0001| HOUSE BILL 8
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0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003| INTRODUCED BY
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0004| SAMUEL F. VIGIL
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0005|
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0006|
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0007|
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0008| FOR THE LEGISLATIVE EDUCATION STUDY COMMITTEE
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0009|
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0010| AN ACT
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0011| RELATING TO PUBLIC SCHOOLS; CHANGING THE DISPOSITION OF STATE
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0012| LOTTERY REVENUES TO EARMARK SIXTY PERCENT OF NET REVENUES FOR
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0013| DISTRIBUTION TO PUBLIC SCHOOLS FOR CAPITAL OUTLAY EXPENDITURES
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0014| PURSUANT TO THE PUBLIC SCHOOL CAPITAL IMPROVEMENTS ACT AND FOR
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0015| EDUCATIONAL TECHNOLOGY PURSUANT TO THE TECHNOLOGY FOR EDUCATION
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0016| ACT; MAKING AN APPROPRIATION.
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0017|
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0018| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0019| Section 1. A new section of the New Mexico Lottery Act is
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0020| enacted to read:
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0021| "[NEW MATERIAL] LOTTERY PUBLIC SCHOOL CAPITAL FUND
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0022| CREATED--PURPOSES.--
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0023| A. The "lottery public school capital fund" is
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0024| created in the state treasury. The fund shall be administered
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0025| by the state department of public education. Earnings from
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0001| investment of the fund shall accrue to the credit of the fund.
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0002| Any balance in the fund at the end of any fiscal year shall
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0003| remain in the fund for use solely for the purposes of the fund.
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0004| B. Money in the lottery public school capital fund
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0005| shall be used only to carry out the provisions of the Public
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0006| School Capital Improvements Act and the Technology for
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0007| Education Act and is appropriated for those purposes. Annually
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0008| the state department of public education shall determine the
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0009| amount needed for distribution to school districts pursuant to
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0010| the Public School Capital Improvements Act and shall determine
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0011| the balance in the lottery public school capital fund on August
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0012| 1. Upon the determination of the amount to be distributed and
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0013| the fund balance as of August 1, the department shall transfer
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0014| that amount from that balance to the public school capital
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0015| improvements fund for distribution to school districts pursuant
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0016| to the Public School Capital Improvements Act. Any portion of
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0017| the August 1 balance remaining in the lottery public school
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0018| capital fund after the annual distribution to the public school
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0019| capital improvements fund shall be transferred to the
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0020| educational technology fund for expenditure in accordance with
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0021| the provisions of the Technology for Education Act."
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0022| Section 2. Section 6-24-24 NMSA 1978 (being Laws 1995,
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0023| Chapter 155, Section 24) is amended to read:
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0024| "6-24-24. DISPOSITION OF REVENUE.--
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0025| A. As nearly as practical, an amount equal to at
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0001| least fifty percent of the gross annual revenues from the sale
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0002| of lottery tickets shall be returned to the public in the form
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0003| of lottery prizes.
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0004| B. The authority shall transmit all net revenues to
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0005| the state treasurer who shall deposit sixty percent of the
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0006| revenues in the lottery public school capital [outlay] fund
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0007| for expenditure pursuant to the provisions of the Public School
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0008| Capital [Outlay] Improvements Act and the Technology for
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0009| Education Act and forty percent in the lottery tuition fund.
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0010| Estimated net revenues shall be transmitted monthly to the
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0011| state treasurer for deposit in the funds, provided the total
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0012| amount of annual net revenues for the fiscal year shall be
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0013| transmitted no later than August 1 [each] of the following
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0014| fiscal year.
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0015| C. In determining net revenues, operating expenses
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0016| of the lottery include all costs incurred in the operation and
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0017| administration of the lottery and all costs resulting from any
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0018| contracts entered into for the purchase or lease of goods or
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0019| services required by the lottery, including [but not limited
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to] the costs of supplies, materials, tickets, independent
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0021| audit services, independent studies, data transmission,
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0022| advertising, promotion, incentives, public relations,
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0023| communications, commissions paid to lottery retailers,
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0024| printing, distribution of tickets, purchases of annuities or
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0025| investments to be used to pay future installments of winning
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0001| lottery tickets, debt service and payment of any revenue bonds
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0002| issued, contingency reserves, transfers to the reserve fund and
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0003| any other necessary costs incurred in carrying out the
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0004| provisions of the New Mexico Lottery Act.
