78R1253 SLO-D

By:  Swinford                                                     H.B. No. 1091



A BILL TO BE ENTITLED

AN ACT

relating to the adoption of a financial management services 
cooperatives pilot program for school districts, open-enrollment 
charter schools, and regional education service centers.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 44, Education Code, is amended by adding 
Subchapter D to read as follows:

SUBCHAPTER D.  FINANCIAL MANAGEMENT SERVICES COOPERATIVES PILOT 
PROGRAM
	Sec. 44.101.  PROGRAM ESTABLISHED.  The agency shall 
establish the financial management services cooperatives pilot 
program to:
		(1)  help individual school districts and 
open-enrollment charter schools to operate in a more efficient, 
cost-effective manner by forming financial management services 
cooperatives with other school districts or open-enrollment 
charter schools; and
		(2)  encourage school districts and open-enrollment 
charter schools to pool their resources.
	Sec. 44.102.  PILOT PROGRAM PROCEDURE.  (a) A group of school 
districts or open-enrollment charter schools may apply to the 
agency for a grant for the establishment of a financial management 
services cooperative.  The amount of a grant may not exceed 
$100,000.  The agency shall make grants to not more than 10 
applicants during the two years of the pilot program.
	(b)  The agency shall establish a procedure and develop 
criteria for awarding grants, including whether the grants should 
be awarded competitively or according to need.
	(c)  The agency may award a grant only to an applicant who 
demonstrates that the proposed cooperative would:
		(1)  involve two or more school districts or 
open-enrollment charter schools;
		(2)  significantly improve the financial services of 
the individual school districts or open-enrollment charter schools 
served by the cooperative; and
		(3)  remain financially viable over time.                              
	Sec. 44.103.  MINIMUM SIZE REQUIREMENTS.  The agency shall 
establish a minimum size requirement for each cooperative based on 
either:
		(1)  the total number of students served by the school 
districts or open-enrollment charter schools in the cooperative; or
		(2)  a minimum number of school districts or 
open-enrollment charter schools that make up the cooperative.
	Sec. 44.104.  PERMISSIBLE USES OF GRANT MONEY.  Applicants 
who receive a grant under Section 44.102 may use the grant money for 
the initial startup costs for the cooperative, including:
		(1)  one-time expenses for cooperative personnel;                      
		(2)  computer software or hardware; and                                
		(3)  other equipment that would help the cooperative 
improve financial services for the school districts or 
open-enrollment charter schools served by the cooperative.
	Sec. 44.105.  REGIONAL EDUCATION SERVICE CENTERS. A 
cooperative may include a regional education service center as a 
member of the cooperative.  A regional education service center 
that is part of a cooperative shall use any existing infrastructure 
of financial specialists to help establish and support the 
cooperative.
	Sec. 44.106.  PILOT PROGRAM CONTINUATION; EXPIRATION.  The 
agency at the end of the two-year pilot program shall review the 
program's progress and make recommendations regarding the 
continuation of the program.  The agency shall include the 
recommendations in the comprehensive annual report required by 
Section 39.182 that is issued in 2004. This subchapter expires 
September 1, 2005.
	SECTION 2.  (a) The Texas Education Agency shall adopt rules 
to implement Subchapter D, Chapter 44, Education Code, as added by 
this Act, not later than October 1, 2003.  The agency shall make the 
financial management services cooperatives pilot program available 
for participation not later than December 1, 2003.
	(b)  This Act takes effect September 1, 2003.