New Mexico § 21-1-27.1 - Higher education endowment fund created

§ 21-1-27.1. Higher education endowment fund created

A. The “higher education endowment fund” is created in the state treasury. The fund shall consist of appropriations, income from investment of the fund, gifts,

grants, donations and bequests. B. The higher education endowment fund shall be administered by the higher education

department. Money shall be disbursed only on warrant of the secretary of finance and administration

upon voucher signed by the secretary of higher education or the secretary's authorized

representative. C. Money in the higher education endowment fund is appropriated to the department

for distribution to the public post-secondary educational institutions listed in Subsection

D of this section that submit proposals and receive award determinations from the

department to establish endowments at the institutions for endowment purposes. Endowment purposes shall include: (1) establishing endowed chairs, lectureships, professorships, research positions,

graduate assistantships and faculty development programs that will enhance the quality

of public post-secondary education in New Mexico; and (2) addressing one or more of the governor's initiatives, including research and development

initiatives; technology transfer initiatives; science, technology, engineering and

mathematics initiatives; health, education, water and agriculture initiatives; and

work force development initiatives. D. Appropriations to the higher education endowment fund shall be distributed to public

post-secondary educational institutions as awards made by the department or the higher

education endowment committee pursuant to competitive proposals submitted by institutions,

as follows: (1) sixty-two percent of the total amount to be distributed may be awarded to the

university of New Mexico, the university of New Mexico health sciences center, New

Mexico state university and the New Mexico institute of mining and technology; (2) twenty percent of the total amount to be distributed may be awarded to the New

Mexico military institute and any independent community college, branch community

college and technical and vocational institute; and (3) eighteen percent of the total amount to be distributed may be awarded to New Mexico

highlands university, eastern New Mexico university, western New Mexico university

and northern New Mexico college. E. Following an award determination, a public post-secondary educational institution

shall not receive a distribution until that institution provides documentation to

the department that it has received or will receive matching funds, pursuant to a

written gift agreement, for the endowment from nongovernmental sources in an amount

equal to at least fifty percent of the award amount. Distributions from the higher education endowment fund are made over a two-year

cycle with unmatched balances reverting to the general fund at the end of the second

fiscal year. Allocations not matched during the first year of a cycle are made available during

the second year of a cycle for supplemental or second round matching by any institution

listed in Subsection D of this section. F. The endowment funds of the institutions shall not be expended but shall be invested

by the institutions in accordance with the Uniform Prudent Management of Institutional

Funds Act 1 and the provisions of Section 21-1-38 NMSA 1978 . The income from the investments shall be expended only for endowment purposes. G. The “higher education endowment committee” is created. The committee is composed of the secretaries of higher education, economic development

and finance and administration or their designees. The committee shall meet no less than twice per year to review proposals and award

determinations to: (1) determine whether the proposals and award determinations meet endowment purposes; (2) determine whether the endowment funds are being distributed pursuant to the provisions

of this section; and (3) recommend ways to support or change the endowment purposes award and distribution

processes. H. The department shall establish rules setting forth the procedures for making award

determinations and distributing money from the higher education endowment fund pursuant

to the provisions of this section. I. The department shall report annually to the legislative finance committee on award

determinations made pursuant to this section. The report shall include the amounts awarded to each institution, the amount of

matching funds and their sources and the purposes of the endowments and awards. 1

NMSA 1978, § 46-9A-1 et seq.