0001|                               AN ACT
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0002| RELATING TO PUBLIC SCHOOLS; AMENDING THE INCENTIVES FOR SCHOOL
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0003| IMPROVEMENT ACT TO PROVIDE REWARDS TO SCHOOLS THAT PERFORM HIGHER THAN
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0004| EXPECTED.
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0005| 
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0006| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0007|      Section 1.  Section 22-13A-1 NMSA 1978 (being Laws 1989, Chapter
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0008| 137, Section 1) is amended to read:
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0009|      "22-13A-1.  SHORT TITLE.--Chapter 22, Article 13A NMSA 1978 may
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0010| be cited as the "Incentives for School Improvement Act"."
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0011|      Section 2.  Section 22-13A-2 NMSA 1978 (being Laws 1989, Chapter
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0012| 137, Section 2) is amended to read:
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0013|      "22-13A-2.  PURPOSE.--The purpose of the Incentives for School
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0014| Improvement Act is to provide financial incentives to individual
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0015| schools that exceed expected academic performance."
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0016|      Section 3.  Section 22-13A-4 NMSA 1978 (being Laws 1989, Chapter
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0017| 137, Section 4) is amended to read:
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0018|      "22-13A-4.  PROGRAM CREATED--ADMINISTRATION--PROGRAM
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0019| APPROVAL.--The "incentives for school improvement program" is created. 
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0020| The program shall be administered by the department.  The department
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0021| shall develop a standardized method to measure the progress of
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0022| students enrolled in public schools in school districts throughout the
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0023| state.  The standardized method developed shall be reviewed and
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0024| approved by the state board."
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0025|      Section 4.  Section 22-13A-5 NMSA 1978 (being Laws 1989, Chapter
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0001| 137, Section 5) is amended to read:
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0002|      "22-13A-5.  PROGRAM IMPLEMENTATION--MEASUREMENT CRITERIA.--
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0003|           A.  The department shall develop a formula by which to
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0004| measure school achievement in the areas of academic performance with
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0005| consideration of socioeconomic variables.  The product of this formula
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0006| shall take the form of a composite rating assigned to each school in
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0007| every school district.
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0008|           B.  Academic performance shall be measured by:
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0009|                (1)  nationally standardized test scores;
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0010|                (2)  graduation competency scores; and
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0011|                (3)  other factors deemed relevant by the department.
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0012|           C.  The socioeconomic variables shall be measured by:
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0013|                (1)  the percentage of student mobility rates;
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0014|                (2)  the percentage of limited English-proficient
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0015| students using criteria established by the federal office of civil
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0016| rights;
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0017|                (3)  the percentage of students eligible for free and
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0018| reduced-fee lunches; and
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0019|                (4)  other factors deemed relevant by the department.
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0020|           D.  Annually, the department shall assign a new composite
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0021| rating to each school.  The department shall compare the new rating to
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0022| the previous annual rating.  Schools increasing their composite rating
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0023| shall be ranked in order. The schools evidencing the greatest increase
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0024| in rating shall receive monetary disbursements from the fund."
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0025|      Section 5.  Section 22-13A-6 NMSA 1978 (being Laws 1989, Chapter
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0001| 137, Section 6) is amended to read:
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0002|      "22-13A-6.  FUND CREATED.--
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0003|           A.  There is created in the state treasury the "incentives
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0004| for school improvement fund".  The fund shall consist of any state
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0005| money appropriated to the fund, any federal money allocated to the
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0006| state for the purposes of the Incentives for School Improvement Act,
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0007| undistributed annual balances and earnings of the fund and any gifts
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0008| or bequests made to the fund.  The state treasurer shall invest the
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0009| fund as other state funds are invested.  The balance remaining in the
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0010| fund at the end of the fiscal year shall not revert to the general
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0011| fund.
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0012|           B.  The fund is appropriated to the department for the
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0013| purpose of implementing and administering the Incentives for School
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0014| Improvement Act.  No more than three percent of the fund may be
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0015| retained by the department for administrative purposes.
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0016|           C.  Money in the fund other than that used for
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0017| administrative purposes shall be distributed directly to schools
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0018| evidencing the greatest improvement as determined by the
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0019| department.  Disbursements shall be made only to that number of
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0020| schools constituting not more than ten percent of the student
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0021| membership in the state.  Distributions shall be made
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0022| proportionately to schools that qualify.  Money received by a
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0023| school from the fund shall not be used for salaries, salary
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0024| increases or bonuses.  Money shall be used as determined by the
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0025| school principal and teachers in cooperation with other school
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0001| employees and the community."                 
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