HOUSE BILL 230

50th legislature - STATE OF NEW MEXICO - first session, 2011

INTRODUCED BY

Al Park

AN ACT

RELATING TO EXECUTIVE ORGANIZATION; MERGING THE HIGHER EDUCATION DEPARTMENT WITH THE DEPARTMENT OF FINANCE AND ADMINISTRATION; CREATING A DIVISION; PROVIDING POWERS AND DUTIES; PROVIDING FOR TRANSFER OF FUNCTIONS, PROPERTY, CONTRACTUAL OBLIGATIONS AND STATUTORY REFERENCES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 9-6-3 NMSA 1978 (being Laws 1977, Chapter 247, Section 3, as amended) is amended to read:

     "9-6-3. DEPARTMENT OF FINANCE AND ADMINISTRATION--CREATION--TRANSFER AND MERGER OF DIVISION FUNCTIONS--MERGER AND CREATION OF DIVISIONS.--

          A. The "department of finance and administration" is created. The department shall consist of those divisions created by law or executive order, as modified by executive order pursuant to Subsection C of this section, including but not limited to:

                (1) the board of finance division;

                (2) the financial control division;

                (3) the local government division;

                (4) the management and contracts review division; [and]

                (5) the state budget division; and

                (6) the higher education division.

          B. The secretary is empowered to organize the department and the divisions thereof specified in Subsection A of this section and may transfer or merge functions between divisions in the interest of efficiency and economy.

          C. The governor is empowered to merge divisions of the department or to create additional divisions by executive order in the interest of efficiency and economy."

     SECTION 2. A new section of the Department of Finance and Administration Act is enacted to read:

     "[NEW MATERIAL] HIGHER EDUCATION DIVISION DUTIES.--Consistent with constitutional provisions relating to the control and management of the educational institutions enumerated in Article 12, Section 11 of the constitution of New Mexico, the department shall:

          A. cooperate with colleges and universities to create a statewide public agenda to meet higher education needs and goals;

          B. periodically study and report to the governor and the legislative finance committee on enrollment capacity needs over a ten-year period, based on state demographic models, academic program demands, institutional competencies and infrastructure, state work force needs, economic development goals and other factors; and

          C. by November 1 of each year, present to the legislature a comprehensive funding request and a legislative priorities list for all higher education. The funding request and priorities shall encompass the needs of all public post-secondary educational institutions and programs.

     SECTION 3. 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 division of the department of finance and administration. 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] division 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 4. Section 7-37-8 NMSA 1978 (being Laws 1978, Chapter 128, Section 1, as amended) is amended to read:

     "7-37-8. SCHOOL TAX RATES.--No later than August 15 of each year, the [state department of] public education department shall submit to the secretary of finance and administration the property tax rates for the succeeding tax year for each school district and the [commission on] higher education division of the department of finance and administration shall submit to the secretary of finance and administration the property tax rates for the succeeding tax year for each technical and vocational district, [area vocational school district, junior] community college district and branch community college district. The rates required to be submitted pursuant to this section shall separately state by county and by school district the rate to be levied for operational purposes and the rate to be levied for payment of principal and interest on general obligation debt issued or entered into by the district."

     SECTION 5. Section 9-15D-2 NMSA 1978 (being Laws 2009, Chapter 275, Section 2) is amended to read:

     "9-15D-2. DEFINITIONS.--As used in the Green Jobs Act:          A. "department" or "division" means the higher education division of the department of finance and administration;

          B. "fund" means the green jobs fund;

          C. "green industries" means industries that contribute directly to preserving or enhancing environmental quality by reducing waste and pollution or producing sustainable products using sustainable processes and materials and that provide opportunities for advancement along a career track of increasing skills and wages. Green industries include:

                (1) energy system retrofits to increase energy efficiency and conservation;

                (2) production and distribution of biofuels, including vehicle retrofits for biofuels;

                (3) building design and construction that meet the equivalent of best available technology in energy and environmental design standards;

                (4) organic and community food production;

                (5) manufacture of products from nontoxic, environmentally certified or recycled materials;

                (6) manufacture and production of sustainable technologies, including solar panels, wind turbines and fuel cells;

                (7) solar technology installation and maintenance;

                (8) recycling, green composting and large-scale reuse of construction and demolition materials and debris; and

                (9) water retrofits to increase water efficiency and conservation;

          D. "green jobs training programs" means those programs implemented by educational institutions related to training individuals to work in green industries and to ensure that appropriate support services are provided;

          E. "support services" means those services that provide trainees with the opportunity to participate in green jobs training programs, including:

                (1) child care;

                (2) tuition;

                (3) materials needed for training programs;

                (4) counseling and mentoring services;

                (5) internships; or

                (6) job placement programs; and

          F. "target populations" means disadvantaged individuals, including:

                (1) low-income individuals;

                (2) veterans;

                (3) formerly incarcerated, nonviolent offenders;

                (4) tribal and rural constituencies;

                (5) workers adversely affected by changing national or state energy policy;

                (6) at-risk youth;

                (7) unemployed youth and adults;

                (8) high school dropouts; or

                (9) single mothers."

     SECTION 6. Section 9-27-9 NMSA 1978 (being Laws 2007, Chapter 290, Section 9, as amended) is amended to read:

     "9-27-9. INFORMATION TECHNOLOGY COMMISSION--CREATION--POWERS AND DUTIES.--

          A. The "information technology commission" is created. The commission consists of fifteen voting members as follows:

                (1) four members appointed by the governor, who are not from the higher education division of the department of finance and administration or the public education department;

                (2) one staff member with telecommunications regulatory experience appointed by the chair of the public regulation commission;

                (3) two members representing education, one appointed by the [secretary] director of the higher education division and one appointed by the secretary of public education;

                (4) two members appointed by the governor to represent local government, one appointment to be selected by the governor from a list of three names provided by the New Mexico association of counties and one appointment to be selected by the governor from a list of three names provided by the New Mexico municipal league;

                (5) two members appointed at-large by the governor;

                (6) two members appointed by the governor to represent local telecommunications service providers; and

                (7) two members from the national laboratories appointed by the respective laboratory director.

          B. Additionally, the following nonvoting members may serve on the commission:

                (1) two members from the judicial information systems council appointed by the chair of that council;

                (2) one staff member from the legislative council service and one staff member from the legislative finance committee, appointed by their respective directors; and

                (3) the secretary as chief information officer.

          C. No appointee or designee of the commission from a state agency shall be less than the deputy head of the agency.

          D. A registered lobbyist under the Lobbyist Regulation Act shall not serve on the commission while registered as a lobbyist or for one year after terminating work as a lobbyist in compliance with the termination requirements of the Lobbyist Regulation Act.

          E. The commission shall appoint a voting member to represent the commission on the department's committee or other body that certifies information technology projects.

          F. The members of the commission who are not supported by public money, or their designees, may receive per diem and mileage pursuant to the Per Diem and Mileage Act, but shall receive no other compensation, perquisite or allowance.           G. The commission shall elect a chair and vice chair from the active voting membership of the commission for two-year terms.

          H. The department shall provide staff to the commission.

          I. The commission shall meet at least quarterly to review and approve:

                (1) the development and implementation of the state information technology strategic plan;

                (2) critical information technology initiatives for the state;

                (3) identification of information technology needs of state agencies;

                (4) strategies for identifying information technology projects that affect multiple agencies;

                (5) the state information architecture and the state information technology strategic plan for updates and compliance by executive agencies;

                (6) proposed rules by the secretary; and

                (7) guidelines for mediation of disputes between an executive agency and the secretary as chief information officer."

     SECTION 7. Section 10-9-5 NMSA 1978 (being Laws 1978, Chapter 96, Section 1, as amended) is amended to read:

     "10-9-5. PUBLIC OFFICERS AND PUBLIC EMPLOYEES--EXECUTIVE BRANCH--ANNUAL EXEMPT SALARIES PLAN.--

          A. The department of finance and administration shall prepare, by December 1 of each year, an exempt salaries plan for the governor's approval. The plan shall specify salary ranges for the following public officer and public employee positions of the executive branch of government:

                (1) members of boards and commissions appointed by the governor;

                (2) heads of agencies or departments appointed by the governor;

                (3) heads of agencies or departments appointed by the respective boards and commissions of the agencies;

                (4) directors of department divisions;

                (5) employees in the governor's office;

                (6) positions in the state militia and the commissioned officers of the New Mexico state police division of the department of public safety;

                (7) assistants and secretaries in the offices of each official covered by Paragraphs (2), (3) and (10) of this subsection;

                (8) positions of a professional or scientific nature [which] that are temporary in nature;

                (9) state employees whose positions the personnel board has classified as policymaking positions and exempt employees of elective public officials; and

                (10) secretaries of departments appointed by the governor.

          B. Excluded from the provisions of this section are employees of the [commission on higher education and employees of] state educational institutions named in Article 12, Section 11 of the constitution of New Mexico.

          C. The exempt salaries plan for the ensuing fiscal year, as prepared by the department of finance and administration and approved by the governor, shall be published as a part of the executive budget document presented to the legislature at its next regular session following the preparation of the plan.

          D. Upon the governor's approval, the plan shall take effect at the beginning of the subsequent fiscal year."

     SECTION 8. Section 12-6-14 NMSA 1978 (being Laws 1969, Chapter 68, Section 14, as amended) is amended to read:

     "12-6-14. CONTRACT AUDITS.--

          A. The state auditor shall notify each agency designated for audit by an independent auditor, and the agency shall enter into a contract with an independent auditor of its choice in accordance with procedures prescribed by rules of the state auditor; provided, however, that an agency subject to oversight by the [state department of] public education [or the commission on higher education] department shall receive approval from its oversight agency prior to submitting a recommendation for an independent auditor of its choice. The state auditor may select the auditor for an agency that has not submitted a recommendation within sixty days of notification by the state auditor to contract for the year being audited, and the agency being audited shall pay the cost of the audit. Each contract for auditing entered into between an agency and an independent auditor shall be approved in writing by the state auditor. Payment of public funds may not be made to an independent auditor unless a contract is entered into and approved as provided in this section.

