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AN ACT
RELATING TO PUBLIC SCHOOLS; PROVIDING CRITERIA AND PROCEDURES
FOR FUNDING PUBLIC SCHOOL CAPITAL OUTLAY PROJECTS FOR PUBLIC
SCHOOL BUILDINGS, INCLUDING CAPITAL OUTLAY FOR KINDERGARTEN
CLASSROOMS; AUTHORIZING THE ISSUANCE OF SUPPLEMENTAL
SEVERANCE TAX BONDS; AUTHORIZING THE ISSUANCE OF SEVERANCE
TAX BONDS; CREATING A DEFICIENCIES CORRECTION UNIT AS PART OF
THE PUBLIC SCHOOL CAPITAL OUTLAY COUNCIL; CREATING THE PUBLIC
SCHOOL CAPITAL OUTLAY TASK FORCE; MAKING APPROPRIATIONS;
DECLARING AN EMERGENCY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 7-27-12 NMSA 1978 (being Laws 1961,
Chapter 5, Section 10, as amended) is amended to read:
"7-27-12. WHEN SEVERANCE TAX BONDS TO BE ISSUED.--
A. The state board of finance shall issue and sell
all severance tax bonds when authorized to do so by any law
that sets out the amount of the issue and the recipient of
the money.
B. The state board of finance shall also issue and
sell severance tax bonds authorized by Sections 72-14-36
through 72-14-42 NMSA 1978, and such authority as has been
given to the interstate stream commission to issue and sell
such bonds is transferred to the state board of finance. The
state board of finance shall issue and sell all severance tax
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bonds only when so instructed by resolution of the governing
body or by written direction from an authorized officer of
the recipient of the bond money.
C. Except as provided in Subsection D of this
section, proceeds from supplemental severance tax bonds shall
be used only for public school capital outlay projects
pursuant to the Public School Capital Outlay Act or the
Public School Capital Improvements Act.
D. Proceeds from supplemental severance tax bonds
issued pursuant to Paragraph (2) of Subsection A of Section
19 of Chapter 6 of Laws 1999 (1st S.S.) shall be used for the
purposes specified in that paragraph.
E. Except as provided in Subsection F of this
section, the state board of finance shall issue and sell all
supplemental severance tax bonds when so instructed by
resolution of the public school capital outlay council
pursuant to Section 7-27-12.2 NMSA 1978.
F. The state board of finance shall issue and sell
supplemental severance tax bonds authorized by Paragraph (2)
of Subsection A of Section 19 of Chapter 6 of Laws 1999 (1st
S.S.) when so instructed by resolution of the commission on
higher education."
Section 2. A new section of the Severance Tax Bonding
Act, Section 7-27-12.2 NMSA 1978, is enacted to read:
"7-27-12.2. SUPPLEMENTAL SEVERANCE TAX BONDS--PUBLIC
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SCHOOL CAPITAL OUTLAY PROJECTS.--
A. The public school capital outlay council is
authorized to certify by resolution that proceeds of
supplemental severance tax bonds are needed for public school
capital outlay projects pursuant to Section 22-24-5 NMSA 1978
or for the state distribution for public school capital
improvements pursuant to the Public School Capital
Improvements Act. The resolution shall specify the total
amount needed.
B. The state board of finance may issue and sell
supplemental severance tax bonds in compliance with the
Severance Tax Bonding Act when the public school capital
outlay council certifies by resolution the need for the
issuance of the bonds. The amount of the bonds sold at each
sale shall not exceed the lesser of the amount certified by
the council or the amount that may be issued pursuant to the
restrictions of Section 7-27-14 NMSA 1978.
C. The state board of finance shall schedule the
issuance and sale of the bonds in the most expeditious and
economical manner possible.
