HOUSE EDUCATION COMMITTEE SUBSTITUTE FOR
HOUSE BILL 309
51st legislature - STATE OF NEW MEXICO - first session, 2013
AN ACT
RELATING TO HIGHER EDUCATION; CREATING THE LEGISLATIVE LOTTERY TUITION SCHOLARSHIP ACT; PROVIDING FOR SCHOLARSHIP AND OTHER AWARDS; LIMITING THE AMOUNT OF AWARDS; EXTENDING THE FINANCIAL SOLVENCY OF THE LOTTERY TUITION FUND; REQUIRING A MINIMUM BALANCE IN THE FUND; AMENDING, REPEALING, ENACTING AND RECOMPILING SECTIONS OF THE NMSA 1978; DECLARING AN EMERGENCY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. [NEW MATERIAL] SHORT TITLE.--Sections 1 through 6 of this act may be cited as the "Legislative Lottery Tuition Scholarship Act".
SECTION 2. [NEW MATERIAL] DEFINITIONS.--As used in the Legislative Lottery Tuition Scholarship Act:
A. "basic tuition scholarship" means the legislative lottery scholarship that provides tuition assistance per semester for a qualified student;
B. "community college" means a branch community college of a state educational institution or a community college or technical and vocational institute established pursuant to Chapter 21, Article 13 or 16 NMSA 1978, respectively;
C. "comprehensive institution" means eastern New Mexico university, western New Mexico university, New Mexico highlands university or northern New Mexico college;
D. "cost of attendance" means tuition, fees, textbooks and other educational materials, but does not include room and board expenses;
E. "department" means the higher education department;
F. "fund" means the lottery tuition fund;
G. "full time" means a range of twelve to fifteen credit hours each semester of the regular academic year; H. "graduating year award" means a scholarship award in addition to the basic tuition scholarship and the junior year award for a qualified student who successfully completes a community college degree or certificate program or who is completing the last semester of a bachelor degree program at a state educational institution;
I. "junior year award" means a scholarship award in addition to the basic tuition scholarship for a qualified student who is entering the junior year at a state educational institution;
J. "legislative lottery scholarship" means the basic tuition scholarship and the supplemental tuition scholarship, if awarded;
K. "public post-secondary educational institution" means the state educational institutions and community colleges;
L. "qualified student" means a full-time resident student who graduated from a public or accredited private New Mexico high school or who received a general educational development certificate while maintaining residency in New Mexico and who:
(1) either:
(a) immediately upon graduation or receipt of a certificate was accepted for entrance to and attended a public post-secondary educational institution; or
(b) within one hundred twenty days of completion of a high school curriculum or general educational development certificate begins service in the United States armed forces and within one year of completion of honorable service or medical discharge from the service, attended a public post-secondary educational institution; and
(2) successfully completed the first semester at a public post-secondary educational institution with a grade point average of 2.5 or higher on a 4.0 scale during the first semester of full-time enrollment;
M. "research institution" means the university of New Mexico, New Mexico state university or New Mexico institute of mining and technology;
N. "state educational institution" means an institution of higher education enumerated in Article 12, Section 11 of the constitution of New Mexico; and
O. "supplemental tuition scholarship" means an additional award to the basic tuition scholarship that may be awarded if there is sufficient lottery revenue in the fund. SECTION 3. [NEW MATERIAL] LEGISLATIVE LOTTERY SCHOLARSHIPS AUTHORIZED--QUALIFIED STUDENTS.--
A. To the extent that funds are made available by the legislature from the fund, the boards of regents of state educational institutions or governing bodies of community colleges shall award legislative lottery scholarships to qualified students attending their respective public post-secondary educational institutions.
B. Except as otherwise provided in this subsection, legislative lottery scholarships may be awarded for up to seven consecutive semesters if the qualified student maintains residency in New Mexico, maintains a grade point average of 2.5 or higher on a 4.0 scale and meets other continuing eligibility requirements of the department. Qualified students who have received legislative lottery scholarships for five or more semesters by the fall semester 2013 shall be allowed a total of eight consecutive semesters toward a bachelor's degree. Qualified students who have received legislative lottery scholarships for three or more semesters by the fall semester 2013 shall be allowed a total of five consecutive semesters toward an associate's degree or certificate.
