88R3563 JTZ-D
 
  By: Hall S.B. No. 392
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to transparency in certain legal proceedings and contracts
  involving a school district and a limit on legal fees that may be
  spent by a school district in certain legal proceedings.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 44, Education Code, is
  amended by adding Section 44.045 to read as follows:
         Sec. 44.045.  DISCLOSURE OF CONTRACTS NOT COMPETITIVELY BID.
  (a)  The board of trustees of a school district shall post on the
  district's Internet website information regarding each contract
  for which the district did not use competitive bidding to select a
  vendor.
         (b)  The information required under Subsection (a) must
  include:
               (1)  the amount to be paid by the district under the
  contract;
               (2)  the person to whom the contract is awarded; and
               (3)  the duration of the contract.
         SECTION 2.  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
  LAWSUITS; REPORTS TO AGENCY.  (a)  This section applies only to:
               (1)  a lawsuit against a school district involving:
                     (A)  a dispute over the amount of property taxes
  owed to the district;
                     (B)  a violation of parental rights;
                     (C)  the acquisition of property; or
                     (D)  a dispute between the district and a district
  employee; or
               (2)  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 3.  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 4.  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, 2023.