HB0254

HOUSE BILL 254

51st legislature - STATE OF NEW MEXICO - second session, 2014

INTRODUCED BY

James E. Smith and Jacob R. Candelaria

AN ACT

RELATING TO HIGHER EDUCATION; ENACTING THE LOTTERY TUITION FUND ACT TO EXTEND THE FINANCIAL SOLVENCY OF THE LOTTERY TUITION FUND; CHANGING THE AMOUNTS OF AWARDS; AMENDING, REPEALING, RECOMPILING AND ENACTING SECTIONS OF THE NMSA 1978; DECLARING AN EMERGENCY.

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

SECTION 1. [NEW MATERIAL] SHORT TITLE.--Sections 1 through 8 of this act may be cited as the "Lottery Tuition Fund Act".

SECTION 2. [NEW MATERIAL] DEFINITIONS.--As used in the Lottery Tuition Fund Act:

A. "community college" means a branch community college of a state educational institution or a community college or technical and vocational institute established pursuant to Chapter 21, Article 13 or 16 NMSA 1978, respectively;

B. "comprehensive institution" means eastern New Mexico university, western New Mexico university, New Mexico highlands university or northern New Mexico college;

C. "department" means the higher education department;

D. "fund" means the lottery tuition fund;

E. "legacy student" means a student who has received for three or more semesters by the end of fiscal year 2014 the legislative lottery scholarship awarded pursuant to the former provisions of Sections 21-1-4.3, 21-13-10 and 21-16-10.1 NMSA 1978 prior to the enactment of the Lottery Tuition Fund Act;

F. "lottery tuition scholarship" means a scholarship that provides tuition assistance per semester for a qualified student or a legacy student attending a public post-secondary educational institution;

G. "public post-secondary educational institution" means a community college, comprehensive institution, research institution or state educational institution;

H. "qualified student" means a full-time resident student who graduated from a public or accredited private New Mexico high school or who received a high school equivalency credential in New Mexico and who either:

(1) immediately upon graduation or receipt of a credential was accepted for entrance to and attended a public post-secondary educational institution; or

(2) within one hundred twenty days of completion of a high school curriculum or receipt of a high school equivalency credential began service in the United States armed forces and within one year of completion of honorable service or medical discharge from the service attended a public post-secondary educational institution;

I. "research institution" means the university of New Mexico, New Mexico state university or New Mexico institute of mining and technology; and

J. "state educational institution" means an institution of higher education enumerated in Article 12, Section 11 of the constitution of New Mexico.

SECTION 3. [NEW MATERIAL] LOTTERY TUITION SCHOLARSHIP--FORM--DEPARTMENT DETERMINATION.--

A. By August 1, 2014, the department shall develop and provide to all public post-secondary educational institutions a printed and electronic form for requesting a lottery tuition scholarship.

B. No later than May 1, 2015 and no later than May 1 of each subsequent year, based on the amount appropriated by the legislature from the fund and on the projected enrollment at all public post-secondary educational institutions, the department shall:

(1) determine the total amount of money available for lottery tuition scholarships at all public post-secondary educational institutions;

(2) maintain, increase or reduce the amounts of lottery tuition scholarships to award the maximum amount available while maintaining the solvency of the fund as projected in the most recent actuarial evaluation of the fund; and

(3) notify all public post-secondary educational institutions of the determinations made pursuant to Paragraphs (1) and (2) of this subsection.

SECTION 4. [NEW MATERIAL] LOTTERY TUITION SCHOLARSHIP--APPLICATION BY STUDENT.--Prior to consideration for a lottery tuition scholarship each year, a student shall timely:

A. submit to the intended public post-secondary educational institution a signed form requesting a lottery tuition scholarship; and

B. file a free application for federal student aid provided pursuant to the federal Higher Education Act of 1965 to produce an expected family contribution amount.

SECTION 5. [NEW MATERIAL] LOTTERY TUITION SCHOLARSHIPS--QUALIFIED STUDENTS--LEGACY STUDENTS--ELIGIBILITY.--

A. Beginning in fiscal year 2015, the boards of regents or governing bodies of public post-secondary educational institutions shall award lottery tuition scholarships to qualified students and legacy students attending their respective public post-secondary educational institutions pursuant to this section and to the extent that funds are made available by the legislature from the fund.

