SENATE BILL 481

56th legislature - STATE OF NEW MEXICO - first session, 2023

INTRODUCED BY

William E. Sharer and William F. Burt and Crystal R. Diamond

AN ACT

RELATING TO HIGHER EDUCATION; AMENDING THE OPPORTUNITY SCHOLARSHIP ACT; PROVIDING THAT THE OPPORTUNITY SCHOLARSHIP IS A FORGIVABLE LOAN; DIRECTING RULEMAKING TO ESTABLISH REQUIREMENTS FOR FORGIVING THE AMOUNTS AWARDED TO STUDENTS PARTICIPATING IN THE OPPORTUNITY SCHOLARSHIP PROGRAM.

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

     SECTION 1. Section 21-21R-2 NMSA 1978 (being Laws 2022, Chapter 42, Section 2) is amended to read:

     "21-21R-2. DEFINITIONS.--As used in the Opportunity Scholarship Act:

          A. "community college" means a branch community college of a four-year state educational institution, a two-year state educational institution or a community college or technical and vocational institute established pursuant to Chapter 21, Article 13 or 16 NMSA 1978;

          B. "department" means the higher education department;

          C. "eligible student" means a New Mexico resident who is enrolled or enrolling in at least six credit hours, excluding the summer semester, in a public post-secondary educational institution or tribal college at any time following high school graduation or the award of a high school equivalency credential;

          D. "public post-secondary educational institution" means a four-year state educational institution or a community college;

          E. "scholarship" means [an opportunity scholarship] a forgivable loan;

          F. "state educational institution" means an institution of higher education enumerated in Article 12, Section 11 of the constitution of New Mexico; and

          G. "tribal college" means a tribally, federally

or congressionally chartered post-secondary educational institution located in New Mexico that is accredited by the higher learning commission."

     SECTION 2. Section 21-21R-6 NMSA 1978 (being Laws 2022, Chapter 42, Section 6) is amended to read:

     "21-21R-6. TERMINATION OF SCHOLARSHIP AUTHORIZED.--A scholarship is terminated and may be subject to repayment upon occurrence of:

          A. withdrawal of the eligible student from the public post-secondary educational institution or tribal college or failure to remain enrolled in at least six credit hours per semester, excluding the summer semester;

          B. failure of the eligible student to achieve satisfactory academic progress set by the public post-secondary educational institution or tribal college; or

          C. substantial noncompliance by the eligible student with the Opportunity Scholarship Act or the rules promulgated pursuant to that act."

     SECTION 3. Section 21-21R-8 NMSA 1978 (being Laws 2022, Chapter 42, Section 8) is amended to read:

     "21-21R-8. DEPARTMENT RULEMAKING AND REPORTING.--

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

                (1) student qualification and continuing eligibility;

                (2) calculating the total amount of money necessary to pay for opportunity scholarships at each eligible institution pursuant to Section [4 of the Opportunity Scholarship Act] 21-21R-4 NMSA 1978 and guidelines for the administration of the Opportunity Scholarship Act; [and]

                (3) requirements for the memoranda of understanding regarding institution eligibility to participate in the opportunity scholarship program; and

                (4) requirements for forgiving the amounts awarded to eligible students participating in the opportunity scholarship program.

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

                (1) status of the opportunity scholarship fund; and

                (2) Opportunity Scholarship Act participation data aggregated for each eligible institution to show the:

                     (a) number of eligible students who received scholarships in the prior academic year;

                     (b) total number of students enrolled in eligible institutions in the prior academic year; [and]

                     (c) number of eligible students who graduated with a degree and, for each eligible student, the number of consecutive semesters and nonconsecutive semesters attended prior to graduation; and

                     (d) number of scholarships forgiven in the prior academic year."

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