0001|                        SENATE BILL 637
    |
0002|     42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION,
    |
0003|     1996
    |
0004|                         INTRODUCED BY
    |
0005|                      TIMOTHY Z. JENNINGS
    |
0006|     
    |
0007|     
    |
0008|     
    |
0009|     
    |
0010|     
    |
0011|                             AN ACT
    |
0012|     RELATING TO STATE LOTTERY REVENUES; EARMARKING FIFTY PERCENT OF
    |
0013|     NET LOTTERY REVENUES FOR DISTRIBUTION TO PUBLIC SCHOOLS FOR
    |
0014|     EDUCATIONAL TECHNOLOGY PURSUANT TO THE TECHNOLOGY FOR EDUCATION
    |
0015|     ACT AND FIFTY PERCENT TO THE LOTTERY TUITION FUND; AMENDING
    |
0016|     SECTIONS OF THE NMSA 1978.
    |
0017|     
    |
0018|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
    |
0019|       Section 1.  Section 6-24-24 NMSA 1978 (being Laws 1995,
    |
0020|     Chapter 155, Section 24) is amended to read:
    |
0021|       "6-24-24.  DISPOSITION OF REVENUE.--
    |
0022|            A.  As nearly as practical, an amount equal to at
    |
0023|     least fifty percent of the gross annual revenues from the sale
    |
0024|     of lottery tickets shall be returned to the public in the form
    |
0025|     of lottery prizes.
    |
0001|            B.  The authority shall transmit all net revenues to
    |
0002|     the state treasurer who shall deposit <s>[sixty]</s> <u>fifty</u> percent
    |
0003|     of the revenues in the <s>[public school capital outlay]</s>
    |
0004|     <u>educational technology</u> fund for expenditure pursuant to the
    |
0005|     provisions of the <s>[Public School Capital Outlay Act]</s>
    |
0006|     <u>Technology for Education Act</u> and <s>[forty]</s> <u>fifty</u> percent in
    |
0007|     the lottery tuition fund.  Estimated net revenues shall be
    |
0008|     transmitted monthly to the state treasurer for deposit in the
    |
0009|     funds, provided the total amount of annual net revenues for the
    |
0010|     fiscal year shall be transmitted no later than August 1 <s>[each]</s>
    |
0011|     <u>of the following fiscal</u> year.
    |
0012|            C.  In determining net revenues, operating expenses
    |
0013|     of the lottery include all costs incurred in the operation and
    |
0014|     administration of the lottery and all costs resulting from any
    |
0015|     contracts entered into for the purchase or lease of goods or
    |
0016|     services required by the lottery, including but not limited to
    |
0017|     the costs of supplies, materials, tickets, independent audit
    |
0018|     services, independent studies, data transmission, advertising,
    |
0019|     promotion, incentives, public relations, communications,
    |
0020|     commissions paid to lottery retailers, printing, distribution of
    |
0021|     tickets, purchases of annuities or investments to be used to pay
    |
0022|     future installments of winning lottery tickets, debt service and
    |
0023|     payment of any revenue bonds issued, contingency reserves,
    |
0024|     transfers to the reserve fund and any other necessary costs
    |
0025|     incurred in carrying out the provisions of the New Mexico
    |
0001|     Lottery Act.
    |
0002|            D.  An amount up to two percent of the gross annual
    |
0003|     revenues shall be set aside as a reserve fund to cover bonuses
    |
0004|     and incentive plans for lottery retailers, special promotions
    |
0005|     for retailers, purchasing special promotional giveaways,
    |
0006|     sponsoring special promotional events, compulsive gambling
    |
0007|     rehabilitation and such other purposes as the board deems
    |
0008|     necessary to maintain the integrity and meet the revenue goals
    |
0009|     of the lottery.  The board shall report annually to the governor
    |
0010|     and each regular session of the legislature on the use of the
    |
0011|     money in the reserve fund.  Any balance in excess of fifty
    |
0012|     thousand dollars ($50,000) at the end of any fiscal year shall
    |
0013|     be transferred to the lottery tuition fund."
