SEC/SB 355

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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.--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" or "department" means the higher

education department;

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 later than one hundred twenty days 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

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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 scholarship

may be awarded to an eligible student who:

A. has not earned a baccalaureate degree at the

time the scholarship is awarded;

B. has demonstrated financial need consistent

with the criteria promulgated by the department; and

C. has complied with other rules promulgated by

the 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 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

eligible students. Qualifications shall be determined by

rule of the department.

C. The department shall allocate money to public

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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 department.

E. Money for 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 eligible student continues to meet the

conditions of eligibility, until the eligible student

graduates from a four-year public post-secondary educational

institution."

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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 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 eligible student to achieve

satisfactory academic progress; or

C. substantial noncompliance by the 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 to the fund; and income from investment of the fund

except as provided in Subsection C of this section.

B. The "college affordability scholarship fund"

is created as a nonreverting fund in the state treasury,

consisting of income from investment of the fund and any

specified distributions, appropriations, gifts, grants and

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donations to the fund. Money in the scholarship fund is

appropriated to the 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

secretary of higher education or the secretary's authorized

representative.

C. Until fifty percent of the annual income from

investment of the college affordability endowment fund is

equal to or exceeds two million dollars ($2,000,000), an

annual distribution of two million dollars ($2,000,000) shall

be made from the college affordability endowment fund to the

college affordability scholarship fund. Thereafter, 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. After the corpus of the endowment fund is

two hundred fifty million dollars ($250,000,000), all of the

income from investment of the fund shall be distributed to

the college affordability scholarship fund."

Section 8. EFFECTIVE DATE.--The effective date of the

provisions of this act is July 1, 2007.