44TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 1999

RELATING TO POST-SECONDARY EDUCATION; AMENDING PROVISIONS FOR LOTTERY TUITION SCHOLARSHIPS TO PROVIDE FOR SCHOLARS' AWARDS FOR OTHER EDUCATIONAL EXPENSES IN ADDITION TO TUITION; AMENDING SECTIONS OF THE NMSA 1978.

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

Section 1. Section 6-24-23 NMSA 1978 (being Laws 1995, Chapter 155, Section 23, as amended) is amended to read:

"6-24-23. LOTTERY [TUITION] SCHOLARS' AWARDS FUND CREATED--PURPOSE.--

A. The "lottery [tuition] scholars' awards fund" is created in the state treasury. The fund shall be administered by the [commission on higher education] state treasurer. 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. After appropriation, if any, by the legislature for [scholarships] scholars' awards pursuant to Subsection C of Section 21-1-2 NMSA 1978, the remaining money in the lottery [tuition] scholars' awards fund is appropriated to [the commission on higher education for distribution to] New Mexico's public post-secondary educational institutions proportional to their freshman full-time-equivalent enrollment in the fall semester in the previous fiscal year to provide [tuition] assistance for New Mexico resident [undergraduates] undergraduate educational expenses as provided by law."

Section 2. Section 6-24-24 NMSA 1978 (being Laws 1995, Chapter 155, Section 24) is amended to read:

"6-24-24. DISPOSITION OF REVENUE.--

A. As nearly as practical, an amount equal to at least fifty percent of the gross annual revenues from the sale of lottery tickets shall be returned to the public in the form of lottery prizes.

B. The authority shall transmit all net revenues to the state treasurer, who shall deposit sixty percent of the revenues in the public school capital outlay fund for expenditure pursuant to the provisions of the Public School Capital Outlay Act and forty percent in the lottery [tuition] scholars' awards fund. Estimated net revenues shall be transmitted monthly to the state treasurer for deposit in the funds, provided the total amount of annual net revenues for the fiscal year shall be transmitted no later than August 1 each year.

C. In determining net revenues, operating expenses of the lottery include all costs incurred in the operation and administration of the lottery and all costs resulting from any contracts entered into for the purchase or lease of goods or services required by the lottery, including [but not limited to] the costs of supplies, materials, tickets, independent audit services, independent studies, data transmission, advertising, promotion, incentives, public relations, communications, commissions paid to lottery retailers, printing, distribution of tickets, purchases of annuities or investments to be used to pay future installments of winning lottery tickets, debt service and payment of any revenue bonds issued, contingency reserves, transfers to the reserve fund and any other necessary costs incurred in carrying out the provisions of the New Mexico Lottery Act.

D. An amount up to two percent of the gross annual revenues shall be set aside as a reserve fund to cover bonuses and incentive plans for lottery retailers, special promotions for retailers, purchasing special promotional giveaways, sponsoring special promotional events, compulsive gambling rehabilitation and such other purposes as the board deems necessary to maintain the integrity and meet the revenue goals of the lottery. The board shall report annually to the governor and each regular session of the legislature on the use of the money in the reserve fund. Any balance in excess of fifty thousand dollars ($50,000) at the end of any fiscal year shall be transferred to the lottery [tuition] scholars' awards fund."

Section 3. Section 6-24-27 NMSA 1978 (being Laws 1995, Chapter 155, Section 27) is amended to read:

"6-24-27. REVENUE AND BUDGET REPORTS--RECORDS--INDEPENDENT AUDITS.--

A. The board shall:

(1) submit quarterly and annual reports to the governor, legislative finance committee and lottery oversight committee disclosing the total lottery revenue, prizes, commissions, ticket costs, operating expenses and net revenues of the authority during the reporting period and, in the annual report, describe the organizational structure of the authority and summarize the functions performed by each organizational division within the authority;

(2) maintain weekly or more frequent records of lottery transactions, including the distribution of lottery tickets to retailers, revenue received, claims for prizes, prizes paid, prizes forfeited and other financial transactions of the authority; and

(3) use the state government fiscal year.

B. The board shall provide, for informational purposes, to the department of finance and administration and the legislative finance committee, by December 1 of each year, a copy of the annual proposed operating budget for the authority for the succeeding fiscal year. This budget proposal shall also be accompanied by an estimate of the net revenues to be deposited in the public school capital outlay fund and the lottery [tuition] scholars' awards fund for the current and succeeding fiscal years.

