| 2 | 4 | | |
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| 3 | 5 | | |
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| 4 | 6 | | A BILL TO BE ENTITLED |
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| 5 | 7 | | AN ACT |
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| 6 | 8 | | relating to state auditing of institutions of higher education on |
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| 7 | 9 | | complying on certain uses of funds appropriated by the Legislature. |
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| 8 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 11 | | SECTION 1. Section 51.3525, Education Code, is amended by |
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| 10 | 12 | | amending Subsection (g) and (h) to be read as follows: |
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| 11 | 13 | | (g) The state auditor shall periodically conduct a |
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| 12 | 14 | | compliance audit of each institution of higher education to |
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| 13 | 15 | | determine whether the institution has spent state moneyfunds |
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| 14 | 16 | | appropriated by the Legislature for the fiscal year in violation of |
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| 15 | 17 | | this section. The state auditor shall adopt a schedule by which the |
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| 16 | 18 | | state auditor will conduct compliance audits under this subsection. |
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| 17 | 19 | | The schedule must ensure that each institution of higher education |
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| 18 | 20 | | is audited at least once every four years. |
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| 19 | 21 | | (h) If the state auditor determines pursuant to a compliance |
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| 20 | 22 | | audit conducted under Subsection (g) that an institution of higher |
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| 21 | 23 | | education has spent state moneyfunds appropriated by the |
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| 22 | 24 | | Legislature for the fiscal year in violation of this section, the |
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| 23 | 25 | | institution: |
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| 24 | 26 | | (1) must cure the violation not later than the 180th |
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| 25 | 27 | | day after the date on which the determination is made; and |
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| 26 | 28 | | (2) if the institution fails to cure the violation |
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| 27 | 29 | | during the period described by Subdivision (1), is ineligible to |
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| 28 | 30 | | receive formula funding increases, institutional enhancements, or |
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| 29 | 31 | | exceptional items during the state fiscal biennium immediately |
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| 30 | 32 | | following the state fiscal biennium in which the determination is |
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| 31 | 33 | | made. |
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| 32 | 34 | | SECTION 3. This Act takes effect immediately if it receives |
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| 33 | 35 | | a vote of two-thirds of all the members elected to each house, as |
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| 34 | 36 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 35 | 37 | | Act does not receive the vote necessary for immediate effect, this |
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| 36 | 38 | | Act takes effect September 1, 2025. |
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