By: Paxton S.B. No. 1750
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to instructional facilities funding for certain
  open-enrollment charter schools.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 12.106, Education Code, is amended by
  amending Subsections (d) and (f) and adding Subsections (e-1) and
  (f-1) to read as follows:
         (d)  Subject to Subsections [Subsection] (e) and (e-1), in
  addition to other amounts provided by this section, a charter
  holder is entitled to receive, for the open-enrollment charter
  school, an annual allotment [funding] per student in average daily
  attendance [in an amount] equal to [the guaranteed level of state
  and local funds per student per cent of tax effort under Section
  46.032(a) multiplied by] the lesser of:
               (1)  the state average interest and sinking fund tax
  rate imposed by school districts for the current year multiplied by
  the guaranteed level of state and local funds per student per cent
  of tax effort under Section 46.032(a); or
               (2)  the maximum amount of the basic allotment provided
  under Section 48.051 for the applicable school year multiplied by
  0.06 [a rate that would result in a total amount to which charter
  schools are entitled under this subsection for the current year
  equal to $60 million].
         (e-1)  A charter holder is entitled to receive funding under
  Subsection (d) for an open-enrollment charter school only if the
  governing body of the school annually certifies in writing to the
  agency that none of the following derives any financial benefit
  from a real estate transaction with the school:
               (1)  an administrator, officer, or employee of the
  school; 
               (2)  a member of the governing body of the school or its
  charter holder; or 
               (3)  a person related within the third degree by
  consanguinity or second degree by affinity, as determined under
  Chapter 573, Government Code, to a person described by Subdivision
  (1) or (2).
         (f)  Funds received by a charter holder under Subsection (d)
  may only be used:
               (1)  to lease an instructional facility;
               (2)  to pay property taxes imposed on an instructional
  facility;
               (3)  to pay debt service on bonds issued to finance an
  instructional facility; [or]
               (4)  for any other purpose related to the purchase,
  lease, sale, acquisition, or maintenance of an instructional
  facility;
               (5)  to purchase or pay debt service on bonds issued to
  finance the purchase of school buses; 
               (6)  to purchase or pay debt service on bonds issued to
  finance the acquisition or update of technology equipment used to
  support instruction;
               (7)  to pay debt service on bonds issued to improve
  school safety and security in accordance with the requirements of
  Section 37.351; or
               (8)  to pay debt service on bonds issued to finance the
  construction, acquisition, or equipment of performing arts
  facilities or athletic facilities, other than a stadium with
  seating capacity for more than 1,000 spectators.
         (f-1)  The governing body of an open-enrollment charter
  school must comply with Chapter 551, Government Code, when
  considering the issuance of bonds.
         SECTION 2.  This Act takes effect September 1, 2025.