SENATE BILL 929
48th legislature - STATE OF NEW MEXICO - first session, 2007
INTRODUCED BY
Timothy Z. Jennings
AN ACT
RELATING TO HIGHER EDUCATION; ENACTING THE LEGISLATIVE LOTTERY TUITION SCHOLARSHIP ACT; PROVIDING POWERS AND DUTIES; PROVIDING FOR ELIGIBILITY; ALLOWING FOR A SECOND CHANCE AT ELIGIBILITY; CREATING THE LOTTERY TUITION TRUST FUND; CREATING THE LEGISLATIVE LOTTERY TUITION SCHOLARSHIP FUND; TRANSFERRING MONEY FROM THE GENERAL FUND TO THE LOTTERY TUITION TRUST FUND; AMENDING, REPEALING AND ENACTING SECTIONS OF THE NMSA 1978; MAKING AN APPROPRIATION.
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. "department" means the higher education department;
B. "recipient" means a student who has been awarded a legislative lottery tuition scholarship; and
C. "secretary" means the secretary of higher education.
Section 3. [NEW MATERIAL] LEGISLATIVE LOTTERY TUITION SCHOLARSHIPS AUTHORIZED--QUALIFICATIONS.--
A. To the extent that funds are made available from the legislative lottery tuition scholarship fund, the boards of regents and governing bodies of state-supported public post-secondary educational institutions shall award legislative lottery tuition scholarships to qualified resident students attending their respective institutions.
B. Except as authorized in Subsection C of this section, the legislative lottery tuition scholarships 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 general educational development certificate, are accepted for entrance to and attend full time a public post-secondary educational institution. Each legislative lottery tuition scholarship shall be awarded for no more than a total of eight consecutive semesters beginning the second semester of the recipient's first year of enrollment, if the recipient has maintained:
(1) residency in New Mexico;
(2) full-time student status; and
(3) a grade point average of 2.5 or higher on a 4.0 scale during that first semester and each subsequent semester.
C. The legislative lottery tuition scholarships shall also apply to full-time resident students who:
(1) within one hundred twenty days of completion of a high school curriculum at a public or accredited private high school, or of receiving a general educational development certificate, begin service in the United States armed forces; and
(2) within one hundred twenty days of completion of honorable service or medical discharge from the service are accepted for entrance to and attend one of the state educational institutions set forth in this section.
D. If a recipient loses the legislative lottery tuition scholarship for failure to maintain the required grade point average, the recipient may requalify for the scholarship after making the required grade point average for one semester. A recipient may requalify only one time.
E. A recipient may combine the total number of eligible semesters between consecutive attendance at a two-year and four-year public post-secondary eduational institution. F. Legislative lottery tuition scholarships shall be used only for undergraduate study. Students who have received a bachelor's degree are not eligible for a legislative lottery tuition scholarship.
G. The department shall promulgate rules setting forth explicit student continuing eligibility criteria and rules for administration of the legislative lottery tuition scholarship program. Rules shall be distributed to the board of regents or governing board of each public post-secondary educational institution to enable a uniform availability of the legislative lottery tuition scholarships.
Section 4. Section 21-1-4.4 NMSA 1978 (being Laws 1996, Chapter 71, Section 4) is recompiled into the Legislative Lottery Tuition Scholarship Act and is amended to read:
"[COMMISSION ON HIGHER EDUCATION] DEPARTMENT--DETERMINATION OF LEGISLATIVE LOTTERY TUITION SCHOLARSHIPS--USE OF LEGISLATIVE LOTTERY TUITION SCHOLARSHIP FUND.--Prior to June 1 of each year, the [commission on higher education] department shall determine the amount of money available for legislative lottery tuition scholarships at [state] state-supported public post-secondary educational institutions. Based on the amount appropriated by the legislature from the legislative lottery tuition scholarship fund and on the projected enrollment at all public post-secondary educational institutions, the [commission on higher education] department shall establish the percentage of tuition that shall be awarded for qualified resident students attending [New Mexico] state-supported public post-secondary educational institutions. The percentage of tuition awarded shall be the same for each institution, regardless of the actual cost of tuition at each institution; provided that an individual award shall not exceed the actual cost of tuition."
Section 5. [NEW MATERIAL] LOTTERY TUITION TRUST FUND CREATED--PURPOSE.--The "lottery tuition trust fund" is created as a nonreverting fund in the state treasury. Money in the fund shall not be expended but shall be invested by the state investment council. Income earned from investment of the fund shall be deposited into the legislative lottery tuition scholarship fund.
Section 6. [NEW MATERIAL] LEGISLATIVE LOTTERY TUITION SCHOLARSHIP FUND.--The "legislative lottery tuition scholarship fund" is created as a nonreverting fund in the state treasury. The fund consists of distributions from lottery revenue and the lottery tuition trust fund, income from investment of the lottery tuition scholarship fund, appropriations, gifts, grants, donations and bequests. The legislative lottery tuition scholarship fund shall be administered by the department. Money in the legislative lottery tuition scholarship fund shall be appropriated by the legislature to the department for distribution to state-supported public post-secondary educational institutions to provide tuition assistance for New Mexico resident undergraduates as provided by law.
