Cain’s $10K Legal Fee Cap Ends At A Board Vote

The text as introduced · 600 words

89R2427 JTZ-D

By: Cain
H.B. No. 3170

A BILL TO BE ENTITLED

AN ACT

relating to transparency in special education legal proceedings

involving a school district and a limit on legal fees that may be

spent by a school district in special education legal proceedings.

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

SECTION 1. Subchapter Z, Chapter 44, Education Code, is

amended by adding Section 44.903 to read as follows:

Sec. 44.903. BOARD AUTHORIZATION TO SETTLE OR CONTEST

SPECIAL EDUCATION LAWSUITS; REPORTS TO AGENCY. (a) This section

applies only to a due process complaint against a school district

alleging a violation of federal or state special education laws.

(b) Except as otherwise provided by this section, a school

district may not spend more than $10,000 in legal fees to defend the

district in a legal proceeding to which this section applies.

(c) If a school district spends an amount in legal fees to

defend the district in a legal proceeding to which this section

applies that is at least 80 percent of the limit imposed by

Subsection (b) and intends to continue the proceeding, the district

superintendent shall submit to the board of trustees of the

district a report that:

(1) states that the current cost in legal fees in the

proceeding is approaching the limit imposed by Subsection (b); and

(2) includes:

(A) a summary of the facts, legal claims,

defenses, and relief sought in the proceeding; and

(B) an estimate of the total amount in legal fees

that will be required to defend the district in the proceeding.

(d) A report submitted under Subsection (c) is confidential

and not subject to disclosure under Chapter 552, Government Code.

(e) As soon as practicable after receipt of a report under

Subsection (c), the board of trustees of the school district shall:

(1) direct the district to settle the legal proceeding

before the total cost in legal fees exceeds the limit imposed by

Subsection (b); or

(2) authorize the district to spend an amount in legal

fees in excess of the limit imposed by Subsection (b) to defend the

district in the legal proceeding.

(f) Each month, a school district shall post on the

district's Internet website and submit to the agency a report

regarding each ongoing legal proceeding to which this section

applies for which the district's legal fees exceed the limit

imposed by Subsection (b), including:

(1) the general subject matter of the proceeding; and

(2) the total amount of legal fees incurred by the

district for the proceeding as of the date on which the report is

made.

(g) A report required under Subsection (f) may not include

personally identifiable student information and must comply with

the Family Educational Rights and Privacy Act of 1974 (20 U.S.C.

Section 1232g).

(h) Each month, the agency shall compile and post on the

agency's Internet website the information reported to the agency

under Subsection (f) for the preceding month. The information must

be both aggregated statewide and disaggregated by school district.

(i) The commissioner may adopt rules as necessary to

implement this section.

SECTION 2. Section 44.903, Education Code, as added by this

Act, applies only to a legal proceeding to which that section

applies that is filed on or after the effective date of this Act.

SECTION 3. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.