HIGHER ED. MAJOR PROJECTS FUND

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AN ACT
RELATING TO CAPITAL IMPROVEMENTS; CREATING THE HIGHER
EDUCATION MAJOR PROJECTS FUND; SPECIFYING ELIGIBLE USES OF
THE FUND; PROVIDING CRITERIA FOR FUNDING; SPECIFYING
REQUIREMENTS; ALLOWING THE LEGISLATURE TO WAIVE MATCH
REQUIREMENTS; SPECIFYING INITIAL PRIORITIES.
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:
"HIGHER EDUCATION MAJOR PROJECTS FUND--CREATED--ELIGIBLE
USES--MATCH REQUIREMENTS.--
A. As used in this section:
(1) "department" means the higher education
department;
(2) "four-year educational institution"
means a university enumerated in Article 12, Section 11 of
the constitution of New Mexico;
(3) "student life projects" means major
capital outlay for nonacademic purposes that enhances
students' college experience, including recreation centers,
dining halls, athletic facilities for state universities
participating in division 1 and division 2 athletics and in
good standing with the national collegiate athletic
association and other campus amenity facilities; and
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(4) "two-year educational institution" means
a community college, including branch community colleges,
northern New Mexico state school and the New Mexico military
institute for its junior college program.
B. The "higher education major projects fund" is
created as a nonreverting fund in the state treasury. The
fund consists of appropriations, income from investment of
the fund, gifts, grants, donations and other money credited
to the fund. The fund shall be administered by the
department, and money in the fund is subject to appropriation
by the legislature for major capital outlay projects at
educational institutions. Expenditures shall be by warrant
of the secretary of finance and administration pursuant to
vouchers signed by the secretary of higher education or the
secretary's authorized representative.
C. Eligible uses of the fund include:
(1) for the four-year educational
institutions, major capital outlay projects for:
(a) research and instruction and
general purposes costing fifty million dollars ($50,000,000)
or more; and
(b) student housing and student life
projects; and
(2) for the two-year educational
institutions and tribal colleges located wholly within New
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Mexico, student housing and student life projects.
D. Except as provided in Subsection E of this
section, major capital outlay projects shall meet the
following match requirements from sources other than the
state before expenditures are made from the fund:
(1) for design phase funding:
(a) for the four-year educational
institutions, at least twenty-five percent for research and
instruction and general purposes and at least fifty percent
for student housing and student life projects; and
(b) for the two-year educational
institutions, at least fifty percent for student housing and
student life projects; and
(2) for construction phase funding:
(a) for the four-year educational
institutions, at least ten percent for research and
instruction and general purposes and at least twenty percent
for student housing and student life projects; provided that
for athletic facilities, the project cost is at least fifty
million dollars ($50,000,000) and the match requirement,
which is not waivable, is at least fifty percent of project
cost; and
(b) for the two-year educational
institutions, at least fifty percent for student housing and
student life projects.
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E. A required match may be eligible to be waived
upon a finding by the department that the educational
institution cannot reasonably afford the match with
institutional reserves, institutional bonds in accordance
with the Institution Bond Act, property tax levies, federal
or tribal support, student fees or other applicable nonstate
revenue. The department shall promulgate rules to specify
requirements and procedures for waivers. The secretary of
higher education shall notify the secretary of finance and
administration and the director of the legislative finance
committee of the waiver findings by November 1 of the year
preceding the regular legislative session in which funding
may be sought to cover a match waiver. Waivers must be
approved by the legislature before they are granted by the
department.
F. Money from the fund shall not be appropriated
for construction phase funding prior to the completion of at
least fifty percent of the design phase and the submission of
design documents to the department and the legislative
finance committee.
G. To receive funding, a state university applying
for division 1 athletic facilities shall provide data that
shows that the most recent six-year graduation rate for
first-time full-time freshmen is sixty-five percent or higher
or that the graduation rate for students in the most recent
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year is higher than the average rate of the previous three
years.
H. In addition to other requirements in this
section, an educational institution shall provide to the
department and the legislative finance committee
documentation showing historic on-campus student populations
and the expected number of on-campus students to be served by
a new facility and documentation demonstrating the new
facility's compliance with existing institutional space
standards and policies."
SECTION 2. TEMPORARY PROVISION--INITIAL PRIORITIES.--
Subject to appropriation by the legislature, the following
projects shall be initial priorities for expenditures from
the higher education major projects fund:
A. up to one hundred fifty million dollars
($150,000,000) to plan, design, construct, equip and furnish
the new school of medicine at the university of New Mexico;
B. up to fifty million dollars ($50,000,000) to
plan, design, construct, equip and furnish a
multidisciplinary building at New Mexico state university;
C. up to one hundred million dollars
($100,000,000) to plan, design, construct, equip and furnish
student life and housing projects statewide;
D. twenty million dollars ($20,000,000) for the
university of New Mexico stadium;
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E. ten million dollars ($10,000,000) for eastern
New Mexico university student housing and student life
projects;
F. ten million dollars ($10,000,000) for New
Mexico highlands university student housing and student life
projects; and
G. ten million dollars ($10,000,000) for western
New Mexico university student housing and student life
projects.