By Pickett H.B. No. 580 77R3184 ESH-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to annual audits of school dropout records. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Subchapter C, Chapter 39, Education Code, is 1-5 amended by adding Section 39.055 to read as follows: 1-6 Sec. 39.055. ANNUAL AUDIT OF DROPOUT RECORDS; REPORT. 1-7 (a) The board of trustees of each school district shall have the 1-8 district's dropout records audited annually at district expense by 1-9 a public accountant or certified public accountant who: 1-10 (1) is certified or registered, as appropriate, and 1-11 licensed under Chapter 901, Occupations Code; 1-12 (2) has successfully completed training provided by 1-13 the agency in auditing school dropout records; and 1-14 (3) is not an employee of the district. 1-15 (b) The audit of dropout records must be completed following 1-16 the end of each school year. 1-17 (c) The audit of dropout records must meet at least the 1-18 minimum requirements and be in the format prescribed by the 1-19 commissioner, subject to review and comment by the state auditor. 1-20 (d) A copy of the report of the audit of dropout records, 1-21 approved by the district's board of trustees, shall be filed by the 1-22 district with the agency not later than the 120th day after the end 1-23 of the school year for which the audit was made. If the board of 1-24 trustees declines or refuses to approve the report, the board shall 2-1 file with the agency a copy of the report with the board's 2-2 statement giving detailed reasons for not approving the report. 2-3 (e) The agency shall review reports of audits of dropout 2-4 records. The commissioner shall notify the board of trustees of a 2-5 school district of any objections the commissioner has to the 2-6 report, violations of sound accounting practices or law and rule 2-7 requirements revealed by the report, or commissioner 2-8 recommendations concerning the report. If the report reflects that 2-9 penal laws have been violated, the commissioner shall notify the 2-10 county attorney, district attorney, or criminal district attorney, 2-11 as appropriate, and the attorney general. The commissioner is 2-12 entitled to access to all district records the commissioner 2-13 considers necessary and appropriate for the review, analysis, and 2-14 approval of the reports. 2-15 SECTION 2. Each school district shall have its dropout 2-16 records audited as required by Section 39.055, Education Code, as 2-17 added by this Act, beginning with dropout records for the 2001-2002 2-18 school year. 2-19 SECTION 3. Not later than February 1, 2002, the Texas 2-20 Education Agency shall: 2-21 (1) develop a training program for public accountants 2-22 and certified public accountants in auditing public school dropout 2-23 records under Section 39.055, Education Code, as added by this Act; 2-24 and 2-25 (2) make the training program readily available to 2-26 public accountants and certified public accountants throughout this 2-27 state. 3-1 SECTION 4. This Act takes effect September 1, 2001.