SENATE BILL 262

47th legislature - STATE OF NEW MEXICO - second session, 2006

INTRODUCED BY

Ben D. Altamirano

AN ACT

RELATING TO HIGHER EDUCATION; ENACTING THE HIGHER EDUCATION CAPITAL OUTLAY ACT; CREATING THE HIGHER EDUCATION CAPITAL OUTLAY COUNCIL AND THE HIGHER EDUCATION CAPITAL OUTLAY FUND; MAKING AN APPROPRIATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. SHORT TITLE.--This act may be cited as the "Higher Education Capital Outlay Act".

     Section 2. DEFINITIONS.--As used in the Higher Education Capital Outlay Act:

          A. "council" means the higher education capital outlay council;

          B. "fund" means the higher education capital outlay fund; and

          C. "institution" means a state educational institution confirmed by Article 12, Section 11 of the constitution of New Mexico or a two-year public post-secondary educational institution created pursuant to statute.

     Section 3. HIGHER EDUCATION CAPITAL OUTLAY COUNCIL.--

          A. The "higher education capital outlay council" is created, consisting of the following seven members:

                (1) the secretary of finance and administration or the secretary's designee;

                (2) the governor or the governor's designee;

                (3) the director of the legislative finance committee or the director's designee;

                (4) the director of the legislative council service or the director's designee;

                (5) the secretary of higher education or the secretary's designee;

                (6) a representative of a four-year institution, appointed by the governor; and

                (7) a representative of a two-year institution, appointed by the governor.

          B. The council shall investigate all applications for assistance from the fund and shall certify the approved applications for distribution of funds.

          C. The council shall elect a chair from among its members and shall meet at the call of the chair.

     Section 4. FUND CREATED.--The "higher education capital outlay fund" is created in the state treasury. The fund consists of appropriations, gifts, grants, donations and bequests made to the fund. The fund shall be administered by the department of finance and administration. Income from the fund shall be credited to the fund and money in the fund shall not be transferred or revert to any other fund at the end of a fiscal year. Money in the fund is appropriated to the council for the purposes of making grants to institutions for capital outlay projects approved by the council. Expenditures shall be made on warrant of the secretary of finance and administration on vouchers signed by the chair of the council.

     Section 5. PROJECTS--APPLICATION--APPROVAL.--

          A. The council shall develop criteria for assessing the critical capital outlay needs of each institution and for evaluating and prioritizing applications for grant assistance from the fund.

          B. Applications for grant assistance from the fund shall be made by institutions to the council in accordance with the requirements of the council. The council shall require as a condition of application that an institution have a current five-year facilities plan and a current preventive maintenance plan for all facilities of the institution.

          C. Using the criteria developed pursuant to Subsection A of this section, the council shall evaluate applications and prioritize those projects most in need of grant assistance from the fund. To the extent that money in the fund is available, the council shall award grant assistance for those prioritized projects.

          D. In awarding grant assistance, the council may require conditions and procedures necessary to ensure that the money is expended in the most prudent manner.

          E. No later than December 15 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 evaluate, prioritize and fund projects and all other council actions. The report shall be submitted to the governor, the legislative finance committee and the legislature.

     Section 6. APPROPRIATION.--One hundred million dollars ($100,000,000) is appropriated from the general fund to the higher education capital outlay fund for expenditure in fiscal year 2007 and subsequent fiscal years for the purpose of awarding grant assistance for capital outlay projects pursuant to the Higher Education Capital Outlay Act. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund.

- 4 -