Institutions of higher learning; require adoption of new performance-based funding model.

S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~ G1/2
26/SS26/R198PS
PAGE 1

To: Universities and
Colleges
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Boyd

SENATE BILL NO. 2523
(As Passed the Senate)

AN ACT TO AMEND SECTION 37-101-15, MISSISSIPPI CODE OF 1972, 1
TO ESTABLISH PARAMETERS FOR A NEW, PERFORMANCE-BASED FUNDING MODEL 2
FOR STATE INSTITUTIONS OF HIGHER LEARNING; TO REQUIRE THAT SUCH 3
FUNDING MODEL BE USED TO DISBURSE 75% OF GENERAL FUNDS 4
APPROPRIATED FOR SUCH PURPOSE AND BE IMPLEMENTED BY JULY 1, 2029; 5
TO PROVIDE FOR DISTRIBUTION OF REMAINING FUNDS; TO PROVIDE A 10% 6
PERFORMANCE-BASED HOLDOUT; TO REQUIRE THE FUNDING MODEL TO INCLUDE 7
A BASE APPROPRIATION AND A PERFORMANCE-BASED ALLOCATION; TO 8
PROVIDE MEASURABLE OUTCOMES WHICH SHALL BE CALCULATED USING 9
STANDARDIZED DEFINITIONS ADOPTED BY RULE; TO REQUIRE THE BOARD OF 10
TRUSTEES OF STATE INSTITUTIONS OF HIGHER LEARNING TO ESTABLISH 11
PERFORMANCE STANDARDS, SCORING THRESHOLDS AND VALUES FOR EACH 12
METRIC IN A PUBLICLY NOTICED MEETING ON OR BEFORE JUNE 20, 2026; 13
TO PROVIDE SPECIFIC REQUIREMENTS FOR SUCH STANDARDS, THRESHOLDS 14
AND VALUES; TO PROVIDE FOR DEVELOPING, CALCULATING OR 15
ADMINISTERING THE FUNDING MODEL; TO REQUIRE THE BOARD TO 16
CONTINUOUSLY MONITOR INSTITUTIONAL PERFORMANCE UNDER THE FUNDING 17
MODEL; TO REQUIRE THE BOARD TO IDENTIFY INSTITUTIONS AT RISK OF 18
FAILING TO MEET SPECIFIC STANDARDS; TO AUTHORIZE THE BOARD TO TAKE 19
CERTAIN ACTIONS UPON A DETERMINATION THAT AN INSTITUTION IS 20
AT-RISK; TO REQUIRE THE BOARD TO SUBMIT AN ANNUAL REPORT TO THE 21
LEGISLATURE AND PUBLISH SUCH REPORT ON ITS PUBLIC WEBSITE; TO 22
REQUIRE CERTAIN INFORMATION TO BE INCLUDED IN THE REPORT; TO 23
REQUIRE THE BOARD TO PROMULGATE RULES NECESSARY TO IMPLEMENT THIS 24
ACT; TO REQUIRE THE BOARD TO ADOPT AND PUBLISH THE FUNDING MODEL, 25
INCLUDING ALL METRIC DEFINITIONS, BENCHMARKS AND WEIGHTS, NO LATER 26
THAN JUNE 30, 2026; TO PROVIDE FOR APPLICATION OF THE FUNDING 27
MODEL FOR THE INITIAL THREE FISCAL YEARS FOLLOWING ADOPTION AND 28
PUBLICATION; TO REQUIRE FULL IMPLEMENTATION OF THE FUNDING MODEL 29
BY JULY 1, 2029; TO PROHIBIT THE BOARD FROM PERMITTING A PERSON 30
SUBJECT TO THE REGISTRATION REQUIREMENTS UNDER SECTIONS 45-33-21 31
THROUGH 45-33-63 TO RESIDE IN A DORMITORY OR OTHER STUDENT LIVING 32
ACCOMMODATION LOCATED ON THE CAMPUS OF OR MANAGED BY A STATE 33
INSTITUTION OF HIGHER LEARNING; TO BRING FORWARD SECTIONS 34
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 2

37-101-1, 37-101-2, 37-101-3, 37-101-4, 37-101-5, 37-101-7, 35
37-101-9, 37-101-11, 37-101-13, 37-101-16, 37-101-19, 37-101-21, 36
37-101-23, 37-101-25, 37-101-29 AND 37-101-30, MISSISSIPPI CODE OF 37
1972, WHICH GOVERN THE INSTITUTIONS OF HIGHER LEARNING, FOR 38
PURPOSE OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES. 39
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 40
SECTION 1. Section 37-101-15, Mississippi Code of 1972, is 41
amended as follows: 42
37-101-15. (a) The Board of Trustees of State Institutions 43
of Higher Learning shall succeed to and continue to exercise 44
control of all records, books, papers, equipment, and supplies, 45
and all lands, buildings, and other real and personal property 46
belonging to or assigned to the use and benefit of the board of 47
trustees formerly supervising and controlling the institutions of 48
higher learning named in Section 37-101-1. The board shall have 49
and exercise control of the use, distribution and disbursement of 50
all funds, appropriations and taxes, now and hereafter in 51
possession, levied and collected, received, or appropriated for 52
the use, benefit, support, and maintenance or capital outlay 53
expenditures of the institutions of higher learning, including the 54
authorization of employees to sign vouchers for the disbursement 55
of funds for the various institutions, except where otherwise 56
specifically provided by law. 57
(b) The board shall have general supervision of the affairs 58
of all the institutions of higher learning, including the 59
departments and the schools thereof. The board shall have the 60
power in its discretion to determine who shall be privileged to 61
enter, to remain in, or to graduate therefrom. The board shall 62
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 3

