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AN ACT
RELATING TO HIGHER EDUCATION; ALLOWING COLLEGE AFFORDABILITY
SCHOLARSHIPS TO BE USED AT TRIBAL COLLEGES; DEFINING ELIGIBLE
STUDENT; ADJUSTING DISTRIBUTIONS TO THE COLLEGE AFFORDABILITY
SCHOLARSHIP FUND; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 21-21L-1 NMSA 1978 (being Laws 2005,
Chapter 192, Section 1) is amended to read:
"21-21L-1. SHORT TITLE.--Chapter 21, Article 21L NMSA
1978 may be cited as the "College Affordability Act"."
Section 2. Section 21-21L-3 NMSA 1978 (being Laws 2005,
Chapter 192, Section 3) is amended to read:
"21-21L-3. DEFINITIONS.--As used in the College
Affordability Act:
A. "commission" or "department" means the higher
education department;
B. "eligible student" means a New Mexico resident
who is enrolled or enrolling at least half-time in a public
post-secondary educational institution or tribal college at
any time later than one hundred twenty days following high
school graduation or the award of a general educational
development certificate;
C. "scholarship" means a college affordability
scholarship; and
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D. "tribal college" means a tribally, federally or
congressionally chartered post-secondary educational
institution located in New Mexico that is accredited by the
north central association of colleges and schools."
Section 3. Section 21-21L-4 NMSA 1978 (being Laws 2005,
Chapter 192, Section 4) is amended to read:
"21-21L-4. CONDITIONS FOR ELIGIBILITY.--A scholarship
may be awarded to an eligible student who:
A. has not earned a baccalaureate degree at the
time the scholarship is awarded;
B. has demonstrated financial need consistent with
the criteria promulgated by the department; and
C. has complied with other rules promulgated by
the department to carry out the provisions of the College
Affordability Act."
Section 4. Section 21-21L-5 NMSA 1978 (being Laws 2005,
Chapter 192, Section 5) is amended to read:
"21-21L-5. SCHOLARSHIP AUTHORIZED--ADMINISTRATION--
PREFERENCE IN SCHOLARSHIP AWARDS.--
A. The department shall administer the College
Affordability Act and shall promulgate rules to carry out the
provisions of that act.
B. Scholarships shall be awarded to qualified
eligible students. Qualifications shall be determined by rule
of the department.
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C. The department shall allocate money to public
post-secondary educational institutions and tribal
colleges based on a student need formula calculated according
to income reported on the free application for federal student
aid and on the percentage of the institution's students
classified as returning adults who are otherwise ineligible
for state financial aid.
D. Public post-secondary educational institutions
and tribal colleges shall make awards to qualifying eligible
students based on financial need in an amount not to exceed
one thousand dollars ($1,000) per semester as determined by
rule of the department.
E. Money for the scholarship shall be placed in an
account at the public post-secondary educational institution
or tribal college in the name of the eligible student, and the
money may be drawn upon to pay educational expenses charged by
the institution, including tuition, fees, books and course
supplies."
Section 5. Section 21-21L-6 NMSA 1978 (being Laws 2005,
Chapter 192, Section 6) is amended to read:
"21-21L-6. DURATION OF SCHOLARSHIP.--Each scholarship
is for a period of one semester. A scholarship may be
renewed, provided the eligible student continues to meet the
conditions of eligibility, until the eligible student
graduates from a four-year public post-secondary educational
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institution."
Section 6. Section 21-21L-7 NMSA 1978 (being Laws 2005,
Chapter 192, Section 7) is amended to read:
"21-21L-7. TERMINATION OF SCHOLARSHIP.--A scholarship
is terminated upon occurrence of one or more of the following:
A. withdrawal of the eligible student from the
public post-secondary educational institution or tribal
college or failure to remain as at least a half-time student;
B. failure of the eligible student to achieve
satisfactory academic progress; or
C. substantial noncompliance by the eligible
student with the College Affordability Act or the rules
promulgated pursuant to that act."
Section 7. Section 21-21L-8 NMSA 1978 (being Laws 2005,
Chapter 192, Section 8) is amended to read:
"21-21L-8. FUNDS CREATED.--
A. The "college affordability endowment fund" is
created as a nonreverting fund in the state treasury,
consisting of appropriations; unspecified gifts, grants and
donations to the fund; and income from investment of the fund
except as provided in Subsection C of this section.
B. The "college affordability scholarship fund" is
created as a nonreverting fund in the state treasury,
consisting of income from investment of the fund and any
specified distributions, appropriations, gifts, grants and
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donations to the fund. Money in the scholarship fund is
appropriated to the department for scholarship awards as
provided in the College Affordability Act. Expenditures from
the scholarship fund shall be by warrant of the secretary of
finance and administration pursuant to vouchers signed by the
secretary of higher education or the secretary's authorized
representative.
C. Until fifty percent of the annual income from
investment of the college affordability endowment fund is
equal to or exceeds two million dollars ($2,000,000), an
annual distribution of two million dollars ($2,000,000) shall
be made from the college affordability endowment fund to the
college affordability scholarship fund. Thereafter, until the
corpus of the endowment fund is two hundred fifty million
dollars ($250,000,000), fifty percent of the income from
investment of the fund shall be applied to the corpus of the
fund and fifty percent shall be distributed annually to the
scholarship fund. After the corpus of the endowment fund is
two hundred fifty million dollars ($250,000,000), all of the
income from investment of the fund shall be distributed to the
college affordability scholarship fund."
Section 8. EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2007.
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