CHAPTER 12. CHARTERS - Texas Statutes

EDUCATION CODE

TITLE 2. PUBLIC EDUCATION

SUBTITLE C. LOCAL ORGANIZATION AND GOVERNANCE

CHAPTER 12. CHARTERS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 12.001. PURPOSES OF CHAPTER. (a) The purposes of this

chapter are to:

(1) improve student learning;

(2) increase the choice of learning opportunities within the

public school system;

(3) create professional opportunities that will attract new

teachers to the public school system;

(4) establish a new form of accountability for public schools;

and

(5) encourage different and innovative learning methods.

(b) This chapter shall be applied in a manner that ensures the

fiscal and academic accountability of persons holding charters

issued under this chapter. This chapter may not be applied in a

manner that unduly regulates the instructional methods or

pedagogical innovations of charter schools.

Amended by Acts 2001, 77th Leg., ch. 1504, Sec. 1, eff. Sept. 1,

2001.

Sec. 12.0011. ALTERNATIVE METHOD OF OPERATION. As an

alternative to operating in the manner generally provided by this

title, an independent school district, a school campus, or an

educational program may choose to operate under a charter in

accordance with this chapter.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995. Renumbered from Sec. 12.001 by Acts 2001, 77th Leg., ch.

1504, Sec. 1, eff. Sept. 1, 2001.

Sec. 12.002. CLASSES OF CHARTER. The classes of charter under

this chapter are:

(1) a home-rule school district charter as provided by

Subchapter B;

(2) a campus or campus program charter as provided by Subchapter

C; or

(3) an open-enrollment charter as provided by Subchapter D.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 12.003. AUTHORITY OF BOARD OF TRUSTEES TO GRANT OTHER

CHARTERS. This chapter does not limit the authority of the board

of trustees of a school district to grant a charter to a campus

or program to operate in accordance with the other provisions of

this title and rules adopted under those provisions.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

SUBCHAPTER B. HOME-RULE SCHOOL DISTRICT CHARTER

Sec. 12.011. AUTHORIZATION AND STATUS. (a) In accordance with

this subchapter, a school district may adopt a home-rule school

district charter under which the district will operate.

(b) The adoption of a home-rule school district charter by a

school district does not affect:

(1) the district's boundaries; or

(2) taxes or bonds of the district authorized before the

effective date of the charter.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 12.012. APPLICABILITY OF LAWS AND RULES TO HOME-RULE SCHOOL

DISTRICT. (a) A home-rule school district is subject to federal

and state laws and rules governing school districts, except that

a home-rule school district is subject to:

(1) this code only to the extent that the applicability to a

home-rule school district of a provision of this code is

specifically provided;

(2) a rule adopted under this code by the State Board of

Education or the commissioner only if the code provision

authorizing the rule specifically applies to a home-rule school

district; and

(3) all requirements of federal law and applicable court orders

relating to eligibility for and the provision of special

education and bilingual programs.

(b) An employee of a home-rule school district who qualifies for

membership in the Teacher Retirement System of Texas shall be

covered under the system in the same manner and to the same

extent as a qualified employee employed by an independent school

district is covered.

(c) This section does not permit a home-rule school district to

discriminate against a student who has been diagnosed as having a

learning disability, including dyslexia or attention

deficit/hyperactivity disorder. Discrimination prohibited by this

subsection includes denial of placement in a gifted and talented

program if the student would otherwise be qualified for the

program but for the student's learning disability. This section

does not permit a home-rule school district to, on the basis of

race, socioeconomic status, learning disability, or family

support status, place a student in a program other than the

highest-level program necessary to ensure the student's success.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 12.013. APPLICABILITY OF TITLE. (a) A home-rule school

district has the powers and entitlements granted to school

districts and school district boards of trustees under this

title, including taxing authority.

(b) A home-rule school district is subject to:

(1) a provision of this title establishing a criminal offense;

(2) a provision of this title relating to limitations on

liability; and

(3) a prohibition, restriction, or requirement, as applicable,

imposed by this title or a rule adopted under this title,

relating to:

(A) the Public Education Information Management System (PEIMS)

to the extent necessary to monitor compliance with this

subchapter as determined by the commissioner;

(B) educator certification under Chapter 21 and educator rights

under Sections 21.407, 21.408, and 22.001;

(C) criminal history records under Subchapter C, Chapter 22;

(D) student admissions under Section 25.001;

(E) school attendance under Sections 25.085, 25.086, and 25.087;

(F) inter-district or inter-county transfers of students under

Subchapter B, Chapter 25;

(G) elementary class size limits under Section 25.112, in the

case of any campus in the district that fails to satisfy any

standard under Section 39.054(d);

(H) high school graduation under Section 28.025;

(I) special education programs under Subchapter A, Chapter 29;

(J) bilingual education under Subchapter B, Chapter 29;

(K) prekindergarten programs under Subchapter E, Chapter 29;

(L) safety provisions relating to the transportation of students

under Sections 34.002, 34.003, 34.004, and 34.008;

(M) computation and distribution of state aid under Chapters 31,

42, and 43;

(N) extracurricular activities under Section 33.081;

(O) health and safety under Chapter 38;

(P) public school accountability under Subchapters B, C, D, E,

and J, Chapter 39;

(Q) equalized wealth under Chapter 41;

(R) a bond or other obligation or tax rate under Chapters 42,

43, and 45; and

(S) purchasing under Chapter 44.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995. Amended by Acts 2003, 78th Leg., ch. 342, Sec. 2, eff.

Sept. 1, 2003.

Amended by:

Acts 2006, 79th Leg., 3rd C.S., Ch.

5, Sec. 3.03, eff. May 31, 2006.

Acts 2009, 81st Leg., R.S., Ch.

895, Sec. 13, eff. June 19, 2009.

