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A BILL TO BE ENTITLED
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AN ACT
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relating to requiring an open-enrollment charter school to conduct |
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an efficiency audit before applying for designation as a charter |
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district or for the guarantee of certain bonds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 12.135, Education Code, is amended to |
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read as follows: |
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Sec. 12.135. DESIGNATION AS CHARTER DISTRICT FOR PURPOSES |
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OF BOND GUARANTEE. (a) On the application of the charter holder, |
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the commissioner may grant designation as a charter district to an |
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open-enrollment charter school that meets financial standards |
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adopted by the commissioner and that has conducted an efficiency |
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audit in accordance with Section 12.1351. The financial standards |
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must require an open-enrollment charter school to have an |
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investment grade credit rating as specified by Section 45.0541. |
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(b) Subject to Section 12.1351, a [A] charter district may |
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apply for bonds issued under Chapter 53 for the open-enrollment |
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charter school, including refunding and refinanced bonds, to be |
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guaranteed by the permanent school fund as provided by Chapter 45. |
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SECTION 2. Subchapter D, Chapter 12, Education Code, is |
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amended by adding Section 12.1351 to read as follows: |
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Sec. 12.1351. EFFICIENCY AUDIT. (a) In this section, |
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"efficiency audit" means an investigation of the operations of an |
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open-enrollment charter school to examine fiscal management, |
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efficiency, and utilization of resources. |
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(b) The governing body of an open-enrollment charter school |
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must conduct an efficiency audit and hold an open meeting to discuss |
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the results of the efficiency audit before applying for: |
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(1) designation as a charter district under Section |
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12.135(a); or |
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(2) a bond to be guaranteed under Section 12.135(b), |
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if the application is submitted one year or more after the school is |
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designated as a charter district. |
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(c) An open-enrollment charter school shall pay the costs |
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associated with an efficiency audit under this section. |
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(d) The governing body of an open-enrollment charter school |
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must select an auditor to conduct an efficiency audit under this |
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section not later than the last day of the fourth month before the |
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date on which the school submits an application described by |
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Subsection (b). |
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(e) The governing body of the open-enrollment charter |
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school may select for purposes of Subsection (d) the auditor that |
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conducts the school's annual audit under Section 44.008 and include |
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the efficiency audit as part of the school's annual audit. |
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(f) An auditor selected by the governing body of an |
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open-enrollment charter school shall: |
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(1) follow the guidelines established by the |
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Legislative Budget Board under Section 11.184; |
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(2) maintain independence from the school; and |
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(3) complete the efficiency audit not later than the |
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last day of the third month after the date on which the auditor was |
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selected. |
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(g) An open-enrollment charter school shall provide all |
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documents, records, and personnel requested by the auditor as |
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needed to conduct the audit in an efficient manner. |
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(h) Not later than the 30th day before the date the |
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open-enrollment charter school submits an application described by |
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Subsection (b), the school shall post the results of the efficiency |
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audit on the school's Internet website. |
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SECTION 3. This Act takes effect September 1, 2023. |