(1) Beginning with the 2011-2012 school year, a student in the third grade shall not be promoted to the next grade level unless the student has shown a basic understanding of curriculum and ability to perform the skills required in the subject of reading as demonstrated by the student's grades or standardized test results. However, such student may be promoted if the student participates in an LEA approved research-based intervention prior to the beginning of the next school year. This section shall not apply to students who have IEPs pursuant to 20 U.S.C. § 1400 et seq.
(2) Notwithstanding subsection (a), charter schools may promote or retain students based upon the students’ demonstrated skills on the Tennessee comprehensive assessment program (TCAP) tests or upon their grades.