For the purposes of this chapter, the following terms have the following meanings:

1. (1) ACADEMICALLY UNDERPREPARED STUDENT. A student that started his or her academic program without meeting the readiness requirements established by the Outcomes-Based Higher Education Funding Coordinating Committee in discussion with the individual institutions.
2. (2) ADULT LEARNER. A student who is 25 years of age or older.
3. (3) ALABAMA COMMISSION ON HIGHER EDUCATION (ACHE). The commission established in Chapter 5 of this title.
4. (4) AVAILABLE FUNDING MULTIPLIER. Formula used to determine the annual amount of bonus funding available to each eligible institution calculated like the higher education portion of the funds appropriated from the Education Trust Fund Advancement and Technology Fund pursuant to Section 29-9-4, excluding dual enrollment students from the calculation.
5. (5) BASE YEAR. The year established by the Outcomes-Based Higher Education Funding Coordinating Committee in discussion with the individual institutions to reflect the reference point prior to the performance year to be used to measure and compare performance and outcome changes over time. (6) COLLEGE AND HIGHER EDUCATION EXCELLENCE AND RESULTS (CHEER) FUND. The fund created by this chapter to provide bonus funding to higher education institutions that meet identified student and institution performance goals and objectives.
6. (7) COMMITTEE. The Outcomes-Based Higher Education Funding Coordinating Committee established in Section 16-5B-6.
7. (8) COMPLETION. The number of degrees or certificates awarded by an eligible institution.
8. (9) CREDIT. One semester credit hour or the equivalent.
9. (10) EDUCATIONAL PROGRAM. A program that leads to a certificate, an associate degree, bachelor’s degree, technical degree, micro-credential, industry credential, graduate degree or any other program as defined by the Outcomes-Based Higher Education Funding Coordinating Committee in discussion with the individual institutions.

10. (11) ELIGIBLE INSTITUTIONS. The following institutions:

    1. a. Alabama A&M University.
    2. b. Alabama State University.
    3. c. Athens State University.
    4. d. Auburn University.
    5. e. Auburn University at Montgomery.
    6. f. Jacksonville State University.
    7. g. Troy University.
    8. h. The University of Alabama at Birmingham.
    9. i. The University of Alabama in Huntsville.
    10. j. The University of Alabama in Tuscaloosa.
    11. k. University of Montevallo.
    12. l. University of North Alabama.
    13. m. University of South Alabama.
    14. n. University of West Alabama.
    15. o. Tuskegee University.
    16. p. Community and technical colleges that are part of the Alabama Community College System.
11. (12) EMPLOYED IN A HIGH-DEMAND FIELD. A graduated student is employed in a job with more jobs available than qualified candidates to fill or where there will be more jobs available in that career over a defined period of time, as determined by the committee in discussion with the individual institutions.

12. (13) EMPLOYED IN A HIGH-WAGE JOB. A graduated student who is employed in a job five years after graduation with a wage that is at least one of the following, for the 25 to 34 age group, as determined by the committee in discussion with the individual institutions:

    1. a. Ten percent higher than the state median wage for high school graduates, if the student passed an industry credential or completed a sub-associate or technical program.
    2. b. Twenty percent higher than the state median wage for high school graduates, if the student earned an associate degree.
    3. c. Fifty percent higher than the state median wage, if the student earned a bachelor’s degree or other post-bachelor’s degree.
13. (14) ENROLLED. A student who is enrolled in an educational institution.
14. (15) HIGHER-NEED STUDENT. A student who is likely to require additional supports and services to achieve postgraduation success, including low-income students, academically underprepared students, adult learners, and other categories of higher-need students as identified pursuant to §16-5B-5.
15. (16) LOW-INCOME STUDENT. A student who received a full or partial federal Pell Grant award at any point in the academic year.
16. (17) PERFORMANCE YEAR. The year established by the committee in discussion with the individual institutions to reflect the most recently completed scholastic year used to measure performance and outcome changes from the established base year.
17. (18) PREMIER RESEARCH UNIVERSITY. A public university whose annual external grants and contracts revenues exceed one hundred million dollars ($100,000,000) based on publicly available audited financial statements.
18. (19) SOME COLLEGE, NO DEGREE. Adults with some postsecondary education, but who have not earned a degree or credential, including those who dropped out, are currently enrolled, or took a few classes.
19. (20) STUDENT POSTGRADUATION SUCCESS. A student that is enrolled, employed, or enlisted, as defined in this section, within a time frame of graduating from or completing an educational program established by the committee in discussion with the individual institutions.
20. (21) STUDENT RETENTION. Keeping students enrolled and engaged in an eligible institution from one academic period to the next, calculated by dividing the number of returning students by the total number who started in the previous academic period.

(Act 2026-422, §1.)