Texas 2015 - 84th Regular

Texas House Bill HB3347 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	84R26083 MEW-F
2	2	By: Aycock H.B. No. 3347
3	3	Substitute the following for H.B. No. 3347:
4	4	By: Aycock C.S.H.B. No. 3347
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to revocation of a charter for an open-enrollment charter
10	10	school and procedures for the disposition of property owned by a
11	11	charter school after revocation or surrender of a charter.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 12.116, Education Code, is amended by
14	14	amending Subsections (a), (c), and (d) and adding Subsections (e)
15	15	and (f) to read as follows:
16	16	(a) The commissioner shall adopt an informal review
17	17	procedure to be used for revoking the charter of an open-enrollment
18	18	charter school or for reconstituting the governing body of the
19	19	charter holder as authorized by Section 12.115.
20	20	(c) A decision by the commissioner to revoke a charter is
21	21	subject to review by the State Office of Administrative
22	22	Hearings. Notwithstanding Chapter 2001, Government Code:
23	23	(1) the State Office of Administrative Hearings shall
24	24	conduct a revocation review hearing and issue a final decision not
25	25	later than the 90th day after the date that the notice of hearing is
26	26	filed with the State Office of Administrative Hearings;
27	27	(2) the administrative law judge shall uphold a
28	28	decision by the commissioner to revoke a charter unless the judge
29	29	finds the decision is arbitrary and capricious or clearly
30	30	erroneous; and
31	31	(3) [(2)] a decision of the administrative law judge
32	32	under this subsection is final and may not be appealed.
33	33	(d) If the commissioner issues a decision to revoke
34	34	[revokes] the charter of an open-enrollment charter school, the
35	35	commissioner may:
36	36	(1) manage the school until alternative arrangements
37	37	are made for the school's students; [and]
38	38	(2) assign operation of one or more campuses formerly
39	39	operated by the charter holder who held the revoked charter to a
40	40	different charter holder who consents to the assignment;
41	41	(3) appoint a board of managers under Section 12.1165
42	42	or an agent of the commissioner to close the operations of the
43	43	school and manage the disposition of the state's personal and real
44	44	property in the possession of the charter holder; or
45	45	(4) take any combination of the actions described by
46	46	Subdivisions (1), (2), and (3).
47	47	(e) If the commissioner decides to manage the school under
48	48	Subsection (d)(1), the commissioner may:
49	49	(1) allow the existing governing body of the school to
50	50	manage the school, under the commissioner's direction, until the
51	51	conclusion of the academic school year;
52	52	(2) appoint a board of managers under Section 12.1165;
53	53	or
54	54	(3) appoint an individual to serve as the agent of the
55	55	commissioner.
56	56	(f) The commissioner shall transfer to the revoked charter
57	57	school liquidation account established under Section 12.269 any
58	58	funds received by the charter holder under Section 12.106 that
59	59	remain after the operations of the school are closed under this
60	60	section.
61	61	SECTION 2. Subchapter D, Chapter 12, Education Code, is
62	62	amended by adding Sections 12.1165 and 12.1166 to read as follows:
63	63	Sec. 12.1165. APPOINTMENT OF BOARD OF MANAGERS. (a) If the
64	64	commissioner issues a decision to revoke the charter of an
65	65	open-enrollment charter school, the commissioner may appoint a
66	66	board of managers and a charter superintendent to:
67	67	(1) manage the school under Section 12.116(d)(1); or
68	68	(2) close the operations of the school under Section
69	69	12.116(d)(3).
70	70	(b) The commissioner may designate an individual member of
71	71	the board of managers to submit to the agency any required data,
72	72	reports, or other information necessary to close the operations of
73	73	the school.
74	74	(c) The board of managers may exercise all of the powers and
75	75	duties assigned to a governing body of a charter holder by any
76	76	statute or rule.
77	77	(d) Except as provided by Section 12.1285(e), if the
78	78	governing body of a charter holder is managing a school under
79	79	Section 12.116(e)(1), the governing body's powers are terminated on
80	80	the effective date of the commissioner's appointment of the board
81	81	of managers.
82	82	(e) Notwithstanding any other provision of this code, the
83	83	board of managers may amend the school's budget. The board of
84	84	managers may use cash on hand received by the former charter holder
85	85	under Section 12.106 or any allocation of state funding due to the
86	86	revoked charter holder under Section 12.106 to close the operations
87	87	of the school. Actions taken under this subsection are subject to
88	88	the approval of the commissioner.