          B. The state auditor or personnel of [his] the state auditor's office designated by [him] the state auditor shall examine all reports of audits of agencies made pursuant to contract. Based upon demonstration of work in progress, the state auditor may authorize progress payments to the independent auditor by the agency being audited under contract. Final payment for services rendered by an independent auditor shall not be made until a determination and written finding that the audit has been made in a competent manner in accordance with the provisions of the contract and applicable rules by the state auditor."

     SECTION 9. Section 13-1B-6 NMSA 1978 (being Laws 1992, Chapter 58, Section 6, as amended) is amended to read:

     "13-1B-6. LOAN PROGRAM--DUTIES OF THE DEPARTMENT.--

          A. The department shall:

                (1) administer the provisions of the Alternative Fuel Acquisition Act, except that the provisions of Section 13-1B-3 NMSA 1978 shall be administered by the [commission on higher education and the state department of] public education department for [their respective programs] public schools;

                (2) establish a program to make loans to the agencies and departments of state government, political subdivisions and educational institutions, individually or jointly, to facilitate the acquisition of vehicles of the agencies and departments of state government, political subdivisions and educational institutions in accordance with the Alternative Fuel Acquisition Act;

                (3) review, evaluate and approve or reject all loan applications submitted to obtain loans from the fund;

                (4) submit an annual report to the governor and the legislature evaluating the status and the effectiveness of the Alternative Fuel Acquisition Act; and

                (5) have an annual audit performed on the administration of the fund.

          B. The department shall adopt rules [and regulations] necessary to carry out the purposes of the Alternative Fuel Acquisition Act, including rules [and regulations] governing:

                (1) the procedures and format for submitting loan applications to the department to obtain a loan from the fund;

                (2) the criteria to review, evaluate and approve loan applications;

                (3) the procedure to determine the distribution of money in the fund; and

                (4) the procedure to determine and notify an applicant of the progress on a loan application."

     SECTION 10. Section 21-1-1.2 NMSA 1978 (being Laws 2007, Chapter 227, Section 1, as amended) is amended to read:

     "21-1-1.2. DUAL CREDIT FOR HIGH SCHOOL AND POST-SECONDARY CLASSES.--

          A. As used in this section:

                (1) "bureau of Indian education high school" means a school located in New Mexico that is under the control of the bureau of Indian education of the United States department of the interior;

                (2) "dual credit program" means a program that allows high school students to enroll in college-level courses offered by a public post-secondary educational institution or tribal college that may be academic or career-technical but not remedial or developmental, and simultaneously to earn credit toward high school graduation and a post-secondary degree or certificate; and

                (3) "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.

          B. To be eligible to participate in a dual credit program, the student shall:

                (1) except as provided in Subsection C of this section, be enrolled in a regular public school, charter school, state-supported school or bureau of Indian education high school in one-half or more of the minimum course requirements approved by the public education department for public school students; and

                (2) obtain permission from a school counselor; the school principal; or the head administrator of a charter school, state-supported school or bureau of Indian education high school prior to enrolling in a dual credit course.

          C. A student who has met the eligibility criteria provided for in Subsection B of this section in a fall or winter semester and who has not graduated or earned a general educational development certificate may take courses for dual credit during the immediately succeeding summer semester.

          D. The school district, charter school,

state-supported school or bureau of Indian education high school that the student attends shall pay the cost of the required textbooks and other course supplies for the post-secondary course the student is enrolled in through purchase arrangements with the bookstore at the public post-secondary educational institution or tribal college or through other cost-efficient methods. The student shall return the textbooks and unused course supplies to the school district, charter school, state-supported school or bureau of Indian education high school when the student completes the course or withdraws from the course.

          E. A public post-secondary educational institution or tribal college that participates in a dual credit program shall waive all general fees for dual credit courses.

          F. The higher education division of the department of finance and administration shall revise procedures in the higher education funding formula to address enrollments in dual credit courses and to encourage institutions to waive tuition for high school students taking those courses.

          G. The higher education [department] division and the public education department shall adopt and promulgate rules to implement a dual credit program that specify:

                (1) post-secondary courses that are eligible for dual credit;

                (2) conditions that apply, including:

                     (a) the required academic standing and conduct of students enrolled in dual credit courses;

                     (b) the semesters in which dual credit courses may be taken;

                     (c) the nature of high school credit earned;

                     (d) any caps on the number of courses, location of courses and provision of transcripts; and

                     (e) an appeals process for a student who is denied permission to enroll in a dual credit course;

                (3) accommodations or other arrangements applicable to special education students;

                (4) the contents of the uniform master agreement, developed in collaboration with school districts, charter schools, state-supported schools, bureau of Indian education high schools, public post-secondary educational institutions and tribal colleges, that govern the roles, responsibilities and liabilities of the school district, charter school, state-supported school or bureau of Indian education high school; the public post-secondary educational institution or tribal college; and the student and the student's family;

                (5) provisions for expanding dual credit opportunities through distance learning and other methods;

                (6) the means by which public high schools are required to inform students and parents about opportunities to participate in dual credit programs during student advisement, academic support and formulation of annual next step plans, as well as other methods; and

                (7) provisions for collecting and disseminating annual data, including:

                     (a) the number of students taking dual credit courses;

                     (b) the participating school districts, charter schools, state-supported schools, bureau of Indian education high schools, public post-secondary educational institutions and tribal colleges;

                     (c) the courses taken and grades earned;

                     (d) the high school graduation rates for participating school districts, charter schools, state-supported schools and bureau of Indian education high schools;

                     (e) the public post-secondary educational institutions and tribal colleges that participating students ultimately attend; and

                     (f) the cost of providing dual credit courses.

          H. The higher education [department] division and the public education department shall evaluate the dual credit program in terms of its accessibility to students statewide and its effect on:

                (1) student achievement in secondary education;

                (2) student enrollment and completion of higher education; and

                (3) school districts, charter schools, state-supported schools, bureau of Indian education high schools, public post-secondary educational institutions and tribal colleges.

          I. The [departments] division and the department shall make an annual report, including recommendations, to the governor and the legislature.

          J. The provisions of this section do not apply to the New Mexico military institute."

     SECTION 11. Section 21-1-4 NMSA 1978 (being Laws 1971, Chapter 235, Section 1, as amended) is amended to read:

     "21-1-4. TUITION AND GENERAL FEE CHARGES--

DEFINITIONS.--

          A. The state educational institutions set forth in Article 12, Section 11 of the constitution of New Mexico and their branches, community colleges as provided in Chapter 21, Article 13 NMSA 1978 and technical and vocational institutes as provided in Chapter 21, Article 16 NMSA 1978 shall charge tuition, which is in addition to general or other earmarked fees, as provided by law.

          B. "Tuition" means the amount of money charged to students for instructional services, which may be charged per term, per course or per credit. "Tuition" does not include required general or other fees.

          C. "General fee" means a fixed sum charged to students for items not covered by tuition and required of such a proportion of all students that the student who does not pay the charge is an exception. General fees include fees for matriculation, library services, student activities, student union services, student health services, debt service and athletics. An institution may charge fees in addition to general fees that are course-specific or that pertain to a smaller proportion of students.

          D. During the regular academic year, "full-time student" means a student who is taking twelve or more credit hours in one semester or quarter. Full-time students during the academic year shall be charged tuition at rates provided by law.

          E. During the summer session, "full-time student" means a student who is taking at least a minimum number of credit hours, which minimum is in the same proportion to twelve credit hours as the duration and normal credit-hour load of the summer session in the particular institution is to the duration and normal credit-hour load of the institution's regular semester or quarter. Full-time students in the summer session shall be charged tuition at resident and nonresident rates in each institution, which rates shall be in the same proportion to the full-time resident and nonresident rates of that institution for the regular semester or quarter as the minimum number of credit hours is to twelve hours.

          F. "Part-time student" means a student who is taking fewer than the minimum number of credit hours in a semester, quarter or summer session required for full-time student status. Part-time students shall be charged tuition at rates per semester credit hour or quarter credit hour as provided by law.

          G. The higher education division of the department of finance and administration shall define resident and nonresident students for the purpose of administering tuition charges in accordance with the constitution and statutes of the state and after consultation with the appropriate officials of the institutions concerned. Each institution shall use the uniform definitions so established in assessing and collecting tuition charges from students."

     SECTION 12. Section 21-1-6 NMSA 1978 (being Laws 1975, Chapter 308, Section 1, as amended) is amended to read:

     "21-1-6. WAIVING OF NONRESIDENT DIFFERENTIAL IN TUITION RATES ON A RECIPROCAL BASIS WITH OTHER STATES.--The [commission on] higher education division of the department of finance and administration shall identify those circumstances [where] in which the waiving of the nonresident differential in tuition rates, on a reciprocal basis with other states, including the states of the foreign country contiguous to New Mexico, would enhance educational opportunities for New Mexico residents. Relative to the identified circumstances, the [commission] division shall negotiate with the other states involved with the objective of establishing reciprocal agreements for the waiving of the nonresident differential for New Mexico residents attending institutions in other states in exchange for New Mexico institutions waiving the nonresident differential for residents of the other states. Upon successful completion of the negotiations, the [commission] division may identify those classes and numbers of New Mexico residents whose educational opportunities would be enhanced and the number and classes of nonresident students for whom the nonresident differential is to be waived by the New Mexico institutions and may direct that the institutions grant such waivers. The [commission] division shall establish [regulations] rules for the administration of the waivers and for the reporting of the cases in which the waivers are given."

