SENATE BILL 158
47th legislature - STATE OF NEW MEXICO - second session, 2006
INTRODUCED BY
Michael S. Sanchez
AN ACT
RELATING TO HIGHER EDUCATION; AMENDING THE COLLEGE AFFORDABILITY ACT TO INCREASE ELIGIBILITY FOR AND DURATION OF GRANTS; CLARIFYING THAT RECIPIENTS OF LOTTERY TUITION SCHOLARSHIPS ARE NOT ELIGIBLE FOR COLLEGE AFFORDABILITY GRANTS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 21-21L-1 NMSA 1978 (being Laws 2005, Chapter 192, Section 1) is amended to read:
"21-21L-1. SHORT TITLE.--[This act] Chapter 21, Article 21L NMSA 1978 may be cited as the "College Affordability Act"."
Section 2. Section 21-21L-3 NMSA 1978 (being Laws 2005, Chapter 192, Section 3) is amended to read:
"21-21L-3. DEFINITIONS.--As used in the College Affordability Act:
A. ["commission" means the commission on] "department" means the higher education department;
B. "grant" means a college affordability grant;
[B.] C. "returning adult" means a student enrolling in a public post-secondary educational institution at any time later than the first semester following high school graduation or the award of a general educational development certificate; and
[C.] D. "student" means a resident of New Mexico who is enrolled or will be enrolled, at the time the [scholarship] grant is awarded, in a public post-secondary educational institution in New Mexico."
Section 3. Section 21-21L-4 NMSA 1978 (being Laws 2005, Chapter 192, Section 4) is amended to read:
"21-21L-4. CONDITIONS FOR ELIGIBILITY.--A college affordability [scholarship] grant may be awarded to any person who:
A. is a resident of New Mexico for the purpose of tuition payment;
B. has not earned a baccalaureate degree and is enrolled or will be enrolled for at least [half-time] three credit hours in a degree program in a public post-secondary educational institution in New Mexico at the time the [scholarship] grant is awarded;
C. has demonstrated financial need consistent with the criteria promulgated by the [commission] department; and
D. has complied with other rules promulgated by the [commission] department to carry out the provisions of the College Affordability Act."
Section 4. Section 21-21L-5 NMSA 1978 (being Laws 2005, Chapter 192, Section 5) is amended to read:
"21-21L-5. [SCHOLARSHIP] GRANTS AUTHORIZED--ADMINISTRATION--PREFERENCE IN [SCHOLARSHIP AWARDS] GRANTS--LIMITATION.--
A. The [commission] department shall administer the College Affordability Act and shall promulgate rules to carry out the provisions of that act.
B. [Scholarships] Grants shall be awarded to qualified applicants. Qualifications shall be determined by rule of the [commission] department.
C. The [commission] department shall allocate money to public post-secondary educational institutions based on a student need formula calculated according to income reported on the free application for federal student aid and on the percentage of the institution's students classified as returning adults who are otherwise ineligible for state financial aid, including lottery tuition scholarships.
D. Public post-secondary educational institutions shall make [awards] grants to qualifying students based on financial need in an amount not to exceed one thousand dollars ($1,000) per semester as determined by rule of the [commission] department.
E. Money [for an awarded scholarship] from a grant shall be placed in an account at the public post-secondary educational institution in the name of the student, and the money may be drawn upon to pay educational expenses charged by the institution, including tuition, fees, books and course supplies."
Section 5. Section 21-21L-6 NMSA 1978 (being Laws 2005, Chapter 192, Section 6) is amended to read:
"21-21L-6. DURATION OF [SCHOLARSHIP] GRANTS.--Each [scholarship] grant is for a period of one semester. A [scholarship] grant may be renewed, provided the [recipient] grantee continues to meet the conditions of eligibility, until the [award recipient] grantee has received eight [consecutive] semester [scholarship awards] grants or until the student graduates from an eligible four-year public post-secondary educational institution, whichever occurs first."
Section 6. Section 21-21L-7 NMSA 1978 (being Laws 2005, Chapter 192, Section 7) is amended to read:
"21-21L-7. TERMINATION OF [SCHOLARSHIP] GRANT.--A [scholarship] grant is terminated upon occurrence of one or more of the following:
A. withdrawal of the [award recipient] grantee from the public post-secondary educational institution or failure to remain [as at least a half-time student] enrolled for at least three credit hours;
B. failure of the [award recipient] grantee to achieve satisfactory academic progress; or
C. substantial noncompliance by the [award recipient] grantee with the College Affordability Act or the rules promulgated pursuant to that act."
Section 7. Section 21-21L-8 NMSA 1978 (being Laws 2005,
Chapter 192, Section 8) is amended to read:
"21-21L-8. FUNDS CREATED.--
A. The "college affordability endowment fund" is created in the state treasury, consisting of appropriations; unspecified gifts, grants and donations; and income from investment of the fund. Income from investment of the fund shall be distributed to the college affordability [scholarship] grant fund as provided in Subsection C of this section, and no other distributions, transfers or reversions shall be made from the fund at the end of any fiscal year.
B. The "college affordability [scholarship] grant fund" is created in the state treasury, consisting of income from investment of the fund as provided in Subsection C of this section and any specified appropriations, gifts, grants and donations. Money in the [scholarship] grant fund is appropriated to the [commission] department for [scholarship awards] grants as provided in the College Affordability Act. Expenditures from the [scholarship] grant fund shall be by warrant of the secretary of finance and administration pursuant to vouchers signed by the [executive director of the commission on higher education or the executive director's] secretary of higher education or the secretary's authorized representative.
C. Until the corpus of the endowment fund is two hundred fifty million dollars ($250,000,000), fifty percent of the income from investment of the fund shall be applied to the corpus of the fund and fifty percent shall be distributed annually to the [scholarship] grant fund, from which the [commission] department will make [scholarship awards] grants as provided in the College Affordability Act."
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