SECTION 1. As used in this section, the term “performance-based funding” shall refer to the calculated appropriation of funding to public institutions of higher learning based upon the achievement of specific metrics of the performance measurement system, as detailed in section 7A of chapter 15A of the General Laws, as appearing in the 2012 Official Edition.

SECTION 2. Notwithstanding any general or special law to the contrary, there shall be a special commission to study and report on ways to improve and increase funding formulas for the public system of higher education within the commonwealth. The commission shall consist of the commissioner of higher education; 2 members of the house of representatives, 1 of whom shall be appointed by the speaker of the house, and 1 of whom shall be appointed by the minority leader of the house; 2 members of the senate, 1 of whom shall be appointed by the senate president, and 1 of whom shall be appointed by the senate minority leader; and 3 members to represent public institutions of higher education. Of the 3 members chosen to represent public institutions of higher education, 1 shall be a member of the board of trustees of the University of Massachusetts as voted by the board of trustees for the university, 1 shall be a member of a board of trustees of a state university chosen by vote of the chairs of the board of trustees of each of the state universities, and 1 shall be a member of a board of trustees of a community college chosen by vote of the chairs of the board of trustees of each of the community colleges. The scope of the commission shall include, but shall not be limited to: studying the various methods of performance-based funding at public institutions of higher education throughout the United States; researching the results of performance-based funding throughout the United States; incentivizing the retention, support, and graduation of students, instead of enrollment of students, at each level of the public system of higher education;  increasing the performance-based funding levels to public institutions of higher education; updating the mission statements and goals of individual institutions at each level of the public system of higher education; and revising the performance measurement system, to reflect the individual missions and goals of each institution and ensure that performance-based funding is allocated appropriately.

SECTION 3. The performance-based funding formula of this act shall be effective beginning in the 2016-2017 school year.