     SECTION 13. Section 21-1-21.1 NMSA 1978 (being Laws 2001, Chapter 319, Section 22) is amended to read:

     "21-1-21.1. STATE EDUCATIONAL INSTITUTIONS--ADEQUATE PARKING.--The staff architect of a university, or the [commission on] higher education division of the department of finance and administration in the case of state educational facilities that do not employ a staff architect, shall review all plans for the construction or major enlargement of a state educational facility prior to the execution of a contract for such work and shall certify to the state board of finance that adequate parking is provided for the use of staff employed in the facility, students who attend classes or events in the facility and members of the public reasonably expected to enter the facility. If adequate parking is not provided for, no contract may be entered into."

     SECTION 14. Section 21-1-26 NMSA 1978 (being Laws 1951, Chapter 190, Section 1, as amended) is amended to read:

     "21-1-26. HIGHER EDUCATION [DEPARTMENT] DIVISION--GENERAL

POWERS.--

          A. The higher education division of the department of finance and administration shall be concerned with the problems of finance of those educational institutions designated in Article 12, Section 11 of the constitution of New Mexico and other public post-secondary educational institutions in the state. The [department] division shall:

                (1) be concerned with the adequate financing of these institutions and with the equitable distribution of available funds among them;

                (2) receive, adjust and approve the budgets submitted by these institutions prior to the submission of these budgets to the state budget division of the department of finance and administration;

                (3) develop and maintain programs, on a regular basis, for the orientation and in-service education of members of the boards of regents of the various educational institutions designated in Article 12, Section 11 of the constitution of New Mexico and the governing bodies of other public post-secondary educational institutions in the state;

                (4) analyze the financial impact of each new degree program of each public post-secondary educational institution as part of the [department's] division's review of the institution's operating budget; and

                (5) exercise such other powers as may be granted it by law.

          B. Effective July 1, 2005, all new state-funded baccalaureate, graduate and professional degree programs shall be offered by public four-year educational institutions and all new associate degree programs shall be offered by public post-secondary educational institutions only after a timely and thorough consultation with and review by the [department] division.

          C. Notwithstanding any other provisions of law, the higher education [department] division may be designated by the governor to administer funds furnished under acts of congress for post-secondary educational institutions, except for funds specifically appropriated or otherwise designated for those educational institutions enumerated in Article 12, Section 11 of the constitution of New Mexico.

          D. The higher education [department] division is also charged with oversight of all private post-secondary educational institutions operating within the state."

     SECTION 15. Section 21-1-26.1 NMSA 1978 (being Laws 1980, Chapter 145, Section 2, as amended) is amended to read:

     "21-1-26.1. ADDITIONAL DUTIES.--In addition to the duties imposed upon the higher education [department] division of the department of finance administration by the Post-Secondary Educational Planning Act, the [department] division shall perform the same planning and budgeting functions for the university of New Mexico [hospital] health sciences center as it performs for other post-secondary educational institutions."

     SECTION 16. Section 21-1-26.2 NMSA 1978 (being Laws 1981, Chapter 69, Section 1, as amended) is amended to read:

     "21-1-26.2. POST-SECONDARY EDUCATION--ADULT CORRECTIONAL FACILITIES.--Upon approval by the corrections department in consultation with the higher education division of the department of finance and administration, state-supported post-secondary educational institutions shall receive credit on a full-time equivalency basis for students enrolled in their respective programs within adult correctional facilities. Funding recommendations to implement the provisions of this section shall be developed by the [higher education department] division or the public education department as appropriate in the same manner that funding recommendations for similar programs at other institutions are calculated."

     SECTION 17. Section 21-1-26.3 NMSA 1978 (being Laws 1986, Chapter 24, Section 3, as amended) is amended to read:

     "21-1-26.3. VERIFICATION FUNCTION.--The higher education division of the department of finance and administration shall annually conduct special verifications of the institutions of higher education. The verifications shall include enrollments, fund balances, compliance with legislation, comparison of expenditures to budgets and other areas to be determined by the [department] division. Reports on the verifications shall be made annually to the department of finance and administration and the legislative finance committee. The [department] division shall consider the verification findings in making its annual recommendations to the executive and legislature for higher education funding."

     SECTION 18. Section 21-1-26.7 NMSA 1978 (being Laws 1990 (1st S.S.), Chapter 4, Section 2, as amended) is amended to read:

     "21-1-26.7. ANNUAL ACCOUNTABILITY REPORT.--

          A. The higher education division of the department of finance and administration shall submit an annual accountability report to the governor and to the legislature by December 31. Prior to publication, the [department] division shall distribute a draft of the accountability report to all public post-secondary educational institutions and shall allow comment upon the draft report.

          B. The [department] division in consultation with each public post-secondary educational institution shall develop and adopt the content and a format for the report, including the following information:

                (1) student progress and success;

                (2) student access and diversity;

                (3) affordability and cost of educational services;

                (4) public and community service by the institution; and

                (5) faculty, compensation and benefits practices, including:

                     (a) number and percentage of part-time and full-time faculty;

                     (b) per-credit-hour pay rate for full-time instructors or lecturers and per-credit-hour pay rate for part-time faculty;

                     (c) percent salary increase for full-time faculty and percent salary increase for part-time faculty; and

                     (d) description of the institution's policy for offering benefits to full-time faculty and to part-time faculty.

          C. The [department] division shall make no funding recommendation, capital outlay recommendation, distribution or certification on behalf of any public post-secondary educational institution that has not submitted the information required pursuant to this section."

     SECTION 19. Section 21-1-26.10 NMSA 1978 (being Laws 1999 (1st S.S.), Chapter 6, Section 18, as amended) is amended to read:

     "21-1-26.10. HIGHER EDUCATION [DEPARTMENT] DIVISION--PLAN FOR FUNDING SIGNIFICANT POST-SECONDARY EDUCATIONAL INFRASTRUCTURE NEEDS.--The higher education division of the department of finance and administration, in conjunction with the governing bodies of the post-secondary educational institutions and other state educational institutions confirmed in Article 12, Section 11 of the constitution of New Mexico, shall develop and approve a five-year plan for funding the infrastructure renovation and expansion projects designated by the [department] division as the highest priority of significant needs. The [department] division shall determine the projects and amounts to be funded, with a timetable for the projects and amounts to be funded each year over the five-year period, subject to review and comment by the educational institutions and subject to appropriations."

     SECTION 20. Section 21-1-26.11 NMSA 1978 (being Laws 2003, Chapter 394, Section 1, as amended) is amended to read:

     "21-1-26.11. HIGHER EDUCATION [DEPARTMENT] DIVISION--ADDITIONAL DUTIES.--In addition to the duties imposed upon the higher education division of the department of finance and administration by the Post-Secondary Educational Planning Act, the [department] division shall plan and budget for the statewide adult basic education program and shall adopt and promulgate rules for all such adult educational programs. The [department] division shall establish a uniform protocol for identifying, communicating with and providing direct and equitable access to funding for eligible agencies, which include:

          A. local educational agencies;

          B. community-based organizations;

          C. volunteer literacy organizations;

          D. post-secondary institutions;

          E. public or private nonprofit agencies;

          F. public libraries;

          G. public housing authorities; and

          H. a consortium of agencies, organizations, institutions, libraries or authorities as described in Section 203 of Public Law 105."

     SECTION 21. Section 21-1-26.12 NMSA 1978 (being Laws 2005, Chapter 289, Section 14) is amended to read:

     "21-1-26.12. EDUCATIONAL NEEDS AND GUIDELINES--ACCOUNTABILITY REPORTS.--

          A. The higher education division of the department of finance and administration shall, through consultation with all public post-secondary educational institutions, develop and publish a statement of statewide educational needs and guidelines to assist the institutions in the development or modification of institutional strategic plans. The [department] division may conduct studies of statewide educational needs and make recommendations to the governor, the legislature and public post-secondary educational institutions.

          B. All public post-secondary educational institutions, including off-campus instruction programs and learning centers, shall:

                (1) approve and submit accountability reports prepared in accordance with the statewide public agenda; and

                (2) submit budgets for review no later than August 1 each year for the following fiscal year."

     SECTION 22. Section 21-1-27 NMSA 1978 (being Laws 1965, Chapter 267, Section 1, as amended) is amended to read:

     "21-1-27. HIGHER EDUCATION [DEPARTMENT] DIVISION--DISTRIBUTION OF AVAILABLE FUNDS.--In its distribution of available funds and its adjustment and approval of budgets, the higher education division of the department of finance and administration shall not, in any event or in any manner, substitute for public funds any gift, donation, private endowment, patent income or other gratuity received or enjoyed by an institution in determining the adequate financing of an institution under its charge."

     SECTION 23. Section 21-1-27.1 NMSA 1978 (being Laws 2002, Chapter 31, Section 1, as amended) is amended to read:

     "21-1-27.1. HIGHER EDUCATION ENDOWMENT FUND CREATED.--

          A. The "higher education endowment fund" is created in the state treasury. The fund shall consist of appropriations, income from investment of the fund, gifts, grants, donations and bequests.

          B. The higher education endowment fund shall be administered by the higher education division of the department of finance and administration. Money shall be disbursed only on warrant of the secretary of finance and administration upon voucher signed by the [secretary] director of [higher education] the division or the [secretary's] director's authorized representative.

          C. Money shall be disbursed from the higher education endowment fund only to establish endowments at public post-secondary educational institutions as provided in this section. An institution shall not receive a disbursement for an endowment until that institution has notified the [department] division that it has received matching funds for the endowment from other than governmental sources in the amount specified in this section.

          D. Money in the higher education endowment fund is appropriated to the [department] division to be disbursed for endowment purposes, including endowed chairs, lectureships, professorships, scholarships for students, graduate assistantships and faculty development programs that will enhance the quality of public post-secondary education in New Mexico. The [department] division, by rule, shall establish procedures for disbursing money from the fund. Not less than five percent of each institution's total endowment effort resulting from amounts specified in this section shall address one or more of the governor's higher education initiatives.

