BILL ANALYSIS

Senate Research Center	C.S.S.B. 582
89R25300 AND-D	By: West
	Education K-16
	4/29/2025
	Committee Report (Substituted)

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release under the Public Information Act if the commissioner takes an enforcement action subject to the findings of an unpublished report.

(Original Author's/Sponsor's Statement of Intent)

C.S.S.B. 582 amends current law relating to certain agreements arising out of 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 adding Subsection (m), as follows:

(m) Provides that an agreement between the Texas Education Agency (TEA) and a school district to conclude a special investigation of the district under Section 39.003 (Special Investigations) and impose a sanction on the district:

(1) is subject to disclosure under Chapter 552 (Public Information) Government Code;

(2) is required to describe in plain language the allegations against the district that gave rise to the investigation; and

(3) is required to include any factual findings that are related to the allegations described by Subdivision (2) and to which TEA and the district agree.

SECTION 2. Makes application of Section 39.004(m), Education Code, as added by this Act, prospective.

SECTION 3. Effective date: September 1, 2025.