0001|                         HOUSE BILL 158
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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|                        DANIEL P. SILVA
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0006|     
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0007|     
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0008|     
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0009|     
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0010|     
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0011|                             AN ACT
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0012|     RELATING TO STATE LOTTERY REVENUES; EARMARKING SIXTY PERCENT OF
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0013|     NET LOTTERY REVENUES FOR DISTRIBUTION TO PUBLIC SCHOOLS FOR
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0014|     EDUCATIONAL TECHNOLOGY PURSUANT TO THE TECHNOLOGY FOR EDUCATION
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0015|     ACT.
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0016|     
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0017|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0018|       Section 1.  Section 6-24-24 NMSA 1978 (being Laws 1995,
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0019|     Chapter 155, Section 24) is amended to read:
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0020|       "6-24-24.  DISPOSITION OF REVENUE.--
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0021|            A.  As nearly as practical, an amount equal to at
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0022|     least fifty percent of the gross annual revenues from the sale
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0023|     of lottery tickets shall be returned to the public in the form
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0024|     of lottery prizes.
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0025|            B.  The authority shall transmit all net revenues to
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0001|     the state treasurer who shall deposit sixty percent of the
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0002|     revenues in the <s>[public school capital outlay]</s> <u>educational
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<u></u>0003| <u>    technology</u> fund for expenditure pursuant to the provisions of
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0004|     the <s>[Public School Capital Outlay Act]</s> <u>Technology for
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<u></u>0005| <u>    Education Act</u> and forty percent in the lottery tuition fund. 
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0006|     Estimated net revenues shall be transmitted monthly to the state
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0007|     treasurer for deposit in the funds, provided the total amount of
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0008|     annual net revenues for the fiscal year shall be transmitted no
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0009|     later than August 1 <s>[each]</s> <u>of the following fiscal</u> year.
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0010|            C.  In determining net revenues, operating expenses
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0011|     of the lottery include all costs incurred in the operation and
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0012|     administration of the lottery and all costs resulting from any
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0013|     contracts entered into for the purchase or lease of goods or
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0014|     services required by the lottery, including but not limited to
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0015|     the costs of supplies, materials, tickets, independent audit
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0016|     services, independent studies, data transmission, advertising,
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0017|     promotion, incentives, public relations, communications,
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0018|     commissions paid to lottery retailers, printing, distribution of
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0019|     tickets, purchases of annuities or investments to be used to pay
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0020|     future installments of winning lottery tickets, debt service and
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0021|     payment of any revenue bonds issued, contingency reserves,
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0022|     transfers to the reserve fund and any other necessary costs
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0023|     incurred in carrying out the provisions of the New Mexico
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0024|     Lottery Act.
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0025|            D.  An amount up to two percent of the gross annual
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0001|     revenues shall be set aside as a reserve fund to cover bonuses
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0002|     and incentive plans for lottery retailers, special promotions
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0003|     for retailers, purchasing special promotional giveaways,
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0004|     sponsoring special promotional events, compulsive gambling
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0005|     rehabilitation and such other purposes as the board deems
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0006|     necessary to maintain the integrity and meet the revenue goals
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0007|     of the lottery.  The board shall report annually to the governor
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0008|     and each regular session of the legislature on the use of the
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0009|     money in the reserve fund.  Any balance in excess of fifty
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0010|     thousand dollars ($50,000) at the end of any fiscal year shall
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0011|     be transferred to the lottery tuition fund."
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0012|       Section 2.  Section 6-24-27 NMSA 1978 (being Laws 1995,
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0013|     Chapter 155, Section 27) is amended to read:
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0014|       "6-24-27.  REVENUE AND BUDGET REPORTS--RECORDS--INDEPENDENT
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0015|     AUDITS.--
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0016|            A.  The board shall:
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0017|                 (l)  submit quarterly and annual reports to the
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0018|     governor, legislative finance committee and lottery oversight
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0019|     committee disclosing the total lottery revenue, prizes,
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0020|     commissions, ticket costs, operating expenses and net revenues
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0021|     of the authority during the reporting period and, in the annual
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0022|     report, describe the organizational structure of the authority
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0023|     and summarize the functions performed by each organizational
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0024|     division within the authority;
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0025|                 (2)  maintain weekly or more frequent records of
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0001|     lottery transactions, including the distribution of lottery
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0002|     tickets to retailers, revenue received, claims for prizes,
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0003|     prizes paid, prizes forfeited and other financial transactions
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0004|     of the authority; and
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0005|                 (3)  use the state government fiscal year.