          E. Appropriations to the higher education endowment fund shall be disbursed to public post-secondary educational institutions based on the following distribution proportions and matching requirements:

                (1) the university of New Mexico shall be entitled to draw eighteen percent of each appropriation and New Mexico state university and the New Mexico institute of mining and technology shall each be entitled to draw sixteen percent of each appropriation; provided that no disbursement shall be made pursuant to this paragraph until an institution has shown to the satisfaction of the [department] division that it has received matching funds in an amount equal to at least fifty percent of the disbursement;

                (2) the university of New Mexico health sciences center shall be entitled to draw twelve percent of each appropriation; provided that no disbursement shall be made pursuant to this paragraph until the center has shown to the satisfaction of the [department] division that it has received matching funds in an amount equal to at least fifty percent of the disbursement;

                (3) New Mexico highlands university, eastern New Mexico university, western New Mexico university and northern New Mexico college shall each draw an equal share of a total of eighteen percent of each appropriation; provided that no disbursement shall be made pursuant to this paragraph until an institution has shown to the satisfaction of the [department] division that it has received matching funds in an amount equal to at least forty percent of the disbursement; and

                (4) the New Mexico military institute, independent community colleges, branch community colleges and technical and vocational institutes may draw a share of a total of twenty percent of each appropriation using a distribution formula approved by the [higher education department] division; provided that no disbursement shall be made pursuant to this paragraph until an institution has shown to the satisfaction of the [department] division that it has received matching funds in an amount equal to at least thirty percent of the disbursement.

          F. Distributions from the higher education endowment fund are made over a three-year cycle with unmatched balances reverting to the general fund at the end of the third fiscal year. The [department] division shall notify each eligible institution of the specific amount it may match during the first two fiscal years of each three-year cycle. Allocations not matched during the first two years of each cycle are made available for supplemental or second round matching by other eligible public post-secondary educational institutions during the third fiscal year. Four-year public post-secondary educational institutions may apply for supplemental matches to amounts originally designated for other four-year institutions. Two-year public post-secondary educational institutions may apply for supplemental matches to amounts originally designated for other two-year institutions. Successful submissions for supplemental matches shall be determined by the [department] division in a manner that affords equitable participation over time based on guidelines for supplemental distributions from the fund.

          G. The endowment funds of the institutions shall not be expended but shall be invested by the institutions in accordance with the prudent investor rule and in accordance with the provisions of Section 21-1-38 NMSA 1978. The income from the investments shall be used by the institutions to provide funding for chairs, lectureships, professorships, scholarships for students, graduate assistantships and faculty development programs, including paying all or a portion of the salary of the faculty member or the expenses necessary to support associated academic activities.

          H. The [department] division shall report annually to the legislative finance committee on disbursements made pursuant to this section. The report shall include the amounts disbursed to each institution, the amount of matching funds and their source and the purpose of the endowments."

     SECTION 24. Section 21-1-27.2 NMSA 1978 (being Laws 2003, Chapter 367, Section 1) is amended to read:

     "21-1-27.2. TECHNOLOGY ENHANCEMENT FUND CREATED--ALLOCATIONS--APPLICATION REVIEW PANELS.--

          A. The "technology enhancement fund" is created in the state treasury. The fund shall consist of appropriations, income from investment of the fund, gifts, grants, donations and bequests. Money in the fund shall not revert at the end of any fiscal year. The fund shall be administered by the [commission on] higher education division of the department of finance and administration. Money in the fund shall be used to provide matching funds to state research universities to support innovative applied research that advances knowledge and creates new products and production processes in the fields of agriculture, biotechnology, biomedicine energy, materials science, microelectronics, water resources, aerospace, telecommunications, manufacturing science and similar research areas. Money from the fund shall be expended on warrants of the secretary of finance and administration upon vouchers signed by the [executive] director of the [commission on higher education] division or the [executive] director's authorized representative.

          B. Grants from the fund are available to state research universities that are conducting collaborative research with corporate and nonprofit organizations. A state research university may apply for a grant from the fund in accordance with rules promulgated by the [commission on higher education] division. Allocations from the fund shall be based on a competitive process with applications reviewed by a panel of scientific and business experts established by the [commission] division. The review panel shall judge proposals based on excellence in research design and possible innovation in cross-disciplinary, multi-campus and higher education-industry research collaboration. The review panel may determine new research areas.

          C. To apply for a grant, a state research university must have equal or greater matching funds for the proposal from sources other than the state."

     SECTION 25. Section 21-1-27.3 NMSA 1978 (being Laws 2003, Chapter 388, Section 1) is amended to read:

     "21-1-27.3. HIGHER EDUCATION PERFORMANCE FUND--CREATED--ADMINISTRATION--DISTRIBUTIONS.--

          A. The "higher education performance fund" is created in the state treasury. The fund consists of appropriations, gifts, grants, donations and income from investment of the fund. Money in the fund shall not revert to any other fund. The fund shall be administered by the [commission on] higher education division of the department of finance and administration, and money in the fund is appropriated to the [commission] division for distributions to public post-secondary educational institutions.

          B. The [commission] division shall distribute money in the fund annually to each public post-secondary educational institution that met its performance standards in the preceding year.

           C. The [commission] division shall develop rules for the assessment of performance measures and standards for public post-secondary educational institutions and shall annually assess the performance of each institution according to those measures and standards."

     SECTION 26. Section 21-1-27.4 NMSA 1978 (being Laws 2003, Chapter 389, Section 1) is amended to read:

     "21-1-27.4. HIGHER EDUCATION PROGRAM DEVELOPMENT ENHANCEMENT FUND--PURPOSE.--

          A. The "higher education program development enhancement fund" is created in the state treasury. All income earned on investment of the fund shall be credited to the fund and money in the fund shall not revert to any other fund at the end of a fiscal year. The fund shall be administered by the [commission on] higher education division of the department of finance and administration and money in the fund is appropriated to the [commission] division to carry out the purposes of this section. Disbursements from the fund shall be by warrant drawn by the secretary of finance and administration pursuant to vouchers signed by the [executive] director of the [commission on higher education] division or [his] the director's authorized representative.

          B. The higher education program development enhancement fund shall be used to enhance the contribution of post-secondary educational institutions to the resolution of critical state issues and the advancement of the welfare of state citizens.

          C. At the beginning of each fiscal year in which the [commission] division determines that the balance of the fund is sufficient to make awards, the [commission] division shall define or reaffirm no more than four critical issues to be addressed through awards from the fund. Issues to be addressed may include:

                (1) expanding instructional programs to meet critical statewide work force and professional training needs;

                (2) enhancing instructional programs that provide employment opportunity for New Mexico students in a global economy; and

                (3) developing mission-specific instructional programs that build on existing institutional academic strengths.

          D. The [commission] division shall establish criteria and procedures for making awards from the fund based on evaluation of competitive proposals submitted by post-secondary educational institutions. Each winning proposal shall address at least one of the critical issues defined for use of the fund that year. Criteria may include:

                (1) collaboration among educational agencies and other public or private entities that demonstrate a competency regarding the issues addressed by the proposal;

                (2) the commitment of matching money; and

                (3) evaluation components.

          E. The [commission] division shall report annually to the legislature and the governor on the status of the fund and projects supported by the fund."

     SECTION 27. Section 21-1-27.5 NMSA 1978 (being Laws 1995, Chapter 56, Section 1, as amended) is amended to read:

     "21-1-27.5. ADULT BASIC EDUCATION FUND CREATED.--The "adult basic education fund" is created in the state treasury. Money in the fund is appropriated to the [commission on] higher education division of the department of finance and administration for the purpose of funding adult basic education programs for educationally disadvantaged adults. Money in the fund shall be distributed by the [commission] division pursuant to an equitable formula established by the [commission] division in consultation with representatives from the adult basic education administrative sites. Any unexpended or unencumbered balance remaining in the fund at the end of each fiscal year shall revert to the general fund."

     SECTION 28. Section 21-1-27.6 NMSA 1978 (being Laws 1995, Chapter 56, Section 2, as amended) is amended to read:

     "21-1-27.6. ADULT BASIC EDUCATION--DISTRIBUTION OF MONEY--OBJECTIVE FORMULA--HIGHER EDUCATION [DEPARTMENT] DIVISION--ADOPTION OF FORMULA.--The higher education division of the department of finance and administration in consultation with representatives of adult basic education administrative sites shall create an equitable formula for the distribution of money in the adult basic education fund, including funding for instructional materials for adult basic education students. In establishing an equitable formula, the [department] division shall consider the types of programs conducted, the cost of service delivery, the types and cost of instructional materials and the socioeconomic profiles of the adult receiving services. The [department] division shall review the formula and any proposed changes with the adult basic education administrative sites prior to adoption or amendment."

     SECTION 29. Section 21-1-27.7 NMSA 1978 (being Laws 2005, Chapter 136, Section 1) is amended to read:

     "21-1-27.7. FUND CREATED.--There is created in the [commission on higher education] state treasury the "nurse educators fund". The state treasurer shall deposit in the fund all amounts appropriated to the fund. The fund shall be administered by the [commission on] higher education division of the department of finance and administration, which shall charge not more than a five percent administrative fee. 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]. The purpose of the fund is to enhance the ability of college- and university-employed nursing educators to obtain bachelor of science, master of science and doctor of philosophy degrees. The [commission on higher education] division shall develop rules for continuing employment or pay-back provisions for nursing educators who use the fund."

