Enrolled Bill Summary

Senate Bill 1454	Senate Author:  Taylor et al.
Effective:  6-10-19	House Sponsor:  Huberty

            Senate Bill 1454 amends the Education Code to require all remaining funds that are attributable to state funding or the disposition of property and that are held by a charter holder for an open‑enrollment charter school that has ceased to operate, after payable obligations are satisfied, to be returned to the Texas Education Agency (TEA) for deposit in the charter school liquidation fund, except under certain circumstances under which TEA may approve a transfer of the remaining funds to another charter holder. The bill prohibits certain uses of foundation school program funding received by a charter holder and sets out provisions relating to the definition of a related party for purposes of categorizing certain transactions of a charter school or charter holder. The bill, among other provisions, authorizes a commissioner of education audit of an applicable charter entity to include the review of real property transactions under certain circumstances and requires a charter school's annual audit report to disclose certain transactions between the school and a related party and to account for each parcel of the school's real property, including by identifying relevant funding sources.

            Senate Bill 1454 provides for the status under state law of property leased with foundation school program funding received by a charter holder and requires the consent of TEA for the transfer, sale, or disposition of such property if the charter holder has received notice of certain actions affecting or potentially affecting the charter or if the applicable charter school has otherwise ceased to operate. The bill sets out further provisions relating to the disposition, transfer, or sale of property and other assets attributable to state funding of a charter school that has ceased to operate, provides for related closing procedures, and sets out provisions relating to TEA disposition and use of any reclaimed state funding.