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0006|            B.  The board shall provide, for informational
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0007|     purposes, to the department of finance and administration and
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0008|     the legislative finance committee, by December 1 of each year, a
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0009|     copy of the annual proposed operating budget for the authority
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0010|     for the succeeding fiscal year.  This budget proposal shall also
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0011|     be accompanied by an estimate of the net revenues to be
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0012|     deposited in the <s>[public school capital outlay]</s> <u>educational
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<u></u>0013| <u>    technology</u> fund and the lottery tuition fund for the current
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0014|     and succeeding fiscal years.  
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0015|            C.  The board shall contract with an independent
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0016|     certified public accountant or firm for an annual financial
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0017|     audit of the authority.  The certified public accountant or firm
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0018|     shall have no financial interest in any lottery contractor.  The
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0019|     certified public accountant or firm shall present an audit
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0020|     report no later than March 1 for the prior fiscal year.  The
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0021|     certified public accountant or firm shall evaluate the internal
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0022|     auditing controls in effect during the audit period.  The cost
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0023|     of this financial audit shall be an operating expense of the
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0024|     authority.  The legislative finance committee may, at any time,
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0025|     order an audit of any phase of the operations of the authority,
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0001|     at the expense of the authority, and shall receive a copy of the
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0002|     annual independent financial audit.  A copy of any audit
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0003|     performed by the certified public accountant or ordered by the
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0004|     legislative finance committee shall be transmitted to the
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0005|     governor, the speaker of the house of representatives, the
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0006|     president pro tempore of the senate, the legislative finance
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0007|     committee and the lottery oversight committee."
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0008|       Section 3.  Section 22-15A-9 NMSA 1978 (being Laws 1994,
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0009|     Chapter 96, Section 9) is amended to read:
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0010|       "22-15A-9.  EDUCATIONAL TECHNOLOGY FUND--DISTRIBUTION.--
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0011|            A.  Upon annual review and approval of a school
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0012|     district's educational technology plan, the bureau shall
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0013|     determine a separate distribution from the educational
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0014|     technology fund for each school district.
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0015|            B.  On or before July 31 of each year, the bureau
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0016|     shall distribute money in the educational technology fund
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0017|     directly to each school district in an amount equal to ninety
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0018|     percent of the district's estimated entitlement as determined by
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0019|     the projected membership for the school year.  A school
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0020|     district's entitlement is that portion of the total amount of
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0021|     the annual appropriation that the projected membership bears to
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0022|     the projected membership of the state.  Kindergarten membership
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0023|     shall be calculated on a one-half full-time equivalent basis.
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0024|            C.  On or before January 30 of each year, the bureau
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0025|     shall recompute each entitlement using the final funded
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0001|     membership for that year and shall allocate the balance of the
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0002|     annual appropriation adjusting for any over- or under-projection
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0003|     of membership.
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0004|            D.  Any school district receiving funding pursuant to
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0005|     the Technology for Education Act is responsible for the
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0006|     purchase, distribution, use and maintenance of educational
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0007|     technology.
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0008|            E.  As used in this section:  
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0009|                 <u>(1)  "annual appropriation" means for any
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<u></u>0010| <u>    fiscal year the sum of appropriations to the educational
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<u></u>0011| <u>    technology fund for the fiscal year and all state lottery
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<u></u>0012| <u>    revenues distributed to the fund in the prior fiscal year; and</u> 
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0013|                 <u>(2)</u>  "membership" means the total enrollment
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0014|     of qualified students, as defined in the Public School Finance
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0015|     Act, on the current roll of class or school on a specified day. 
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0016|     The current roll is established by the addition of original
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0017|     entries and re-entries minus withdrawals.  Withdrawal of
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0018|     students, in addition to students formally withdrawn from the
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0019|     public school, includes students absent from the public school
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0020|     for as many as ten consecutive school days."
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0021|                              
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