D. The proceeds from the sale of the bonds are
appropriated as follows:
(1) the amount certified by the
superintendent of public instruction as necessary to make the
distribution pursuant to Section 22-25-9 NMSA 1978 is
appropriated to the public school capital improvements fund
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for the purpose of carrying out the provisions of the Public
School Capital Improvements Act; and
(2) the remainder of the proceeds is
appropriated to the public school capital outlay fund for the
purpose of making awards of grant assistance pursuant to
Section 22-24-5 NMSA 1978, except that, of the proceeds
received from the sale of the bonds in fiscal year 2001,
fifty million dollars ($50,000,000) shall be used for
projects to correct outstanding deficiencies pursuant to
Sections 22-24-4.1 and 22-24-4.2 NMSA 1978."
Section 3. Section 7-27-27 NMSA 1978 (being Laws 1961,
Chapter 5, Section 27, as amended) is amended to read:
"7-27-27. PURPOSE AND INTENT.--The purpose of the
Severance Tax Bonding Act is to establish the authority who
shall issue and sell all severance tax bonds for financing
specific projects authorized by the legislature
and all
supplemental severance tax bonds pursuant to Section
7-27-12.2 NMSA 1978
and to guarantee redemption of such bonds
by revenue derived from the receipts from taxes levied upon
natural resource products severed and saved from the soil and
such other money as the legislature may from time to time
determine. It is intended that projects to be financed from
the fund shall include the construction of public school
buildings, other buildings for state institutions and water
resource projects; and it is further intended that the income
from water resource projects in excess of the amount required
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for operation and maintenance of the project shall be used to
repay the severance tax bonding fund."
Section 4. A new Section 22-20-4 NMSA 1978 is enacted
to read:
"22-20-4. APPLICABILITY.--The provisions of Chapter 22,
Article 20 NMSA 1978 do not apply to public school capital
outlay projects subject to the oversight of the public school
capital outlay council pursuant to the Public School Capital
Outlay Act."
Section 5. 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 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
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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 meet the criteria of the
Public School Capital Outlay Act.
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 an application
has been approved."
Section 6. A new section of the Public School Capital
Outlay Act, Section 22-24-4.1 NMSA 1978, is enacted to read:
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"22-24-4.1. OUTSTANDING DEFICIENCIES--ASSESSMENT--
CORRECTION.--
A. No later than September 1, 2001, the council
shall define and develop guidelines, consistent with the
codes adopted by the construction industries commission
pursuant to the Construction Industries Licensing Act, for
school districts to use to identify outstanding serious
deficiencies in public school buildings and grounds,
including buildings and grounds of charter schools, that may
adversely affect the health or safety of students and school
personnel.
B. A local school district shall use these
guidelines to complete a self-assessment of the outstanding
health or safety deficiencies within the district and provide
cost projections to correct the outstanding deficiencies.
C. The council shall develop a methodology for
prioritizing projects that will correct the deficiencies.
D. After a public hearing and to the extent that
money is available in the fund for such purposes, the council
shall approve allocations from the fund on the established
priority basis and, working with the school district and
pursuant to the Procurement Code, enter into construction
contracts with contractors to correct the deficiencies.
E. In entering into construction contracts to
correct deficiencies pursuant to this section, the council
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shall include such terms and conditions as necessary to
ensure that the state money is expended in the most prudent
manner possible and consistent with the original purpose.
F. Any deficiency that may adversely affect the
health or safety of students or school personnel may be
corrected pursuant to this section, regardless of the local
effort or percentage of indebtedness of the school district.
G. It is the intent of the legislature that all
outstanding deficiencies in public schools and grounds that
may adversely affect the health or safety of students and
school personnel be identified and funded pursuant to this
section no later than June 30, 2004."
Section 7. A new section of the Public School Capital
Outlay Act, Section 22-24-4.2 NMSA 1978, is enacted to read:
"22-24-4.2. DEFICIENCIES CORRECTION UNIT.--
A. A "deficiencies correction unit" is created as
part of the public school capital outlay council. The unit
shall be headed by a director, selected by the council, who
shall be versed in construction, architecture or project
management. Within budgetary constraints, the director shall
employ or contract with such technical and administrative
personnel as are necessary to carry out the provisions of
this section. The director shall be exempt from the
provisions of the Personnel Act.
