| 1 | 1 | | 88R11422 MM-F |
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| 2 | 2 | | By: Capriglione H.B. No. 3971 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to a financial report filed by an open-enrollment charter |
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| 8 | 8 | | school. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 12.1168(b), Education Code, is amended |
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| 11 | 11 | | to read as follows: |
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| 12 | 12 | | (b) A financial report filed under Section 44.008 by an |
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| 13 | 13 | | open-enrollment charter school must separately disclose: |
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| 14 | 14 | | (1) each [all] financial transaction [transactions] |
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| 15 | 15 | | between the open-enrollment charter school and any related party, |
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| 16 | 16 | | separately stating the: |
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| 17 | 17 | | (A) relationship; |
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| 18 | 18 | | (B) address; |
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| 19 | 19 | | (C) principal; |
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| 20 | 20 | | (D) [,] interest; |
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| 21 | 21 | | (E) annual and total contract payments including |
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| 22 | 22 | | a description of goods or services; [,] and |
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| 23 | 23 | | (F) annual and total lease payments including a |
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| 24 | 24 | | description of the property; [and] |
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| 25 | 25 | | (2) the total compensation and benefits provided by |
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| 26 | 26 | | the school and any related party for each member of the governing |
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| 27 | 27 | | body and each officer and administrator of the school and the |
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| 28 | 28 | | related party; |
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| 29 | 29 | | (3) the name and address of any management company; |
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| 30 | 30 | | and |
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| 31 | 31 | | (4) fees paid during each of the preceding three years |
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| 32 | 32 | | to a management company or to any related party for each good, |
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| 33 | 33 | | service, or item, including: |
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| 34 | 34 | | (A) management services; |
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| 35 | 35 | | (B) branding or licensing; |
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| 36 | 36 | | (C) advertising; |
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| 37 | 37 | | (D) student recruitment; |
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| 38 | 38 | | (E) instructional costs including curriculum and |
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| 39 | 39 | | professional development; |
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| 40 | 40 | | (F) facility development; |
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| 41 | 41 | | (G) student uniforms; and |
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| 42 | 42 | | (H) teacher salaries. |
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| 43 | 43 | | SECTION 2. Section 44.008(f), Education Code, is amended to |
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| 44 | 44 | | read as follows: |
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| 45 | 45 | | (f) An open-enrollment charter school shall provide an |
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| 46 | 46 | | accounting of each parcel of the school's owned or leased real |
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| 47 | 47 | | property, including identifying the: |
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| 48 | 48 | | (1) address; |
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| 49 | 49 | | (2) owner; |
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| 50 | 50 | | (3) purpose and use of each parcel; |
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| 51 | 51 | | (4) name of each campus listed; and |
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| 52 | 52 | | (5) annual and total amount of local, state, and |
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| 53 | 53 | | federal funds used to purchase, lease, or improve each parcel of |
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| 54 | 54 | | property. |
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| 55 | 55 | | SECTION 3. This Act takes effect immediately if it receives |
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| 56 | 56 | | a vote of two-thirds of all the members elected to each house, as |
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| 57 | 57 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 58 | 58 | | Act does not receive the vote necessary for immediate effect, this |
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| 59 | 59 | | Act takes effect September 1, 2023. |
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