0001| HOUSE BILL 207
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0002| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003| INTRODUCED BY
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0004| LUCIANO "LUCKY" VARELA
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0005|
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0006|
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0007|
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0008|
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0009|
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0010| AN ACT
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0011| RELATING TO STATE LOTTERY REVENUES; CHANGING THE FORMULA FOR
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0012| DISTRIBUTION OF LOTTERY NET REVENUES; DISTRIBUTING LOTTERY
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0013| REVENUES TO PUBLIC SCHOOLS FOR EDUCATIONAL TECHNOLOGY PURSUANT
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0014| TO THE TECHNOLOGY FOR EDUCATION ACT; AMENDING SECTIONS OF THE
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0015| NMSA 1978; MAKING AN APPROPRIATION.
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0016|
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0017| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0018| Section 1. Section 6-24-24 NMSA 1978 (being Laws 1995,
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0019| Chapter 155, Section 24) is amended to read:
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0020| "6-24-24. DISPOSITION OF REVENUE.--
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0021| A. As nearly as practical, an amount equal to at
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0022| least fifty percent of the gross annual revenues from the sale
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0023| of lottery tickets shall be returned to the public in the form
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0024| of lottery prizes.
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0025| B. The authority shall transmit all net revenues
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0001| to the state treasurer who shall deposit [sixty] forty
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0002| percent of the revenues in the [public school capital
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outlay] educational technology fund for expenditure
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0004| pursuant to the provisions of the [Public School Capital
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Outlay Act] Technology for Education Act and [forty]
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0006| sixty percent in the lottery tuition fund. Estimated net
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0007| revenues shall be transmitted monthly to the state treasurer
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0008| for deposit in the funds, provided the total amount of annual
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0009| net revenues for the fiscal year shall be transmitted no later
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0010| than August 1 [each] of the following fiscal year.
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0011| C. In determining net revenues, operating expenses
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0012| of the lottery include all costs incurred in the operation and
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0013| administration of the lottery and all costs resulting from any
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0014| contracts entered into for the purchase or lease of goods or
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0015| 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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0017| audit services, independent studies, data transmission,
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0018| advertising, promotion, incentives, public relations,
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0019| communications, commissions paid to lottery retailers,
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0020| printing, distribution of tickets, purchases of annuities or
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0021| investments to be used to pay future installments of winning
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0022| lottery tickets, debt service and payment of any revenue bonds
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0023| issued, contingency reserves, transfers to the reserve fund
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0024| and any other necessary costs incurred in carrying out the
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0025| provisions of the New Mexico Lottery Act.
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0001| D. An amount up to two percent of the gross annual
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0002| revenues shall be set aside as a reserve fund to cover bonuses
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0003| and incentive plans for lottery retailers, special promotions
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0004| for retailers, purchasing special promotional giveaways,
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0005| sponsoring special promotional events, compulsive gambling
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0006| rehabilitation and such other purposes as the board deems
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0007| necessary to maintain the integrity and meet the revenue goals
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0008| of the lottery. The board shall report annually to the
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0009| governor and each regular session of the legislature on the
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0010| use of the money in the reserve fund. Any balance in excess
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0011| of fifty thousand dollars ($50,000) at the end of any fiscal
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0012| year shall be transferred to the lottery tuition fund."
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0013| Section 2. Section 6-24-27 NMSA 1978 (being Laws 1995,
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0014| Chapter 155, Section 27) is amended to read:
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0015| "6-24-27. REVENUE AND BUDGET REPORTS--RECORDS--
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0016| INDEPENDENT AUDITS.--
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0017| A. The board shall:
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0018| (1) submit quarterly and annual reports to
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0019| the governor, legislative finance committee and lottery
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0020| oversight committee disclosing the total lottery revenue,
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0021| prizes, commissions, ticket costs, operating expenses and net
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0022| revenues of the authority during the reporting period and, in
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0023| the annual report, describe the organizational structure of
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0024| the authority and summarize the functions performed by each
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0025| organizational division within the authority;
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0001| (2) maintain weekly or more frequent records
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0002| of lottery transactions, including the distribution of lottery
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0003| tickets to retailers, revenue received, claims for prizes,
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0004| prizes paid, prizes forfeited and other financial transactions
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0005| of the authority; and
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0006| (3) use the state government fiscal year.