B. The deficiencies correction unit shall:
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(1) work with the local school districts to
validate the assessment of the outstanding deficiencies and
the projected costs to correct the deficiencies;
(2) work with the school districts to
provide direct oversight of the management and construction
of the projects that will correct the outstanding
deficiencies;
(3) oversee all aspects of the contracts
entered into by the council to correct the outstanding
deficiencies;
(4) conduct on-site inspections while the
deficiencies correction work is being done to assure that the
construction specifications are being met and periodically
inspect all of the documents relating to the projects;
(5) require the use of standardized
construction documents as defined by the property control
division of the general services department and the use of a
standardized process for change orders; and
(6) have access to the premises of a project
and any documentation relating to the project."
Section 8. Section 22-24-5 NMSA 1978 (being Laws 1975,
Chapter 235, Section 5, as amended) is amended to read:
"22-24-5. PUBLIC SCHOOL CAPITAL OUTLAY PROJECTS--
APPLICATION--GRANT ASSISTANCE.--
A. For project allocation cycles occurring before
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September 1, 2003, the council shall approve an application
for grant assistance from the fund for a public school
capital outlay project not wholly funded pursuant to
Section 22-24-4.1 NMSA 1978, when the council determines
that:
(1) a need exists requiring action;
(2) the residents of the school district
have provided available resources to the school district to
meet its capital outlay requirements;
(3) the school district has used its capital
resources in a prudent manner;
(4) the school district has provided
insurance for buildings of the school district in accordance
with the provisions of Section 13-5-3 NMSA 1978;
(5) the school district:
(a) is indebted at not less than
sixty-five percent of the total general obligation debt
authorized by law; or
(b) within the last three years, was
indebted at the level required in Subparagraph (a) of this
paragraph and received a grant pursuant to this section for
the initial stages of a project and currently has a critical
need for an additional grant to complete the same project;
(6) the application includes:
(a) the capital needs of any charter
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schools located in the school district or the school district
has shown that the capital needs of the charter schools are
not as great as the capital needs requested in the
application; and
(b) the facilities needed in the school
district to implement a full-day kindergarten program or that
the school district has shown that the need for facilities to
implement the program is not as great as the capital needs
requested in the application; provided that the total amount
of assistance grants made in a fiscal year for the purpose of
implementing full-day kindergarten programs shall not exceed
five million dollars ($5,000,000); and
(7) the school district has submitted a
five-year facilities plan that includes:
(a) enrollment projections;
(b) a current preventive maintenance
plan to which the school adheres for each public school in
the district; and
(c) projections for the facilities
needed in order to maintain a full-day kindergarten program.