89	89	(f) A person who serves on the board of managers or as a
90	90	charter superintendent under this section acts on behalf of the
91	91	commissioner and is entitled to:
92	92	(1) sovereign immunity; and
93	93	(2) representation by the attorney general for any act
94	94	or omission taken while acting in the person's official capacity.
95	95	(g) The board of managers shall continue to operate until
96	96	dissolved by the commissioner. Members of the board of managers and
97	97	a charter superintendent serve at the discretion of the
98	98	commissioner and may be replaced by the commissioner at any time.
99	99	Sec. 12.1166. COMPENSATION OF BOARD OF MANAGERS AND CHARTER
100	100	SUPERINTENDENT. (a) The commissioner may authorize compensation
101	101	for a member of a board of managers or a charter superintendent
102	102	appointed under Section 12.1165.
103	103	(b) The commissioner shall establish the terms of
104	104	compensation provided under Subsection (a).
105	105	(c) The commissioner shall use funds received by or due to
106	106	the former charter holder under Section 12.106 for compensation of
107	107	a charter superintendent or a member of a board of managers.
108	108	(d) If funds described by Subsection (c) are not available
109	109	or the commissioner determines that the circumstances require, the
110	110	commissioner may use:
111	111	(1) funds from the revoked charter school liquidation
112	112	account established under Section 12.269; or
113	113	(2) available agency funds, provided that the use of
114	114	the available funds for that purpose is not prohibited by other law.
115	115	(e) If the commissioner determines that the amount
116	116	appropriated for purposes of the Foundation School Program exceeds
117	117	the amount to which school districts are entitled under Chapters 42
118	118	and 46, the commissioner may authorize the comptroller to transfer
119	119	funds from the Foundation School Program to the agency's
120	120	administrative account for compensation as provided by this
121	121	section.
122	122	SECTION 3. Subchapter D, Chapter 12, Education Code, is
123	123	amended by adding Sections 12.1285 and 12.12851 to read as follows:
124	124	Sec. 12.1285. TRANSFER OF PUBLIC PROPERTY ON REVOCATION OR
125	125	SURRENDER OF CHARTER. (a) Not later than the 90th day after the
126	126	effective date of the revocation or surrender of a charter, the
127	127	former charter holder shall remit all public funds to the state and:
128	128	(1) remit all public personal property to the state,
129	129	retitle all public real property in the name of the state, and
130	130	transfer the title for all public real property to the agency;
131	131	(2) retitle or remit all public real or personal
132	132	property to another charter holder for use in student instruction;
133	133	(3) retitle or remit all public real or personal
134	134	property to a school district for use in student instruction; or
135	135	(4) provide documentation to the commissioner that:
136	136	(A) demonstrates that public real or personal
137	137	property was returned to the holder of a valid lien or security
138	138	interest that was perfected before the revocation of the charter to
139	139	satisfy a creditor under Section 12.128(e); and
140	140	(B) includes a written agreement by the creditor
141	141	to remit to the state all excess proceeds from the sale of the
142	142	public property after satisfaction of the secured debt.
143	143	(b) A charter holder that receives a transfer of public real
144	144	property under Subsection (a)(2) must:
145	145	(1) assume all secured debts and liens on the
146	146	property;
147	147	(2) file an affidavit with the agency stating that the
148	148	property is public property of the state;
149	149	(3) use the property as an instructional facility for
150	150	students and obtain approval to operate in that facility in
151	151	accordance with this subchapter; and
152	152	(4) return the property to the state if:
153	153	(A) the school's charter is revoked;
154	154	(B) the charter holder fails to receive approval
155	155	to operate at the facility in accordance with this subchapter; or
156	156	(C) the charter holder fails to use the facility
157	157	as authorized under this section.
158	158	(c) The commissioner shall dispose of any public real
159	159	property returned to the state under Subsection (b)(4).
160	160	(d) A school district that receives a transfer of public
161	161	real property under Subsection (a)(3) assumes all secured debts and
162	162	liens on the property.
