HB 5592

relating to state auditing of institutions of higher education on
complying on certain uses of funds appropriated by the Legislature.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 51.3525, Education Code, is amended by
amending Subsection (g) and (h) to be read as follows:
(g)  The state auditor shall periodically conduct a
compliance audit of each institution of higher education to
determine whether the institution has spent state moneyfunds
appropriated by the Legislature for the fiscal year in violation of
this section.  The state auditor shall adopt a schedule by which the
state auditor will conduct compliance audits under this subsection.
The schedule must ensure that each institution of higher education
is audited at least once every four years.
(h)  If the state auditor determines pursuant to a compliance
audit conducted under Subsection (g) that an institution of higher
education has spent state moneyfunds appropriated by the
Legislature for the fiscal year in violation of this section, the
(1)  must cure the violation not later than the 180th
day after the date on which the determination is made; and
(2)  if the institution fails to cure the violation
during the period described by Subdivision (1), is ineligible to
receive formula funding increases, institutional enhancements, or
exceptional items during the state fiscal biennium immediately
following the state fiscal biennium in which the determination is
SECTION 3.  This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution.  If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.