S.B. No. 285 aims to regulate the financial practices of open-enrollment charter schools in Texas, specifically prohibiting the misuse of funds intended for these schools to support out-of-state educational institutions. The bill introduces a new section, 12.1075, which states that charter holders cannot spend money received under Section 12.106 for any school located outside Texas, with an exception for expenditures related to contracts for goods or services for the charter school. If a charter holder violates this provision, the commissioner is authorized to withhold funds equivalent to three times the amount misused and may adjust future entitlements to recover any remaining owed amounts.

Additionally, the bill amends Section 12.115(c) of the Education Code to include a new criterion for revoking a charter. Specifically, if a charter holder spends at least $100,000 in violation of the newly established Section 12.1075, this will be grounds for revocation alongside existing performance rating criteria. The bill is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Education Code 12.115 (Education Code 12)