HBA-JEK H.B. 1947 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1947
By: Smith
Public Education
4/2/2001
Introduced



BACKGROUND AND PURPOSE 

Texas has gained recognition for its public school accountability system.
Yet, currently, there is no accountability rating system for the way school
districts handle their finances.  House Bill 1947 requires the commissioner
of education to develop and implement a financial accountability rating
system. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the commissioner of education in
SECTION 1 (Section 39.204, Education Code) of this bill. 

ANALYSIS

House Bill 1947 amends the Education Code to require the commissioner of
education (commissioner) to develop and implement a financial
accountability rating system (system) for school districts that includes
uniform indicators to measure a district's financial management
performance.  The bill authorizes the Texas Education Agency to consider a
district's performance under the system when determining the district's
accreditation rating, but only after the system is fully implemented.   

H.B. 1947 requires the commissioner to develop a reporting procedure that
provides the public an opportunity to comment on the report at a hearing
and requires each school district to prepare and distribute an annual
financial management report.  The bill sets forth provisions regarding the
information to be included in the report, and requires the board of
trustees of each school district to hold a public hearing on the report and
to give notice of the hearing as described in the bill.  The bill requires
the report to be widely disseminated in the district after the hearing in
the manner prescribed by the commissioner. 

H.B. 1947 requires the commissioner to adopt rules as necessary for the
implementation and administration of the system.  The bill requires the
commissioner to implement a transitional financial accountability
management system no later than September 1 , 2002, and requires the
commissioner to fully implement the system by September 1, 2003. 

EFFECTIVE DATE

September 1, 2001.