Sec. 12.014. APPOINTMENT OF CHARTER COMMISSION. The board of

trustees of a school district shall appoint a charter commission

to frame a home-rule school district charter if:

(1) the board receives a petition requesting the appointment of

a charter commission to frame a home-rule school district charter

signed by at least five percent of the registered voters of the

district; or

(2) at least two-thirds of the total membership of the board

adopt a resolution ordering that a charter commission be

appointed.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 12.015. CHARTER COMMISSION. (a) Not later than the 30th

day after the date of receipt of a petition or adoption of a

resolution under Section 12.014, the board of trustees of the

school district shall appoint 15 residents of the district to

serve on the commission to frame a charter for the district.

(b) The membership of the charter commission must reflect the

racial, ethnic, socioeconomic, and geographic diversity of the

district. A majority of the members appointed to the commission

must be parents of school-age children attending public school.

At least 25 percent of the commission must be classroom teachers

selected by the representatives of the professional staff

pursuant to Section 11.251(e).

(c) The charter commission must complete a proposed charter not

later than the first anniversary of the date of its appointment.

After that date, the commission expires and the appointment under

Section 12.014 is void.

(d) A charter commission appointed under this section is

considered a governmental body for purposes of Chapters 551 and

552, Government Code.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 12.016. CONTENT. Each home-rule school district charter

must:

(1) describe the educational program to be offered;

(2) provide that continuation of the home-rule school district

charter is contingent on:

(A) acceptable student performance on assessment instruments

adopted under Subchapter B, Chapter 39; and

(B) compliance with other applicable accountability provisions

under Chapter 39;

(3) specify any basis, in addition to a basis specified by this

subchapter, on which the charter may be placed on probation or

revoked;

(4) describe the governing structure of the district and

campuses;

(5) specify any procedure or requirement, in addition to those

under Chapter 38, that the district will follow to ensure the

health and safety of students and employees;

(6) describe the process by which the district will adopt an

annual budget, including a description of the use of

program-weight funds;

(7) describe the manner in which an annual audit of financial

and programmatic operations of the district is to be conducted,

including the manner in which the district will provide

information necessary for the district to participate in the

Public Education Information Management System (PEIMS) to the

extent required by this subchapter; and

(8) include any other provision the charter commission considers

necessary.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 12.017. DETERMINATION OF COMPLIANCE WITH VOTING RIGHTS ACT.

(a) The charter commission shall submit the proposed charter to

the secretary of state. The secretary of state shall determine

whether a proposed charter contains a change in the governance of

the school district.

(b) If the secretary of state determines that a proposed charter

contains a change in the governance of the school district, the

secretary of state shall, not later than the second working day

after the date the secretary of state makes that determination,

notify the board of trustees of the school district. The board

shall submit the proposed change to the United States Department

of Justice or the United States District Court for the District

of Columbia for preclearance under the Voting Rights Act (42

U.S.C. Section 1973c et seq.).

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 12.018. LEGAL REVIEW. The charter commission shall submit

the proposed charter to the commissioner. As soon as practicable,

but not later than the 30th day after the date the commissioner

receives the proposed charter, the commissioner shall review the

proposed charter to ensure that the proposed charter complies

with any applicable laws and shall recommend to the charter

commission any modifications necessary. If the commissioner does

not act within the prescribed time, the proposed charter is

approved.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 12.019. CHARTER ELECTION. (a) As soon as practicable

after approval of a home-rule school district charter under

Section 12.018, the board of trustees of the district shall order

an election on the proposed charter.

(b) The proposed charter shall be submitted to the voters of the

district at an election to be held on the first uniform election

date that occurs at least 45 days after the date on which the

board of trustees orders the election.

(c) At least three copies of the proposed charter must be

available in the office of each school campus in the district and

at the district's central administrative office between the date

of the election order and election day. Notice of the election

must include a statement of where and how copies may be obtained

or viewed. A summary of the content of the proposed charter shall

be attached to each copy. The summary also shall be made

available to school district employees, parents, community

members, and members of the media.

(d) The ballot shall be printed to permit voting for or against

the proposition "Whether the (name of school district) School

District shall be governed under the home-rule school district

charter, which is proposed by a charter commission appointed by

the board of trustees and under which only certain laws and rules

apply to the district."

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 12.020. CHARTER AMENDMENT. (a) The governing body of a

home-rule school district on its own motion may submit a proposed

charter amendment that complies with this subchapter to the

commissioner for legal review.

(b) The governing body shall submit a proposed charter amendment

that complies with this subchapter to the commissioner for legal

review if a petition submitted to the governing body proposing

the charter amendment is signed by at least five percent of the

registered voters of the district.

(c) As soon as practicable, but not later than the 30th day

after the date on which the requirements for an election under

Subsection (a) or (b) are satisfied, the commissioner shall

review the proposed amendment to ensure that the proposed

amendment complies with any applicable laws and shall recommend

any modifications necessary. If the commissioner does not act

within the prescribed time, the proposed charter amendment is

approved.

(d) As soon as practicable after commissioner review under

Subsection (c), the governing body of the district shall order an

election on the proposed amendment.

(e) An election under this section shall be held on the first

uniform election date that occurs at least 45 days after the date

the election is ordered.

(f) Notice of the election must include a substantial copy of

the proposed charter amendment.

(g) A charter amendment may not contain more than one subject.

(h) The ballot shall be prepared so that a voter may approve or

disapprove any one or more charter amendments without having to

approve or disapprove all of the charter amendments.

(i) The governing body may not order an election on a proposed

charter amendment earlier than the first anniversary of the date

of any previous election to amend the charter.

(j) Section 12.017 applies to a proposed charter amendment,

except that the governing body shall submit the proposed charter

amendment to the secretary of state.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 12.021. ADOPTION OF CHARTER OR CHARTER AMENDMENT. (a)

Subject to Section 12.022, a proposed home-rule school district

charter or a proposed charter amendment is adopted if approved by

a majority of the qualified voters of the district voting at an

election held for that purpose.

(b) A charter or charter amendment shall specify an effective

date and takes effect according to its terms when the governing

body of the school district enters an order declaring that the

charter or charter amendment is adopted. The governing body shall

enter an order not later than the 10th day after the date the

canvass of the election returns is completed.

