89R13795 MM-F By: Schoolcraft H.B. No. 122 A BILL TO BE ENTITLED AN ACT relating to the capacity and usage of school district facilities and the transfer of students between school districts. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter C, Chapter 7, Education Code, is amended by adding Section 7.0611 to read as follows: Sec. 7.0611. FACILITY USAGE REPORT. (a) In this section, "instructional facility" has the meaning assigned by Section 46.001. (b) The agency by rule shall require each school district to annually report the following information in the form and manner prescribed by the agency: (1) the square footage of each district facility and the acreage of land on which each facility sits; (2) the total student capacity for each instructional facility on a district campus; (3) for each district campus: (A) the enrollment capacity; and (B) the number of students currently enrolled; (4) whether a district facility is used by one or more campuses and the campus identifier of each campus that uses the facility; (5) what each district facility is used for, including: (A) an instructional facility; (B) a career and technology center; (C) an administrative building; (D) a food service facility; and (E) a transportation facility; (6) whether the district has vacant land and the acreage of that land; and (7) whether each district facility is leased or owned. (c) From the information submitted under Subsection (b), the agency shall produce and make available to the public on the agency's Internet website an annual report on school district land and facilities. The agency may combine the report required under this section with any other required report to avoid multiplicity of reports. (d) If the agency determines information provided under Subsection (b) would create a security risk, that information is considered confidential for purposes of Chapter 552, Government Code, and may not be disclosed in the annual report under Subsection (c). (e) The commissioner may adopt rules as necessary to implement this section. SECTION 2. Section 25.001(h), Education Code, is amended to read as follows: (h) In addition to the penalty provided by Section 37.10, Penal Code, a person who knowingly falsifies information on a form required for enrollment of a student in a school district is liable to the district if the student is not eligible for enrollment in the district but is enrolled on the basis of the false information. The person is liable, for the period during which the ineligible student is enrolled, for [the greater of: [(1) the maximum tuition fee the district may charge under Section 25.038; or [(2)] the amount the district has budgeted for each student as maintenance and operating expenses. SECTION 3. Section 25.036, Education Code, is amended to read as follows: Sec. 25.036. TRANSFER OF STUDENT. (a) Any child, other than a high school graduate, who is younger than 21 years of age and eligible for enrollment on September 1 of any school year may apply to transfer for in-person instruction annually from the child's school district of residence to another district in this state [if both the receiving district and the applicant parent or guardian or person having lawful control of the child jointly approve and timely agree in writing to the transfer]. (b) A transfer application [agreement] under this section shall be filed and preserved as a receiving district record for audit purposes of the agency. (c) A school district may deny approval of a transfer under this section only if: (1) the district or a school in the district to which a student seeks to transfer is at full student capacity or has more requests for transfers than available positions after the district has filled available positions in accordance with Subsection (e) and has satisfied the requirement provided under Subsection (f); (2) before the application deadline for the applicable school year, the district adopted a policy that provides for the exclusion of a student who has a documented history of a criminal offense, a juvenile court adjudication, or discipline problems under Subchapter A, Chapter 37, and the student meets the conditions for exclusion under the policy; or (3) approving the transfer would supersede a court-ordered desegregation plan. (d) For the purpose of determining whether a school in a school district is at full student capacity under Subsection (c)(1), the district may not consider equity as a factor in the district's decision-making process. (e) A school district that has more applicants for transfer under this section than available positions must fill the available positions by lottery and must give priority to applicants in the following order: (1) students who: (A) do not reside in the district but were enrolled in the district in the preceding school year; or (B) are dependents of an employee of the receiving district; and (2) students: (A) receiving special education services under Subchapter A, Chapter 29; (B) who are dependents of military personnel; (C) who are dependents of law enforcement personnel; (D) in foster care; (E) who are the subject of court-ordered modification of an order establishing conservatorship or possession and access; or (F) who are siblings of a student who is enrolled in the receiving district at the time the student seeks to transfer. (f) A school district may deny approval of a transfer under Subsection (c)(1) only if the district annually submits the information regarding student capacity and facility usage by campus required under Section 7.0611. (g) Unless otherwise required by law, a receiving school district may, but is not required to, provide transportation to a student who transfers to the receiving district under this section. (h) A receiving school district may revoke, at any time during the school year, the approval of the student's transfer only if: (1) the student engages in conduct: (A) for which a student is required or permitted to be removed from class and placed in a disciplinary alternative education program under Section 37.006; or (B) for which a student is required or permitted to be expelled from school under Section 37.007; and (2) before revoking approval of the student's transfer, the district: (A) ensures the student is afforded appropriate due process and complies with any requirements of state law or district policy relating to the expulsion of a student to the same extent as if the student were being expelled under Section 37.007; and (B) if the student is a child with a disability under the Individuals with Disabilities Education Act (20 U.S.C. Section 1400 et seq.), or the district suspects or has a reason to suspect that the student may be a child with a disability, complies with all federal and state requirements regarding revoking the approval of the student's transfer. (i) In the case of a transfer under this section, a child's school district of residence shall provide the receiving district with the child's disciplinary record and any threat assessment involving the child's behavior conducted under Section 37.115. SECTION 4. Section 25.038, Education Code, is amended to read as follows: Sec. 25.038. TUITION FEE FOR TRANSFER STUDENTS PAID BY SCHOOL DISTRICT. (a) Except as provided by Subsection (b), a [The] receiving school district may charge a tuition fee to another school district, if the receiving district has contracted with the other district to educate the other district's students, to the extent that the district's actual expenditure per student in average daily attendance, as determined by its board of trustees, exceeds the sum the district benefits from state aid sources as provided by Section 25.037. However, unless a tuition fee is prescribed and set out in a transfer agreement before its execution by the parties, an increase in tuition charge may not be made for the year of that transfer that exceeds the tuition charge, if any, of the preceding school year. (b) A school district may not charge a tuition fee under this section for a student transfer authorized under Section 25.036. SECTION 5. Subchapter B, Chapter 25, Education Code, is amended by adding Section 25.048 to read as follows: Sec. 25.048. LIMITATION ON DENYING TRANSFER. A school district may deny approval of a student's transfer on the basis of a lack of capacity only if the district has reported capacity and facility usage information for the applicable school year under Section 7.0611. SECTION 6. The following provisions are repealed: (1) Section 25.0344, Education Code, as added by Chapter 583 (H.B. 2892), Acts of the 88th Legislature, Regular Session, 2023; and (2) Section 25.0344, Education Code, as added by Chapter 322 (H.B. 1959), Acts of the 88th Legislature, Regular Session, 2023. SECTION 7. Notwithstanding any other provision of this Act, a student accepted for transfer to a school district for the 2025-2026 school year under Section 25.036, Education Code, on a date occurring before the effective date of this Act is entitled to transfer to the district for that school year in the same manner as any other student accepted for transfer to the district for that school year on a date occurring on or after the effective date of this Act. SECTION 8. To the extent of any conflict, this Act prevails over another Act of the 89th Legislature, Regular Session, 2025, relating to nonsubstantive additions to and corrections in enacted codes. SECTION 9. This Act applies beginning with the 2025-2026 school year. SECTION 10. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2025.