     SECTION 30. Section 21-1-27.9 NMSA 1978 (being Laws 2009, Chapter 281, Section 1) is amended to read:

     "21-1-27.9. ALTERNATIVE ENERGY AND ENERGY EFFICIENCY PROGRAMS--FUND CREATED--AWARDS--CRITERIA.--

          A. The "higher education new energy development fund" is created in the state treasury. The fund shall consist of appropriations, gifts, grants, donations and bequests made to the fund and federal grants or distributions made to the fund or to the higher education division of the department of finance and administration for deposit into the fund. All income earned on investment of the fund shall be credited to the fund, and money in the fund shall not revert to any other fund at the end of a fiscal year. The fund shall be administered by the [higher education department] division, and money in the fund is appropriated to the [department] division to carry out the purposes of this section. Disbursements from the fund shall be by warrant drawn by the secretary of finance and administration pursuant to vouchers signed by the [secretary of higher education] director of the division or the [secretary's] director's authorized representative.

          B. The higher education new energy development fund shall be used to provide financial incentives to:

                (1) four-year public post-secondary educational institutions to develop research programs, courses of instruction and degree programs in the fields of alternative energy and energy efficiency; and

                (2) two-year public post-secondary educational institutions to provide alternative energy and energy efficiency programs and courses of instruction for students seeking licensure or certification as electricians, plumbers, mechanics, welders and heating, ventilation and air conditioning personnel or similar professions.

          C. The [higher education department] division shall, by rule, establish criteria and procedures for making awards from the fund based on evaluation of competitive proposals submitted by public post-secondary educational institutions. The criteria shall include:

                (1) a requirement that the application demonstrate how the award will be used to establish permanent educational programs in the fields of alternative energy and energy efficiency;

                (2) a requirement that the application demonstrate how local resources will be [utilized] used, including how the institution will cooperate with local employers with a potential need for interns or graduates;

                (3) the commitment of matching money; and

                (4) such other evaluation components as the [department] division deems useful.

          D. No more than an amount equal to five percent of the total awards made during a fiscal year shall be expended from the fund in that fiscal year for administrative costs, including project management, auditing and other oversight functions.

          E. The [higher education department] division shall report annually to the legislature and the governor on the status of the fund and programs supported by the fund."

     SECTION 31. Section 21-1-33 NMSA 1978 (being Laws 1974, Chapter 30, Section 2, as amended) is amended to read:

     "21-1-33. SYSTEM OF ACCOUNTING AND REPORTING--MANUAL.--

          A. The higher education division of the department of finance and administration, in consultation with the state auditor, shall compile a manual prescribing a uniform classification of accounts and a uniform system for budgeting and reporting that includes the reporting of all funds available. The manual shall apply to all institutions enumerated in Article 12, Section 11 of the constitution of New Mexico and all their branches, except the New Mexico school for the blind and visually impaired and the New Mexico school for the deaf. The manual shall also apply to the two-year public post-secondary educational institutions.

          B. The uniform system for budgeting and reporting shall require the submission of at least quarterly financial reports.

          C. Following review by the legislative finance committee, the manual shall be reproduced by the [department] division and filed as required by the State Rules Act. Upon the filing, the requirements set forth in the manual shall constitute rules of the [department] division and have the force of law. The [department] division shall review the manual annually. Sections of the manual may be revised or amended from time to time by the [department] division, and revisions or amendments shall become effective upon review by the legislative finance committee and reproduction and filing as provided in this section.

          D. All institutions to which this section and Section 21-1-32 NMSA 1978 apply shall comply with all of the requirements in the manual, submit reports to the [department] division as requested and furnish such additional information as the [department] division deems necessary."

     SECTION 32. Section 21-1-34 NMSA 1978 (being Laws 1977, Chapter 330, Section 1, as amended) is amended to read:

     "21-1-34. EDUCATIONAL TELEVISION EQUIPMENT REPLACEMENT FUND--DISBURSEMENT.--The "educational television equipment replacement fund" is created. The higher education division of the department of finance and administration shall develop criteria and promulgate rules for the disbursement of money in this fund for the replacement of equipment at educational television stations operated by institutions of higher education. Disbursement shall be made to the institutions by warrant of the department of finance and administration upon vouchers signed by the [secretary of higher education] director of the division or the director's authorized representative. It is the intent of the legislature that in subsequent years a specific line item for educational television replacement shall be included in the appropriations recommended for educational television by the [department] division. The appropriation to the fund in the General Appropriation Act of 1982 shall not revert to the general fund at the end of any fiscal year, and no subsequent appropriation to the fund shall revert unless it contains the sentence "The appropriation to the educational television equipment replacement fund shall revert."."

     SECTION 33. Section 21-1-44 NMSA 1978 (being Laws 2010, Chapter 65, Section 1) is amended to read:

     "21-1-44. SCHOOL LEADERSHIP INSTITUTE--CREATED--PURPOSE.--

          A. The "school leadership institute" is created and is administratively attached to the higher education division of the department of finance and administration. The [department] division shall provide administrative services for the institute. The institute shall provide a comprehensive and cohesive framework for preparing, mentoring and providing professional development for principals and other public school leaders.

          B. The institute shall offer at least the following programs:

                (1) licensure preparation for aspiring principals;

                (2) mentoring for new principals and other public school leaders;

                (3) intensive support for principals at schools in need of improvement;

                (4) professional development for aspiring superintendents; and

                (5) mentoring for new superintendents.

          C. The institute shall partner with state agencies, institutions of higher education and professional associations to identify and recruit candidates for the institute."

     SECTION 34. Section 21-2-3 NMSA 1978 (being Laws 1973, Chapter 233, Section 3, as amended) is amended to read:

     "21-2-3. STATE COMMISSION CREATED--DESIGNATED MEMBERS--DESIGNATION OF SUPPLEMENTARY MEMBERS FOR SPECIFIC FUNCTIONS.--There is created the "state commission on post-secondary education". The [commission on] higher education division of the department of finance and administration is designated the state commission. For the purposes of the Post-Secondary Educational Planning Act, the [commission on higher education] division, in functioning as the state commission, is charged with a concern for all types of post-secondary education and all types of educational institutions and programs as enumerated in Section 21-2-2 NMSA 1978. Whenever federal statutes and regulations so require, the state commission may request the governor to appoint, for specific functions relating to federally sponsored programs, supplementary members to the state commission, and members shall be appointed by the governor to fulfill those specific functions as requested. [When sitting with the state commission] The supplementary members shall have, for purposes of the specific functions for which they were appointed, all the powers and perquisites of regular members of the state commission."

     SECTION 35. Section 21-2-5.1 NMSA 1978 (being Laws 1988, Chapter 164, Section 1, as amended) is amended to read:

     "21-2-5.1. FUNDING FORMULA.--

          A. The [commission on] higher education division of the department of finance and administration shall develop a funding formula that will provide funding for each institution of higher education to accomplish its mission as determined by a statewide plan.

          B. The [commission on higher education] division may include factors in the funding formula, which when implemented will achieve the following:

                (1) improve the quality of programs central to each institution's mission;

                (2) develop and enhance programs that meet targeted post-secondary educational needs and the related needs of public schools;

                (3) eliminate unnecessary, unproductive or duplicative programs;

                (4) consider faculty salaries and benefits adjustment to a competitive level with similar institutions in similar states, when such compensation adjustments are supported by detailed analyses of faculty workloads and educational outcomes assessments, and nonteaching staff salaries and benefits at a competitive level with other similar public or private sector employment in the community in which the institution is situated;

                (5) recognize additional costs incurred through increases in enrollment;

                (6) provide for equipment and equipment maintenance and library acquisitions and operations since the development of the prior funding formula;

                (7) fund off-campus courses and other nontraditional course delivery systems at a level sufficient to allow their development;

                (8) provide incentives to institutions to pursue private or alternative funding sources;

                (9) encourage the sharing of expertise, equipment and facilities and development of joint instructional programs, research and public service projects;

                (10) implement uniform articulation agreements and facilitation of transfer of students between institutions;

                (11) encourage energy conservation;

                (12) require mechanisms to track expenditures to ensure greater accountability; and

                (13) require each institution of higher education that offers distance learning and computer-based courses of study to provide accompanying electronic formats that are usable by an individual with a disability using assistive technology, and those formats shall be based on the American standard code for information interchange, hypertext markup language and extensible markup language."

     SECTION 36. Section 21-2A-12 NMSA 1978 (being Laws 1995, Chapter 224, Section 18) is amended to read:

     "21-2A-12. EXTENDED LEARNING FUND CREATED--DISTRIBUTION OF FUND.--The "extended learning fund" is created in the state treasury. Money in the fund is appropriated to the [commission on] higher education division of the department of finance and administration for the purpose of making awards to public schools and public post-secondary institutions for the purpose of developing and operating extended learning programs throughout the state. The [commission] division shall establish by [regulation] rule a procedure for application and award of money in the fund. Disbursements of the fund shall be made by warrant of the department of finance and administration pursuant to vouchers signed by the [executive] director of the [commission on higher education] division or the director's authorized representative. Any unexpended or unencumbered balances remaining in the fund at the end of any fiscal year shall not revert but shall remain to the credit of the fund."

     SECTION 37. Section 21-12-15 NMSA 1978 (being Laws 2005, Chapter 161, Section 1) is amended to read:

     "21-12-15. NEW MEXICO MILITARY INSTITUTE--TRANSFER OF BUDGET BALANCES.--With the approval of the [commission on] higher education division of the department of finance and administration, the board of regents of New Mexico military institute may, each fiscal year, transfer up to five hundred thousand dollars ($500,000) of the institute's budget balances to the legislative scholarship fund established to implement the General Richard T. Knowles legislative scholarship program."

     SECTION 38. Section 21-13-11 NMSA 1978 (being Laws 1963, Chapter 17, Section 10, as amended) is amended to read:

     "21-13-11. STANDARDS AND ACCREDITING OF COMMUNITY COLLEGES.--

          A. The community college board shall prescribe the course of study for the community college and shall define, in conjunction with the higher education division of the department of finance and administration, official standards of excellence in all matters relating to the administration, course of study and quality of instruction, except that the prescribed standards may not be less in quality or quantity than those prescribed for other state institutions of higher learning by the regional accrediting agency that accredits other colleges and universities of the state.