B. 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 school district has complied with the provisions of this
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section. The council shall list all applications in order of
priority, and all allocations shall be made on a priority
basis, except:
(1) twenty million dollars ($20,000,000) of
the proceeds from supplemental severance tax bonds available
for the funding cycle in fiscal year 2001 and fifty million
dollars ($50,000,000) of the proceeds from supplemental
severance tax bonds available for the funding cycle in each
of fiscal years 2002 and 2003 shall be set aside for
allocation solely for projects in school districts that are
eligible for funding from the fund and that receive grants
from the federal government as assistance to areas affected
by federal activity authorized in accordance with Title 20 of
the United States Code, commonly known as "PL 874 funds" or
"impact aid"; and
(2) in the case of an emergency, the order
of priority shall first reflect those projects that 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. For allocation cycles beginning after
September 1, 2003, the following provisions apply:
(1) all school districts are eligible to
apply for funding from the fund, regardless of percentage of
indebtedness;
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(2) priorities for funding shall be
determined by using the statewide adequacy standards
developed pursuant to Subsection D of this section; provided
that the council shall apply the standards to charter schools
to the same extent that they are applied to other public
schools;
(3) after consulting with the staff
architect of the property control division of the general
services department, the council shall establish criteria to
be used in public school capital outlay projects that receive
grant assistance pursuant to the Public School Capital Outlay
Act. In establishing the criteria, the council shall
consider:
(a) the feasibility of using design,
build and finance arrangements for public school capital
outlay projects;
(b) the potential use of more durable
construction materials that may reduce long-term operating
costs; and
(c) any other financing or construction
concept that may maximize the dollar effect of the state
grant assistance;
(4) no more than ten percent of the combined
total of grants in a funding cycle shall be used for
retrofitting existing facilities for technology
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infrastructure;
(5) except as provided in Paragraph (6) of
this subsection, a project approved and ranked by the council
shall be funded within available resources in accordance with
the following formula:
(school district final prior year
assessed valuation per MEM the state
average final prior year assessed
valuation per MEM) x 0.5. The product
is subtracted from 1.0 and the
difference is then multiplied by
seventy-five percent. The product of
that calculation added to (the percent
of bonding capacity used x 0.25) equals
the percentage of the cost of the
approved project to be funded from the
fund. "MEM" means the total enrollment
of students attending public school in a
school district in the final funded
prior school year, with kindergarten
being counted as 0.5. In those
instances in which the formula provides
less than 0.1, 0.1 shall be used as the
state's share;
(6) in those instances in which a school
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district has used all of its local resources, the council may
fund the total amount of a project; and
(7) no application for grant assistance from
the fund shall be approved unless the council determines
that:
(a) the public school capital outlay
project is needed and included in the school district's five-
year facilities plan among its top priorities;
(b) the school district has used its
capital resources in a prudent manner;
(c) the school district has provided
insurance for buildings of the school district in accordance
with the provisions of Section 13-5-3 NMSA 1978;
(d) the school district has submitted a
five-year facilities plan that includes: 1) enrollment
projections; 2) a current preventive maintenance plan to
which the school adheres for each public school in the
district; and 3) projections for the facilities needed in
order to maintain a full-day kindergarten program;
(e) the school district is willing and
able to pay any portion of the total cost of the public
school capital outlay project that, according to Paragraph
(5) of this subsection established by law, is not funded with
grant assistance from the fund;
(f) the application includes the
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capital needs of any charter schools located in the school
district or the school district has shown that the facilities
of the charter schools in the district meet the statewide
adequacy standards; and
(g) the school district has agreed, in
writing, to comply with any reporting requirements or
conditions imposed by the council pursuant to Section
22-24-5.1 NMSA 1978.
D. After consulting with the public school capital
outlay task force and other experts, no later than September
1, 2002, the council shall develop statewide adequacy
standards applicable to all school districts. The standards
shall establish the minimum acceptable level for the physical
condition and capacity of buildings, the educational
suitability of facilities and the need for technological
infrastructure. The amount of outstanding deviation from the
standards shall be used by the council after September 1,
2003 in evaluating and prioritizing public school capital
outlay projects.
E. It is the intent of the legislature that grant
assistance made pursuant to this section allow every school
district to meet the standards developed pursuant to
Subsection D of this section; provided, however, that nothing
in the Public School Capital Outlay Act or the development of
standards pursuant to that act prohibits a school district
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from using local funds to exceed the statewide adequacy
standards.
F. Upon request, the council shall work with, and
provide assistance and information to, the public school
capital outlay task force.
G. The council may establish committees or task
forces, not necessarily consisting of council members, and
may use the committees or task forces, as well as existing
agencies or organizations, to conduct studies, conduct
surveys, submit recommendations or otherwise contribute
expertise from the public schools, programs, interest groups
and segments of society most concerned with a particular
aspect of the council's work.
H. The council shall promulgate such rules as are
necessary to carry out the provisions of the Public School
Capital Outlay Act.
