SENATE BILL 8
52nd legislature - STATE OF NEW MEXICO - first session, 2015
INTRODUCED BY
Carlos R. Cisneros and Roberto "Bobby" J. Gonzales
AN ACT
RELATING TO PUBLIC SCHOOLS; MAKING LOCALLY CHARTERED AND STATE-CHARTERED CHARTER SCHOOLS ELIGIBLE TO RECEIVE A PRORATED SHARE OF EDUCATION TECHNOLOGY EQUIPMENT PURCHASED BY A SCHOOL DISTRICT THROUGH A LEASE-PURCHASE ARRANGEMENT UNDER PROVISIONS OF THE EDUCATION TECHNOLOGY EQUIPMENT ACT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 6-15A-1 NMSA 1978 (being Laws 1997, Chapter 193, Section 1) is amended to read:
"6-15A-1. SHORT TITLE.--[Sections 1 through 16 of this act] Chapter 6, Article 15A NMSA 1978 may be cited as the "Education Technology Equipment Act"."
SECTION 2. Section 6-15A-3 NMSA 1978 (being Laws 1997, Chapter 193, Section 3, as amended) is amended to read:
"6-15A-3. DEFINITIONS.--As used in the Education Technology Equipment Act:
A. "debt" means an obligation payable from ad valorem property tax revenues or the general fund of a school district and that may be secured by the full faith and credit of a school district and a pledge of its taxing powers;
B. "department" means the public education department;
[B.] C. "education technology equipment" means tools used in the educational process that constitute learning and administrative resources and may include:
(1) closed-circuit television systems; educational television and radio broadcasting; cable television, satellite, copper and fiber-optic transmission; computer, network connection devices; digital communications equipment (voice, video and data); servers; switches; portable media such as discs and drives to contain data for electronic storage and playback; and purchase or lease of software licenses or other technologies and services, maintenance, equipment and computer infrastructure information, techniques and tools used to implement technology in schools and related facilities; [and]
(2) improvements, alterations and modifications to, or expansions of, existing buildings or personal property necessary or advisable to house or otherwise accommodate any of the tools listed in Paragraph (1) of this subsection; and
(3) expenditures for technical support, including salary, benefits and training expenses of school district employees who administer education technology projects funded by a lease-purchase arrangement and may include training by contractors;
D. "eligible charter school" means a locally chartered or state-chartered charter school located within the geographic boundaries of a school district:
(1) that timely provides the information necessary to identify the lease-purchase education technology equipment needed in the charter school to be included in the local school board resolution for lease-purchase of education technology equipment; and
(2) for which the proposed lease-purchase of education technology equipment is included in the school district's approved technology master plan;
[C.] E. "lease-purchase arrangement" means a financing arrangement constituting [debt] a financial obligation of a school district pursuant to which periodic lease payments composed of principal and interest components are to be paid to the holder of the lease-purchase arrangement and pursuant to which the owner of the education technology equipment may retain title to or a security interest in the equipment and may agree to release the security interest or transfer title to the equipment to the school district for nominal consideration after payment of the final periodic lease payment. "Lease-purchase arrangement" also means any [debt] financial obligation of the school district incurred for the purpose of acquiring education technology equipment pursuant to the Education Technology Equipment Act whether designated as a general obligation lease, note or other instrument evidencing a [debt] financial obligation of the school district;
[D.] F. "local school board" means the governing body of a school district; and
[E.] G. "school district" means an area of land established as a political subdivision of the state for the administration of public schools and segregated geographically for taxation and bonding purposes."
SECTION 3. A new section of the Education Technology Equipment Act is enacted to read:
"[NEW MATERIAL] CHARTER SCHOOLS--RECEIPT OF EDUCATION TECHNOLOGY EQUIPMENT.--On or after July 1, 2015, a school district that assumes a financial obligation through a lease-purchase arrangement under the provisions of the Education Technology Equipment Act shall provide, to each eligible charter school in the school district, education technology equipment equal in value to an amount based upon the net proceeds from the financial obligation after payment of the cost of issuing the financial obligation through a lease-purchase arrangement prorated by the number of students enrolled in the school district and in eligible charter schools as reported on the first reporting date of the prior school year; provided that, in the case of an approved eligible charter school that had not commenced classroom instruction in the prior school year, the estimated full-time-equivalent enrollment in the first year of instruction, as shown in the approved charter school application, shall be used to determine the amount, subject to adjustment after the first reporting date."
SECTION 4. Section 22-18-13 NMSA 1978 (being Laws 2003, Chapter 46, Section 1, as amended) is amended to read:
"22-18-13. TIMELY PAYMENT OF SCHOOL DISTRICT OBLIGATIONS.--
A. Whenever a paying agent has not received payment of principal or interest on school district general obligation bonds or on a lease-purchase arrangement assumed by a school district under provisions of the Education Technology Equipment Act on the business day immediately prior to the date on which the payment is due, the paying agent shall so notify the department of finance and administration, the department and the school district by telephone, facsimile or other similar communication, followed by written verification, of the payment status. The department of finance and administration shall immediately contact the school district and determine whether the school district will make the payment by the date on which it is due.