163	163	(e) Notwithstanding the appointment of a board of managers
164	164	and the termination of the governing body's powers under Section
165	165	12.1165(d), the governing body of a charter holder whose charter is
166	166	revoked or surrendered may determine which entity to transfer
167	167	public property to under Subsection (a). If a board of managers is
168	168	managing the school under Section 12.1165, the governing body shall
169	169	work with the board of managers to ensure that any property being
170	170	used for student instruction is not transferred or disposed of
171	171	until after the last day of student instruction at the school that
172	172	occurs before the effective date of the revocation or surrender of
173	173	the charter.
174	174	Sec. 12.12851. DISPOSITION OF PROPERTY ON REVOCATION OR
175	175	SURRENDER OF CHARTER. (a) In supervising the disposition of
176	176	property under Section 12.128(c)(2), the commissioner may:
177	177	(1) file a suit for receivership under Subchapter G;
178	178	or
179	179	(2) seek a court of competent jurisdiction to declare
180	180	the property to be state property and order the property to be
181	181	titled in the name of the state.
182	182	(b) If a former charter holder returns property to the state
183	183	under Section 12.1285(a)(1) or the commissioner obtains a court
184	184	declaration described by Subsection (a)(2):
185	185	(1) the General Land Office shall:
186	186	(A) sell any real property through any method
187	187	available to the General Land Office; and
188	188	(B) transfer any proceeds of the sale of the real
189	189	property to the revoked charter school liquidation account
190	190	established under Section 12.269; and
191	191	(2) the Texas Facilities Commission shall transfer any
192	192	proceeds from the sale of property disposed of under Chapter 2175,
193	193	Government Code, into the revoked charter school liquidation
194	194	account established under Section 12.269.
195	195	(c) The proceeds of the sale of property under Subsection
196	196	(b) are not subject to the requirements of the General
197	197	Appropriations Act or statutory requirements or rules related to
198	198	the general revenue fund.
199	199	SECTION 4. Chapter 12, Education Code, is amended by adding
200	200	Subchapter G to read as follows:
201	201	SUBCHAPTER G. CHARTER SCHOOL RECEIVERSHIP AND LIQUIDATION
202	202	Sec. 12.251. PURPOSE. The purpose of this subchapter is to
203	203	aid the commissioner in carrying out the commissioner's duty under
204	204	Section 12.128 to supervise the disposition of public property
205	205	assets that are in the possession of a charter school that ceases to
206	206	operate. This subchapter shall be liberally construed to permit
207	207	the commissioner, acting as a receiver, to promptly dispose of
208	208	public property to preserve state assets.
209	209	Sec. 12.252. DEFINITIONS. In this subchapter:
210	210	(1) "Former charter school" means an open-enrollment
211	211	charter school that no longer operates as a charter school under
212	212	this chapter and Chapter 39 because the school's charter has been
213	213	revoked or surrendered.
214	214	(2) "Liquidation order" means a final order entered by
215	215	the receivership court approving the receiver's disposition of all
216	216	public property and closing the receivership.
217	217	(3) "Proposed disposition plan" means a plan presented
218	218	by the receiver to the court that accounts for the disposition of
219	219	all assets in the possession of a former charter school.
220	220	(4) "Receiver" means the commissioner, acting in an
221	221	official capacity to take possession, assume control, and dispose
222	222	of public property of a former charter school. The term includes a
223	223	special deputy receiver.
224	224	(5) "Receivership order" means a court order by which
225	225	the court assumes jurisdiction, opens a receivership proceeding,
226	226	and appoints the commissioner as the receiver for the assets of a
227	227	former charter school.
228	228	(6) "Special deputy receiver" means a person appointed
229	229	by or acting under a contract with the commissioner as a receiver on
230	230	the commissioner's behalf.
231	231	Sec. 12.253. RECEIVERSHIP; JURISDICTION AND VENUE. (a) If
232	232	the commissioner revokes or accepts the surrender of the charter of
233	233	a charter school, the commissioner may determine that a
234	234	receivership is warranted to conserve or dispose of public property
235	235	over which the commissioner assumes control or possession under
236	236	this chapter or Chapter 39.
237	237	(b) At the request of the commissioner, the attorney general
238	238	shall bring an action in a Travis County district court to appoint a
239	239	receiver to liquidate the assets of a former charter school.
240	240	(c) A court does not have jurisdiction over any receivership
241	241	proceeding for a charter school commenced on behalf of a person
242	242	other than the commissioner.
243	243	(d) Not later than the 30th day after the date the attorney
244	244	general brings an action to appoint a receiver under this section,
245	245	the court shall enter a receivership order opening the receivership
246	246	proceeding.
