HBA-MPM H.B. 1617 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1617 By: Uher Public Education 4/20/1999 Introduced BACKGROUND AND PURPOSE The Communities in Schools program (program) is a state-sponsored youth dropout prevention program. The program is administered by a state administrator. Responsibilities of the state administrator include coordinating the efforts of social service organizations and agencies and of public school personnel to provide services to students who are at risk of dropping out of school or engaging in delinquent conduct, setting standards for the Communities in Schools program, and obtaining information from each participating school district to determine necessary program changes, among other enumerated duties. In addition to the efforts of the state administrator, the Texas Education Agency and the Texas Workforce Commission are required to work together to maximize the effectiveness of the program by developing and agreeing to a memorandum of understanding to define the responsibilities of each agency. Under the memorandum, the commission must outline its role in encouraging local business to participate in local Communities in Schools programs, and the agency must define its role in obtaining information from participating school districts. An elementary or secondary school is required to participate in the program if the number of students enrolled in the school who are at risk of dropping out of school is equal to at least 10 percent of the number of students in average daily attendance at the school, as determined by the agency. Funding for the program determines participation. The state coordinator is required to implement a formula for the funding of Communities in Schools campuses that reduces, over a five-year period beginning September 1, 1996, the funds annually contributed by the state to an amount not less than 50 percent of the amount contributed by the state for funding of the program in the first year of the 1996-97 state fiscal biennium. The formula must consider the financial resources of individual communities and school districts. Savings accomplished through the implementation of the formula are authorized to be used to extend participation in the program to additional campuses in counties or cities that are participating in the program and to campuses in counties and cities that have not previously participated in the program. Likewise, each local program is required to develop a fiveyear funding plan. H.B. 1617 transfers the administration of the Communities in Schools program from the Labor Code to the Family Code. Accordingly, certain functions are transferred from one state agency to another. For example, the executive director of the Department of Protective and Regulatory Services (department), rather than the executive director of the Texas Workforce Commission, must designate a state director for the program. The department, rather than the commission, is now required to work with the Texas Education Agency to maximize the effectiveness of the program by developing and agreeing to a memorandum of understanding to define the responsibilities of each agency. In addition, this bill expands the reach of the program. For example, the state director is required to coordinate the efforts of social service organizations and agencies and of public school personnel to provide services to students who are in family conflict or emotional crisis, including those who are at risk of dropping out of school or engaging in delinquent conduct. Previously, only kids who were at risk of dropping out of school were the target of the program. New duties of the state director include establishing state performance goals, objectives, and measures, and providing training and technical assistance, rather than training a program director, for participating communities. In addition, this bill replaces the current funding formula with the mandate that the state director develop, as well as implement, a formula for the funding of local programs. The new formula is authorized to provide for the reduction of funds annually contributed by the state to a local program by an amount not more, rather than not less, than 50 percent of the amount contributed for the first year of the program. In addition, no longer must a local program develop a five-year plan. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that the rulemaking authority previously delegated to the Texas Workforce Commission in Chapter 305, Labor Code, is transferred to the Department of Protective and Regulatory Services in SECTION 4 of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 305, Labor Code, by transferring it to Chapter 264, Family Code, redesignating it as Subchapter I, Chapter 264, Family Code, and amending it as follows: New title: SUBCHAPTER I. COMMUNITIES IN SCHOOLS PROGRAM Sec. 264.751. DEFINITIONS. Redesignated from existing Section 305.001, Labor Code. Defines "delinquent conduct" and "student at risk of dropping out of school." Changes the title of the program to "Communities In Schools program" from "Communities in Schools program." Makes conforming and nonsubstantive changes. Sec. 264.752. STATEWIDE OPERATION OF PROGRAM. Redesignated from existing Section 305.002, Labor Code. Makes a nonsubstantive change. Sec. 264.753. New title: STATE DIRECTOR. Redesignated from existing Section 305.011, Labor Code. Requires the executive director of the Department of Protective and Regulatory Services (department), rather than the executive director of the Texas Workforce Commission (commission), to designate, rather than appoint, a state director, rather than coordinator, for the Communities In Schools program (program). Makes conforming and nonsubstantive changes. Sec. 264.754. New title: DUTIES OF STATE