0001| SENATE EDUCATION COMMITTEE SUBSTITUTE FOR
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0002| SENATE BILL 184
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0003| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0004|
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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|
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0011| AN ACT
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0012| RELATING TO STATE LOTTERY REVENUES; CHANGING THE DISPOSITION OF
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0013| LOTTERY NET REVENUES FOR PUBLIC SCHOOL PURPOSES TO INCLUDE
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0014| FUNDING FOR EDUCATIONAL TECHNOLOGY PURSUANT TO THE TECHNOLOGY
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0015| FOR EDUCATION ACT; CREATING THE LOTTERY TUITION TRUST FUND;
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0016| AMENDING AND ENACTING SECTIONS OF THE NMSA 1978; AMENDING A
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0017| SECTION OF LAWS 1995; MAKING APPROPRIATIONS.
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0018|
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0019| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0020| Section 1. A new section of the New Mexico Lottery Act is
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0021| enacted to read:
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0022| "[NEW MATERIAL] LOTTERY TUITION TRUST FUND CREATED--
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0023| PURPOSE.--
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0024| A. The "lottery tuition trust fund" is created in
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0025| the state treasury. The fund shall be administered by the
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0001| commission on higher education as a permanent trust fund. The
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0002| commission shall provide for investment of the fund by the
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0003| state investment council. Earnings from investment of the fund
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0004| shall accrue to the credit of the fund. Any balance in the
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0005| fund at the end of any fiscal year shall remain in the fund and
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0006| shall not be appropriated for any purpose except as provided in
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0007| Subsection B of this section.
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0008| B. Beginning in fiscal year 2007, an amount not to
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0009| exceed five percent of the balance in the lottery tuition trust
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0010| fund on June 30 of the prior fiscal year may be appropriated
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0011| annually by the legislature to the commission on higher
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0012| education for distribution to New Mexico's public post-
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0013| secondary educational institutions to provide tuition
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0014| assistance for New Mexico resident undergraduates as provided
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0015| by law."
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0016| Section 2. Section 6-24-24 NMSA 1978 (being Laws 1995,
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0017| Chapter 155, Section 24) is amended to read:
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0018| "6-24-24. DISPOSITION OF REVENUE.--
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0019| A. As nearly as practical, an amount equal to at
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0020| least fifty percent of the gross annual revenues from the sale
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0021| of lottery tickets shall be returned to the public in the form
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0022| of lottery prizes.
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0023| B. The authority shall transmit all net revenues to
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0024| the state treasurer, who shall deposit [sixty] twenty-five
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0025| percent of the revenues in the public school capital outlay
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0001| fund for expenditure pursuant to the provisions of the Public
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0002| School Capital Outlay Act, twenty-five percent in the
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0003| educational technology fund for expenditure pursuant to the
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0004| Technology for Education Act, ten percent in the lottery tuition
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0005| trust fund and forty percent in the lottery tuition fund.
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0006| Estimated net revenues shall be transmitted monthly to the state
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0007| treasurer for deposit in the funds; provided the total amount of
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0008| annual net revenues for the fiscal year shall be transmitted no
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0009| later than August 1 [each] of the following fiscal year.
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0010| C. In determining net revenues, operating expenses of
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0011| the lottery include all costs incurred in the operation and
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0012| administration of the lottery and all costs resulting from any
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0013| contracts entered into for the purchase or lease of goods or
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0014| services required by the lottery, including [but not limited to]
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0015| the costs of supplies, materials, tickets, independent audit
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0016| services, independent studies, data transmission, advertising,
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0017| promotion, incentives, public relations, communications,
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0018| commissions paid to lottery retailers, printing, distribution of
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0019| tickets, purchases of annuities or investments to be used to pay
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0020| future installments of winning lottery tickets, debt service and
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0021| payment of any revenue bonds issued, contingency reserves,
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0022| transfers to the reserve fund and any other necessary costs
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0023| incurred in carrying out the provisions of the New Mexico Lottery
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0024| Act.
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0025| D. An amount up to two percent of the gross annual
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0001| revenues shall be set aside as a reserve fund to cover bonuses and
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0002| incentive plans for lottery retailers, special promotions for
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0003| retailers, purchasing special promotional giveaways, sponsoring
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0004| special promotional events, compulsive gambling rehabilitation and
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0005| such other purposes as the board deems necessary to maintain the
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0006| integrity and meet the revenue goals of the lottery. The board
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0007| shall report annually to the governor and each regular session of
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0008| the legislature on the use of the money in the reserve fund. Any
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0009| balance in excess of fifty thousand dollars ($50,000) at the end
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0010| of any fiscal year shall be transferred to the lottery tuition
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0011| fund."
