44TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 1999

RELATING TO PUBLIC SCHOOL CAPITAL OUTLAY; RENAMING THE PUBLIC SCHOOL CAPITAL OUTLAY ACT THE TWENTY-FIRST CENTURY PUBLIC SCHOOL CAPITAL EQUITY AND TECHNOLOGY ACT; PROVIDING FOR FUNDING OF CRITICAL CAPITAL NEEDS AND NECESSARY TECHNOLOGY INFRASTRUCTURE FOR SCHOOL DISTRICTS STATEWIDE PURSUANT TO THAT ACT; REQUIRING THE LEGISLATURE TO AUTHORIZE AT LEAST ONE-HALF OF ALL SEVERANCE TAX BONDS FOR PUBLIC SCHOOL CAPITAL AND TECHNOLOGY INFRASTRUCTURE IMPROVEMENTS; AMENDING SECTIONS OF THE NMSA 1978.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 7-27-14 NMSA 1978 (being Laws 1961, Chapter 5, Section 11) is amended to read:

"7-27-14. AMOUNT OF TAX--SECURITY FOR BONDS.--

A. The legislature shall provide for the continued assessment, levy, collection and deposit into the severance tax bonding fund of the tax or taxes upon natural resource products severed and saved from the soil of the state which, together with such other income as may be deposited to the fund, will be sufficient to produce an amount which is at least the amount necessary to meet annual debt service charges on all outstanding severance tax bonds.

B. The state board of finance shall issue no severance tax bonds unless the aggregate amount outstanding, including any severance tax bonds authorized prior to the enactment of [this] the Severance Tax Bonding Act, but not yet issued, and including the issue proposed, can be serviced with not more than [fifty percent] two-thirds of the annual deposits into the severance tax bonding fund, as determined by the deposits during the preceding fiscal year.

C. The provisions of this section shall not be modified by the terms of any bonds hereafter issued."

Section 2. A new section of the Severance Tax Bonding Act is enacted to read:

"[NEW MATERIAL] SEVERANCE TAX BONDS--AUTHORIZATION REQUIREMENT FOR PUBLIC SCHOOL CAPITAL PURPOSES.--Beginning with the second session of the forty-fourth legislature, one-half of the severance tax bonds authorized by the legislature shall be authorized for public school capital outlay purposes and the proceeds appropriated to the twenty-first century capital equity and technology fund for expenditure for local school district capital equity and technology infrastructure needs pursuant to the Twenty-First Century Public School Capital Eequity and Technology Act."

Section 3. Section 22-24-1 NMSA 1978 (being Laws 1975, Chapter 235, Section 1, as amended) is amended to read:

"22-24-1. SHORT TITLE.--[Sections 77-24-9 through 77-24-14 NMSA 1953] Chapter 22, Article 24 NMSA 1978 may be cited as the "[Public School Capital Outlay] Twenty-First Century Public School Capital Equity and Technology Act"."

Section 4. Section 22-24-2 NMSA 1978 (being Laws 1975, Chapter 235, Section 2, as amended) is amended to read:

"22-24-2. PURPOSE OF ACT.--The purpose of the [Public School Capital Outlay] Twenty-First Century Public School Capital Equity and Technology Act is to meet critical school district capital outlay needs which cannot be met by the school district after it has exhausted available sources and to address equitably the capital and technology infrastructure needs of all school districts in the state."

Section 5. Section 22-24-3 NMSA 1978 (being Laws 1975, Chapter 235, Section 3, as amended) is amended to read:

"22-24-3. DEFINITIONS.--As used in the [Public School Capital Outlay] Twenty-First Century Public School Capital Equity and Technology Act:

A. "council" means the [public school capital outlay] twenty-first century public school capital equity and technology council; [and]

B. "fund" means the [public school capital outlay] twenty-first century public school capital equity and technology fund; and

"C. "technology infrastructure" means the networking and communications equipment that supports communication among workstations, servers and other networks, including hubs, switches, routers and modems as well as the premise backbone and workstation cabling; "technology infrastructure" may also include the equipment necessary to provide the communications link to an internet service provider."

Section 6. Section 22-24-4 NMSA 1978 (being Laws 1975, Chapter 235, Section 4, as amended) is amended to read:

"22-24-4. FUND CREATED--USE.--

A. There is created the "[public school capital outlay] twenty-first century public school capital equity and technology fund". Balances remaining in the fund at the end of each fiscal year shall not revert.

B. Money in the fund may be used only for capital expenditures deemed by the council necessary for an adequate educational program.