          B. The [department] division shall annually inspect, or investigate through the requirement of reports prescribed by the [department] division, each community college. The inspection or investigation by report shall be conducted upon the facilities and program of each community college to determine the extent of compliance with the rules promulgated by the [department] division. A report of each inspection or final investigation by report shall be made to the [department] division.

          C. In the event of any serious deviation from established practices and procedures or any deficiencies that impair the quality of the instructional program in any community college, the [department] division shall first call these to the attention of the president of the community college and the community college board.

          D. In the case of repeated failure to meet the standards provided for in Subsection A of this section, the [department] division may take action discontinuing the approval of any community college so delinquent. Upon a showing that the unsatisfactory conditions have been remedied, the [department] division may reinstate its approval of a disapproved community college."

     SECTION 39. Section 21-13A-3 NMSA 1978 (being Laws 2003, Chapter 30, Section 3) is amended to read:

     "21-13A-3. DEFINITIONS.--As used in the Workforce Training Act:

          A. "commission" means the [commission on higher education] division;

          B. "community college" means a public post-secondary educational institution located in New Mexico offering technical or vocational training or two-year degrees;

          C. "customized training" means vocational or technical training:

                (1) offered by a community college;

                (2) that provides specialized employee training for a particular business or industry;

                (3) for which a student who successfully completes the training does not receive college credit; and

                (4) that enhances workforce development in the state;

          D. "department" or "division" means the higher education division of the department of finance and administration;

          [D.] E. "tier-2 undergraduate funding level" means tier 2 of the higher education funding formula developed by the commission; and

          [E.] F. "workforce training program" means the program created by the Workforce Training Act to provide customized training at community colleges in New Mexico."

     SECTION 40. Section 21-13A-6 NMSA 1978 (being Laws 2003, Chapter 368, Section 1) is amended to read:

     "21-13A-6. WORK FORCE SKILLS DEVELOPMENT FUND CREATED--ALLOCATIONS--APPLICATION REVIEW PANELS.--

          A. The "work force skills development fund" is created in the state treasury. The fund shall consist of appropriations, income from investment of the fund, gifts, grants, donations and bequests. Money in the fund shall not revert at the end of any fiscal year. The fund shall be administered by the [commission on higher education] division and money in the fund is appropriated to the [commission] division to provide matching funds to community colleges for the development, expansion and support of broad-based entry-level high-skills training programs. Money from the fund shall be expended on warrants of the secretary of finance and administration upon vouchers signed by the [executive] director of the [commission on higher education] division or [his] the director's authorized representative.

          B. Individual community colleges or a consortium of community colleges may apply for matching grants from the work force skills development fund in accordance with rules promulgated by the [commission on higher education] division. Allocations from the fund shall be based on a competitive process with applications reviewed by a panel of education, business and labor experts established by the [commission] division. To apply for a grant, a community college or consortium must have equal or greater matching funds for the proposal from sources other than the state."

     SECTION 41. Section 21-16A-3 NMSA 1978 (being Laws 2000, Chapter 105, Section 3) is amended to read:

     "21-16A-3. DEFINITIONS.--As used in the Learning Center Act:

          A. "board" means a learning center district board;

          B. "commission" means the [commission on higher education] division;

          C. "community college board" means the governing body of a community college district;

          D. "department" or "division" means the higher education division of the department of finance and administration;

          [D.] E. "district" means a learning center district;

          [E.] F. "extended learning services" means academic and vocational educational programs offered by an institution away from a campus of the institution without the facility of a learning center and as defined by [commission] division rule consistent with the Learning Center Act;

          [F.] G. "institution" means a regionally accredited public or private post-secondary educational institution;

          [G.] H. "local school board" means the governing body of a school district; and

          [H.] I. "taxable value of property" means the sum of the following:

                (1)  the "net taxable value", as that term is defined in the Property Tax Code, of property subject to taxation under the Property Tax Code;

                (2) the "assessed value" of "products" as those terms are defined in the Oil and Gas Ad Valorem Production Tax Act;

                (3) the "assessed value" of "equipment" as those terms are defined in the Oil and Gas Production Equipment Ad Valorem Tax Act; and

                (4) the "taxable value" of "copper mineral property" as those terms are defined in the Copper Production Ad Valorem Tax Act."

     SECTION 42. Section 21-21-2 NMSA 1978 (being Laws 1970, Chapter 82, Section 2, as amended) is amended to read:

     "21-21-2. DEFINITIONS.--As used in the Student Loan Act:

          A. "participating institution" means any post-high school educational institution within the state, public or private, including junior colleges and vocational schools, [which] that qualifies as an eligible institution for the federal guaranteed loan program under the Higher Education Act of 1965, as amended, and that is participating in student loan programs under the Student Loan Act, or any educational institution not within the state attended by a qualified student for the purpose of participating in the student exchange programs administered by the western interstate commission for higher education as provided for by the Compact for Western Regional Cooperation in Higher Education [Compact];

          B. "qualified student" means a resident of New Mexico who has been accepted for enrollment or who is enrolled in a participating institution and who is otherwise eligible for a student loan guaranteed by the United States. A standard of academic performance higher than the minimum required for continuing enrollment in the participating institution shall not be required, and the student [must] shall be meeting the minimum academic requirements of the participating institution at the time any loan is made; and

          C. "fiscal agent" means the chief financial officer of one of the state higher educational institutions designated by the [board of educational finance] higher education division of the department of finance and administration."

     SECTION 43. Section 21-21-3 NMSA 1978 (being Laws 1970, Chapter 82, Section 3, as amended) is amended to read:

     "21-21-3. STUDENT LOAN FUND--LOAN AUTHORITY.--There is created in the state treasury the "student loan fund". The state treasurer may use the student loan fund to:

          A. purchase, from the fiscal agent, loans guaranteed by the United States made to qualified students at participating institutions; and

          B. purchase from lending agencies located in New Mexico student loan notes guaranteed by the United States made to qualified students who at the time of the loan were attending participating institutions and who are currently attending participating institutions and who are also borrowers from the student loan fund. The fiscal agent and the [state board of educational finance] higher education division of the department of finance and administration shall approve the purchase of student loan notes. The purchased student loan notes shall be delivered to the state treasurer as collateral for the student loan fund."

     SECTION 44. Section 21-21-16 NMSA 1978 (being Laws 1978, Chapter 110, Section 3) is amended to read:

     "21-21-16. DEFINITIONS.--As used in the Student Loan Guarantee Act:

          A. "board", "department" or "division" means the [board of educational finance] higher education division of the department of finance and administration;

          B. "eligible student" means a resident of New Mexico who has been accepted for enrollment or who is enrolled in a participating institution and who is otherwise eligible for a student loan guaranteed under the Student Loan Guarantee Act. A standard of academic performance higher than the minimum required for continuing enrollment in the participating institution shall not be required, and the student [must] shall be meeting the minimum academic requirements of the

participating institution at the time any loan is made;

          C. "fiscal agent" means the chief financial officer of one of the state higher educational institutions designated by the [board] division;

          D. "loans" means loans made by the fiscal agent to residents of this state under Title IV, Part B of the federal Higher Education Act of 1965, as amended;

          E. "participating institution" means any post-high school educational institution within or without the state, public or private, including junior colleges and vocational schools, [which] that qualifies as an eligible institution for the federal guaranteed loan program under the federal Higher Education Act of 1965, as amended, and [which] that is approved

by the [board] division for the purposes of the Student Loan Guarantee Act; and

         F. "resident" means a person who has established legal residency in New Mexico, as defined by the [board] division."

    SECTION 45. Section 21-21-18 NMSA 1978 (being Laws 1978, Chapter 110, Section 5, as amended) is amended to read:

    "21-21-18. FUND CREATED--METHOD OF PAYMENT.--

         A. The state treasurer shall create a suspense account in the state treasury to be known as the "student loan guarantee fund" for the purpose of insuring student loans held by the fiscal agent. The student loan guarantee fund shall be held in trust and invested by the state treasurer in accordance with law.

         B. There may be deposited in the student loan guarantee fund:

             (1) receipts from the federal government under the federal Higher Education Act of 1965, as amended;

             (2) receipts under the Student Loan Guarantee Act from any other source, except interest earned from investment of the student loan guarantee fund, which shall be credited to the general fund, when the receipts may be lawfully used for the purpose of insuring student loans held by the fiscal agent; and

             (3) insurance fees charged by the [commission on higher education] division.

         C. Disbursements from the student loan guarantee fund shall be made upon vouchers signed by the [executive] director of the [commission on higher education] division or the director's authorized representative."

    SECTION 46. Section 21-21-25 NMSA 1978 (being Laws 1978, Chapter 110, Section 12) is amended to read:

    "21-21-25. COLLECTION OF STUDENT LOANS--CONTRACTS AUTHORIZED.--The [board of educational finance] higher education division of the department of finance and administration may contract with one or more attorneys or law firms or with any other private business concern to assist the [board] division in collecting any defaulted loan made pursuant to the Student Loan Act or the Student Loan Guarantee Act. No contract shall be entered into pursuant to this section unless proposals have been sought from two or more qualified firms."

    SECTION 47. Section 21-21B-2 NMSA 1978 (being Laws 1982, Chapter 88, Section 2, as amended) is amended to read:

    "21-21B-2. DEFINITIONS.--As used in the Work-Study Act:

         A. "board", [or] "commission", [or] "department" or "division" means the higher education division of the department of finance and administration; and

         B. "institution" means any state post-secondary educational institution and any private nonprofit post-secondary educational institution within New Mexico."

    SECTION 48. Section 21-21C-3 NMSA 1978 (being Laws 1983, Chapter 240, Section 3) is amended to read:

    "21-21C-3. DEFINITIONS.--As used in the Student Choice Act:

         A. "board" or "division" means the [board of educational finance] higher education division of the department of finance and administration;

         B. "institution" means any independent nonprofit nonsectarian four-year college or university whose New Mexico campus is accredited by the north central accrediting association;

         C. "independent" as used with respect to an institution means any institution [which] that is not a state institution; and

         D. "student choice grant" means a grant awarded to a student by the [board] division pursuant to the provisions of the Student Choice Act."