    |
0014|       Section 2.  Section 6-24-27 NMSA 1978 (being Laws 1995,
    |
0015|     Chapter 155, Section 27) is amended to read:
    |
0016|       "6-24-27.  REVENUE AND BUDGET REPORTS--RECORDS--INDEPENDENT
    |
0017|     AUDITS.--
    |
0018|            A.  The board shall:
    |
0019|                 (l)  submit quarterly and annual reports to the
    |
0020|     governor, legislative finance committee and lottery oversight
    |
0021|     committee disclosing the total lottery revenue, prizes,
    |
0022|     commissions, ticket costs, operating expenses and net revenues
    |
0023|     of the authority during the reporting period and, in the annual
    |
0024|     report, describe the organizational structure of the authority
    |
0025|     and summarize the functions performed by each organizational
    |
0001|     division within the authority;
    |
0002|                 (2)  maintain weekly or more frequent records of
    |
0003|     lottery transactions, including the distribution of lottery
    |
0004|     tickets to retailers, revenue received, claims for prizes,
    |
0005|     prizes paid, prizes forfeited and other financial transactions
    |
0006|     of the authority; and
    |
0007|                 (3)  use the state government fiscal year.
    |
0008|            B.  The board shall provide, for informational
    |
0009|     purposes, to the department of finance and administration and
    |
0010|     the legislative finance committee, by December 1 of each year, a
    |
0011|     copy of the annual proposed operating budget for the authority
    |
0012|     for the succeeding fiscal year.  This budget proposal shall also
    |
0013|     be accompanied by an estimate of the net revenues to be
    |
0014|     deposited in the <s>[public school capital outlay]</s> <u>educational
</u>    |
<u></u>0015| <u>    technology</u> fund and the lottery tuition fund for the current
    |
0016|     and succeeding fiscal years.  
    |
0017|            C.  The board shall contract with an independent
    |
0018|     certified public accountant or firm for an annual financial
    |
0019|     audit of the authority.  The certified public accountant or firm
    |
0020|     shall have no financial interest in any lottery contractor.  The
    |
0021|     certified public accountant or firm shall present an audit
    |
0022|     report no later than March 1 for the prior fiscal year.  The
    |
0023|     certified public accountant or firm shall evaluate the internal
    |
0024|     auditing controls in effect during the audit period.  The cost
    |
0025|     of this financial audit shall be an operating expense of the
    |
0001|     authority.  The legislative finance committee may, at any time,
    |
0002|     order an audit of any phase of the operations of the authority,
    |
0003|     at the expense of the authority, and shall receive a copy of the
    |
0004|     annual independent financial audit.  A copy of any audit
    |
0005|     performed by the certified public accountant or ordered by the
    |
0006|     legislative finance committee shall be transmitted to the
    |
0007|     governor, the speaker of the house of representatives, the
    |
0008|     president pro tempore of the senate, the legislative finance
    |
0009|     committee and the lottery oversight committee."
    |
0010|       Section 3.  Section 22-15A-2 NMSA 1978 (being Laws 1994,
    |
0011|     Chapter 96, Section 2) is amended to read:
    |
0012|       "22-15A-2.  DEFINITIONS.--As used in the Technology for
    |
0013|     Education Act:
    |
0014|            A.  "bureau" means the education technology bureau in
    |
0015|     the department of education;
    |
0016|            B.  "chief" means the chief of the bureau;

    |
0017|            C.  "council" means the council on technology in
    |
0018|     education; and 
    |
0019|            D.  "educational technology" means tools used in the
    |
0020|     educational process that constitute learning resources and may
    |
0021|     include closed circuit television systems, educational
    |
0022|     television and radio broadcasting, cable television, satellite,
    |
0023|     copper and fiber optic transmission, computer, video and audio
    |
0024|     laser and CD ROM discs, video and audio tapes or other
    |
0025|     technologies, <u>including adaptive and assistive technologies</u>,
    |
0001|     and the training, maintenance, equipment and computer
    |
0002|     infrastructure information, techniques and tools used to
    |
0003|     implement technology in classrooms and library and media
    |
0004|     centers."
    |
0005|       Section 4.  Section 22-15A-9 NMSA 1978 (being Laws 1994,
    |
0006|     Chapter 96, Section 9) is amended to read:
    |
0007|       "22-15A-9.  EDUCATIONAL TECHNOLOGY FUND--DISTRIBUTION.--
    |
0008|            A.  Upon annual review and approval of a school
    |
0009|     district's educational technology plan, the bureau shall
    |
0010|     determine a separate distribution from the educational
    |
0011|     technology fund for each school district.
    |
0012|            B.  On or before July 31 of each year, the bureau
    |
0013|     shall distribute money in the educational technology fund
    |
0014|     directly to each school district in an amount equal to ninety
    |
0015|     percent of the district's estimated entitlement as determined by
    |
0016|     the projected membership for the school year.  A school
    |
0017|     district's entitlement is that portion of the total amount of
    |
0018|     the annual appropriation that the projected membership bears to
    |
0019|     the projected membership of the state.  Kindergarten membership
    |
0020|     shall be calculated on a one-half full-time equivalent basis.
