Bill Text: TX HB971 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to prohibiting public schools from leasing, owning, or having a business interest in certain entities and real property associated with those entities.
Spectrum: Partisan Bill (Republican 4-0)
Status: (Introduced - Dead) 2021-03-01 - Referred to Public Education [HB971 Detail]
Download: Texas-2021-HB971-Introduced.html
| 87R3675 JES-F | ||
| By: Swanson | H.B. No. 971 | |
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| relating to prohibiting public schools from leasing, owning, or | ||
| having a business interest in certain entities and real property | ||
| associated with those entities. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter E, Chapter 45, Education Code, is | ||
| amended by adding Section 45.116 to read as follows: | ||
| Sec. 45.116. OWNERSHIP OF OR BUSINESS INTEREST IN CERTAIN | ||
| ENTITIES AND PROPERTY PROHIBITED. (a) In this section: | ||
| (1) "Affiliate" has the meaning assigned by Section | ||
| 1.002, Business Organizations Code. | ||
| (2) "Business interest" means owning or controlling, | ||
| directly or indirectly, more than a 10 percent interest in a | ||
| business entity. | ||
| (b) This section does not apply if the commissioner | ||
| determines that a business interest in an entity or the lease or | ||
| ownership of real property, directly or indirectly through an | ||
| affiliate, by a school district or open-enrollment charter school | ||
| is used primarily for classroom space or serves a public purpose. | ||
| (c) A school district or open-enrollment charter school may | ||
| not, directly or indirectly through an affiliate, including an | ||
| affiliated nonprofit corporation, have a business interest in an | ||
| entity or lease or own real property in this state associated with | ||
| an entity described by the North American Industry Classification | ||
| System (NAICS) in any of the following sector codes: | ||
| (1) Sector 53: Real Estate and Rental and Leasing; | ||
| (2) Sector 71: Arts, Entertainment, and Recreation; or | ||
| (3) Sector 72: Accommodation and Food Services. | ||
| (d) This section does not prohibit or restrict a school | ||
| district or open-enrollment charter school from: | ||
| (1) renting, leasing, or otherwise providing real | ||
| property or a facility that the district or school owns or leases to | ||
| an individual or entity for use by that individual or entity if the | ||
| district or school is not prohibited from owning or leasing the real | ||
| property or facility; | ||
| (2) entering into a lease or other financing | ||
| arrangement for district or school property provided by other law, | ||
| including with a public facility corporation created under Chapter | ||
| 303, Local Government Code; | ||
| (3) operating a cafeteria for students and school | ||
| personnel; | ||
| (4) offering culinary arts classes; or | ||
| (5) allowing culinary arts students, district or | ||
| school staff, or hired staff to serve food at an event hosted by the | ||
| district or school. | ||
| (e) The commissioner may adopt rules necessary to implement | ||
| this section. | ||
| SECTION 2. (a) The change in law made by this Act applies | ||
| only to real property leased or acquired by a school district or | ||
| open-enrollment charter school on or after the effective date of | ||
| this Act. | ||
| (b) The change in law made by this Act applies to a business | ||
| interest in an entity acquired by a school district or | ||
| open-enrollment charter school before, on, or after the effective | ||
| date of this Act. Except as provided by Subsection (c) of this | ||
| section, a school district or open-enrollment charter school | ||
| subject to Section 45.116, Education Code, as added by this Act, | ||
| shall divest all business interest in an entity described by that | ||
| section not later than September 1, 2026, unless the commissioner | ||
| of education determines that the business interest serves a public | ||
| purpose in accordance with Section 45.116(b), Education Code, as | ||
| added by this Act. | ||
| (c) A school district or open-enrollment charter school | ||
| subject to Section 45.116, Education Code, as added by this Act, | ||
| that owns a natatorium that is associated with an entity that the | ||
| district or school must divest under Subsection (b) of this section | ||
| may retain ownership of the natatorium and may provide for access | ||
| between the natatorium and the associated entity, so long as the | ||
| district or school divests the business interest in the associated | ||
| entity in accordance with Subsection (b) of this section. | ||
| SECTION 3. This Act takes effect September 1, 2021. | ||