I. No later than December 1 of each year, the
council shall prepare a report summarizing its activities
during the previous fiscal year. The report shall describe
in detail all projects funded, the progress of projects
previously funded but not completed, the criteria used to
prioritize and fund projects and all other council actions.
The report shall be submitted to the state board, the
governor, the legislative finance committee, the legislative
education study committee and each member of the
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legislature."
Section 9. A new section of the Public School Capital
Outlay Act, Section 22-24-5.1 NMSA 1978, is enacted to read:
"22-24-5.1. COUNCIL ASSISTANCE AND OVERSIGHT.--In
providing grant assistance pursuant to Section 22-24-5 NMSA
1978, the council shall:
A. assist school districts in identifying critical
capital outlay needs and in preparing grant applications;
B. take such actions as are necessary to assist
school districts in implementing the projects for which
grants are made, including assistance with the preparation of
requests for bids or proposals, contract negotiations and
contract implementation;
C. take such actions as are necessary to ensure
cost savings and efficiencies for those school districts that
are not large enough to maintain their own construction
management staff; and
D. include such reporting requirements and
conditions and take such actions as are necessary to ensure
that the grants are expended in the most prudent manner
possible and consistent with the original purpose for which
they were made. In order to ensure compliance with the
intent of this subsection, the council may:
(1) access the premises of a project and
review any documentation relating to a project;
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(2) withhold all or part of the amount of
grant assistance available for a project for grounds
established by rule of the council; and
(3) if it determines that a project is
repeatedly in substantial noncompliance with any reporting
requirement or condition, take over the direct administration
of the project until the project is completed."
Section 10. Section 22-25-9 NMSA 1978 (being Laws 1975
(S.S.), Chapter 5, Section 9, as amended by Laws 1988,
Chapter 64, Section 44 and also by Laws 1988, Chapter 66,
Section 2) is amended to read:
"22-25-9. STATE DISTRIBUTION TO SCHOOL DISTRICT
IMPOSING TAX UNDER CERTAIN CIRCUMSTANCES.--
A. Except as provided in Subsection C of this
section, the state superintendent shall distribute to any
school district that has imposed a tax under the Public
School Capital Improvements Act an amount from the public
school capital improvements fund that is equal to the amount
by which the revenue estimated to be received from the
imposed tax, at the rate certified by the department of
finance and administration in accordance with Section 22-25-7
NMSA 1978, assuming a one hundred percent collection rate, is
less than an amount calculated by multiplying the school
district's first forty-days' total program units by the
dollar amount specified in Subsection B of this section and
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further multiplying the product obtained by the tax rate
approved by the qualified electors in the most recent
election on the question of imposing a tax under the Public
School Capital Improvements Act. The distribution shall be
made each year that the tax is imposed in accordance with
Section 22-25-7 NMSA 1978; provided that no state
distribution from the public school capital improvements fund
may be used for capital improvements to any administration
building of a school district. In the event that sufficient
funds are not available in the public school capital
improvements fund to make the state distribution provided for
in this section, the dollar per program unit figure shall be
reduced as necessary.
B. In calculating the state distribution pursuant
to Subsection A of this section, the following amounts shall
be used:
(1) fifty dollars ($50.00) per program unit;
and
(2) for fiscal year 2005 and thereafter, an
additional amount certified to the state superintendent by
the public school capital outlay council. No later than
June 1, 2004 and each June 1 thereafter, the council shall
determine the amount needed in the next fiscal year for
public school capital outlay projects pursuant to the Public
School Capital Outlay Act and the amount of revenue, from all
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sources, available for the projects. If, in the sole
discretion of the council, the amount available exceeds the
amount needed, the council may certify an additional amount
pursuant to this paragraph; provided that the sum of the
amount calculated pursuant to this paragraph plus the amount
in Paragraph (1) of this subsection shall not result in a
total statewide distribution that, in the opinion of the
council, exceeds one-half of the total revenue estimated to
be received from taxes imposed pursuant to the Public School
Capital Improvements Act.
