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A BILL TO BE ENTITLED
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AN ACT
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relating to the misuse of money received for an open-enrollment |
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charter school to support an out-of-state school. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 12, Education Code, is |
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amended by adding Section 12.1075 to read as follows: |
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Sec. 12.1075. MISUSE OF MONEY FOR OUT-OF-STATE SCHOOL. (a) |
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A charter holder may not spend money received for an |
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open-enrollment charter school under Section 12.106 to support a |
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school located outside this state. This subsection does not apply |
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to money spent under a contract to provide goods or services to the |
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open-enrollment charter school for which the money was received. |
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(b) If the commissioner determines that a charter holder has |
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violated this section, the commissioner shall withhold from the |
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amount to which the charter holder is entitled under Section 12.106 |
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for the school year during which the violation occurred an amount |
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equal to three times the amount spent in violation of this section. |
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The commissioner may adjust the charter holder's entitlement under |
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that section for subsequent school years as necessary to recover |
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any remaining amount owed. |
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SECTION 2. Section 12.115(c), Education Code, is amended to |
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read as follows: |
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(c) The commissioner shall revoke the charter of an |
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open-enrollment charter school if the charter holder has: |
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(1) [the charter holder has] been assigned an |
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unacceptable performance rating under Subchapter C, Chapter 39, for |
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the three preceding school years; |
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(2) [the charter holder has] been assigned a financial |
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accountability performance rating under Subchapter D, Chapter 39, |
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indicating financial performance lower than satisfactory for the |
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three preceding school years; [or] |
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(3) [the charter holder has] been assigned any |
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combination of the ratings described by Subdivision (1) or (2) for |
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the three preceding school years; or |
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(4) spent at least $100,000 in violation of Section |
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12.1075. |
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SECTION 3. This Act takes effect September 1, 2025. |