Adoption of Review of 19 TAC Chapter 105, Foundation School Program, Subchapter A, Definitions, and Subchapter B, Use of State Funds
(Adoption of Review)

February 2, 2018

COMMITTEE ON SCHOOL FINANCE/PERMANENT SCHOOL FUND: ACTION
STATE BOARD OF EDUCATION: CONSENT

SUMMARY: Texas Government Code, §2001.039, establishes a four-year rule review cycle for all state agency rules, including State Board of Education (SBOE) rules. This item presents the adoption of the review of 19 TAC Chapter 105, Foundation School Program, Subchapter A, Definitions, and Subchapter B, Use of State Funds. The rules being reviewed provide for the use of Foundation School Program (FSP) funds.

STATUTORY AUTHORITY: The statutory authority for the rule review is the Texas Government Code, §2001.039. The statutory authority for 19 TAC Chapter 105, Subchapter A, is the Texas Education Code (TEC), §42.004. The statutory authority for 19 TAC Chapter 105, Subchapter B, §105.11, is the TEC, §§42.151(h), 42.152(c), 42.153(b), 42.154(c), 42.1541, and 42.156(b). The statutory authority for 19 TAC Chapter 105, Subchapter B, §105.12, is the TEC, §42.004.

The Texas Government Code, §2001.039, requires all state agencies to review their rules at least once every four years.

TEC, §42.004, requires the commissioner of education, in accordance with the rules of the SBOE, to take such action and require such reports consistent with the TEC, Chapter 42, as may be necessary to implement and administer the Foundation School Program.

TEC, §42.151(h), sets spending requirements for the Special Education allotment.

TEC, §42.152(c), sets spending requirements for the compensatory education allotment.

TEC, §42.153(b), sets spending requirements for the bilingual education allotment.

TEC, §42.154(c), sets spending requirements for the career and technology allotment.

TEC, §42.156(b), sets spending requirements for the gifted and talented allotment.

PREVIOUS BOARD ACTION: The SBOE last adopted the review of 19 TAC Chapter 105, Subchapters A and B, in January 2014, finding that the reasons for initially adopting the rules continued to exist. Subsequent to the review, the SBOE adopted an amendment to §105.1 effective October 15, 2017. The review of 19 TAC Chapter 105, Subchapters A and B, was presented for discussion to the Committee on School Finance/Permanent School Fund at the November 2017 meeting.

BACKGROUND INFORMATION AND SIGNIFICANT ISSUES: The SBOE rules in 19 TAC Chapter 105, Subchapters A and B, provide for the definition of tax levy and tax collection for purposes of administering the FSP, the specification of limits on the use of certain FSP special program allotments, and the authorized use of state aid for operations and acquisitions, renovation, repairs, and maintenance of facilities.

Under current agency practice, school districts are held accountable for the use of allotments through desk reviews and detailed investigations as needed to ensure compliance with the limitations in statute and rule.

No amendments to the rules in 19 TAC Chapter 105, Subchapters A and B, are anticipated at this time.

RULE REVIEW: Following the November 2017 SBOE meeting, notice of the proposed review of 19 TAC Chapter 105, Subchapters A and B, was filed with the Texas Register. If authorized by the SBOE, the TEA will file the notice of adopted review with the Texas Register following the January-February 2018 SBOE meeting. The notice of the adopted review will state that the SBOE finds the reasons for adopting 19 TAC Chapter 105, Subchapters A and B, continue to exist. Any public comments received during the review of 19 TAC Chapter 105, Subchapters A and B, will also be filed.

The filing of the notice of adopted review stating that the reasons for adoption continue to exist would not preclude any amendments that may be proposed at different dates through a separate rulemaking process.

FISCAL IMPACT: None.

PUBLIC AND STUDENT BENEFIT: Use of allotments in compliance with the rules focuses resources on direct student services.

PROCEDURAL AND REPORTING IMPLICATIONS: None.

LOCALLY MAINTAINED PAPERWORK REQUIREMENTS: None.

PUBLIC COMMENTS: Following the November 2017 SBOE meeting, notice of the proposed review of 19 TAC Chapter 105, Subchapters A and B, was filed with the Texas Register, initiating the public comment period for the review. At the time this item was prepared, no comments had been received. Any public comments received will be provided to the SBOE during the January-February 2018 meeting.

ALTERNATIVES: None.

OTHER COMMENTS AND RELATED ISSUES: None.

MOTION TO BE CONSIDERED: The State Board of Education:

Adopt the review of 19 TAC Chapter 105, Foundation School Program, Subchapter A, Definitions, and Subchapter B, Use of State Funds.

Staff Members Responsible:
Leo Lopez, Associate Commissioner
School Finance / Chief School Finance Officer

Al McKenzie, Director
State Funding

Attachments:
I. Statutory Citations (PDF, 25KB)
II. Text of 19 TAC Chapter 105, Foundation School Program, Subchapter A, Definitions, and Subchapter B, Use of State Funds (PDF, 25KB)