79R3939 PAM-D

By:  Hegar                                                        H.B. No. 1943



A BILL TO BE ENTITLED

AN ACT

relating to authorizing regional education service centers to 
distribute funds directly to school districts for the purchase of 
services in certain circumstances.
	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 
Section 8.152, 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.  ALTERNATIVE METHOD OF PROVIDING SERVICES
	Sec. 8.151.  DIRECT FUNDING TO DISTRICTS PERMITTED ON 
APPROVAL.  (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 
center's region for the purpose of providing the school districts 
the freedom to purchase services 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; and
		(2)  criteria for approving or denying an application 
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 Section 8.103(1).
	Sec. 8.153.  RESEARCH AND DEVELOPMENT FUNDING.  The board of 
directors of a regional education service center operating under 
this subchapter has discretion in determining the amount of a fund 
balance the center maintains for funds designated for use as 
research and development in providing services under this chapter.  
The commissioner may not require a designated reserve fund balance 
under this section.
	Sec. 8.154.  GRANTS TO EDUCATIONAL AGENCIES OR INSTITUTIONS.  
Notwithstanding any other law, a regional education service center:
		(1)  may apply for and receive any state grant that an 
institution of higher education is authorized to apply for and 
receive; and
		(2)  is not required to collaborate with an institution 
of higher education as a condition of receiving the grant.
	SECTION 5.  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 6.  (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 7.  This Act applies beginning with the 2006-2007 
school year.       
	SECTION 8.  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.