(c) As soon as practicable after a school district adopts a

home-rule school district charter or charter amendment, the board

of trustees or governing body shall notify the commissioner of

the outcome of the election.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 12.022. MINIMUM VOTER TURNOUT REQUIRED. (a) An election

on the adoption of a proposed home-rule school district charter

has no effect unless at least 25 percent of the registered voters

of the district vote in the election in which the adoption of the

charter is on the ballot.

(b) An election on the adoption of a proposed amendment to a

home-rule school district charter has no effect unless at least

20 percent of the registered voters of the district vote in the

election in which the adoption of the amendment is on the ballot.

(c) If the required number of voters prescribed by Subsection

(a) or (b) do not vote in the election, the board of trustees

shall order an election on the issue to be held on the first

uniform election date:

(1) that occurs at least 45 days after the date the election is

ordered; and

(2) on which one or more elections are to be held, the

combination of which covers all of the territory of the school

district.

(d) If the required number of voters prescribed by Subsection

(a) or (b) do not vote at an election ordered as required by

Subsection (c), the board of trustees may continue to order

elections on the issue in accordance with Subsection (c) until

the required minimum voter turnout is achieved.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 12.023. CERTIFICATION OF CHARTER OR CHARTER AMENDMENT. (a)

As soon as practicable after a school district adopts a

home-rule school district charter or charter amendment, the

president of the board of trustees shall certify to the secretary

of state a copy of the charter or amendment showing the approval

by the voters of the district.

(b) The secretary of state shall file and record the

certification in the secretary of state's office.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 12.024. EFFECT OF RECORDING CHARTER OR CHARTER AMENDMENT.

A recorded charter or charter amendment is a public act. A court

shall take judicial notice of a recorded charter or charter

amendment and proof is not required of its provisions.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 12.025. GOVERNANCE. (a) A home-rule school district may

adopt and operate under any governing structure.

(b) The district may:

(1) create offices;

(2) determine the time and method for selecting officers; and

(3) prescribe the qualifications and duties of officers.

(c) The term of any officer of the district is determined under

Section 11.059.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 12.026. CHANGE IN GOVERNING BODY. If the adoption,

amendment, or revocation of a home-rule school district charter

changes the structure of the governing body of the school

district, the members of the governing body serving on the date

the adoption, amendment, or revocation takes effect continue in

office until their successors are chosen and have qualified for

office.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 12.027. BASIS FOR PLACEMENT ON PROBATION OR REVOCATION OF

CHARTER. (a) The State Board of Education may place on

probation or revoke a home-rule school district charter of a

school district if the board determines that the district:

(1) committed a material violation of the charter;

(2) failed to satisfy generally accepted accounting standards of

fiscal management; or

(3) failed to comply with this subchapter or other applicable

federal or state law or rule.

(b) The action the board takes under Subsection (a) shall be

based on the best interest of district students, the severity of

the violation, and any previous violation the district has

committed.

(c) A district whose home-rule school district charter is

revoked or rescinded under this subchapter shall operate under

the other provisions of Title 1 and this title that apply to

school districts.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 12.028. PROCEDURE FOR PLACEMENT ON PROBATION OR REVOCATION.

(a) The State Board of Education by rule shall adopt a

procedure to be used for placing on probation or revoking a

home-rule school district charter.

(b) The procedure adopted under Subsection (a) must provide an

opportunity for a hearing to the district and to parents of

district students. A hearing under this subsection must be held

in the district.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 12.029. STATUS OF DISTRICT IN CASE OF ANNEXATION OR

CONSOLIDATION. (a) If a school district is annexed to another

district under Chapter 13, and only one of the districts has a

home-rule school district status, the status, as a home-rule or

other type of school district, of the receiving district is the

status for both districts following annexation.

(b) Except as provided by Subchapter H, Chapter 41, if two or

more school districts having different status, one of which is

home-rule school district status, consolidate into a single

district, the petition under Section 13.003 initiating the

consolidation must state the status for the consolidated

district. The ballot shall be printed to permit voting for or

against the proposition: "Consolidation of (names of school

districts) into a single school district governed as (status of

school district specified in the petition)."

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 12.030. RESCISSION OF CHARTER. (a) A home-rule school

district charter may be rescinded as provided by this section.

(b) The governing body of the district shall order an election

on the question of rescinding a home-rule school district charter

if:

(1) the governing body receives a petition requesting a

rescission election signed by at least five percent of the

registered voters of the district; or

(2) at least two-thirds of the total membership of the governing

body adopt a resolution ordering that a rescission election be

held.

(c) As soon as practicable after the date of receipt or adoption

of a resolution under Subsection (b), the governing body shall

order an election.

(d) The proposition to rescind the home-rule school district

charter shall be submitted to the voters of the district at an

election to be held on the first uniform election date that

occurs at least 45 days after the date on which the governing

body orders the election.

(e) The ballot shall be printed to permit voting for or against

the proposition: "Whether the home-rule school district charter

of (name of school district) shall be rescinded so that the

school district becomes an independent school district."

(f) A home-rule school district charter is rescinded if the

rescission is approved by a majority of the qualified voters of

the district voting at an election held for that purpose at which

at least 25 percent of the registered voters of the district

vote.

(g) The rescission takes effect on a date established by

resolution of the governing body but not later than the 90th day

after the date of an election held under this section at which

rescission of the charter is approved and at which the number of

registered voters required under Subsection (f) vote. As soon as

practicable after that election, the governing body shall notify

the commissioner and the secretary of state of the results of the

election and of the effective date of the rescission.

(h) The rescission of a home-rule school district charter under

this section does not affect:

(1) the district's boundaries; or

(2) taxes or bonds of the district authorized before the

effective date of the rescission.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

SUBCHAPTER C. CAMPUS OR CAMPUS PROGRAM CHARTER

Sec. 12.051. DEFINITIONS. In this subchapter:

(1) "Parent" means the parent who is indicated on the student

registration form at that school campus.

