S.B. No. 929




AN ACT
relating to regional education service centers. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter A, Chapter 8, Education Code, is amended by adding Sections 8.008, 8.009, and 8.010 to read as follows: Sec. 8.008. APPLICABILITY OF CERTAIN LAWS RELATING TO POLITICAL ACTIVITIES. A regional education service center and each center employee is subject to Chapter 556, Government Code, and for purposes of that chapter: (1) the center is considered to be a state agency; and (2) each center employee is considered to be a state employee. Sec. 8.009. APPLICABILITY OF CERTAIN LAWS RELATING TO CONFLICT OF INTEREST. (a) A member of the board of directors and the executive director of a regional education service center are each considered to be a local public official for purposes of Chapter 171, Local Government Code. For purposes of that chapter a member of the board of directors and the executive director of a regional education service center are each considered to have a substantial interest in a business entity if a person related to the member or the executive director in the third degree by consanguinity or affinity, as determined under Chapter 573, Government Code, has a substantial interest in the business entity under Section 171.002, Local Government Code. (b) A regional education service center is considered to be a political subdivision for purposes of Section 131.903, Local Government Code. (c) To the extent consistent with this section, if a law described by this section applies to a school district or the board of trustees of a school district, the law applies to a regional education service center and the board of directors and executive director of a regional education service center. Sec. 8.010. SUNSET PROVISION. (a) Notwithstanding any other law, regional education service centers are subject to Chapter 325, Government Code (Texas Sunset Act). Unless continued in existence as provided by that chapter, the regional education service centers are abolished and this chapter expires September 1, 2005. Review of regional education service centers under this section shall be conducted in conjunction with review of the agency under Section 7.004. (b) To assist the Sunset Advisory Commission in its review, the comptroller shall conduct a review of the regional education service centers and report the results of the review to the commission not later than June 1, 2004. The comptroller shall consult with the commission regarding the scope of the review. The comptroller shall also transmit the report to the presiding officers of the standing committees in the senate and house of representatives responsible for public education. SECTION 2. Subchapter B, Chapter 8, Education Code, is amended by adding Section 8.056 to read as follows: Sec. 8.056. LIMITATION ON COMPENSATION FOR CERTAIN SERVICES. A regional education service center that acts as a fiscal agent or broker in connection with an agreement between two school districts under Subchapter E, Chapter 41, may not, unless authorized in writing by the district receiving transferred funds in accordance with the agreement: (1) be compensated by the districts in an amount that exceeds the administrative cost of providing the service; or (2) otherwise retain for use by the center any amount other than the compensation permitted under Subdivision (1) from the funds transferred between the districts in accordance with the agreement. SECTION 3. (a) The comptroller of public accounts shall contract with a consultant for a comprehensive audit of regional education service centers in this state. The audit must include: (1) a detailed analysis of all services provided by regional education service centers that identifies, for each service provided: (A) the percentage of school districts receiving the service; (B) the costs to the regional education service centers of providing the service; (C) the charges imposed on school districts by the regional education service centers for providing the service; and (D) the difference between the amount determined under Paragraph (B) of this subdivision and the amount determined under Paragraph (C) of this subdivision; (2) an evaluation of whether any services provided by a regional education service center could be provided at a lower cost by an alternative service provider, as determined based on a survey of potential alternative service providers; (3) an analysis of the governance structures of regional education service centers; (4) a review of the financial condition of regional education service centers and their current funding sources to determine the adequacy of state appropriations to regional education service centers and whether those appropriations should continue to be made; (5) a review of the number and geographic distribution of regional education service centers; (6) a review of the institutional structure of regional education service centers, with consideration of whether a separate system of Texas Education Agency field offices would be appropriate or whether any regional education service center functions should be transferred to Texas Education Agency facilities; and (7) an analysis of the support functions of regional education service centers to determine whether support requirements could be decreased through business processes or application redesigns. (b) Costs of the audit required by Subsection (a) of this section shall be paid using amounts appropriated for the fiscal biennium ending August 31, 2005, to regional education service centers or to the Texas Education Agency for the costs of services provided by regional education service centers, not to exceed a total amount of $750,000. (c) Not later than June 1, 2004, the comptroller of public accounts shall submit a report to the legislature concerning the results of the audit required by Subsection (a) of this section. SECTION 4. This Act takes effect September 1, 2003.
______________________________ ______________________________ President of the Senate Speaker of the House
I hereby certify that S.B. No. 929 passed the Senate on May 7, 2003, by a viva-voce vote; May 30, 2003, Senate refused to concur in House amendments and requested appointment of Conference Committee; May 31, 2003, House granted request of the Senate; June 1, 2003, Senate adopted Conference Committee Report by a viva-voce vote. ______________________________ Secretary of the Senate I hereby certify that S.B. No. 929 passed the House, with amendments, on May 28, 2003, by a non-record vote; May 31, 2003, House granted request of the Senate for appointment of Conference Committee; June 1, 2003, House adopted Conference Committee Report by a non-record vote. ______________________________ Chief Clerk of the House Approved: ______________________________ Date ______________________________ Governor