Tex. Educ. Code § 12.107 · Subchapter D. OPEN-ENROLLMENT CHARTER SCHOOL
STATUS AND USE OF FUNDS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(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);
(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; and
(5) may not:
(A) be pledged or used to secure loans or bonds for any other organization, including a non-charter operation or out-of-state operation conducted by the charter holder or a related party, as defined by commissioner rule adopted under Section 12.1166; or
(B) be used to support an operation or activity not related to the educational activities of the charter holder.
(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.
Notes and commentary — not statutory text
History
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 2019, 86th Leg., R.S., Ch. 631 (S.B. 1454), Sec. 4, eff. June 10, 2019.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/ED/htm/ED.12.htm
- Text hash
- sha256 84b5f8269ce5e05db4a22ec7d1e118a183a6359538daee58ea1d51d9e93ec872
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
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