SENATE BILL 276

53rd legislature - STATE OF NEW MEXICO - first session, 2017

INTRODUCED BY

John M. Sapien

AN ACT

RELATING TO HIGHER EDUCATION; AMENDING THE LEGISLATIVE LOTTERY TUITION SCHOLARSHIP ACT; PROVIDING FOR DIFFERENTIATED AWARDS; PROVIDING AN APPLICATION PROCESS; REQUIRING ADDITIONAL REPORTING REQUIREMENTS.

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

     SECTION 1. A new section of the Legislative Lottery Tuition Scholarship Act is enacted to read:

     "[NEW MATERIAL] LOTTERY TUITION SCHOLARSHIP--REQUEST FORM--DEPARTMENT DETERMINATION.--

          A. By August 1, 2017, the department shall develop and provide to all public post-secondary educational institutions a printed and electronic form for requesting a lottery tuition scholarship.

          B. No later than July 1, 2017 and no later than May 1 of each subsequent year, based on the amount appropriated by the legislature from the fund and on the projected enrollment at all public post-secondary educational institutions, the department shall:

                (1) determine the total amount of money available for lottery tuition scholarships at all public post-secondary educational institutions;

                (2) maintain, increase or reduce the percentages of lottery tuition scholarships to award the maximum amount available while maintaining the solvency of the fund as projected in the most recent actuarial evaluation of the fund; and

                (3) notify all public post-secondary educational institutions of the determinations made pursuant to Paragraphs (1) and (2) of this subsection."

     SECTION 2. A new section of the Legislative Lottery Tuition Scholarship Act is enacted to read:

     "[NEW MATERIAL] LOTTERY TUITION SCHOLARSHIP--APPLICATION BY STUDENT.--Prior to consideration for a lottery tuition scholarship each year, a student shall timely:

          A. submit to the intended public post-secondary educational institution a signed form requesting a lottery tuition scholarship; and

          B. file a free application for federal student aid provided pursuant to the federal Higher Education Act of 1965 to produce an expected family contribution amount."

     SECTION 3. Section 21-21N-4 NMSA 1978 (being Laws 2014, Chapter 80, Section 4, as amended) is repealed and a new Section 21-21N-4 NMSA 1978 is enacted to read:

     "21-21N-4. [NEW MATERIAL] LOTTERY TUITION SCHOLARSHIP--DIFFERENTIATED AWARDS.--

          A. The amount of a lottery tuition scholarship shall be a percentage of tuition and shall be based on the program semester of enrollment and the type of public post-secondary educational institution the student is attending as follows:

                (1) for students attending a community college:

                     (a) for the first and second program semesters, up to sixty percent of tuition; and

                     (b) for the third program semester, up to one hundred percent of tuition;

                (2) for students attending a comprehensive institution:

                     (a) for the first program semester, up to forty percent of tuition;

                     (b) for the second and third program semesters, up to fifty percent of tuition;

                     (c) for the fourth program semester, up to eighty percent of tuition; and

                     (d) for the fifth through seventh program semesters, up to one hundred percent of tuition; and

                (3) for students attending a research institution:

                     (a) for the first program semester, up to forty percent of tuition;

                     (b) for the second and third program semesters, up to fifty percent of tuition;

                     (c) for the fourth program semester, up to eighty percent of tuition; and

                     (d) for the fifth through seventh program semesters, up to one hundred percent of tuition.

          B. In determining distribution and awards for the lottery tuition scholarship program, the department shall:

                (1) maintain the minimum fund balance pursuant to Section 21-21N-5 NMSA 1978;

                (2) distribute to all public post-secondary educational institutions an amount not to exceed the remaining balance in the fund; and

                (3) subject to the provisions of Paragraphs (1) and (2) of this subsection, distribute to each public post-secondary educational institution an amount based on:

                     (a) the projected enrollment at each four-year public post-secondary educational institution of qualified students in their first through seventh program semesters, including qualified students in their fourth through seventh program semesters who transferred from community colleges;

                     (b) the projected enrollment at each community college of qualified students in their first through third program semesters; and

                     (c) a uniform percentage of the average of in-state tuition costs charged by: 1) research institutions for each research institution; 2) comprehensive institutions for each comprehensive institution; and 3) community colleges for each community college, except that the uniform percentage for a two-year state educational institution shall be based on the uniform percentage for community colleges."

     SECTION 4. Section 21-21N-6 NMSA 1978 (being Laws 2014, Chapter 80, Section 6) is amended to read:

     "21-21N-6. DEPARTMENT RULEMAKING AND REPORTING.--

          A. The department shall promulgate rules setting forth explicit criteria in accordance with the Legislative Lottery Tuition Scholarship Act for:

                (1) student qualification and continuing eligibility; [and

                (2) calculating the tuition scholarship award amount pursuant to Section 4 of the Legislative Lottery Tuition Scholarship Act and guidelines for the administration of the tuition scholarship program]

                (2) determining the same or any increase or reduction in the percentage of a lottery tuition scholarship award pursuant to the Legislative Lottery Tuition Scholarship Act; and

                (3) guidelines for the administration of the lottery tuition scholarship program.

          B. Immediately after promulgation, the rules shall be distributed to boards of regents and governing boards of public post-secondary educational institutions.

          [B.] C. The department shall report by November 1 of each year to the legislative finance committee and the department of finance and administration on:

                (1) the status of the fund;

                (2) tuition scholarship program

participation data aggregated for each public post-secondary educational institution to show:

                     (a) the number of qualified students and the number of legacy students who received tuition scholarships in the prior twelve-month period;

                     (b) the total number of students, including qualified students and legacy students, enrolled in the prior twelve-month period;

                     (c) for each qualified student and each legacy student, the component amounts of the lottery tuition scholarship received and the amount of unmet need that was not offset by the lottery tuition scholarship;

                     [(c)] (d) for each semester, the amount of tuition scholarships funded and the amount of tuition costs that were not offset by the tuition scholarship; [and

                     (d)] (e) the number of qualified students and the number of legacy students who graduated with a degree and, for each qualified student, the number of consecutive semesters [and nonconsecutive semesters] attended prior to graduation; and

                     (f) the number of qualified students and the number of legacy students who received a lottery tuition scholarship and subsequently became ineligible for a lottery tuition scholarship and the reasons for ineligibility; and

                (3) any additional information required or requested by the legislative finance committee or the department of finance and administration."

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