HOUSE BILL 22

52nd legislature - STATE OF NEW MEXICO - second session, 2016

INTRODUCED BY

Jimmie C. Hall

AN ACT

RELATING TO HIGHER EDUCATION; ENACTING THE HIGHER EDUCATION FINANCE ACT AND PROVIDING PERFORMANCE OUTCOME MEASURES FOR FUNDING PUBLIC POST-SECONDARY EDUCATIONAL INSTITUTIONS; PROVIDING FOR A STEERING COMMITTEE AND HIGHER EDUCATION DEPARTMENT RULEMAKING AND REPORTING REQUIREMENTS; REPEALING AND ENACTING SECTIONS OF THE NMSA 1978.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. A new section of Chapter 21 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] SHORT TITLE.--This act may be cited as the "Higher Education Finance Act"."

     SECTION 2. A new section of Chapter 21 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] DEFINITIONS.--As used in the Higher Education Finance Act:

          A. "at-risk" means a student identified by the end of the first semester following enrollment as being at greater risk for not receiving an award;

          B. "award" means a degree or certificate issued by a:

                (1) community college within five semesters of a student's enrollment; and

                (2) four-year institution within ten semesters of a student's enrollment;

          C. "branch community college" means a branch community college created pursuant to the provisions of Chapter 21, Article 14 NMSA 1978;

          D. "community college" means an independent community college established pursuant to the Community College Act or a technical and vocational institute established pursuant to the Technical and Vocational Institute Act and excludes a branch community college;

          E. "department" means the higher education department;

          F. "four-year institution" means eastern New Mexico university, western New Mexico university, New Mexico highlands university or northern New Mexico college; and

          G. "research institution" means the university of New Mexico, branch community colleges created by the university of New Mexico, New Mexico state university, branch community colleges created by New Mexico state university or New Mexico institute of mining and technology."

     SECTION 3. A new section of Chapter 21 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] HIGHER EDUCATION STEERING COMMITTEE.--

          A. The "higher education steering committee" is created. The committee shall be composed of:

                (1) the secretary of higher education or the secretary's designee, who shall serve as the chair;

                (2) the secretary of finance and administration or the secretary's designee;

                (3) the secretary of workforce solutions or the secretary's designee;

                (4) one representative of a community college;

                (5) one representative of a four-year institution;

                (6) one representative of a research institution; and

                (7) one representative of the legislative finance committee.

          B. The committee shall meet at the call of the chair but no less than annually.

          C. Committee members shall receive no per diem, mileage, reimbursement of expenses or other compensation, perquisite or allowance for committee service." 

     SECTION 4. A new section of Chapter 21 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] DEPARTMENT RULEMAKING--FUNDING CRITERIA.--By July 1, 2016, the department shall promulgate rules for implementation of the provisions of the Higher Education Finance Act and post the rules on the department's website."

     SECTION 5. A new section of Chapter 21 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] INSTRUCTION AND GENERAL SUPPORT--FUNDING FOR PERFORMANCE ON OUTCOME MEASURES.--At least ten percent of the annual appropriation for instruction and general support from the general fund for a research institution, four-year institution or community college shall be based on a calculation of the average of the prior three years' performance on outcome measures for:

          A. a research institution based on:

                (1) twenty-three percent for research institution outcome measures set forth in department rule;

                (2) twenty percent for all awards;

                (3) fifteen percent for completed student credit hours;

                (4) fifteen percent for achievement of institutional mission as determined by the department in consultation with the higher education steering committee;

                (5) thirteen and one-half percent for awards in science, technology, engineering, math, health or major workforce needs fields identified by the department; and

                (6) thirteen and one-half percent for awards granted to at-risk students;

          B. a four-year institution based on:

                (1) twenty-three percent for four-year institution outcome measures set forth in department rule;

                (2) twenty percent for all awards;

                (3) fifteen percent for completed student credit hours;

                (4) fifteen percent for achievement of institutional mission as determined by the department in consultation with the higher education steering committee;

                (5) thirteen and one-half percent for awards in science, technology, engineering, math, health or major workforce needs fields identified by the department; and

                (6) thirteen and one-half percent for awards granted to at-risk students; and

          C. a community college based on:

                (1) twenty-three percent for community college outcome measures set forth in department rule;

                (2) twenty percent for all awards;

                (3) fifteen percent for completed student credit hours;

                (4) fifteen percent for achievement of institutional mission as determined by the department in consultation with the higher education steering committee;

                (5) thirteen and one-half percent for awards in science, technology, engineering, math, health or major workforce needs fields identified by the department; and

                (6) thirteen and one-half percent for awards granted to at-risk students."

     SECTION 6. A new section of Chapter 21 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] RECOMMENDATION--REPORTING.--

          A. By July 1 of each year, each public post-secondary educational institution shall provide data and information required by department rule or requested by the department for the development of funding recommendations pursuant to the provisions of the Higher Education Finance Act.

          B. By November 1 of each year, the department shall report to the legislative finance committee and the department of finance and administration on the higher education department's:

                (1) implementation of the Higher Education Finance Act;

                (2) assessment of the performance on outcome measures and calculation of the average of the prior three years' performance on outcome measures for each public post-secondary educational institution;

                (3) recommendations developed with input from the higher education steering committee for annual appropriation amounts for the following fiscal year; and

                (4) recommendations, if any, developed with input from the higher education steering committee for changes to the outcome measures or rules for the implementation of the Higher Education Finance Act."

     SECTION 7. REPEAL.--Sections 21-2-5.1 and 21-14-9 NMSA 1978 (being Laws 1988, Chapter 164, Section 1 and Laws 1973, Chapter 371, Section 1, as amended) are repealed.

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