    |
0021|            C.  On or before January 30 of each year, the bureau
    |
0022|     shall recompute each entitlement using the final funded
    |
0023|     membership for that year and shall allocate the balance of the
    |
0024|     annual appropriation adjusting for any over- or under-projection
    |
0025|     of membership.
    |
0001|            D.  Any school district receiving funding pursuant to
    |
0002|     the Technology for Education Act:
    |
0003|                 <u>(1)</u>  is responsible for the purchase,
    |
0004|     distribution, use and maintenance of educational technology; and
    |
0005|                 <u>(2)  shall use ten percent of its annual
</u>    |
<u></u>0006| <u>    entitlement for purchase of adaptive or assistive technology for
</u>    |
<u></u>0007| <u>    students with disabilities</u>.
    |
0008|            E.  As used in this section:  
    |
0009|                 <u>(1)  "annual appropriation" means for any
</u>    |
<u></u>0010| <u>    fiscal year the sum of appropriations to the educational
</u>    |
<u></u>0011| <u>    technology fund for the fiscal year and ninety percent of state
</u>    |
<u></u>0012| <u>    lottery revenues distributed to the fund in the prior fiscal
</u>    |
<u></u>0013| <u>    year; and</u> 
    |
0014|                 <u>(2)</u>  "membership" means the total enrollment
    |
0015|     of qualified students, as defined in the Public School Finance
    |
0016|     Act, on the current roll of class or school on a specified day. 
    |
0017|     The current roll is established by the addition of original
    |
0018|     entries and re-entries minus withdrawals.  Withdrawal of
    |
0019|     students, in addition to students formally withdrawn from the
    |
0020|     public school, includes students absent from the public school
    |
0021|     for as many as ten consecutive school days."
    |
0022|                                    
    |
0023|   
    |
0024|                    FORTY-SECOND LEGISLATURE
    |
0025|                      SECOND SESSION, 1996
    |
0001|   
    |
0002|   
    |
0003|                                              JANUARY 31, 1996
    |
0004|   
    |
0005|   Mr. President:
    |
0006|   
    |
0007|     Your COMMITTEES' COMMITTEE, to whom has been referred
    |
0008|   
    |
0009|                           SENATE BILL 637
    |
0010|   
    |
0011|   has had it under consideration and finds same to be GERMANE, PURSUANT
    |
0012|   TO CONSTITUTIONAL PROVISIONS, and thence referred to the EDUCATION
    |
0013|   COMMITTEE.
    |
0014|   
    |
0015|                              Respectfully submitted,
    |
0016|   
    |
0017|   
    |
0018|   
    |
0019|   
    |
0020|                              __________________________________
    |
0021|                              SENATOR MANNY M. ARAGON, Chairman 
    |
0022|   
    |
0023|   
    |
0024|   
    |
0025|   Adopted_______________________ Not Adopted_______________________
    |
0001|             (Chief Clerk)                        (Chief Clerk)
    |
0002|   
    |
0003|   
    |
0004|                     Date ________________________
    |
0005|   
    |
0006|   
    |
0007|   
    |
0008|     S0637CC1  
    |
0009|   
    |
0010|                      FORTY-SECOND LEGISLATURE
    |
0011|                        SECOND SESSION, 1996
    |
0012|   
    |
0013|   
    |
0014|                                                   February 8, 1996
    |
0015|   
    |
0016|   Mr. President:
    |
0017|   
    |
0018|     Your EDUCATION COMMITTEE, to whom has been referred
    |
0019|   
    |
0020|                           SENATE BILL 637
    |
0021|   
    |
0022|   has had it under consideration and reports same with recommendation that
    |
0023|   it DO PASS, and thence referred to the SELECT GAMING COMMITTEE.
    |
0024|   
    |
0025|                              Respectfully submitted,
    |
0001|   
    |
0002|   
    |
0003|   
    |
0004|                              __________________________________
    |
0005|                              Carlos R. Cisneros, Chairman 
    |
0006|   
    |
0007|   
    |
0008|   Adopted_______________________ Not Adopted_______________________
    |
0009|             (Chief Clerk)                          (Chief Clerk)
    |
0010|   
    |
0011|   
    |
0012|                     Date ________________________
    |
0013|   
    |
0014|   
    |
0015|   The roll call vote was <u> 6 </u> For <u> 0 </u> Against
    |
0016|   Yes:  6
    |
0017|   No:        0
    |
0018|   Excused:   Benavides, Carraro, Duran, Scott
    |
0019|   Absent:    None
    |
0020|   
    |
0021|   
    |
0022|   S0637ED1
    |
0023|   
    |
0024|   
    |