N.M. Stat. § 21-1-27.4

A. The “higher education program development enhancement fund” is created in the state treasury. All income earned on investment of the fund shall be credited to the fund and money in the fund shall not revert to any other fund at the end of a fiscal year. The fund shall be administered by the higher education department 1 and money in the fund is appropriated to the department to carry out the purposes of this section. Disbursements from the fund shall be by warrant drawn by the secretary of finance and administration pursuant to vouchers signed by the executive director of the higher education department or his authorized representative.

B. The higher education program development enhancement fund shall be used to enhance the contribution of post-secondary educational institutions to the resolution of critical state issues and the advancement of the welfare of state citizens.

C. At the beginning of each fiscal year in which the commission [department] determines that the balance of the fund is sufficient to make awards, the commission [department] shall define or reaffirm no more than four critical issues to be addressed through awards from the fund. Issues to be addressed may include:

(1) expanding instructional programs to meet critical statewide work force and professional training needs;

(2) enhancing instructional programs that provide employment opportunity for New Mexico students in a global economy; and

(3) developing mission-specific instructional programs that build on existing institutional academic strengths.

D. The department shall establish criteria and procedures for making awards from the fund based on evaluation of competitive proposals submitted by post-secondary educational institutions. Each winning proposal shall address at least one of the critical issues defined for use of the fund that year. Criteria may include:

(1) collaboration among educational agencies and other public or private entities that demonstrate a competency regarding the issues addressed by the proposal;

(2) the commitment of matching money; and

(3) evaluation components.

E. The commission [department] shall report annually to the legislature and the governor on the status of the fund and projects supported by the fund.