Charters Lose 3x What They Spend On Out-Of-State Schools

The text as introduced · 332 words

89R1659 KJE-D

By: Simmons
H.B. No. 1878

A BILL TO BE ENTITLED

AN ACT

relating to the misuse of money received for an open-enrollment

charter school to support an out-of-state school.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter D, Chapter 12, Education Code, is

amended by adding Section 12.1075 to read as follows:

Sec. 12.1075. MISUSE OF MONEY FOR OUT-OF-STATE SCHOOL. (a)

A charter holder may not spend money received for an

open-enrollment charter school under Section 12.106 to support a

school located outside this state. This subsection does not apply

to money spent under a contract to provide goods or services to the

open-enrollment charter school for which the money was received.

(b) If the commissioner determines that a charter holder has

violated this section, the commissioner shall withhold from the

amount to which the charter holder is entitled under Section 12.106

for the school year during which the violation occurred an amount

equal to three times the amount spent in violation of this section.

The commissioner may adjust the charter holder's entitlement under

that section for subsequent school years as necessary to recover

any remaining amount owed.

SECTION 2. Section 12.115(c), Education Code, is amended to

read as follows:

(c) The commissioner shall revoke the charter of an

open-enrollment charter school if the charter holder has :

(1) [ the charter holder has ] been assigned an

unacceptable performance rating under Subchapter C, Chapter 39, for

the three preceding school years;

(2) [ the charter holder has ] been assigned a financial

accountability performance rating under Subchapter D, Chapter 39,

indicating financial performance lower than satisfactory for the

three preceding school years; [ or ]

(3) [ the charter holder has ] been assigned any

combination of the ratings described by Subdivision (1) or (2) for

the three preceding school years ; or

(4) spent at least $100,000 in violation of Section

12.1075 .

SECTION 3. This Act takes effect September 1, 2025.