By: Rodríguez Ramos H.B. No. 5571       A BILL TO BE ENTITLED   AN ACT   relating to the review, audit, and oversight of the Texas Education   Agency's administration of open-enrollment charter schools by the   Sunset Advisory Commission.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 325, Government Code, is amended by   adding Section 325.027 to read as follows:          Sec. 325.027.  REVIEW OF OPEN-ENROLLMENT CHARTER SCHOOLS.   (a)  In 2026 and every third year after that year, the commission   shall conduct a comprehensive forensic and performance audit of all   institutional functions, programs, and operations of contracts,   grants, and administration at the Texas Education Agency relating   to its administration and oversight of open-enrollment charter   schools.          (b)  The audit shall identify and prepare for a report:                (1)  all unallowable expenses, including payments,   purchases, administrative and executive compensation, salary   transactions, and contracted services and efficiency improvements   to administration and oversight functions. The report shall   contain the total compensation of the district superintendent and   other district governance including bonuses, awards, one-time   compensation, and any other contributions.                (2)  each real property owned or leased by   open-enrollment charter schools, including ownership of the   property, whether the property includes an instructional facility,   information on each lease or mortgage agreement and the aggregate   annual and prior five-year amount of any related party payment   under each lease or mortgage agreement, information about the   amount and terms of each charter school's bonds and debt service,   whether a bond is backed by a guarantee from the Permanent School   Fund, current underlying rating of each bond backed by the Bond   Guarantee Program, and the aggregate amount of charter schools'   outstanding bonds;                (3)  each charter school management company that   provides management services to an open-enrollment charter school.   The report shall contain the company's name, address, names of   officers including chief financial officer, and method of   calculation and amount of annual payment by each charter school to   each management company and affiliated company;                (4)  all state funds, grants, or public resources used   for marketing, advertising, or sponsorship purchases. The report   shall contain open-enrollment charter school expenditures on   digital, print, radio, television, and social media   advertisements. The report shall contain sponsorship agreements   between the charter school and any private entity, including   payments made for naming rights, endorsements, and promotional   partnerships,                (5)  conflicts of interest including whether a member   of the governing body of an open-enrollment charter school has a   substantial interest in a business entity as described by Section   171.002, Local Government Code, that contracts with the school.          (c)  The commission shall prepare and provide the audit   report, including all related findings, by September 1, 2026. The   report shall be provided to the Speaker of the House, Lieutenant   Governor, House Appropriations Committee, the Senate Finance   Committee, and the House Delivery of Government Efficiency   Committee.          (d)  The commission shall publish the audit report on its   official website no later than the 45th day after the audit's   completion. Each summary must remain publicly accessible for at   least five years and exclude information classified as confidential   or security-sensitive under state law.          (e)  If the audit conducted under this section identifies   financial mismanagement, waste, fraud, or noncompliance with state   law, the Texas Education Agency shall:                (1)  Develop and implement a corrective action plan   within 90 days;                (2)  Submit progress reports every six months to the   commission and Legislative Budget Board until all deficiencies are   resolved.          (f)  Open-enrollment charter schools reviewed by the   commission under this section are not subject to abolition.          SECTION 2.  This Act takes effect September 1, 2025.