HB 100 ADULT ONLINE LEARNER SCHOLARSHIP ACT

Rep Ambrose M Castellano

Actions: HPREF [2] HEC/HAFC-HEC

Scheduled: Not Scheduled

 House Bill 100 (HB 100) creates the Adult Online Learner Scholarship program with a focus on specific, critical workforce needs. HB 100 creates funds and makes appropriations.
 

 House Bill 100 (HB 100) creates the Adult Online Learner Scholarship Program (program). The Higher Education Department (HED) will administer the program and create rules to carry out the provisions in HB 100. The scholarships will prioritize eligible awardees from rural areas, minorities, low-income, and first-generation students. HED in conjunction with other cabinet departments will develop and update annually the critical workforce need list. The total scholarships, financial aid, and personal contributions cannot exceed the student’s cost of tuition and fees. Awardees must maintain a 2.0 out of 4.0 grade point average or satisfactory progress on a competency system and maintain in-state residency. The maximum number of semesters for the program is 10.

Eligible students accepting a scholarship agree to work in the state for at least two years. A scholarship may be terminated if the student withdraws from their program; does not make satisfactory academic progress; does not maintain New Mexico residency; noncompliance with HED rules for the program; or hasn’t completed their program within the time limit or taken courses for more than six months.

Critical workforce need is a list of public- or private-sector occupations which New Mexico has a critical shortage of residents qualified to fill positions. Eligible students are state residents at least 26 years old; has not received a terminal certificate or degree on the critical need list; demonstrates financial need; and is enrolled at least half time.

HB 100 creates the Adult Online Learner Scholarship Fund and an endowment fund. Until 50% of the investment income exceeds $2 million, an annual distribution of $2 million will be made from the endowment fund to the scholarship fund. Until the endowment fund reaches $40 million 50% of investment income remains in the endowment fund and 50% is distributed to the scholarship fund. Once a $40 million balance is achieved 100% of investment income will be distributed to the scholarship fund. HB 100 appropriates $5 million from the General Fund (GF) to the endowment fund in Fiscal Year 2024 (FY24). Another appropriation from the GF in the amount of $2 million is deposited to the scholarship fund in FY25 and subsequent years.

HED will prepare an annual report on the efficacy of the program for the governor and relevant legislative interim committees and include workforce data, program modifications, and funding.