Texas Codes

Tex. Educ. Code § 12.115 (2026)

Basis For Charter Revocation Or Modification Of Governance

✓ current as of May 2026

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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.

(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.

Notes of Decisions

Cited in 7 cases (1 in the last 5 years), 2014–2024 · leading case: Honors Acad., Inc. v. Tex. Educ. Agency, 555 S.W.3d 54 (Tex. 2018).

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Honors Acad., Inc. v. Tex. Educ. Agency, 555 S.W.3d 54 (Tex. 2018). · cites it 9× “For purposes of revocation, the second sentence of Texas Education Code § 12.115(c-1) requires consideration of academic performance ratings for the 2009-2010, 2010-2011, and 2012-2013 school years.”

Texas Educ. Agency & Mike Morath, Comm'r of Educ., in His Off. Capacity v. Am. Youthworks, Inc., D/B/A Am. Youthworks Charter Sch. Honors Academy, Inc., D/B/A Honors Academy & Azleway Inc., D/B/A Azleway Charter Sch., 496 S.W.3d 244 (Tex. App. 2016). · cites it 3× “Tex. Educ.Code § 12.115(c-l). 42 . See generally Tex.”

Voices for Int'l Bus. & Educ., Inc. v. Nat'l Labor Relations Bd., 905 F.3d 770 (5th Cir. 2018). · cites it 3× “38, at *3 (citing TEX. EDUC. CODE § 12.115). The state agency could remove board members for a host of reasons, including violations of the charter; fiscal malfeasance; student health and welfare concerns; violations of applicable laws or rules; failure to satisfy performance…”

in Re Texas Educ. Agency & Michael L. Williams, Comm'r Of Educ. for the State of Texas, 441 S.W.3d 747 (Tex. App. 2014). “The challenged orders arose from a declaratory-judgment suit filed by certain charter schools against the Commissioner seeking to stop the administrative charter-revocation process under Texas Education Code § 12.115(c). Because the trial court issued the challenged orders after…”

the Texas Educ. Agency & Mike Morath, Comm'r of Educ., in His Off. Capacity v. Academy of Careers & Tech., Inc. D/B/A Academy of Careers & Tech. Charter Sch. (Tex. App. 2015). · cites it 18× “35 TEX. EDUC. CODE §12.115 (c-1) ...........”

Alphonso Crutch Life Support Ctr. v. Michael L. Williams, Comm'r of Educ. Holland Timmons, Designee of the Comm'r & the Texas Educ. Agency (Tex. App. 2015). · cites it 2× “See Tex. Educ. Code § 12.115 (listing grounds on which Commissioner may deny renewal of charter, including “committ[ing] a material violation of the charter” and “fail[ing] to satisfy generally accepted accounting standards of fiscal management,” and requiring action by…”

Hopkins v. Wayside Schs. (5th Cir. 2024). “As the Springboards court concluded, these provisions show that Texas has “broad oversight and control” over charter entities, which counsels in favor of immunity.”

— Tex. Educ. Code § 12.115(a) — 3 cases

Honors Acad., Inc. v. Tex. Educ. Agency, 555 S.W.3d 54 (Tex. 2018). “For purposes of revocation, the second sentence of Texas Education Code § 12.115(c-1) requires consideration of academic performance ratings for the 2009-2010, 2010-2011, and 2012-2013 school years.”

the Texas Educ. Agency & Mike Morath, Comm'r of Educ., in His Off. Capacity v. Academy of Careers & Tech., Inc. D/B/A Academy of Careers & Tech. Charter Sch. (Tex. App. 2015). “35 TEX. EDUC. CODE §12.115 (c-1) ...........”

— Tex. Educ. Code § 12.115(c) — 4 cases

Texas Educ. Agency & Mike Morath, Comm'r of Educ., in His Off. Capacity v. Am. Youthworks, Inc., D/B/A Am. Youthworks Charter Sch. Honors Academy, Inc., D/B/A Honors Academy & Azleway Inc., D/B/A Azleway Charter Sch., 496 S.W.3d 244 (Tex. App. 2016). “Tex. Educ.Code § 12.115(c-l). 42 . See generally Tex.”

— Tex. Educ. Code § 12.115(c)(1) — 1 case

— Tex. Educ. Code § 12.115(c)(3) — 1 case

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