HB 2396 expands student transfer rights between public school districts, allowing students to enroll at the nearest campus that offers their grade level, regardless of attendance zone, if space is available. School districts must accept transfer applications, prioritize certain groups (e.g., current students' siblings, students in foster care, children of district employees), and use a lottery system if demand exceeds available seats. Districts must also publicly report transfer data, maintain waitlists, and develop transparent policies on capacity limits. The Texas Education Agency (TEA) must audit 10% of districts annually to ensure compliance. The bill also modifies public school transportation policies, allowing buses to transport students across district lines under specific conditions. The law would take effect for the 2025-2026 school year.