2015 Post-Legislative Policy Update Texas K-12 CTO Council Fall Meeting October 23, 2015 Mark Tilley Senior Attorney TASB Legal Services

Lots of New Faces In the House, 24 members were in their first term. In the Senate, 8 members were in their first term. New members were trying to establish credibility.

Session by the Numbers 6,276 bills were filed. Just under 4,000 bills were heard in committee. 1,323 bills passed, of which over 345 affected public and higher education.

Failed Efforts Focused on Trustees Personal financial disclosures for trustees Trustee recall Trustee term limits Trustee/vendor contact

Other Bills that Did Not Pass Teacher pay November bond elections Ballot language School finance reform

Appropriations Highlights of HB 1: $ B - Total budget, all funds (3.6%) $54.4 B - All funds, public education (5.5%) $42.3 B - Foundation School Program –$2.6 B - Franchise tax reduction hold-harmless –$1.2 B - Homestead exemption hold-harmless

Appropriations Funding in HB 1 Outside the FSP $1.04 B – Instructional Materials Allotment $118 M – Prekindergarten programs $40.6 M – Math and reading academies $31.7 M – Student Success Initiative $31 M – Communities in Schools $30 M – Prekindergarten supplemental $25 M – ESCs $16.3 M – Advanced Placement Initiative $12 M – Teach for America

Appropriations HB 1, In Summary Modest increase in school funding ($1.5B) Percent increase in education funding seems large because of hold-harmless funds ($3.8B) –Hold harmless funding does not increase resources for schools Cuts to grant-funded programs not yet restored New budget holes in years to come

School Finance Foundation School Program –Formula improvements – HB 1 –Fractional funding – HB 7 –Counting full-time attendance – HB 2660, HB 2812 –Districts serving out of state students—HB 2593 Future school finance lawsuits – SB 455

SB 507: Videocameras Requires video and audio recording in certain special education classes Upon request by employee, parent, trustee Must be released for viewing to employee or parent of student involved in incident Effective in No policy changes until rules are adopted © 2015 Texas Association of School Boards, Inc. All rights reserved.

HB 1559: Homeless Services Online Schools must post online info about local programs to assist homeless students Including charities School decides what to post Does not apply to districts with <3000 students in counties of <50,000 FDC(LEGAL)

HB 3562: Grace Period Policy District must adopt grace period policy for when meal card or account is exhausted –Must notify parents of 0 balance –Notice may provide repayment schedule –May not charge fee or interest CO(LEGAL) and CO(LOCAL)

HB 3562: Grace Period Policy

HB 1993: E-Signatures Districts may accept parent’s e-signature if using “electronic platform” Applies to grades and notices of unsatisfactory performance Must allow option to provide handwritten signature EIA(LEGAL)

HB 2610: Minutes of Instruction Former law required 180 days of instruction Now 75,600 instructional minutes; with instruction day = 420 minutes Last day of school can’t be before May 15 EB(LEGAL) and EC(LEGAL)

SB 181: Content on Diploma Passed in time for Only transcript—not diploma—must reflect endorsements, performance acknowledgments, and DLA Cost savings to local districts EI(LEGAL) and EIF(LEGAL) © 2015 Texas Association of School Boards, Inc. All rights reserved.

HB 283: Posting Meetings Online Student enrollment of 10,000 or more: Make a video and audio recording of reasonable quality of each regularly scheduled meeting that is not work session or special called meeting; and Make available an archived copy on the Internet. BE(LEGAL)

Process for Archiving May be available on an existing site, including publicly accessible video-sharing or social networking Maintain recording or accessible link to recording on district’s website in conspicuous manner Make available within 7 days after recording; maintain for two years on Internet Exemption for catastrophe or technical breakdown

HB 685: Website Referral for Public Information Production May refer requestor to exact internet location or URL address on district’s website that is publically accessible, identifiable, and readily available Requestor may opt for the other production methods of inspection or mail response must contain a statement in conspicuous font clearly indicating that requestor may use the other methods GBAA(LEGAL)

HB 114 Limiting the Issuance of Capital Appreciation Bonds Maturity date must be < 20 years Extensive notice requirements May not be used for maintenance items or transportation CCA(LEGAL) © 2015 Texas Association of School Boards, Inc. All rights reserved.

