By: Bettencourt S.B. No. 1886
A BILL TO BE ENTITLED
AN ACT
relating to the oversight of public education, including the
creation of the office of inspector general at the Texas Education
Agency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 7, Education Code, is amended by adding
Subchapter E to read as follows:
SUBCHAPTER E. OFFICE OF INSPECTOR GENERAL
Sec. 7.151. DEFINITIONS. In this subchapter:
(1) "Fraud" means an intentional deception or
misrepresentation made by a person with the knowledge that the
deception could result in some unauthorized benefit to that person
or some other person. The term includes any act that constitutes
fraud under applicable federal or state law.
(2) "Office" means the office of inspector general
established under this subchapter.
Sec. 7.152. OFFICE OF INSPECTOR GENERAL. (a) The office
of inspector general is established as a division within the
agency.
(b) The commissioner shall appoint an inspector general to
serve as director of the office. The inspector general serves until
removed by the commissioner.
Sec. 7.153. GENERAL RESPONSIBILITIES. (a) The office is
responsible for the investigation, prevention, and detection of
criminal misconduct and wrongdoing and of fraud, waste, and abuse
in the administration of public education by:
(1) school districts, including school districts
described by Section 11.301(a);
(2) open-enrollment charter schools;
(3) regional education service centers;
(4) county systems described by Section 11.301(a); and
(5) other local education agencies in this state.
(b) The office shall investigate allegations of fraud,
waste, and abuse and violations of this code or other law.
(c) The office may:
(1) conduct criminal, civil, and administrative
investigations and initiate reviews of:
(A) a school district, including a school
district described by Section 11.301(a);
(B) an open-enrollment charter school;
(C) a regional education service center;
(D) a county system described by Section
11.301(a); or
(E) any other local education agency as
considered appropriate by the inspector general;
(2) receive and investigate complaints from any source
on its own initiative; and
(3) conduct special accreditation investigations
authorized by the commissioner under Section 39.057(a).
(d) The office shall perform all other duties and exercise
all other powers granted to the office by this subchapter or another
law.
Sec. 7.154. GENERAL POWERS. The office has all the powers
necessary or appropriate to carry out its responsibilities and
functions under this subchapter and other law.
Sec. 7.155. SUBPOENAS. (a) The inspector general may
issue a subpoena to compel the attendance of a relevant witness at a
hearing or deposition under this subchapter or to compel the
production, for inspection or copying, of books, papers, records,
documents, or other relevant materials, including electronic data,
in connection with an investigation, review, hearing, or deposition
conducted under this subchapter.
(b) A subpoena may be served personally or by certified
mail. If a person fails to comply with a subpoena, the inspector
general, acting through the attorney general, may file suit to
enforce the subpoena in a district court in this state.
(c) On finding that good cause exists for issuing the
subpoena, the court shall order the person to comply with the
subpoena. The court may hold in contempt a person who fails to obey
the court order.
Sec. 7.156. COOPERATION WITH LAW ENFORCEMENT OFFICIALS AND
OTHER ENTITIES. (a) The office may provide information and
evidence relating to criminal acts to the State Auditor's Office
and appropriate law enforcement officials.
(b) The office may refer matters for further civil,
criminal, and administrative action to appropriate administrative
and prosecutorial agencies, including the attorney general.
SECTION 2. Subchapter G, Chapter 11, Education Code, is
amended by adding Section 11.305 to read as follows:
Sec. 11.305. OVERSIGHT OF CERTAIN ENTITIES. (a) Each
school district or county system described by Section 11.301(a)
shall provide a report to the agency not later than February 27 of
each year. The annual report must include, at a minimum:
(1) a summary of the district's or system's operations
for the preceding fiscal year; and
(2) the district's or system's financial statements,
audited by a certified public accountant, for the preceding fiscal
year.
(b) The commissioner may direct the agency to investigate a
school district or county system described by Section 11.301(a) for
potential fraud, waste, or abuse.
(c) If after an investigation described by Subsection (b)
the commissioner determines that a school district or county system
has engaged in fraud, waste, or abuse and the school district or
county system does not timely correct the fraud, waste, or abuse to
the satisfaction of the commissioner, the commissioner may replace
the governing board of the school district or county system with a
board of managers in accordance with Chapter 39 and rules adopted
under that chapter.
(d) If a school district or county system described by
Section 11.301(a) discovers an instance of fraud, waste, or abuse,
the school district or county system shall report the fraud, waste,
or abuse to the agency not later than the 20th day after the date the
fraud, waste, or abuse is discovered.
(e) If a school district or county system described by
Section 11.301(a) fails to file an annual report under Subsection
(a) or fails to report fraud, waste, or abuse under Subsection (d),
the commissioner may replace the governing board of the school
district or county system with a board of managers in accordance
with Chapter 39 and rules adopted under that chapter.
(f) The commissioner may adopt rules as necessary to
implement this section.
SECTION 3. Section 39.057(a), Education Code, is amended to
read as follows:
(a) The commissioner may authorize special accreditation
investigations to be conducted:
(1) when excessive numbers of absences of students
eligible to be tested on state assessment instruments are
determined;
(2) when excessive numbers of allowable exemptions
from the required state assessment instruments are determined;
(3) in response to complaints submitted to the agency
with respect to alleged violations of civil rights or other
requirements imposed on the state by federal law or court order;
(4) in response to established compliance reviews of
the district's financial accounting practices and state and federal
program requirements;
(5) when extraordinary numbers of student placements
in disciplinary alternative education programs, other than
placements under Sections 37.006 and 37.007, are determined;
(6) in response to an allegation involving a conflict
between members of the board of trustees or between the board and
the district administration if it appears that the conflict
involves a violation of a role or duty of the board members or the
administration clearly defined by this code;
(7) when excessive numbers of students in special
education programs under Subchapter A, Chapter 29, are assessed
through assessment instruments developed or adopted under Section
39.023(b);
(8) in response to an allegation regarding or an
analysis using a statistical method result indicating a possible
violation of an assessment instrument security procedure
established under Section 39.0301, including for the purpose of
investigating or auditing a school district under that section;
(9) when a significant pattern of decreased academic
performance has developed as a result of the promotion in the
preceding two school years of students who did not perform
satisfactorily as determined by the commissioner under Section
39.0241(a) on assessment instruments administered under Section
39.023(a), (c), or (l);
(10) when excessive numbers of students eligible to
enroll fail to complete an Algebra II course or any other advanced
course as determined by the commissioner;
(11) when resource allocation practices as evaluated
under Section 39.0821 indicate a potential for significant
improvement in resource allocation;
(12) when a disproportionate number of students of a
particular demographic group is graduating with a particular
endorsement under Section 28.025(c-1);
(13) when an excessive number of students is
graduating with a particular endorsement under Section
28.025(c-1);
(14) in response to a complaint submitted to the
agency with respect to alleged inaccurate data that is reported
through the Public Education Information Management System (PEIMS)
or through other reports required by state or federal law or rule or
court order and that is used by the agency to make a determination
relating to public school accountability, including accreditation,
under this chapter; [or]
(15) by the office of inspector general for the
purpose of investigating allegations of fraud, waste, and abuse in
the administration of public education; or
(16) as the commissioner otherwise determines
necessary.
SECTION 4. This Act takes effect September 1, 2017.