247	247	Sec. 12.254. RECEIVERSHIP ORDER. (a) A receivership order
248	248	shall:
249	249	(1) appoint the commissioner and any successor in
250	250	office as the receiver for the former charter school; and
251	251	(2) direct the receiver to take possession of the
252	252	property of the former charter school and administer the property
253	253	subject to this subchapter.
254	254	(b) The receiver may request that the receivership court
255	255	appoint a single judge to supervise the receivership and hear any
256	256	cases or controversies arising out of or related to the
257	257	receivership.
258	258	(c) The rights and liabilities of all persons interested in
259	259	the assets of the former charter school become fixed as of the date
260	260	of entry of the court's receivership order.
261	261	Sec. 12.255. POWERS AND DUTIES OF RECEIVER. (a) The
262	262	receiver may assume or reject any executory contract or unexpired
263	263	lease of the former charter school.
264	264	(b) Notwithstanding any other law, the receiver is
265	265	authorized to liquidate by sale or contract for sale any real
266	266	property owned by a former charter school to satisfy debts of the
267	267	school and return public property and proceeds to the state.
268	268	(c) The receiver may elect to dispose of the former charter
269	269	school's property using provisions for:
270	270	(1) the disposal of surplus and salvage property under
271	271	Chapter 2175, Government Code; or
272	272	(2) the sale of real property under Section
273	273	12.12851(b).
274	274	(d) If the receiver disposes of real property under
275	275	Subsection (c)(2), the receivership court shall assume sole
276	276	jurisdiction of the transfer of title.
277	277	(e) If the receiver or court determines that property placed
278	278	in the receivership is federal or trust property or otherwise not
279	279	state public property, the receiver must dispose of that property
280	280	in accordance with applicable law.
281	281	Sec. 12.256. APPLICABILITY OF OTHER LAWS. (a) Any law
282	282	governing the procurement of goods and services by the state does
283	283	not apply to a contract entered into by the commissioner as a
284	284	receiver. This subchapter does not waive any immunity or create a
285	285	cause of action against the state.
286	286	(b) A receiver appointed under this subchapter may not be
287	287	required to pay any filing, recording, transcript, or
288	288	authentication fee to any public officer in the state.
289	289	Sec. 12.257. SPECIAL DEPUTY RECEIVER; OTHER EMPLOYMENT.
290	290	(a) The receiver may appoint or contract with one or more special
291	291	deputy receivers to act for the receiver under this subchapter and
292	292	may employ or contract with legal counsel, actuaries, accountants,
293	293	appraisers, consultants, clerks, assistants, and other personnel
294	294	necessary to assist in the liquidation of the former charter
295	295	school's assets.
296	296	(b) A special deputy receiver has all powers of the receiver
297	297	granted by this subchapter, unless specifically limited by the
298	298	receiver and except as provided in Sections 12.259(b), 12.262(d)
299	299	and (e), and 12.264(c), and serves at the pleasure of the receiver.
300	300	(c) A special deputy receiver or other person with whom the
301	301	receiver contracts under this section may act on behalf of the
302	302	commissioner only in the commissioner's capacity as receiver.
303	303	(d) The receiver may determine the reasonable compensation
304	304	for any special deputy receiver, employee, or contractor and pay
305	305	compensation in accordance with Section 12.262.
306	306	Sec. 12.258. PERFORMANCE BOND. The court may require a
307	307	special deputy receiver to execute a bond to ensure the proper
308	308	performance of the special deputy receiver's duties under this
309	309	subchapter in an amount to be set by the court.
310	310	Sec. 12.259. ASSETS OF FORMER CHARTER SCHOOL. (a) The
311	311	receiver or a special deputy receiver shall take possession of all
312	312	student and personnel records, books, papers, electronic data,
313	313	personal and real property, and other assets purchased or acquired,
314	314	wholly or partly, with state funds of a former charter school.
315	315	(b) If a record or asset described by Subsection (a) is in
316	316	the possession of a special deputy receiver, the receiver may
317	317	review that asset promptly on request made to the special deputy
318	318	receiver.
