78R5674 CAS-D

By:  Shapiro                                                      S.B. No. 683



A BILL TO BE ENTITLED

AN ACT

relating to annual audit of school district dropout records.                  
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Sections 39.055(a), (d), and (e), Education 
Code, are amended to read as follows:
	(a)  The board of trustees of each school district shall have 
the district's dropout records audited annually at district expense 
by a person [public accountant or certified public accountant] who:
		(1)  [is certified or registered, as appropriate, and 
licensed under Chapter 901, Occupations Code;
		[(2)]  has successfully completed training approved 
[provided] by the agency in auditing school dropout records; and
		(2) [(3)]  is not an employee of the district.        
	(d)  The district shall submit a copy of the report of the 
audit of dropout records, approved by the district's board of 
trustees, to the agency.  If the board of trustees declines or 
refuses to approve the report, the board shall file with the agency 
a copy of the report with the board's statement giving detailed 
reasons for not approving the report.  The district must submit a 
copy of the report and any statement required by this subsection not 
later than the 150th [90th] day after the last day permissible for 
resubmission of information required under Section 42.006.
	(e)  The agency shall review each report of an audit of 
dropout records.  The commissioner shall notify the board of 
trustees of a school district of any objection the commissioner has 
to the district's report, any violation of [sound accounting 
practices or of] a law or rule revealed by the report, or any 
recommendation by the commissioner concerning the report.  If the 
report reflects that a penal law has been violated, the 
commissioner shall notify the county attorney, district attorney, 
or criminal district attorney, as appropriate, and the attorney 
general.  The commissioner is entitled to access to all district 
records the commissioner considers necessary or appropriate for the 
review, analysis, or approval of a report.
	SECTION 2.  This Act takes effect September 1, 2003.