HBA-JEK S.B. 218 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 218 By: Shapiro Public Education 4/12/2001 Engrossed 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. Senate Bill 218 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 Senate Bill 218 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 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. S.B. 218 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.