By:  Dutton (Senate Sponsor - Janek)                              H.B. No. 1146
	(In the Senate - Received from the House April 25, 2003; 
April 28, 2003, read first time and referred to Committee on 
Education; May 23, 2003, reported favorably, as amended, by the 
following vote:  Yeas 5, Nays 0; May 23, 2003, sent to printer.)


COMMITTEE AMENDMENT NO. 1                                                By:  Janek


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.


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.                           



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