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0012| Section 3. Section 6-24-27 NMSA 1978 (being Laws 1995,
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0013| Chapter 155, Section 27) is amended to read:
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0014| "6-24-27. REVENUE AND BUDGET REPORTS--RECORDS--INDEPENDENT
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0015| AUDITS.--
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0016| A. The board shall:
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0017| (1) submit quarterly and annual reports to the
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0018| governor, legislative finance committee and lottery oversight
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0019| committee disclosing the total lottery revenue, prizes,
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0020| commissions, ticket costs, operating expenses and net revenues of
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0021| the authority during the reporting period and, in the annual
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0022| report, describe the organizational structure of the authority and
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0023| summarize the functions performed by each organizational division
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0024| within the authority;
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0025| (2) maintain weekly or more frequent records of
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0001| lottery transactions, including the distribution of lottery
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0002| tickets to retailers, revenue received, claims for prizes, prizes
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0003| paid, prizes forfeited and other financial transactions of the
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0004| authority; and
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0005| (3) use the state government fiscal year.
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0006| B. The board shall provide, for informational
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0007| purposes, to the department of finance and administration and the
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0008| legislative finance committee, by December 1 of each year, a copy
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0009| of the annual proposed operating budget for the authority for the
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0010| succeeding fiscal year. This budget proposal shall also be
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0011| accompanied by an estimate of the net revenues to be deposited in
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0012| the public school capital outlay fund, the educational technology
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0013| fund, the lottery tuition trust fund and the lottery tuition fund
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0014| for the current and succeeding fiscal years.
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0015| C. The board shall contract with an independent
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0016| certified public accountant or firm for an annual financial audit
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0017| of the authority. The certified public accountant or firm shall
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0018| have no financial interest in any lottery contractor. The
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0019| certified public accountant or firm shall present an audit report
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0020| no later than March 1 for the prior fiscal year. The certified
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0021| public accountant or firm shall evaluate the internal auditing
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0022| controls in effect during the audit period. The cost of this
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0023| financial audit shall be an operating expense of the authority.
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0024| The legislative finance committee may, at any time, order an audit
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0025| of any phase of the operations of the authority, at the expense of
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0001| the authority, and shall receive a copy of the annual independent
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0002| financial audit. A copy of any audit performed by the certified
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0003| public accountant or ordered by the legislative finance committee
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0004| shall be transmitted to the governor, the speaker of the house of
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0005| representatives, the president pro tempore of the senate, the
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0006| legislative finance committee and the lottery oversight
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0007| committee."
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0008| Section 4. Section 22-15A-9 NMSA 1978 (being Laws 1994,
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0009| Chapter 96, Section 9) is amended to read:
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0010| "22-15A-9. EDUCATIONAL TECHNOLOGY FUND--DISTRIBUTION.--
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0011| A. Upon annual review and approval of a school
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0012| district's educational technology plan, the bureau shall determine
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0013| a separate distribution from the educational technology fund for
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0014| each school district.
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0015| B. On or before July 31 of each year, the bureau shall
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0016| distribute money in the educational technology fund directly to
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0017| each school district in an amount equal to ninety percent of the
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0018| district's estimated entitlement as determined by the projected
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0019| membership for the school year. A school district's entitlement
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0020| is that portion of the total amount of the annual appropriation
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0021| that the projected membership bears to the projected membership of
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0022| the state. Kindergarten membership shall be calculated on a one-
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0023| half full-time equivalent basis.
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0024| C. On or before January 30 of each year, the bureau
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0025| shall recompute each entitlement using the final funded membership
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0001| for that year and shall allocate the balance of the annual
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0002| appropriation adjusting for any over- or under-projection of
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0003| membership.
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0004| D. Any school district receiving funding pursuant to
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0005| the Technology for Education Act is responsible for the purchase,
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0006| distribution, use and maintenance of educational technology.
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0007| E. As used in this section:
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0008| (1) "annual appropriation" means for any fiscal
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0009| year the sum of appropriations to the educational technology fund
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0010| for the fiscal year and all state lottery revenues distributed to
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0011| the fund and available for distribution in that fiscal year; and
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0012| (2) "membership" means the total enrollment of
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0013| qualified students, as defined in the Public School Finance Act,
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0014| on the current roll of class or school on a specified day. The
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0015| current roll is established by the addition of original entries
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0016| and re-entries minus withdrawals. Withdrawal of students, in
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0017| addition to students formally withdrawn from the public school,
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0018| includes students absent from the public school for as many as ten
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0019| consecutive school days."
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0020| Section 5. Laws 1995, Chapter 155, Section 38 is amended to
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0021| read:
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0022| "Section 38. REPEAL.--Sections 23 and 24 of the New Mexico
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0023| Lottery Act are repealed effective July 1, [1999] 2007."
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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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