88R2180 ANG-F
 
  By: Canales H.B. No. 2202
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the financial audit of certain open-enrollment charter
  schools by the state auditor.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 321.001(5), Government Code, is amended
  to read as follows:
               (5)  "Risk assessment" means the process by which the
  State Auditor analyzes risks to the state on the basis of, at a
  minimum, the following:
                     (A)  the identification of problems that can occur
  in operational or program areas of departments, including in 
  institutions of higher education and in open-enrollment charter
  schools that annually receive more than $100 million in state
  revenue, that are subject to audit by the State Auditor;
                     (B)  a determination of the potential adverse
  effects from the problems; and
                     (C)  a ranking of the risks associated with the
  problems.
         SECTION 2.  Section 321.013, Government Code, is amended by
  amending Subsection (a) and adding Subsection (k-1) to read as
  follows:
         (a)  The State Auditor shall conduct audits of all
  departments, including of institutions of higher education and of
  open-enrollment charter schools that annually receive more than
  $100 million in state revenue, as specified in the audit plan. At
  the direction of the committee, the State Auditor shall conduct an
  audit or investigation of any entity receiving funds from the
  state.
         (k-1)  In devising the audit plan under Subsection (c), the
  State Auditor shall consider the performance of audits on
  open-enrollment charter schools that annually receive more than
  $100 million in state revenue. The State Auditor may collaborate
  with the State Board of Education in performing an audit under this
  subsection. An audit described by this subsection may be limited in
  scope to open-enrollment charter schools that the State Auditor
  determines pose the highest financial risk to this state.
         SECTION 3.  This Act takes effect September 1, 2023.