HB 265: Higher Education Strategic Reinvestment - Utah

Amended 2/19/2025 11:02:647 → Substitute #1 · 4 edits

MODERATE

The bill was amended to add a coordination clause acknowledging alignment with H.B. 51 regarding reporting requirements, and to update the Utah Code sections affected list to reflect the correct chapter numbers for amendments. The substantive policy content remains unchanged from the original version.

Scope change

None - the bill's scope and applicability remain the same

TECHNICAL

Added a coordination clause noting alignment with H.B. 51 regarding subcommittee reports

Added a note about special effective date provision

Updated Utah Code sections affected list to correct chapter numbers (Chapter 3, 37, and 268)

Added page headers and formatting consistent with substitute bill markup

Amended 2/3/2025 11:02:66 → Amended 2/19/2025 11:02:647 · 7 edits

MODERATE

This bill amends Utah's higher education code to implement a strategic reinvestment program where institutions must reallocate dedicated funds from underperforming programs to strategic investments that better align with workforce needs and institutional missions. The changes establish a three-year timeline for institutions to progressively reallocate 100% of reinvestment funds, create new reporting requirements to appropriations subcommittees, and modify curriculum approval and periodic review processes. These changes matter because they shift higher education funding from static allocations to dynamic reinvestment based on performance metrics and workforce demands.

Scope change

The bill expands the scope of higher education oversight by adding new strategic reinvestment requirements that apply to all degree-granting institutions, while also modifying existing curriculum change and program review authority.

REQUIREMENT

New Section 53B-7-107 requires each degree-granting institution to develop a strategic reinvestment plan identifying programs to reduce or eliminate and strategic investments to fund, with progressive reallocation targets of 30%, 70%, and 100% over fiscal years 2026-2028.

Section 53B-16-102 is amended to allow the board to authorize degrees exceeding 120 credit hours by up to six additional hours for professional licensing requirements and to develop a process for conditional approval of accelerated three-year degrees.

Periodic program review requirements are modified to require reviews at least once every seven years for all programs, with annual qualitative and quantitative reviews of academic disciplines across the system.

ENFORCEMENT

The Executive Appropriations Committee now has authority to reduce an institution's appropriations by the amount the institution failed to properly reallocate reinvestment funds if the institution does not comply with its strategic reinvestment plan.

TIMELINE

Reinvestment fund disbursement is now contingent on board approval of strategic reinvestment plans and committee determinations, with specific reporting deadlines in August and September of fiscal years 2025-2027.

TECHNICAL

Section 63J-1-206 is amended to explicitly authorize the Utah Board of Higher Education to transfer reinvestment funds between line items as an exception to the general prohibition on line-item transfers.

A 2023 report requirement from Utah Valley University and the Utah Fire Prevention Board on fire and rescue training programs was removed from the recurring reports list.

Amended Excerpts 2/19/2025 11:02:647 → Amended 2/3/2025 11:02:66 · 6 edits

MODERATE

This bill updates Utah's higher education strategic reinvestment framework by clarifying funding allocation rules, expanding reporting requirements, and establishing new processes for program restructuring and accelerated degree approvals. The changes aim to improve transparency in how institutions reallocate funds while maintaining flexibility for strategic planning.

Scope change

The bill now explicitly requires degree-granting institutions to develop strategic reinvestment plans that address personnel decisions and program modifications, with specific consultation requirements with the board.

REQUIREMENT

Added detailed requirements for institutions to establish policies addressing position reductions, program eliminations, and internal procedures when implementing strategic reinvestment plans.

New reporting requirements added to Section 53B-1-301, including occasional reports on strategic reinvestment plans and nursing professional demand projections.

Established new process for conditional approval of accelerated three-year degrees, requiring board development of approval procedures.

DEFINITION

Reorganized and clarified definitions for 'institution of higher education' and 'program of instruction' to better align with current legislative structure.

FISCAL

Updated credit hour limits for degree programs, allowing up to 126 credit hours when professional licensing or accreditation requires additional coursework.

ENFORCEMENT

Added authority for the board to supersede existing institutional policies when they conflict with strategic reinvestment plan goals.

Amended Excerpts 2/3/2025 11:02:66 → Amended Excerpts 2/19/2025 11:02:647 · 5 edits

MODERATE

The bill was amended to clarify funding distribution language for technical colleges, remove outdated provisions about program reductions, and add new definitions for key terms like 'institution of higher education' and 'program of instruction'. The changes also update credit-hour limits for professional licensing programs and establish new processes for conditional approval of accelerated programs.

