0001| SENATE BILL 677
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0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003| INTRODUCED BY
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0004| DON KIDD
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0006|
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0007|
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0008|
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0009|
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0010| AN ACT
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0011| MAKING AN APPROPRIATION TO DETERMINE THE FEASIBILITY OF
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0012| CREATING A PREPAID COLLEGE TUITION PROGRAM.
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0013|
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0014| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0015| Section 1. PREPAID HIGHER EDUCATION TUITION PROGRAM--
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0016| FEASIBILITY STUDY--GUIDELINES.--
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0017| A. The commission on higher education shall conduct
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0018| a thorough study to determine the feasibility of creating a
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0019| prepaid higher education tuition program, which shall include
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0020| requirements that:
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0021| (1) prepaid tuition contracts, once paid, will
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0022| cover all tuition and required fees of the institution of
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0023| higher education;
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0024| (2) payments for prepaid tuition contracts may
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0025| be made either in a lump sum or in installments;
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0001| (3) the prepaid tuition contracts shall:
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0002| (a) allow purchasers to choose from
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0003| payment plans that pay the tuition and required fees for either
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0004| a community college, four-year or in-state, private post-
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0005| secondary educational institution;
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0006| (b) allow for rollover of prepaid higher
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0007| education tuition benefits from one plan to another, and that
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0008| provide that benefits may be used at any community college,
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0009| four-year or in-state, private post-secondary educational
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0010| institution;
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0011| (c) include penalties for termination of
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0012| the contract or default on any of the contract's terms or
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0013| conditions; and
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0014| (d) include provisions that allow
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0015| purchasers to change or switch beneficiaries;
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0016| (4) beneficiaries meet certain minimum
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0017| eligibility requirements;
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0018| (5) when setting contract prices, the
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0019| commission consider:
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0020| (a) the amount and estimated rate of
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0021| increase of tuition and fees at institutions of higher
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0022| education;
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0023| (b) expected investment returns;
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0024| (c) estimated administrative costs; and
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0025| (d) the period between the date the
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0001| contract is entered into and the date the beneficiary is
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0002| projected to graduate from high school;
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0003| (6) allow for gifts or bequests either on
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0004| behalf of a beneficiary or to the fund generally;
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0005| (7) institutions of higher education are
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0006| either required to participate or that the commission may
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0007| specify how and when institutions of higher education become
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0008| eligible to participate in the program;
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0009| (8) benefits under a prepaid tuition contract
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0010| are excluded from any calculation of a beneficiary's state
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0011| student-aid eligibility; and
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0012| (9) a program established pursuant to the
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0013| requirements set forth in this section shall not obligate or
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0014| encumber any money deposited in the state permanent fund, the
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0015| severance tax bond fund or any money that is a part of a state-
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0016| funded financial aid program.
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0017| B. The commission shall report its findings to the
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0018| appropriate interim legislative committee no later than October
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0019| 15, 1997. The report shall include a recommendation from the
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0020| commission regarding the feasibility of implementing a prepaid
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0021| higher education tuition program based on the requirements set
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0022| forth in Subsection A of this section.
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0023| Section 2. APPROPRIATION.--One hundred seventy-five
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0024| thousand dollars ($175,000) is appropriated from the general
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0025| fund to the commission on higher education for expenditure in
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0001| fiscal year 1998 for the purpose of conducting a study to
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0002| determine the feasibility of creating a prepaid higher
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0003| education tuition program with the requirements set forth in
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0004| Subsection A of Section 1 of this act. Any unexpended or
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0005| unencumbered balance remaining at the end of fiscal year 1998
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0006| shall revert to the general fund.
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0007|
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0008|
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0009| FORTY-THIRD LEGISLATURE
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0010| FIRST SESSION, 1997
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0011|
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0012|
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0013| March 4, 1997
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0014|
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0015| Mr. President:
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0016|
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0017| Your EDUCATION COMMITTEE, to whom has been referred
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0018|
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0019| SENATE BILL 677
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0020|
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0021| has had it under consideration and reports same with
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0022| recommendation that it DO PASS, and thence referred to the
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0023| FINANCE COMMITTEE.
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0024|
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0025| Respectfully submitted,
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0001|
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0002|
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0003|
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0004|
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0005| __________________________________
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0006| Cynthia Nava, Chairman
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0007|
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0008|
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0009|
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0010| Adopted_______________________ Not
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0011| Adopted_______________________
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0012| (Chief Clerk) (Chief Clerk)
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0013|
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0014|
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0015| Date ________________________
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0016|
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0017|
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0018| The roll call vote was 6 For 0 Against
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0019| Yes: 6
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0020| No: 0
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0021| Excused: Boitano, Duran, Gorham, Maloof
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0022| Absent: None
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0023|
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0024|
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0025| S0677ED1
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0001|
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0002|
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0003|
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0004| FORTY-THIRD LEGISLATURE SB 677/a
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0005| FIRST SESSION, 1997
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0006|
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0007|
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0008| March 15, 1997
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0009|
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0010| Mr. President:
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0011|
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0012| Your FINANCE COMMITTEE, to whom has been referred
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0013|
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0014| SENATE BILL 677
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0015|
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0016| has had it under consideration and reports same with
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0017| recommendation that it DO PASS, amended as follows:
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0018|
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0019| 1. On page 1, line 11, strike "MAKING AN APPROPRIATION".
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0020|
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0021| 2. On page 3, strike lines 23 through 25.
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0022|
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0023| 2. On page 4, strike lines 1 through 6.
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0024|
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0025| Respectfully submitted,
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0001|
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0002|
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0003|
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0004|
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0005| __________________________________
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0006| Ben D. Altamirano, Chairman
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0007|
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0008|
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0009|
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0010| Adopted_______________________ Not
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0011| Adopted_______________________
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0012| (Chief Clerk) (Chief Clerk)
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0013|
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0014|
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0015| Date ________________________
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0016|
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0017|
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0018| The roll call vote was 8 For 0 Against
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0019| Yes: 8
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0020| No: None
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0021| Excused: Aragon, Carraro, McKibben
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0022| Absent: None
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0023|
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0024|
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0025| S0677FC1
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