C. Notwithstanding the amount calculated to be
distributed pursuant to Subsections A and B of this section,
no school district, the voters of which have approved a tax
pursuant to Section 22-25-3 NMSA 1978, shall receive a
distribution less than an amount equal to five dollars
($5.00) multiplied by the school district's first forty days'
total program units and further multiplying the product
obtained by the approved tax rate.
D. In making distributions pursuant to this
section, the state superintendent shall include such
reporting requirements and conditions as are required by rule
of the public school capital outlay council. The council
shall adopt such requirements and conditions as are necessary
to ensure that the distributions are expended in the most
prudent manner possible and consistent with the original
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purpose as specified in the authorizing resolution. Copies
of reports or other information received by the state
superintendent in response to the requirements and conditions
shall be forwarded to the council."
Section 11. Laws 1999 (1st S.S.), Chapter 6, Section 19
is amended to read:
"Section 19. SUPPLEMENTAL SEVERANCE TAX BONDS--PURPOSE
FOR WHICH ISSUED--APPROPRIATION OF PROCEEDS.--
A. The state board of finance may issue and sell
supplemental severance tax bonds in compliance with the
Severance Tax Bonding Act in the following amounts for the
following purposes upon the following certification:
(1) an amount not exceeding one hundred
million dollars ($100,000,000) when the public school capital
outlay council certifies by resolution the need for the
issuance of the bonds for public school critical capital
outlay projects pursuant to the Public School Capital Outlay
Act; and
(2) an amount not exceeding twenty-five
million dollars ($25,000,000) when the commission on higher
education certifies by resolution the need for the issuance
of the bonds for infrastructure renovation and expansion at
the state's public post-secondary educational institutions or
other educational institutions confirmed in Article 12,
Section 11 of the constitution of New Mexico pursuant to a
plan developed and approved by the commission on higher
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education to fund the highest priority significant needs
identified by the commission.
B. The state board of finance shall schedule the
issuance and sale of the bonds in the most expeditious and
economical manner possible upon a finding by the board that
the projects have been developed sufficiently to justify the
issuance and that the projects can proceed to contract within
a reasonable time. The state board of finance shall further
take the appropriate steps necessary to comply with the
Internal Revenue Code of 1986, as amended.
C. The proceeds from the sale of the bonds
pursuant to Paragraph (1) of Subsection A of this section are
appropriated to the public school capital outlay fund to
carry out the provisions of the Public School Capital Outlay
Act. If the public school capital outlay council has not
certified the need for the issuance of the bonds by
January 31, 2001, authorization provided in this section
shall expire. Any unexpended or unencumbered balance
remaining from the proceeds of bonds issued pursuant to
Paragraph (1) of Subsection A of this section at the end of
fiscal year 2006 shall revert to the severance tax bonding
fund.
D. The proceeds from the sale of the bonds in
Paragraph (2) of Subsection A of this section are
appropriated to the commission on higher education for
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distribution to the governing bodies of the educational
institutions who have certified projects for funding with the
bond proceeds. If the commission on higher education has not
certified the need for the issuance of the bonds by the end
of fiscal year 2004, authorization provided in this section
shall expire. Any unexpended or unencumbered balance
remaining from the proceeds of bonds issued pursuant to
Paragraph (2) of Subsection A of this section at the end of
fiscal year 2006 shall revert to the severance tax bonding
fund."
Section 12. PUBLIC SCHOOL CAPITAL OUTLAY TASK FORCE--
CREATION--STAFF.--
A. The "public school capital outlay task force"
is created. The task force consists of twenty-one members as
follows:
(1) the dean of the university of New Mexico
school of law, or his designee;
(2) the dean of the New Mexico state
university college of engineering or his designee;
(3) the secretary of finance and
administration or his designee;
(4) the state investment officer or his
designee;
(5) the superintendent of public instruction
or his designee;
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(6) the chairmen of the house appropriations
and finance committee, the senate finance committee, the
senate education committee and the house education committee
or their designees;
(7) a minority party member of the house of
representatives, appointed by the New Mexico legislative
council;
(8) a minority party member of the senate,
appointed by the New Mexico legislative council;
(9) two public members who have expertise in
education and finance appointed by the speaker of the house
of representatives;
(10) two public members who have expertise
in education and finance appointed by the president pro
tempore of the senate;
(11) three public members who have expertise
in education and finance appointed by the governor; and
(12) three superintendents of school
districts or their designees that receive grants from the
federal government as assistance to areas affected by federal
activity authorized in accordance with Title 20 of the United
States Code, appointed by the New Mexico legislative council
in consultation with the governor.
