By: Paxton, et al. S.B. No. 418
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the transfer of students between public schools.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 25.001(h), Education Code, is amended to
  read as follows:
         (h)  In addition to the penalty provided by Section 37.10,
  Penal Code, a person who knowingly falsifies information on a form
  required for enrollment of a student in a school district is liable
  to the district if the student is not eligible for enrollment in the
  district but is enrolled on the basis of the false information.  The
  person is liable, for the period during which the ineligible
  student is enrolled, for [the greater of:
               [(1)  the maximum tuition fee the district may charge
  under Section 25.038; or
               [(2)]  the amount the district has budgeted for each
  student as maintenance and operating expenses.
         SECTION 2.  Section 25.035, Education Code, is amended to
  read as follows:
         Sec. 25.035.  TRANSFERS BETWEEN DISTRICTS OR COUNTIES. The
  boards of trustees of two or more [adjoining] school districts or
  the boards of county school trustees of two or more [adjoining]
  counties may, [by agreement and] in accordance with Sections
  25.032, 25.033, and 25.034, arrange for the transfer and assignment
  of any student from the jurisdiction of one board to that of
  another. [In the case of the transfer and assignment of a student
  under this section, the participating governing boards shall also
  agree to the transfer of school funds or other payments
  proportionate to the transfer of attendance.]
         SECTION 3.  Section 25.036, Education Code, is amended to
  read as follows:
         Sec. 25.036.  TRANSFER OF STUDENT.  (a)  Any child, other
  than a high school graduate, who is younger than 21 years of age and
  eligible for enrollment on September 1 of any school year may apply
  to transfer [annually] from the child's school district [of
  residence] to any public school [another district] in this state
  that offers the appropriate grade level and has capacity, as
  determined under Section 25.046 [if both the receiving district and
  the applicant parent or guardian or person having lawful control of
  the child jointly approve and timely agree in writing to the
  transfer].
         (b)  Before the beginning of each school year, a school
  district shall:
               (1)  require a transfer applicant under Subsection (a)
  to complete and submit the district's transfer application form by
  a reasonable deadline established by the district; and
               (2)  subject to Subsection (g), admit each eligible
  transfer applicant until enrollment at the campus reaches capacity,
  as determined under Section 25.046.
         (c)  If a school district receives more eligible transfer
  applications for a district campus or a specific grade level at a
  district campus than the district has capacity for at that campus or
  in that grade level, as determined under Section 25.046, the
  district shall fill the available positions by lottery.  A school
  district shall offer to a student who the district does not enroll
  due to lack of capacity an available position, if any, in the
  appropriate grade level at another district campus.
         (d)  A school district that must fill positions by lottery
  under Subsection (c) shall, in developing the lottery system,
  ensure priority is given to applicants in the following order:
               (1)  students residing in the receiving district;
               (2)  students enrolled as transfer students at another
  campus in the receiving district;
               (3)  students who are dependents of an employee of the
  receiving district;
               (4)  students receiving special education services
  under Subchapter A, Chapter 29;
               (5)  students who are dependents of military personnel;
               (6)  students who are dependents of law enforcement
  personnel;
               (7)  students in foster care;
               (8)  students who are the subject of court-ordered
  modification of an order establishing conservatorship or
  possession and access; and
               (9)  students who are siblings of a student who is
  enrolled in the receiving district at the time the student seeks to
  transfer.
         (e)  A school district that receives more eligible transfer
  applications for a district campus or a specific grade level at a
  district campus than the district may enroll at the capacity
  determined under Section 25.046 for that campus or grade level
  shall establish and maintain a waitlist for transfer applicants who
  are not admitted.
         (f)  If a position at a school district campus with a
  waitlist under Subsection (e) becomes available after the start of
  the school year, the district shall first admit transfer applicants
  according to that waitlist and then admit any additional transfer
  applicants in the order in which those additional transfer
  applications are received.
         (g)  A school district may deny approval of a transfer under
  this section only if:
               (1)  the district or a school in the district to which a
  student seeks to transfer is at full student capacity or has more
  requests for transfers than available positions;
               (2)  at the time a student seeks to transfer:
                     (A)  the student is:
                           (i)  suspended or expelled by the district
  in which the student is enrolled; or
                           (ii)  placed in a disciplinary alternative
  education program or a juvenile justice alternative education
  program; or
                     (B)  disciplinary proceedings are pending against
  the student in the district in which the student is enrolled for
  conduct for which the student:
                           (i)  may be placed in out-of-school
  suspension in accordance with the district's student code of
  conduct;
                           (ii)  is required or permitted to be removed
  from class and placed in a disciplinary alternative education
  program under Section 37.006; or
                           (iii)  is required or permitted to be
  expelled under Section 37.007; or
               (3)  approving the transfer would supersede a
  court-ordered desegregation plan.
