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Amend HB 1146 by amending SECTION 1 to read as follows:                      
	SECTION 1.  Section 12.1163, Education Code, is amended by 
amending Subsection (a) and adding Subsection (c) to read as 
follows:
	(a)  To the extent consistent with this section [Subsection 
(b)], the commissioner may audit the records of:
(1)  an open-enrollment charter school;                                         
(2)  a charter holder; and                                                      
(3)  a management company.                                                      
	(b)  An audit under Subsection (a) must be limited to matters 
directly related to the management or operation of an 
open-enrollment charter school, including any financial and 
administrative records.
	(c)  Unless the commissioner has specific cause to conduct an 
additional audit, the commissioner may not conduct more than one 
on-site audit under Section 12.1163 during any fiscal year, 
including any financial and administrative records.  For purposes 
of this subsection, an audit of a charter holder or management 
company associated with an open-enrollment charter school is not 
considered an audit of the school.