319	319	(c) Notwithstanding Section 12.128(a) or (b), if the
320	320	charter holder can show through the charter holder's records that
321	321	any real property was purchased or acquired with nonpublic funds,
322	322	the receiver shall:
323	323	(1) return the real property to the former charter
324	324	holder in accordance with Section 12.255(e) if the real property
325	325	was purchased wholly with nonpublic funds; or
326	326	(2) remit to the former charter holder the net
327	327	proceeds from the sale of the real property in proportion to the
328	328	amount of nonpublic funds used to purchase or acquire the real
329	329	property if the real property was purchased partially with public
330	330	funds.
331	331	(d) The receiver or special deputy receiver is required to
332	332	comply with the Family Educational Rights and Privacy Act (20
333	333	U.S.C. Section 1232g).
334	334	Sec. 12.260. IMMUNITY, INDEMNIFICATION, AND
335	335	REPRESENTATION. (a) The commissioner is entitled to immunity for
336	336	all acts taken as a receiver. A special deputy receiver is entitled
337	337	to immunity to the same extent as the commissioner acting as a
338	338	receiver.
339	339	(b) If any legal action is commenced against the receiver or
340	340	a special deputy receiver, whether against the receiver or special
341	341	deputy receiver personally or in their official capacity, resulting
342	342	from an alleged act, error, or omission of the receiver or special
343	343	deputy receiver arising out of or by reason of their duties or
344	344	employment, the receiver or special deputy receiver is indemnified
345	345	for all expenses, attorney's fees, judgments, settlements,
346	346	decrees, or amounts due and owing or paid in satisfaction of or
347	347	incurred in the defense of the legal action, unless it is determined
348	348	on a final adjudication on the merits that the alleged act, error,
349	349	or omission of the receiver or special deputy receiver giving rise
350	350	to the claim:
351	351	(1) did not arise out of or by reason of the receiver's
352	352	or special deputy receiver's duties or employment; or
353	353	(2) was caused by intentional or wilful and wanton
354	354	misconduct.
355	355	(c) Any indemnification shall first be paid from the assets
356	356	of the former charter school. If no assets of the former charter
357	357	school are available, the state shall indemnify the receiver or
358	358	special deputy receiver.
359	359	(d) The attorney general shall represent the receiver or
360	360	special deputy receiver:
361	361	(1) in all actions relating to a receivership under
362	362	this subchapter; and
363	363	(2) in any suit challenging an action taken by the
364	364	receiver or special deputy receiver in the receiver's or special
365	365	deputy receiver's capacity as a receiver unless the conduct was
366	366	caused by intentional or wilful and wanton misconduct.
367	367	Sec. 12.261. REQUESTED NOTICE. (a) On written request to
368	368	the receiver, a person must be placed on the service list to receive
369	369	notice of matters filed by the receiver. It is the responsibility
370	370	of the person requesting notice to inform the receiver in writing of
371	371	any changes in the person's address or e-mail address or to request
372	372	that the person's name be deleted from the service list. The
373	373	receiver may require that a person on the service list provide
374	374	confirmation to remain on the service list. Any person who fails to
375	375	confirm the person's intent to remain on the service list may be
376	376	purged from the service list. Inclusion on the service list does
377	377	not confer standing in the receivership proceeding to raise,
378	378	appear, or be heard on any issue.
379	379	(b) Notice of a proposed disposition plan to a person on the
380	380	service list must be provided as established by Section 12.265.
381	381	Sec. 12.262. APPROVAL AND PAYMENT OF EXPENSES. (a) The
382	382	receiver shall submit an estimate of expenses to the receivership
383	383	court for approval. The expenses of a receivership under this
384	384	section do not include the debts of a former charter school under
385	385	Sections 12.263(b)(1) and (2).
386	386	(b) The receiver may pay any expenses under contracts,
387	387	leases, employment agreements, or other arrangements entered into
388	388	by the former charter school before receivership from the assets of
389	389	the former charter school. The receiver is not required to pay any
390	390	expenses that the receiver determines are not necessary and may
391	391	reject any contract under Section 12.255(a).
392	392	(c) The receiver may deposit former charter school funds in
393	393	the revoked charter school liquidation account established under
394	394	Section 12.269 and pay former charter school expenses from that
395	395	account.
396	396	(d) If a special deputy receiver has been appointed to pay
397	397	certain expenses and the special deputy receiver has insufficient
398	398	funds to pay those expenses from the assets of the former charter
399	399	school, the special deputy receiver may request that the receiver
400	400	draw funds from the revoked charter school liquidation account
401	401	established under Section 12.269 to pay the expenses.
