1. (a) Subject to available funding for the CHEER Fund for any fiscal year of the state, the committee in discussion with the individual eligible institutions shall select factors for inclusion in the performance outcome categories for CHEER Fund bonus funding to be identified in the annual Education Trust Fund appropriations act for each fiscal year:

   1. (1) Student success factors, including:

      1. a. Student postgraduate success, including:

         1. 1. Employment in a high-wage job;
         2. 2. Employment in a high-demand field; and
         3. 3. Enrollment.
      2. b. Adult learner;
      3. c. Completion rate;
      4. d. Higher-need students;
      5. e. Some college, no degree;
      6. f. Student retention; and
      7. g. Other proposals, initiatives, and concepts as deemed necessary by the committee in discussion with the individual eligible institutions to advance the creation and expansion of institutions of excellence across all Alabama higher education while serving the needs of the workforce and communities throughout the state.
   2. (2) Alignment with economic development and workforce needs, including certificate and degree production in high-demand fields and the potential earning power of graduates.
   3. (3) Research, including increased research expenditures or receipt of additional matching federal funds or other funds for research activities by premier research universities.
   4. (4) Innovation, including use of methodologies and practices that accelerate or remove barriers to students obtaining certificates or degrees, as approved by the committee.

2. (b) The bonus amount for each weighted category shall be calculated by multiplying the percentage for each weight, as determined by the committee in discussion with the individual institutions, by the amount of available bonus funding for that institution.

   1. (1) If an institution meets or exceeds the identified performance goals and objectives for a category, it will receive all of its available bonus funding related to that category. (2) If an institution does not meet its identified performance goals and objectives for a category, the available funding for that category shall remain in the CHEER Fund and available to be appropriated to other eligible institutions at a later time.
3. (c) By September 1 of each year, the commission shall certify the amount to be distributed from the CHEER Fund to each eligible institution that meets its performance goals and objectives pursuant to this section and outlined in the annual Education Trust Fund appropriations act, not to exceed the available amounts in the CHEER Fund. The commission shall distribute the appropriations in the CHEER Fund for that fiscal year to the institutions in the amounts certified.
4. (d) It is the intent of the Legislature that eligible institutions receiving bonus funding from this chapter utilize the funds solely to serve the needs of their student population in a manner that directly supports and advances the performance outcome categories selected by the committee pursuant to Section 16-5B-5, and that is reasonably calculated to result in measurable improvements in the student success factors identified therein. Provided, however, bonus funding received by premier research universities for increased research expenditures may be used for enhancing and increasing research and innovation including equipment, instrumentation, and infrastructure, including hardware and software; recruiting principal investigators, graduate research students; capital projects, including renovation of existing facilities; associated operating and maintenance costs; and matching funds for federal grants and contracts.

(Act 2026-422, §1.)