The bill establishes a new section that mandates the joint legislative audit and review committee to conduct a comprehensive performance audit focused on fraud within the state's financial aid programs for higher education. The audit aims to assess the prevalence of financial aid fraud, including the identification of fictitious students, trends in fraudulent enrollments, and the financial impact of such fraud on federal, state, and local aid. Additionally, the audit will explore systemic weaknesses that could be exploited for fraudulent enrollments and evaluate the implications for funding calculations related to full-time equivalent students.

The findings and recommendations from the audit are to be reported to the relevant legislative committees by December 1, 2027. The report will include an analysis of fraud prevention gaps, an evaluation of cybersecurity funding related to fraud prevention, and a review of current institutional measures against financial aid fraud. The section of the bill is set to expire on July 1, 2028.