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

Establishes a new performance-based funding model requiring 75% of general operating funds to be distributed based on measurable student outcomes, with no more than 25% distributed through other methods.

Requires the Board of Trustees to establish performance standards, scoring thresholds, and values for each metric by June 20, 2026, and publish the complete funding model by June 30, 2026.

Mandates specific measurable outcomes including four-year and six-year graduation rates, transfer success, Pell Grant completion, workforce-relevant degree production, and efficiency metrics using rolling three-year averages.

Prohibits persons subject to registration requirements under Sections 45-33-21 through 45-33-63 (sex offenders) from residing in dormitories or student living accommodations on campus.

Requires annual public reporting on funding model performance, including institution-level results, trends, at-risk institutions, and board actions taken.

Sets July 1, 2029 as the implementation deadline for full performance-based funding distribution, with a three-year transition period for new appropriations only.

Changed effective date from July 1, 2026 to July 1, 2026 with repeal on June 30, 2026, making the performance funding provisions retroactively effective for the 2026-2027 fiscal year.

Creates a 10% performance-based holdout that can be withheld from institutions failing to meet minimum performance standards, with specific procedures for identifying at-risk institutions and requiring improvement plans.

Excludes intercollegiate athletics revenues and expenditures, as well as institutional foundation and alumni funds, from performance calculations to focus on core educational outcomes.

Reorganized bill structure by consolidating substantive policy into Section 37-101-15 while maintaining other sections for possible future amendment.