| 1 | 1 | | By: Creighton S.B. No. 2927 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | A BILL TO BE ENTITLED |
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| 7 | 7 | | AN ACT |
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| 8 | 8 | | relating to a contract regarding the operation of a school district |
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| 9 | 9 | | campus. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 11.174, Education Code, is amended by |
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| 12 | 12 | | adding Subsections (o), and (p) and amending Subsection (h) to read |
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| 13 | 13 | | as follows: |
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| 14 | 14 | | (h) A [Subject to Subsection (i), a] contract entered into |
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| 15 | 15 | | by the board of trustees of a school district and the governing body |
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| 16 | 16 | | of an open-enrollment charter school or entity for the operation of |
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| 17 | 17 | | a district campus as provided by Subsection (a) must: |
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| 18 | 18 | | (1) engage in a thorough vetting process, including |
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| 19 | 19 | | exercising due diligence to assess performance, cultural |
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| 20 | 20 | | alignment, and shared goals to: |
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| 21 | 21 | | (A) ensure accurate projections of student |
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| 22 | 22 | | enrollment, average daily attendance, and associated costs to |
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| 23 | 23 | | minimize financial discrepancies; and |
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| 24 | 24 | | (B) clearly state any shared service fees and |
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| 25 | 25 | | include a formula for any adjustment based on actual use or changes |
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| 26 | 26 | | in the student population; |
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| 27 | 27 | | (2) require that all federal money received by the |
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| 28 | 28 | | district for a student at the campus under the Americans with |
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| 29 | 29 | | Disabilities Act of 1990 (42 U.S.C. Section 12101 et seq.), Title I |
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| 30 | 30 | | of the Elementary and Secondary Education Act of 1965 (20 U.S.C. |
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| 31 | 31 | | Section 6301 et seq.), and any other supplementary funding |
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| 32 | 32 | | identified in the contract is passed directly from the district to |
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| 33 | 33 | | the school or entity, without any deduction that is not |
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| 34 | 34 | | specifically authorized in the contract; and |
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| 35 | 35 | | (3) subject to Subsection (i), include a provision |
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| 36 | 36 | | addressing student eligibility for enrollment. |
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| 37 | 37 | | (o) Each school year for which the board of trustees of a |
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| 38 | 38 | | school district enters into a contract to partner with an |
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| 39 | 39 | | open-enrollment charter school or entity to operate a district |
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| 40 | 40 | | campus under Subsection (a): |
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| 41 | 41 | | (1) the district and open-enrollment charter school or |
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| 42 | 42 | | entity shall conduct a financial review of the partnership and |
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| 43 | 43 | | reconcile all payments for the operation of the partnership at the |
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| 44 | 44 | | end of the school year. |
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| 45 | 45 | | (p) The agency: |
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| 46 | 46 | | (1) may provide guidance to school districts, |
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| 47 | 47 | | open-enrollment charter schools, and entities described by |
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| 48 | 48 | | Subsection (a)(2) on contracts to partner to operate a district |
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| 49 | 49 | | campus under Subsection (a); and |
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| 50 | 50 | | (2) may audit a partnership to operate a district |
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| 51 | 51 | | campus under Subsection (a). |
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| 52 | 52 | | SECTION 2. A contract entered into or renewed before the |
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| 53 | 53 | | effective date of this Act is governed by the law in effect on the |
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| 54 | 54 | | date the contract was entered into or renewed, and the former law is |
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| 55 | 55 | | continued in effect for that purpose. |
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| 56 | 56 | | SECTION 3. This Act takes effect September 1, 2025. |
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