The State Board of Education (SBOE) adopts an amendment to §109.25, concerning the state compensatory education program reporting and auditing system. The amendment is adopted without changes to the proposed text as published in the July 23, 2021, issue of the Texas Register (46 TexReg 4431) and will not be republished. The adopted amendment updates references to statutory citations that were renumbered by House Bill (HB) 3, 86th Texas Legislature, 2019.

REASONED JUSTIFICATION: Section 109.25 addresses the requirement for each school district and charter school to report financial information relating to the expenditure of the state compensatory education allotment under the Foundation School Program to the Texas Education Agency.

Changes to §109.25 are necessary as a result of the statutorily required rule review of Chapter 109. The adopted amendment replaces Texas Education Code (TEC), §42.152(c), with §48.104(k) and TEC, §42.152(q), with §48.104(o) to reflect the renumbering of statute by HB 3, 86th Texas Legislature, 2019.

The SBOE approved the proposed amendment for first reading and filing authorization at its June 25, 2021 meeting and for second reading and final adoption at its September 3, 2021 meeting.

In accordance with TEC, §7.102(f), the SBOE approved the amendment for adoption by a vote of two-thirds of its members to specify an effective date earlier than the beginning of the 2022-2023 school year. The earlier effective date will update references to statute as soon as possible. The effective date is 20 days after filing as adopted with the Texas Register.

SUMMARY OF COMMENTS AND RESPONSES: The public comment period on the proposal began July 23, 2021, and ended at 5:00 p.m. on August 27, 2021. The SBOE also provided an opportunity for registered oral and written comments at its September 2021 meeting in accordance with the SBOE board operating policies and procedures. Following is a summary of the public comment received and the corresponding response.

Comment: The National Parents Union expressed thanks to the SBOE for their due diligence with Chapter 109, Budgeting, Accounting, and Auditing.

Response: The SBOE agrees.

STATUTORY AUTHORITY. The amendment is adopted under Texas Education Code, §48.104, as redesignated and amended by House Bill 3, 86th Texas Legislature, 2019, which requires the State Board of Education to adopt rules requiring a report on the use of compensatory education funds as part of the annual audit and develop minimum requirements for that report.

CROSS REFERENCE TO STATUTE. The amendment implements Texas Education Code, §48.104.