By Shapleigh                                          S.B. No. 1260
         77R9089 JJT-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the authority of the comptroller to conduct performance
 1-3     reviews of general academic teaching institutions.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 403.020, Government Code, is amended to
 1-6     read as follows:
 1-7           Sec. 403.020.  PERFORMANCE REVIEW OF SCHOOL DISTRICTS AND
 1-8     GENERAL ACADEMIC TEACHING INSTITUTIONS. (a)  In this section,
 1-9     "general academic teaching institution" has the meaning assigned by
1-10     Section 61.003, Education Code.
1-11           (b)  The comptroller may periodically review the
1-12     effectiveness and efficiency of the budgets and operations of:
1-13                 (1)  school districts; and
1-14                 (2)  general academic teaching institutions.
1-15           (c)  A review of a school district may be initiated by the
1-16     comptroller or by the request of the [school] district. A review of
1-17     a general academic teaching institution may be initiated by the
1-18     comptroller, by the Texas Higher Education Coordinating Board, or
1-19     by the request of the institution.
1-20           (d)  A review may be initiated by a school district only by
1-21     resolution adopted by a majority of the members of the board of
1-22     trustees of the district.  A review may be initiated by a general
1-23     academic teaching institution only at the request of the president
1-24     of the institution or by a resolution adopted by a majority of the
 2-1     governing board of the institution.
 2-2           (e) [(b)]  If a review is initiated by the school district or
 2-3     general academic teaching institution, the district or institution
 2-4     shall pay 25 percent of the cost incurred in conducting the review.
 2-5           (f)  A review of a general academic teaching institution
 2-6     under this section must include review of the institution's:
 2-7                 (1)  fiscal operations;
 2-8                 (2)  management;
 2-9                 (3)  student services; and
2-10                 (4)  curriculum.
2-11           (g) [(c)]  The comptroller shall:
2-12                 (1)  prepare a report showing the results of each
2-13     review conducted under this section;
2-14                 (2)  file the report with:
2-15                       (A)  the school district or general academic
2-16     teaching institution that is the subject of the report;
2-17                       (B) [,]  the governor;
2-18                       (C) [,]  the lieutenant governor;
2-19                       (D) [,]  the speaker of the house of
2-20     representatives;
2-21                       (E) [,]  the chairs of the standing committees of
2-22     the senate and of the house of representatives with jurisdiction
2-23     over public education;
2-24                       (F)  the commissioner of higher education, if a
2-25     general academic teaching institution is the subject of the report;
2-26     [,] and
2-27                       (G)  the commissioner of education, if a school
 3-1     district is the subject of the report; and
 3-2                 (3)  make the entire report and a summary of the report
 3-3     available to the public on the Internet.
 3-4           SECTION 2.  This Act takes effect immediately if it receives
 3-5     a vote of two-thirds of all the members elected to each house, as
 3-6     provided by Section 39, Article III, Texas Constitution.  If this
 3-7     Act does not receive the vote necessary for immediate effect, this
 3-8     Act takes effect September 1, 2001.