    SECTION 49. Section 21-21D-3 NMSA 1978 (being Laws 1984, Chapter 96, Section 3) is amended to read:

    "21-21D-3. DEFINITIONS.--As used in the Senior Citizens Reduced Tuition Act:

         A. "board" or "division" means the [board of educational finance] higher education division of the department of finance and administration;

         B. "eligible institution" means any New Mexico post-secondary degree-granting educational institution;

         C. "reduced tuition" means that tuition charged senior citizens at the rate of five dollars ($5.00) per credit hour, up to six hours per semester; and

         D. "senior citizen" means a person age sixty-five or older."

    SECTION 50. Section 21-21F-3 NMSA 1978 (being Laws 1986, Chapter 50, Section 3) is amended to read:

    "21-21F-3. DEFINITIONS.--As used in the Fire Fighter and Peace Officer Survivors Scholarship Act:

         A. "board" or "division" means the [board of educational finance] higher education division of the department of finance and administration;

         B. "eligible institution" means any state institution of higher education in New Mexico;

         C. "fire fighter" means any member of a fire department that is part of or administered by the state or any political subdivision of the state;

         D. "peace officer" means any member of a police or sheriff's department that is part of or administered by the state or any political subdivision of the state and officers in the corrections department [of corrections]; and

         E. "survivor" means the spouse of the fire fighter or peace officer killed in the line of duty and any adopted or natural children twenty-one years of age or under at the time of [his] the fire fighter's or peace officer's death."

    SECTION 51. Section 21-21G-3 NMSA 1978 (being Laws 1988, Chapter 111, Section 3, as amended) is amended to read:

    "21-21G-3. DEFINITIONS.--As used in the Graduate Scholarship Act:

         A. "academic year" means any consecutive period of two semesters, three quarters or other comparable units commencing with the fall term each year;

         B. "award recipient" means a student awarded a graduate scholarship;

         C. "department" or "division" means the higher education division of the department of finance and administration;

         D. "eligible institution" means any

graduate-degree-granting state university accredited by the north central association of colleges and secondary schools;

         E. "graduate and professional field" means any program of study intended to result in a master's or doctoral degree, excluding [the] a degree in medicine; and

         F. "groups underrepresented in graduate education" means women, minorities, persons with a visual impairment or other physical disability and other groups [who] that have traditionally been underrepresented in the specific area of graduate study or profession for which the scholarship is awarded."

    SECTION 52. Section 21-21H-3 NMSA 1978 (being Laws 1989, Chapter 212, Section 3) is amended to read:

    "21-21H-3. DEFINITIONS.--As used in the New Mexico Scholars Act:

         A. "academic year" means any consecutive period of two semesters, three quarters or other comparable units commencing with the fall term each year;

         B. "award recipient" means a student awarded a New Mexico Scholars Act scholarship;

         C. "commission" or "division" means the [commission on] higher education division of the department of finance and administration;

         D. "eligible institution" means any degree-granting educational institution in New Mexico accredited by the north central association of colleges and secondary schools;

         E. "satisfactory academic progress" means completion of at least twenty-four credit hours per year and maintenance of a cumulative grade point average of a minimum of 3.0 or higher on a scale of 4.0; and

         F. "scholarship" means a scholarship awarded pursuant to the New Mexico Scholars Act."

    SECTION 53. Section 21-21I-3 NMSA 1978 (being Laws 1990 (1st S.S.), Chapter 8, Section 3, as amended) is amended to read:

    "21-21I-3. DEFINITIONS.--As used in the Minority Doctoral Assistance Loan for Service Program Act:

         A. "academic committee" means a committee at a sponsoring institution appointed by the president of the institution and composed of two faculty members, two academic administrators and one central administrator;

         B. "commission" or "division" means the [commission on] higher education division of the department of finance and administration;

         C. "eligible institution" means a [commission-approved] division-approved institution of higher education that offers a doctoral degree-granting program in the fields of engineering, physical or life sciences, mathematics or other academic disciplines in which ethnic minorities and women are demonstrably underrepresented;

         D. "sponsoring institution" means a four-year public post-secondary educational institution located in New Mexico; and

         E. "student" means an individual who is an ethnic minority or a woman and who has been accepted for enrollment at an eligible institution to undertake a post-baccalaureate course of instruction in the field of engineering, physical or life sciences or mathematics."

    SECTION 54. Section 21-21J-3 NMSA 1978 (being Laws 1995, Chapter 35, Section 3) is amended to read:

    "21-21J-3. DEFINITIONS.--As used in the Legislative Endowment Scholarship Act:

         A. "commission" or "division" means the [commission on] higher education division of the department of finance and administration; and

         B. "student" means a resident of New Mexico who is enrolled or will be enrolled, at the time the scholarship is awarded, in a public post-secondary educational institution in New Mexico."

    SECTION 55. Section 21-21K-2 NMSA 1978 (being Laws 1997, Chapter 259, Section 2, as amended) is amended to read:

    "21-21K-2. DEFINITIONS.--As used in the Education Trust Act:

         A. "beneficiary" means a person who is entitled to receive benefits under a college investment agreement or a prepaid tuition contract;

         B. "board" means the education trust board;

         C. "commission" or "division" means the [commission on] higher education division of the department of finance and administration;

         D. "college investment agreement" means an agreement entered into by the board and an investor, pursuant to the provisions of the Education Trust Act, to defray the costs of attendance of a beneficiary at an institution of higher education;

         E. "council" means the state investment council;

         F. "fund" means the education trust fund;

         G. "institution of higher education" means a state public post-secondary educational institution as defined in Section 6-17-1.1 NMSA 1978, a branch college, an independent community college, a technical and vocational institute or, if approved by the board, another public or private post-secondary educational institution located in this state or any other state;

         H. "investor" means a person who has entered into a college investment agreement with the board;

         I. "prepaid tuition contract" means a contract entered into by the board and a purchaser, pursuant to the provisions of the Education Trust Act, to provide for the payment of higher education tuition and required fees of a beneficiary; and

         J. "purchaser" means a person who is obligated to make payments under a prepaid tuition contract."

    SECTION 56. Section 21-21L-3 NMSA 1978 (being Laws 2005, Chapter 192, Section 3, as amended by Laws 2007, Chapter 70, Section 2 and by Laws 2007, Chapter 71, Section 2 and also by Laws 2007, Chapter 85, Section 2) is amended to read:

    "21-21L-3. DEFINITIONS.--As used in the College Affordability Act:

         A. "commission", [or] "department" or "division" means the higher education division of the department of finance and administration;

         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

         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 57. Section 21-21M-3 NMSA 1978 (being Laws 2007, Chapter 75, Section 3 and Laws 2007, Chapter 76, Section 3) is amended to read:

    "21-21M-3. DEFINITIONS.--As used in the Students with Disabilities Scholarship Act:

         A. "award recipient" means a student with disabilities who receives an undergraduate scholarship;

         B. "department" or "division" means the higher education division of the department of finance and administration;

         C. "secretary" or "director" means [secretary of higher education] the director of the division; and

         D. "student with disabilities" means a student who has a record of a physical or mental condition that substantially limits one or more major life activities, including attention deficit disorder or other specific learning disabilities that the [department] division recognizes as disabilities."

    SECTION 58. Section 21-22-3 NMSA 1978 (being Laws 1975, Chapter 244, Section 3, as amended) is amended to read:

    "21-22-3. DEFINITIONS.--As used in the Medical Student Loan for Service Act:

         A. "commission" or "division" means the [commission on] higher education division of the department of finance and administration;

         B. "loan" means a grant of funds to defray the costs incidental to a medical education, under a contract between the [commission] division and a medical student, requiring either repayment with interest or repayment in services; and

         C. "student" means a resident of New Mexico who is a student enrolled in a school of medicine."

    SECTION 59. Section 21-22A-3 NMSA 1978 (being Laws 1978, Chapter 109, Section 3, as amended) is amended to read:

    "21-22A-3. DEFINITIONS.--As used in the Osteopathic Medical Student Loan for Service Act:

         A. "commission" or "division" means the [commission on] higher education division of the department of finance and administration;

         B. "loan" means a grant of funds to defray the costs incidental to an osteopathic medical education, under a contract between the [commission] division and an osteopathic medical student, requiring either repayment with interest or repayment in services;

         C. "osteopathic medical education" means the education required to be an osteopathic physician or osteopathic physician's assistant; and

         D. "student" means a resident of New Mexico who is a student enrolled in a school of osteopathic medicine or an osteopathic physician's assistant program."

    SECTION 60. Section 21-22B-3 NMSA 1978 (being Laws 1987, Chapter 299, Section 3, as amended) is amended to read:

    "21-22B-3. DEFINITIONS.--As used in the Nursing Student Loan for Service Act:

         A. "commission" or "division" means the [commission on] higher education division of the department of finance and administration;

         B. "loan" means a grant of funds to defray the costs incidental to a nursing education, under a contract between the [commission] division and a nursing student, requiring repayment with services or repayment with interest;

         C. "student" means a resident of New Mexico who is a student enrolled in a program of nursing; and

         D. "program of nursing" means a nursing education program in a New Mexico institution accredited by a member of the council on post-secondary accreditation or a nursing education program approved by the New Mexico board of nursing."