Scope change

The bill's scope was expanded to include clearer definitions of institutions and programs, and to address professional licensing requirements more explicitly.

FISCAL

Clarified enrollment-based funding language for technical colleges by splitting a line and adding 'distribution' to improve clarity.

REQUIREMENT

Deleted provisions about program reductions being considered financial exigencies, which may have been outdated or redundant.

Added requirements for the board to develop a process for granting conditional approval of accelerated programs.

DEFINITION

Added new definitions for 'institution of higher education' and 'program of instruction' to clarify the bill's application.

ELIGIBILITY

Updated credit-hour limits for professional licensing programs to allow up to 126 hours if required by licensing or accreditation bodies.

Enrolled → Amended Excerpts 2/3/2025 11:02:66 · 5 edits

MODERATE

This bill was amended to add specific requirements for how institutions must handle program reductions, clarify credit hour limits for accelerated degrees, and establish clearer timelines for strategic reinvestment plans. The changes ensure that when institutions cut programs to free up funds, those reductions count as financial exigencies under existing law, and they must create internal policies to manage these changes. The amendments also fix a typo in the periodic review schedule and clarify how reinvestment funds can be used for both strategic investments and program reductions.

Scope change

The bill's scope was expanded to explicitly include program reductions as financial exigencies and to clarify institutional responsibilities for managing personnel and program changes during strategic reinvestment.

REQUIREMENT

Added requirement that program reductions under strategic reinvestment plans constitute financial exigencies under Section 53B-2-106.1, which affects how institutions can legally reduce programs and staff.

Added detailed requirements for institutions to establish internal policies regarding personnel decisions and program modifications to effectuate strategic reinvestment plans.

TIMELINE

Fixed a typo in the periodic review schedule that stated 'sevenfive years' instead of 'seven years' for reviewing all academic disciplines across the system.

DEFINITION

Added clarification that institutions may supersede existing policies if they are inconsistent with the strategic reinvestment plan or its goals.

TECHNICAL

Corrected formatting and line breaks in the House amendments to improve readability and ensure proper legislative formatting.

Introduced → Enrolled · 8 edits · Mar 26, 2025

MODERATE

HB 265 establishes a strategic reinvestment program for Utah's higher education institutions, requiring them to reallocate dedicated funds from underperforming programs to strategic investments that align with workforce needs and institutional missions. The bill creates a three-year timeline (2026-2028) for institutions to shift at least 100% of reinvestment funds from reduced programs to strategic investments, with oversight by the Higher Education Appropriations Subcommittee and Executive Appropriations Committee. This legislation aims to improve program quality, workforce alignment, and student outcomes through targeted funding reallocation.

Scope change

The bill applies to all degree-granting institutions in Utah's higher education system and creates new requirements for program review, curriculum changes, and credit hour limits that affect how institutions structure their educational offerings.

REQUIREMENT

Requires each degree-granting institution to develop and submit a strategic reinvestment plan identifying programs to reduce or eliminate and strategic investments to prioritize.

Limits general education and degree-specific credit hour requirements to 120 hours (with limited exceptions up to 126 hours) and requires board approval for accelerated three-year degrees.

Requires periodic program reviews at least once every seven years and allows the board to modify, consolidate, or terminate underperforming programs.

FISCAL

Establishes a process for transferring reinvestment funds to institutions contingent on approval of their strategic reinvestment plans by the board and Executive Appropriations Committee.

TIMELINE

Sets specific deadlines for strategic reinvestment plan submission, board reviews, and fund reallocation percentages (30% in 2026, 70% in 2027, 100% in 2028).

ENFORCEMENT

Authorizes the Executive Appropriations Committee to reduce an institution's appropriations by an amount equal to funds not properly reallocated if the institution fails to comply with the reinvestment plan.

DEFINITION

Defines 'reinvestment funds' as money appropriated by the Legislature for strategic reinvestment and 'strategic reinvestment plan' as the institution's plan for reallocating those funds.

TECHNICAL

Includes coordination clause with H.B. 51 to address subcommittee reporting requirements and makes technical corrections to code sections.

Higher Education Strategic Reinvestment

What changed between versions

How they voted

Actions timeline

Sponsors