Sec. 12.115.  BASIS FOR CHARTER REVOCATION OR MODIFICATION OF GOVERNANCE.  (a)  Except as provided by Subsection (c), the commissioner shall revoke the charter of an open-enrollment charter school or reconstitute the governing body of the charter holder if the commissioner determines that the charter holder:
(1)  committed a material violation of the charter, including by a failure to:
(A)  satisfy accountability provisions prescribed by the charter; or
(B)  comply with the duty to discharge or refuse to hire certain employees or applicants for employment, as provided by Section 12.1151;
(2)  failed to satisfy generally accepted accounting standards of fiscal management;
(3)  failed to protect the health, safety, or welfare of the students enrolled at the school;
(4)  failed to comply with this subchapter or another applicable law or rule;
(5)  failed to satisfy the performance framework standards adopted under Section 12.1181; or
(6)  is imminently insolvent as determined by the commissioner in accordance with commissioner rule.
(b)  The action the commissioner takes under Subsection (a) shall be based on the best interest of the open-enrollment charter school's students, the severity of the violation, any previous violation the school has committed, and the accreditation status of the school.
(c)  The commissioner shall revoke the charter of an open-enrollment charter school if:
(1)  the charter holder has been assigned an unacceptable performance rating under Subchapter C, Chapter 39, for the three preceding school years;
(2)  the charter holder has been assigned a financial accountability performance rating under Subchapter D, Chapter 39, indicating financial performance lower than satisfactory for the three preceding school years; or
(3)  the charter holder has been assigned any combination of the ratings described by Subdivision (1) or (2) for the three preceding school years.
(d)  In reconstituting the governing body of a charter holder under this section, the commissioner shall appoint members to the governing body.  In appointing members under this subsection the commissioner:
(1)  shall consider:
(A)  local input from community members and parents; and
(B)  appropriate credentials and expertise for membership, including financial expertise, whether the person lives in the geographic area the charter holder serves, and whether the person is an educator; and
(2)  may reappoint current members of the governing body.
(e)  If a governing body of a charter holder subject to reconstitution under this section governs enterprises other than the open-enrollment charter school, the commissioner may require the charter holder to  create a new, single-purpose organization that is exempt from taxation under Section 501(c)(3), Internal Revenue Code of 1986, to govern the open-enrollment charter school and may require the charter holder to surrender the charter to the commissioner for transfer to the organization created under this subsection.  The commissioner shall appoint the members of the governing body of an organization created under this subsection.
(f)  This section does not limit the authority of the attorney general to take any action authorized by law.
(g)  The commissioner shall adopt rules necessary to administer this section.
Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30, 1995.  Amended by Acts 2001, 77th Leg., ch. 1504, Sec. 12, eff. Sept. 1, 2001.
Amended by: 
Acts 2013, 83rd Leg., R.S., Ch. 1140 (S.B. 2), Sec. 25, eff. September 1, 2013.
Acts 2019, 86th Leg., R.S., Ch. 943 (H.B. 3), Sec. 2A.007, eff. September 1, 2019.