Parker Inspector General Bill Makes Schools Pay For Audits

The text as introduced · 1,553 words

89R8198 MEW-D

By: Parker
S.B. No. 877

A BILL TO BE ENTITLED

AN ACT

relating to the creation of the office of inspector general at the

Texas Education Agency to investigate the administration of public

education.

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) "Local education agency" includes a school

district or county system described by Subchapter G, Chapter 11.

(3) "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.

(c) The agency shall provide staff and administrative

resources and support services as necessary to ensure

investigations and reviews authorized by this subchapter are

conducted expeditiously.

Sec. 7.153. GENERAL RESPONSIBILITIES. (a) The office is

responsible for the investigation, prevention, and detection of

wrongdoing and of fraud, waste, and abuse in the administration of

public education by school districts, open-enrollment charter

schools, regional education service centers, and other local

education agencies in this state.

(b) The office may investigate allegations of fraud, waste,

and abuse and violations of this code or other law.

(c) The office may:

(1) conduct civil and administrative investigations

and initiate reviews of a school district, an open-enrollment

charter school, a regional education service center, or another

local education agency as considered appropriate by the inspector

general;

(2) receive and investigate complaints from any source

on its own initiative;

(3) conduct special investigations authorized by the

commissioner under Section 39.003(a); and

(4) make findings of fact that a school district, an

open-enrollment charter school, a regional education service

center, or another local education agency or an employee or agent of

the entity committed an act of wrongdoing, fraud, waste, or abuse in

the administration of public education and take appropriate action

as determined by the commissioner, regardless of any time

requirement relating to the action under Chapter 8, 12, or 39A.

(d) The commissioner may order the office to conduct a

forensic audit of any entity over which the office has

jurisdiction. The entity for which the audit was ordered shall pay

the costs of the audit.

(e) The office shall perform all other duties and exercise

all other powers granted to the office by this subchapter or other

law.

Sec. 7.154. GENERAL POWERS. (a) The office has all the

powers necessary or appropriate to carry out its responsibilities

and functions under this subchapter and other law.

(b) Subject to Subsection (c), in conducting an

investigation under this subchapter of the board of trustees of a

school district, the governing body of an open-enrollment charter

school, the board of directors of a regional education service

center, another local education agency, or the executive leadership

of any of those entities, the office may:

(1) attend any meeting or proceeding of the school

district, open-enrollment charter school, regional education

service center, or other local education agency, including a

meeting or proceeding that is closed to the public, except for a

private consultation of the entity with its attorney permitted

under Section 551.071, Government Code; and

(2) inspect the records, documents, and files of the

school district, open-enrollment charter school, regional

education service center, or other local education agency,

including any record, document, or file that is not subject to

public disclosure under Chapter 552, Government Code, or other law.

(c) The office's authority under Subsection (b) applies

only to a meeting, a proceeding, or information that is relevant to

the discovery of relevant information regarding an allegation of

wrongdoing or a violation of this code or other law or of fraud,

waste, or abuse in the administration of public education by a

person or entity described by Subsection (b). The office may not

inspect a record, document, or file that is a privileged

communication between an individual and the individual's attorney.

(d) The inspection or disclosure of a record, document, or

file for purposes of an investigation under this subchapter is not a

voluntary disclosure under Section 552.007, Government Code. A

record, document, or file made available to the office for purposes

of an investigation under this subchapter is not subject to public

disclosure by the office.

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 OTHER ENTITIES. The office

may refer matters for further civil and administrative action to

appropriate administrative agencies, including the attorney

general.

SECTION 2. Section 39.003(a), Education Code, is amended to

read as follows:

(a) The commissioner may authorize special 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;

(15) when 10 percent or more of the students

graduating in a particular school year from a particular high

school campus are awarded a diploma based on the determination of an

individual graduation committee under Section 28.0258;

(16) when a school district for any reason fails to

produce, at the request of the agency, evidence or an investigation

report relating to an educator who is under investigation by the

State Board for Educator Certification; [ or ]

(17) by the office of inspector general for the

purpose of investigating allegations of fraud, waste, and abuse in

the administration of public education; or

(18) as the commissioner otherwise determines

necessary.

SECTION 3. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.