79(R) HB 1943 - House Committee Report version


                                                                                
79R14879 PAM-D


By:  Hegar                                                        H.B. No. 1943

Substitute the following for H.B. No. 1943:                                   

By:  Eissler                                                  C.S.H.B. No. 1943



A BILL TO BE ENTITLED

AN ACT

relating to authorizing a pilot program to permit regional 
education service centers to distribute funds directly to school 
districts for the purchase of services.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 8.051(a), Education Code, is amended to 
read as follows: 
	(a)  Except as provided by Subchapter E, each [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 2.  Section 8.103, Education Code, is amended to 
read as follows:    
	Sec. 8.103.  ANNUAL EVALUATION.  Except as provided by 
Subchapter E, the [The] commissioner shall conduct an annual 
evaluation of each executive director and regional education 
service center.  Each evaluation must include:
		(1)  an audit of the center's finances;                                       
		(2)  a review of the center's performance on the 
indicators adopted under Section 8.101;
		(3)  a review of client satisfaction with services 
provided under Subchapter B;  and
		(4)  a review of any other factor the commissioner 
determines to be appropriate.
	SECTION 3.  Section 8.121(c), Education Code, is amended to 
read as follows: 
	(c)  Each regional education service center shall use money 
distributed to it under this section:
		(1)  for the provision of core services required under 
Section 8.051;
		(2)  [or] for payment of necessary administrative and 
operational expenses of the center related to the provision of core 
[those] services required under Section 8.051; or
		(3)  as provided by Section 8.151, if the center is 
approved to operate under Subchapter E.
	SECTION 4.  Chapter 8, Education Code, is amended by adding 
Subchapter E to read as follows:

SUBCHAPTER E.  VOLUNTARY PILOT PROGRAM ESTABLISHING ALTERNATIVE

METHOD OF PROVIDING SERVICES
	Sec. 8.151.  DIRECT FUNDING TO DISTRICTS PERMITTED ON 
APPROVAL; EVALUATION.  (a)  A regional education service center 
approved by the commissioner to operate under this subchapter may 
distribute funds received under Subchapter D directly to school 
districts in the region served by the center for the purpose of 
providing the school districts the freedom to purchase curriculum 
materials, professional development services, and instructional 
technology from the center or any other service provider.
	(b)  The commissioner by rule shall establish:                          
		(1)  a procedure for regional education service centers 
to apply for approval to operate under this subchapter;
		(2)  criteria for approving or denying an application 
under this subchapter; and
		(3)  criteria for evaluating each executive director 
and regional education service center approved to operate under 
this subchapter.
	Sec. 8.152.  ANNUAL AUDIT.  (a)  At least once each year, a 
regional education service center operating under this subchapter 
shall have a fiscal audit performed by a certified public 
accountant.
	(b)  A regional education service center shall submit a copy 
of the annual audit to the commissioner for review.  The 
commissioner may:
		(1)  examine any working papers from the annual audit;  
and          
		(2)  conduct a separate audit if, after reviewing the 
independent audit, the commissioner considers a separate audit 
necessary.
	(c)  A regional education service center operating under 
this subchapter is not subject to the management processes, 
procedures, and guidelines established by and for regional 
education service centers that do not operate under this 
subchapter.
	(d)  A regional education service center operating under 
this subchapter may use management processes, procedures, and 
guidelines that are reasonable and necessary to sustain the center 
financially.
	(e)  A regional education service center operating under 
this subchapter is accountable to the school districts in the 
region served by the center and the commissioner.
	Sec. 8.153.  EXPIRATION.  This subchapter expires September 
1, 2009.  
	SECTION 5.  Effective September 1, 2009, Section 8.051(a), 
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 6.  Effective September 1, 2009, Section 8.103, 
Education Code, is amended to read as follows:
	Sec. 8.103.  ANNUAL EVALUATION.   The commissioner shall 
conduct an annual evaluation of each executive director and 
regional education service center.  Each evaluation must include:
		(1)  an audit of the center's finances;                                       
		(2)  a review of the center's performance on the 
indicators adopted under Section 8.101;
		(3)  a review of client satisfaction with services 
provided under Subchapter B;  and
		(4)  a review of any other factor the commissioner 
determines to be appropriate.
	SECTION 7.  Effective September 1, 2009, Section 8.121(c), 
Education Code, is amended to read as follows:
	(c)  Each regional education service center shall use money 
distributed to it under this section:
		(1)  for the provision of core services required under 
Section 8.051; or
		(2)  for payment of necessary administrative and 
operational expenses of the center related to the provision of core 
[those] services required under Section 8.051.
	SECTION 8.  Not later than January 1, 2006, the commissioner 
of education shall adopt rules to authorize regional education 
service centers to operate under Subchapter E, Chapter 8, Education 
Code, as added by this Act.
	SECTION 9.  (a)  The commissioner of education shall conduct 
a study to review the performance of regional education service 
centers operating under Subchapter E, Chapter 8, Education Code, as 
added by this Act.
	(b)  Not later than January 1, 2009, the commissioner of 
education shall report the results of the study to the governor, 
lieutenant governor, speaker of the house of representatives, and 
the chairs of the standing committees of each house of the 
legislature with primary jurisdiction over public education.  In 
the report, the commissioner shall:
		(1)  state the commissioner's findings and 
recommendations; and             
		(2)  identify any opportunities for legislative or 
administrative actions.  
	SECTION 10.  This Act applies beginning with the 2006-2007 
school year.      
	SECTION 11.  Except as otherwise provided by this Act, this 
Act takes effect immediately if it receives a vote of two-thirds of 
all the members elected to each house, as provided by Section 39, 
Article III, Texas Constitution.  If this Act does not receive the 
vote necessary for immediate effect, this Act takes effect 
September 1, 2005, except as otherwise provided by this Act.