TX SB285

Prohibits open-enrollment charter school holders from using state funding received under Section 12.106 to support schools located outside of Texas

Exempts payments made under contracts for goods or services that directly benefit the Texas charter school from this prohibition

Requires the commissioner to withhold funding equal to three times the amount spent in violation, with adjustments to future entitlements if necessary to recover the full penalty

Mandates charter revocation if a charter holder spends at least $100,000 in violation of the out-of-state funding prohibition

Takes effect September 1, 2025