89R3802 TSS-D     By: Hopper H.B. No. 2657       A BILL TO BE ENTITLED   AN ACT   relating to the abolition of the Texas Education Agency and   elimination of the position of commissioner of education, the   transfer of powers and duties to the State Board of Education and   the comptroller of public accounts, and the elimination of public   school accountability and assessment systems.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:   ARTICLE 1.  ABOLITION OF THE TEXAS EDUCATION AGENCY          SECTION 1.01.  Chapter 1, Education Code, is amended by   adding Section 1.007 to read as follows:          Sec. 1.007.  TRANSFER AND ALLOCATION OF FORMER TEXAS   EDUCATION AGENCY AND COMMISSIONER OF EDUCATION DUTIES. Except as   provided by Chapter 42:                (1)  the powers, duties, and privileges of the former   Texas Education Agency and the former commissioner of education   under this code or other law are transferred to the State Board of   Education; and                (2)  a reference in law to the Texas Education Agency or   the commissioner of education is a reference to the State Board of   Education.          SECTION 1.02.  Sections 5.001(1) and (3), Education Code,   are amended to read as follows:                (1)  "Agency" means the former Texas Education Agency.                (3)  "Commissioner" means the former commissioner of   education.          SECTION 1.03.  Subchapter A, Chapter 7, Education Code, is   amended by adding Section 7.0011 to read as follows:          Sec. 7.0011.  TRANSFER AND ALLOCATION OF POWERS AND DUTIES   TO STATE BOARD OF EDUCATION. (a) In accordance with Section 1.007,   the powers and duties of the former Texas Education Agency under   Subchapter B and the powers and duties of the former commissioner of   education under Subchapter C are transferred to the board.          (b)  The board shall carry out the educational functions   specifically delegated to the agency under Section 7.021 or to the   commissioner under Section 7.055 or to the agency or commissioner   under another provision of this code.          (c)  A reference in this chapter to the agency or the   commissioner is a reference to the board.          SECTION 1.04.  Section 7.003, Education Code, is amended to   read as follows:          Sec. 7.003.  LIMITATION ON AUTHORITY.  An educational   function not specifically delegated to [the agency or] the board or   the comptroller under this code is reserved to and shall be   performed by school districts or open-enrollment charter schools.          SECTION 1.05.  Sections 7.102(b) and (d), Education Code,   are amended to read as follows:          (b)  The board has the powers and duties provided by   Subsection (c) in addition to the powers and duties assigned to the   board by the constitution of this state or another provision of this   code [, which shall be carried out with the advice and assistance of   the commissioner].          (d)  The board may adopt rules relating to school districts   or regional education service centers [only] as required to carry   out the [specific] duties assigned to the board [by the   constitution or under Subsection (c)].          SECTION 1.06.  Subtitle I, Title 2, Education Code, is   amended by adding Chapter 42 to read as follows:   CHAPTER 42.  TRANSFER AND ALLOCATION OF POWERS AND DUTIES          Sec. 42.001.  TRANSFER AND ALLOCATION OF AGENCY AND   COMMISSIONER POWERS AND DUTIES. (a)  The powers, duties, and   privileges of the former Texas Education Agency and the former   commissioner of education under this subtitle or other law relating   to public school finance and fiscal management are transferred to   the comptroller of public accounts.          (b)  A reference in law to the agency or the commissioner   that relates to the powers and duties of the agency or commissioner   under this subtitle or other law relating to public school finance   and fiscal management is a reference to the comptroller of public   accounts.          Sec. 42.002.  COMPTROLLER POWERS AND DUTIES. (a) The   comptroller has the powers and duties provided by this section.          (b)  The comptroller shall:                (1)  distribute funds to open-enrollment charter   schools as required under Subchapter D, Chapter 12;                (2)  establish advisory guidelines relating to the   fiscal management of a school district and report annually to the   board on the status of school district fiscal management as   required under Section 44.001;                (3)  review school district budgets, audit reports, and   other fiscal reports as required under Sections 44.008 and 44.010   and prescribe forms for financial reports made by or for school   districts to the comptroller as required under Section 44.009;                (4)  perform duties in connection with the guaranteed   bond program as prescribed by Subchapter C, Chapter 45;                (5)  adopt an annual budget for operating the   Foundation School Program as prescribed by Subsection (c);                (6)  perform duties in connection with the Foundation   School Program as prescribed by Chapter 48; and                (7)  perform duties in connection with the options for   local revenue levels in excess of entitlement under Chapter 49.          (c)  The budget the comptroller adopts under Subsection   (b)(5) for operating the Foundation School Program must be in   accordance with legislative appropriations and provide funds for   the administration and operation of public school finance and   fiscal management duties of the comptroller and any other necessary   expense.  The budget must designate any expense of operating the   office of the comptroller or operating a program for which the State   Board of Education has responsibility that is paid from the   Foundation School Program.  