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A BILL TO BE ENTITLED
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AN ACT
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relating to transparency in certain legal proceedings and contracts |
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involving a school district and a limit on legal fees that may be |
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spent by a school district in certain legal proceedings. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 44, Education Code, is |
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amended by adding Section 44.045 to read as follows: |
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Sec. 44.045. DISCLOSURE OF CONTRACTS NOT COMPETITIVELY BID. |
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(a) The board of trustees of a school district shall post on the |
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district's Internet website information regarding each contract |
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for which the district did not use competitive bidding to select a |
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vendor. |
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(b) The information required under Subsection (a) must |
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include: |
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(1) the amount to be paid by the district under the |
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contract; |
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(2) the person to whom the contract is awarded; and |
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(3) the duration of the contract. |
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SECTION 2. Subchapter Z, Chapter 44, Education Code, is |
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amended by adding Section 44.903 to read as follows: |
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Sec. 44.903. BOARD AUTHORIZATION TO SETTLE OR CONTEST |
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LAWSUITS; REPORTS TO AGENCY. (a) This section applies only to: |
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(1) a lawsuit against a school district involving: |
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(A) a dispute over the amount of property taxes |
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owed to the district; |
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(B) a violation of parental rights; |
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(C) the acquisition of property; or |
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(D) a dispute between the district and a district |
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employee; or |
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(2) a due process complaint against a school district |
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alleging a violation of federal or state special education laws. |
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(b) Except as otherwise provided by this section, a school |
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district may not spend more than $10,000 in legal fees to defend the |
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district in a legal proceeding to which this section applies. |
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(c) If a school district spends an amount in legal fees to |
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defend the district in a legal proceeding to which this section |
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applies that is at least 80 percent of the limit imposed by |
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Subsection (b) and intends to continue the proceeding, the district |
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superintendent shall submit to the board of trustees of the |
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district a report that: |
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(1) states that the current cost in legal fees in the |
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proceeding is approaching the limit imposed by Subsection (b); and |
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(2) includes: |
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(A) a summary of the facts, legal claims, |
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defenses, and relief sought in the proceeding; and |
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(B) an estimate of the total amount in legal fees |
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that will be required to defend the district in the proceeding. |
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(d) A report submitted under Subsection (c) is confidential |
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and not subject to disclosure under Chapter 552, Government Code. |
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(e) As soon as practicable after receipt of a report under |
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Subsection (c), the board of trustees of the school district shall: |
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(1) direct the district to settle the legal proceeding |
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before the total cost in legal fees exceeds the limit imposed by |
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Subsection (b); or |
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(2) authorize the district to spend an amount in legal |
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fees in excess of the limit imposed by Subsection (b) to defend the |
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district in the legal proceeding. |
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(f) Each month, a school district shall post on the |
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district's Internet website and submit to the agency a report |
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regarding each ongoing legal proceeding to which this section |
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applies for which the district's legal fees exceed the limit |
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imposed by Subsection (b), including: |
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(1) the general subject matter of the proceeding; and |
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(2) the total amount of legal fees incurred by the |
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district for the proceeding as of the date on which the report is |
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made. |
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(g) A report required under Subsection (f) may not include |
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personally identifiable student information and must comply with |
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the Family Educational Rights and Privacy Act of 1974 (20 U.S.C. |
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Section 1232g). |
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(h) Each month, the agency shall compile and post on the |
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agency's Internet website the information reported to the agency |
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under Subsection (f) for the preceding month. The information must |
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be both aggregated statewide and disaggregated by school district. |
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(i) The commissioner may adopt rules as necessary to |
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implement this section. |
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SECTION 3. Section 44.903, Education Code, as added by this |
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Act, applies only to a legal proceeding to which that section |
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applies that is filed on or after the effective date of this Act. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2023. |