H.B. No. 1146




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 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.
	SECTION 2.  This Act takes effect September 1, 2003.                           




______________________________              ______________________________
 
   President of the Senate                               Speaker of the House      

	I certify that H.B. No. 1146 was passed by the House on April 
24, 2003, by a non-record vote; and that the House concurred in 
Senate amendments to H.B. No. 1146 on May 30, 2003, by a non-record 
vote.

                                                  ______________________________
                                                     Chief Clerk of the House   

	
I certify that H.B. No. 1146 was passed by the Senate, with 
amendments, on May 28, 2003, by the following vote:  Yeas 31, Nays 
0.

                                                  ______________________________
                                                      Secretary of the Senate   



APPROVED: __________________                                                
 
                Date                                                         




 
         __________________                                              
 
              Governor