SENATE EDUCATION COMMITTEE SUBSTITUTE FOR
SENATE BILL 355
48th legislature - STATE OF NEW MEXICO - first session, 2007
AN ACT
RELATING TO HIGHER EDUCATION; ALLOWING COLLEGE AFFORDABILITY SCHOLARSHIPS TO BE USED AT TRIBAL COLLEGES; DEFINING ELIGIBLE STUDENT; MAKING AN APPROPRIATION.
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] or "department" means the higher education department;
[B. "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. "student" means a resident of New Mexico who is enrolled or will be enrolled, at the time the scholarship is awarded, in a public post-secondary educational institution in New Mexico]
B. "eligible student" means a New Mexico resident who is enrolled or enrolling at least half-time in a public post-secondary educational institution or tribal college at any time following high school graduation or the award of a general educational development certificate;
C. "scholarship" means a college affordability scholarship; and
D. "tribal college" means a tribally, federally or congressionally chartered post-secondary educational institution located in New Mexico that is accredited by the north central association of colleges and schools."
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 may be awarded to [any person] an eligible student who:
[A. is a resident of New Mexico for the purpose of tuition payment;
B.] A. has not earned a baccalaureate degree [and is enrolled or will be enrolled at least half time in a degree program in a public post-secondary educational institution in New Mexico] at the time the scholarship is awarded;
[C.] B. has demonstrated financial need consistent with the criteria promulgated by the [commission] department; and
[D.] C. 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 AUTHORIZED--ADMINISTRATION--PREFERENCE IN SCHOLARSHIP AWARDS.--
A. The [commission] department shall administer the College Affordability Act and shall promulgate rules to carry out the provisions of that act.
B. Scholarships shall be awarded to qualified [applicants] eligible students. Qualifications shall be determined by rule of the [commission] department.
C. The [commission] department shall allocate money to public post-secondary educational institutions and tribal
colleges 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.
D. Public post-secondary educational institutions and tribal colleges shall make awards to qualifying eligible 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] the scholarship shall be placed in an account at the public post-secondary educational institution or tribal college in the name of the eligible 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.--Each scholarship is for a period of one semester. A scholarship may be renewed, provided the [recipient] eligible student continues to meet the conditions of eligibility, until the [award recipient has received eight consecutive semester scholarship awards or until the] eligible student graduates from [an eligible] a 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.--A scholarship is terminated upon occurrence of one or more of the following:
A. withdrawal of the [award recipient] eligible student from the public post-secondary educational institution or tribal college or failure to remain as at least a half-time student;
B. failure of the [award recipient] eligible student to achieve satisfactory academic progress; or
C. substantial noncompliance by the [award recipient] eligible student 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 as a nonreverting fund 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 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 fund" is created as a nonreverting fund in the state treasury, consisting of income from investment of the college affordability endowment fund [as provided in Subsection C of this section] and any specified appropriations, gifts, grants and donations to the fund. Money in the scholarship fund is appropriated to the [commission] department for scholarship awards as provided in the College Affordability Act. Expenditures from the scholarship 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 fund, from which the commission will make scholarship awards as provided in the College Affordability Act.]"
Section 8. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2007.
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