B. The chair of the task force shall be elected by
the task force. The public school capital outlay task force
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shall meet at the call of the chair.
C. The public members of the public school capital
outlay task force shall receive per diem and mileage pursuant
to the Per Diem and Mileage Act.
D. The legislative council service, with
assistance from the department of finance and administration,
the investment office, the state department of public
education, the legislative education study committee and the
legislative finance committee, shall provide staff for the
public school capital outlay task force.
Section 13. PUBLIC SCHOOL CAPITAL OUTLAY TASK FORCE--
DUTIES.--The public school capital outlay task force shall:
A. study and evaluate the progress and
effectiveness of programs administered pursuant to the Public
School Capital Outlay Act and the Public School Capital
Improvements Act;
B. evaluate the existing permanent revenue streams
and other potential revenues as adequate long-term funding
sources for public school capital outlay projects and
recommend any changes that may be more cost-effective or
appropriate;
C.
evaluate the effectiveness and fairness of the
formula used in determining the amount of grant assistance
that an approved public school capital outlay project may
receive from the public school capital outlay fund and
recommended any proposed changes to the legislature;
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D. monitor and assist the public school capital
outlay council as it:
(1) defines outstanding public school
capital outlay deficiencies pursuant to Section 22-24-4.1
NMSA 1978;
(2) works with school districts in
conducting a self-assessment of the projects needed to
correct the outstanding deficiencies and establishes criteria
for addressing those needs;
(3) develops statewide adequacy standards
that establish the minimum acceptable level for the physical
condition and capacity of public school buildings, the
educational suitability of educational facilities and the
need for technological infrastructure; and
(4) develops guidelines and procedures for
reporting requirements and conditions to ensure that the
grants are expended in the most prudent manner possible and
consistent with the original purpose for which they were
made; and
E. no later than December 1 of each year, report
the results of its analyses and its findings and
recommendations to the governor and the legislature.
Section 14. SEVERANCE TAX BONDS--PURPOSE--APPROPRIATION
OF PROCEEDS.--The state board of finance may issue and sell
severance tax bonds in fiscal years 2002 and 2003 in
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compliance with the Severance Tax Bonding Act in an amount
not exceeding a total of one hundred million dollars
($100,000,000) when the public school capital outlay council
certifies the need for the issuance of the bonds. The state
board of finance shall schedule the issuance and sale of the
bonds in the most expeditious and economical manner possible.
The proceeds from the sale of the bonds are appropriated to
the public school capital outlay fund for the purpose of
providing grant assistance for public school capital outlay
projects that are needed to correct outstanding deficiencies
pursuant to Sections 22-24-4.1 and 22-24-4.2 NMSA 1978. Any
unexpended or unencumbered balance remaining at the end of
fiscal year 2006 shall revert to the severance tax bonding
fund. If the public school capital outlay council has not
certified the need for the issuance of the bonds by the end
of fiscal year 2003, the authorization provided in this
section shall expire.
Section 15. APPROPRIATIONS.--
A. Two million three hundred thousand dollars
($2,300,000) is appropriated from the general fund to the
state department of public education for expenditure in
fiscal years 2001 through 2003 for the purpose of completing
a statewide needs and cost assessment of all school districts
in order to identify all needed public school capital outlay
projects. Any unexpended or unencumbered balance remaining
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at the end of fiscal year 2003 shall revert to the general
fund.