B. A legacy student is eligible to receive a lottery tuition scholarship for the full value of tuition until the total number of semesters for which the legislative lottery scholarship pursuant to the former provisions of Sections

21-1-4.3, 21-13-10 and 21-16-10.1 NMSA 1978 or the lottery tuition scholarship pursuant to the Lottery Tuition Fund Act was received reaches eight; provided that the legacy student maintains residency in New Mexico, maintains a grade point average of 2.5 or higher on a 4.0 scale and completes twelve or more credit hours per semester.

C. After a qualified student who is not a legacy student has completed the first semester of enrollment with twelve or more credit hours and a grade point average of 2.5 or higher on a 4.0 scale at a public post-secondary educational institution, the qualified student is eligible to receive the lottery tuition scholarship:

(1) until the total number of semesters for which the legislative lottery scholarship pursuant to the former provisions of Sections 21-1-4.3, 21-13-10 and 21-16-10.1 NMSA 1978 or the lottery tuition scholarship was received reaches seven for attendance at a research institution, comprehensive institution or state educational institution or reaches three consecutive semesters of attendance at a community college followed with no hiatus in attendance by four consecutive semesters of attendance at a research institution, comprehensive institution or state educational institution; and

(2) provided that the qualified student:

(a) maintains residency in New Mexico;

(b) maintains a grade point average of 2.5 or higher on a 4.0 scale; and

D. Notwithstanding the eligibility provisions for a qualified student and a legacy student set forth in this section, the department, in consultation with a student with disabilities and the office at a public post-secondary educational institution that serves students with disabilities, shall review the minimum number of credit hours and the maximum number of consecutive semesters required for eligibility and adjust either or both as deemed reasonable and appropriate, based on the needs of the student with disabilities who requires and requests an accommodation. In no case, however, shall fewer than six credit hours per semester be required, and in no case shall eligibility extend beyond fourteen consecutive semesters.

SECTION 6. [NEW MATERIAL] LOTTERY TUITION SCHOLARSHIP--COMPONENTS--UNMET NEED--MERIT--AMOUNTS.--

A. A lottery tuition scholarship for a qualified student who is not a legacy student for a semester at a public post-secondary educational institution shall be composed of:

(1) an unmet need award based on the expected family contribution and any tuition offset from all other state and federal scholarships and grants-in-aid awarded, combined to show unmet need in one of the following ranges:

(a) seven thousand dollars ($7,000) per year or higher;

(b) six thousand dollars ($6,000) to six thousand nine hundred ninety-nine dollars ($6,999) per year;

(d) one thousand dollars ($1,000) to three thousand nine hundred ninety-nine dollars ($3,999) per year; and

(e) nine hundred ninety-nine dollars ($999) or less per year; and

(2) a merit award based on the cumulative grade point average of a qualified student in the following ranges:

(a) 3.25 and above;

(b) 3.00 to 3.24;

(d) 2.50 to 2.74.

B. For one semester at a research institution:

(1) the maximum unmet need award shall be one thousand fifty dollars ($1,050), and the minimum unmet need award shall be six hundred fifty dollars ($650); and

(2) the maximum merit award shall be one thousand fifty dollars ($1,050), and the minimum merit award shall be seven hundred fifty dollars ($750).

C. For one semester at a comprehensive institution or a state educational institution:

(1) the maximum unmet need award shall be five hundred dollars ($500), and the minimum unmet need award shall be three hundred dollars ($300); and

(2) the maximum merit award shall be five hundred dollars ($500), and the minimum merit award shall be three hundred fifty dollars ($350).

D. For one semester at a branch campus of a research institution:

(1) the maximum unmet need award shall be four hundred dollars ($400), and the minimum unmet need award shall be two hundred dollars ($200); and

(2) the maximum merit award shall be four hundred dollars ($400), and the minimum merit award shall be two hundred fifty dollars ($250).

E. For one semester at a community college:

(1) the maximum unmet need award shall be three hundred dollars ($300), and the minimum unmet need award shall be one hundred dollars ($100); and

(2) the maximum merit award shall be three hundred dollars ($300), and the minimum merit award shall be one hundred fifty dollars ($150).

SECTION 7. Section 6-24-23 NMSA 1978 (being Laws 1995, Chapter 155, Section 23, as amended) is recompiled in the Lottery Tuition Fund Act and is amended to read:

"LOTTERY TUITION FUND CREATED--PURPOSE.--

A. The "lottery tuition fund" is created in the state treasury. The fund shall be administered by the [commission on higher education] department. Earnings from investment of the fund shall accrue to the credit of the fund. Any balance in the fund at the end of any fiscal year shall remain in the fund for appropriation by the legislature as provided in this section.

