Texas 2021 - 87th Regular

Texas House Bill HB2451 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87R5895 BDP-F
2	2	By: Canales H.B. No. 2451
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the management, operation, and contract authority of
8	8	open-enrollment charter schools.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 12.1054(a), Education Code, is amended
11	11	to read as follows:
12	12	(a) A member of the governing body of a charter holder, a
13	13	member of the governing body of an open-enrollment charter school,
14	14	or an officer of an open-enrollment charter school is considered to
15	15	be a local public official for purposes of Chapter 171, Local
16	16	Government Code. For purposes of that chapter,[:
17	17	[(1)] a member of the governing body of a charter
18	18	holder or a member of the governing body or officer of an
19	19	open-enrollment charter school is considered to have a substantial
20	20	interest in a business entity if a person related to the member or
21	21	officer in the third degree by consanguinity or affinity, as
22	22	determined under Chapter 573, Government Code, has a substantial
23	23	interest in the business entity under Section 171.002, Local
24	24	Government Code[;
25	25	[(2) notwithstanding any provision of Section
26	26	12.1054(1), an employee of an open-enrollment charter school rated
27	27	acceptable or higher under Section 39.054 for at least two of the
28	28	preceding three school years may serve as a member of the governing
29	29	body of the charter holder of the governing body of the school if
30	30	the employees do not constitute a quorum of the governing body or
31	31	any committee of the governing body; however, all members shall
32	32	comply with the requirements of Sections 171.003-171.007, Local
33	33	Government Code].
34	34	SECTION 2. Subchapter D, Chapter 12, Education Code, is
35	35	amended by adding Section 12.1169 to read as follows:
36	36	Sec. 12.1169. TRANSACTIONS INVOLVING RELATED PARTY OF
37	37	MANAGEMENT COMPANY. (a) The commissioner shall adopt a rule
38	38	defining "related party of a management company" for purposes of
39	39	this subchapter. The definition of "related party of a management
40	40	company" must include:
41	41	(1) a party with a current or former board member,
42	42	administrator, or officer who is:
43	43	(A) a board member, administrator, or officer of
44	44	a management company that provides management services for an
45	45	open-enrollment charter school; or
46	46	(B) related within the third degree of
47	47	consanguinity or affinity, as determined under Chapter 573,
48	48	Government Code, to a board member, administrator, or officer of a
49	49	management company that provides management services for an
50	50	open-enrollment charter school;
51	51	(2) any organizations, joint ventures, and jointly
52	52	governed organizations related to a management company that
53	53	provides management services for an open-enrollment charter
54	54	school;
55	55	(3) any board members, administrators, or officers of
56	56	a management company that provides services for an open-enrollment
57	57	charter school, including a person related to a board member,
58	58	administrator, or officer of the management company within the
59	59	third degree of consanguinity or affinity, as determined under
60	60	Chapter 573, Government Code; and
61	61	(4) any other disqualified person, as that term is
62	62	defined by 26 U.S.C. Section 4958(f).
63	63	(b) For purposes of Subsection (a)(1), a person is a former
64	64	board member, administrator, or officer if the person served in
65	65	that capacity within one year of the date on which a financial
66	66	transaction between a management company and a related party of a
67	67	management company occurred.
68	68	SECTION 3. Sections 12.120(a) and (b), Education Code, are
69	69	amended to read as follows:
70	70	(a) A person may not serve as a member of the governing body
71	71	of a charter holder, as a member of the governing body of an
72	72	open-enrollment charter school, or as an officer or employee of an
73	73	open-enrollment charter school if the person:
74	74	(1) has been convicted of:
75	75	(A) a felony; or
76	76	(B) a misdemeanor involving moral turpitude;
77	77	(2) has been convicted of:
78	78	(A) an offense listed in Section 37.007(a) or[;
79	79	[(3) has been convicted of an offense listed] in
80	80	Article 62.001(5), Code of Criminal Procedure; or
81	81	(B) an offense under the laws of another state or
82	82	federal law that contains elements that are substantially similar
83	83	to the elements of an offense listed in Section 37.007(a) or in
84	84	Article 62.001(5), Code of Criminal Procedure; or
85	85	(3) is being paid directly or indirectly by or [(4)]
86	86	has a substantial interest in a management company.
