HB 1697 — Relating to the management, operation, and contract authority of open-enrollment charter schools.

Summary

Relating to the management, operation, and contract authority of open-enrollment charter schools.

Bill Text

Compared against the Texas statutes as published AI-generated reading aid — verify against the official bill.

This bill amends 6 section(s) of the Texas statutes: Section 12.1054(a), Education Code, Section 12.1169, Education Code, Section 12.1202, Education Code, Section 12.125, Education Code, Section 12.1251, Education Code, Section 2252.908(a)(2), Government Code.

• Section 12.1054(a), Education Code

  : (1) ; (2) notwithstanding any provision of Section 12.1054(1), an employee of an open-enrollment charter school rated acceptable or higher under Section 39.054 for at least two of the preceding three school years may serve as a member of the governing body of the charter holder of the governing body of the school if the employees do not constitute a quorum of the governing body or any committee of the governing body; however, all members shall comply with the requirements of Sections 171.003-171.007, Local Government Code → ,

  amended

• Section 12.1169, Education Code

  Sec. 12.1169. TRANSACTIONS INVOLVING RELATED PARTY OF MANAGEMENT COMPANY. (a) The commissioner shall adopt a rule defining "related party of a management company" for purposes of this subchapter. The definition of "related party of a management company" must include: (1) a party with a current or former board member, administrator, or officer who is: (A) a board member, administrator, or officer of a management company that provides management services for an open-enrollment charter school; or (B) related within the third degree of consanguinity or affinity, as determined under Chapter 573, Government Code, to a board member, administrator, or officer of a management company that provides management services for an open-enrollment charter school; (2) any organizations, joint ventures, and jointly governed organizations related to a management company that provides management services for an open-enrollment charter school; (3) any board members, administrators, or officers of a management company that provides services for an open-enrollment charter school, including a person related to a board member, administrator, or officer of the management company within the third degree of consanguinity or affinity, as determined under Chapter 573, Government Code; and (4) any other disqualified person, as that term is defined by 26 U.S.C. Section 4958(f). (b) For purposes of Subsection (a)(1), a person is a former board member, administrator, or officer if the person served in that capacity within one year of the date on which a financial transaction between a management company and a related party of a management company occurred.

  added

• ; (3) has been convicted of an offense listed (4) (a)(4) elected or → : (A) ; (B) : (A) or (B) an offense under the laws of another state or federal law that contains elements that are substantially similar to the elements of an offense listed in Section 37.007(a) or in Article 62.001(5), Code of Criminal Procedure; or (3) is being paid directly or indirectly by or (a)(3) management management management management management management management ; (8) is an officer or employee of a contractor of the management company; or (9) is an officer or employee of a related party of a management company, as defined by commissioner rule adopted under Section 12.1169

  amended

• Section 12.1202, Education Code

  MAJORITY OF majority of the members must be qualified voters → (a) In this section, "qualified voter" has the meaning assigned by Section 11.002, Election Code. (b) person must be a qualified voter to serve as a member

  amended

• Section 12.125, Education Code

  ; PUBLIC INFORMATION (a) (b) A contract or proposed contract for management services and any record related to the management services is public information under Chapter 552, Government Code, and may not be excepted from required disclosure under Subchapter C of that chapter. (c) A member of the governing body of a charter holder, a member of the governing body of an open-enrollment charter school, or an officer or employee of an open-enrollment charter school may not accept a direct or indirect payment from a management company under any contract or arrangement. (d) A contract for management services must include a provision affirming that the management company is not making any direct or indirect payments to a member of the governing body of the charter holder, a member of the governing body of the open-enrollment charter school, or an officer or employee of the open-enrollment charter school. (e) A contract entered into or an arrangement made in violation of Subsection (c) is void as against public policy and subject to applicable commissioner action under Section 12.126, and no fees may be paid to any person under the contract or under any theory of recovery for work performed in connection with a void contract.

  amended

• Section 12.1251, Education Code

  Sec. 12.1251. FINANCIAL BENEFIT FROM MANAGEMENT COMPANY PROHIBITED. A superintendent or administrator serving as educational leader or chief executive officer of an open-enrollment charter school may not receive any financial benefit for personal services performed by the superintendent or administrator serving as educational leader or chief executive officer for a management company or business entity that conducts or solicits business with the school. For purposes of this section, the receipt of reimbursement for a reasonable expense is not considered a financial benefit.

  added

• Section 2252.908(a)(2), Government Code

  open-enrollment charter school established under Subchapter D, Chapter 12, Education Code,

  amended

Action History

1. March 12, 2025

   Referred to Public Education

2. March 12, 2025

   Read first time

3. December 20, 2024

   Filed

Sponsors

• Terry Canales · Primary

Subjects