B. Money in the [lottery tuition] fund [is] shall be appropriated by the legislature to the [commission on higher education] department for distribution to New Mexico's public post-secondary educational institutions to provide tuition assistance for [New Mexico resident undergraduates as provided by law] qualified students and legacy students as provided in the Lottery Tuition Fund Act."

SECTION 8. [NEW MATERIAL] DEPARTMENT RULEMAKING AND REPORTING.--

A. The department shall promulgate rules setting forth explicit criteria for:

(1) student qualification and continuing eligibility;

(2) determining any increase or reduction in the amount of a lottery tuition scholarship award pursuant to the Lottery Tuition Fund Act; and

(3) guidelines for the administration of the lottery tuition scholarship program.

B. Immediately after promulgation, the rules shall be distributed to boards of regents and governing boards of public post-secondary educational institutions.

C. By November 1 of each year, the department shall report to the legislative finance committee and the department of finance and administration on:

(1) the status of the fund;

(2) lottery tuition scholarship program participation data aggregated for each public post-secondary educational institution to show:

(a) the number of qualified students and the number of legacy students who received lottery tuition scholarships in the prior twelve-month period;

(b) the total number of students, including qualified students and legacy students, enrolled in the prior twelve-month period;

(c) for each qualified student and each legacy student, the component amounts of the lottery tuition scholarship received and the amount of unmet need that was not offset by the lottery tuition scholarship;

(d) for each semester, the amount of lottery tuition scholarships funded and the amount of tuition costs that were not offset by the lottery tuition scholarship;

(e) the number of qualified students and the number of legacy students who graduated with a degree and, for each qualified student, the number of consecutive semesters and nonconsecutive semesters attended prior to graduation; and

(f) the number of qualified students and the number of legacy students who received a lottery tuition scholarship and subsequently became ineligible for a lottery tuition scholarship and the reasons for ineligibility; and

(3) any additional information required or requested by the legislative finance committee and the department of finance and administration.

SECTION 9. Section 21-13-10 NMSA 1978 (being Laws 1963, Chapter 17, Section 9, as amended) is amended to read:

"21-13-10. BOARD DUTIES.--

A. It is the duty of the community college board to determine financial and educational policies of the community college. The community college board shall provide for the management of the community college and execution of these policies by selecting a competent president for the community college, and, upon the president's recommendation, the board shall employ other administrative personnel, instructional staff or other personnel as may be needed for the operation, maintenance and administration of the community college.

B. The community college board shall have the power to fix tuition and fee rates for resident and nonresident students of the community college district, to accept gifts, to accept federal aid, to purchase, hold, sell and rent property and equipment and to promote the general welfare of the institution for the best interest of educational service to the people of the community college district.

[C. To the extent that funds are made available by the legislature from the lottery tuition fund, the community college board shall award legislative lottery scholarships for qualified resident students attending their respective institutions.

D. The legislative lottery scholarships authorized in this section shall apply only to full-time resident students who, immediately upon completion of a high school curriculum at a public or accredited private New Mexico high school or upon receiving a graduate equivalent diploma, are accepted for entrance to and attend a community college. Each legislative lottery scholarship shall be awarded for up to two consecutive years beginning the second semester of the recipient's first year of enrollment, provided that the recipient has maintained residency in New Mexico and maintained a grade point average of 2.5 or higher on a 4.0 scale during the first semester of full-time enrollment.

E. The higher education department shall prepare guidelines setting forth explicit student continuing eligibility criteria and guidelines for administration of the legislative lottery scholarship program. Guidelines shall be distributed to community college boards to enable a uniform availability of the resident student lottery tuition scholarships.

F. For purposes of the legislative lottery scholarship program as it applies to students with disabilities who may require special accommodations, the higher education department, in consultation with the student and the office at the community college that serves students with disabilities, shall review both the definition of "full time" and the maximum number of consecutive semesters of eligibility and adjust either or both as deemed reasonable and appropriate, based on the student's disability needs. In no case, however, shall "full time" mean fewer than six credit hours per semester, and in no case shall eligibility extend beyond fourteen consecutive semesters.]"

SECTION 10. REPEAL.--Sections 21-1-4.3, 21-1-4.4 and 21-16-10.1 NMSA 1978 (being Laws 1996, Chapter 71, Sections 3, 4 and 6, as amended) are repealed.

SECTION 11. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.

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