(1) In accordance with this section, and based on money deposited into the account, the Legislature shall, as part of the higher education appropriations budget process, annually determine the full new performance funding amount for each: (a) higher education institution; and (b) technical college.

(a) higher education institution; and

(b) technical college.

(2) The Legislature shall annually allocate: (a) 90% of the money in the account to higher education institutions; and (b) 10% of the money in the account to technical colleges.

(a) 90% of the money in the account to higher education institutions; and

(b) 10% of the money in the account to technical colleges.

(3) (a) The Legislature shall determine a higher education institution's full new performance funding amount based on the higher education institution's prior year share of: (i) full-time equivalent enrollment in all higher education institutions; and (ii) the total state-funded appropriated budget for all higher education institutions. (b) In determining a higher education institution's full new performance funding amount, the Legislature shall give equal weight to the factors described in Subsections (3)(a)(i) and (ii).

(a) The Legislature shall determine a higher education institution's full new performance funding amount based on the higher education institution's prior year share of: (i) full-time equivalent enrollment in all higher education institutions; and (ii) the total state-funded appropriated budget for all higher education institutions.

(i) full-time equivalent enrollment in all higher education institutions; and

(ii) the total state-funded appropriated budget for all higher education institutions.

(b) In determining a higher education institution's full new performance funding amount, the Legislature shall give equal weight to the factors described in Subsections (3)(a)(i) and (ii).

(4) (a) The Legislature shall determine a technical college's full new performance funding amount based on the technical college's prior year share of: (i) membership hours for all technical colleges; and (ii) the total state-funded appropriated budget for all technical colleges. (b) In determining a technical college's full new performance funding amount, the Legislature shall give equal weight to the factors described in Subsections (4)(a)(i) and (ii).

(a) The Legislature shall determine a technical college's full new performance funding amount based on the technical college's prior year share of: (i) membership hours for all technical colleges; and (ii) the total state-funded appropriated budget for all technical colleges.

(i) membership hours for all technical colleges; and

(ii) the total state-funded appropriated budget for all technical colleges.

(b) In determining a technical college's full new performance funding amount, the Legislature shall give equal weight to the factors described in Subsections (4)(a)(i) and (ii).

(5) Annually, at least 30 days before the first day of the legislative general session: (a) the board shall submit a report to the Higher Education Appropriations Subcommittee on each higher education institution's performance; and (b) the Utah System of Technical Colleges Board of Trustees shall submit a report to the Higher Education Appropriations Subcommittee on each technical college's performance.

(a) the board shall submit a report to the Higher Education Appropriations Subcommittee on each higher education institution's performance; and

(b) the Utah System of Technical Colleges Board of Trustees shall submit a report to the Higher Education Appropriations Subcommittee on each technical college's performance.

(6) (a) In accordance with this Subsection (6), and based on the reports described in Subsection (5), the Legislature shall determine for each higher education institution and each technical college: (i) the portion of the full new performance funding amount earned; and (ii) the amount of new performance funding to recommend that the Legislature appropriate, from the account, to the higher education institution or technical college. (b) (i) A higher education institution earns the full new performance funding amount if the higher education institution has a positive change in performance of at least 1% compared to the higher education institution's average performance over the previous five years. (ii) (A) Except as provided in Subsection (6)(b)(ii)(B), a technical college earns the full new performance funding amount if the technical college has a positive change in the technical college's performance of at least 5% compared to the technical college's average performance over the previous five years. (B) A technical college's change in performance may be compared to the technical college's average performance over fewer than five years in accordance with Subsection 53B-7-707(3)(b). (c) A higher education institution or technical college that has a positive change in performance that is less than a change described in Subsection (6)(b) is eligible to receive a prorated amount of the full new performance funding amount. (d) A higher education institution or technical college that has a negative change, or no change, in performance over a time period described in Subsection (6)(b) is not eligible to receive new performance funding.

(a) In accordance with this Subsection (6), and based on the reports described in Subsection (5), the Legislature shall determine for each higher education institution and each technical college: (i) the portion of the full new performance funding amount earned; and (ii) the amount of new performance funding to recommend that the Legislature appropriate, from the account, to the higher education institution or technical college.

(i) the portion of the full new performance funding amount earned; and

(ii) the amount of new performance funding to recommend that the Legislature appropriate, from the account, to the higher education institution or technical college.

(b) (i) A higher education institution earns the full new performance funding amount if the higher education institution has a positive change in performance of at least 1% compared to the higher education institution's average performance over the previous five years. (ii) (A) Except as provided in Subsection (6)(b)(ii)(B), a technical college earns the full new performance funding amount if the technical college has a positive change in the technical college's performance of at least 5% compared to the technical college's average performance over the previous five years. (B) A technical college's change in performance may be compared to the technical college's average performance over fewer than five years in accordance with Subsection 53B-7-707(3)(b).

(i) A higher education institution earns the full new performance funding amount if the higher education institution has a positive change in performance of at least 1% compared to the higher education institution's average performance over the previous five years.

(ii) (A) Except as provided in Subsection (6)(b)(ii)(B), a technical college earns the full new performance funding amount if the technical college has a positive change in the technical college's performance of at least 5% compared to the technical college's average performance over the previous five years. (B) A technical college's change in performance may be compared to the technical college's average performance over fewer than five years in accordance with Subsection 53B-7-707(3)(b).

(A) Except as provided in Subsection (6)(b)(ii)(B), a technical college earns the full new performance funding amount if the technical college has a positive change in the technical college's performance of at least 5% compared to the technical college's average performance over the previous five years.

(B) A technical college's change in performance may be compared to the technical college's average performance over fewer than five years in accordance with Subsection 53B-7-707(3)(b).

(c) A higher education institution or technical college that has a positive change in performance that is less than a change described in Subsection (6)(b) is eligible to receive a prorated amount of the full new performance funding amount.

(d) A higher education institution or technical college that has a negative change, or no change, in performance over a time period described in Subsection (6)(b) is not eligible to receive new performance funding.

(7) An appropriation described in this section is ongoing.

(8) Notwithstanding Section 53B-7-703 and Subsections (6) and (7), the Legislature may, by majority vote, appropriate or refrain from appropriating money for performance funding as circumstances require in a particular year.

(9) On or before November 1, 2020, the Education Interim Committee, the Higher Education Appropriations Subcommittee, and the governor shall review the implementation of performance funding described in this part.