| 1 | 1 | | 88R2180 ANG-F |
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| 2 | 2 | | By: Canales H.B. No. 2202 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the financial audit of certain open-enrollment charter |
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| 8 | 8 | | schools by the state auditor. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 321.001(5), Government Code, is amended |
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| 11 | 11 | | to read as follows: |
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| 12 | 12 | | (5) "Risk assessment" means the process by which the |
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| 13 | 13 | | State Auditor analyzes risks to the state on the basis of, at a |
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| 14 | 14 | | minimum, the following: |
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| 15 | 15 | | (A) the identification of problems that can occur |
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| 16 | 16 | | in operational or program areas of departments, including in |
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| 17 | 17 | | institutions of higher education and in open-enrollment charter |
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| 18 | 18 | | schools that annually receive more than $100 million in state |
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| 19 | 19 | | revenue, that are subject to audit by the State Auditor; |
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| 20 | 20 | | (B) a determination of the potential adverse |
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| 21 | 21 | | effects from the problems; and |
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| 22 | 22 | | (C) a ranking of the risks associated with the |
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| 23 | 23 | | problems. |
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| 24 | 24 | | SECTION 2. Section 321.013, Government Code, is amended by |
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| 25 | 25 | | amending Subsection (a) and adding Subsection (k-1) to read as |
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| 26 | 26 | | follows: |
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| 27 | 27 | | (a) The State Auditor shall conduct audits of all |
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| 28 | 28 | | departments, including of institutions of higher education and of |
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| 29 | 29 | | open-enrollment charter schools that annually receive more than |
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| 30 | 30 | | $100 million in state revenue, as specified in the audit plan. At |
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| 31 | 31 | | the direction of the committee, the State Auditor shall conduct an |
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| 32 | 32 | | audit or investigation of any entity receiving funds from the |
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| 33 | 33 | | state. |
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| 34 | 34 | | (k-1) In devising the audit plan under Subsection (c), the |
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| 35 | 35 | | State Auditor shall consider the performance of audits on |
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| 36 | 36 | | open-enrollment charter schools that annually receive more than |
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| 37 | 37 | | $100 million in state revenue. The State Auditor may collaborate |
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| 38 | 38 | | with the State Board of Education in performing an audit under this |
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| 39 | 39 | | subsection. An audit described by this subsection may be limited in |
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| 40 | 40 | | scope to open-enrollment charter schools that the State Auditor |
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| 41 | 41 | | determines pose the highest financial risk to this state. |
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| 42 | 42 | | SECTION 3. This Act takes effect September 1, 2023. |
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