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Floor Packet Page No. 34
Amend CSHB 1 by adding a new Article 2 to the bill and
renumbering subsequent articles accordingly:
ARTICLE 2. FISCAL ACCOUNTABILITY
SECTION 2.01. Chapter 1, Education Code, is amended by
adding Section 1.005 to read as follows:
Sec. 1.005. EDUCATION RESEARCH CENTERS; SHARING STUDENT
INFORMATION. (a) In this section, "center" means a center for
education research authorized by this section.
(b) The commissioner of education and the commissioner of
higher education may establish not more than three centers for
education research for conducting research described by
Subsections (e) and (f).
(c) A center may be established as part of:
(1) the Texas Education Agency;
(2) the Texas Higher Education Coordinating Board; or
(3) a public junior college, public senior college or
university, or public state college, as those terms are defined by
Section 61.003.
(d) A center may be operated under a memorandum of
understanding between the commissioner of education, the
commissioner of higher education, and the governing board of an
educational institution described by Subsection (c)(3). The
memorandum of understanding must require the commissioner of
education, or a person designated by the commissioner, and the
commissioner of higher education, or a person designated by the
commissioner, to provide direct, joint supervision of the center
under this section.
(e) A center shall conduct research for the benefit of
education in this state, including research relating to the impact
of state and federal education programs, the performance of
educator preparation programs, public school finance, and the best
practices of school districts with regard to classroom instruction,
bilingual education programs, special language programs, and
business practices.
(f) The commissioner of education and the commissioner of
higher education:
(1) under the memorandum of understanding described by
Subsection (d), may require a center to conduct certain research
projects considered of particular importance to the state, as
determined by the commissioners; and
(2) not later than the 45th day before the date a
research project required to be conducted under this subsection is
scheduled to begin, shall notify the governor, the Legislative
Budget Board, and the governing body of the educational institution
in which the center is established that the research project is
required.
(g) In conducting research under this section, a center:
(1) may use data on student performance, including
data that is confidential under the Family Educational Rights and
Privacy Act of 1974 (20 U.S.C. Section 1232g), the center has
collected from the Texas Education Agency, the Texas Higher
Education Coordinating Board, the Educators' Professional
Practices Board, any public or private institution of higher
education, and any school district; and
(2) shall comply with rules adopted by the
commissioner of education and the commissioner of higher education
to protect the confidentiality of student information, including
rules establishing procedures to ensure that confidential student
information is not duplicated or removed from a center in an
unauthorized manner.
(h) The commissioner of education and the commissioner of
higher education may:
(1) accept gifts and grants to be used in operating one
or more centers; and
(2) by rule impose reasonable fees, as appropriate,
for the use of a center's research, resources, or facilities.
(i) This section does not authorize the disclosure of
student information that may not be disclosed under the Family
Educational Rights and Privacy Act of 1974 (20 U.S.C. Section
1232g).
(j) The commissioner of education and the commissioner of
higher education shall adopt rules as necessary to implement this
section.
(k) In implementing this section, the commissioner of
education may use funds appropriated to the agency and available
for that purpose, including Foundation School Program funds.
SECTION 2.02. Subchapter A, Chapter 7, Education Code, is
amended by adding Sections 7.008 and 7.009 to read as follows:
Sec. 7.008. PUBLIC ACCESS TO PEIMS DATA. (a) The
commissioner with the assistance of an advisory panel described by
Subsection (b) shall develop a request for proposal for a qualified
third-party contractor to develop and implement procedures to make
available, through the agency Internet website, all financial and
academic performance data submitted through the Public Education
Information Management System (PEIMS) for school districts and
campuses.
(b) The commissioner shall appoint an advisory panel to
assist the commissioner in developing requirements for a system
that is easily accessible by the general public and contains
information of primary relevance to the public. The advisory panel
shall consist of:
(1) educators;
(2) interested stakeholders;
(3) business leaders; and
(4) other interested members of the public.
(c) The procedures developed under this section must
provide:
(1) a summarized format easily understood by the
public for reporting financial and academic performance
information on the agency Internet website; and
(2) the ability for those who access the Internet
website to view and download state, district, and campus level
information.
(d) This section does not authorize the disclosure of
student information that may not be disclosed under the Family
Educational Rights and Privacy Act of 1974 (20 U.S.C. Section
1232g). The commissioner shall adopt rules to protect the
confidentiality of student information.
(e) The procedures to make available, through the agency
Internet website, all financial and academic performance
information for school districts and campuses as described by this
section shall be implemented not later than August 1, 2007. This
subsection expires August 1, 2009.
Sec. 7.009. BEST PRACTICES; CLEARINGHOUSE. (a) In
coordination with the Legislative Budget Board, the agency shall
establish an online clearinghouse of information relating to best
practices of campuses and school districts regarding instruction,
public school finance, resource allocation, and business
practices. To the extent practicable, the agency shall ensure that
information provided through the online clearinghouse is specific,
actionable information relating to the best practices of
high-performing and highly efficient campuses and school districts
rather than general guidelines relating to campus and school
district operation. The information must be accessible by campuses,
school districts, and interested members of the public.