         (h)  A school district that denies approval of a transfer
  under this section shall inform the applicant in writing of the
  reason for denying approval of the applicant's transfer.
         (i)  A student who transfers to another school district under
  this section may not be charged tuition. The student is included in
  the average daily attendance of the district to which the student
  transfers, beginning on the date the student begins attending
  classes at that district.
         (j)  A receiving school district may, but is not required to,
  provide transportation to a student who transfers to the receiving
  district under this section.
         (k)  A receiving school district may revoke, at any time
  during the school year, the approval of the student's transfer if
  the student:
               (1)  fails to comply with a condition specified in the
  agreement that is:
                     (A)  a condition specified in the student code of
  conduct under Section 37.001(a)(2);
                     (B)  a circumstance specified in the student code
  of conduct under Section 37.001(a)(3) that may result in
  out-of-school suspension;
                     (C)  conduct for which a student is required or
  permitted to be removed from class and placed in a disciplinary
  alternative education program under Section 37.006; or
                     (D)  conduct for which a student is required or
  permitted to be expelled from school under Section 37.007; or
               (2)  fails to maintain a specified school attendance
  rate.
         (l)  A student who transfers to another school district or
  district campus as provided by this section may remain at the
  receiving campus until that student completes the highest grade
  level offered at the campus.
         (m)  Once a student who transfers to another school district
  or district campus as provided by this section completes the
  highest grade level offered at the receiving campus, the student
  must reapply to continue attending school in the receiving
  district.  The district must prioritize admitting the student as
  provided by Subsection (d).
         (n)  A school district may not deny admission to a student
  who is currently enrolled in the district, including a student
  enrolled as a transfer student at another campus in the district,
  for the purpose of accepting a transfer applicant under this
  section.
         (o)  A school district may not take any adverse action
  against a student enrolled as a transfer student in the district
  based on the fact that the district charged a tuition fee for the
  student to attend school in the district for a previous school year
  under former Section 25.038.
         (p)  The commissioner shall adopt rules necessary to
  implement this section, including rules establishing:
               (1)  an admissions lottery, as described by Subsection
  (c), and a waitlist as described by Subsection (e); and
               (2)  procedures to ensure this section complies with
  state and federal law regarding confidentiality of student medical
  or educational information, including the Health Insurance
  Portability and Accountability Act of 1996 (42 U.S.C. Section 1320d
  et seq.) and the Family Educational Rights and Privacy Act of 1974
  (20 U.S.C. Section 1232g). [A transfer agreement under this section
  shall be filed and preserved as a receiving district record for
  audit purposes of the agency.]
         SECTION 4.  Subchapter B, Chapter 25, Education Code, is
  amended by adding Sections 25.046 and 25.047 to read as follows:
         Sec. 25.046.  TRANSFER CAPACITY; DISTRICT POLICY.  (a)  
  Except as provided by Subsection (c), each year on the first day of
  January, April, July, and October, the board of trustees of a school
  district shall determine the capacity of each district campus and
  the capacity of each grade level offered at each campus. For
  purposes of this section, the capacity of a district campus or a
  grade level at that campus is the total number of students that may
  be admitted at the campus or at that grade level, as applicable,
  less the students who are currently enrolled at that campus or at
  that grade level, as applicable.  Based on the board's
  determination of campus or grade level capacity and current student
  enrollment, the district shall identify the number of available
  positions at each campus and for each grade level.  In determining
  campus and grade level capacity, the district shall consult the
  most recent district facility plan, including:
               (1)  a facility plan created as part of a district bond
  proposal; or
               (2)  a long-range facility plan created as part of a
  capital improvement project for which construction services are
  procured under Chapter 2269, Government Code, in accordance with
  Section 44.031(a)(5) of this code.
         (b)  The district shall post for each campus in the district
  on the district's Internet website, if the district maintains a
  website, the most recent determination of campus and grade level
  capacity.  If the district does not maintain a website, the district
  shall make the information required under this subsection available
  to the public at an administrative office of the district.
         (c)  A school district is not required to determine the
  capacity of a new instructional facility, as defined by Section
  48.152, in the first school year in which students attend the new
  instructional facility.
         (d)  The board of trustees of a school district shall adopt a
  written policy that meets the requirements adopted by the
  commissioner under Subsection (f) for the admission of a transfer
  applicant under this subchapter.  The board shall make the policy
  available to the public in the same manner the district makes
  available a district's determination of campus and grade level
  capacity under Subsection (b).  The policy must include:
               (1)  adoption of a transfer application form;
               (2)  the provision of the address of the district
  administrative office where a person may access the district's
  determination of campus and grade level capacity, if the district
  does not maintain an Internet website; and
               (3)  the provision of information regarding available
  options for transportation provided by the district or in the
  community.
         (e)  The agency shall post on the agency's Internet website
  information regarding each school district's policy adopted under
  this section and each district's campus or grade level capacity
  determinations under Subsection (a).
