HBA-CCH H.B. 580 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 580
By: Pickett
Public Education
4/2/2001
Introduced



BACKGROUND AND PURPOSE 

Currently, individual school districts conduct audits on their schools'
dropout records. However, this can create a conflict of interest and
district's audits of their own dropout rates have been criticized as
inaccurate and misleading. House Bill 580 requires the board of trustees of
each school district to have the districts' dropout records audited
annually at district expense by an accountant who has successfully
completed a training course in auditing school dropout records and is not
an employee of the district. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 580 amends the Education Code relating to require the board of
trustees of each school district (board) to have its dropout records
audited annually at their own expense by a certified or registered and
licensed public accountant who is not an employee of the district and who
has completed training in auditing school dropout records by the Texas
Education Agency (agency).  The bill requires the agency to develop and
make a training program available for accountants no later than February 1,
2002.  The bill provides that the audit must be completed following the end
of each school year beginning with the 2001-2002 school year.  The audit
must  meet minimum requirements and be in the format prescribed by the
commissioner of education (commissioner), subject to review and comment by
the state auditor.  The bill requires the district to file a copy of the
report approved by the board, with the agency no later than the 120th day
after the end of the school year.  If the board refuses to approve the
report, the board is required to file a copy of the report with the agency
and detail its reasons for the refusal.  The bill requires the agency to
review reports of the audits.  The bill requires the commissioner to notify
the board of any objections, recommendations, or violations of sound
accounting practices and law and rule requirements revealed by the report.
If the report indicates a violation of penal laws, the commissioner is
required to notify the county attorney, district attorney, or criminal
district attorney as appropriate, and the attorney general.  The bill
entitles the commissioner to access all necessary and appropriate district
records for the review, analysis, and approval of the reports. 

EFFECTIVE DATE

September 1, 2001.