have general supervision of the conduct of libraries and 63
laboratories, the care of dormitories, buildings, and grounds; the 64
business methods and arrangement of accounts and records; the 65
organization of the administrative plan of each institution; and 66
all other matters incident to the proper functioning of the 67
institutions. The board shall have the authority to establish 68
minimum standards of achievement as a prerequisite for entrance 69
into any of the institutions under its jurisdiction, which 70
standards need not be uniform between the various institutions and 71
which may be based upon such criteria as the board may establish. 72
(c) The board shall exercise all the powers and prerogatives 73
conferred upon it under the laws establishing and providing for 74
the operation of the several institutions herein specified. The 75
board shall adopt such bylaws and regulations from time to time as 76
it deems expedient for the proper supervision and control of the 77
several institutions of higher learning, insofar as such bylaws 78
and regulations are not repugnant to the Constitution and laws, 79
and not inconsistent with the object for which these institutions 80
were established. The board shall have power and authority to 81
prescribe rules and regulations for policing the campuses and all 82
buildings of the respective institutions, to authorize the arrest 83
of all persons violating on any campus any criminal law of the 84
state, and to have such law violators turned over to the civil 85
authorities. 86
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 4

(d) For all institutions specified herein, the board shall 87
provide a uniform system of recording and of accounting approved 88
by the State Department of Audit. The board shall annually 89
prepare, or cause to be prepared, a budget for each institution of 90
higher learning for the succeeding year which must be prepared and 91
in readiness for at least thirty (30) days before the convening of 92
the regular session of the Legislature. All relationships and 93
negotiations between the State Legislature and its various 94
committees and the institutions named herein shall be carried on 95
through the board of trustees. No official, employee or agent 96
representing any of the separate institutions shall appear before 97
the Legislature or any committee thereof except upon the written 98
order of the board or upon the request of the Legislature or a 99
committee thereof. 100
(e) For all institutions specified herein, the board shall 101
prepare an annual report to the Legislature setting forth the 102
disbursements of all monies appropriated to the respective 103
institutions. Each report to the Legislature shall show how the 104
money appropriated to the several institutions has been expended, 105
beginning and ending with the fiscal years of the institutions, 106
showing the name of each teacher, officer, and employee, and the 107
salary paid each, and an itemized statement of each and every item 108
of receipts and expenditures. Each report must be balanced, and 109
must begin with the former balance. If any property belonging to 110
the state or the institution is used for profit, the reports shall 111
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 5

show the expense incurred in managing the property and the amount 112
received therefrom. The reports shall also show a summary of the 113
gross receipts and gross disbursements for each year and shall 114
show the money on hand at the beginning of the fiscal period of 115
the institution next preceding each session of the Legislature and 116
the necessary amount of expense to be incurred from said date to 117
January 1 following. The board shall keep the annual expenditures 118
of each institution herein mentioned within the income derived 119
from legislative appropriations and other sources, but in case of 120
emergency arising from acts of providence, epidemics, fire or 121
storm with the written approval of the Governor and by written 122
consent of a majority of the senators and of the representatives 123
it may exceed the income. The board shall require a surety bond 124
in a surety company authorized to do business in this state of 125
every employee who is the custodian of funds belonging to one or 126
more of the institutions mentioned herein, which bond shall be in 127
a sum to be fixed by the board in an amount that will properly 128
safeguard the said funds, the premium for which shall be paid out 129
of the funds appropriated for said institutions. 130
(f) The board shall have the power and authority to elect 131
the heads of the various institutions of higher learning and to 132
contract with all deans, professors, and other members of the 133
teaching staff, and all administrative employees of said 134
institutions for a term not exceeding four (4) years. The board 135
shall have the power and authority to terminate any such contract 136
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 6

at any time for malfeasance, inefficiency, or contumacious 137
conduct, but never for political reasons. It shall be the policy 138
of the board to permit the executive head of each institution to 139
nominate for election by the board all subordinate employees of 140
the institution over which he presides. It shall be the policy of 141
the board to elect all officials for a definite tenure of service 142
and to reelect during the period of satisfactory service. The 143
board shall have the power to make any adjustments it thinks 144
necessary between the various departments and schools of any 145
institution or between the different institutions. 146
(g) The board shall keep complete minutes and records of all 147
proceedings which shall be open for inspection by any citizen of 148
the state. 149
(h) The board shall have the power to enter into an energy 150
performance contract, energy services contract, on a 151
shared-savings, lease or lease-purchase basis, for energy 152
efficiency services and/or equipment as prescribed in Section 153
31-7-14. 154
(i) The Board of Trustees of State Institutions of Higher 155
Learning, for and on behalf of Jackson State University, is hereby 156
authorized to convey by donation or otherwise easements across 157
portions of certain real estate located in the City of Jackson, 158
Hinds County, Mississippi, for right-of-way required for the Metro 159
Parkway Project. 160
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 7

