The "Higher Education Accountability Act" seeks to improve oversight and accountability 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 exceeding 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 mandates annual reporting from educational institutions regarding these agreements to enhance transparency.

Moreover, the bill establishes a civil cause of action against members of boards of regents or community college boards for breaches of fiduciary duty, empowering the Attorney General to initiate legal action against violators. It outlines new procedures for legal actions involving board members, ensuring that the institution's counsel does not represent the member named in the action and requires 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. The provisions of this act are set to take effect on July 1, 2025.