402	402	(e) If the receiver determines that the expenses under
403	403	Subsection (d) are necessary, the receiver may withdraw the amount
404	404	necessary to pay the expenses of the receivership.
405	405	Sec. 12.263. PRIORITIZATION AND SATISFACTION OF DEBTS. (a)
406	406	The state, commissioner, or receiver may not be held liable for the
407	407	debts or liabilities incurred by a former charter school.
408	408	(b) Unless otherwise prohibited by federal law, the
409	409	receiver shall satisfy debts of a former charter school in
410	410	accordance with a proposed disposition plan after payment of:
411	411	(1) secured debts and liens perfected on public
412	412	property before the school's charter was revoked, as described by
413	413	Section 12.128(e);
414	414	(2) debts to state and federal governmental entities,
415	415	including payments to a conservator, monitor, superintendent, or
416	416	member of a board of managers or management; and
417	417	(3) expenses of the receivership.
418	418	(c) After satisfaction of the debts and expenses listed in
419	419	Subsection (b), any remaining state assets of a former charter
420	420	school shall be used to satisfy debts in the following priority,
421	421	unless otherwise ordered by the receivership court:
422	422	(1) salary owed to non-administrative faculty and
423	423	staff;
424	424	(2) unpaid, unsecured rent on leasehold;
425	425	(3) vendors; and
426	426	(4) any other debts recognized by law.
427	427	Sec. 12.264. PROPOSED DISPOSITION PLAN. (a) The receiver
428	428	shall file with the court a proposed disposition plan that accounts
429	429	for:
430	430	(1) the disposition of all known assets of the former
431	431	charter school;
432	432	(2) the amount of all expenses that the receiver may
433	433	incur; and
434	434	(3) any debts of the former charter school that the
435	435	receiver proposes to satisfy.
436	436	(b) The proposed disposition plan must specifically
437	437	identify any property that is not considered to be public property
438	438	under Section 12.128.
439	439	(c) If the commissioner appoints a special deputy receiver
440	440	to develop the disposition plan, the special deputy receiver must
441	441	present the plan to the commissioner for approval before filing the
442	442	plan with the court.
443	443	Sec. 12.265. NOTICE OF PROPOSED DISPOSITION PLAN. (a)
444	444	Unless the receivership court otherwise directs, the receiver shall
445	445	give notice of the proposed disposition plan as soon as possible:
446	446	(1) by first class mail or electronic communication as
447	447	permitted by the receivership court to:
448	448	(A) any person known or reasonably expected to
449	449	have a claim against the former charter school, at the person's last
450	450	known address as indicated by the records of the former charter
451	451	school;
452	452	(B) each state and federal agency with an
453	453	interest in the proceeding; and
454	454	(C) any person on the service list under Section
455	455	12.261; and
456	456	(2) by publication in a newspaper of general
457	457	circulation in the county in which the principal place of business
458	458	of the former charter school was located, in any county in which the
459	459	former charter holder operated a school during the preceding three
460	460	school years, and in any other location the receiver deems
461	461	appropriate.
462	462	(b) The notice of the proposed disposition plan must contain
463	463	or provide directions for obtaining the following information:
464	464	(1) a statement that the former charter school has
465	465	ceased to operate and that the commissioner has taken possession
466	466	and assumed control of the school's assets under Section 12.128;
467	467	(2) a statement of the date, time, and location of any
468	468	initial status hearing scheduled at the time the notice is sent;
469	469	(3) a description of the process for obtaining notice
470	470	of matters before the receivership court; and
471	471	(4) any other information the receiver or the
472	472	receivership court deems appropriate.
473	473	(c) If notice is given in accordance with this section, the
474	474	distribution of property of the former charter school under this
475	475	subchapter is conclusive with respect to all claimants, regardless
476	476	of whether the claimant received notice.
477	477	(d) Notwithstanding any other provision of this section,
478	478	the receiver has no duty to locate any person if an address is not
479	479	found in the records of the former charter school or if mailings are
480	480	returned to the receiver because of the inability to deliver to the
481	481	address shown in the records of the school. If notice is not given
482	482	to a person as provided by this subsection, notice by publication or
483	483	actual notice received is sufficient.
