78R5219 BDH-D


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 
financial records audit and one 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.