HIGHER ED. AGREEMENT APPROVAL & REVIEW

SB 266, the "Higher Education Accountability Act," requires New Mexico's State Board of Finance and Attorney General to review and approve certain agreements involving university administrators (like presidents or senior leaders) before they take effect. It specifically covers employment contracts, retention deals, separation terms, and settlement agreements, plus release of liability and indemnification clauses. The bill mandates annual reports from the State Board of Finance to the Attorney General on reviewed agreements and creates a legal cause of action against board members who breach fiduciary duties (like failing to act in the institution's best interest). It also requires boards to hire separate legal counsel if a breach occurs. These provisions aim to increase oversight and accountability for high-level compensation and contract terms at state universities and community colleges.