HB 1344

ON APRIL 15, 2025, THE SEN ATE ADOPTED AMENDMENTS #1 AND #2 AND PASSED SENATE BILL 1359, AS AMENDED. AMENDMENT #1 rewrites the bill to, instead, make the following revisions to present law: CONDITIONS FOR REDIRECTING CAPITAL OUTLAY FUNDS  Authorizes, subject to appropriation, an institution of higher education to request to redirect the institution's capital outlay funds for purposes other than those set out in the 2022 appropriations act. An institution must submit a request to redirect capital outlay funds to the commissioner of finance and administration ("commissioner"") . The request to redirect capital outlay funds must include a summary demonstrating that the proposed expenditure is essential to fulfilling the institution's mission and that alternative funding sources are not available. MEMORANDUM OF UNDERSTANDING – REQUIREMENTS FOR FUND REDIRECTION  Requires, upon receipt of a request to redirect capital outlay funds submitted under this amendment, the comptroller of the treasury (""comptroller"") and the commissioner to, in consultation with the institution and higher education commission, enter into a memorandum of understanding with the institution to (i) outline the duties and responsibilities of the parties; (ii) establish detailed and specific requirements that the institution must meet for its capital outlay funds to be redirected, which must be tailored to the specific institution, including periodic benchmarks for the incremental disbursement of capital outlay funds; and (iii) other provisions that the parties deem necessary to effectuate the memorandum of understanding.  Authorizes the comptroller and the commissioner to, after consulting with the institution and higher education commission, amend the memorandum of understanding to ensure the requirements are relevant and aligned with state higher education goals and principles of financial stability. NOTICE TO FINANCE COMMITTEE CHAIRS–FUND DISBURSEMENT  Requires, subject to appropriation, the comptroller and the commissioner to (i) a pprove or deny the redirection of all or a portion of the capital outlay funds; (ii) monitor and review an institution's progress in meeting the requirements and other provisions established in the memorandum of understanding; and (iii) determine the appropriate amount of capital outlay funds to be redirected.  Provides that if the comptroller and the commissioner approve redirection of a portion, but not all, of the capital outlay funds available, then the comptroller and the commissioner, after consulting with the institution and higher education commission, may amend the memorandum of understanding to establish additional requirements that the institution must meet before additional capital outlay funds are approved for redirection. Subsequent approvals and disbursements are contingent on the institution's compliance with requirements established in the memorandum of understanding.  Provides that if a redirection of capital outlay funds is approved, then the commissioner must submit written notice to the chair s of legislative committee s having jurisdiction over finance. The redirection of capital outlay funds must not be disbursed to the institution until the chairs have acknowledged in writing receipt of the written notice . However, a redirection of capital outlay notice must not be acknowledged by the chairs during a time that the general assembly is in regular, annual session until each committee has held a hearing on the proposed disbursement, or the committees have held a joint hearing. It is the legislative intent that the notice be acknowledged by the chairs within seven business days of receipt, or in the case of a public hearing, within seven business days from conclusion of the hearing.  Requires, upon acknowledgement by the chairs, the department of finance and administration to disburse the redirected capital outlay funds to the institution.  Provides that the f ailure of an institution to meet the requirements or other provisions established in the memorandum of understanding may result in a denial of capital outlay funds disbursement. IMPLEMENTATION AND COMPLIANCE  Requires i nstitutions requesting redirection of capital outlay funds to comply with requests for information from the comptroller or the commissioner that are necessary to determine the institution's compliance with the requirements or other provisions established in the memorandum of understanding. JOINT QUARTERLY REPORTS  Requires the comptroller and the commissioner to submit joint quarterly reports to the speaker of the senate, the speaker of the house of representatives, the chair s of legislative committee s having jurisdiction over finance, and the chair s of legislative committee s having jurisdiction over education for each institution that requests redirection of capital outlay funds until all available capital outlay funds have been approved for redirection or the institution no longer seeks redirection of capital outlay funds. The report must include a brief synopsis of each request submitted, the requirements and other provisions established in the memorandum of understanding, and a brief synopsis of the institution's progress in meeting the requirements and other provisions established in the memorandum of understanding. AMENDMENT #2 changes the requirements to consult with the higher education commission to, instead, consult with the higher education commission staff."