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A BILL TO BE ENTITLED
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AN ACT
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relating to the reporting of allegations of fraud, waste, abuse, or |
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other malfeasance in the use of public resources by public and |
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private institutions of higher education for the purpose of |
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compliance monitoring by the Texas Higher Education Coordinating |
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Board. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 61.035, Education Code, is amended by |
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amending Subsection (h) and adding Subsections (h-1), (h-2), and |
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(h-3) to read as follows: |
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(h) In conducting the compliance monitoring function under |
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this section, the board may partner with internal audit offices at |
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institutions of higher education and private or independent |
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institutions of higher education, as institutional resources |
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allow, to examine the institutions' use of funds allocated by, and |
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data reported to, the board. |
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(h-1) To avoid duplication of effort and assist the board in |
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identifying risk: |
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(1) [,] an internal auditor at an institution shall |
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notify the board of any audits conducted by the auditor involving |
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funds administered by the board or data reported to the board; and |
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(2) the state auditor shall notify the board of the |
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receipt of any allegation of fraud, waste, abuse, or other |
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malfeasance or improper practice relating to the use, expenditure, |
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or management of public funds or other public resources by an |
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institution of higher education or a private or independent |
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institution of higher education and shall provide to the board a |
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copy of the allegation and any final report regarding the |
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allegation. |
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(h-2) The board by rule may prescribe the timing and format |
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of the notifications [notification] required by Subsection (h-1) |
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[this subsection]. |
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(h-3) The board by rule shall require a private or |
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independent institution of higher education to provide to the board |
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the institution's external audit involving funds administered by |
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the board. The private or independent institution of higher |
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education's external audit must comply with the board's rules for |
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auditing those funds. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2019. |