HB 3170

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.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subchapter Z, Chapter 44, Education Code, is
amended by adding Section 44.903 to read as follows:
Sec. 44.903.  BOARD AUTHORIZATION TO SETTLE OR CONTEST
SPECIAL EDUCATION LAWSUITS; REPORTS TO AGENCY.  (a)  This section
applies only to a due process complaint against a school district
alleging a violation of federal or state special education laws.
(b)  Except as otherwise provided by this section, a school
district may not spend more than $10,000 in legal fees to defend the
district in a legal proceeding to which this section applies.
(c)  If a school district spends an amount in legal fees to
defend the district in a legal proceeding to which this section
applies that is at least 80 percent of the limit imposed by
Subsection (b) and intends to continue the proceeding, the district
superintendent shall submit to the board of trustees of the
(1)  states that the current cost in legal fees in the
proceeding is approaching the limit imposed by Subsection (b); and
(A)  a summary of the facts, legal claims,
defenses, and relief sought in the proceeding; and
(B)  an estimate of the total amount in legal fees
that will be required to defend the district in the proceeding.
(d)  A report submitted under Subsection (c) is confidential
and not subject to disclosure under Chapter 552, Government Code.
(e)  As soon as practicable after receipt of a report under
Subsection (c), the board of trustees of the school district shall:
(1)  direct the district to settle the legal proceeding
before the total cost in legal fees exceeds the limit imposed by
(2)  authorize the district to spend an amount in legal
fees in excess of the limit imposed by Subsection (b) to defend the
district in the legal proceeding.
(f)  Each month, a school district shall post on the
district's Internet website and submit to the agency a report
regarding each ongoing legal proceeding to which this section
applies for which the district's legal fees exceed the limit
imposed by Subsection (b), including:
(1)  the general subject matter of the proceeding; and
(2)  the total amount of legal fees incurred by the
district for the proceeding as of the date on which the report is
(g)  A report required under Subsection (f) may not include
personally identifiable student information and must comply with
the Family Educational Rights and Privacy Act of 1974 (20 U.S.C.
(h)  Each month, the agency shall compile and post on the
agency's Internet website the information reported to the agency
under Subsection (f) for the preceding month.  The information must
be both aggregated statewide and disaggregated by school district.
(i)  The commissioner may adopt rules as necessary to
SECTION 2.  Section 44.903, Education Code, as added by this
Act, applies only to a legal proceeding to which that section
applies that is filed on or after the effective date of this Act.
SECTION 3.  This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution.  If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.