SB 686

relating to the transfer of students between public schools.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 25.001(h), Education Code, is amended to
(h)  In addition to the penalty provided by Section 37.10,
Penal Code, a person who knowingly falsifies information on a form
required for enrollment of a student in a school district is liable
to the district if the student is not eligible for enrollment in the
district but is enrolled on the basis of the false information.  The
person is liable, for the period during which the ineligible
student is enrolled, for [the greater of:
[(1)  the maximum tuition fee the district may charge
[(2)]  the amount the district has budgeted for each
student as maintenance and operating expenses.
SECTION 2.  Section 25.035, Education Code, is amended to
Sec. 25.035.  TRANSFERS BETWEEN DISTRICTS OR COUNTIES.  The
boards of trustees of two or more [adjoining] school districts or
the boards of county school trustees of two or more [adjoining]
counties may, [by agreement and] in accordance with Sections
25.032, 25.033, and 25.034, arrange for the transfer and assignment
of any student from the jurisdiction of one board to that of
another.  [In the case of the transfer and assignment of a student
under this section, the participating governing boards shall also
agree to the transfer of school funds or other payments
proportionate to the transfer of attendance.]
SECTION 3.  Section 25.036, Education Code, is amended to
Sec. 25.036.  TRANSFER OF STUDENT.  (a)  Any child, other
than a high school graduate, who is younger than 21 years of age and
eligible for enrollment on September 1 of any school year may apply
to transfer [annually] from the child's school district [of
residence] to any public school [another district] in this state
that offers the appropriate grade level and has capacity, as
determined under Section 25.046 [if both the receiving district and
the applicant parent or guardian or person having lawful control of
the child jointly approve and timely agree in writing to the
(b)  Before the beginning of each school year, a school
(1)  require a transfer applicant under Subsection (a)
to complete and submit the district's transfer application form by
a reasonable deadline established by the district; and
(2)  subject to Subsection (g), admit each eligible
transfer applicant until enrollment at the campus reaches capacity,
as determined under Section 25.046.  [A transfer agreement under
this section shall be filed and preserved as a receiving district
record for audit purposes of the agency.]
(c)  If a school district receives more eligible transfer
applications for a district campus or a specific grade level at a
district campus than the district has capacity for at that campus or
in that grade level, as determined under Section 25.046, the
district shall fill the available positions by lottery.  A school
district shall offer to a student who the district does not enroll
due to lack of capacity an available position, if any, in the
appropriate grade level at another district campus.
(d)  A school district that must fill positions by lottery
under Subsection (c) shall, in developing the lottery system,
ensure priority is given to applicants in the following order:
(1)  students residing in the receiving district;
(2)  students enrolled as transfer students at another
campus in the receiving district;
(3)  students who are dependents of an employee of the
(4)  students receiving special education services
under Subchapter A, Chapter 29;
(5)  students who are dependents of military personnel;
(6)  students who are dependents of law enforcement
(8)  students who are the subject of court-ordered
modification of an order establishing conservatorship or
(9)  students who are siblings of a student who is
enrolled in the receiving district at the time the student seeks to
(e)  A school district that receives more eligible transfer
applications for a district campus or a specific grade level at a
district campus than the district may enroll at the capacity
determined under Section 25.046 for that campus or grade level
shall establish and maintain a waitlist for transfer applicants who
(f)  If a position at a school district campus with a
waitlist under Subsection (e) becomes available after the start of
the school year, the district shall first admit transfer applicants
according to that waitlist and then admit any additional transfer
applicants in the order in which those additional transfer
(g)  A school district may deny approval of a transfer under
(1)  the district or a school in the district to which a
student seeks to transfer is at full student capacity or has more
requests for transfers than available positions;
(2)  at the time a student seeks to transfer:
(i)  suspended or expelled by the district
in which the student is enrolled; or
(ii)  placed in a disciplinary alternative
education program or a juvenile justice alternative education
(B)  disciplinary proceedings are pending against
the student in the district in which the student is enrolled for
(i)  may be placed in out-of-school
suspension in accordance with the district's student code of
(ii)  is required or permitted to be removed
from class and placed in a disciplinary alternative education
program under Section 37.006; or
(iii)  is required or permitted to be
expelled under Section 37.007; or
(3)  approving the transfer would supersede a
court-ordered desegregation plan.
