BILL ANALYSIS

Senate Research Center	S.B. 582
89R2293 PRL-D	By: West
	Education K-16
	4/24/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

In February 2024, IDEA Public Schools, the largest charter school operator in Texas, entered into an agreed order with the Texas Education Agency (TEA). This order ended an ongoing investigation conducted by TEA into years of ongoing financial abuse, mismanagement, and total lack of guardrails, leading to tremendous losses of state and federal funds, violations of conflict of interest law, and a federal settlement requiring the repayment of over $28 million to the Department of Education.

As a condition of the settlement reached with IDEA Public Schools, which is currently under a managerial conservatorship as a result of the settlement, TEA closed its investigation and never released a final investigative report. The draft investigative report is not subject to disclosure under the Texas Public Information Act, as it is confidential public information, agency working papers exception. However, this draft report contains information vital to public accountability of a public school, such as the amounts of federal and state funds misused, misplaced, and misappropriated by IDEA Public School's administration and board of directors from 2014-2021.

The use of public dollars in violation of Texas law, or any other laws, should be publicly accountable, no matter what school district commits the infraction.

S.B. 582 would allow the public disclosure of draft investigative reports prepared by the commissioner of education in accordance with Texas Education Code, Section 39.003(d), with any identifying information of witnesses redacted. The report would only be subject to release under the Public Information Act if the commissioner takes an enforcement action subject to the findings of an unpublished report.

As proposed, S.B. 582 amends current law relating to the disclosure of preliminary reports of certain special investigations conducted by the Texas Education Agency.

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 Section 39.004, Education Code, by amending Subsection (d) and adding Subsections (d-1), (d-2), and (d-3), as follows:

(d) Creates an exception under Subsection (d-1).

(d-1) Provides that, notwithstanding Subsection (d) and subject to Subsection (d-3), a written report of preliminary findings under Subsection (c) (relating to providing that the Texas Education Agency must disclose preliminary investigation findings and supporting evidence to a school district) is public information subject to disclosure under Chapter 552 (Public Information), Government Code, if the commissioner of education (commissioner) takes an action described by Section 39.003(d) (relating to authorizing the commissioner to take action based on the results of a special investigation) based on the preliminary findings and has not issued a final report under this section (Conduct of Special Investigations) before the 91st day after the date the action was taken.

(d-2) Creates this subsection from existing text and makes no further changes.

(d-3) Requires that identifying information of a witness contained in a report disclosed under Subsection (d-1) or released under Subsection (d-2) be redacted.

SECTION 2. Effective date: September 1, 2025.