87	87	(b) For purposes of Subsection (a)(3) [(a)(4)], a person has
88	88	a substantial interest in a management company if the person:
89	89	(1) has a controlling interest in the management
90	90	company;
91	91	(2) owns more than 10 percent of the voting interest in
92	92	the management company;
93	93	(3) owns more than $25,000 of the fair market value of
94	94	the management company;
95	95	(4) has a direct or indirect participating interest by
96	96	shares, stock, or otherwise, regardless of whether voting rights
97	97	are included, in more than 10 percent of the profits, proceeds, or
98	98	capital gains of the management company;
99	99	(5) is a member of the board of directors or other
100	100	governing body of the management company;
101	101	(6) serves as an [elected] officer of the management
102	102	company; [or]
103	103	(7) is an employee of the management company;
104	104	(8) is an officer or employee of a contractor of the
105	105	management company; or
106	106	(9) is an officer or employee of a related party of a
107	107	management company, as defined by commissioner rule adopted under
108	108	Section 12.1169.
109	109	SECTION 4. Section 12.1202, Education Code, is amended to
110	110	read as follows:
111	111	Sec. 12.1202. REQUIREMENT FOR [MAJORITY OF] MEMBERS OF
112	112	GOVERNING BODY. (a) In this section, "qualified voter" has the
113	113	meaning assigned by Section 11.002, Election Code.
114	114	(b) A person must be a qualified voter to serve as a member
115	115	[majority of the members] of the governing body of an
116	116	open-enrollment charter school or the governing body of a charter
117	117	holder [must be qualified voters].
118	118	SECTION 5. Section 12.125, Education Code, is amended to
119	119	read as follows:
120	120	Sec. 12.125. CONTRACT FOR MANAGEMENT SERVICES; PUBLIC
121	121	INFORMATION. (a) Any contract, including a contract renewal,
122	122	between an open-enrollment charter school and a management company
123	123	proposing to provide management services to the school must require
124	124	the management company to maintain all records related to the
125	125	management services separately from any other records of the
126	126	management company.
127	127	(b) A contract or proposed contract for management services
128	128	and any record related to the management services is public
129	129	information under Chapter 552, Government Code, and may not be
130	130	excepted from required disclosure under Subchapter C of that
131	131	chapter.
132	132	(c) A member of the governing body of a charter holder, a
133	133	member of the governing body of an open-enrollment charter school,
134	134	or an officer or employee of an open-enrolment charter school may
135	135	not accept a direct or indirect payment from a management company
136	136	under any contract or arrangement.
137	137	(d) A contract for management services must include a
138	138	provision affirming that the management company is not making any
139	139	direct or indirect payments to a member of the governing body of the
140	140	charter holder, a member of the governing body of the
141	141	open-enrollment charter school, or an officer or employee of the
142	142	open-enrollment charter school.
143	143	(e) A contract entered into or an arrangement made in
144	144	violation of Subsection (c) is void as against public policy and
145	145	subject to applicable commissioner action under Section 12.126, and
146	146	no fees may be paid to any person under the contract or under any
147	147	theory of recovery for work performed in connection with a void
148	148	contract.
149	149	SECTION 6. Subchapter D, Chapter 12, Education Code, is
150	150	amended by adding Section 12.1252 to read as follows:
151	151	Sec. 12.1252. FINANCIAL BENEFIT FROM MANAGEMENT COMPANY
152	152	PROHIBITED. A superintendent or administrator serving as
153	153	educational leader or chief executive officer of an open-enrollment
154	154	charter school may not receive any financial benefit for personal
155	155	services performed by the superintendent or administrator serving
156	156	as educational leader or chief executive officer for a management
157	157	company or business entity that conducts or solicits business with
158	158	the school. For purposes of this section, the receipt of
159	159	reimbursement for a reasonable expense is not considered a
160	160	financial benefit.
161	161	SECTION 7. Section 2252.908(a)(2), Government Code, is
162	162	amended to read as follows:
163	163	(2) "Governmental entity" means a municipality,
164	164	county, public school district, open-enrollment charter school
165	165	established under Subchapter D, Chapter 12, Education Code, or
166	166	special-purpose district or authority.
167	167	SECTION 8. (a) Except as provided by Subsection (b) of this
168	168	section, this Act applies beginning with the 2021-2022 school year.
169	169	(b) Section 2252.908, Government Code, as amended by this
170	170	Act, applies only to a contract subject to that section that is
171	171	entered into, amended, or renewed on or after the effective date of
172	172	this Act.
173	173	SECTION 9. This Act takes effect immediately if it receives
174	174	a vote of two-thirds of all the members elected to each house, as
175	175	provided by Section 39, Article III, Texas Constitution. If this
176	176	Act does not receive the vote necessary for immediate effect, this
177	177	Act takes effect September 1, 2021.