HIGHER ED. MAJOR PROJECTS FUND

SB0124

SENATE BILL 124

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Pete Campos

FOR THE LEGISLATIVE FINANCE COMMITTEE

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.

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
] 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 enhance students'
college experience, including recreation centers, dining halls,
athletic facilities for state universities participating in
division 1 athletics and in good standing with the national
collegiate athletic association and other campus amenity
facilities; and

(4) "two-year educational institution" means a
community college, including branch community colleges,
northern New Mexico state school and 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 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.

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
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."

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