(2) "Board" and "board of trustees" mean the board of trustees

of a school district or the governing body of a home-rule school

district.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 12.052. AUTHORIZATION. (a) In accordance with this

subchapter, the board of trustees of a school district or the

governing body of a home-rule school district may grant a charter

to parents and teachers for a campus or a program on a campus if

the board is presented with a petition signed by:

(1) the parents of a majority of the students at that school

campus; and

(2) a majority of the classroom teachers at that school campus.

(b) For purposes of Subsection (a)(1), the signature of only one

parent of a student is required.

(c) The board of trustees may not arbitrarily deny a charter

under this section.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 12.0521. ALTERNATIVE AUTHORIZATION. (a) Notwithstanding

Section 12.052, in accordance with this subchapter and in the

manner provided by this section, the board of trustees of a

school district or the governing body of a home-rule school

district may grant a charter for:

(1) a new district campus; or

(2) a program that is operated:

(A) by an entity that has entered into a contract with the

district under Section 11.157 to provide educational services to

the district through the campus or program; and

(B) at a facility located in the boundaries of the district.

(b) A student's parent or guardian may choose to enroll the

student at a campus or in a program under this section. A school

district may not assign a student to a campus or program under

this section unless the student's parent or guardian has

voluntarily enrolled the student at the campus or in the program.

A student's parent or guardian may, at any time, remove the

student from a campus or program under this section and enroll

the student at the campus to which the student would ordinarily

be assigned.

(c) A school district may not assign to a campus or program

under this section a teacher who has signed a written statement

that the teacher does not agree to that assignment.

Added by Acts 2003, 78th Leg., ch. 1212, Sec. 1, eff. June 20,

2003.

Sec. 12.053. COOPERATIVE CAMPUS CHARTER. (a) The board of

trustees may grant a charter to parents and teachers at two or

more campuses in the district for a cooperative charter program

if the board is presented with a petition signed by:

(1) the parents of a majority of the students at each school

campus; and

(2) a majority of the classroom teachers at each school campus.

(b) For purposes of Subsection (a)(1), the signature of only one

parent is required.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 12.054. AUTHORITY UNDER CHARTER. A campus or program for

which a charter is granted under this subchapter:

(1) is exempt from the instructional and academic rules and

policies of the board of trustees from which the campus or

program is specifically exempted in the charter; and

(2) retains authority to operate under the charter only if

students at the campus or in the program perform satisfactorily

as provided by the charter in accordance with Section 12.059.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995. Amended by Acts 1997, 75th Leg., ch. 1335, Sec. 2, eff.

Sept. 1, 1997.

Sec. 12.055. APPLICABILITY OF LAWS AND RULES TO CAMPUS OR

PROGRAM GRANTED CHARTER. A campus or program for which a charter

is granted under this subchapter is subject to federal and state

laws and rules governing public schools, except that the campus

or program is subject to this code and rules adopted under this

code only to the extent the applicability to a campus or program

for which a charter is granted under this subchapter of a

provision of this code or a rule adopted under this code is

specifically provided.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 12.056. APPLICABILITY OF TITLE. (a) A campus or program

for which a charter is granted under this subchapter has the

powers granted to schools under this title.

(b) A campus or program for which a charter is granted under

this subchapter is subject to:

(1) a provision of this title establishing a criminal offense;

and

(2) a prohibition, restriction, or requirement, as applicable,

imposed by this title or a rule adopted under this title,

relating to:

(A) the Public Education Information Management System (PEIMS)

to the extent necessary to monitor compliance with this

subchapter as determined by the commissioner;

(B) criminal history records under Subchapter C, Chapter 22;

(C) high school graduation under Section 28.025;

(D) special education programs under Subchapter A, Chapter 29;

(E) bilingual education under Subchapter B, Chapter 29;

(F) prekindergarten programs under Subchapter E, Chapter 29;

(G) extracurricular activities under Section 33.081;

(H) health and safety under Chapter 38; and

(I) public school accountability under Subchapters B, C, E, and

J, Chapter 39.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

895, Sec. 14, eff. June 19, 2009.

Sec. 12.057. STATUS. (a) With respect to the operation of a

campus or program granted a charter under this subchapter, the

governing body of the campus or program provided for under the

charter is considered a governmental body for purposes of

Chapters 551 and 552, Government Code.

(b) An employee of an independent school district who is

employed on a campus or program granted a charter under this

subchapter and who qualifies for membership in the Teacher

Retirement System of Texas shall be covered under the system in

the same manner and to the same extent as a qualified employee of

the independent school district who is employed on a regularly

operating campus or in a regularly operating program.

(c) A campus or program granted a charter under Section 12.052,

12.0521(a)(1), or 12.053 is immune from liability to the same

extent as a school district, and its employees and volunteers are

immune from liability to the same extent as school district

employees and volunteers.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995. Amended by Acts 2003, 78th Leg., ch. 1212, Sec. 2, eff.

June 20, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

1359, Sec. 1, eff. September 1, 2005.

Sec. 12.058. CHARTER POLICY. Each school district shall adopt

a campus charter and program charter policy. The policy must

specify:

(1) the process to be followed for approval of a campus charter

or a program charter;

(2) the statutory requirements with which a campus charter or

program charter must comply; and

(3) the items that must be included in a charter application.

Added by Acts 1997, 75th Leg., ch. 1335, Sec. 1, eff. Sept. 1,

1997. Amended by Acts 2003, 78th Leg., ch. 1212, Sec. 2, eff.

June 20, 2003.

