AI-assisted research summary: An institution of higher education may not spend appropriated state money until its governing board submits a compliance report. The board must also testify at public legislative hearings, and the state auditor must audit institutions regularly.
Sec. 51B.301. ENFORCEMENT. (a) An institution of higher education may not spend money appropriated to the institution for a state fiscal year until the governing board of the institution submits to the governor, the legislature, the coordinating board, and the council a report certifying the governing board's compliance with this chapter during the preceding state fiscal year. (b) In the interim between each regular session of the legislature, the governing board of each institution of higher education, or the board's designee, shall testify before the standing legislative committees with primary jurisdiction over higher education at a public hearing of the committee regarding the board's compliance with this chapter. (c) The state auditor shall periodically conduct a compliance audit of each institution of higher education to determine whether the institution has spent state money 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. (d) If the state auditor determines pursuant to a compliance audit conducted under Subsection (c) that an institution of higher education has spent state money in violation of this section, the institution: (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 made. Added by Acts 2025, 89th Leg., R.S., Ch. 1071 (H.B. 127), Sec. 2, eff. September 1, 2025.