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0007| B. The board shall provide, for informational
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0008| purposes, to the department of finance and administration and
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0009| the legislative finance committee, by December 1 of each year,
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0010| a copy of the annual proposed operating budget for the
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0011| authority for the succeeding fiscal year. This budget
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0012| proposal shall also be accompanied by an estimate of the net
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0013| revenues to be deposited in the [public school capital
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outlay] educational technology fund and the lottery tuition
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0015| fund for the current and succeeding fiscal years.
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0016| C. The board shall contract with an independent
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0017| certified public accountant or firm for an annual financial
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0018| audit of the authority. The certified public accountant or
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0019| firm shall have no financial interest in any lottery
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0020| contractor. The certified public accountant or firm shall
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0021| present an audit report no later than March 1 for the prior
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0022| fiscal year. The certified public accountant or firm shall
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0023| evaluate the internal auditing controls in effect during the
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0024| audit period. The cost of this financial audit shall be an
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0025| operating expense of the authority. The legislative finance
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0001| committee may, at any time, order an audit of any phase of the
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0002| operations of the authority, at the expense of the authority,
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0003| and shall receive a copy of the annual independent financial
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0004| audit. A copy of any audit performed by the certified public
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0005| accountant or ordered by the legislative finance committee
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0006| shall be transmitted to the governor, the speaker of the house
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0007| of representatives, the president pro tempore of the senate,
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0008| the legislative finance committee and the lottery oversight
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0009| committee."
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0010| Section 3. Section 22-15A-9 NMSA 1978 (being Laws 1994,
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0011| Chapter 96, Section 9) is amended to read:
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0012| "22-15A-9. EDUCATIONAL TECHNOLOGY FUND--DISTRIBUTION.--
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0013| A. Upon annual review and approval of a school
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0014| district's educational technology plan, the bureau shall
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0015| determine a separate distribution from the educational
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0016| technology fund for each school district.
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0017| B. On or before July 31 of each year, the bureau
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0018| shall distribute money in the educational technology fund
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0019| directly to each school district in an amount equal to ninety
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0020| percent of the district's estimated entitlement as determined
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0021| by the projected membership for the school year. A school
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0022| district's entitlement is that portion of the total amount of
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0023| the annual appropriation that the projected membership bears
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0024| to the projected membership of the state. Kindergarten
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0025| membership shall be calculated on a one-half full-time-
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0001| equivalent basis.
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0002| C. On or before January 30 of each year, the
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0003| bureau shall recompute each entitlement using the final funded
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0004| membership for that year and shall allocate the balance of the
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0005| annual appropriation adjusting for any over- or under-
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0006| projection of membership.
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0007| D. Any school district receiving funding pursuant
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0008| to the Technology for Education Act is responsible for the
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0009| purchase, distribution, use and maintenance of educational
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0010| technology.
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0011| E. As used in this section:
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0012| (1) "annual appropriation" means for any
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0013| fiscal year the sum of appropriations to the educational
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0014| technology fund for the fiscal year and all state lottery
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0015| revenues distributed to the fund in the prior fiscal year; and
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0016| (2) "membership" means the total enrollment
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0017| of qualified students, as defined in the Public School Finance
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0018| Act, on the current roll of class or school on a specified
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0019| day. The current roll is established by the addition of
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0020| original entries and re-entries minus withdrawals. Withdrawal
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0021| of students, in addition to students formally withdrawn from
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0022| the public school, includes students absent from the public
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0023| school for as many as ten consecutive school days."
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0024| Section 4. EFFECTIVE DATE.--The effective date of the
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0025| provisions of this act is July 1, 1998.
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