Sec. 12.059. CONTENT. Each charter granted under this

subchapter must:

(1) describe the educational program to be offered, which may be

a general or specialized program;

(2) provide that continuation of the charter is contingent on

satisfactory student performance under Subchapter B, Chapter 39,

and on compliance with other applicable accountability provisions

under Chapter 39;

(3) specify any basis, in addition to a basis specified by this

subchapter, on which the charter may be placed on probation or

revoked;

(4) prohibit discrimination in admission on the basis of

national origin, ethnicity, race, religion, or disability;

(5) describe the governing structure of the campus or program;

(6) specify any procedure or requirement, in addition to those

under Chapter 38, that the campus or program will follow to

ensure the health and safety of students and employees; and

(7) describe the manner in which an annual audit of financial

and programmatic operations of the campus or program is to be

conducted, including the manner in which the campus or program

will provide information necessary for the school district in

which it is located to participate, as required by this code or

by State Board of Education rule, in the Public Education

Information Management System (PEIMS).

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995. Renumbered from Education Code Sec. 12.058 by Acts 1997,

75th Leg., ch. 1335, Sec. 1, eff. Sept. 1, 1997.

Sec. 12.060. FORM. A charter shall be in the form and substance

of a written contract signed by the president of the board of

trustees granting the charter and the chief operating officer of

the campus or program for which the charter is granted.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995. Renumbered from Education Code Sec. 12.059 by Acts 1997,

75th Leg., ch. 1335, Sec. 1, eff. Sept. 1, 1997.

Sec. 12.061. CHARTER GRANTED. Each charter a board of trustees

grants under this subchapter must:

(1) satisfy this subchapter; and

(2) include the information that is required under Section

12.059 consistent with the information provided in the

application and any modification the board requires.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995. Renumbered from Education Code Sec. 12.060 and amended by

Acts 1997, 75th Leg., ch. 1335, Sec. 1, eff. Sept. 1, 1997.

Sec. 12.062. REVISION. (a) A charter granted under Section

12.052 or 12.053 may be revised:

(1) with the approval of the board of trustees that granted the

charter; and

(2) on a petition signed by a majority of the parents and a

majority of the classroom teachers at the campus or in the

program, as applicable.

(b) A charter granted under Section 12.0521 may be revised with

the approval of the board of trustees that granted the charter. A

charter may be revised under this subsection only before the

first day of instruction of a school year or after the final day

of instruction of a school year.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995. Renumbered from Education Code Sec. 12.061 by Acts 1997,

75th Leg., ch. 1335, Sec. 1, eff. Sept. 1, 1997. Amended by Acts

2003, 78th Leg., ch. 1212, Sec. 2, eff. June 20, 2003.

Sec. 12.063. BASIS FOR PLACEMENT ON PROBATION OR REVOCATION.

(a) A board of trustees may place on probation or revoke a

charter it grants if the board determines that the campus or

program:

(1) committed a material violation of the charter;

(2) failed to satisfy generally accepted accounting standards of

fiscal management; or

(3) failed to comply with this subchapter, another law, or a

state agency rule.

(b) The action the board takes under Subsection (a) shall be

based on the best interest of campus or program students, the

severity of the violation, and any previous violation the campus

or program has committed.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995. Renumbered from Education Code Sec. 12.062 by Acts 1997,

75th Leg., ch. 1335, Sec. 1, eff. Sept. 1, 1997.

Sec. 12.064. PROCEDURE FOR PLACEMENT ON PROBATION OR REVOCATION.

(a) Each board of trustees that grants a charter under this

subchapter shall adopt a procedure to be used for placing on

probation or revoking a charter it grants.

(b) The procedure adopted under Subsection (a) must provide an

opportunity for a hearing to the campus or program for which a

charter is granted under this subchapter and to parents and

guardians of students at the campus or in the program. A hearing

under this subsection must be held on the campus or on one of the

campuses in the case of a cooperative charter program.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995. Renumbered from Education Code Sec. 12.063 by Acts 1997,

75th Leg., ch. 1335, Sec. 1, eff. Sept. 1, 1997.

Sec. 12.065. ADMISSION. (a) Eligibility criteria for admission

of students to the campus or program for which a charter is

granted under this subchapter must give priority on the basis of

geographic and residency considerations. After priority is given

on those bases, secondary consideration may be given to a

student's age, grade level, or academic credentials in general or

in a specific area, as necessary for the type of program offered.

(b) The campus or program may require an applicant to submit an

application not later than a reasonable deadline the campus or

program establishes.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995. Renumbered from Education Code Sec. 12.064 by Acts 1997,

75th Leg., ch. 1335, Sec. 1, eff. Sept. 1, 1997.

SUBCHAPTER D. OPEN-ENROLLMENT CHARTER SCHOOL

Sec. 12.101. AUTHORIZATION. (a) In accordance with this

subchapter, the State Board of Education may grant a charter on

the application of an eligible entity for an open-enrollment

charter school to operate in a facility of a commercial or

nonprofit entity, an eligible entity, or a school district,

including a home-rule school district. In this subsection,

"eligible entity" means:

(1) an institution of higher education as defined under Section

61.003;

(2) a private or independent institution of higher education as

defined under Section 61.003;

(3) an organization that is exempt from taxation under Section

501(c)(3), Internal Revenue Code of 1986 (26 U.S.C. Section

501(c)(3)); or

(4) a governmental entity.

(b) The State Board of Education may grant a charter for an

open-enrollment charter school only to an applicant that meets

any financial, governing, and operational standards adopted by

the commissioner under this subchapter. The State Board of

Education may not grant a total of more than 215 charters for an

open-enrollment charter school.

(c) If the facility to be used for an open-enrollment charter

school is a school district facility, the school must be operated

in the facility in accordance with the terms established by the

board of trustees or other governing body of the district in an

agreement governing the relationship between the school and the

district.

(d) An educator employed by a school district before the

effective date of a charter for an open-enrollment charter school

operated at a school district facility may not be transferred to

or employed by the open-enrollment charter school over the

educator's objection.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995. Amended by Acts 2001, 77th Leg., ch. 1504, Sec. 2, eff.

Sept. 1, 2001; Acts 2003, 78th Leg., ch. 193, Sec. 1, eff. June

2, 2003.

Sec. 12.1012. DEFINITIONS. In this subchapter:

(1) "Charter holder" means the entity to which a charter is

granted under this subchapter.

(2) "Governing body of a charter holder" means the board of

directors, board of trustees, or other governing body of a

charter holder.

