Bill > SB266

This bill, known as the "Higher Education Accountability Act," establishes a comprehensive oversight framework for administrator agreements at state educational institutions and community colleges. The bill requires all qualifying agreements (such as employment, performance, retention, separation, or settlement contracts) exceeding five years or with total compensation more than ten times the lowest-paid full-time employee's compensation to be reviewed by the State Board of Finance. The Board will evaluate these agreements to prevent financial waste and ensure fiscally responsible terms. Additionally, the bill mandates that any agreements with release of liability or indemnification clauses must be separately reviewed by the Attorney General. The legislation creates a new civil cause of action allowing the Attorney General to sue board members or administrators for breach of fiduciary duty, with potential remedies including enjoining actions, compelling performance, ordering reimbursement, or impounding public funds. The bill also introduces annual reporting requirements for institutions, detailing administrator compensation and agreement specifics, with the State Board of Finance required to submit a comprehensive review report. These provisions aim to increase transparency, accountability, and responsible financial management in higher education administrative agreements, with an effective date of July 1, 2025.

Education

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=266&year=25