C. The board shall contract with an independent certified public accountant or firm for an annual financial audit of the authority. The certified public accountant or firm shall have no financial interest in any lottery contractor. The certified public accountant or firm shall present an audit report no later than March 1 for the prior fiscal year. The certified public accountant or firm shall evaluate the internal auditing controls in effect during the audit period. The cost of this financial audit shall be an operating expense of the authority. The legislative finance committee may, at any time, order an audit of any phase of the operations of the authority, at the expense of the authority, and shall receive a copy of the annual independent financial audit. A copy of any audit performed by the certified public accountant or ordered by the legislative finance committee shall be transmitted to the governor, the speaker of the house of representatives, the president pro tempore of the senate, the legislative finance committee and the lottery oversight committee."

Section 4. Section 21-1-2 NMSA 1978 (being Laws 1970, Chapter 9, Section 1, as amended) is amended to read:

"21-1-2. MATRICULATION AND TUITION FEES.--

A. Except as otherwise provided in this section and in Section 21-1-4.3 NMSA 1978, the boards of regents of the university of New Mexico, New Mexico state university, New Mexico highlands university, western New Mexico university, eastern New Mexico university, New Mexico military institute, New Mexico institute of mining and technology and New Mexico junior college shall establish and charge matriculation fees and tuition fees as follows:

(1) each student shall be charged a matriculation fee of not less than five dollars ($5.00) upon enrolling in each institution;

(2) each student who is a resident of New Mexico shall be charged a tuition fee of not less than twenty dollars ($20.00) a year;

(3) each student who is not a resident of New Mexico shall be charged a tuition fee of not less than fifty dollars ($50.00) a year;

(4) each student shall be charged a tuition fee of not less than ten dollars ($10.00) for each summer session; and

(5) each student may be charged a tuition fee for extension courses.

B. Except as otherwise provided in this section and in Section 21-1-4.3 NMSA 1978, the board of regents of northern New Mexico state school shall establish and charge each student a matriculation fee and a tuition fee.

C. The board of regents of each institution may establish and grant scholars' awards or gratis scholarships to students who are residents of New Mexico. [in an amount] Gratis scholarships shall not [to] exceed the matriculation fee or tuition and fees, or both. Except as provided in Section 21-1-4.3 NMSA 1978, the number of scholarships established and granted shall not exceed three percent of the preceding fall semester enrollment in each institution and shall not be established and granted for summer sessions. The president of each institution shall select and recommend to the board of regents of his institution, as recipients of scholarships, students who possess good moral character and satisfactory initiative, scholastic standing and personality. At least thirty-three and one-third percent of the gratis scholarships established and granted by each board of regents each year shall be granted on the basis of financial need.

D. The board of regents of each institution set out in this subsection may establish and grant, in addition to those scholarships provided for in Subsection C of this section, athletic scholarships for tuition and fees. In no event shall the board of regents of any institution be allowed to award scholarships for tuition and fees for more than the number of athletic scholarships set out in this subsection and in no event shall more than seventy-five percent of the scholarships granted be for out-of-state residents:

(1) the board of regents of the university of New Mexico may grant up to two hundred ninety-three athletic scholarships;

(2) the board of regents of New Mexico state university may grant up to two hundred seventy athletic scholarships;

(3) the boards of regents of New Mexico highlands university, eastern New Mexico university and western New Mexico university may each grant up to one hundred forty athletic scholarships; and

(4) the board of regents of New Mexico junior college may grant up to fifty-two athletic scholarships.

E. In the event that the number of athletic scholarships exceeds the number of athletic scholarships permitted that institution by regulations and bylaws of the national collegiate athletic association or the national association of intercollegiate athletics of which that institution is a member, the appropriate board of regents shall reduce the number of authorized tuition scholarships to comply with association rules and regulations.

F. Matriculation fees and tuition fees shall be fixed and made payable as directed by the board of regents of each institution, collected by the officers of each institution and accounted for as are other funds of the institutions. Matriculation fees shall be charged only once for each institution in which a student enrolls."

Section 5. Section 21-1-4.3 NMSA 1978 (being Laws 1996, Chapter 71, Section 3) is amended to read:

"21-1-4.3. [TUITION SCHOLARSHIPS] SCHOLARS' AWARDS AUTHORIZED--CERTAIN EDUCATIONAL INSTITUTIONS.--

A. To the extent that funds are made available by the legislature from the [lottery tuition] scholars' awards fund, the boards of regents of New Mexico state university, New Mexico institute of mining and technology, eastern New Mexico university, western New Mexico university, the university of New Mexico, New Mexico highlands university [and], northern New Mexico state school, Albuquerque Technical-Vocational Institute, San Juan college, Mesa technical college, Santa Fe community college, New Mexico junior college, Clovis community college and Luna vocational-technical institute shall [award tuition scholarships] grant scholars' awards for qualified resident students attending their respective institutions and branches of those institutions.

B. [Except as authorized in Subsection C of this section] The [tuition scholarships] scholars' awards 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 one of the state educational institutions set forth in this section or one of the branches of those institutions. Each [tuition scholarship] scholars' award shall be awarded for up to four consecutive years beginning the [second] first 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 his first semester of full-time enrollment.

