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.