1. (1)

   1. (a)

      1. (i) The board shall establish a model for determining an institution's performance.

      2. (ii) The board shall:

         1. (A) set a five-year goal for the Utah System of Higher Education for each metric described in Subsection (2)(a);
         2. (B) adopt five-year goals for each institution that align with each goal described in Subsection (1)(a)(ii)(A);
         3. (C) ensure the goals the board adopts for each institution described in Subsection (1)(a)(ii)(B) are sufficiently rigorous to meet the goals described in Subsection (1)(a)(ii)(A); and
         4. (D) set a five-year goal for each institution for each metric described in Subsection (2)(b).

   2. (b)

      1. (i) The board shall submit a draft of the model described in this section to the Higher Education Appropriations Subcommittee and the governor for comments and recommendations.

      2. (ii) Every five years, the board shall:

         1. (A) submit the model described in Subsection (1)(a)(i) and the goals described in Subsection (1)(a)(ii) to the Higher Education Appropriations Subcommittee and to the governor for comments and recommendations; and
         2. (B) consider the comments and recommendations described in Subsection (1)(b)(ii)(A), and make any necessary changes to the model described in Subsection (1)(a)(i) and the goals described in Subsection (1)(a)(ii).

   3. (c) Every five years:

      1. (i) the Higher Education Appropriations Subcommittee shall make recommendations to the Executive Appropriations Committee regarding legislation for introduction at the following general legislative session to adopt the goals described in Subsection (1)(a)(ii); and
      2. (ii) the Executive Appropriations Committee shall approve or modify the Higher Education Appropriations Subcommittee's recommendations described in Subsection (1)(c)(i).

   4. (d) After the release of the Department of Workforce Services' bi-annual long-term occupational projections:

      1. (i) the board may identify up to five strategically important occupations for degree-granting institutions and five strategically important occupations for technical colleges that:

         1. (A) the Talent, Education, and Industry Alignment Board created in Section 53H-13-302 recommends to the board; and
         2. (B) the board approves;
      2. (ii) if a strategically important occupation described in Subsection (1)(d)(i) becomes a targeted job, the board may identify another strategically important occupation in accordance with the limit described in Subsection (1)(d)(i); and
      3. (iii) if a job no longer constitutes a high-demand job, either because the board de-selects a strategically important occupation in favor of a different occupation or because a job is no longer a targeted job, the job shall remain a factor for performance funding calculations in relation to the students who were enrolled in the given program at the time the job most recently constituted a high-demand job.

2. (2)

   1. (a) For the five-year performance period beginning on July 1, 2022, and ending on June 30, 2027, the board shall set the goals and establish the performance model described in Subsection (1)(a)(i) for the following metrics:

      1. (i) access;
      2. (ii) timely completion; and
      3. (iii) high-yield awards.

   2. (b) For the five-year performance period beginning on July 1, 2027, and ending on June 30, 2032, the board shall establish the performance model described in Subsection (1)(a)(i) and set the goals described in Subsection (1)(a)(ii)(D) for the following metrics:

      1. (i) for each institution:

         1. (A) responsiveness to workforce needs, measured by degrees and certificates the institution awarded that map to high-demand jobs in the state; and
         2. (B) institutional efficiency, measured by degrees and certificates the institution awarded per full-time equivalent student;

      2. (ii) for each degree-granting institution:

         1. (A) the metrics described in Subsection (2)(b)(i); and
         2. (B) timely completion, meaning the percentage of a cohort that completes an award within 150% of the time in which a student typically completes the award at full-time status, measured by awards granted;

      3. (iii) for each regional university and community college described in Subsections 53H-3-602(1)(b)(ii) and 53G-3-602(1)(b)(iii):

         1. (A) the metrics described in Subsection (2)(b)(i); and
         2. (B) the number of students achieving the student's first 30 credit hours;

      4. (iv) for each research university described in Subsection 53H-3-602(1)(b)(iv):

         1. (A) the metrics described in Subsection (2)(b)(i); and
         2. (B) the total number of research dollars the university expended; and

      5. (v) for each technical college:

         1. (A) the metrics described in Subsection (2)(b)(i); and
         2. (B) placement rates of graduates into employment or degree-granting programs.

3. (3) The board shall:

   1. (a) determine the relative weights of the metrics described in and in accordance with Subsection (2);
   2. (b) determine and establish in board policy, the definitions, measures, and relative weights of the metrics described in Subsection (2) based on each institution's mission; and
   3. (c) for a definition of credit hours eligible for meeting the 30-hour threshold for the metric described in Subsection (2)(b)(iii)(B), include a student's concurrent enrollment credits and other credits for prior learning the student has earned.

4. (4) For each institution, the board shall annually:

   1. (a) adopt annual performance goals for each metric described in Subsection (2) that are sufficiently rigorous to advance the institution toward achievement of the five-year goals described in Subsection (1)(a)(ii);
   2. (b) evaluate performance in meeting the goals described in Subsection (4)(a); and
   3. (c) include a degree-granting institution's or technical college's performance under this section in the evaluation described in Subsection 53H-1-203(2)(i).
5. (5) The board shall use the model described in Subsection (1)(a)(i) to make the report described in Section 53H-8-303 for determining an institution's performance funding.

6. (6) At the end of each five-year period for which the board sets goals under Subsection (1)(a)(ii):

   1. (a) the board shall:

      1. (i) review the Utah System of Higher Education's performance in meeting the goals the board sets under Subsection (1)(a)(ii)(A);
      2. (ii) review each institution's performance in meeting the goals the board sets under Subsection (1)(a)(ii)(B) or (1)(a)(ii)(D); and
      3. (iii) allocate any funds not allocated under Subsection 53H-8-303(6)(d) to each institution that meets or exceeds the goals the board sets under Subsection (1)(a)(ii)(B) or (1)(a)(ii)(D); and
   2. (b) the Legislature may appropriate additional funds for the board to allocate to each institution that meets or exceeds goals as described in Subsection (6)(a)(iii).

7. (7) In year two or three of each five-year period for which the board sets goals under Subsection (1)(a)(ii), the following shall hold a meeting to review the goals the board sets under Subsection (1)(a)(ii):

   1. (a) the Higher Education Appropriations Subcommittee; and
   2. (b) after the meeting described in Subsection (7)(a), the Executive Appropriations Committee.

Amended by Chapter 229, 2026 General Session