484	484	(e) Written certification by the receiver or other
485	485	knowledgeable person acting for the receiver that the notice was
486	486	deposited in the United States mail, postage prepaid, or that the
487	487	notice has been electronically transmitted is prima facie evidence
488	488	of mailing and receipt of notice. All claimants shall keep the
489	489	receiver informed of any changes of address.
490	490	Sec. 12.266. HEARING AND APPEAL ON DISPOSITION PLAN. (a)
491	491	Any party objecting to the proposed disposition plan must file an
492	492	objection specifying the grounds for the objection not later than
493	493	the 45th day after the date of the notice of the filing of the
494	494	proposed disposition plan or within another period as the
495	495	receivership court may set. An objection must also be served on the
496	496	receiver and any other person served with the proposed disposition
497	497	plan. An objecting party has the burden of showing why the
498	498	receivership court should not authorize the proposed disposition
499	499	plan or any other action proposed by the receiver.
500	500	(b) If no objection to the proposed disposition plan is
501	501	timely filed, the receivership court shall enter an order approving
502	502	the application without a hearing. The receiver may request that
503	503	the receivership court enter an order or hold a hearing on any
504	504	outstanding motions on an expedited basis.
505	505	(c) If an objection is timely filed, the receivership court
506	506	may hold a hearing. If the receivership court approves the proposed
507	507	disposition plan and, on a motion by the receiver, determines that
508	508	the objection was frivolous or filed for delay or for another
509	509	improper purpose, the receivership court shall order the objecting
510	510	party to pay the receiver's reasonable costs and fees of defending
511	511	the action.
512	512	Sec. 12.267. LIQUIDATION ORDER. (a) When the receiver has
513	513	disposed of all assets according to the proposed disposition plan
514	514	approved by the court, the receiver shall promptly apply to the
515	515	receivership court for entry of a liquidation order.
516	516	(b) On demonstration to the court that the receiver has
517	517	complied with the disposition plan and all assets have been
518	518	disposed of in accordance with the plan, the court shall enter a
519	519	liquidation order discharging the receiver and closing the
520	520	receivership.
521	521	(c) A liquidation order under this subchapter is final and
522	522	may not be appealed.
523	523	Sec. 12.268. DISPOSITION OF REMAINING FUNDS. After a
524	524	liquidation order has been entered, the commissioner shall deposit
525	525	any remaining funds from the former charter school in the revoked
526	526	charter school liquidation account established under Section
527	527	12.269.
528	528	Sec. 12.269. REVOKED CHARTER SCHOOL LIQUIDATION ACCOUNT.
529	529	(a) The commissioner shall remit to the comptroller funds received
530	530	under Sections 12.116, 12.128, 12.1285, and this subchapter for
531	531	deposit in an interest-bearing deposit account outside the treasury
532	532	in the Texas Treasury Safekeeping Trust Company to be known as the
533	533	revoked charter school liquidation account. Money in the account
534	534	may be spent by the commissioner only for the purposes provided by
535	535	this section.
536	536	(b) The revoked charter school liquidation account shall be
537	537	administered by the commissioner to pay the expenses:
538	538	(1) incurred during a receivership of a former charter
539	539	school;
540	540	(2) of managing a former charter school under Section
541	541	12.116; or
542	542	(3) of disposing of property under Section 12.128,
543	543	12.1285, or 12.12851.
544	544	(c) The commissioner shall annually review the revoked
545	545	charter school liquidation account and transfer any funds exceeding
546	546	$2 million to the comptroller for deposit in the charter district
547	547	bond guarantee reserve fund established under Section 45.0571. The
548	548	commissioner may delay a transfer under this subsection if the
549	549	excess does not exceed $100,000.
550	550	Sec. 12.270. RULES. The commissioner may adopt rules
551	551	necessary to implement this subchapter.
552	552	SECTION 5. Subchapter A, Chapter 2175, Government Code, is
553	553	amended by adding Section 2175.005 to read as follows:
554	554	Sec. 2175.005. CHARTER SCHOOLS. For purposes of this
555	555	chapter, a charter school is treated as a political subdivision
556	556	that has the authority to acquire surplus or salvage property.
557	557	SECTION 6. This Act takes effect immediately if it receives
558	558	a vote of two-thirds of all the members elected to each house, as
559	559	provided by Section 39, Article III, Texas Constitution. If this
560	560	Act does not receive the vote necessary for immediate effect, this
561	561	Act takes effect September 1, 2015.