BILL ANALYSIS

Senate Research Center	H.B. 4359
	By: Capriglione et al. (King)
	Education K-16
	5/26/2025
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

H.B. 4359 amends current law relating to the review of school districts by the Sunset Advisory Commission.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 325, Government Code, by adding Section 325.026, as follows:

Sec. 325.026. REVIEW OF SCHOOL DISTRICTS. (a) Defines "education service center region."

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(b) Requires the Texas Sunset Advisory Commission (Sunset) to review the operations and conduct a forensic audit of certain independent school districts or consolidated school districts. Requires Sunset to review two school districts each review cycle. Provides that a school district identified for review by Sunset under this section is subject to the requirements of Chapter 325 (Sunset Law) as if it was a state agency but is prohibited from being abolished.

(c) Requires Sunset, not later than October 31 of each odd-numbered year, to select an education service center region from which the school districts to be reviewed will be selected. Requires Sunset to review the school district within the selected region that has the lowest instructional spending per student and the school district within the selected region that has the highest instructional spending per student according to the most recent information reported to the Texas Education Agency.

(d) Requires Sunset, not later than January 1 of each odd-numbered year, to prepare a report identifying areas of each district's operations that do not effectively or efficiently use the district's funds and that detract from instructional spending and make recommendations to address its findings. Authorizes Sunset's review to also include recommendations related to the district's governance, management, operating structure, and compliance with legislative requirements.

SECTION 2. Effective date: September 1, 2025.