C. A qualified student may apply for a legislative lottery scholarship at the end of the first semester, for the second and subsequent semesters, by filling out the free application for federal student aid, which shall be used to demonstrate the student's efforts to obtain other scholarships and grants-in-aid. The legislative lottery scholarship and other lottery awards shall be awarded up to the amount of tuition, after subtracting other state and institutional scholarships and grants-in-aid. If a qualified student transfers to another public post-secondary educational institution, that institution may require the student to fill out a new free application for federal student aid. If a qualified student receives other scholarships or grants-in-aid, the student shall notify the public post-secondary educational institution in which the student is or will be enrolled.
D. The department shall promulgate rules setting forth explicit criteria for student qualification, continuing eligibility, duties of state educational institutions and community colleges and other criteria and guidelines for the administration of the legislative lottery scholarship program. The rules shall be distributed to boards of regents and governing boards to enable a uniform availability of the resident student legislative lottery scholarships. The rules shall be provided each year and shall be distributed early enough to inform students of any changes to student qualification, continuing eligibility or other guidelines. The rules may provide for exigent circumstances, such as medical emergencies and conditions, pursuant to which a qualified student may lay out a semester and still maintain eligibility.
E. For purposes of the legislative lottery scholarship program as it applies to students with disabilities who may require special accommodations, the department, in consultation with the student and the office at the public post-secondary educational institution that serves students with disabilities, shall review both the definition of "full time" and the maximum number of consecutive semesters of eligibility and adjust either or both as deemed reasonable and appropriate, based on the student's disability needs. In no case, however, shall "full time" mean fewer than six credit hours per semester and in no case shall eligibility extend beyond fourteen consecutive semesters.
SECTION 4. [NEW MATERIAL] LEGISLATIVE LOTTERY SCHOLARSHIPS--OTHER AWARDS--FUND.--
A. Prior to June 1 of each year, the department shall determine the amount of money available for legislative lottery scholarships at public post-secondary educational institutions based on the amount appropriated by the legislature from the fund and on the projected enrollment at all public post-secondary educational institutions.
B. Except as provided in Subsection C of this section, in accordance with Subsection A of this section, beginning with the 2013-2014 academic year, a basic tuition scholarship shall be provided per semester by the public post-secondary educational institution for a qualified student as follows after subtracting other financial aid as provided in Subsection C of Section 3 of the Legislative Lottery Tuition Scholarship Act:
(1) up to one thousand two hundred dollars ($1,200) for qualified students at the research institutions;
(2) up to seven hundred dollars ($700) for qualified students at the comprehensive institutions; and
(3) up to the full amount of in-district resident tuition charged at community colleges.
C. If the balance in the lottery tuition fund is not sufficient to pay basic tuition scholarships for all qualified students at the levels specified in Subsection B of this section and maintain the minimum fund balance, the department may reduce basic tuition scholarship amounts so as to maintain that balance.
D. Each semester, after the basic tuition scholarships are awarded, and after junior year and graduating semester awards are awarded when they become available, if more than ten million dollars ($10,000,000) remains in the fund, the department shall use the excess to provide supplemental tuition scholarships to those qualified students who received basic scholarships at state educational institutions. The department shall calculate the supplemental tuition scholarships in the same proportion as the scholarships listed in Subsection B of this section.
E. Beginning with the fall semester 2014, in addition to the basic tuition scholarship, a qualified student who has completed four semesters and is eligible for a junior year award and who demonstrates financial need as provided by rule of the department may receive a one-time junior year award from the fund that shall be one thousand dollars ($1,000) for a junior at a research institution and six hundred dollars ($600) for a junior at a comprehensive institution.
F. Beginning with the spring semester 2015, in addition to the basic tuition scholarship and the junior year award, if applicable, a qualified student who is entering the last semester of the student's senior year at a state educational institution, which shall be no later than the student's eighth semester of higher education, or the last semester at a community college, which shall be no later than the student's fourth semester of higher education, and who demonstrates financial need as provided by rule of the department may receive a graduating year award from the fund that shall be:
(1) up to one thousand dollars ($1,000) for a senior at a research institution;
(2) up to six hundred dollars ($600) for seniors at a comprehensive institution; and
(3) up to six hundred dollars ($600) or up to the cost of attendance at a community college, whichever is less.