C. The council may authorize the purchase by the property control division of the general services department of property to be loaned to school districts to meet a temporary requirement. Payment for these purchases shall be made from the fund. Title and custody to the property shall rest in the property control division. The council shall authorize the lending of the property to school districts upon request and upon finding that sufficient need exists. Application for use or return of state-owned portable classroom buildings shall be submitted by school districts to the council. Expenses of maintenance of the property while in the custody of the property control division shall be paid from the fund; expenses of maintenance and insurance of the property while in the custody of a school district shall be the responsibility of the school district. The council may authorize the permanent disposition of the property by the property control division with prior approval of the state board of finance.

D. Applications for assistance from the fund shall be made by local school districts to the council in accordance with requirements of the council.

E. The council shall review all requests for assistance from the fund and shall allocate funds only for those capital outlay projects that cannot be financed by the school district from other sources and that meet the criteria of the [Public School Capital Outlay] Twenty-First Century Public School Capital Equity and Technology Act."

Section 7. Section 22-24-5 NMSA 1978 (being Laws 1975, Chapter 235, Section 5, as amended) is amended to read:

"22-24-5. FUND--DISTRIBUTION.--

A. The council shall approve [an application for grant assistance from the fund when the council determines] applications from school districts for grant assistance from the fund based on the requirements and priorities in this section and subject to the money available in the fund.

B. For an application to be considered for grant assistance, the council must first determine that:

(1) a critical capital or basic technology infrastructure need exists requiring action;

(2) the residents of the school district have provided available resources to the school district to meet its capital outlay and technology infrastructure requirements;

(3) the school district has used its resources in a prudent manner;

(4) the school district is in a county or counties [which] that have participated in a reappraisal program and the reappraised values are on the tax rolls or will be used for the tax year 1979 as certified by the property tax division of the taxation and revenue department;

(5) the school district has provided insurance for buildings of the school district in accordance with the provisions of Section 13-5-3 NMSA 1978; and

[(6) the school district is indebted at not less than seventy-five percent of the total debt authorized by law; and

(7)] (6) the school district has submitted a five-year facilities plan that includes enrollment projections.

C. The applications for grant assistance from school districts that meet the basic requirements in Subsection B of this section shall be approved based on applying the following priorities:

(1) the highest priority shall be given to capital projects that are necessary for health and safety; and

(2) priority shall then be given to capital projects that provide necessary classrooms or to improve existing school buildings to ensure that advanced communications technology is available to children in grades three through twelve.

D. The council may award grants for a school district capital project for any part or for all of the project cost after taking into consideration the level of bonded indebtedness and the financial capability of the school district and the availability of local funds for the project. Priority for granting funding for a large percentage of a project or fully funding a project shall be given to those school districts whose bonded indebtedness exceeds seventy-five percent of its total bonding capacity or whose local financial capability and resources are among the lowest.

[B.] E. The council shall consider all applications for assistance from the fund and, after a public hearing, shall either approve or deny the application. Applications for grant assistance shall only be accepted by the council after a district has complied with the provisions of this section. The council shall list all applications in order of priority, and all allocations shall be made on a priority basis; provided, however, except in the case of an emergency, that the order of priority shall first reflect those projects which have been previously funded but are not as yet completed, excluding expansion of those projects and contingent upon maintenance of the required local support.

[C.] F. Money in the fund shall be disbursed by warrant of the department of finance and administration on vouchers signed by the secretary of finance and administration following certification by the council that the application has been approved."

Section 8. Section 22-24-6 NMSA 1978 (being Laws 1975, Chapter 235, Section 6, as amended) is amended to read:

"22-24-6. COUNCIL CREATED--ORGANIZATION--DUTIES.--

A. There is created the "[public school capital outlay] twenty-first century public school capital equity and technology council", consisting of the:

(1) secretary of finance and administration or his designee;

(2) state superintendent or his designee;

(3) [the] governor or his designee;

(4) president of the New Mexico school boards association or his designee;

(5) [the] director of the construction industries division of the regulation and licensing department or his designee;

(6) [the] president of the state board or his designee;

(7) [the] director of the legislative education study committee or his designee;

(8) [the] director of the legislative finance committee or his designee; [and]

(9) [the] director of the legislative council service or his designee;

(10) a person from the private sector appointed by the speaker of the house of representatives who is recognized for outstanding expertise and preeminence in the field of technology design, manufacture or use, especially for educational purposes and in educational settings; and

(11) a person from the private sector appointed by the president pro tempore of the senate who is recognized for outstanding expertise and preeminence in the field of technology design, manufacture or use, especially for educational purposes and in educational settings.

B. The council shall investigate all applications for assistance from the fund and shall certify the approved applications to the secretary of finance and administration for distribution of funds.

C. The council shall elect a chairman from among the members. The council shall meet at the call of the chairman.

D. The department of education shall account for all distributions and shall make annual reports to the legislative education study committee and to the legislative finance committee."