TX SB686

Allows students under 21 to apply to transfer to any public school district or campus in Texas that has available capacity, removing the previous requirement for mutual agreement between districts and the restriction to adjoining districts

Requires school districts to determine and publicly post campus and grade-level capacity before each semester, and prohibits charging tuition to transfer students who will be counted in the receiving district's average daily attendance

Establishes a lottery system with priority categories when transfer applications exceed capacity, giving preference to district residents, children of district employees, special education students, military dependents, law enforcement dependents, foster children, and siblings of current students

Limits grounds for denying transfers to: lack of capacity, pending disciplinary action or current suspension/expulsion, or conflict with court-ordered desegregation plans; districts must provide written reasons for denials

Mandates annual district reporting on transfer applications and capacity, requires TEA to publish statewide transfer reports by March 15, conduct annual audits of 10% of districts, and publish a comprehensive six-year transfer trend study starting by September 1, 2031