(j) In connection with any international contract between 161
the board or one (1) of the state's institutions of higher 162
learning and any party outside of the United States, the board or 163
institution that is the party to the international contract is 164
hereby authorized and empowered to include in the contract a 165
provision for the resolution by arbitration of any controversy 166
between the parties to the contract relating to such contract or 167
the failure or refusal to perform any part of the contract. Such 168
provision shall be valid, enforceable and irrevocable without 169
regard to the justiciable character of the controversy. Provided, 170
however, that in the event either party to such contract initiates 171
litigation against the other with respect to the contract, the 172
arbitration provision shall be deemed waived unless asserted as a 173
defense on or before the responding party is required to answer 174
such litigation. 175
(k) The Board of Trustees of State Institutions of Higher 176
Learning ("board"), on behalf of any institution under its 177
jurisdiction, shall purchase and maintain business property 178
insurance and business personal property insurance on all 179
university-owned buildings and/or contents as required by federal 180
law and regulations of the Federal Emergency Management Agency 181
(FEMA) as is necessary for receiving public assistance or 182
reimbursement for repair, reconstruction, replacement or other 183
damage to those buildings and/or contents caused by the Hurricane 184
Katrina Disaster of 2005 or subsequent disasters. The board is 185
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 8

authorized to expend funds from any available source for the 186
purpose of obtaining and maintaining that property insurance. The 187
board is authorized to enter into agreements with the Department 188
of Finance and Administration, local school districts, 189
community/junior college districts, community hospitals and/or 190
other state agencies to pool their liabilities to participate in a 191
group business property and/or business personal property 192
insurance program, subject to uniform rules and regulations as may 193
be adopted by the Department of Finance and Administration. 194
(l) The Board of Trustees of State Institutions of Higher 195
Learning, or its designee, may approve the payment or 196
reimbursement of reasonable travel expenses incurred by candidates 197
for open positions at the board's executive office or at any of 198
the state institutions of higher learning, when the job candidate 199
has incurred expenses in traveling to a job interview at the 200
request of the board, the Commissioner of Higher Education or a 201
state institution of higher learning administrator. 202
(m) (i) The Board of Trustees of State Institutions of 203
Higher Learning is authorized to administer and approve contracts 204
for the construction and maintenance of buildings and other 205
facilities of the state institutions of higher learning, including 206
related contracts for architectural and engineering services, 207
which are paid for with self-generated funds. 208
(ii) Additionally, the board is authorized to oversee, 209
administer and approve contracts for the construction and 210
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 9

maintenance of buildings and other facilities of the state 211
institutions of higher learning, including related contracts for 212
architectural and engineering services, which are funded in whole 213
or in part by general obligation bonds of the State of Mississippi 214
at institutions designated annually by the board as being capable 215
to procure and administer all such contracts. Prior to the 216
disbursement of funds, an agreement for each project between the 217
institution and the Department of Finance and Administration shall 218
be executed. The approval and execution of the agreement shall 219
not be withheld by either party unless the withholding party 220
provides a written, detailed explanation of the basis for 221
withholding to the other party. The agreement shall stipulate the 222
responsibilities of each party, applicable procurement 223
regulations, documentation and reporting requirements, conditions 224
prior to, and schedule of, disbursement of general obligation bond 225
funds to the institution and provisions concerning handling any 226
remaining general obligation bonds at the completion of the 227
project. Such agreement shall not include provisions that 228
constitute additional qualifications or criteria that act to 229
invalidate the designation of an institution as capable of 230
procuring and administering such project. Inclusion of any such 231
provisions may be appealed to the Public Procurement Review Board. 232
(n) The Board of Trustees of State Institutions of Higher 233
Learning ("board") shall require all on-campus faculty and staff 234
employed by, and all students attending, any of the state 235
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 10

institutions of higher learning identified in Section 37-101-1 to 236
be issued an identification badge in physical or electronic 237
format. Any identification card issued or renewed pursuant to 238
this section, whether physical or in an electronic format, shall 239
include the words "Crisis Lifeline - Dial or Text 988, or chat 240
988lifeline.org" or like language for formatting purposes. 241
(o) (i) It is the intent of the Legislature that a 242
significant portion of general operating funds for state 243
institutions of higher learning be distributed through a uniform, 244
data-driven funding model that rewards demonstrated outcomes, 245
encourages continuous improvement and ensures responsible 246
stewardship of public funds. 247
(ii) 1. Beginning July 1, 2029, not less than 248
seventy-five percent (75%) of all state general funds appropriated 249
for the general operating expenses of state institutions of higher 250
learning shall be distributed through a performance funding model 251
adopted by the board pursuant to this subsection (o). 252
2. No more than twenty-five percent (25%) of 253
general appropriations to the board may be distributed according 254
to a method other than the developed funding formula. 255
3. Funds appropriated by the Legislature as 256
separate line-item allocations, special project appropriations, 257
capital outlay funds, debt service or other specifically 258
designated purposes shall not be subject to the limitations of 259
this subsection (o), shall not be included in the calculation of 260
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 11

the seventy-five percent (75%) requirement and shall not be 261
reduced, offset, withheld or otherwise affected based upon an 262
institution's performance under this model. 263
(iii) Of the seventy-five percent (75%) of funds 264
distributed through the funding model, not more than ten percent 265
(10%) of total general operating funds shall be subject to a 266
performance-based holdout, which shall be distributed, restored or 267
withheld based on institutional performance in accordance with 268
this subsection (o). 269
(iv) The funding model adopted by the board shall, at a 270
minimum, include the following elements: 271
1. A base appropriation to ensure institutional 272
stability; and 273
2. A performance-based allocation tied to 274
measurable outcomes. Performance measures shall not rely solely 275
on enrollment counts or attempted credit hours. Metric weights 276
may vary by institutional mission or classification; however, no 277
institution shall be exempt from evaluation across all required 278
metric categories as described in paragraph (v) of this subsection 279
(o). 280
(v) Such measurable outcomes shall include, at a 281
minimum, the following nationally recognized performance measures 282
and definitions, which shall be calculated using standardized 283
definitions adopted by rule: 284
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 12

