78(R) SB 929 - Senate Committee Report version


                                                                                


By:  Shapiro                                                      S.B. No. 929
	(In the Senate - Filed March 6, 2003; March 11, 2003, read 
first time and referred to Committee on Education; May 2, 2003, 
reported adversely, with favorable Committee Substitute by the 
following vote:  Yeas 6, Nays 3; May 2, 2003, sent to printer.)


COMMITTEE SUBSTITUTE FOR S.B. No. 929                                    By:  Shapiro


A BILL TO BE ENTITLED

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 Section 8.008 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.      
	SECTION 2.  Subsection (a), Section 8.051, Education Code, 
is amended to read as follows:
	(a)  Each regional education service center shall [use funds 
distributed to the center under Section 8.121 to] develop, 
maintain, and deliver services identified under this section to 
improve student and school district performance.
	SECTION 3.  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 4.  Section 8.121, Education Code, is amended to 
read as follows:    
	Sec. 8.121.  STATE FUNDING [FOR CORE SERVICES AND SERVICES 
TO IMPROVE PERFORMANCE].  (a)  [Regional education service centers 
receive state financial support for services provided under Section 
8.051 from money appropriated for the Foundation School Program.]  
The commissioner may not use [shall distribute] money appropriated 
for the Foundation School Program to provide regional education 
service centers with financial support for services provided under 
Section 8.051 [each regional education service center for basic 
costs of providing those services according to an annual allotment 
set by the commissioner based on:
		[(1)  the minimum amount of money necessary for the 
operation of a center;
		[(2)  an additional amount of money that reflects the 
size and number of campuses served by the center under Section 
8.051; and
		[(3)  an additional amount of money that reflects the 
impact of the geographic size of a center's service area on the cost 
of providing services under Section 8.051].
	(b)  Except as provided by Subsection (c), any money 
appropriated by the legislature for services described by Section 
8.051 and provided by regional education service centers or other 
providers must be distributed directly to school districts for use 
by the districts in obtaining the services from centers or other 
providers.  The commissioner shall determine the method by which 
money appropriated under this section is distributed.
	(c)  A school district may authorize the commissioner to 
distribute directly to a regional education service center the 
amount of funds that would otherwise be distributed to the district 
in accordance with Subsection (b).  The district may rescind its 
authorization at any time, and the commissioner shall promptly 
resume distributing funds directly to the district [Each regional 
education service center shall use money distributed to it under 
this section for the provision of core services required under 
Section 8.051 or for payment of necessary administrative and 
operational expenses of the center related to the provision of 
those services].
	SECTION 5.  (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 December 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.  
The report must include recommendations for a regional education 
service center funding mechanism under which at least 80 percent of 
center funds are derived from fee-for-service contracts with school 
districts.
	SECTION 6.  This Act takes effect September 1, 2003.                           



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