(3) "Governing body of an open-enrollment charter school" means

the board of directors, board of trustees, or other governing

body of an open-enrollment charter school. The term includes the

governing body of a charter holder if that body acts as the

governing body of the open-enrollment charter school.

(4) "Management company" means a person, other than a charter

holder, who provides management services for an open-enrollment

charter school.

(5) "Management services" means services related to the

management or operation of an open-enrollment charter school,

including:

(A) planning, operating, supervising, and evaluating the

school's educational programs, services, and facilities;

(B) making recommendations to the governing body of the school

relating to the selection of school personnel;

(C) managing the school's day-to-day operations as its

administrative manager;

(D) preparing and submitting to the governing body of the school

a proposed budget;

(E) recommending policies to be adopted by the governing body of

the school, developing appropriate procedures to implement

policies adopted by the governing body of the school, and

overseeing the implementation of adopted policies; and

(F) providing leadership for the attainment of student

performance at the school based on the indicators adopted under

Sections 39.053 and 39.301 or by the governing body of the

school.

(6) "Officer of an open-enrollment charter school" means:

(A) the principal, director, or other chief operating officer of

an open-enrollment charter school;

(B) an assistant principal or assistant director of an

open-enrollment charter school; or

(C) a person charged with managing the finances of an

open-enrollment charter school.

Added by Acts 2001, 77th Leg., ch. 1504, Sec. 3, eff. Sept. 1,

2001.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

895, Sec. 15, eff. June 19, 2009.

Sec. 12.102. AUTHORITY UNDER CHARTER. An open-enrollment

charter school:

(1) shall provide instruction to students at one or more

elementary or secondary grade levels as provided by the charter;

(2) is governed under the governing structure described by the

charter;

(3) retains authority to operate under the charter contingent on

satisfactory student performance as provided by the charter in

accordance with Section 12.111; and

(4) does not have authority to impose taxes.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995.

Sec. 12.103. GENERAL APPLICABILITY OF LAWS, RULES, AND

ORDINANCES TO OPEN-ENROLLMENT CHARTER SCHOOL. (a) Except as

provided by Subsection (b) or (c), an open-enrollment charter

school is subject to federal and state laws and rules governing

public schools and to municipal zoning ordinances governing

public schools.

(b) An open-enrollment charter school is subject to this code

and rules adopted under this code only to the extent the

applicability to an open-enrollment charter school of a provision

of this code or a rule adopted under this code is specifically

provided.

(c) Notwithstanding Subsection (a), a campus of an

open-enrollment charter school located in whole or in part in a

municipality with a population of 20,000 or less is not subject

to a municipal zoning ordinance governing public schools.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995. Amended by Acts 2001, 77th Leg., ch. 1504, Sec. 4, eff.

Sept. 1, 2001.

Sec. 12.104. APPLICABILITY OF TITLE. (a) An open-enrollment

charter school has the powers granted to schools under this

title.

(b) An open-enrollment charter school is subject to:

(1) a provision of this title establishing a criminal offense;

and

(2) a prohibition, restriction, or requirement, as applicable,

imposed by this title or a rule adopted under this title,

relating to:

(A) the Public Education Information Management System (PEIMS)

to the extent necessary to monitor compliance with this

subchapter as determined by the commissioner;

(B) criminal history records under Subchapter C, Chapter 22;

(C) reading instruments and accelerated reading instruction

programs under Section 28.006;

(D) accelerated instruction under Section 28.0211;

(E) high school graduation requirements under Section 28.025;

(F) special education programs under Subchapter A, Chapter 29;

(G) bilingual education under Subchapter B, Chapter 29;

(H) prekindergarten programs under Subchapter E, Chapter 29;

(I) extracurricular activities under Section 33.081;

(J) discipline management practices or behavior management

techniques under Section 37.0021;

(K) health and safety under Chapter 38;

(L) public school accountability under Subchapters B, C, D, E,

and J, Chapter 39;

(M) the requirement under Section 21.006 to report an educator's

misconduct; and

(N) intensive programs of instruction under Section 28.0213.

(c) An open-enrollment charter school is entitled to the same

level of services provided to school districts by regional

education service centers. The commissioner shall adopt rules

that provide for the representation of open-enrollment charter

schools on the boards of directors of regional education service

centers.

(d) The commissioner may by rule permit an open-enrollment

charter school to voluntarily participate in any state program

available to school districts, including a purchasing program, if

the school complies with all terms of the program.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995. Amended by Acts 1999, 76th Leg., ch. 396, Sec. 2.04, eff.

Sept. 1, 1999; Acts 2001, 77th Leg., ch. 212, Sec. 2, eff. Sept.

1, 2001; Acts 2001, 77th Leg., ch. 1504, Sec. 5, eff. Sept. 1,

2001; Acts 2003, 78th Leg., ch. 374, Sec. 1, eff. June 18, 2003;

Acts 2003, 78th Leg., ch. 1212, Sec. 3, eff. June 20, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

728, Sec. 5.001, eff. September 1, 2005.

Acts 2009, 81st Leg., R.S., Ch.

895, Sec. 16, eff. June 19, 2009.

Sec. 12.105. STATUS. An open-enrollment charter school is part

of the public school system of this state.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995. Amended by Acts 1999, 76th Leg., ch. 1335, Sec. 1, eff.

June 19, 1999; Acts 2001, 77th Leg., ch. 1504, Sec. 6, eff. Sept.

1, 2001.

Sec. 12.1051. APPLICABILITY OF OPEN MEETINGS AND PUBLIC

INFORMATION LAWS. (a) With respect to the operation of an

open-enrollment charter school, the governing body of a charter

holder and the governing body of an open-enrollment charter

school are considered to be governmental bodies for purposes of

Chapters 551 and 552, Government Code.

