Overall Vote Recommendation

Yes

Principle Criteria

Free Enterprise

Property Rights

Personal Responsibility

Limited Government

Individual Liberty

Digest

SB 2986, relates to the use of public school district, open-enrollment charter school, and public institution of higher education facilities by religious organizations. The bill permits—though does not require—these educational institutions to allow religious organizations to host religious worship services, sermons, or assemblies on their campuses under specific conditions.

Under SB 2986, a school or university may permit such use if it (1) does not interfere with the institution’s primary educational mission, (2) requires payment of fair market rental value or reimbursement for utilities, security, and other associated costs unless waived, (3) holds the religious organization liable for any damages that occur during use, and (4) ensures all other applicable laws are satisfied. Importantly, the bill also protects educational institutions from state or local governmental retaliation for allowing religious use, forbidding penalties or funding denials based on such decisions.

The legislation amends Subchapter D, Chapter 11, and Subchapter Z, Chapter 51 of the Texas Education Code by adding new sections (Sections 11.173 and 51.984, respectively). It clarifies that no school or university is obligated to permit religious use if it chooses not to, maintaining institutional autonomy. The bill takes effect on September 1, 2025, and applies prospectively, without disturbing existing contractual arrangements unless renewed, modified, or extended after that date.

The originally filed version of SB 2986 allowed school districts, open-enrollment charter schools, and public institutions of higher education to permit religious organizations to use their facilities for religious worship, services, sermons, or assemblies, with three key conditions: (1) the use must not interfere with the educational mission, (2) the religious organization must pay fair market rent or reimburse costs unless waived, and (3) the religious organization must be held liable for any damages. It also prohibited governmental entities from penalizing or denying funding to institutions based on their decision to allow religious use. Importantly, the original version contained a severability clause, ensuring that if any provision or application were held invalid by a court, the remainder of the act would still stand.

The committee substitute retains the core structure of the bill but clarifies and refines the language. Notably, it removes the severability clause entirely, meaning the bill now lacks explicit instructions on how partial invalidation by courts should be handled. Additionally, the substitute version tightens the phrasing regarding "hosting" of religious events rather than just "use," and clarifies that any “additional requirements imposed by other law” must also be satisfied for facility use, thus offering stronger compliance guidance to educational institutions.

Another significant shift is in formal structure and precision: in the Committee Substitute, the term "district's or school's facilities" is repeated throughout for consistency, and references to decisions by “the board of trustees” or “governing body” are made explicit, rather than simply referencing "the school district" or "institution." These changes sharpen governance clarity and liability expectations. Additionally, minor grammatical corrections and improvements to readability were incorporated.

Overall, the Committee Substitute version provides a clearer legal framework, addresses potential ambiguities about compliance with other laws, and slightly narrows protections by not including severability. However, the spirit and intent of the bill — protecting schools and universities that allow religious organizations facility access — remains unchanged.

Author (1)

Donna Campbell

Co-Author (1)

Mayes Middleton

Sponsor (1)

Jeff Leach

Contact the Author

Sen. Donna Campbell

Capitol Phone:

(512) 463-0125

Capitol Office:

CAP 3E.18

E-Mail:

[email protected]

Visit Official Website

Fiscal Notes

According to the Legislative Budget Board (LBB), no significant fiscal implication to the State is anticipated as a result of SB 2986. The bill does not create any mandatory new programs or funding obligations for state agencies or public institutions. It is assumed that any administrative or logistical costs associated with implementing the bill's provisions, such as managing facility rental agreements or handling liability procedures, could be absorbed using existing resources already available to educational institutions and agencies.

Similarly, the bill is expected to have no significant fiscal implication for local governments, including school districts and public colleges or universities. Because the bill allows—but does not require—schools to permit facility use by religious organizations, institutions retain full discretion to manage any resulting operational impacts. Moreover, by requiring fair market rental payments or reimbursement for utilities and other costs, the legislation is designed to prevent financial loss to the institutions themselves.

In summary, SB 2986 is structured to be cost-neutral, with any minimal administrative workload easily managed within current institutional budgets, and with no impact anticipated on state or local fiscal health.

Vote Recommendation Notes

The legislation directly addresses concerns raised by public schools and institutions of higher education about the legal risks of allowing religious organizations to rent facilities after hours. It clarifies that institutions can permit such use without jeopardizing their bond covenants, nonprofit statuses, or violating constitutional requirements, provided certain protections are followed.

The bill protects Individual Liberty by reinforcing First Amendment rights to free speech and free exercise of religion. It also emphasizes Personal Responsibility, requiring religious organizations to pay fair market rates and be liable for damages during use. By affirming that facility rentals must align with existing neutral policies applied to all community groups, SB 2986 supports Free Enterprise principles, ensuring no preferential or discriminatory treatment. Additionally, the bill advances Limited Government by restricting governmental entities from retaliating against schools for accommodating religious organizations on neutral terms.

Importantly, the bill does not impose a mandate; schools and universities retain complete discretion over whether to allow religious facility use. There are no significant fiscal implications for the state or local governments, as any minimal administrative duties are expected to be absorbed using existing resources. This reinforces the bill's alignment with conservative fiscal responsibility principles.

Given these factors—enhancement of constitutional freedoms, respect for local control, fiscal neutrality, and careful alignment with federal legal standards—Texas Policy Research recommends that state lawmakers vote YES on SB 2986.

SB 2986 strongly enhances individual liberty by affirming the rights of religious organizations to access public facilities on the same neutral terms as any other community group. It protects free speech and religious exercise rights under the First Amendment and the Texas Constitution. By prohibiting state agencies or political subdivisions from penalizing schools that allow religious facility use, it shields both religious organizations and educational institutions from viewpoint discrimination.
The bill promotes personal responsibility by requiring religious organizations to pay fair market rent and accept liability for damages caused during their use of the facilities. This ensures that religious organizations are treated like any other facility users and must bear the financial and operational consequences of their activities, rather than shifting burdens onto taxpayers or school budgets.
SB 2986 supports free enterprise principles by enabling religious organizations to engage in standard rental agreements with public institutions. It encourages fair, market-driven transactions rather than providing free or preferential access. By requiring payment for use of facilities and associated costs, the bill fosters a healthy competitive environment without government favoritism.
While public facilities are not private property, institutional autonomy (the school board’s or university’s control over facility use) closely mirrors private property rights in this context. The bill respects property management authority by making it clear that schools and universities are not required to allow religious use if they choose not to. They maintain full control over whether and how their facilities are used outside of regular educational activities.
The bill advances limited government by expressly prohibiting state agencies and political subdivisions from penalizing educational institutions that permit religious use. It prevents government overreach into local school district and university decision-making, preserving community-level governance without imposing new regulations or funding mandates.

View Bill Text and Status