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0005| D. An amount up to two percent of the gross annual
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0006| revenues shall be set aside as a reserve fund to cover bonuses
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0007| and incentive plans for lottery retailers, special promotions
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0008| for retailers, purchasing special promotional giveaways,
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0009| sponsoring special promotional events, compulsive gambling
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0010| rehabilitation and such other purposes as the board deems
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0011| necessary to maintain the integrity and meet the revenue goals
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0012| of the lottery. The board shall report annually to the
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0013| governor and each regular session of the legislature on the use
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0014| of the money in the reserve fund. Any balance in excess of
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0015| fifty thousand dollars ($50,000) at the end of any fiscal year
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0016| shall be transferred to the lottery tuition fund."
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0017| Section 3. Section 6-24-27 NMSA 1978 (being Laws 1995,
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0018| Chapter 155, Section 27) is amended to read:
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0019| "6-24-27. REVENUE AND BUDGET REPORTS--RECORDS--
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0020| INDEPENDENT AUDITS.--
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0021| A. The board shall:
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0022| (1) submit quarterly and annual reports to the
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0023| governor, legislative finance committee and lottery oversight
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0024| committee disclosing the total lottery revenue, prizes,
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0025| commissions, ticket costs, operating expenses and net revenues
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0001| of the authority during the reporting period and, in the annual
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0002| report, describe the organizational structure of the authority
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0003| and summarize the functions performed by each organizational
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0004| division within the authority;
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0005| (2) maintain weekly or more frequent records
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0006| of lottery transactions, including the distribution of lottery
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0007| tickets to retailers, revenue received, claims for prizes,
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0008| prizes paid, prizes forfeited and other financial transactions
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0009| of the authority; and
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0010| (3) use the state government fiscal year.
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0011| B. The board shall provide, for informational
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0012| purposes, to the department of finance and administration and
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0013| the legislative finance committee, by December 1 of each year,
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0014| a copy of the annual proposed operating budget for the
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0015| authority for the succeeding fiscal year. This budget proposal
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0016| shall also be accompanied by an estimate of the net revenues to
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0017| be deposited in the [public school capital outlay fund]
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0018| lottery public school capital fund and the lottery tuition
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0019| fund for the current and succeeding fiscal years.
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0020| C. The board shall contract with an independent
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0021| certified public accountant or firm for an annual financial
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0022| audit of the authority. The certified public accountant or
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0023| firm shall have no financial interest in any lottery
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0024| contractor. The certified public accountant or firm shall
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0025| present an audit report no later than March 1 for the prior
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0001| fiscal year. The certified public accountant or firm shall
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0002| evaluate the internal auditing controls in effect during the
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0003| audit period. The cost of this financial audit shall be an
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0004| operating expense of the authority. The legislative finance
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0005| committee may, at any time, order an audit of any phase of the
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0006| operations of the authority, at the expense of the authority,
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0007| and shall receive a copy of the annual independent financial
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0008| audit. A copy of any audit performed by the certified public
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0009| accountant or ordered by the legislative finance committee
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0010| shall be transmitted to the governor, the speaker of the house
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0011| of representatives, the president pro tempore of the senate,
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0012| the legislative finance committee and the lottery oversight
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0013| committee."
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0014| Section 4. Section 22-15A-9 NMSA 1978 (being Laws 1994,
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0015| Chapter 96, Section 9) is amended to read:
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0016| "22-15A-9. EDUCATIONAL TECHNOLOGY FUND--DISTRIBUTION.--
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0017| A. Upon annual review and approval of a school
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0018| district's educational technology plan, the bureau shall
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0019| determine a separate distribution from the educational
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0020| technology fund for each school district.
