89R1659 KJE-D     By: Simmons H.B. No. 1878       A BILL TO BE ENTITLED   AN ACT   relating to the misuse of money received for an open-enrollment   charter school to support an out-of-state school.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter D, Chapter 12, Education Code, is   amended by adding Section 12.1075 to read as follows:          Sec. 12.1075.  MISUSE OF MONEY FOR OUT-OF-STATE SCHOOL. (a)   A charter holder may not spend money received for an   open-enrollment charter school under Section 12.106 to support a   school located outside this state. This subsection does not apply   to money spent under a contract to provide goods or services to the   open-enrollment charter school for which the money was received.          (b)  If the commissioner determines that a charter holder has   violated this section, the commissioner shall withhold from the   amount to which the charter holder is entitled under Section 12.106   for the school year during which the violation occurred an amount   equal to three times the amount spent in violation of this section.   The commissioner may adjust the charter holder's entitlement under   that section for subsequent school years as necessary to recover   any remaining amount owed.          SECTION 2.  Section 12.115(c), Education Code, is amended to   read as follows:          (c)  The commissioner shall revoke the charter of an   open-enrollment charter school if the charter holder has:                (1)  [the charter holder has] been assigned an   unacceptable performance rating under Subchapter C, Chapter 39, for   the three preceding school years;                (2)  [the charter holder has] been assigned a financial   accountability performance rating under Subchapter D, Chapter 39,   indicating financial performance lower than satisfactory for the   three preceding school years; [or]                (3)  [the charter holder has] been assigned any   combination of the ratings described by Subdivision (1) or (2) for   the three preceding school years; or                (4)  spent at least $100,000 in violation of Section   12.1075.          SECTION 3.  This Act takes effect September 1, 2025.