NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Room 416 of the State Capitol Building.

(Parenthesis ( ) Indicate Revenue Decreases)

Relates to HB9, HB23, HB259, HB736, HB763, HB811, SB13, SB14, SB126 SB251, SB527, SB550 SB652, SB669, SB729

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SOURCES OF INFORMATION

Commission on Higher Education (CHE)

SUMMARY

Synopsis of Bill

This bill changes the for the lottery tuition scholarship providing that the award can be used for any undergraduate educational expense and can be awarded beginning the 1^st semester of post-secondary educational enrollment provided that student recipients maintain a GPA of 2.5 or higher on a 4.0 scale. Recipients may receive the award for a total of eight consecutive semesters.

The State Treasurer shall administer the Scholars' Awards Fund. The Scholars' Awards are appropriated to New Mexico's public post-secondary educational institutions proportional to their Freshmen full time equivalent enrollment in the Fall semester of the previous year. Based upon information provided by the New Mexico Lottery Authority, the Commission on Higher Education shall estimate the amount of money available for Scholars' Awards and establish the maximum amount of educational expenses that shall be awarded at each institution. The maximum award shall be the same for each institution regardless of the actual cost of attendance.

This bill repeals Laws of 1995, Chapter 155, Section 38 and applies to students enrolling in New Mexico post-secondary educational institutions beginning after July 1, 1999.

FISCAL IMPLICATIONS

While this bill makes no appropriation, changes to current law will impact the lottery tuition fund.

According to the CHE, the fiscal impact is significant as current eligibility is expected to outpace anticipated net lottery revenues. The CHE expects to reduce current awards to 80% to 90% of tuition for future years.

ADMINISTRATIVE IMPLICATIONS

This bill requires that post-secondary educational institutions shall cooperate with the CHE by providing data and information necessary to develop criteria and guidelines for Scholars' Awards.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

This bill relates to House Bills 9, 23, 259, 736, 763, and 811; and Senate Bills 13, 14, 126, 251, 527, 550, 652, 669, and 729 all of which deal with redistribution of lottery net revenue or change eligibility for the lottery tuition scholarships.

OTHER SUBSTANTIVE ISSUES

According to the CHE, the method for determining award amounts described in this bill can greatly benefit students at two-year institutions as the award will buy more than at higher priced four-year universities.

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