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Relating to the ownership, sale, lease, and disposition of property and management of assets of an open-enrollment charter school.
No significant fiscal implication to the State is anticipated.
SB 1454 would create a process for managing assets and property of an open-enrollment charter school that has ceased operation. The bill prescribes the method of transferring a charter holder's remaining funds to either the TEA or under certain circumstances another charter holder.
The bill prescribes requirements for a charter holder to disclose transactions with related parties and defines the term "related parties" for the purposes of this required disclosure.
The bill stipulates that property leased with certain funds received by the charter holder is considered to be public property for all purposes under state law and may only be used for a purpose for which a school district may use district property.
The bill would set certain requirements for the disposition of property if the charter holder has received notice of the expiration of the holder's charter and the charter has not been renewed, or if the charter has been revoked.
The bill would require an open-enrollment charter school to provide an accounting of each parcel of the school's real property. A charter school for which the charter has expired, been revoked, been suspended, or which has otherwise ceased to operate would be required to make a final annual financial report to the TEA.
Texas Action remains neutral on SB 1454. While there should be a defined process for disposing of the remaining finances, assets, and real property of an open-enrollment charter school that ceases to operate, we do not have sufficient information to determine if this is the most appropriate approach.