    SECTION 61. Section 21-22C-3 NMSA 1978 (being Laws 1994, Chapter 57, Section 5, as amended) is amended to read:

    "21-22C-3. DEFINITIONS.--As used in the Allied Health Student Loan for Service Act:

         A. "allied health profession" means physical therapy, occupational therapy, speech-language pathology, audiology, pharmacy, nutrition, respiratory care, laboratory technology, radiologic technology, dental hygiene, mental health services, emergency medical services or a licensed or certified health profession as defined by the [department] division;

         B. "department" or "division" means the higher education division of the department of finance and administration;

         C. "loan" means a grant of money to defray the costs incidental to an allied health profession education, under a contract between the [department] division and an allied health profession student, requiring repayment with services or repayment of principal and interest; and

         D. "student" means a resident of New Mexico who is enrolled in an accredited program for one of the allied health professions."

    SECTION 62. Section 21-22D-3 NMSA 1978 (being Laws 1995, Chapter 144, Section 18) is amended to read:

    "21-22D-3. DEFINITIONS.--As used in the Health Professional Loan Repayment Act:

         A. "commission" or "division" means the [commission on] higher education division of the department of finance and administration;

         B. "health professional" means a primary care physician, optometrist, podiatrist, [physician's] physician assistant, dentist, nurse, member of an allied health profession as defined in the Allied Health Student Loan for Service Act or a licensed or certified health professional as determined by the [commission] division; and

         C. "loan" means a grant of money to defray the costs incidental to a health education, under a contract between the federal government or a commercial lender and a health professional, requiring either repayment of principal and interest or repayment in services."

    SECTION 63. Section 21-22E-3 NMSA 1978 (being Laws 2001, Chapter 288, Section 3, as amended) is amended to read:

    "21-22E-3. DEFINITIONS.--As used in the Teacher Loan for Service Act:

         A. "commission" or "division" means the [commission on] higher education division of the department of finance and administration;

         B. "loan" means a payment of money under contract between the [commission] division and a student that defrays the costs incidental to a teacher preparation program offered in a regionally accredited post-secondary educational institution in New Mexico and that requires repayment in services;

         C. "student" means a United States citizen who is enrolled in or accepted by an undergraduate or graduate teacher preparation program at a regionally accredited post-secondary educational institution in New Mexico; and

         D. "teacher preparation program" means a program that has been formally approved as meeting the requirements of the public education department and that leads to initial licensure or to additional licensure endorsements, including a program in a two-year post-secondary educational institution that meets the requirements for a teacher education transfer module established pursuant to Subsection C of Section 21-1B-4 NMSA 1978."

    SECTION 64. Section 21-22F-3 NMSA 1978 (being Laws 2005, Chapter 83, Section 3, as amended) is amended to read:

    "21-22F-3. DEFINITIONS.--As used in the Public Service Law Loan Repayment Act:

         A. "committee" means the public service law advisory committee;

         B. "department", "commission" or "division" means the higher education division of the department of finance and administration;

         C. "legal education" means education at an accredited law school and any bar review preparation courses for the state bar examination;

         D. "loan" means money allocated to defray the costs incidental to a legal education under a contract between the federal government or a commercial lender and a law school student, requiring either repayment of principal and interest or repayment in services;

         E. "participating attorney" means an attorney who receives a loan repayment award from the [department] division pursuant to the provisions of the Public Service Law Loan Repayment Act; and

         F. "public service employment" means employment with:

             (1) an organization that is exempt from taxation pursuant to Section 501(c)(3) of Title 26 of the United States Code and that provides for the care and maintenance of indigent persons in New Mexico through civil legal services;

             (2) the public defender department; or

             (3) a New Mexico district attorney's office."

    SECTION 65. Section 21-22G-2 NMSA 1978 (being Laws 2009, Chapter 225, Section 2) is amended to read:

    "21-22G-2. DEFINITIONS.--As used in the Conditional Tuition Waiver for Primary Care Medical Students Act:

         A. "course of study" means a medical student's medical education, including any residency program;

         B. "department" or "division" means the higher education division of the department of finance and administration;

         C. "fund" means the primary care physician conditional tuition waiver program fund;

         D. "participant" means an individual [that] who has applied to participate in, has been accepted into and has signed a contract agreeing to the terms of the program;

         E. "primary care physician" means a medical doctor with specialty training in family medicine, general internal medicine or general pediatrics;

         F. "program" means the primary care physician conditional tuition waiver program;

         G. "residency" means three years of specialty training in family medicine, general internal medicine or general pediatrics after medical school;

         H. "secretary" or "director" means the [secretary of higher education] director of the division;

         I. "underserved area" means a health care underserved area as defined in the Rural Primary Health Care Act;

         J. "university" means the university of New Mexico school of medicine; and

         K. "waiver" means a loan to cover tuition, fees and a stipend that is forgiven in whole or in part if the participant renders service as a primary care physician in an underserved area of the state pursuant to the provisions of the Conditional Tuition Waiver for Primary Care Medical Students Act."    SECTION 66. Section 21-23-3 NMSA 1978 (being Laws 1971, Chapter 303, Section 3, as amended) is amended to read:

    "21-23-3. DEFINITIONS.--As used in the Post-Secondary Educational Institution Act:

         A. "commission" or "division" means the [commission on] higher education division of the department of finance and administration;

         B. "career school" means a private post-secondary educational institution offering a formal educational curriculum in New Mexico for a fee to members of the general public beyond compulsory school age, terminating in a certificate, diploma, associate degree or comparable confirmation of completion of the curriculum;

         C. "college" or "university" means a private post-secondary educational institution offering a formal educational curriculum in New Mexico for a fee to members of the general public beyond compulsory school age, terminating in a baccalaureate, master's or doctoral degree or comparable confirmation of completion of the curriculum;

         D. "license" means a written acknowledgment by the [commission] division that a career school or nonregionally accredited college or university has met the requirements of the [commission] division for offering a formal educational curriculum within New Mexico;

         E. "post-secondary educational institution" includes an academic, vocational, technical, business, professional or other school, college or university or other organization or person offering or purporting to offer courses, instruction, training or education from a physical site in New Mexico, through distance education, correspondence or in person; and

         F. "registration" means a written acknowledgment by the [commission] division that a regionally accredited college or university has filed pertinent curriculum and enrollment information as required by the [commission] division."

    SECTION 67. Section 21-23-8 NMSA 1978 (being Laws 1975, Chapter 148, Section 8, as amended) is amended to read:

    "21-23-8. FUND CREATED.--There is created in the state treasury the "post-secondary educational institution fund". Money appropriated to [this] the fund or accruing to it through gifts, grants or bequests shall not be transferred to another fund or encumbered or disbursed in any manner except for the administration of the Post-Secondary Educational Institution Act or the Out-of-State Proprietary School Act. The fund shall not revert at the end of the fiscal year. Disbursements from the fund shall be made only upon warrant drawn by the secretary of finance and administration pursuant to vouchers signed by the [executive] director of the [commission on higher education] division or the director's authorized representative."

    SECTION 68. Section 21-24-2 NMSA 1978 (being Laws 1971, Chapter 304, Section 2, as amended) is amended to read:

    "21-24-2. DEFINITIONS.--As used in the Out-of-State Proprietary School Act:

         [A. "course" means any course, plan or program of instruction, conducted in person, by mail or by other methods;

         B. "student" means any person within this state who is above compulsory school age and eligible for one or more courses of instruction;

         C.] A. "agent" means any person who solicits in person and for a fee the enrollment of a student in a course of instruction offered by a proprietary school;

         B. "commission" or "division" means the higher education division of the department of finance and administration;

         C. "course" means any course, plan or program of instruction, conducted in person, by mail or by other method;

         D. "proprietary school" means a nonpublic out-of-state school, academy or similar institution offering within New Mexico a course of instruction or training through correspondence or similar methods or offering within New Mexico a course of instruction or training to be conducted outside New Mexico, but does not include a private out-of-state post-secondary educational institution offering instruction or training within New Mexico, to any student within this state; and

         [E. "commission" means the commission on higher education]

         E. "student" means any person within this state who is above compulsory school age and eligible for one or more courses of instruction."

    SECTION 69. Section 21-26-3 NMSA 1978 (being Laws 1983, Chapter 195, Section 3) is amended to read:

    "21-26-3. DEFINITIONS.--As used in the Osteopathic Intern Act:

         A. "board" or "division" means the [board of educational finance] higher education division of the department of finance and administration;

         B. "hospital" means a fully accredited nonprofit osteopathic teaching hospital in New Mexico that accepts newly graduated physicians for internships in family practice; and

         C. "osteopathic intern" means a graduate of a college of osteopathic medicine approved by the American osteopathic association and who has been accepted by a hospital for postdoctoral training in family practice."

    SECTION 70. Section 21-27-3 NMSA 1978 (being Laws 1983, Chapter 316, Section 3) is amended to read:

    "21-27-3. DEFINITIONS.--As used in the Two-Year College Maintenance Act:

         A. "board" or "division" means the [board of educational finance created pursuant to Section 21-1-26 NMSA 1978] higher education division of the department of finance and administration;

         B. "fund" means the two-year college maintenance fund; and

         C. "qualifying institution" means a statutorily created branch community college, a junior college or area vocational school or a two-year constitutionally created post-secondary state educational institution."

    SECTION 71. TEMPORARY PROVISION--TRANSFERS.--

         A. On the effective date of this act, all functions, appropriations, money, records, furniture, equipment, supplies and other property of the higher education department are transferred to the department of finance and administration.

         B. On the effective date of this act, all contractual obligations of the higher education department are binding on the higher education division of the department of finance and administration.

         C. On the effective date of this act, all statutory references to the board of educational finance, the commission on higher education or the higher education department are deemed to be references to the higher education division of the department of finance and administration.

         D. All rules of the higher education department shall be deemed to be the rules of the higher education division of the department of finance and administration until amended or repealed by the higher education division.

    SECTION 72. REPEAL.--Sections 9-25-1 through 9-25-13 NMSA 1978 (being Laws 2005, Chapter 289, Sections 1 through 4, 29 and 5 through 13, as amended) are repealed.

    SECTION 73. EFFECTIVE DATE.--The effective date of the provisions of this act is September 1, 2011.

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