(b) The agency shall solicit and collect from the
Legislative Budget Board, centers for education research
established under Section 1.005, and exemplary or recognized school
districts and open-enrollment charter schools, as rated under
Section 39.072, examples of best practices relating to instruction,
public school finance, resource allocation, and business
practices, including best practices relating to curriculum, scope
and sequence, compensation and incentive systems, bilingual
education and special language programs, compensatory education
programs, and the effective use of instructional technology,
including online courses.
(c) The agency shall contract for the services of one or
more third-party contractors to develop, implement, and maintain a
system of collecting and evaluating the best practices of campuses
and school districts as provided by this section. In addition to
any other considerations required by law, the agency must consider
an applicant's demonstrated competence and qualifications in
analyzing campus and school district practices in awarding a
contract under this subsection.
(d) The commissioner may purchase from available funds
curriculum and other instructional tools identified under this
section to provide for use by school districts.
SECTION 2.03. Subchapter C, Chapter 7, Education Code, is
amended by adding Section 7.061 to read as follows:
Sec. 7.061. FUNDING FOR CERTAIN PURPOSES. (a) The
commissioner, to the extent not specifically prohibited by state or
federal law, shall use federal funds, including consolidated
administrative or innovative program funds, for the purposes
described by Sections 1.005, 7.008, 7.009, and 44.0061.
(b) To the extent federal funds are not sufficient for the
purposes described by Subsection (a), the commissioner may set
aside funds from the Foundation School Program to fund the
remaining balance.
SECTION 2.04. Subchapter A, Chapter 11, Education Code, is
amended by adding Section 11.003 to read as follows:
Sec. 11.003. ADMINISTRATIVE EFFICIENCY. (a) Not later
than December 1, 2006, the commissioner shall evaluate the
feasibility of including a uniform indicator under Section
39.202(b) that measures effective administrative management
through the use of cooperative shared services arrangements. If
the commissioner determines that the adoption of a uniform
indicator described by this subsection is feasible, the
commissioner by rule shall include the indicator in the financial
accountability rating system under Subchapter I, Chapter 39, for
school districts beginning with the 2007-2008 school year. This
subsection expires September 1, 2009.
(b) Each regional education service center shall:
(1) notify each school district served by the center
regarding the opportunities available through the center for
cooperative shared services arrangements within the center's
service area; and
(2) evaluate the need for cooperative shared services
arrangements within the center's service area and consider
expanding center-sponsored cooperative shared services
arrangements.
(c) Each regional education service center shall assist a
school district board of trustees in entering into an agreement
with another district or political subdivision, a regional
education service center, or an institution of higher education as
defined by Section 61.003, for a cooperative shared services
arrangement regarding administrative services, including
transportation, food service, purchasing, and payroll functions.
(d) The commissioner may require a district or an
open-enrollment charter school to enter into an agreement for a
cooperative shared services arrangement if the commissioner
determines that the financial management performance of the
district or school is unsatisfactory.
SECTION 2.05. Subchapter A, Chapter 44, Education Code, is
amended by adding Section 44.0041 to read as follows:
Sec. 44.0041. PUBLICATION OF SUMMARY OF PROPOSED BUDGET.
(a) Concurrently with the publication of notice of the budget under
Section 44.004, a school district shall post a summary of the
proposed budget:
(1) on the school district's Internet website; or
(2) if the district has no Internet website, in the
district's central administrative office.
(b) The budget summary must include:
(1) information relating to per student and aggregate
spending on:
(A) instruction;
(B) instructional support;
(C) central administration;
(D) district operations;
(E) debt service; and
(F) any other category designated by the
commissioner; and
(2) a comparison to the previous year's actual
spending.
SECTION 2.06. Subchapter A, Chapter 44, Education Code, is
amended by adding Section 44.0061 to read as follows:
Sec. 44.0061. REVIEW OF ACCOUNTING SYSTEM. (a) The
commissioner shall contract with a qualified third-party
contractor to conduct a comprehensive review of the accounting
systems used by school districts under Section 44.007.
(b) The third-party contractor conducting the review under
this section shall:
(1) provide any recommendations relating to the
accounting systems to:
(A) improve the transparency of district
spending behavior;
(B) provide more thorough information relating
to campus spending; and
(C) facilitate program evaluations, including
evaluations of compensatory education programs; and
(2) evaluate the accounting systems to determine
whether any reporting requirements should be adjusted based on
district size.
(c) Before January 1, 2007, the commissioner shall submit a
report to the legislature describing the results of the review
conducted under this section.
(d) This section expires January 2, 2007.
SECTION 2.07. Subchapter A, Chapter 44, Education Code, is
amended by adding Section 44.011 to read as follows:
Sec. 44.011. SPENDING TARGETS FOR DISTRICT EXPENDITURES.
(a) The commissioner shall annually establish and publish the
proposed expenditures for each school district as determined by the
commissioner based on an evaluation of information relating to the
best practices of campuses and districts as described by Section
7.009. The commissioner shall consider unique characteristics of
the district, including the district's size.
(b) The proposed expenditures to be determined as required
by Subsection (a) must include amounts for:
(1) instructional expenditures;
(2) central administrative expenditures;
(3) district operations; and
(4) any other category designated by the commissioner.
(c) If the board of trustees of a school district intends to
exceed the proposed expenditures established by the commissioner
under this section, the board must adopt and publish a resolution
that includes an explanation justifying the board's actions.