HOUSE BILL 620
47th legislature - STATE OF NEW MEXICO - first session, 2005
INTRODUCED BY
Nick L. Salazar
AN ACT
RELATING TO HIGHER EDUCATION; ALLOWING LOTTERY TUITION SCHOLARSHIPS TO BE USED FOR NEW MEXICO STUDENTS ATTENDING REGIONALLY ACCREDITED PRIVATE NONPROFIT AND ACCREDITED NATIVE AMERICAN POST-SECONDARY EDUCATIONAL INSTITUTIONS IN NEW MEXICO; LIMITING AWARDS TO FIXED AMOUNTS NOT TO EXCEED TUITION SCHOLARSHIPS AT SIMILAR PUBLIC POST-SECONDARY EDUCATIONAL INSTITUTIONS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 6-24-23 NMSA 1978 (being Laws 1995, Chapter 155, Section 23, as amended) is amended to read:
"6-24-23. LOTTERY TUITION FUND CREATED--PURPOSE.--
A. The "lottery tuition fund" is created in the state treasury. The fund shall be administered by the commission on higher education. Earnings from investment of the fund shall accrue to the credit of the fund. Any balance in the fund at the end of any fiscal year shall remain in the fund for appropriation by the legislature as provided in this section.
B. Money in the lottery tuition fund is appropriated to the commission on higher education [for distribution to New Mexico's public post-secondary educational institutions] to provide tuition assistance for New Mexico resident undergraduates as provided by law."
Section 2. Section 6-24-27 NMSA 1978 (being Laws 1995, Chapter 155, Section 27, as amended) is amended to read:
"6-24-27. REVENUE AND BUDGET REPORTS--RECORDS--INDEPENDENT AUDITS.--
A. The board shall:
(1) submit quarterly and annual reports to the governor and the legislative finance committee disclosing the total lottery revenue, prizes, commissions, ticket costs, operating expenses and net revenues of the authority during the reporting period and, in the annual report, describe the organizational structure of the authority and summarize the functions performed by each organizational division within the authority;
(2) maintain weekly or more frequent records of lottery transactions, including the distribution of lottery tickets to retailers, revenue received, claims for prizes, prizes paid, prizes forfeited and other financial transactions of the authority; and
(3) use the state government fiscal year.
B. The board shall provide, for informational purposes, to the department of finance and administration and the legislative finance committee, by December 1 of each year, a copy of the annual proposed operating budget for the authority for the succeeding fiscal year. This budget proposal shall also be accompanied by an estimate of the net revenues to be deposited in the [public school capital outlay fund and the] lottery tuition fund for the current and succeeding fiscal years.
C. The board shall contract with an independent certified public accountant or firm for an annual financial audit of the authority. The certified public accountant or firm shall have no financial interest in any lottery contractor. The certified public accountant or firm shall present an audit report no later than March 1 for the prior fiscal year. The certified public accountant or firm shall evaluate the internal auditing controls in effect during the audit period. The cost of this financial audit shall be an operating expense of the authority. The legislative finance committee may, at any time, order an audit of any phase of the operations of the authority, at the expense of the authority, and shall receive a copy of the annual independent financial audit. A copy of any audit performed by the certified public accountant or ordered by the legislative finance committee shall be transmitted to the governor, the speaker of the house of representatives, the president pro tempore of the senate and the legislative finance committee."
Section 3. Section 21-1-4.4 NMSA 1978 (being Laws 1996, Chapter 71, Section 4) is amended to read:
"21-1-4.4. COMMISSION ON HIGHER EDUCATION--DETERMINATION OF TUITION SCHOLARSHIPS--USE OF LOTTERY TUITION FUND.--
A. Prior to June 1 of each year, the commission on higher education shall determine the amount of money available for tuition scholarships [at state public post-secondary educational institutions]. Based on the amount appropriated by the legislature from the lottery tuition fund and on the projected [enrollment at all public post-secondary educational institutions] number of students who will apply for tuition scholarships, the commission on higher education shall establish the [percentage of] fixed-amount tuition scholarships that shall be awarded for qualified resident students [attending New Mexico public post-secondary educational institutions]. The [percentage of] fixed-amount tuition scholarships awarded shall be the same for each post-secondary educational institution, regardless of the actual cost of tuition at each institution.
B. Tuition scholarships are available to students in all New Mexico public, regionally accredited private nonprofit and accredited Native American post-secondary educational institutions. The commission on higher education shall promulgate rules of eligibility and other requirements for students attending regionally accredited private nonprofit and accredited Native American post-secondary educational institutions that are similar to the rules for public post-secondary educational institutions."
Section 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2005.
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