DIRECTOR. Redesignated from existing Section 305.012, Labor Code. Includes students who are in family conflict or emotional crisis among those at-risk students who may receive services from social service organizations and agencies and of public school personnel. Requires the state director to establish state performance goals, objectives, and measures for the program and to provide training and technical assistance for participating communities, among other duties. Makes conforming and nonsubstantive changes. Sec. 264.755. AGENCY COOPERATION; MEMORANDUM OF UNDERSTANDING. Redesignated from existing Section 305.013, Labor Code. Requires the Texas Education Agency (agency) and the department, rather than the agency and the commission to develop and mutually agree to a memorandum of understanding to clearly define the responsibilities of each agency under this subchapter. Makes conforming and nonsubstantive changes. Sec. 264.756. NEW TITLE: FUNDING; EXPANSION OF PARTICIPATION. Redesignated from existing Section 305.021, Labor Code. (a) Requires the director to develop, as well as implement, a formula for the funding of programs. Authorizes the formula to provide for the reduction of funds annually contributed by the state to a local program by an amount not more than 50 percent of the amount contributed for the first year of the program. Deletes the provision that requires the coordinator, in order to determine participation in the second year of the 1996-97 state fiscal biennium and subsequent years, to implement a formula for the funding of Communities in Schools campuses that reduces, over a five-year period beginning September 1, 1996, the funds annually contributed by the state to an amount not less than 50 percent of the amount contributed by the state for funding of the program in the first year of the 1996-97 state fiscal biennium. Provides that savings accomplished through the implementation of the formula may be used to extend participation in a local program, rather than "the program," to additional campuses designated by the director in municipalities, as well as counties, that participate in a local program. Further states that savings may be used to extend participation in campuses designated by the director in counties and municipalities that previously have not participated in a local program. Makes conforming changes. (b) Requires each program to develop a funding plan, rather than a five-year funding plan, for campuses located in the county or municipality that participates in the program under which levels of service to those campuses are maintained if state funding is reduced, rather than as the proportion of state funding is reduced. (c) Makes conforming and nonsubstantive changes. Sec. 264.757. PARTICIPATION IN PROGRAM. Redesignated from existing Section 305.022, Labor Code. Makes conforming and nonsubstantive changes. Sec. 264.758. DONATIONS TO PROGRAM. Redesignated from existing Section 305.031, Labor Code. Deletes the requirement that donations must be accepted in an open meeting by a majority of the voting members of the commission. Makes conforming and nonsubstantive changes. SECTION 2. Amends Section 302.021(a), Labor Code, by deleting the Communities in Schools program, the inmate employment counseling program under Section 499.051(f) (Miscellaneous Programs), Government Code (repealed), and a literacy program from funds available to the state under Section 481.026 (regarding the Texas Literary Council), Government Code (repealed), from those programs and functions that are consolidated under the authority of the division. Redesignates existing Subdivision (11) to Subdivision (10), and existing Subdivision (13) to Subdivision (11). Redesignates existing Subdivision (15) to Subdivision (12). Redesignates existing Subdivisions (16) - (20) to Subdivisions (13) - (17). SECTION 3. Amends Section 302.062(g), Labor Code, to make block grant funding inapplicable to the Communities In Schools program under Subchapter I, Chapter 264, Family Code, to the extent that funds are available to the commission for that program. Makes conforming and nonsubstantive changes. Redesignates existing Subdivisions (8) - (15) to Subdivisions (7) - (14). SECTION 4. (a) Provides that on September 1, 1999, the following is transferred or assigned from the Texas Workforce Commission to the Department of Protective and Regulatory Services: _all powers, duties, functions, and activities relating to the Communities In Schools program assigned to or performed by the commission immediately before September 1, 1999, _all funds, obligations, and contracts of the commission related to the program, _all property and records in the commission's custody related to the program and all funds appropriated by the legislature for the program, and _all employees of the commission who primarily perform duties related to the program. (b) Provides that for the 1999 and 2000 state fiscal years, the number of employees transferred to the department is not included in determining compliance with any limitation on the number of full-time equivalent positions (FTEs) imposed by the General Appropriations Act. (c) Provides that a reference in law or administrative rule to the commission that relates to the program means the department, and that reference to the executive director of the commission that relates to the program means the executive director of the department. (d) Provides that a rule of the commission relating to the program is in effect as a rule of the department under superseded by a rule of the department. Authorizes the secretary of state to adopt rules necessary to expedite the implementation of this subsection. SECTION 5. Makes application of this Act prospective. SECTION 6. Effective date: September 1, 1999. SECTION 7. Emergency clause.