1. Student attainment and degree completion, 285
including: 286
a. Completion of a baccalaureate degree 287
within four (4) academic years by first-time, full-time 288
degree-seeking students; 289
b. Completion of a baccalaureate degree 290
within six (6) academic years by first-time, full-time 291
degree-seeking students; 292
c. Community college transfer outcomes, which 293
shall include both: 294
A. Transfer success, measured by 295
students who transfer from a Mississippi community or junior 296
college into a public university and who subsequently complete a 297
minimum of thirty (30) university-level credit hours or persist 298
into a second academic year at the receiving institution; 299
B. Transfer completion, measured by the 300
completion of a baccalaureate degree by such transfer students 301
within a time frame established by the board, not to exceed six 302
(6) academic years from the student's initial postsecondary 303
enrollment. No institution shall receive performance credit 304
solely for the enrollment of transfer students absent demonstrated 305
persistence or completion outcomes; and 306
d. Completion of a baccalaureate degree 307
within six (6) years by students receiving a Pell Grant or a HELP 308
Grant; 309
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 13

2. Student progression and persistence toward 310
completion; 311
3. Postsecondary employment or continuing 312
education outcomes; 313
4. Persistence and completion of low-income and 314
underrepresented students; 315
5. Efficiency and time-to-degree; and 316
6. Degree or credential production in fields of 317
statewide workforce need. 318
(vi) All calculations done according to paragraph (v) 319
shall use a rolling three-year average in order to reduce 320
year-to-year volatility and reward sustained improvement. 321
(vii) 1. On or before June 20, 2026, the board shall 322
establish performance standards, scoring thresholds and values for 323
each metric in a publicly noticed meeting. Such standards, 324
thresholds and values: 325
a. Shall be adopted before the measurement 326
period begins; and 327
b. Shall not be modified for any specific 328
period after institutional performance data has been received for 329
that period. Standards, thresholds and values shall only be 330
modified in advance of the subsequent collection period. 331
2. An institution shall meet the minimum 332
performance standards established by the board in order to restore 333
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 14

all or a portion of its ten percent (10%) performance-based 334
holdout. 335
(viii) 1. In developing, calculating or administering 336
the funding model: 337
a. No revenues, expenditures or financial 338
transfers related to intercollegiate athletics shall be included, 339
imputed, netted or otherwise considered; and 340
b. No funds held by or distributed through an 341
institutional foundation, alumni association, booster organization 342
or affiliated nonprofit entity shall be included, imputed, netted 343
or otherwise considered. 344
2. The funding model shall rely exclusively on 345
academic and educational revenues and expenditures derived from 346
state appropriations, tuition and fees, and other institutionally 347
controlled educational funds, as defined by rule. 348
(ix) 1. The board shall continuously monitor 349
institutional performance under the funding model, including trend 350
data derived from rolling multiyear averages. 351
2. Annually, the board shall identify any 352
institution that is reasonably projected to fail to meet one or 353
more minimum performance standards in the upcoming fiscal year. 354
Any institution that is reasonably projected to fail to meet one 355
or more such standards shall be considered at-risk. 356
3. Upon identification, the board shall provide 357
written notice to the institution specifying the at-risk 358
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 15

performance standards and shall offer technical assistance and 359
data analysis to support corrective action. 360
4. If an institution remains at-risk in any 361
metric, the board shall require submission of a targeted 362
improvement plan. Such improvement plan shall identify deficient 363
performance categories, specify corrective strategies and 364
timelines and include measurable targets for improvement. 365
5. An institution shall only be subject to 366
withholding of funds under the performance-based holdout if the 367
board has complied with the requirements of this subsection, 368
except in cases of material data misreporting or noncompliance 369
with board rules. 370
(x) The board shall submit an annual report to the 371
Legislature. Within five (5) business days of submission to the 372
Legislature, such report shall be published on the board's public 373
website. The report shall include: 374
1. A description of the funding model and 375
methodology; 376
2. Institution-level performance results, 377
including four-year graduation rates, six-year graduation rates, 378
six-year Pell Grant graduation rates, HELP Grant graduation rates, 379
and community college transfer completion outcomes; 380
3. Three-year performance trends used in 381
calculating rolling averages; 382
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 16

4. Identification of institutions meeting 383
thresholds or identified as at-risk; 384
5. Board actions taken under paragraph (ix) of 385
this subsection (o); 386
6. Distribution, restoration or withholding of 387
performance-based funds; 388
7. Access impacts; and 389
8. Board certification of compliance with this 390
subsection (o). 391
(xi) The board shall promulgate rules necessary to 392
implement this subsection, including standardized metric 393
definitions, data sources, validation procedures and appeals 394
processes, provided that such rules remain within the parameters 395
established herein. 396
(xii) The board shall adopt and publish the funding 397
model, including all metric definitions, benchmarks and weights, 398
not later than June 30, 2026. For the initial three (3) fiscal 399
years following passage of this act, the funding model shall apply 400
only to new state general funds appropriated for the general 401
operating expenses of state institutions of higher learning and 402
shall not be applied to reallocate existing state funds. 403
(xiii) Beginning July 1, 2029, the funding model shall 404
be fully implemented, and all state general funds appropriated for 405
general operating expenses shall be distributed in accordance with 406
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 17

the model using the three-year rolling averages required in this 407
subsection (o). 408
(p) The board shall not permit a person subject to the 409
registration requirements under Sections 45-33-21 through 45-33-63 410
to reside in a dormitory or other student living accommodation 411
located on the campus of or managed by a state institution of 412
higher learning. 413
SECTION 2. Section 37-101-1, Mississippi Code of 1972, is 414
brought forward as follows: 415
37-101-1. The following state institutions of higher 416
learning shall be under the management and control of a board of 417
trustees to be known as the Board of Trustees of State 418
Institutions of Higher Learning, namely: 419
(a) The University of Mississippi; 420
(b) Mississippi State University of Agriculture and 421
Applied Science; 422
(c) Mississippi University for Women; 423
(d) The University of Southern Mississippi; 424
(e) Delta State University; 425
(f) Alcorn State University; 426
(g) Jackson State University; 427
(h) Mississippi Valley State University; 428
(i) And any other of like kind which may be hereafter 429
established by the state. 430
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 18