B. Except as provided in Subsection C of this section, if the school district indicates that it will not make the payment by the date on which it is due, the department of finance and administration shall forward the amount in immediately available funds necessary to make the payment due on the bonds or on the lease-purchase arrangement to the paying agent and shall withhold an equal amount from the next succeeding payment of the state equalization guarantee distribution. If the amount of the next succeeding payment is insufficient to pay the amount due, the department of finance and administration shall withhold amounts from each succeeding payment of the state equalization guarantee distribution, including payments to be made in succeeding fiscal years but not more than twelve consecutive months of payments, until the total payment of principal and interest due has been withheld.
C. For a payment due on a bond issued on or after [the effective date of this 2007 act] March 30, 2007 or on the lease-purchase arrangement entered into by a school district after July 15, 2015, if the school district indicates that it will not make the payment by the date on which it is due, the department of finance and administration shall forward the amount in immediately available funds necessary to make the payment due on the bonds or the lease-purchase arrangement to the paying agent from the current fiscal year's undistributed state equalization guarantee distribution to that school district or eligible charter school and, if not otherwise repaid by the school district or eligible charter school from other legally available funds, withhold the distributions from the school district or eligible charter school until the amount has been recouped by the department of finance and administration, provided that, if the amount of the undistributed state equalization guarantee distribution in the current fiscal year is less than the payment due on the bond, the department of finance and administration shall:
(1) forward in immediately available funds to the paying agent an amount equal to the total amount of the school district's or eligible charter school's undistributed state equalization guarantee distribution and, if not otherwise repaid by the school district or eligible charter school from other legally available funds, withhold all distributions to the school district or eligible charter school for the remainder of the fiscal year; and
(2) on July 1 of the following fiscal year, forward in immediately available funds an amount equal to the remaining amount due to the paying agent from that year's state equalization guarantee distribution and, if not otherwise repaid by the school district or eligible charter school from other legally available funds, withhold an equal amount from the distribution to the school district or eligible charter school until the amount paid has been recouped in full.
D. The amounts forwarded to the paying agent by the department of finance and administration shall be applied by the paying agent solely to the payment of the principal or interest due on the general obligation bonds or the lease-purchase arrangement of the school district or eligible charter school. The department of finance and administration shall notify the department; the chief financial officer of the school district [the department of finance and administration] or eligible charter school; the legislative finance committee; and the legislative education study committee of amounts withheld and payments made pursuant to this section.
E. Upon the issuance of general obligation bonds by a school district, the school district shall file with the department of finance and administration a copy of the resolution that authorizes the issuance of the bonds or a lease-purchase arrangement under the provisions of the Education Technology Equipment Act, a copy of the official statement or other offering document for the bonds, the agreement, if any, with the paying agent for the bonds and the name, address and telephone number of the paying agent; provided, however, that the failure of a school district to file the information shall not affect the obligation of the department of finance and administration to withhold the state equalization guarantee distribution pursuant to this section.
F. The state hereby covenants with the purchasers and holders of general obligation bonds issued or a lease-purchase arrangement under the provisions of the Education Technology Equipment Act entered into by school districts that it will not repeal, revoke or rescind the provisions of this section or modify or amend the same so as to limit or impair the rights and remedies granted by this section; provided that nothing in this subsection shall be deemed or construed to require the state to continue the payment of a state equalization guarantee distribution to any school district or eligible charter school or to limit or prohibit the state from repealing, amending or modifying any law relating to the amount of state equalization guarantee distributions to school districts or eligible charter schools or the manner of payment or the timing thereof. Nothing in this section shall be deemed or construed to create a debt of the state with respect to the bonds within the meaning of any state constitutional provision or to create any liability except to the extent provided in this section.
G. Whenever the department of finance and administration is required by this section to make a payment of principal or interest on bonds on behalf of a school district, the department shall initiate an audit of the school district and eligible charter school to determine the reason for the nonpayment and to assist the school district, if necessary, in developing and implementing measures to ensure that future payments will be made when due.
H. Whenever the department of finance and administration makes a payment of principal and interest on bonds or other obligations of a school district and withholds amounts from the state equalization guarantee distribution pursuant to this section because of the failure to collect property taxes, the school district or eligible charter school may transfer delinquent property taxes later collected out of the school district's bond redemption fund and into its general fund.
I. This section applies to general obligation bonds issued by a school district on or after July 1, 2003 and financial obligations assumed by a school district under the provisions of the Education Technology Equipment Act on or after July 1, 2015."
SECTION 5. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2015.
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