(h)  A school district that denies approval of a transfer
under this section shall inform the applicant in writing of the
reason for denying approval of the applicant's transfer.
(i)  A student who transfers to another school district under
this section may not be charged tuition.  The student is included in
the average daily attendance of the district to which the student
transfers, beginning on the date the student begins attending
(j)  A receiving school district may, but is not required to,
provide transportation to a student who transfers to the receiving
(k)  A receiving school district may revoke, at any time
during the school year, the approval of the student's transfer if
(1)  fails to comply with a condition specified in the
(A)  a condition specified in the student code of
conduct under Section 37.001(a)(2);
(B)  a circumstance specified in the student code
of conduct under Section 37.001(a)(3) that may result in
(C)  conduct for which a student is required or
permitted to be removed from class and placed in a disciplinary
alternative education program under Section 37.006; or
(D)  conduct for which a student is required or
permitted to be expelled from school under Section 37.007; or
(2)  fails to maintain a specified school attendance
(l)  A student who transfers to another school district or
district campus as provided by this section may remain at the
receiving campus until that student completes the highest grade
(m)  Once a student who transfers to another school district
or district campus as provided by this section completes the
highest grade level offered at the receiving campus, the student
must reapply to continue attending school in the receiving
district.  The district must prioritize admitting the student as
(n)  A school district may not deny admission to a student
who is currently enrolled in the district, including a student
enrolled as a transfer student at another campus in the district,
for the purpose of accepting a transfer applicant under this
(o)  A school district may not take any adverse action
against a student enrolled as a transfer student in the district
based on the fact that the district charged a tuition fee for the
student to attend school in the district for a previous school year
(p)  In the case of a transfer under this section, a child's
school district [of residence] shall provide the receiving district
with the child's disciplinary record and any threat assessment
involving the child's behavior conducted under Section 37.115.
(q)  The commissioner shall adopt rules necessary to
implement this section, including rules establishing:
(1)  an admissions lottery, as described by Subsection
(c), and a waitlist as described by Subsection (e); and
(2)  procedures to ensure this section complies with
state and federal law regarding confidentiality of student medical
or educational information, including the Health Insurance
Portability and Accountability Act of 1996 (42 U.S.C. Section 1320d
et seq.) and the Family Educational Rights and Privacy Act of 1974
SECTION 4.  Subchapter B, Chapter 25, Education Code, is
amended by adding Sections 25.046 and 25.047 to read as follows:
Sec. 25.046.  TRANSFER CAPACITY; DISTRICT POLICY.  (a)
Except as provided by Subsection (c), each year on the first day of
January, April, July, and October, the board of trustees of a school
district shall determine the capacity of each district campus and
the capacity of each grade level offered at each campus.  For
purposes of this section, the capacity of a district campus or a
grade level at that campus is the total number of students that may
be admitted at the campus or at that grade level, as applicable,
less the students who are currently enrolled at that campus or at
that grade level, as applicable.  Based on the board's
determination of campus or grade level capacity and current student
enrollment, the district shall identify the number of available
positions at each campus and for each grade level.  In determining
campus and grade level capacity, the district shall consult the
most recent district facility plan, including:
(1)  a facility plan created as part of a district bond
(2)  a long-range facility plan created as part of a
capital improvement project for which construction services are
procured under Chapter 2269, Government Code, in accordance with
Section 44.031(a)(5) of this code.
(b)  The district shall post for each campus in the district
on the district's Internet website, if the district maintains a
website, the most recent determination of campus and grade level
capacity.  If the district does not maintain a website, the district
shall make the information required under this subsection available
to the public at an administrative office of the district.
(c)  A school district is not required to determine the
capacity of a new instructional facility, as defined by Section
48.152, in the first school year in which students attend the new
(d)  The board of trustees of a school district shall adopt a
written policy that meets the requirements adopted by the
commissioner under Subsection (f) for the admission of a transfer
applicant under this subchapter.  The board shall make the policy
available to the public in the same manner the district makes
available a district's determination of campus and grade level
capacity under Subsection (b).  The policy must include:
(1)  adoption of a transfer application form;
(2)  the provision of the address of the district
administrative office where a person may access the district's
determination of campus and grade level capacity, if the district
does not maintain an Internet website; and
(3)  the provision of information regarding available
options for transportation provided by the district or in the
(e)  The agency shall post on the agency's Internet website
information regarding each school district's policy adopted under
this section and each district's campus or grade level capacity
determinations under Subsection (a).
