Sec. 12.120.  RESTRICTIONS ON SERVING AS MEMBER OF GOVERNING BODY OF CHARTER HOLDER OR OPEN-ENROLLMENT CHARTER SCHOOL OR AS OFFICER OR EMPLOYEE.  (a)  A person may not serve as a member of the governing body of a charter holder, as a member of the governing body of an open-enrollment charter school, or as an officer or employee of an open-enrollment charter school if the person:
(1)  has been convicted of a felony or a misdemeanor involving moral turpitude;
(2)  has been convicted of an offense listed in Section 37.007(a);
(3)  has been convicted of an offense listed in Article 62.001(5), Code of Criminal Procedure; or
(4)  has a substantial interest in a management company.
(a-1)  Notwithstanding Subsection (a), subject to Section 12.1059, an open-enrollment charter school may employ a person:
(1)  as a teacher or educational aide if:
(A)  a school district could employ the person as a teacher or educational aide; or
(B)  a school district could employ the person as a teacher or educational aide if the person held the appropriate certificate issued under Subchapter B, Chapter 21, and the person has never held a certificate issued under Subchapter B, Chapter 21; or
(2)  in a position other than a position described by Subdivision (1) if a school district could employ the person in that position.
(b)  For purposes of Subsection (a)(4), a person has a substantial interest in a management company if the person:
(1)  has a controlling interest in the company;
(2)  owns more than 10 percent of the voting interest in the company;
(3)  owns more than $25,000 of the fair market value of the company;
(4)  has a direct or indirect participating interest by shares, stock, or otherwise, regardless of whether voting rights are included, in more than 10 percent of the profits, proceeds, or capital gains of the company;
(5)  is a member of the board of directors or other governing body of the company;
(6)  serves as an elected officer of the company;  or
(7)  is an employee of the company.
Added by Acts 1999, 76th Leg., ch. 1335, Sec. 3, eff. June 19, 1999.  Amended by Acts 2001, 77th Leg., ch. 1504, Sec. 17, eff. Sept. 1, 2001.
Amended by: 
Acts 2005, 79th Leg., Ch. 1008 (H.B. 867), Sec. 2.04, eff. September 1, 2005.
Acts 2013, 83rd Leg., R.S., Ch. 639 (H.B. 647), Sec. 1, eff. June 14, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 1140 (S.B. 2), Sec. 32, eff. September 1, 2013.