         (f)  The commissioner shall adopt rules and prescribe
  procedures necessary to implement this section, including by
  developing required policies and forms for use by a school district
  in complying with Subsection (d).  In adopting rules to implement
  this section, the commissioner shall consider feedback from
  districts and shall prioritize:
               (1)  flexibility of access for students;
               (2)  encouraging districts to accommodate student
  transfers; and
               (3)  preventing districts from discouraging student
  transfers.
         Sec. 25.047.  REPORTING AND AUDIT REQUIREMENTS. (a)  
  Subject to Subsection (b), each school district shall annually
  submit not later than the last Friday in October of each school year
  a report to the agency regarding the transfer of students to and
  from the district during the previous school year.  The report must
  include:
               (1)  for each district campus, the quarterly campus and
  grade level capacity determinations under Section 25.046;
               (2)  for each campus, the number of transfer
  applications for transfers to that campus the district received,
  the number of applications that were granted, and the number of
  applications that were denied, including the reason for the denial,
  during the preceding school year;
               (3)  the information described by Subdivisions (1) and
  (2) aggregated for all campuses in the district; and
               (4)  for the purposes of demographic analysis, any
  information required by the commissioner as necessary to identify
  each student admitted to or denied admission to a campus in the
  district who is or was previously enrolled in a public school in
  this state.
         (b)  A school district with only one campus serving each
  grade level is exempt from Subsection (a)(3).
         (c)  Not later than March 15 of each year, the agency shall
  post on the agency's Internet website a report on the transfer and
  assignment of students.  The report must include:
               (1)  a summary of school district admission practices
  relating to student transfer admissions;
               (2)  for the state, the aggregated data reported under
  Subsection (a);
               (3)  for each district, the aggregated data reported
  under Subsection (a);
               (4)  a demographic analysis of the students
  transferring districts;
               (5)  a demographic analysis of the students
  transferring between campuses within the same district;
               (6)  for each district, the number of transfer
  applicants seeking admission or withdrawal, showing the potential
  net change in enrollment; and
               (7)  for each district, the actual number of students
  who transferred into or out of the district, showing the actual net
  change in enrollment.
         (d)  Every sixth year, the agency shall publish a study of
  statewide transfer trends that includes:
               (1)  the total number of students transferring
  districts and of students transferring between campuses within the
  same district;
               (2)  using data from the previous six school years, an
  analysis at the state and district level of changes in:
                     (A)  the number of school districts and campuses
  admitting transfer students;
                     (B)  the number of students transferring
  districts; and
                     (C)  the number of students transferring between
  campuses within the same district;
               (3)  a demographic analysis of the students
  transferring districts and of the students transferring between
  campuses within the same district;
               (4)  using data from the previous six school years, an
  analysis of the patterns of student movement between districts and
  campuses, including a description of any characteristics that are
  correlated with students transferring to or away from districts or
  schools;
               (5)  a summary of district practices regarding
  transportation of transfer students;
               (6)  an explanation of the reasons students choose to
  transfer districts or campuses and the barriers faced by students
  in transferring districts or campuses;
               (7)  an explanation of the challenges restricting
  school districts from admitting more transfer students;
               (8)  performance outcomes for inter- and
  intra-district transfer students, including changes in student
  proficiency after the date of transfer; and
               (9)  the effects of inter-district transfers on student
  performance outcomes and district program offerings for both
  sending and receiving districts.
         (e)  Each year, the agency shall randomly select 10 percent
  of the school districts in the state and conduct an audit of each
  district's capacity determination under Section 25.046 and of each
  district's approved and denied transfer applications.  If the
  agency finds inaccurate reporting of capacity levels by a school
  district, the agency shall set the capacity for the school
  district.  Districts audited during the previous two school years
  may not be selected for audit in a school year.
         (f)  The commissioner shall adopt rules necessary to
  implement this section.
         SECTION 5.  The following provisions of the Education Code
  are repealed:
               (1)  Section 25.038;
               (2)  Sections 25.039(b) and (c); and
               (3)  Section 48.154.
         SECTION 6.  The changes in law made by this Act may not be
  interpreted to affect the authority or existing rules of the
  University Interscholastic League regarding the participation of a
  student in an interscholastic competition.
         SECTION 7.  Notwithstanding any other provision of this Act,
  a student accepted for transfer to a school district for the
  2023-2024 school year under Section 25.035 or 25.036, Education
  Code, on a date occurring before the effective date of this Act is
  entitled to transfer to the district for that school year in the
  same manner as any other student accepted for transfer to the
  district for that school year on a date occurring on or after the
  effective date of this Act.
         SECTION 8.  Not later than September 1, 2029, the Texas
  Education Agency shall publish the first study of statewide
  transfer trends required under Section 25.047, Education Code, as
  added by this Act.
         SECTION 9.  This Act applies beginning with the 2023-2024
  school year.
         SECTION 10.  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.