(f)  The commissioner shall adopt rules and prescribe
procedures necessary to implement this section, including by
developing required policies and forms for use by a school district
in complying with Subsection (d).  In adopting rules to implement
this section, the commissioner shall consider feedback from
districts and shall prioritize:
(1)  flexibility of access for students;
(2)  encouraging districts to accommodate student
(3)  preventing districts from discouraging student
Sec. 25.047.  REPORTING AND AUDIT REQUIREMENTS.  (a)
Subject to Subsection (b), each school district shall annually
submit not later than the last Friday in October of each school year
a report to the agency regarding the transfer of students to and
from the district during the previous school year.  The report must
(1)  for each district campus, the quarterly campus and
grade level capacity determinations under Section 25.046;
(2)  for each campus, the number of transfer
applications for transfers to that campus the district received,
the number of applications that were granted, and the number of
applications that were denied, including the reason for the denial,
during the preceding school year;
(3)  the information described by Subdivisions (1) and
(2) aggregated for all campuses in the district; and
(4)  for the purposes of demographic analysis, any
information required by the commissioner as necessary to identify
each student admitted to or denied admission to a campus in the
district who is or was previously enrolled in a public school in
(b)  A school district with only one campus serving each
grade level is exempt from Subsection (a)(3).
(c)  Not later than March 15 of each year, the agency shall
post on the agency's Internet website a report on the transfer and
assignment of students.  The report must include:
(1)  a summary of school district admission practices
relating to student transfer admissions;
(2)  for the state, the aggregated data reported under
(3)  for each district, the aggregated data reported
(4)  a demographic analysis of the students
(5)  a demographic analysis of the students
transferring between campuses within the same district;
(6)  for each district, the number of transfer
applicants seeking admission or withdrawal, showing the potential
(7)  for each district, the actual number of students
who transferred into or out of the district, showing the actual net
(d)  Every sixth year, the agency shall publish a study of
statewide transfer trends that includes:
(1)  the total number of students transferring
districts and of students transferring between campuses within the
(2)  using data from the previous six school years, an
analysis at the state and district level of changes in:
(A)  the number of school districts and campuses
(B)  the number of students transferring
(C)  the number of students transferring between
campuses within the same district;
(3)  a demographic analysis of the students
transferring districts and of the students transferring between
campuses within the same district;
(4)  using data from the previous six school years, an
analysis of the patterns of student movement between districts and
campuses, including a description of any characteristics that are
correlated with students transferring to or away from districts or
(5)  a summary of district practices regarding
transportation of transfer students;
(6)  an explanation of the reasons students choose to
transfer districts or campuses and the barriers faced by students
in transferring districts or campuses;
(7)  an explanation of the challenges restricting
school districts from admitting more transfer students;
(8)  performance outcomes for inter- and
intra-district transfer students, including changes in student
proficiency after the date of transfer; and
(9)  the effects of inter-district transfers on student
performance outcomes and district program offerings for both
sending and receiving districts.
(e)  Each year, the agency shall randomly select 10 percent
of the school districts in the state and conduct an audit of each
district's capacity determination under Section 25.046 and of each
district's approved and denied transfer applications.  If the
agency finds inaccurate reporting of capacity levels by a school
district, the agency shall set the capacity for the school
district.  Districts audited during the previous two school years
may not be selected for audit in a school year.
(f)  The commissioner shall adopt rules necessary to
SECTION 5.  The following provisions of the Education Code
(2)  Sections 25.039(b) and (c); and
SECTION 6.  The changes in law made by this Act may not be
interpreted to affect the authority or existing rules of the
University Interscholastic League regarding the participation of a
student in an interscholastic competition.
SECTION 7.  Notwithstanding any other provision of this Act,
a student accepted for transfer to a school district for the
2025-2026 school year under Section 25.035 or 25.036, Education
Code, on a date occurring before the effective date of this Act is
entitled to transfer to the district for that school year in the
same manner as any other student accepted for transfer to the
district for that school year on a date occurring on or after the
SECTION 8.  Not later than September 1, 2031, the Texas
Education Agency shall publish the first study of statewide
transfer trends required under Section 25.047, Education Code, as
SECTION 9.  This Act applies beginning with the 2025-2026
SECTION 10.  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.