B. Two hundred thousand dollars ($200,000) is
appropriated from the general fund to the state department of
public education for expenditure in fiscal year 2002 for the
purpose of assisting the public school capital outlay council
in performing those duties required of it pursuant to the
Public School Capital Outlay Act. The appropriation may be
expended by the department in the manner deemed by the
department and council to be the most expedient and cost
effective, including expenditures for employees and for
contractual services. Any unexpended or unencumbered balance
remaining at the end of fiscal year 2002 shall revert to the
general fund.
C. One million one hundred thousand dollars
($1,100,000) is appropriated from the general fund to the
deficiencies correction unit of the public school capital
outlay council for expenditure in fiscal years 2001 and 2002
for the purpose of carrying out its duties pursuant to the
Public School Capital Outlay Act. Any unexpended or
unencumbered balance remaining at the end of fiscal year 2002
shall revert to the general fund.
D. Fifty million dollars ($50,000,000) is
appropriated from the general fund to the public school
capital outlay fund for expenditure in fiscal years 2002
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through 2004 for the purpose of correcting outstanding
deficiencies pursuant to Sections 22-24-4.1 and 22-24-4.2
NMSA 1978. The appropriation is contingent upon the
secretary of general services and the secretary of finance
and administration certifying that the public school capital
outlay council has, by rule, adopted a project management
system to ensure that the projects will be constructed in the
most cost-effective and efficient manner. Any unexpended or
unencumbered balance remaining at the end of fiscal year 2004
shall not revert but shall be used for the purpose of
providing grant assistance pursuant to Section 22-24-5 NMSA
1978.
E. Twenty thousand dollars ($20,000) is
appropriated from the general fund to the legislative council
service for expenditure in fiscal years 2001 and 2002 for the
purpose of paying per diem and mileage for public members of
the public school capital outlay task force. Any unexpended
or unencumbered balance remaining at the end of fiscal year
2002 shall revert to the general fund.
Section 16. KINDERGARTEN CAPITAL FUNDING.--
A. Five million dollars ($5,000,000) is
appropriated from the general fund to the state department of
public education for expenditure in fiscal years 2001 through
2003 to purchase portable classrooms or to build classrooms
for full-day kindergarten throughout New Mexico. Any
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unexpended or unencumbered balance remaining at the end of
fiscal year 2003 shall revert to the general fund.
B. The state department of public education shall
adopt an application process for school districts that wish
to purchase portable classrooms or to build classrooms for
full-day kindergarten. The school districts shall submit
applications to the state department of public education by
July 1, 2001. School districts shall provide the following
information in the application to the state department of
public education:
(1) district enrollment by school in half-
day and full-day kindergarten for the 2000-2001 school year;
(2) the number of full-day kindergarten
classrooms to be constructed or purchased at each elementary
school in the district;
(3) whether the district is requesting brick
and mortar or portable full-day kindergarten classrooms;
(4) the signature of the district
superintendent approving the application; and
(5) verification from the superintendent of
public instruction that the need exists for portable
classrooms or built classrooms for full-day kindergarten.
C. When providing distributions to local school
districts pursuant to Subsections A and B of this section,
the state department of public education shall give priority
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to those school districts that serve children in schools with
the highest proportion of students most in need based upon
indicators in the at-risk factor and those that do not
qualify for funding under the Public School Capital Outlay
Act. The state department of public education shall also
consider the local resources available to build full-day
kindergarten classrooms and the possibility of converting
existing classrooms to full-day kindergarten classrooms.
Section 17. REPEAL.--Laws 2000, Chapter 95, Section 2
and Laws 2000 (2nd S.S.), Chapter 11, Section 3 are repealed.
Section 18. DELAYED REPEAL.--Sections 12 and 13 of this
act are repealed effective January 1, 2004.
Section 19. EMERGENCY.--It is necessary for the public
peace, health and safety that this act take effect
immediately.