AN ACT
RELATING TO HIGHER EDUCATION;
PROVIDING FOR ADDITIONAL ENDOWED CHAIRS AT MAJOR RESEARCH INSTITUTIONS FOR THE
PURPOSE OF ECONOMIC DEVELOPMENT; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF
THE STATE OF NEW MEXICO:
Section 1. Section 21-1-27.1 NMSA 1978 (being Laws 2002,
Chapter 31, Section 1) is amended to read:
"21-1-27.1. FACULTY ENDOWMENT FUND CREATED.--
A. The "faculty endowment fund" is
created in the state treasury. The fund
shall consist of appropriations, income from investment of the fund, gifts,
grants, donations and bequests. Money in
the fund shall not revert at the end of any fiscal year.
B. The faculty endowment fund shall be
administered by the commission on higher education. Except as provided in Subsection J of this section,
money shall be disbursed only on warrant of the secretary of finance and
administration upon voucher signed by the executive director of the commission
on higher education or his authorized representative.
C. Money shall be disbursed from the faculty
endowment fund only to establish endowments for chairs, professorships and
faculty development programs at four-year public post-secondary educational
institutions as provided in this section.
Except as provided in Subsection J of this section, an institution shall
not receive a disbursement for an endowment until that institution has notified
the commission on higher education that it has received matching funds for the
endowment from other than governmental sources in an amount that is equal to or
greater than the amount authorized by this section to be disbursed for the
endowment.
D. Except as provided in Subsection J of this
section, money in the faculty endowment fund is appropriated to the commission
on higher education to be disbursed for the following endowment purposes in the
following amounts:
(1) for endowed chairs, five hundred thousand
dollars ($500,000) for each endowed chair;
(2) for endowed professorships, two hundred
thousand dollars ($200,000) for each endowed professorship; and
(3) for endowed faculty development programs, to
include lectureships, graduate fellowships and other faculty support programs,
thirty-seven thousand five hundred dollars ($37,500) for each endowed faculty
development program.
E. Except as provided in Subsection J of this
section, until June 30, 2005, the following institutions shall be eligible for
the following disbursements from the fund:
(1) the university of New Mexico for four endowed
chairs;
(2) New Mexico state university for four endowed
chairs;
(3) New Mexico institute of mining and technology
for two endowed chairs;
(4) the university of New Mexico for two endowed
chairs at the university of New Mexico medical center; and
(5) the university of New Mexico, New Mexico
state university, New Mexico highlands university, New Mexico institute of
mining and technology, western New Mexico university and eastern New Mexico
university for endowed professorships and endowed faculty development
programs. The number of endowed
professorships and endowed faculty development programs allocated to each of
the named institutions shall be in the same ratio to the total number of
endowed professorships and endowed faculty development programs allocated to
all of the named institutions as the main campus full-time-equivalent
enrollment of the institution bears to the total main campus
full-time-equivalent enrollment of all of the named institutions. For purposes of this paragraph, the main
campus full-time-equivalent enrollment of each institution shall be based on
enrollment figures for the second semester of the 2001-2002 school year.
F. On or after July 1, 2005, money remaining in
the faculty endowment fund shall be available for additional disbursements by
the commission on higher education to any of the institutions named in this
section, subject to receipt of matching funds.
Disbursements may be made based on the date requests for additional
disbursement are received by the commission.
G. The endowment funds of the institutions shall
not be expended but shall be invested by the institutions in accordance with
the prudent man rule, and in accordance with the provisions of Section 21-1-38
NMSA 1978. The income from the
investments shall be used by the institutions to provide funding for chairs,
professorships and faculty development programs, including paying all or a
portion of the salary of the faculty member or the expenses necessary to
support associated academic activities.
H. Except as provided in Subsection J of this
section, disbursements of the faculty endowment fund by the commission on
higher education shall be allocated as follows:
(1) fifty percent of the disbursements shall be
for endowed chairs;
(2) thirty-five percent of the disbursements
shall be for endowed professorships; and
(3) fifteen percent of the disbursements shall be
for endowed faculty development programs.
I. If the disbursements allocated for endowed
chairs are not sufficient to fund the number of positions specified in
Paragraphs (1) through (4) of Subsection E of this section, the number of
endowed chairs for each of those four institutions shall be proportioned by the
commission on higher education in the same manner as endowed professorships and
endowed faculty development programs are proportioned in Paragraph (5) of
Subsection E of this section, except that each of the four institutions shall
be allocated at least one endowed chair.
J. Up to three million dollars ($3,000,000) of
the faculty endowment fund may be disbursed after July 1, 2003 to the
commission on higher education to endow and disburse the money for one endowed
chair each to the university of New Mexico, New Mexico state university and the
New Mexico institute of mining and technology.
Each endowed chair shall be eligible for one million dollars
($1,000,000) upon notification by the institution that it has received matching
funds for the endowment from other than state sources in an amount equal to or
greater than two-thirds of that amount for establishment of an endowed chair
that is directly related to the economic development of the state."
HB 756
Page 5