By: Bernal H.B. No. 5197 A BILL TO BE ENTITLED AN ACT relating to certain limitations on private primary or secondary schools receiving state money. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 1, Education Code, is amended by adding Section 1.0025 to read as follows: Sec. 1.0025. LIMITATIONS ON PRIVATE SCHOOLS RECEIVING STATE MONEY. (a) In this section, "private school" has the meaning assigned by Section 5.001. (b) This section applies to: (1) a private school that receives state money under an education savings account program or similar program established under a provision of this code through which a child may use state money for nonpublic primary or secondary education, regardless of when that program is established; and (2) a private school belonging to the same network of schools as a private school described by Subdivision (1). (c) Notwithstanding any other law, a private school to which this section applies may not compensate any individual who is not directly related to the teaching of or caring for students enrolled at the school or administering the school's academic programs. This prohibition on compensation includes an individual who made a financial investment directly or indirectly to the private school. (d) The Texas Education Agency shall adopt rules to provide for sanctions for a private school found to be not in compliance with this section. SECTION 2. This Act takes effect September 1, 2023.