The "Higher Education Accountability Act" introduces new oversight measures for agreements with administrators at state educational institutions and community colleges in New Mexico. It requires that any qualifying agreement exceeding five years or a total compensation value greater than ten times that of the lowest-compensated regular full-time employee be submitted for review and approval by the State Board of Finance. Additionally, agreements that include terms for release of liability or indemnification must be reviewed by the Attorney General. The bill establishes a review process with specific timelines and declares that any agreement executed without the necessary reviews will be considered null and void.

Moreover, the bill creates a civil cause of action against members of boards of regents or community college boards for breaches of fiduciary duty, allowing the Attorney General to initiate legal action against violators. It mandates that if the Attorney General files a lawsuit against a board member, the institution's counsel cannot represent that member and must arrange for independent legal counsel. The court is granted authority to issue injunctions, compel performance of duties, and require reimbursement for legal defense costs in cases of suspected or confirmed breaches of fiduciary duty. These provisions aim to enhance transparency and accountability in the financial management of higher education institutions in New Mexico, with the act set to take effect on July 1, 2025.