SECTION 3. Section 37-101-2, Mississippi Code of 1972, is 431
brought forward as follows: 432
37-101-2. There is hereby established within the Board of 433
Trustees of State Institutions of Higher Learning a Welfare Policy 434
Institute at a campus location to be designated by the board of 435
trustees. The purpose of the institute shall be to research and 436
gather empirical information regarding the social and welfare 437
programs authorized under Sections 43-49-1 through 43-49-15, 438
43-13-115, 43-17-1, 43-17-5, 43-1-8, 43-1-10, 43-1-30 and 37-101-2 439
and to write grant proposals regarding the policy implications of 440
such program. 441
SECTION 4. Section 37-101-3, Mississippi Code of 1972, is 442
brought forward as follows: 443
37-101-3. (1) The Governor, by and with the advice and 444
consent of the Senate, shall appoint the members of the Board of 445
Trustees of State Institutions of Higher Learning, one (1) member 446
from each congressional district of the state as existing as of 447
March 31, 1944, one (1) member from each Supreme Court district 448
and two (2) members from the state at large, with the terms of 449
each to begin on May 8, 1944. One-third (1/3) of the membership 450
of said board so appointed shall be appointed for a period of four 451
(4) years, one-third (1/3) for a period of eight (8) years and 452
one-third (1/3) for a period of twelve (12) years. On the 453
expiration of any of said terms of office the Governor shall 454
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 19

appoint successors, by and with the advice and consent of the 455
Senate, for terms of twelve (12) years in each case. 456
The current president, or his/her designee, of the Student 457
Body President's Council of Mississippi (SBPCM) shall have a 458
reserved seat at each meeting of the Board of Trustees of State 459
Institutions of Higher Learning. No less than once a year, the 460
board shall seek the advise and counsel of the student body 461
president's organization. 462
(2) In case of a vacancy on said board by death or 463
resignation of a member or from any other cause than the 464
expiration of such member's term of office, the board shall elect 465
his successor who shall hold office until the end of the next 466
session of the Legislature. During such term of the session of 467
the Legislature, the Governor shall appoint the successor member 468
of the board from the district from which his predecessor was 469
appointed to hold office until the end of the period or term for 470
which said original trustee was appointed, to the end that 471
one-third (1/3) of such trustees' terms shall expire each four (4) 472
years. 473
(3) The Executive Director of the Mississippi Community 474
College Board, or his designee, and one (1) member of the 475
Mississippi Community College Board, to be designated by the 476
chairman of said board, shall attend all regular meetings of the 477
Board of Trustees of State Institutions of Higher Learning. Said 478
community/junior college representatives shall have no 479
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 20

jurisdiction or vote on any matter within the jurisdiction of the 480
board. The Executive Director of the Mississippi Community 481
College Board and any designee who is a state employee shall 482
receive no per diem for attending meetings of the board, but shall 483
be entitled to actual and necessary expense reimbursement and 484
mileage for attending meetings at locations other than Jackson, 485
Mississippi. The designee of the Mississippi Community College 486
Board shall receive per diem compensation as authorized by Section 487
25-3-69, Mississippi Code of 1972, for attending said meetings, 488
and shall be entitled to reimbursement for actual expense 489
reimbursement and mileage, which shall be paid from funds 490
appropriated to the Board of Trustees of State Institutions of 491
Higher Learning. 492
SECTION 5. Section 37-101-4, Mississippi Code of 1972, is 493
brought forward as follows: 494
37-101-4. There shall be a trusteeship, to be known as the 495
Felix La Bauve Scholarship Trust, for the Felix La Bauve 496
Scholarship that exists for the benefit of the University of 497
Mississippi. The trusteeship shall be composed of three (3) 498
persons. The initial composition of the trusteeship shall be the 499
two (2) persons who last filled the position of La Bauve trustee 500
on the Board of Trustees of State Institutions of Higher Learning 501
and, as an ex officio voting member, the person holding the office 502
of DeSoto County Superintendent of Education. The term of the 503
trustee who served as La Bauve trustee on the Board of Trustees of 504
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 21

State Institutions of Higher Learning from 1980-1984 shall be four 505
(4) years. The term of the trustee who served in that position 506
from 1984-1988 shall be eight (8) years. The term of each of the 507
trustees shall begin on June 1, 1988. 508
At least one (1) month before the expiration of the term of a 509
trustee, other than the DeSoto County Superintendent of Education, 510
the trusteeship shall choose a successor who shall serve a term of 511
eight (8) years. No trustee other than the DeSoto County 512
Superintendent of Education shall serve more than one (1) term of 513
office. Any person chosen as a trustee other than the 514
Superintendent of Education shall be a resident of DeSoto County 515
and shall hold an undergraduate degree from the University of 516
Mississippi. 517
In case of the death, disability or resignation of any 518
trustee, other than the DeSoto County Superintendent of Education, 519
the trusteeship shall appoint a person to serve the remainder of 520
the term of his predecessor who shall be a resident of DeSoto 521
County and shall hold an undergraduate degree from the University 522
of Mississippi. 523
The trusteeship shall be responsible for recommending to the 524
Chancellor of the University of Mississippi prospective students 525
who are eligible recipients of the La Bauve Scholarship. The 526
chancellor shall choose the best qualified student or students 527
from those nominated, depending on the amount of monies available 528
for scholarship awards. 529
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 22