Section 7. Section 6-24-24 NMSA 1978 (being Laws 1995, Chapter 155, Section 24, as amended) is amended to read:
"6-24-24. DISPOSITION OF REVENUE.--
A. As nearly as practical, an amount equal to at least fifty percent of the gross annual revenues from the sale of lottery tickets shall be returned to the public in the form of lottery prizes.
B. The authority shall transmit all net revenues to the state treasurer, who shall deposit them in the legislative lottery tuition scholarship fund. Estimated net revenues shall be transmitted monthly to the state treasurer for deposit in the fund; provided that the total amount of annual net revenues for the fiscal year shall be transmitted no later than August 1 each year.
C. In determining net revenues, operating expenses of the lottery include all costs incurred in the operation and administration of the lottery and all costs resulting from any contracts entered into for the purchase or lease of goods or services required by the lottery, including the costs of supplies, materials, tickets, independent audit services, independent studies, data transmission, advertising, promotion, incentives, public relations, communications, commissions paid to lottery retailers, printing, distribution of tickets, purchases of annuities or investments to be used to pay future installments of winning lottery tickets, debt service and payment of any revenue bonds issued, contingency reserves, transfers to the reserve fund and any other necessary costs incurred in carrying out the provisions of the New Mexico Lottery Act.
D. An amount up to two percent of the gross annual revenues shall be set aside as a reserve fund to cover bonuses and incentive plans for lottery retailers, special promotions for retailers, purchasing special promotional giveaways, sponsoring special promotional events, compulsive gambling rehabilitation and such other purposes as the board deems necessary to maintain the integrity and meet the revenue goals of the lottery. The board shall report annually to the governor and each regular session of the legislature on the use of the money in the reserve fund. Any balance in excess of fifty thousand dollars ($50,000) at the end of any fiscal year shall be transferred to the legislative lottery tuition scholarship fund."
Section 8. 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 tuition scholarships for qualified resident students attending their respective institutions.
D. The tuition 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 tuition 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 his first semester of full-time enrollment.
E. The commission on higher education shall prepare guidelines setting forth explicit student continuing eligibility criteria and guidelines for administration of the tuition scholarship program. Guidelines shall be distributed to community college boards to enable a uniform availability of the resident student tuition scholarships.]"
Section 9. Section 21-16-10 NMSA 1978 (being Laws 1968, Chapter 59, Section 3, as amended) is amended to read:
"21-16-10. APPROPRIATION--DISTRIBUTION.--
A. The [commission on] higher education department shall recommend an appropriation for each technical and vocational institute based upon its financial requirements in relation to its authorized program and its available funds from
non-general fund sources; provided, the recommended appropriation shall be an amount not less than three hundred twenty-five dollars ($325) for each full-time-equivalent student.
B. The [commission on] higher education department shall by rule provide for the method for calculating the number of full-time-equivalent students in technical and vocational institutes. No student shall be included in any calculation of the number of full-time-equivalent students if the student is
enrolled in a course, the cost of which is totally reimbursed from federal, state or private sources. The public school district shall transfer to the technical and vocational institute the tuition and fees for any student who, during the term, is counted in the membership of the public school district and will receive high school credit for coursework at the technical and vocational institute.
C. The [commission on] higher education department shall not recommend an appropriation greater than three hundred
twenty-five dollars ($325) for each full-time-equivalent student for any technical and vocational institute that levies a tax at a rate less than two dollars ($2.00), unless a lower amount is required by operation of the rate limitation provisions of Section 7-37-7.1 NMSA 1978 upon a rate approved by the electors of at least two dollars ($2.00) on each one thousand dollars ($1,000) of net taxable value, as that term is defined in the Property Tax Code, or any technical and vocational institute that reduces a previously authorized tax levy, except as required by the operation of the rate limitation provisions of Section 7-37-7.1 NMSA 1978.
D. The board may establish and grant gratis scholarships to students who are residents of New Mexico in an amount not to exceed the matriculation fee or tuition and fees, or both. The gratis scholarships are in addition to the legislative lottery tuition scholarships authorized in [Section 21-16-10.1 NMSA 1978] the Legislative Lottery Tuition Scholarship Act and shall be granted to the full extent of available funds before legislative lottery tuition scholarships are granted. The number of scholarships established and granted pursuant to this subsection shall not exceed three percent of the preceding fall semester enrollment in the technical and vocational institute and shall not be established and granted for summer sessions. The president of the technical and vocational institute shall select and recommend to the board as recipients of scholarships students who possess good moral character and satisfactory initiative, scholastic standing and personality. At least thirty-three and one-third percent of the gratis scholarships established and granted by the board each year shall be granted on the basis of financial need."
Section 10. TRANSFER FROM GENERAL FUND TO LOTTERY TUITION TRUST FUND.--One hundred million dollars ($100,000,000) shall be transferred from the general fund to the lottery tuition trust fund prior to the end of fiscal year 2007.
Section 11. REPEAL.--Sections 6-24-23, 21-1-4.3 and 21-16-10.1 NMSA 1978 (being Laws 1995, Chapter 155, Section 23 and Laws 1996, Chapter 71, Sections 3 and 6, as amended) are repealed.