Tex. Educ. Code Section 12.107
Status and Use of Funds

(a)

Funds received under Section 12.106 (State Funding) 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 (Authorized Expenditures)(c);

(4)

pending their use, must be deposited into a bank, as defined by Section 45.201 (Definitions), 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 (Related Party Transactions); 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.
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: Section 12.107 — Status and Use of Funds, https://statutes.­capitol.­texas.­gov/Docs/ED/htm/ED.­12.­htm#12.­107 (accessed Jun. 5, 2024).

12.001
Purposes of Chapter 12.002
Classes of Charter 12.003
Authority of Board of Trustees to Grant Other Charters 12.0011
Alternative Method of Operation 12.011
Authorization and Status 12.012
Applicability of Laws and Rules to Home-rule School District 12.013
Applicability of Title 12.014
Appointment of Charter Commission 12.015
Charter Commission 12.016
Content 12.017
Determination of Compliance with Voting Rights Act 12.018
Legal Review 12.019
Charter Election 12.020
Charter Amendment 12.021
Adoption of Charter or Charter Amendment 12.022
Minimum Voter Turnout Required 12.023
Certification of Charter or Charter Amendment 12.024
Effect of Recording Charter or Charter Amendment 12.025
Governance 12.026
Change in Governing Body 12.027
Basis for Placement on Probation or Revocation of Charter 12.028
Procedure for Placement on Probation or Revocation 12.029
Status of District in Case of Annexation or Consolidation 12.030
Rescission of Charter 12.051
Definitions 12.052
Authorization 12.053
Cooperative Campus Charter 12.054
Authority Under Charter 12.055
Applicability of Laws and Rules to Campus or Program Granted Charter 12.056
Applicability of Title 12.057
Status 12.058
Charter Policy 12.059
Content 12.060
Form 12.061
Charter Granted 12.062
Revision 12.063
Basis for Placement on Probation or Revocation 12.064
Procedure for Placement on Probation or Revocation 12.065
Admission 12.101
Authorization 12.102
Authority Under Charter 12.103
General Applicability of Laws, Rules, and Ordinances to Open-enrollment Charter School 12.104
Applicability of Title 12.105
Status 12.106
State Funding 12.107
Status and Use of Funds 12.108
Tuition and Fees Restricted 12.109
Transportation 12.110
Application 12.111
Content 12.112
Form 12.113
Charter Granted 12.114
Revision 12.115
Basis for Charter Revocation or Modification of Governance 12.116
Procedure for Revocation, Modification of Governance, or Denial of Renewal 12.117
Admission 12.118
Evaluation of Open-enrollment Charter Schools 12.119
Bylaws 12.120
Restrictions on Serving as Member of Governing Body of Charter Holder or Open-enrollment Charter School or as Officer or Employee 12.121
Responsibility for Open-enrollment Charter School 12.122
Liability of Members of Governing Body of Open-enrollment Charter School 12.123
Training for Members of Governing Body of School and Officers 12.124
Loans from Management Company Prohibited 12.125
Contract for Management Services 12.126
Certain Management Services Contracts Prohibited 12.127
Liability of Management Company 12.128
Property Purchased or Leased with State Funds 12.129
Minimum Qualifications for Principals and Teachers 12.130
Notice of Teacher Qualifications 12.131
Removal of Students to Disciplinary Alternative Education Program 12.132
Use of Municipal Funds for Charter School Land or Facilities 12.133
Wage Increase for Certain Professional Staff 12.135
Designation as Charter District for Purposes of Bond Guarantee 12.136
Posting of Chief Executive Officer Salary 12.137
Certain Charter Holders Authorized to Provide Combined Services for Certain Adult and High School Dropout Recovery Programs 12.141
Reclaimed Funds 12.151
Definitions 12.152
Authorization 12.153
Rules 12.154
Content 12.155
School Name 12.156
Applicability of Certain Provisions 12.251
Definitions 12.252
Applicability of Certain Provisions 12.253
Purpose 12.254
Advisory Committee 12.255
Authorization for Charter 12.256
Eligible Entities 12.257
Application 12.258
Student Eligibility 12.259
Adult Education Program 12.260
Assessment Instrument 12.261
Expansion Amendment 12.262
Accountability 12.263
Adult Education Program Funding 12.264
Gifts, Grants, and Donations 12.265
Rules 12.0271
Failure to Discharge or Refuse to Hire Certain Employees or Applicants 12.0521
Alternative Authorization 12.0522
District Charter Authorization 12.0531
Performance Contract 12.0532
Neighborhood School 12.0631
Failure to Discharge or Refuse to Hire Certain Employees or Applicants 12.1011
Charter Authorization for High-performing Entities 12.1012
Definitions 12.1013
Charter Authorizer Accountability 12.1014
Authorization for Grant of Charters for Schools Primarily Serving Students with Disabilities 12.1051
Applicability of Open Meetings and Public Information Laws 12.1052
Applicability of Laws Relating to Local Government Records 12.1053
Applicability of Laws Relating to Public Purchasing and Contracting 12.1054
Applicability of Laws Relating to Conflict of Interest 12.1055
Applicability of Nepotism Laws 12.1056
Immunity from Liability and Suit 12.1057
Membership in Teacher Retirement System of Texas 12.1058
Applicability of Other Laws 12.1059
Requirements for Employment of Certain Employees 12.1061
Recovery of Certain Funds 12.1071
Effect of Accepting State Funding 12.1101
Notification of Charter Application or Establishment of Campus 12.1141
Renewal of Charter 12.1151
Failure to Discharge or Refuse to Hire Certain Employees or Applicants 12.1161
Effect of Revocation, Denial of Renewal, or Surrender of Charter 12.1162
Additional Sanctions 12.1163
Audit by Commissioner 12.1164
Notice to Teacher Retirement System of Texas 12.1166
Related Party Transactions 12.1167
Appraisal of Certain Property 12.1168
Financial Report of Certain Schools 12.1171
Admission to Open-enrollment Charter Schools Specializing in Performing Arts 12.1173
Common Admission Application Form 12.1174
Enrollment and Waiting List Report 12.1181
Performance Frameworks 12.1202
Requirement for Majority of Members of Governing Body 12.1211
Names of Members of Governing Body Listed on Website 12.1281
Disposition of Property Purchased with State Funds 12.1282
Transfer of Property Purchased with State Funds 12.1283
Sale of Property Purchased with State Funds 12.1284
Closure of Charter School Operations 12.2565
Application Process 12.10125
Open-enrollment Charter School Not in Operation
Green check means up to date. Up to date

Accessed:
Jun. 5, 2024

§ 12.107’s source at texas​.gov