By Smith H.B. No. 1947
77R2149 CAS-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to a financial accountability rating system for school
1-3 districts.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter I, Chapter 39, Education Code, is
1-6 amended by adding Sections 39.201-39.204 to read as follows:
1-7 Sec. 39.201. DEFINITIONS. In this subchapter:
1-8 (1) "Parent" includes a guardian or other person
1-9 having lawful control of a student.
1-10 (2) "System" means the financial accountability rating
1-11 system.
1-12 Sec. 39.202. DEVELOPMENT AND IMPLEMENTATION. (a) The
1-13 commissioner shall develop and implement a financial accountability
1-14 rating system for school districts in this state.
1-15 (b) The system must include uniform indicators adopted by
1-16 the commissioner by which to measure a district's financial
1-17 management performance.
1-18 Sec. 39.203. REPORTING. (a) The commissioner shall develop,
1-19 as part of the system, a reporting procedure under which:
1-20 (1) each school district is required to prepare and
1-21 distribute an annual financial management report; and
1-22 (2) the public is provided an opportunity to comment
1-23 on the report at a hearing.
1-24 (b) The annual financial management report must include:
2-1 (1) a description of the district's financial
2-2 management performance based on a comparison, provided by the
2-3 agency, of the district's performance on the indicators adopted
2-4 under Section 39.202(b) to:
2-5 (A) state-established standards; and
2-6 (B) the district's previous performance on the
2-7 indicators; and
2-8 (2) any descriptive information required by the
2-9 commissioner.
2-10 (c) The report may include:
2-11 (1) information concerning the district's:
2-12 (A) financial allocations;
2-13 (B) tax collections;
2-14 (C) financial strength;
2-15 (D) operating cost management;
2-16 (E) personnel management;
2-17 (F) debt management;
2-18 (G) facility acquisition and construction
2-19 management;
2-20 (H) cash management;
2-21 (I) budgetary planning;
2-22 (J) overall business management;
2-23 (K) compliance with rules; and
2-24 (L) data quality; and
2-25 (2) any other information the board of trustees
2-26 determines to be necessary or useful.
2-27 (d) The board of trustees of each school district shall hold
3-1 a public hearing on the report. The board shall give notice of the
3-2 hearing to owners of real property in the district and to parents
3-3 of district students. In addition to other notice required by law,
3-4 notice of the hearing must be provided:
3-5 (1) to a newspaper of general circulation in the
3-6 district; and
3-7 (2) through electronic mail to media serving the
3-8 district.
3-9 (e) After the hearing, the report shall be widely
3-10 disseminated in the district in the manner prescribed by the
3-11 commissioner.
3-12 Sec. 39.204. RULES. The commissioner shall adopt rules as
3-13 necessary for the implementation and administration of this
3-14 subchapter.
3-15 SECTION 2. Section 39.073(e), Education Code, is amended to
3-16 read as follows:
3-17 (e) In determining a district's accreditation rating, the
3-18 agency:
3-19 (1) shall consider the district's current special
3-20 education compliance status with the agency; and
3-21 (2) may consider the district's performance under the
3-22 financial accountability rating system prescribed by Subchapter I.
3-23 SECTION 3. (a) This Act takes effect September 1, 2001.
3-24 (b) The commissioner of education shall implement a
3-25 transitional financial accountability management system not later
3-26 than September 1, 2002.
3-27 (c) The commissioner of education shall fully implement the
4-1 financial accountability rating system prescribed by Subchapter I,
4-2 Chapter 39, Education Code, as amended by this Act, not later than
4-3 September 1, 2003.
4-4 (d) Notwithstanding Section 39.073(e), Education Code, as
4-5 amended by this Act, the commissioner may not include a district's
4-6 performance under the financial accountability rating system until
4-7 that system is fully implemented.