The "Higher Education Accountability Act" introduces enhanced oversight and accountability measures for agreements involving administrators at state educational institutions and community colleges in New Mexico. It requires that any qualifying agreement—such as employment, performance, retention, separation, or settlement agreements—be submitted for review and approval by the State Board of Finance if it exceeds a five-year term or has a total compensation value greater than ten times that of the lowest-compensated regular full-time employee. Additionally, agreements that include release of liability or indemnification terms must be reviewed by the Attorney General. Non-compliance with these review requirements will render the agreements null and void.

The bill also establishes 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 the institution's counsel cannot represent the member named in the action and requires a plan for independent counsel to be provided. The court is granted authority to issue injunctions, compel performance, and order reimbursement for defense costs in cases of fiduciary breaches. These provisions are designed to enhance transparency and accountability in the management of public funds within higher education, with the act set to take effect on July 1, 2025.