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