By:  Dutton                                                       H.B. No. 1146



A BILL TO BE ENTITLED

AN ACT

relating to a limitation on audits of an open-enrollment charter 
school.    
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	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.                                                    
	(c)  Unless the commissioner has specific cause to conduct an 
additional audit, the commissioner may not conduct more than one 
on-site financial records audit and one on-site administrative 
records audit of an open-enrollment charter school during any 
fiscal year.  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.
	SECTION 2.  This Act takes effect September 1, 2003.