AN ACT relating to public postsecondary educational institutions.

Create new section of KRS Chapter 164 to require all postsecondary institutions to contract with an auditor and conduct an annual audit; set deadlines for finalization of the audit and submission of audit report and requirements if deadlines are not met; set rules for the Auditor of Public Accounts and Council on Postsecondary Education to place institution under a fiscal watch; require a fiscal recovery plan for institutions on fiscal watch; sets financial terms for contracts with auditors and reduction in fees for auditor's unreasonable delay; require reference to these requirements in audit contracts between postsecondary institutions and auditors.