(b) With respect to the operation of an open-enrollment charter

school, any requirement in Chapter 551 or 552, Government Code,

or another law that concerns open meetings or the availability of

information, that applies to a school district, the board of

trustees of a school district, or public school students applies

to an open-enrollment charter school, the governing body of a

charter holder, the governing body of an open-enrollment charter

school, or students attending an open-enrollment charter school.

Amended by Acts 1999, 76th Leg., ch. 1335, Sec. 1, eff. June 19,

1999. Renumbered from Sec. 12.105(b) and amended by Acts 2001,

77th Leg., ch. 1504, Sec. 6, eff. Sept. 1, 2001.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

258, Sec. 3.01, eff. September 1, 2007.

Sec. 12.1052. APPLICABILITY OF LAWS RELATING TO LOCAL GOVERNMENT

RECORDS. (a) With respect to the operation of an

open-enrollment charter school, an open-enrollment charter school

is considered to be a local government for purposes of Subtitle

C, Title 6, Local Government Code, and Subchapter J, Chapter 441,

Government Code.

(b) Records of an open-enrollment charter school and records of

a charter holder that relate to an open-enrollment charter school

are government records for all purposes under state law.

(c) Any requirement in Subtitle C, Title 6, Local Government

Code, or Subchapter J, Chapter 441, Government Code, that applies

to a school district, the board of trustees of a school district,

or an officer or employee of a school district applies to an

open-enrollment charter school, the governing body of a charter

holder, the governing body of an open-enrollment charter school,

or an officer or employee of an open-enrollment charter school

except that the records of an open-enrollment charter school that

ceases to operate shall be transferred in the manner prescribed

by Subsection (d).

(d) The records of an open-enrollment charter school that ceases

to operate shall be transferred in the manner specified by the

commissioner to a custodian designated by the commissioner. The

commissioner may designate any appropriate entity to serve as

custodian, including the agency, a regional education service

center, or a school district. In designating a custodian, the

commissioner shall ensure that the transferred records, including

student and personnel records, are transferred to a custodian

capable of:

(1) maintaining the records;

(2) making the records readily accessible to students, parents,

former school employees, and other persons entitled to access;

and

(3) complying with applicable state or federal law restricting

access to the records.

(e) If the charter holder of an open-enrollment charter school

that ceases to operate or an officer or employee of such a school

refuses to transfer school records in the manner specified by the

commissioner under Subsection (d), the commissioner may ask the

attorney general to petition a court for recovery of the records.

If the court grants the petition, the court shall award

attorney's fees and court costs to the state.

Added by Acts 2001, 77th Leg., ch. 1504, Sec. 6, eff. Sept. 1,

2001.

Sec. 12.1053. APPLICABILITY OF LAWS RELATING TO PUBLIC

PURCHASING AND CONTRACTING. (a) This section applies to an

open-enrollment charter school unless the school's charter

otherwise describes procedures for purchasing and contracting and

the procedures are approved by the State Board of Education.

(b) An open-enrollment charter school is considered to be:

(1) a governmental entity for purposes of:

(A) Subchapter D, Chapter 2252, Government Code; and

(B) Subchapter B, Chapter 271, Local Government Code;

(2) a political subdivision for purposes of Subchapter A,

Chapter 2254, Government Code; and

(3) a local government for purposes of Sections

2256.009-2256.016, Government Code.

(c) To the extent consistent with this section, a requirement in

a law listed in this section that applies to a school district or

the board of trustees of a school district applies to an

open-enrollment charter school, the governing body of a charter

holder, or the governing body of an open-enrollment charter

school.

Added by Acts 2001, 77th Leg., ch. 1504, Sec. 6, eff. Sept. 1,

2001.

Sec. 12.1054. APPLICABILITY OF LAWS RELATING TO CONFLICT OF

INTEREST. (a) A member of the governing body of a charter

holder, a member of the governing body of an open-enrollment

charter school, or an officer of an open-enrollment charter

school is considered to be a local public official for purposes

of Chapter 171, Local Government Code. For purposes of that

chapter:

(1) a member of the governing body of a charter holder or a

member of the governing body or officer of an open-enrollment

charter school is considered to have a substantial interest in a

business entity if a person related to the member or officer in

the third degree by consanguinity or affinity, as determined

under Chapter 573, Government Code, has a substantial interest in

the business entity under Section 171.002, Local Government Code;

(2) notwithstanding any provision of Section 12.1054(1), an

employee of an open-enrollment charter school rated acceptable or

higher under Section 39.054 for at least two of the preceding

three school years may serve as a member of the governing body of

the charter holder of the governing body of the school if the

employees do not constitute a quorum of the governing body or any

committee of the governing body; however, all members shall

comply with the requirements of Sections 171.003-171.007, Local

Government Code.

(b) To the extent consistent with this section, a requirement in

a law listed in this section that applies to a school district or

the board of trustees of a school district applies to an

open-enrollment charter school, the governing body of a charter

holder, or the governing body of an open-enrollment charter

school.

Added by Acts 2001, 77th Leg., ch. 1504, Sec. 6, eff. Sept. 1,

2001.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

895, Sec. 17, eff. June 19, 2009.

Sec. 12.1055. APPLICABILITY OF NEPOTISM LAWS. (a) An

open-enrollment charter school is subject to a prohibition,

restriction, or requirement, as applicable, imposed by state law

or by a rule adopted under state law, relating to nepotism under

Chapter 573, Government Code.

(b) Notwithstanding Subsection (a), if an open-enrollment

charter school is rated acceptable or higher under Section 39.054

for at least two of the preceding three school years, then

Chapter 573, Government Code, does not apply to that school;

however, a member of the governing body of a charter holder or a

member of the governing body or officer of an open-enrollment

charter school shall comply with the requirements of Sections

171.003-171.007, Local Government Code, with respect to a

personnel matter concerning a person related to the member or

officer within the degree specified by Section 573.002,

Government Code, as if the personnel matter were a transaction

with a business entity subject to those sections, and persons

defined under Sections 573.021-573.025, Government Code, shall

not constitute a quorum of the governing body or any committee of

the governing body.

