HOUSE BILL 140
56th legislature - STATE OF NEW MEXICO - first session, 2023
INTRODUCED BY
Derrick J. Lente and G. Andrés Romero and Javier Martínez
and Patricia Roybal Caballero and Anthony Allison
FOR THE LEGISLATIVE EDUCATION STUDY COMMITTEE
AN ACT
RELATING TO EDUCATION; CREATING THE TRIBAL EDUCATION TRUST FUND; PROVIDING DISTRIBUTIONS TO THE PUBLIC EDUCATION DEPARTMENT; PROVIDING ACCOUNTABILITY MEASURES; PROVIDING REPORTING REQUIREMENTS; MAKING APPROPRIATIONS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. [NEW MATERIAL] TRIBAL EDUCATION TRUST FUND--CREATED--PURPOSE--DISTRIBUTIONS--APPROPRIATION.--
A. The "tribal education trust fund" is created as a nonreverting fund in the state treasury. The tribal education trust fund shall be used for any purpose enumerated in Section 22-23A-2 NMSA 1978 or in an intergovernmental agreement between an Indian nation, tribe or pueblo and the public education department. The fund consists of distributions, appropriations, gifts, grants and donations. Income from investment of the fund shall be credited to the fund. Money in the fund shall be expended only as provided in this section.
B. The state investment officer shall invest money in the tribal education trust fund in accordance with the prudent investor rule set forth in the Uniform Prudent Investor Act.
C. The state investment officer shall report quarterly to the legislative education study committee and the state investment council on the investments made pursuant to this section. Annually, a report shall be submitted no later than October 1 each year to the legislative education study committee and any other appropriate interim committees.
D. Beginning in fiscal year 2025, distributions from the tribal education trust fund shall be made to the public education department on July 1 of each year in which adequate money is available in the tribal education trust fund in an amount equal to the greater of two million five hundred thousand dollars ($2,500,000) or five percent of the average of the year-end market values of the tribal education trust fund for the preceding five calendar years; provided that the public education department shall distribute funding received pursuant to this subsection as provided by Subsection E of this section.
E. Beginning in fiscal year 2025, on August 1 of each year the public education department shall disburse money received pursuant to Subsection D of this section to each New Mexico tribe as follows:
(1) ninety percent of the total amount of the distribution made pursuant to Subsection D of this section shall be provided in equal amounts to each New Mexico tribe; and
(2) ten percent of the total amount of the distribution made pursuant to Subsection D of this section shall be provided to each New Mexico tribe in an amount proportional to the total number of New Mexico students served by that New Mexico tribe.
F. Money disbursed pursuant to Subsection E of this section shall be disbursed on warrants signed by the secretary of finance and administration pursuant to vouchers signed by the secretary of public education or the secretary's designee.
G. Beginning in fiscal year 2025 and in each subsequent fiscal year, the lesser of one percent of the tribal education trust fund or one hundred thousand dollars ($100,000) is appropriated from the tribal education trust fund to the public education department for expenditure in the fiscal year in which it is appropriated to administer the tribal education trust fund. Administrative costs include staff salaries and expenses related to administration of the tribal education trust fund. Any unexpended or unencumbered balance remaining at the end of any fiscal year shall revert to the tribal education trust fund.
H. In addition to the distribution pursuant to Subsection D of this section, money in the tribal education trust fund may be expended in the event that general fund balances, including all authorized revenues and transfers to the general fund and balances in the general fund operating reserve, the appropriation contingency fund, the tobacco settlement permanent fund, the state-support reserve fund and the tax stabilization reserve, will not meet the level of appropriations authorized from the general fund for a fiscal year. In that event, to avoid an unconstitutional deficit, the legislature may appropriate from the tribal education trust fund to the general fund only in the amount necessary to meet general fund appropriations for that fiscal year and only if the legislature has authorized transfers from the appropriation contingency fund, the general fund operating reserve, the tax stabilization reserve and the tobacco settlement permanent fund that exhaust those fund balances.
I. As used in this section, "New Mexico tribe" means an Indian nation, tribe or pueblo located wholly or partially in New Mexico in which Native American students are being educated in New Mexico.
SECTION 2. [NEW MATERIAL] TRIBAL EDUCATION TRUST FUND ACCOUNTABILITY MEASURES--REPORTING REQUIREMENTS--PUBLIC EDUCATION DEPARTMENT DUTIES.--
A. Prior to April 15 of each year, each tribal education department shall submit to the public education department a summary of its operating budget and plan for the ensuing fiscal year based on tribally determined goals and needs. This summary shall include a brief narrative describing how the budget and plan will contribute to meeting the purposes of the tribal education trust fund enumerated in Section 1 of this 2023 act.
B. Prior to October 15 of each year, each tribal education department shall submit to the public education department a spending report and an assessment of program impact, student engagement and student outcomes based on tribally determined criteria.
C. The public education department shall report to the legislative education study committee, any other appropriate interim committee and the New Mexico tribes no later than November 15 of each year the total disbursements made pursuant to Subsection E of Section 1 of this 2023 act for the previous fiscal year, a summary of tribal reports received and a projection of available disbursements pursuant to Subsection E of Section 1 of this 2023 act in the following fiscal year.
D. Nothing in this section shall interfere with the sovereignty of federally recognized New Mexico tribes.
E. The public education department may:
(1) establish procedures and adopt rules, after formal consultation with the New Mexico tribes, as required to administer and disburse money pursuant to Subsection E of Section 1 of this 2023 act;
(2) enter into intergovernmental agreements with the New Mexico tribes to disburse funding pursuant to Subsection E of Section 1 of this 2023 act; and
(3) solicit, receive and report on tribal education budgets, plans and reports pursuant to this section.
F. As used in this section, "New Mexico tribe" means an Indian nation, tribe or pueblo located wholly or partially in New Mexico in which Native American students are being educated in New Mexico.
SECTION 3. APPROPRIATION.--Fifty million dollars ($50,000,000) is appropriated from the public education reform fund to the tribal education trust fund for expenditure in fiscal year 2024 and subsequent fiscal years to carry out the purpose of that fund. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the public education reform fund.
SECTION 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2023.
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