The Legislature shall continue to appropriate the annual sum 530
to the University of Mississippi that has been paid in lieu of the 531
interest earned on the original corpus of the La Bauve Scholarship 532
Fund until such time as the Legislature restores the original 533
corpus of the fund, adjusted to current value at the time of 534
restoration. Once the Legislature has restored the fund as 535
hereinbefore provided, the annual appropriation shall cease, and 536
scholarships shall be awarded from the income on the corpus of the 537
fund. Thereafter, no expenditure shall be made from the corpus of 538
the fund for any purpose. 539
SECTION 6. Section 37-101-5, Mississippi Code of 1972, is 540
brought forward as follows: 541
37-101-5. There shall be appointed only men or women to 542
membership on the Board of Trustees of State Institutions of 543
Higher Learning as shall be qualified electors residing in the 544
district from which each is appointed and at least twenty-five 545
(25) years of age and of the highest order of intelligence, 546
character, learning and fitness for the performance of such duties 547
to the end that such board shall perform the high and honorable 548
duties thereof to the greatest advantage of the people of the 549
state and of such institutions, uninfluenced by any political 550
considerations. 551
SECTION 7. Section 37-101-7, Mississippi Code of 1972, is 552
brought forward as follows: 553
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 23

37-101-7. Within ten (10) days after the beginning of the 554
terms of office of its members, upon call of the Governor, the 555
Board of Trustees of State Institutions of Higher Learning shall 556
meet in the City of Jackson and organize by electing one (1) of 557
its number as president, whose term of office shall be for one (1) 558
year or until a successor shall be elected, and shall transact 559
such other business as may come before the meeting. When the 560
presiding officer has voted and the result is a tie, he cannot 561
vote again to break the tie. 562
The trustees shall have authority to appoint a nonmember as 563
Commissioner of Higher Education, who shall possess the highest 564
qualifications as an administrator and research worker. The 565
Commissioner of Higher Education shall maintain an office and be 566
responsible to the board for the efficient functioning of the 567
staff which the board may from time to time establish. It shall 568
be the duty of the Commissioner of Higher Education to make 569
constant inquiry into the problems of higher education, to survey 570
and study carefully the organization, management and all other 571
affairs of each institution under the control of said trustees, to 572
make report of all findings and recommend such changes as will 573
increase efficiency and economy in the operation of each 574
institution, and to perform such other duties as the board may 575
prescribe. The Commissioner of Higher Education shall be 576
responsible for compiling all laws and all rules and regulations 577
of a general nature adopted by the board for the governance of the 578
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 24

various institutions of higher learning in pamphlet or loose-leaf 579
form. Current copies of such compilations shall be furnished to 580
all officials directly responsible for the carrying out of such 581
laws, rules and regulations. The expenses for such compilation 582
and publication shall be paid by the board out of any funds 583
available for the operation of said board. 584
The trustees shall authorize the employment of such other 585
personnel as may be required from time to time to carry out the 586
functions of the board and may assign to the personnel so employed 587
such functions and duties and may delegate to the commissioner or 588
other personnel such powers of the board as may be necessary to 589
accomplish the purposes for which the board was established. All 590
such personnel shall be employed by the commissioner with the 591
approval of the board and shall hold office at the pleasure of the 592
commissioner. The board shall also have the authority to employ 593
on a fee basis such technical and professional assistance as may 594
be necessary to carry out the powers, duties and purposes of the 595
board. 596
The Commissioner of Higher Education and other personnel 597
employed by the board shall receive reasonable salaries 598
commensurate with their duties and functions, the amount of which 599
shall be fixed by the board. The reasonable traveling expenses 600
and other authorized expenses incurred by the commissioner and 601
other personnel in the performance of their duties, together with 602
other expenses of the operation of the executive office, shall be 603
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 25

prorated and deducted from the appropriations for the current 604
expenses of the several institutions. 605
SECTION 8. Section 37-101-9, Mississippi Code of 1972, is 606
brought forward as follows: 607
37-101-9. The Board of Trustees of State Institutions of 608
Higher Learning shall serve without salary compensation but shall 609
receive a per diem and mileage as authorized by law including time 610
of going to and returning from meetings of said board, together 611
with actual travel and hotel expenses incident to the meetings of 612
the board, and in the discharge of duties prescribed by the board. 613
The board of trustees shall hold two (2) regular slated 614
meetings annually, one (1) in June and the other in January, and 615
as many special meetings as may be necessary on call of the 616
president or on call of five (5) members. In either case, the 617
call shall be in writing and shall be mailed by registered letter 618
with return receipt requested, or by certified mail, to each and 619
every member at least five (5) days prior to the date of meeting. 620
Eight (8) members of the board shall constitute a quorum for the 621
transaction of business. 622
SECTION 9. Section 37-101-11, Mississippi Code of 1972, is 623
brought forward as follows: 624
37-101-11. The Board of Trustees of State Institutions of 625
Higher Learning is hereby authorized and empowered, in its 626
discretion, to adopt and have an official seal in such form as it 627
deems appropriate for its official use. 628
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 26

