A. The commission on higher education [higher education department] shall conduct a thorough study to determine the feasibility of creating a prepaid higher education tuition program, which shall include requirements that:
(1) prepaid tuition contracts, once paid, will cover all tuition and required fees of the institution of higher education;
(2) payments for prepaid tuition contracts may be made either in a lump sum or in installments;
(3) the prepaid tuition contracts shall:
(a) allow purchasers to choose from payment plans that pay the tuition and required fees for either a community college, four-year or in-state, private post-secondary educational institution;
(b) allow for rollover of prepaid higher education tuition benefits from one plan to another, and that provide that benefits may be used at any community college, four-year or in-state, private post-secondary educational institution;
(c) include penalties for termination of the contract or default on any of the contract's terms or conditions; and
(d) include provisions that allow purchasers to change or switch beneficiaries;
(4) beneficiaries meet certain minimum eligibility requirements;
(5) when setting contract prices, the commission [department] consider:
(a) the amount and estimated rate of increase of tuition and fees at institutions of higher education;
(b) expected investment returns;
(c) estimated administrative costs; and
(d) the period between the date the contract is entered into and the date the beneficiary is projected to graduate from high school;
(6) allow for gifts or bequests either on behalf of a beneficiary or to the fund generally;
(7) institutions of higher education are either required to participate or that the commission [department] may specify how and when institutions of higher education become eligible to participate in the program;
(8) benefits under a prepaid tuition contract are excluded from any calculation of a beneficiary's state student-aid eligibility; and
(9) a program established pursuant to the requirements set forth in this section shall not obligate or encumber any money deposited in the state permanent fund, the severance tax bond fund or any money that is a part of a state-funded financial aid program.
B. The commission [department] shall report its findings to the appropriate interim legislative committee no later than October 15, 1997. The report shall include a recommendation from the commission [department] regarding the feasibility of implementing a prepaid higher education tuition program based on the requirements set forth in Subsection A of this section.
History: Laws 1997, ch. 206, § 1.
Bracketed material. — The bracketed material was inserted by the compiler and is not part of the law.
For designation of the commission on higher education as the higher education department, see 9-25-4.1 NMSA 1978.
Structure New Mexico Statutes
Chapter 21 - State and Private Education Institutions
Article 1 - General Provisions Relating to State Educational Institutions
Section 21-1-1 - State institutions; admission requirements to be established by boards of regents.
Section 21-1-1.2 - Dual credit for high school and post-secondary classes.
Section 21-1-2 - Matriculation and tuition fees.
Section 21-1-2.1 - Scholarship program established.
Section 21-1-3 - State educational institutions; resident students.
Section 21-1-4 - Tuition and general fee charges; definitions.
Section 21-1-4.1 - Tuition payments; residents conscripted into military service.
Section 21-1-4.7 - Foster child tuition and fee waiver eligibility; notification.
Section 21-1-7 - Removal of faculty members; compensation of secretary and treasurer restricted.
Section 21-1-7.1 - Post-tenure review process required.
Section 21-1-7.2 - Reporting; commission on higher education [higher education department].
Section 21-1-7.3 - Temporary provisions; tenure study.
Section 21-1-8 - [Eligibility for retirement pension.]
Section 21-1-9 - [Expenses of members of boards of regents.]
Section 21-1-10 - Delegation of authority.
Section 21-1-11 - [Allocation of funds.]
Section 21-1-12 - [Annual reports; contents.]
Section 21-1-14 - [Quarterly and special meetings of boards.]
Section 21-1-15 - [One member of board to reside in adjacent municipality.]
Section 21-1-16 - [Public inspection of board records.]
Section 21-1-16.1 - State institutions of higher education; presidential searches.
Section 21-1-17 - Interest in contracts by board members or employees prohibited.
Section 21-1-18 - [No personal liability for official actions.]
Section 21-1-19 - [Oaths of board members; filing.]
Section 21-1-20 - Power to hold property.
Section 21-1-21 - Capital expenditures.
Section 21-1-21.1 - State educational institutions; adequate parking.
Section 21-1-22 - [Nonsectarian operation required.]
Section 21-1-24 - Graduate programs.
Section 21-1-26 - Higher education department; general powers.
Section 21-1-26.1 - Additional duties.
Section 21-1-26.2 - Post-secondary education; adult correctional facilities.
Section 21-1-26.3 - Verification function.
Section 21-1-26.7 - Annual accountability report.
Section 21-1-26.9 - Limitation; higher education department; review of proposed campuses.
Section 21-1-26.11 - Higher education department; additional duties.
Section 21-1-26.12 - Educational needs and guidelines; accountability reports.
Section 21-1-27 - Higher education department; distribution of available funds.
Section 21-1-27.1 - Higher education endowment fund created.
Section 21-1-27.2 - Technology enhancement fund created; allocations; application review panels.
Section 21-1-27.3 - Higher education performance fund; created; administration; distributions.
Section 21-1-27.4 - Higher education program development enhancement fund; purpose.
Section 21-1-27.5 - Adult basic education fund created.
Section 21-1-27.7 - Fund created.
Section 21-1-27.8 - Adult basic education; instructional materials.
Section 21-1-27.10 - Fund created; tribal college dual credit program fund; administration.
Section 21-1-27.11 - Centers of excellence.
Section 21-1-32 - Purpose of act.
Section 21-1-33 - System of accounting and reporting; manual.
Section 21-1-34 - Educational television equipment replacement fund; disbursement.
Section 21-1-36 - New Mexico cooperative education program; purpose.
Section 21-1-37 - New Mexico cooperative education program created; administration; duties.
Section 21-1-39 - Legislative findings.
Section 21-1-40 - Prepaid higher education tuition program; feasibility study; guidelines.
Section 21-1-41 - Military access to a post-secondary educational institution.
Section 21-1-42 - Public post-secondary educational institutions; student identification number.
Section 21-1-44 - School leadership institute; created; purpose.
Section 21-1-46 - Request for access to social networking account prohibited.
Section 21-1-47 - Statewide advanced placement policy.
Section 21-1-48 - Regional two plus two pilot project; eligibility; evaluation and reporting.