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F I S C A L I M P A C T R E P O R T

SPONSOR Campos

DATE TYPED 03/05/05 HB 983

SHORT TITLE Tuition Classification of Certain Citizens

SB

ANALYST Williams

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

Indeterminate Recurring

General Fund ---

- higher educa-

tion funding

formula

Indeterminate Recurring

General Fund –

State Student

Financial Aid

Indeterminate Recurring Lottery Scholar-

ship Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY05

FY06

Indeterminate

Recurring Other State Funds –

Tuition revenue of

institutions

(Parenthesis ( ) Indicate Revenue Decreases)

Relates to Senate Bill 582, House Bill 584 and Senate Bill 482, Senate Bill 546

Relates to numerous student financial aid and lottery scholarship program bills

SOURCES OF INFORMATION

LFC Files

Commission on Higher Education (CHE)

SUMMARY

Synopsis of Bill

House Bill 983 requires non-United States citizens to be classified on the same basis as citizens

House Bill 983 -- Page 2

when determining tuition rates at state educational institutions included in Article 12, Section 11

of the New Mexico Constitution. Non-United States citizen is defined as a person and the per-

son’s children who are not citizens.

Significant Issues

The bill is targeted to those individuals who are lawfully in the United States. This bill appears

to target a different group of students than Senate Bill 582.

In November 2004, the CHE revised its residency regulation (5.7.18 NMAC). One of the

changes approved was to delete the former section 5.7.18.9 D. which defined “Non-U.S. Citi-

zen”. The language that was deleted from the regulation read as follows: ““Non-U.S. citizen”

means persons and their children who are not citizens of the United States shall be classified as

residents or non-residents on the same basis as citizens of the United States if they are lawfully

in the United States and have obtained permanent resident status from the Immigration and Natu-

ralization Service (INS). Non-citizens on other visas (e.g. diplomatic student, visitors or visiting

scholars) shall be classified as nonresidents. Service in the armed forces of the United States

shall entitle the noncitizen to be classified as nonresident or resident on the same basis as a citi-

zen.” The impact of this change was to provide institutions with broader discretion in determin-

ing the residency status of prospective students according to the overall residency policy.

FISCAL IMPLICATIONS

The bill does not include an appropriation. Data on the size of the eligible group in New Mexico

is currently not available, and the fiscal impact is indeterminate. To the extent this legislation

would permit additional non-United States citizens who are legally living in the United States to

attend New Mexico post-secondary institutions at resident tuition rates, then the bill could in-

crease general fund expenditures for the higher education system.

ADMINISTRATIVE IMPLICATIONS

CHE notes a revision to rules and regulations governing residency for tuition purposes would be

needed if this legislation is enacted.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

See related bills above

OTHER SUBSTANTIVE ISSUES

To evaluate impacts of potential changes to the lottery tuition scholarship program, the legisla-

ture may wish to consider requiring an annual review and reporting to the Legislative Finance

Committee, Legislative Education Study Committee, Department of Finance and Administration

and the Office of the Governor by:

•

New Mexico Lottery Authority on revenue situation and outlook and

•

Commission on Higher Education on

o

expenditure situation and outlook

o

fund balance situation and outlook

House Bill 983 -- Page 3

o

policy and fiscal impacts of each change to lottery scholarship program enacted

by the 2004 legislature

POSSIBLE QUESTIONS

1.

How would aliens with a visa permitting permanent residence be classified for resi-

dency/tuition purposes at higher education institutions under this bill.

2.

Would this language apply to international students attending a New Mexico public, post-

secondary institution on a student visa.

AW/yr