SB 2927

relating to a contract regarding the operation of a school district
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 11.174, Education Code, is amended by
adding Subsections (o), and (p) and amending Subsection (h) to read
(h)  A [Subject to Subsection (i), a] contract entered into
by the board of trustees of a school district and the governing body
of an open-enrollment charter school or entity for the operation of
a district campus as provided by Subsection (a) must:
(1)  engage in a thorough vetting process, including
exercising due diligence to assess performance, cultural
alignment, and shared goals to:
(A)  ensure accurate projections of student
enrollment, average daily attendance, and associated costs to
minimize financial discrepancies; and
(B)  clearly state any shared service fees and
include a formula for any adjustment based on actual use or changes
(2)  require that all federal money received by the
district for a student at the campus under the Americans with
Disabilities Act of 1990 (42 U.S.C. Section 12101 et seq.), Title I
of the Elementary and Secondary Education Act of 1965 (20 U.S.C.
Section 6301 et seq.), and any other supplementary funding
identified in the contract is passed directly from the district to
the school or entity, without any deduction that is not
specifically authorized in the contract; and
(3)  subject to Subsection (i), include a provision
addressing student eligibility for enrollment.
(o)  Each school year for which the board of trustees of a
school district enters into a contract to partner with an
open-enrollment charter school or entity to operate a district
(1)  the district and open-enrollment charter school or
entity shall conduct a financial review of the partnership and
reconcile all payments for the operation of the partnership at the
(1)  may provide guidance to school districts,
open-enrollment charter schools, and entities described by
Subsection (a)(2) on contracts to partner to operate a district
campus under Subsection (a); and
(2)  may audit a partnership to operate a district
SECTION 2.  A contract entered into or renewed before the
effective date of this Act is governed by the law in effect on the
date the contract was entered into or renewed, and the former law is
continued in effect for that purpose.
SECTION 3.  This Act takes effect September 1, 2025.