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Signed Into Law
Signed June 20, 2025Effective 2025-09-01
SB843

Regular Session

Relating to a Texas Education Agency database of school district and open-enrollment charter school bonds, taxes, and bond-related projects.

Government Affairs & Regulatory Compliance Analysis

SB843: Government Affairs Overview

SB843 mandates that Independent School Districts and Open-Enrollment Charter Schools report granular, project-level data on bond proceeds and construction status to a new public-facing TEA database. This legislation transforms bond compliance from a periodic financial summary into a continuous project management audit, requiring you to publicly reconcile ballot proposition language with actual construction invoices and tax rates.

Sen. Lois Kolkhorst·Senate Bill·Regular Session

Moderate
Medium Cost
Effective:2025-09-01
Business Impact

Who SB843 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: moderate

Notable regulatory updates (effective 2025-09-01). Consider how these changes may affect your operations.

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Education

Affected business types:

  • School districts
  • Charter schools
  • Private schools
  • Education service providers
View all education legislation

Key Operational Considerations

  • 1Financial Advisory Services: Expand the scope of work for your Bond Counsel or Financial Advisors to include the transmission of tax rate and ballot data to the TEA database on your behalf.

Estimated Cost Impact

mediumModerate costs expected for implementation.

Enforcing Agencies

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SB843
Moderate
Relating to a Texas Education Agency database of school district and open-enrollment charter school bonds, taxes, and bond-related projects.
Moderate Compliance Urgency
Requires near-term attention
Cost Impact
Medium
Effective
2025-09-01
Enforcing Agencies
TEA
Primary Author: Sen. Lois Kolkhorst
89th Texas Legislature
jdkey.com
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Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025.
  • Compliance Deadline: Contingent upon legislative appropriation. If funded, anticipate the first mandatory data call in Q3 or Q4 2026 to allow for system development.
  • Agency Rulemaking: The Commissioner of Education is authorized to adopt rules under Sec. 45.114(f). Expect a "regulatory gray zone" between September 2025 and Spring 2026 where definitions for "current information" and "project size" are debated.

Immediate Action Plan

  • Audit Internal Controls: Immediately review your ability to link a specific vendor invoice to a specific bond series and ballot proposition. If this is currently manual, digitize it.
  • Monitor Appropriations: Confirm by June 2025 if the Legislature appropriated the ~$3M required to fund this system. If not, the requirement is dormant (Sec. 2).
  • Update Vendor Agreements: Add "Right to Audit" and data formatting requirements to all active and future construction contracts.
  • Prepare Data Dictionary: Create a standardized list of project definitions and descriptions to ensure consistency across all reporting years.

Operational Changes Required

Contracts

  • Construction & Architecture MSAs: You must amend Master Service Agreements immediately. Insert clauses requiring vendors to submit payment applications and project updates (square footage, budget-to-actuals) in a format compatible with TEA reporting fields.
  • Financial Advisory Services: Expand the scope of work for your Bond Counsel or Financial Advisors to include the transmission of tax rate and ballot data to the TEA database on your behalf.

Hiring/Training

  • Silo Integration: Finance departments (tax rates/bond issuance) and Facilities departments (construction progress/invoices) must be cross-trained. They can no longer operate independently; the database requires linking specific bond dollars to specific physical project outcomes.
  • Designated Compliance Officer: Assign a specific officer to monitor the database for accuracy. Under Sec. 45.114(b)(6), you must actively propose corrections to TEA if data is inaccurate to mitigate reputational liability.

Reporting & Record-Keeping

  • Chain of Custody: You must maintain a direct data link between the Ballot Proposition Language and the Final Project List. Any deviation between what was promised to voters and what is being built must be documented and explained.
  • Granular Metrics: Prepare to report specific metrics for every project: square footage, total cost, budget status, and funding source (bond proceeds vs. other funds).
  • Tax Rate Reconciliation: You must report the "Projected I&S Tax Rate" (from the election) alongside the "Actual Tax Rate."

Fees & Costs

  • Administrative Burden: While there are no new filing fees, the internal cost of compliance is Medium. Expect increased billable hours from legal and financial consultants to ensure initial data integrity.
  • System Upgrades: You may need to invest in project management software that integrates with financial ledgers to automate this reporting.

Strategic Ambiguities & Considerations

  • Definition of "Project": The statute does not define a *de minimis* threshold. It is unclear if minor capital expenditures (e.g., HVAC repair, bus purchases) require the same detailed reporting as new campus construction. Watch for TEA rulemaking to set a monetary floor.
  • Reporting Frequency: The term "current information" is undefined. TEA could interpret this as real-time, monthly, or annual. You must advocate for an annual or semi-annual cycle during the comment period.
  • Retroactivity: The law does not explicitly exempt bonds issued prior to September 1, 2025. If you are currently spending proceeds from a 2022 or 2023 bond, assume this data must be retroactively entered.

Need Compliance Guidance on This Legislation?

JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

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Legislative Timeline

This bill's path through the Texas Legislature

Filed
Jan 17, 2025
Passed Senate
Apr 24, 2025
Passed House
May 20, 2025
Signed
Jun 20, 2025
Effective
Sep 1, 2025
TopicsEducationEducation--primary & SecondaryEducation--primary & Secondary--financeEducation--primary & Secondary--generalElectronic Information SystemsBondsEducation Agency, TexasEducation, Commissioner ofTaxationTaxation--school District
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Senate Authors

Sen. Lois KolkhorstRepublican · Primary Author
Coauthors (10)

House Sponsor

Rep. Brad BuckleyRepublican · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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More from Sen. Lois Kolkhorst

View all bills by Sen. Lois Kolkhorst

Related by Topic

View more Education legislation
Quick Reference

Frequently Asked Questions

Common questions about SB843

Q

What does Texas SB843 do?

SB843 mandates that Independent School Districts and Open-Enrollment Charter Schools report granular, project-level data on bond proceeds and construction status to a new public-facing TEA database. This legislation transforms bond compliance from a periodic financial summary into a continuous project management audit, requiring you to publicly reconcile ballot proposition language with actual construction invoices and tax rates.

Q

Who authored SB843?

SB843 was authored by Texas Senator Lois Kolkhorst during the Regular Session.

Q

When was SB843 signed into law?

SB843 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce SB843?

SB843 is enforced by Texas Education Agency (TEA).

Q

How significant are the changes in SB843?

The regulatory priority for SB843 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB843?

The cost impact of SB843 is estimated as "medium". This may vary based on industry and implementation requirements.

Q

What topics does SB843 address?

SB843 addresses topics including education, education--primary & secondary, education--primary & secondary--finance, education--primary & secondary--general and electronic information systems.

Q

What are the key dates for SB843?

Key dates for SB843: Effective date is 2025-09-01. Rulemaking: May adopt rules necessary to implement the database and reporting standards (Sec. 45.114(f)) (No statutory deadline specified). Consult with legal counsel regarding applicability.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026