The following words and terms, when used in this subchapter, have the following meaning, unless the context clearly indicates otherwise.
  (1) Charter holder, governing body of a charter holder, and governing body of a charter school--The definitions of these terms are assigned in Texas Education Code (TEC), §12.1012.
  (2) Former charter holder--An entity that is or was a charter holder, but that has ceased to operate a charter school because its open-enrollment charter has been revoked, surrendered, abandoned, or denied renewal, or because all programs have been ordered closed under TEC, Chapter 39.
    (A) A charter holder whose authority to operate has been suspended under TEC, §12.1162, is not a former charter holder.
    (B) A charter holder with more than one open-enrollment charter is a former charter holder only with respect to the open-enrollment charter that authorizes a charter school that has ceased to operate. The charter holder is not a former charter holder with respect to an open-enrollment charter that authorizes a charter school that continues to operate.
  (3) Charter school--A Texas public school operated by a charter holder under an open-enrollment charter granted either by the State Board of Education (SBOE) or commissioner of education, whichever is applicable, pursuant to TEC, §12.101, identified with its own county district number.
    (A) An "employee of a charter school," as used in this subchapter, means a person paid to work at a charter school under the direction and control of an officer of a charter school, regardless of whether the person is on the payroll of the charter holder, a charter school operated by the charter holder, a management company providing management services to the charter holder, or any other person.
    (B) An "employee of a charter holder," as used in this subchapter, means a charter holder employee who engages in no charter school activity and is not an officer of any charter school.
    (C) A charter school "campus," as used in this subchapter, means an organizational unit of a charter school determined by the Texas Education Agency (TEA) to be an instructional campus for purposes of data collection and reporting. A campus may be a single site or may include multiple sites as described in subparagraph (D) of this paragraph.
    (D) A charter school "site," as used in this subchapter, means an organizational unit of a charter school with administrative personnel identified by a separate street address within 50 miles of the campus with which it is associated and fully described in the open-enrollment charter. A "site" must be approved for instructional use either in the original open-enrollment charter as granted by the SBOE or commissioner or in an amendment granted under §100.1033(b)(10) of this title (relating to Charter Amendment).
    (E) A charter school "facility," as used in this subchapter, means a building located on the same contiguous land as the campus with which it is associated or within one mile of the campus. The facility and its associated address must be approved for instructional use through the submission of a certificate of occupancy (COO) to the commissioner prior to serving students in said facility.
  (4) Real estate--An interest, including a lease interest, in real property recognized by Texas law, or in improvements such as buildings, fixtures, utilities, landscaping, construction in progress, or other improvements.
  (5) Lease interest--The legal rights obtained under a capital or operating lease. These include the right to occupy, use, and enjoy the real estate given by the property owner in exchange for rental payments or other consideration specified in the lease, together with any associated rights that the lease confers on the tenant under the lease or other law.
  (6) Personal property--An interest in personal property recognized by Texas law, including:
    (A) furniture, equipment, supplies, and other goods;
    (B) computer hardware and software;
    (C) contract rights, intellectual property such as patents, and other intangible property;
    (D) cash, currency, funds, bank accounts, securities, and other investment instruments;
    (E) the right to repayment of a loan, advance, or prepayment or to the payment of other receivables; and
    (F) any other form of personal property recognized by Texas law.
  (7) Capitalized personal property, fixed assets, ownership interest, cost basis, accumulated depreciation, loan, debt, credit, and fair market valuation--The definitions of these terms are as assigned either by §109.41 of this title (relating to Financial Accountability System Resource Guide) and/or by generally accepted accounting principles.
  (8) State funds--Funds received by the charter holder under TEC, §12.106, and any grant or discretionary funds received through or administered by the TEA, including all federal funds. The rules in this division apply to property acquired, improved, or maintained with federal funds to the extent that such application is consistent with applicable federal law or regulations.
  (9) State funds received on or after September 1, 2001--State funds are received on or after September 1, 2001, if the Texas Comptroller of Public Accounts issues a warrant for such funds on or after that date, or if an electronic transfer of such funds is made on or after that date.
  (10) State funds received before September 1, 2001--State funds are received before September 1, 2001, if the Texas Comptroller of Public Accounts issued a warrant for such funds before that date, or if an electronic transfer of such funds was made before that date.
  (11) Property acquired, improved, or maintained using state funds--Property for which the title, control over the property, use of the property, or benefit from the property is obtained directly or indirectly through expenditure of or control over state funds. This includes property acquired, improved, or maintained through a management company under a contract for management services, and includes the proceeds of loans, credit, or other financing that:
    (A) is secured with state funds, or with property acquired, improved, or maintained using state funds; or
    (B) is extended, in whole or part, based on the charter holder's control over state funds.
  (12) Misuse or misapplication of funds or property--A use of state funds or public property that is contrary to:
    (A) the open-enrollment charter under which a charter holder holds the funds or property;
    (B) an agreement under which an employee or contractor holds the funds or property;
    (C) a law, regulation, or rule that prescribes the manner of acquisition, sale, lease, custody, or disposition of the funds or property, including, but not limited to, violations of Local Government Code, §§171.002-171.007; Local Government Code, Chapter 271, Subchapter B; and TEC, §12.1053 and §12.1054, unless otherwise stated in the charter contract;
    (D) a limited purpose for which the funds or property is delivered or received; or
    (E) the use authorized by the governing body of the charter holder.
  (13) Management services--Services related to the management or operation of a charter school. Management services include any of the following:
    (A) planning, operating, supervising, or evaluating a charter school's educational programs, services, or facilities;
    (B) making recommendations to the governing body of a charter holder or charter school relating to the selection of school personnel;
    (C) managing a charter school's day-to-day operations as its administrative manager;
    (D) preparing a proposed budget or submitting it to the governing body of a charter holder or charter school;
    (E) recommending policies to be adopted by the governing body of a charter holder or charter school, except that legal services provided by an attorney licensed to practice law in this state, and public accountancy services provided by a certified public accountant licensed to practice public accountancy services in this state, are not management services, notwithstanding that such services may include recommending policies to be adopted by the governing body of a charter holder or charter school;
    (F) developing procedures or practices to implement policies adopted by the governing body of a charter holder or charter school, except that legal services by an attorney licensed to practice law in this state, and public accountancy services provided by a certified public accountant licensed to practice public accountancy services in this state, are not management services, notwithstanding that such services may include developing procedures or practices to implement policies adopted by the governing body of a charter holder or charter school;
Cont'd...