Section 100.1069 - Disclosure of Related Party Transactions(a) Related parties defined. A related party is such a party as defined in § 100.1001 of this title (relating to Definitions) or identified as at least one of the following: (1) a founder or current or former board member, administrator, or officer who meets the criteria in the following subparagraphs. For purposes of this paragraph, a person is a former board member, administrator, or officer if the person served in that capacity within one year of the date on which a financial transaction between the charter holder and a related party occurred:(A) a board member, administrator, or officer of an open-enrollment charter school; or(B) related within the third degree of consanguinity or affinity, as determined under Texas Government Code, Chapter 573, to a board member, administrator, or officer of an open-enrollment charter school;(2) a charter holder's related organizations, joint ventures, and jointly governed organizations, including a management company or any other charter schools or network in another state operated by the same charter management company or under the same charter school network brand-identity by license, other written agreement or otherwise;(3) an open-enrollment charter school's board members, administrators, or officers or a person related to a board member, administrator, or officer within the third degree of consanguinity or affinity, as determined under Texas Government Code, Chapter 573; or(4) any other disqualified person, as that term is defined by 26 United States Code, § 4958(f), including: (A) any person who was, at any time during the 5-year period ending on the date of such transaction, in a position to exercise substantial influence over the affairs of the organization, such as a voting member of the governing body, a person who has ultimate responsibility for implementing the decisions of the governing body or for supervising the management, administration, or operation of the organization, or a person who has ultimate responsibility for managing the finances of the organization;(B) a member of the family of an individual described in subparagraph (A) of this paragraph; or(C) a 35% controlled entity.(b) Related party property transactions. A charter holder shall notify the commissioner of education that it intends to enter into a property transaction with a related party as defined by subsection (a) of this section and § 100.1001 of this title. (1) The charter holder shall provide such notice to the commissioner through the Texas Education Agency division responsible for charter schools no later than 10 days prior to the transaction.(2) If the amount of the transaction exceeds $5,000, upon request and by a date specified by the commissioner, the charter holder shall provide an appraisal from a certified appraiser to TEA.(c) Related party transactions in audit. All related party transactions shall be reported in the annual audit as required by § 100.1067(f) of this title (related to Accounting for State and Federal Funds).19 Tex. Admin. Code § 100.1069
The provisions of this §100.1069 adopted to be effective November 6, 2001, 26 TexReg 8828; Adopted by Texas Register, Volume 49, Number 39, September 27, 2024, TexReg 7887, eff. 10/2/2024