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