H.B. No. 118 aims to establish regulations regarding diversity, equity, and inclusion initiatives at public institutions of higher education in Texas. The bill amends Sections 51.3525(c)-(j) of the Education Code, introducing new requirements for institutions. Notably, institutions must not spend state-appropriated funds until their governing boards certify compliance with the new regulations. Additionally, the state auditor is tasked with conducting periodic compliance audits to ensure institutions are not misusing state funds, with a minimum audit frequency of once every four years. If violations are found, institutions must rectify them within 180 days or risk losing funding increases.

The bill also mandates that the Texas Higher Education Coordinating Board conduct a biennial study to assess the impact of these regulations on various student metrics, such as application and graduation rates, disaggregated by race, sex, and ethnicity. This study is required to be reported to the legislature every even-numbered year until its expiration on September 1, 2029. Overall, the legislation seeks to enhance accountability and transparency in the implementation of diversity and inclusion initiatives within Texas higher education institutions.

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