Subchapter I. 

SECTION 3. Effective date: September 1, 2001.

Requires the commissioner of education to implement a transitional
financial accountability management system not later than September 1,
2002. 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. Prohibits the commissioner, notwithstanding Section 39.073(e),
Education Code, as amended by this Act, to include a district's performance
under the financial accountability rating system until that system is fully
implemented.