Added by Acts 2001, 77th Leg., ch. 1504, Sec. 6, eff. Sept. 1,

2001.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

895, Sec. 18, eff. June 19, 2009.

Sec. 12.1056. IMMUNITY FROM LIABILITY. In matters related to

operation of an open-enrollment charter school, an

open-enrollment charter school is immune from liability to the

same extent as a school district, and its employees and

volunteers are immune from liability to the same extent as school

district employees and volunteers. A member of the governing body

of an open-enrollment charter school or of a charter holder is

immune from liability to the same extent as a school district

trustee.

Amended by Acts 1999, 76th Leg., ch. 1335, Sec. 1, eff. June 19,

1999. Renumbered from Sec. 12.105(c) and amended by Acts 2001,

77th Leg., ch. 1504, Sec. 6, eff. Sept. 1, 2001.

Sec. 12.1057. MEMBERSHIP IN TEACHER RETIREMENT SYSTEM OF TEXAS.

(a) An employee of an open-enrollment charter school operating

under a charter granted by the State Board of Education who

qualifies for membership in the Teacher Retirement System of

Texas shall be covered under the system to the same extent a

qualified employee of a school district is covered.

(b) For each employee of the school covered under the system,

the school is responsible for making any contribution that

otherwise would be the legal responsibility of the school

district, and the state is responsible for making contributions

to the same extent it would be legally responsible if the

employee were a school district employee.

Amended by Acts 1999, 76th Leg., ch. 1335, Sec. 1, eff. June 19,

1999. Renumbered from Sec. 12.105(d) and amended by Acts 2001,

77th Leg., ch. 1504, Sec. 6, eff. Sept. 1, 2001.

Amended by:

Acts 2005, 79th Leg., Ch.

1359, Sec. 2, eff. September 1, 2005.

Sec. 12.1059. AGENCY APPROVAL REQUIRED FOR CERTAIN EMPLOYEES. A

person may not be employed by or serve as a teacher, librarian,

educational aide, administrator, or counselor for an

open-enrollment charter school unless the person has been

approved by the agency following a review of the person's

national criminal history record information as provided by

Section 22.0832.

Added by Acts 2007, 80th Leg., R.S., Ch.

1372, Sec. 2, eff. June 15, 2007.

Sec. 12.106. STATE FUNDING. (a) A charter holder is entitled

to receive for the open-enrollment charter school funding under

Chapter 42 equal to the greater of:

(1) the amount of funding per student in weighted average daily

attendance, excluding enrichment funding under Sections

42.302(a-1)(2) and (3), as they existed on January 1, 2009, that

would have been received for the school during the 2009-2010

school year under Chapter 42 as it existed on January 1, 2009,

and an additional amount of $120 for each student in weighted

average daily attendance; or

(2) the amount of funding per student in weighted average daily

attendance, excluding enrichment funding under Section 42.302(a),

to which the charter holder would be entitled for the school

under Chapter 42 if the school were a school district without a

tier one local share for purposes of Section 42.253 and without

any local revenue for purposes of Section 42.2516.

(a-1) In determining funding for an open-enrollment charter

school under Subsection (a), adjustments under Sections 42.102,

42.103, 42.104, and 42.105 are based on the average adjustment

for the state.

(a-2) In addition to the funding provided by Subsection (a), a

charter holder is entitled to receive for the open-enrollment

charter school enrichment funding under Section 42.302 based on

the state average tax effort.

(b) An open-enrollment charter school is entitled to funds that

are available to school districts from the agency or the

commissioner in the form of grants or other discretionary funding

unless the statute authorizing the funding explicitly provides

that open-enrollment charter schools are not entitled to the

funding.

(c) The commissioner may adopt rules to provide and account for

state funding of open-enrollment charter schools under this

section. A rule adopted under this section may be similar to a

provision of this code that is not similar to Section 12.104(b)

if the commissioner determines that the rule is related to

financing of open-enrollment charter schools and is necessary or

prudent to provide or account for state funds.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995. Amended by Acts 2001, 77th Leg., ch. 1504, Sec. 7, eff.

Sept. 1, 2001.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1328, Sec. 5, eff. September 1, 2009.

Sec. 12.1061. RECOVERY OF CERTAIN FUNDS. The commissioner may

not garnish or otherwise recover funds paid to an open-enrollment

charter school under Section 12.106 if:

(1) the basis of the garnishment or recovery is that:

(A) the number of students enrolled in the school during a

school year exceeded the student enrollment described by the

school's charter during that period; and

(B) the school received funding under Section 12.106 based on

the school's actual student enrollment;

(2) the school:

(A) submits to the commissioner a timely request to revise the

maximum student enrollment described by the school's charter and

the commissioner does not notify the school in writing of an

objection to the proposed revision before the 90th day after the

date on which the commissioner received the request, provided

that the number of students enrolled at the school does not

exceed the enrollment described by the school's request; or

(B) exceeds the maximum student enrollment described by the

school's charter only because a court mandated that a specific

child enroll in that school; and

(3) the school used all funds received under Section 12.106 to

provide education services to students.

Added by Acts 2003, 78th Leg., ch. 1048, Sec. 1, eff. June 20,

2003.

Sec. 12.107. STATUS AND USE OF FUNDS. (a) Funds received under

Section 12.106 after September 1, 2001, by a charter holder:

(1) are considered to be public funds for all purposes under

state law;

(2) are held in trust by the charter holder for the benefit of

the students of the open-enrollment charter school;

(3) may be used only for a purpose for which a school may use

local funds under Section 45.105(c); and

(4) pending their use, must be deposited into a bank, as defined

by Section 45.201, with which the charter holder has entered into

a depository contract.

(b) A charter holder shall deliver to the agency a copy of the

depository contract between the charter holder and any bank into

which state funds are deposited.

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30,

1995. Amended by Acts 2001, 77th Leg., ch. 1504, Sec. 7, eff.

Sept. 1, 2001.

Sec. 12.1071. EFFECT OF ACCEPTING STATE FUNDING. (a) A charter

holder who accepts state funds under