Honorable Brandon Creighton, Chair, Senate Committee on Education K-16
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
SB111 by Hall (Relating to transparency in special education legal proceedings involving a school district and a limit on legal fees that may be spent by a school district in special education legal proceedings.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB111, As Introduced: a negative impact of ($1,015,090) through the biennium ending August 31, 2027.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2026
($323,102)
2027
($691,988)
2028
($119,632)
2029
($119,632)
2030
($119,632)
All Funds, Five-Year Impact:
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
2026
($323,102)
2027
($691,988)
2028
($119,632)
2029
($119,632)
2030
($119,632)
Fiscal Analysis
The bill would prohibit a school district from spending more than $10,000 in legal fees to defend the district in legal proceedings relating to complaints against a school district alleging a violation of federal or state special education laws.
The bill would require a school district superintendent, if the district spends an amount in legal fees that is at least 80 percent of the $10,000 limit in legal fees, to report to the board of trustees of the district certain information related to the legal proceedings.
The bill would require a school district each month to post on the district's Internet website and to submit to the Texas Education Agency (TEA) a report regarding each ongoing legal proceeding for which the district's legal fees exceed the limit. The report would be required to meet certain confidentiality requirements.
The bill would require TEA each month to compile and post on TEA's Internet website the information reported to the agency relating to district legal fees exceeding the limit for the preceding month.
Methodology
TEA estimates IT costs to implement the provisions of the bill would be $0.3 million in fiscal year 2026, $0.7 million in fiscal year 2027, and $0.1 million in subsequent years.
Local Government Impact
Districts would incur costs relating to the requirement to report certain legal fees and related information to the district's board of trustees and TEA, and to post the information on the district's Internet website.