| 1 | 1 | | 89R1659 KJE-D |
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| 2 | 2 | | By: Simmons H.B. No. 1878 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the misuse of money received for an open-enrollment |
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| 10 | 10 | | charter school to support an out-of-state school. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Subchapter D, Chapter 12, Education Code, is |
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| 13 | 13 | | amended by adding Section 12.1075 to read as follows: |
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| 14 | 14 | | Sec. 12.1075. MISUSE OF MONEY FOR OUT-OF-STATE SCHOOL. (a) |
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| 15 | 15 | | A charter holder may not spend money received for an |
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| 16 | 16 | | open-enrollment charter school under Section 12.106 to support a |
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| 17 | 17 | | school located outside this state. This subsection does not apply |
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| 18 | 18 | | to money spent under a contract to provide goods or services to the |
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| 19 | 19 | | open-enrollment charter school for which the money was received. |
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| 20 | 20 | | (b) If the commissioner determines that a charter holder has |
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| 21 | 21 | | violated this section, the commissioner shall withhold from the |
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| 22 | 22 | | amount to which the charter holder is entitled under Section 12.106 |
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| 23 | 23 | | for the school year during which the violation occurred an amount |
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| 24 | 24 | | equal to three times the amount spent in violation of this section. |
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| 25 | 25 | | The commissioner may adjust the charter holder's entitlement under |
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| 26 | 26 | | that section for subsequent school years as necessary to recover |
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| 27 | 27 | | any remaining amount owed. |
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| 28 | 28 | | SECTION 2. Section 12.115(c), Education Code, is amended to |
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| 29 | 29 | | read as follows: |
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| 30 | 30 | | (c) The commissioner shall revoke the charter of an |
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| 31 | 31 | | open-enrollment charter school if the charter holder has: |
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| 32 | 32 | | (1) [the charter holder has] been assigned an |
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| 33 | 33 | | unacceptable performance rating under Subchapter C, Chapter 39, for |
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| 34 | 34 | | the three preceding school years; |
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| 35 | 35 | | (2) [the charter holder has] been assigned a financial |
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| 36 | 36 | | accountability performance rating under Subchapter D, Chapter 39, |
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| 37 | 37 | | indicating financial performance lower than satisfactory for the |
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| 38 | 38 | | three preceding school years; [or] |
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| 39 | 39 | | (3) [the charter holder has] been assigned any |
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| 40 | 40 | | combination of the ratings described by Subdivision (1) or (2) for |
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| 41 | 41 | | the three preceding school years; or |
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| 42 | 42 | | (4) spent at least $100,000 in violation of Section |
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| 43 | 43 | | 12.1075. |
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| 44 | 44 | | SECTION 3. This Act takes effect September 1, 2025. |
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