By: Creighton S.B. No. 2927 A BILL TO BE ENTITLED AN ACT relating to a contract regarding the operation of a school district campus. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 11.174, Education Code, is amended by adding Subsections (o), and (p) and amending Subsection (h) to read as follows: (h) A [Subject to Subsection (i), a] contract entered into by the board of trustees of a school district and the governing body of an open-enrollment charter school or entity for the operation of a district campus as provided by Subsection (a) must: (1) engage in a thorough vetting process, including exercising due diligence to assess performance, cultural alignment, and shared goals to: (A) ensure accurate projections of student enrollment, average daily attendance, and associated costs to minimize financial discrepancies; and (B) clearly state any shared service fees and include a formula for any adjustment based on actual use or changes in the student population; (2) require that all federal money received by the district for a student at the campus under the Americans with Disabilities Act of 1990 (42 U.S.C. Section 12101 et seq.), Title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. Section 6301 et seq.), and any other supplementary funding identified in the contract is passed directly from the district to the school or entity, without any deduction that is not specifically authorized in the contract; and (3) subject to Subsection (i), include a provision addressing student eligibility for enrollment. (o) Each school year for which the board of trustees of a school district enters into a contract to partner with an open-enrollment charter school or entity to operate a district campus under Subsection (a): (1) the district and open-enrollment charter school or entity shall conduct a financial review of the partnership and reconcile all payments for the operation of the partnership at the end of the school year. (p) The agency: (1) may provide guidance to school districts, open-enrollment charter schools, and entities described by Subsection (a)(2) on contracts to partner to operate a district campus under Subsection (a); and (2) may audit a partnership to operate a district campus under Subsection (a). SECTION 2. A contract entered into or renewed before the effective date of this Act is governed by the law in effect on the date the contract was entered into or renewed, and the former law is continued in effect for that purpose. SECTION 3. This Act takes effect September 1, 2025.