SECTION 10. Section 37-101-13, Mississippi Code of 1972, is 629
brought forward as follows: 630
37-101-13. It shall be the duty of the Board of Trustees of 631
State Institutions of Higher Learning and the boards of trustees 632
of the community colleges to begin immediately a comprehensive 633
study of gaming and related programs, degrees and courses offered. 634
Following the completion of such study, the board shall make such 635
adjustments as may be found to be necessary in the programs of the 636
various institutions, to the end that the broadest possible 637
educational opportunities shall be offered to the citizens of this 638
state without inefficient and needless duplication. Subject to 639
the provisions of Section 75-76-34, the board shall, through such 640
officers of the board and through such procedures as it shall see 641
fit to establish, exercise continuing jurisdiction and control 642
over the establishment of new courses of study, new departments 643
and new functions and activities in each institution so that the 644
growth and development of the program of higher education in the 645
state shall proceed in an orderly and rational manner, inefficient 646
and needless duplication may be avoided, and new expanded programs 647
will be undertaken only as the same may become justified, based 648
upon objective criteria to be established by the board. In 649
carrying out the purposes of this section, particular attention 650
shall be given to the extension programs of the various 651
institutions. The boards, in conjunction with the chancellor and 652
presidents of the institutions, shall take such steps as may be 653
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 27

necessary to improve and coordinate such programs and shall 654
exercise such direct control over the establishment, organization, 655
operation and granting of credit for such programs as may be 656
necessary to accomplish such purposes. 657
SECTION 11. Section 37-101-16, Mississippi Code of 1972, is 658
brought forward as follows: 659
37-101-16. The Board of Trustees of State Institutions of 660
Higher Learning shall develop a system of manpower management 661
which shall be implemented in all institutions under the control 662
of the board. The manpower management system shall be so designed 663
to insure accurate and rapid reporting of all manpower positions 664
within each institution by job classification to include position 665
number and title, grade, salary and fringe benefits, name of 666
incumbent, social security number and date of hire. 667
SECTION 12. Section 37-101-19, Mississippi Code of 1972, is 668
brought forward as follows: 669
37-101-19. The Board of Trustees of State Institutions of 670
Higher Learning is hereby authorized and empowered to establish 671
and maintain a marine research laboratory on lands belonging to 672
the State of Mississippi, said lands being a part of the Magnolia 673
State Park in Jackson County, Mississippi, and to be assigned for 674
the use of such laboratory by the Mississippi Department of Marine 675
Resources. 676
The marine research laboratory may, in the discretion of the 677
Board of Trustees of State Institutions of Higher Learning, be 678
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 28

operated by the Mississippi Academy of Science, Inc., under the 679
supervision and control of the Board of Trustees of State 680
Institutions of Higher Learning. 681
The Board of Trustees of State Institutions of Higher 682
Learning is hereby authorized and empowered to expend annually out 683
of its regular appropriation for the support and maintenance of 684
institutions of higher learning a sum not exceeding Five Thousand 685
Dollars ($5,000.00) for the support and maintenance of the marine 686
research laboratory. 687
SECTION 13. Section 37-101-21, Mississippi Code of 1972, is 688
brought forward as follows: 689
37-101-21. A body politic and corporate is hereby created 690
under the name of Gulf Coast Research Laboratory, to have 691
perpetual succession, with powers to contract and be contracted 692
with; to receive and acquire, by any legal method, property of any 693
description, necessary or convenient for its operation, and to 694
hold, employ, use and convey the same; to adopt and use a 695
corporate seal; and to adopt bylaws, rules and regulations for the 696
government of the same, its employees, officials, agents, and 697
members. 698
The object and purposes of the Gulf Coast Research Laboratory 699
shall be to promote the study and knowledge of science including 700
the natural resources of the State of Mississippi and to provide 701
for the dissemination of research findings and specimens from the 702
Gulf Coast area. 703
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 29

The Gulf Coast Research Laboratory shall be under the control 704
and supervision of the Board of Trustees of State Institutions of 705
Higher Learning, and the powers of said laboratory shall be vested 706
in and its duties performed by said board. 707
The laboratory shall be located at some appropriate place 708
within the state and on the Gulf of Mexico to be determined by the 709
Board of Trustees of State Institutions of Higher Learning. 710
It shall be the duty of the Board of Trustees of State 711
Institutions of Higher Learning to appoint or elect a director for 712
said laboratory, determine the number of instructors, assistants 713
and other employees and fix their compensation, and in cooperation 714
with the Mississippi Academy of Science, prescribe rules, 715
regulations, and policies governing the operation of the 716
institution, qualifications of instructors and employees and for 717
the admission of students, and for the direction of research 718
programs. 719
SECTION 14. Section 37-101-23, Mississippi Code of 1972, is 720
brought forward as follows: 721
37-101-23. (1) The Mississippi Small Farm Development 722
Center, which shall be referred to in this section as the SFDC, is 723
established under the management and control of the Board of 724
Trustees of State Institutions of Higher Learning. The principal 725
offices of the SFDC shall be located at Alcorn State University 726
and shall be under the direction of the president of the 727
university subject to the governance of the board of trustees. 728
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 30

The president shall appoint a director of the SFDC who shall 729
recommend to the president necessary professional and 730
administrative staff of the center, all subject to the approval of 731
the board of trustees. 732
(2) It shall be the function and duty of the SFDC to: 733
(a) Develop a system to deliver management and 734
technical assistance to small farms utilizing the resources of 735
local, state and federal government programs, various segments of 736
the private sector, and universities and colleges throughout the 737
state; 738
(b) Make management and technical assistance available 739
to small farms by linking together with the above resources; 740
(c) Research and develop small farm opportunities for 741
new or alternative crops; 742
(d) Develop a clearinghouse for the collection and 743
dissemination of agricultural and economic data; and 744
(e) Assist small farms in developing more efficient 745
marketing and distribution channels, including foreign trade 746
marketing. 747
SECTION 15. Section 37-101-25, Mississippi Code of 1972, is 748
brought forward as follows: 749
37-101-25. The Mississippi Small Farm Development Center 750
shall develop a plan to foster and encourage the development in 751
this state of small enterprises which process "cash crops," 752
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 31

