Texas 2025 - 89th Regular

Texas House Bill HB5571 Compare Versions

Version 1 (Old)

Version 2 (New)

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1	1		By: Rodríguez Ramos H.B. No. 5571
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4	6		A BILL TO BE ENTITLED
5	7		AN ACT
6	8		relating to the review, audit, and oversight of the Texas Education
7	9		Agency's administration of open-enrollment charter schools by the
8	10		Sunset Advisory Commission.
9	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	12		SECTION 1. Chapter 325, Government Code, is amended by
11	13		adding Section 325.027 to read as follows:
12	14		Sec. 325.027. REVIEW OF OPEN-ENROLLMENT CHARTER SCHOOLS.
13	15		(a) In 2026 and every third year after that year, the commission
14	16		shall conduct a comprehensive forensic and performance audit of all
15	17		institutional functions, programs, and operations of contracts,
16	18		grants, and administration at the Texas Education Agency relating
17	19		to its administration and oversight of open-enrollment charter
18	20		schools.
19	21		(b) The audit shall identify and prepare for a report:
20	22		(1) all unallowable expenses, including payments,
21	23		purchases, administrative and executive compensation, salary
22	24		transactions, and contracted services and efficiency improvements
23	25		to administration and oversight functions. The report shall
24	26		contain the total compensation of the district superintendent and
25	27		other district governance including bonuses, awards, one-time
26	28		compensation, and any other contributions.
27	29		(2) each real property owned or leased by
28	30		open-enrollment charter schools, including ownership of the
29	31		property, whether the property includes an instructional facility,
30	32		information on each lease or mortgage agreement and the aggregate
31	33		annual and prior five-year amount of any related party payment
32	34		under each lease or mortgage agreement, information about the
33	35		amount and terms of each charter school's bonds and debt service,
34	36		whether a bond is backed by a guarantee from the Permanent School
35	37		Fund, current underlying rating of each bond backed by the Bond
36	38		Guarantee Program, and the aggregate amount of charter schools'
37	39		outstanding bonds;
38	40		(3) each charter school management company that
39	41		provides management services to an open-enrollment charter school.
40	42		The report shall contain the company's name, address, names of
41	43		officers including chief financial officer, and method of
42	44		calculation and amount of annual payment by each charter school to
43	45		each management company and affiliated company;
44	46		(4) all state funds, grants, or public resources used
45	47		for marketing, advertising, or sponsorship purchases. The report
46	48		shall contain open-enrollment charter school expenditures on
47	49		digital, print, radio, television, and social media
48	50		advertisements. The report shall contain sponsorship agreements
49	51		between the charter school and any private entity, including
50	52		payments made for naming rights, endorsements, and promotional
51	53		partnerships,
52	54		(5) conflicts of interest including whether a member
53	55		of the governing body of an open-enrollment charter school has a
54	56		substantial interest in a business entity as described by Section
55	57		171.002, Local Government Code, that contracts with the school.
56	58		(c) The commission shall prepare and provide the audit
57	59		report, including all related findings, by September 1, 2026. The
58	60		report shall be provided to the Speaker of the House, Lieutenant
59	61		Governor, House Appropriations Committee, the Senate Finance
60	62		Committee, and the House Delivery of Government Efficiency
61	63		Committee.
62	64		(d) The commission shall publish the audit report on its
63	65		official website no later than the 45th day after the audit's
64	66		completion. Each summary must remain publicly accessible for at
65	67		least five years and exclude information classified as confidential
66	68		or security-sensitive under state law.
67	69		(e) If the audit conducted under this section identifies
68	70		financial mismanagement, waste, fraud, or noncompliance with state
69	71		law, the Texas Education Agency shall:
70	72		(1) Develop and implement a corrective action plan
71	73		within 90 days;
72	74		(2) Submit progress reports every six months to the
73	75		commission and Legislative Budget Board until all deficiencies are
74	76		resolved.
75	77		(f) Open-enrollment charter schools reviewed by the
76	78		commission under this section are not subject to abolition.
77	79		SECTION 2. This Act takes effect September 1, 2025.