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0021| B. On or before July 31 of each year, the bureau
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0022| shall distribute money in the educational technology fund
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0023| directly to each school district in an amount equal to ninety
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0024| percent of the district's estimated entitlement as determined
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0025| by the projected membership for the school year. A school
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0001| district's entitlement is that portion of the total amount of
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0002| the annual appropriation that the projected membership bears to
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0003| the projected membership of the state. Kindergarten membership
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0004| shall be calculated on a one-half full-time equivalent basis.
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0005| C. On or before January 30 of each year, the bureau
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0006| shall recompute each entitlement using the final funded
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0007| membership for that year and shall allocate the balance of the
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0008| annual appropriation adjusting for any over- or under-
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0009| projection of membership.
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0010| D. Any school district receiving funding pursuant
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0011| to the Technology for Education Act is responsible for the
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0012| purchase, distribution, use and maintenance of educational
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0013| technology.
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0014| E. As used in this section:
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0015| (1) "annual appropriation" means for a fiscal
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0016| year the sum of appropriations to the educational technology
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0017| fund for the fiscal year and state lottery revenues distributed
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0018| to the fund in that fiscal year; and
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0019| (2) "membership" means the total enrollment
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0020| of qualified students, as defined in the Public School Finance
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0021| Act, on the current roll of class or school on a specified day.
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0022| The current roll is established by the addition of original
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0023| entries and re-entries minus withdrawals. Withdrawal of
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0024| students, in addition to students formally withdrawn from the
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0025| public school, includes students absent from the public school
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0001| for as many as ten consecutive school days."
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0002| Section 5. Section 22-25-9 NMSA 1978 (being Laws 1975
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0003| (S.S.), Chapter 5, Section 9, as amended by Laws 1988, Chapter
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0004| 64, Section 44 and also by Laws 1988, Chapter 66, Section 2) is
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0005| amended to read:
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0006| "22-25-9. STATE DISTRIBUTION TO DISTRICT IMPOSING TAX
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0007| UNDER CERTAIN CIRCUMSTANCES.--
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0008| A. The [director] state superintendent shall
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0009| distribute to any school district that has imposed a tax under
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0010| the Public School Capital Improvements Act an amount from the
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0011| public school capital improvements fund that is equal to the
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0012| amount by which the revenue estimated to be received from the
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0013| imposed tax, at the rate certified by the department of finance
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0014| and administration in accordance with Section 22-25-7 NMSA
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0015| 1978, assuming a one hundred percent collection rate, is less
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0016| than an amount calculated by multiplying the district's first
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0017| forty-days' total program units times thirty-five dollars
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0018| ($35.00) and further multiplying the product obtained by the
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0019| tax rate approved by the qualified electors in the most recent
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0020| election on the question of imposing a tax under the Public
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0021| School Capital Improvements Act. The distribution shall be
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0022| made each year that the tax is imposed in accordance with
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0023| Section 22-25-7 NMSA 1978; provided that no state distribution
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0024| from the public school capital improvements fund may be used
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0025| for capital improvements to any administration building of a
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0001| school district. In the event that sufficient funds are not
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0002| available in the public school capital improvements fund to
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0003| make the state distribution provided for in this [section]
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0004| subsection, the dollar per program unit figure shall be
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0005| reduced as necessary.
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0006| B. After calculating the amounts to be distributed
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0007| to school districts in Subsection A of this section, the state
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0008| superintendent shall make the same calculation for the same
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0009| school districts using forty-five dollars ($45.00) as the
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0010| dollar per program unit multiplier. Based on that calculation,
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0011| the state superintendent shall make a distribution from the
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0012| lottery public school capital fund to any school district that
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0013| qualifies for a distribution in an amount that is equal to the
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0014| amount of the difference between using thirty-five dollars
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0015| ($35.00) and forty-five dollars ($45.00) as the multiplier in
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0016| the calculation in Subsection A of this section. This amount
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0017| shall be distributed to the school district at the same time as
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0018| and subject to the provisions of the distributions in
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0019| Subsection A of this section. In the event that sufficient
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0020| funds are not available from the balance on August 1 in the
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0021| lottery public school capital fund to make the distributions
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0022| provided for in this subsection, the dollar per program unit
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0023| multiplier shall be reduced as necessary."
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0024| Section 6. EFFECTIVE DATE.--The effective date of the
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0025| provisions of this act is July 1, 1997.
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