C. The tuition scholarships authorized in this section shall also apply 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, attend a two-year public post-secondary educational institution in New Mexico and who, upon the completion of that curriculum or at the end of two years, whichever is sooner, transfer to one of the post-secondary state educational institutions set forth in this section. Those students shall be eligible for a tuition scholarship for two consecutive years, provided that those students maintain residency in New Mexico, maintain a grade-point average of 2.5 or higher on a 4.0 scale and attend the institution full time during the regular academic year.

D.] C. The commission on higher education shall prepare guidelines setting forth explicit student continuing eligibility criteria and guidelines for administration of the [tuition scholarship] scholars' awards program. The post-secondary educational institutions shall cooperate with the commission by providing data and information necessary to develop the criteria and guidelines. Guidelines shall be distributed to the board of regents of each institution to enable a uniform availability of the resident student [tuition scholarships] scholars' awards.

D. Scholars' awards may be granted for educational expenses, including tuition, books, fees, room or board."

Section 6. Section 21-1-4.4 NMSA 1978 (being Laws 1996, Chapter 71, Section 4) is amended to read:

"21-1-4.4. COMMISSION ON HIGHER EDUCATION--DETERMINATION OF [TUITION] SCHOLARS' AWARDS SCHOLARSHIPS--USE OF LOTTERY [TUITION] SCHOLARS' AWARDS FUND.--Prior to [June] September 1 of each year, the commission on higher education shall [determine] estimate the amount of money available for [tuition] scholars' awards scholarships at state public post-secondary educational institutions based on information provided by the New Mexico lottery authority. Based on the amount appropriated by the legislature from the lottery [tuition] scholars' awards fund and on the projected enrollment at all public post-secondary educational institutions, the commission on higher education shall establish the [percentage of tuition] maximum amount of educational expenses that shall be awarded for qualified resident students attending New Mexico public post-secondary educational institutions. The [percentage of tuition] maximum amount of educational expenses awarded shall be the same for each institution, regardless of the actual cost of [tuition at] attending each institution."

Section 7. 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 [shall be] 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 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] scholars' awards fund, the community college board shall [award tuition scholarships] grant scholars' awards for qualified resident students attending their respective institutions.

D. The [tuition scholarships] scholars' awards 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 [tuition scholarship] scholars' award 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 his first semester of full-time enrollment].

E. The commission on higher education shall prepare guidelines setting forth explicit student continuing eligibility criteria and guidelines for administration of the [tuition scholarship] scholars' awards program. Guidelines shall be distributed to community college boards to enable a uniform availability of the resident student [tuition scholarship] scholars' awards."

Section 8. Section 21-16-10.1 NMSA 1978 (being Laws 1996, Chapter 71, Section 6) is amended to read:

"21-16-10.1. [TUITION SCHOLARSHIPS] SCHOLARS' AWARDS AUTHORIZED.--

A. To the extent that funds are made available by the legislature from the lottery [tuition] scholars' awards fund, the board of a technical and vocational institute shall award [tuition scholarships] scholars' awards for qualified resident students attending a technical and vocational institute.

B. The [tuition scholarships] scholars' awards 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 technical and vocational institute. Each [tuition scholarship] scholars' award 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 his first semester of full-time enrollment].

C. The commission on higher education shall prepare guidelines setting forth explicit student continuing eligibility criteria and guidelines for administration of the [tuition scholarship] scholars' awards program. Guidelines shall be distributed to the boards of technical and vocational institutes to enable a uniform availability of the resident student [tuition scholarships] scholars' awards."

Section 9. Section 21-17-6.1 NMSA 1978 (being Laws 1996, Chapter 71, Section 7) is amended to read:

"21-17-6.1. [TUITION SCHOLARSHIPS] SCHOLARS' AWARDS AUTHORIZED.--

A. To the extent that funds are made available by the legislature from the lottery [tuition] scholars' awards fund, the board of an area vocational school shall award [tuition scholarships] scholars' awards for qualified resident students attending its area vocational school.

B. The [tuition scholarships] scholars' awards 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 an area vocational school. Each [tuition scholarship] scholars' awards 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 his first semester of full-time enrollment].

C. The commission on higher education shall prepare guidelines setting forth explicit student qualification criteria and guidelines for administration of the [tuition scholarship] scholars' awards program. Guidelines shall be distributed to the boards of all area vocational schools to enable a uniform availability of the resident student [tuition scholarships] scholars' awards."

Section 10. APPLICABILITY.--The provisions of this act shall apply to students enrolling in New Mexico post-secondary educational institutions beginning after July 1, 1999.

Section 11. REPEAL.--Laws 1995, Chapter 155, Section 38 is repealed.