bill putting the biggest charter schools under the State Auditor

The text as introduced · 313 words

89R6048 KRM-F

By: Canales
H.B. No. 1693

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 audits 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, 2025.