G. The amount of a junior year award or graduating year award shall be determined so that the total of all legislative lottery scholarship awards and all other state and institutional tuition-related scholarships and grants-in-aid received by the student for that semester does not exceed the cost of tuition at the state educational institutions and the cost of attendance at community colleges. The junior year and graduating year awards shall be paid in the same manner as other legislative lottery scholarships. A student shall not receive both a community college graduating year award and a junior year award.
SECTION 5. Section 6-24-23 NMSA 1978 (being Laws 1995, Chapter 155, Section 23, as amended) is recompiled into the Legislative Lottery Tuition Scholarship Act and is amended to read:
"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] department. Earnings from investment of the fund shall accrue to the credit of the fund. The fund shall maintain an annual average balance of ten million dollars ($10,000,000) and 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] shall be appropriated by the legislature to the [commission on higher education] department for distribution to New Mexico's public post-secondary educational institutions to provide tuition assistance for [New Mexico resident undergraduates] qualified students as provided [by law] in the Legislative Lottery Tuition Scholarship Act."
SECTION 6. [NEW MATERIAL] HIGHER EDUCATION ANNUAL LEGISLATIVE LOTTERY REPORT.--The department shall report annually by November 1 to the governor and the legislature on the status of the fund; participation in the legislative lottery scholarship program, including qualified students versus all students in each institution; distribution of legislative lottery scholarship awards, junior year awards and graduating year awards in total and by institution and type of award; and any other data or other substantive information that the governor or the legislature has sought since the last report or that the department determines should be reported.
SECTION 7. Section 21-13-10 NMSA 1978 (being Laws 1963, Chapter 17, Section 9, as amended) is amended to read:
"21-13-10. BOARD DUTIES.--
A. It is the duty of the community college board to determine financial and educational policies of the community college. The community college board shall provide for the management of the community college and execution of these policies by selecting a competent president for the community college, and, upon the president's recommendation, the board shall employ other administrative personnel, instructional staff or other personnel as may be needed for the operation, maintenance and administration of the community college.
B. The community college board shall have the power to fix tuition and fee rates for resident and nonresident students of the community college district, to accept gifts, to accept federal aid, to purchase, hold, sell and rent property and equipment and to promote the general welfare of the institution for the best interest of educational service to the people of the community college district.
[C. To the extent that funds are made available by the legislature from the lottery tuition fund, the community college board shall award legislative lottery scholarships for qualified resident students attending their respective institutions.
D. The legislative lottery scholarships authorized in this section shall apply only to full-time resident students who, immediately upon completion of a high school curriculum at a public or accredited private New Mexico high school or upon receiving a graduate equivalent diploma, are accepted for entrance to and attend a community college. Each legislative lottery scholarship shall be awarded for up to two consecutive years beginning the second semester of the recipient's first year of enrollment, provided that the recipient has maintained residency in New Mexico and maintained a grade point average of 2.5 or higher on a 4.0 scale during the first semester of full-time enrollment.
E. The higher education department shall prepare guidelines setting forth explicit student continuing eligibility criteria and guidelines for administration of the legislative lottery scholarship program. Guidelines shall be distributed to community college boards to enable a uniform availability of the resident student lottery tuition scholarships.
F. For purposes of the legislative lottery scholarship program as it applies to students with disabilities who may require special accommodations, the higher education department, in consultation with the student and the office at the community college that serves students with disabilities, shall review both the definition of "full time" and the maximum number of consecutive semesters of eligibility and adjust either or both as deemed reasonable and appropriate, based on the student's disability needs. In no case, however, shall "full time" mean fewer than six credit hours per semester, and in no case shall eligibility extend beyond fourteen consecutive semesters.]"
SECTION 8. REPEAL.--Sections 21-1-4.3, 21-1-4.4 and 21-16-10.1 NMSA 1978 (being Laws 1996, Chapter 71, Sections 3, 4 and 6, as amended) are repealed.
SECTION 9. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.
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