Bill Text: TX HB2824 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to requiring an open-enrollment charter school to conduct an efficiency audit before applying for designation as a charter district or for the guarantee of certain bonds.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2023-03-14 - Referred to Public Education [HB2824 Detail]
Download: Texas-2023-HB2824-Introduced.html
88R8566 ANG-F | ||
By: Hinojosa | H.B. No. 2824 |
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relating to requiring an open-enrollment charter school to conduct | ||
an efficiency audit before applying for designation as a charter | ||
district or for the guarantee of certain bonds. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 12.135, Education Code, is amended to | ||
read as follows: | ||
Sec. 12.135. DESIGNATION AS CHARTER DISTRICT FOR PURPOSES | ||
OF BOND GUARANTEE. (a) On the application of the charter holder, | ||
the commissioner may grant designation as a charter district to an | ||
open-enrollment charter school that meets financial standards | ||
adopted by the commissioner and that has conducted an efficiency | ||
audit in accordance with Section 12.1351. The financial standards | ||
must require an open-enrollment charter school to have an | ||
investment grade credit rating as specified by Section 45.0541. | ||
(b) Subject to Section 12.1351, a [ |
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apply for bonds issued under Chapter 53 for the open-enrollment | ||
charter school, including refunding and refinanced bonds, to be | ||
guaranteed by the permanent school fund as provided by Chapter 45. | ||
SECTION 2. Subchapter D, Chapter 12, Education Code, is | ||
amended by adding Section 12.1351 to read as follows: | ||
Sec. 12.1351. EFFICIENCY AUDIT. (a) In this section, | ||
"efficiency audit" means an investigation of the operations of an | ||
open-enrollment charter school to examine fiscal management, | ||
efficiency, and utilization of resources. | ||
(b) The governing body of an open-enrollment charter school | ||
must conduct an efficiency audit and hold an open meeting to discuss | ||
the results of the efficiency audit before applying for: | ||
(1) designation as a charter district under Section | ||
12.135(a); or | ||
(2) a bond to be guaranteed under Section 12.135(b), | ||
if the application is submitted one year or more after the school is | ||
designated as a charter district. | ||
(c) An open-enrollment charter school shall pay the costs | ||
associated with an efficiency audit under this section. | ||
(d) The governing body of an open-enrollment charter school | ||
must select an auditor to conduct an efficiency audit under this | ||
section not later than the last day of the fourth month before the | ||
date on which the school submits an application described by | ||
Subsection (b). | ||
(e) The governing body of the open-enrollment charter | ||
school may select for purposes of Subsection (d) the auditor that | ||
conducts the school's annual audit under Section 44.008 and include | ||
the efficiency audit as part of the school's annual audit. | ||
(f) An auditor selected by the governing body of an | ||
open-enrollment charter school shall: | ||
(1) follow the guidelines established by the | ||
Legislative Budget Board under Section 11.184; | ||
(2) maintain independence from the school; and | ||
(3) complete the efficiency audit not later than the | ||
last day of the third month after the date on which the auditor was | ||
selected. | ||
(g) An open-enrollment charter school shall provide all | ||
documents, records, and personnel requested by the auditor as | ||
needed to conduct the audit in an efficient manner. | ||
(h) Not later than the 30th day before the date the | ||
open-enrollment charter school submits an application described by | ||
Subsection (b), the school shall post the results of the efficiency | ||
audit on the school's Internet website. | ||
SECTION 3. This Act takes effect September 1, 2023. |