timber, or food and fiber products produced in Mississippi. The 753
plan shall include, but not be limited to: 754
(a) Means to identify small entrepreneurs who are in 755
the business of processing, or are interested in starting a 756
business to process, "cash crops," timber, or food and fiber 757
products; 758
(b) Means to encourage participation by such small 759
entrepreneurs in available business management and technical 760
assistance programs; and 761
(c) Any appropriate financial assistance to assist such 762
small entrepreneurs in financing their business, such as 763
interest-free state loans similar to existing Department of 764
Economic and Community Development programs administered out of 765
the Emerging Crops Fund. 766
SECTION 16. Section 37-101-29, Mississippi Code of 1972, is 767
brought forward as follows: 768
37-101-29. Each institution of higher learning with a 769
teacher education program approved by the State Board of Education 770
shall prepare and submit to the State Board of Education and to 771
the Board of Trustees of State Institutions of Higher Learning an 772
annual performance report on the institution's teacher education 773
program. The report shall include the following information: 774
(a) Teacher enrollment data; 775
(b) Professional education faculty data; 776
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 32

(c) Characteristics of students receiving initial 777
licensure; 778
(d) Number and percentage of program completers scoring 779
at or above the proficiency level on the prescribed teacher 780
education exit tests; 781
(e) Satisfaction rate of employers and graduates; 782
(f) Follow-up profiles of graduates of the teacher 783
education program; and 784
(g) Any other information required by the State Board 785
of Education. Before requiring any other information, the State 786
Board of Education shall conduct collaborative planning activities 787
with the Mississippi Association of Colleges of Teacher Education 788
and the Board of Trustees of State Institutions of Higher 789
Learning. 790
The State Department of Education, in collaboration with the 791
Mississippi Association of Colleges of Teacher Education and the 792
Board of Trustees of State Institutions of Higher Learning, shall 793
prepare a common form for the preparation and submission of the 794
annual performance reports. The State Department of Education 795
shall establish the date by which such reports must be submitted 796
to the board. No later than sixty (60) days after the deadline 797
date established for the submission of reports, the department 798
shall submit a compilation of all annual performance reports 799
received from the state institutions of higher learning to the 800
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 33

Chairmen of the Education Committees of the House of 801
Representatives and the Senate. 802
SECTION 17. Section 37-101-30, Mississippi Code of 1972, is 803
brought forward as follows: 804
37-101-30. (1) The Legislature finds and declares that a 805
compelling state interest exists in providing a retirement 806
incentive program or encouraging the retirement of those employees 807
of institutions of higher learning who are current and active 808
contributing members of the Public Employees' Retirement System. 809
(2) As used in this section: 810
(a) "Board" means the Board of Trustees of State 811
Institutions of Higher Learning. 812
(b) "Program" means the retirement incentive program 813
established under this section. 814
(3) (a) The board is authorized to pay, in fiscal years 815
selected by the board, a monetary incentive to employees who are 816
eligible for retirement in exchange for a voluntary agreement of 817
the employee: 818
(i) To retire on a specific date as set forth in 819
subsection (6) of this section, and 820
(ii) To waive any and all claims, known or 821
unknown, arising out of or related to employment or cessation of 822
employment at institutions of higher learning. 823
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 34

(b) The granting of additional compensation shall be 824
made in exchange for additional consideration given by the 825
employee. 826
(c) The retirement incentive authorized by this section 827
is a voluntary plan for institutions of higher learning faculty 828
and staff offering an incentive for retirement. The plan shall be 829
available to all full-time faculty and staff who meet the 830
eligibility criteria set forth in subsection (4) of this section. 831
(4) (a) To be eligible to participate in the program, 832
full-time faculty and staff of institutions of higher learning 833
must, as of the effective date of their retirement, be eligible to 834
retire under the laws governing the Public Employees' Retirement 835
System by virtue of: 836
(i) Having twenty-five (25) years of creditable 837
service, or 838
(ii) Being age sixty (60) and having at least four 839
(4) years of creditable service. 840
(b) The institution of higher learning offering the 841
program shall, in all cases, utilize the records of the Public 842
Employees' Retirement System as the source for determining 843
eligibility. 844
(c) The program is offered as an alternative to any 845
other retirement incentive plan that may be offered by the state 846
or the Public Employees' Retirement System in the future. 847
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 35

(5) In accordance with applicable law, the institution of 848
higher learning shall provide a cash benefit to each participant 849
in the program based upon a percentage of the participant's 850
current salary that is subject to federal income tax, state income 851
tax and Federal Insurance Contributions Act withholding. The 852
participant shall be compensated for unused annual leave as 853
otherwise provided by law. The cash benefit paid under this 854
section shall not be subject to employer or employee contributions 855
under the laws governing the Public Employees' Retirement System. 856
(6) Eligible employees shall make their election to 857
participate in the program in the manner and at the time 858
prescribed by the board. The date of retirement for all employees 859
participating in this program shall be June 30 of any fiscal year 860
in which the program is offered. Employees electing to 861
participate in the program shall agree to waive any claims, known 862
or unknown, arising out of or related to employment or cessation 863
of employment at institutions of higher learning. An employee may 864
revoke the election to participate in the program within seven (7) 865
days after the execution of the election. 866
(7) The additional compensation authorized under the program 867
is made in exchange for additional consideration given by the 868
employee. 869
(8) The board shall prescribe such rules and regulations as 870
it shall consider necessary to carry out the purposes of this 871
section. 872
S. B. No. 2523 *SS26/R198PS* ~ OFFICIAL ~
26/SS26/R198PS
PAGE 36
ST: Institutions of higher learning; require
adoption of new performance-based funding model.
SECTION 18. This act shall take effect and be in force from 873
and after July 1, 2026, and shall stand repealed on June 30, 2026. 874