0001|                         HOUSE BILL 42
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0002|     42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION,
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0003|     1996
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0004|                         INTRODUCED BY
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0005|                      W.C. "DUB" WILLIAMS
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0006|     
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0007|                                
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0008|     
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0009|          FOR THE LEGISLATIVE EDUCATION STUDY COMMITTEE
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0010|                                  
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0011|                             AN ACT
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0012|     RELATING TO PUBLIC SCHOOLS; REQUIRING THE STATE DEPARTMENT OF
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0013|     PUBLIC EDUCATION TO ENACT PROCEDURES TO ENSURE THAT SCHOOL
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0014|     DISTRICTS COMPLY WITH ACCOUNTING AND BUDGETING REGULATIONS;
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0015|     DIRECTING THE STATE DEPARTMENT OF PUBLIC EDUCATION TO ENACT
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0016|     REGULATIONS REQUIRING SCHOOL DISTRICTS TO SUBMIT ANNUAL
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0017|     ACCOUNTING AND BUDGETING REPORTS; AMENDING THE PUBLIC SCHOOL
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0018|     CODE. 
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0019|     
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0020|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0021|       Section 1.  Section 22-8-5 NMSA 1978 (being Laws 1967,
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0022|     Chapter 16, Section 59, as amended) is amended to read:
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0023|       "22-8-5.  MANUAL OF ACCOUNTING AND BUDGETING.--
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0024|            A.  The department shall compile and publish a manual
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0025|     prescribing detailed regulations for a uniform system of
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0001|     accounting and budgeting of funds for all public schools and
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0002|     school districts of the state.  The manual of regulations and
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0003|     any revision or amendments thereto shall become effective only
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0004|     upon approval by the state board <s>[of education]</s> and the
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0005|     legislative finance committee, filing with the state records
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0006|     center and publication.  A copy shall also be filed with the
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0007|     department of finance and administration.
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0008|            B.  All public schools and school districts shall
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0009|     comply with the regulations prescribed in the manual of
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0010|     accounting and budgeting and shall, upon request, submit
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0011|     additional reports concerning finances to the department.  In
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0012|     addition, upon request, all public schools and school districts
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0013|     shall file reports with the department containing pertinent
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0014|     details regarding applications for federal money or federal
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0015|     grants-in-aid or regarding federal money or federal grants-in-aid received, including but not limited to details of programs,
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0016|     matching funds, personnel requirements, salary provisions and
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0017|     program numbers, as indicated in the catalog of federal domestic
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0018|     assistance, of the federal funds applied for and of those
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0019|     received.
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0020|            <u>C.  The department shall develop procedures for
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<u></u>0021| <u>    ensuring that local school districts comply with the regulations
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<u></u>0022| <u>    prescribed in the manual of accounting and budgeting.  The
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<u></u>0023| <u>    department shall require local school districts to submit
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<u></u>0024| <u>    annually a report on the district's internal control policies
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<u></u>0025| <u>    and procedures.  The report shall be submitted with each budget
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<u></u>0001| <u>    request required pursuant to Section 22-8-12.1 NMSA 1978,
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<u></u>0002| <u>    include information on the internal control structure for all
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<u></u>0003| <u>    school district transactions and specify the individuals
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<u></u>0004| <u>    involved in the accounting and budgeting process during the
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<u></u>0005| <u>    accounting cycle</u>.<u>
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<u></u>0006| <u>    </u>      <s>[C.]</s> <u>D.</u>  Upon request by the department of
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0007|     finance and administration, the legislative finance committee or
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0008|     the legislative education study committee, the <s>[state]</s>
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0009|     department <s>[of public education]</s> shall timely furnish
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0010|     information and data obtained from public schools and school
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0011|     districts pursuant to Subsection B of this section."
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0012|                            - 3 -
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0013|     
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