SB 285

relating to the misuse of money received for an open-enrollment
charter school to support an out-of-state school.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subchapter D, Chapter 12, Education Code, is
amended by adding Section 12.1075 to read as follows:
Sec. 12.1075.  MISUSE OF MONEY FOR OUT-OF-STATE SCHOOL.  (a)
A charter holder may not spend money received for an
open-enrollment charter school under Section 12.106 to support a
school located outside this state. This subsection does not apply
to money spent under a contract to provide goods or services to the
open-enrollment charter school for which the money was received.
(b)  If the commissioner determines that a charter holder has
violated this section, the commissioner shall withhold from the
amount to which the charter holder is entitled under Section 12.106
for the school year during which the violation occurred an amount
equal to three times the amount spent in violation of this section.
The commissioner may adjust the charter holder's entitlement under
that section for subsequent school years as necessary to recover
SECTION 2.  Section 12.115(c), Education Code, is amended to
(c)  The commissioner shall revoke the charter of an
open-enrollment charter school if the charter holder has:
(1)  [the charter holder has] been assigned an
unacceptable performance rating under Subchapter C, Chapter 39, for
the three preceding school years;
(2)  [the charter holder has] been assigned a financial
accountability performance rating under Subchapter D, Chapter 39,
indicating financial performance lower than satisfactory for the
three preceding school years; [or]
(3)  [the charter holder has] been assigned any
combination of the ratings described by Subdivision (1) or (2) for
the three preceding school years; or
(4)  spent at least $100,000 in violation of Section
SECTION 3.  This Act takes effect September 1, 2025.