HB 1378 Fiscal Transparency and Accountability Annual report of debt obligations, credit rating and other relevant information May provide data to comptroller

HB 1474 Instructional Materials Allotment Districts are entitled to an allotment each biennium rather than annually Allotment is based on student enrollment on a date during the last year of the preceding biennium CMD(LEGAL)

HB 23—Expansion of Officer (CIS) and Vendor (CIQ) Disclosures Local Government Officer Family Relationship Gifts Three Key Areas of Expansion: Effective © 2015 Texas Association of School Boards, Inc. All rights reserved.

Expands Local Government Officer Board TrusteesSuperintendentADDED: Agent of the district, including employee: who exercises discretion in the planning, recommending, selecting, or contracting of a vendor (mandatory) replaces optional school district extension to employee with contracting authority

Income and Gift Disclosures Under Current Law Income or gifts occurring in the 12-month period preceding the date that the LGO becomes aware of a contract or consideration of entering into a contract if: (1)the income from a vendor to an LGO or LGO’s family member exceeds $2,500 excluding investment income, or (2)the gift(s) from a vendor to an LGO or LGO’s family member aggregate to more than $250 ($100 effective ).

Adds Third Category of Disclosure— Family Relationship A person related to another person within the third degree by consanguinity or the second degree by affinity (nepotism rules). Family relationship disclosures apply regardless of monetary benefit from vendor.

Family Relationship— Consanguinity (blood relation) to Third Degree The Vendor’s Agent is the LGO’s: First DegreeParentChild Second Degree Grand-parentGrand-childSisterBrother Third DegreeGreat Grand- parent Great Grand- child Aunt/UncleNiece/Nephew

Family Relationship— Affinity (by marriage) to Second Degree The Vendor’s Agent is the LGO’s spouse. The Vendor’s Agent is the LGO’s spouse’s (LGO’s spouse’s relatives): or The Vendor’s Agent is the spouse of the LGO’s (LGO’s relatives’ spouses): First DegreeParentChild Second DegreeGrand- parent Grand -child SisterBrother

Adds Definition of Gift Gift: a benefit offered including food, lodging, transportation, and entertainment accepted as a guest. Not a Gift: a benefit offered on account of kinship or a personal, professional, or business relationship independent of the recipient’s official status.

Amends Gift Rules Disclosure of aggregate value of gifts from vendor to LGO is lowered from more than $250 to $100 in the 12-month period. Food accepted as a guest is not required to be disclosed but gifts of lodging, transportation or entertainment even if accepted as a guest must be disclosed. BBFA(LEGAL) and (EXHIBIT), CHE(LEGAL), and DBD(LEGAL) and (EXHIBIT).

HB 1295—Business Entity Disclosure of Interested Party Applies to a contract entered into on or after January 1, 2016, of a governmental entity, including a public school district that: (1) requires an action or vote by the governing body before the contract may be signed; or (2) has a value of at least $1 million.

Interested Party Interested party means a person: (1)who has a controlling interest in the contracting business entity, or (2) who actively participates in facilitating the contract or negotiating the terms of the contract, including a broker, intermediary, adviser, or attorney for the business entity.

Process for Disclosure of Interested Party Business entity submits the disclosure to the district at the time of the signed contract submission. The district may not enter into the contract without the submission. Not later than 30 days after receipt of the disclosure, the district submits a copy to the Texas Ethics Commission, which will adopt the form and rules by December 1, CH(LEGAL)

Mark Tilley Senior Attorney TASB Legal Services