HOUSE BILL 73

49th legislature - STATE OF NEW MEXICO - first session, 2009

INTRODUCED BY

Ben Lujan

AN ACT

RELATING TO HIGHER EDUCATION; CHANGING THE DISTRIBUTION OF THE COLLEGE AFFORDABILITY ENDOWMENT FUND.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. Section 21-21L-8 NMSA 1978 (being Laws 2005, Chapter 192, Section 8, as amended by Laws 2007, Chapter 70, Section 7 and by Laws 2007, Chapter 71, Section 7 and also by Laws 2007, Chapter 85, Section 7) 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 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.]

          C. The annual distribution to the scholarship fund shall be five percent of the average of the year-end market values of the endowment fund for the immediately preceding five calendar years. Until the corpus of the endowment fund is two hundred fifty million dollars ($250,000,000), fifty percent of the annual distribution amount shall be applied to the corpus of the fund and fifty percent shall be distributed annually to the scholarship fund; provided, however, that at least two million dollars ($2,000,000) 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 annual distribution amount shall be distributed to the college affordability scholarship fund."

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