The budget must designate program   expenses that may be paid out of the foundation school fund, other   state funds, fees, federal funds, or funds earned under interagency   contract.  Before adopting the budget, the comptroller must submit   the budget to the State Board of Education for review and, after   receiving any comments of the State Board of Education, present the   operating budget to the governor and the Legislative Budget Board.     The comptroller shall propose budget expenditures in a manner that   ensures that all payments are paid from the appropriate funds in a   timely and efficient manner.          SECTION 1.07.  Section 48.004, Education Code, is amended to   read as follows:          Sec. 48.004.  ADMINISTRATION OF THE PROGRAM.  The   comptroller [commissioner] shall adopt rules and take action and   require reports consistent with this chapter as necessary to   implement and administer the Foundation School Program.          SECTION 1.08.  Section 403.011(a), Government Code, is   amended to read as follows:          (a)  The comptroller shall:                (1)  obtain a seal with "Comptroller's Office, State of   Texas" engraved around the margin and a five-pointed star in the   center, to be used as the seal of the office to authenticate   official acts, except warrants drawn on the state treasury;                (2)  adopt regulations the comptroller considers   essential to the speedy and proper assessment and collection of   state revenues;                (3)  supervise, as the sole accounting officer of the   state, the state's fiscal concerns and manage those concerns as   required by law;                (4)  require all accounts presented to the comptroller   for settlement not otherwise provided for by law to be made on forms   that the comptroller prescribes;                (5)  prescribe and furnish the form or electronic   format to be used in the collection of public revenue;                (6)  prescribe the mode and manner of keeping and   stating of accounts of persons collecting state revenue;                (7)  prescribe forms or electronic formats of the same   class, kind, and purpose so that they are uniform in size,   arrangement, matter, and form;                (8)  require each person receiving money or managing or   having disposition of state property of which an account is kept in   the comptroller's office periodically to render statements of the   money or property to the comptroller;                (9)  require each person who has received and not   accounted for state money to settle the person's account;                (10)  keep and settle all accounts in which the state is   interested;                (11)  examine and settle the account of each person   indebted to the state, verify the amount or balance, and direct and   supervise the collection of the money;                (12)  audit claims against the state the payment of   which is provided for by law, unless the audit is otherwise   specially provided for;                (13)  determine the method for auditing claims against   the state in a cost-effective manner, including the use of   stratified and statistical sampling techniques in conjunction with   automated edits;                (14)  maintain the necessary records and data for each   approved claim against the state so that an adequate audit can be   performed and the comptroller can submit a report to each house of   the legislature, upon request, stating the name and amount of each   approved claim;                (15)  keep and state each account between the state and   the United States;                (16)  keep journals through which all entries are made   in the ledger;                (17)  draw warrants on the treasury for payment of all   money required by law to be paid from the treasury on warrants drawn   by the comptroller;                (18)  suggest plans for the improvement and management   of the general revenue; [and]                (19)  preserve the books, records, papers, and other   property of the comptroller's office and deliver them in good   condition to the successor to that office; and                (20)  perform the powers relating to public school   finance and fiscal management required by Section 42.002, Education   Code, including the maintenance and administration of the   Foundation School Program under Chapter 48 of that code.          SECTION 1.09.  The following provisions of the Education   Code are repealed:                (1)  Section 7.002;                (2)  Section 7.004;                (3)  Section 7.021(b)(13);                (4)  Section 7.051;                (5)  Section 7.052;                (6)  Section 7.053;                (7)  Section 7.054;                (8)  Sections 7.055(b)(2), (6), (17), (32), (34), (35),   (36), (37), and (38);                (9)  Section 7.055(c);                (10)  Section 7.102(c)(29); and                (11)  Sections 7.102(a) and (e).          SECTION 1.10.  (a)  On the effective date of this Act and   except as provided by Subsection (b) of this section, the Texas   Education Agency is abolished and the position of commissioner of   education is eliminated, but the agency and position continue in   existence until December 1, 2025, for the sole purpose of   transferring, as applicable, all obligations, property, rights,   powers, duties, leases, contracts, software, data, and full-time   equivalent employee positions to the State Board of Education.  The   State Board of Education assumes all of the obligations, property,   rights, powers, duties, leases, contracts, software, data, and   full-time equivalent employee positions of the Texas Education   Agency and commissioner of education as they exist immediately   before the effective date of this Act.  All unexpended funds   appropriated to the Texas Education Agency are transferred to the   State Board of Education.          (b)  Not later than December 21, 2025, the Texas Education   Agency and commissioner of education shall transfer, as applicable,   all obligations, property, rights, powers, duties, leases,   contracts, software, data, and full-time equivalent employee   positions relating to public school finance and fiscal management,   including the maintenance and administration of the Foundation   School Program under Chapter 48, Education Code, to the comptroller   of public accounts.  The comptroller of public accounts assumes all   of the obligations, property, rights, powers, duties, leases,   contracts, software, data, and full-time equivalent employee   positions of the Texas Education Agency and commissioner of   education relating to public school finance and fiscal management,   including the maintenance and administration of the Foundation   School Program under Chapter 48, Education Code, as they exist   immediately before the effective date of this Act.  All unexpended   funds appropriated to the Texas Education Agency relating to public   school finance and fiscal management, including the maintenance and   administration of the Foundation School Program under Chapter 48,   Education Code, are transferred to the comptroller of public   accounts.          (c)  On September 1, 2025, all full-time equivalent employee   positions at the Texas Education Agency become positions at the   State Board of Education or comptroller of public accounts, as   appropriate, in accordance with Subsections (a) and (b) of this   section.  On September 1, 2025, all employees who were employed by   the Texas Education Agency on August 31, 2025, become employees of   the State Board of Education or comptroller of public accounts, as   appropriate, in accordance with Subsections (a) and (b) of this   section.          (d)  The Texas Education Agency, commissioner of education,   State Board of Education, and comptroller of public accounts shall,   in consultation with appropriate state entities, ensure that the   transfer of the obligations, property, rights, powers, duties,   leases, contracts, software, data, and full-time equivalent   employee positions of the Texas Education Agency and commissioner   of education under this section is completed not later than   December 1, 2025.          (e)  Except as provided by Subsection (f) of this section,   all rules, fees, policies, procedures, decisions, and forms adopted   by the Texas Education Agency or commissioner of education are   continued in effect as rules, fees, policies, procedures,   decisions, and forms adopted by the State Board of Education until   amended or superseded by a rule, fee, policy, procedure, decision,   or form adopted by the State Board of Education.  A complaint or   investigation pending on the effective date of this Act is   continued without change in status after the effective date of this   Act.          (f)  All rules, fees, policies, procedures, decisions, and   forms adopted by the Texas Education Agency or commissioner of   education relating to public school finance or fiscal management,   including the maintenance and administration of the Foundation   School Program under Chapter 48, Education Code, are continued in   effect as rules, fees, policies, procedures, decisions, and forms   adopted by the comptroller of public accounts until amended or   superseded by a rule, fee, policy, procedure, decision, or form   adopted by the comptroller of public accounts.          (g)  Not later than September 1, 2026, the State Board of   Education and comptroller of public accounts, as applicable, shall   adopt any rules necessary to implement the changes in law made by   this Act.   ARTICLE 2.  REPEAL OF PUBLIC SCHOOL ACCOUNTABILITY AND ASSESSMENT   SYSTEM          SECTION 2.01.  Chapter 1, Education Code, is amended by   adding Section 1.008 to read as follows:          Sec. 1.008.  REFERENCES TO PUBLIC SCHOOL ACCOUNTABILITY OR   ASSESSMENTS. (a)  Except as provided by Subsection (b), a reference   in law to an assessment instrument adopted, developed, required, or   administered under former Chapter 39 refers to an assessment   instrument adopted, developed, required, or administered by a   public elementary or secondary school that assesses student   performance in an equivalent manner to the referenced assessment   instrument, if applicable.          (b)  If a public elementary or secondary school has not   adopted or developed an assessment instrument that assesses student   performance in an equivalent manner to an assessment instrument   adopted or developed under former Chapter 39, any law relating to   the assessment of students using that assessment instrument does   not apply to the school.          (c)  A reference in law to an accreditation, a financial   accountability system, or any other accountability program or   system under former Chapter 39 or an accountability intervention or   sanction under former Chapter 39A is considered expired.          SECTION 2.02.  Subtitle H, Title 2, Education Code, is   repealed.          SECTION 2.03.  As soon as practicable after the effective   date of this Act but not later than December 1, 2025, the Texas   Education Agency shall remove a monitor, conservator, management   team, or board of managers appointed to a school district or   open-enrollment charter school by the agency under Chapter 39A,   Education Code, as it existed before the effective date of this Act,   and return the administration and control of the school district to   the board of trustees of the district or governing body of the   school.          SECTION 2.04.  This article applies beginning with the   2025-2026 school year.   ARTICLE 3.  EFFECTIVE DATE          SECTION 3.01.  (a)  Except as provided by Subsection (b) of   this section, this Act takes effect September 1, 2025.          (b)  Article 2 of 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, Article 2 of this Act takes effect September 1, 2025.