NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to: SC336, SC426, SB532, SB37, SB585, HB141, HB44, HB526,

SOURCES OF INFORMATION

LFC Files

SUMMARY

Synopsis of Bill

House Joint Resolution 25 proposes, through an amendment to article 12, section 13 of the Constitution of New Mexico, to grant the Legislature authority over the boards of regents at higher educational institutions for the purpose of providing distance learning programs. The amendment proposed by this resolution shall be submitted to the people for their approval or rejection at the next general election or at any special election prior to that date which may be called for that purpose

Significant Issues

This resolution proposes to amend Article 12, Section 13 of the constitution of New Mexico by adding a new section D as outlined below:

D. The legislature may provide by law for distance learning programs."

FISCAL IMPLICATIONS

Passage of this bill, which proposes a constitutional amendment, may require an appropriation from the general fund to the Secretary of State for expenditure in FY02 to covers costs associated with holding a special election.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

Senate Bill 532 appropriates $5.0 million from the general fund to the telecommunications infrastructure fund for expenditure in fiscal year 2002 and subsequent fiscal years to implement the provisions of the Telecommunications Infrastructure Fund Act for the development of the telecommunications infrastructure for local communities, school districts, educational institutions and health care institutions, including facilities and equipment necessary for high-speed data transmission, is a prerequisite to economic development, distance learning and telemedicine in all areas of the state.

House Bill 526 appropriates $235.8 to the Department of Finance and Administration (DFA) Local Government Division to create ten educational access rooms to provide models for providing access to technology and education at community centers throughout New Mexico. The access rooms will be used for coordinated tutoring, distance learning, and parent involvement services.

SC336 one hundred twenty-five thousand dollars ($125,000) to purchase and install equipment for the instructional television classroom and other telecommunication expenses related to statewide distance education at the Roswell campus at eastern New Mexico University.

SC336 appropriates $500.0 to purchase distance education equipment.

OTHER SUBSTANTIVE ISSUES

Development of the telecommunications infrastructure for local communities, school districts, educational institutions and health care institution is a prerequisite to economic development, distance learning and telemedicine. Broadband telecommunications services have become critical for economic growth and survival. However, most local communities cannot finance these infrastructure needs alone because of inadequate bonding capacity and lag time between development and the generation of revenue, and private telecommunications providers have often been unwilling to provide such infrastructure because the projected return on investment in the infrastructure does not justify the cost over the short term.

LG/njw