0001| SENATE BILL 840
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0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003| INTRODUCED BY
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0004| MANNY M. ARAGON
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0005|
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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| AN ACT
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0011| RELATING TO TELECOMMUNICATIONS; AUTHORIZING CERTAIN
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0012| GOVERNMENTAL UNITS TO ENTER INTO TELECOMMUNICATIONS SAVINGS
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0013| CONTRACTS; CREATING A FUND; PROVIDING POWERS AND DUTIES;
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0014| AMENDING AND ENACTING SECTIONS OF THE NMSA 1978; MAKING AN
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0015| APPROPRIATION.
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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. [NEW MATERIAL] SHORT TITLE.--Sections 1
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0019| through 9 of this act may be cited as the "Public
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0020| Telecommunications Consolidation Act".
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0021| Section 2. [NEW MATERIAL] DEFINITIONS.--As used in the
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0022| Public Telecommunications Consolidation Act:
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0023| A. "governmental unit" means an agency, institution
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0024| or instrumentality of the state; a municipality; a county; or a
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0025| school district;
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0001| B. "guaranteed telecommunications savings contract"
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0002| means a contract for the evaluation and recommendation of
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0003| telecommunications consolidation measures and for the
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0004| implementation of one or more of those measures, and which
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0005| contract provides that all payments, except obligations on
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0006| termination of the contract before its expiration, are to be
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0007| made over time and the savings are guaranteed to the extent
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0008| necessary to make the payments for the telecommunications
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0009| consolidation measures;
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0010| C. "qualified provider" means a person or business
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0011| experienced in the design, implementation and installation of
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0012| telecommunications consolidation measures and who meets the
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0013| experience qualifications developed by the general services
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0014| department; and
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0015| D. "telecommunications consolidation measure" means
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0016| a training program or facility alteration designed to reduce
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0017| operating costs and may include voice, data, video, networking,
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0018| long distance rates and other functions, including security
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0019| alarm, environmental controls and landscape controls.
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0020| Section 3. [NEW MATERIAL] TELECOMMUNICATIONS SAVINGS
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0021| CONTRACTS AUTHORIZED--GUARANTEE REQUIRED.--
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0022| A. A governmental unit may enter into a guaranteed
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0023| telecommunications savings contract with a qualified provider
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0024| to reduce operating costs if, after review of the proposal from
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0025| the qualified provider, the governmental unit finds that:
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0001| (1) the amount the governmental unit would
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0002| spend on the telecommunications consolidation measures
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0003| recommended in the proposal is not likely to exceed the amount
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0004| to be saved in operational costs over ten years from the date
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0005| of installation if the recommendations in the proposal were
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0006| followed; and
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0007| (2) the qualified provider can provide a
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0008| written guarantee that the operating cost savings will meet or
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0009| exceed the costs of the system.
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0010| B. A guaranteed telecommunications savings contract
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0011| shall include a written guarantee from the qualified provider
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0012| that annual savings shall meet or exceed the cost of the
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0013| telecommunications consolidation measures.
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0014| C. A governmental unit may enter into an
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0015| installment payment contract or lease-purchase agreement for
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0016| the purchase and installation of telecommunications
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0017| consolidation measures pursuant to a guaranteed
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0018| telecommunications savings contract, but only in accordance
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0019| with the provisions of the Public Telecommunications
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0020| Consolidation Act.
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0021| Section 4. [NEW MATERIAL] GUARANTEED
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0022| TELECOMMUNICATIONS SAVINGS CONTRACT--PERFORMANCE BOND
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0023| REQUIRED.--No governmental unit shall enter into a guaranteed
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0024| telecommunications savings contract unless a performance bond
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0025| that meets the requirements of this section is delivered by the
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0001| qualified provider to the governmental unit and the bond
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0002| becomes binding on the parties upon the execution of the
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0003| contract. The qualified provider shall provide a performance
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0004| bond satisfactory to the governmental unit and its approving
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0005| agency executed by a surety company authorized to do business
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0006| in this state and approved by the state board of finance. The
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0007| bond shall be in an amount equal to the amount of the guarantee
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0008| given by the qualified provider in the guaranteed
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0009| telecommunications savings contract.
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0010| Section 5. [NEW MATERIAL] CONTRACT APPROVAL REQUIRED.-
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0011| -
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0012| A. No governmental unit shall enter into a
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0013| guaranteed telecommunications savings contract with a qualified
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0014| provider or any installment payment contract or lease-purchase
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0015| agreement pursuant to that contract, unless the contracts and
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0016| agreements are reviewed and approved as follows:
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0017| (1) for school districts, by the
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0018| superintendent of public instruction;
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0019| (2) for agencies, institutions and
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0020| instrumentalities of the state, by the secretary of general
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0021| services; and
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0022| (3) for municipalities and counties, by the
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0023| secretary of finance and administration.
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0024| B. The approval required under this section shall
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0025| be given upon a determination that the contracts and agreements
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0001| comply with the provisions of the Public Telecommunications
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0002| Consolidation Act and other applicable law and after review of
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0003| the governmental unit's budget and revenue sources.
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0004| Section 6. [NEW MATERIAL] CONTRACTS AND AGREEMENTS NOT
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0005| A GENERAL OBLIGATION OF THE GOVERNMENTAL UNIT.--Payment
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0006| obligations of a governmental unit pursuant to a guaranteed
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0007| telecommunications savings contract with a qualified provider
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0008| and any installment payment contract or lease-purchase
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0009| agreement pursuant to a guaranteed telecommunications savings
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0010| contract are not general obligations of the governmental unit
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0011| and are collectible only from revenues pledged for that
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0012| purpose.
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0013| Section 7. [NEW MATERIAL] PUBLIC SCHOOL
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0014| TELECOMMUNICATIONS CONSOLIDATION FUND CREATED--USE.--
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0015| A. The "public school telecommunications
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0016| consolidation fund" is created as a special fund in the state
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0017| treasury. The fund shall consist of money transferred to the
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0018| fund, from year to year, from the income of the permanent fund
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0019| and land income of which the common schools are the
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0020| beneficiary. No other money from any school district or state
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0021| source shall be deposited or paid into the public school
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0022| telecommunications consolidation fund.
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0023| B. Annually, after the calculation of the state
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0024| equalization guarantee distributions has been made, the
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0025| superintendent of public instruction shall determine the sum of
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0001| the deductions made in the state equalization guarantee
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0002| distributions of school districts pursuant to Paragraph (6) of
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0003| Subsection D of Section 22-8-25 NMSA 1978 and shall certify
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0004| that amount to the secretary of finance and administration.
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0005| Income from the permanent fund and land income of which the
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0006| common schools are the beneficiary equal to that amount shall
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0007| be transferred from the common school current fund to the
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0008| public school telecommunications consolidation fund.
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0009| C. Money in the public school telecommunications
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0010| consolidation fund is appropriated to the state department of
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0011| public education solely for the purpose of disbursing money to
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0012| school districts to make payments pursuant to any guaranteed
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0013| telecommunications savings contract between the school district
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0014| and a qualified provider or any installment contract or lease-
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0015| purchase agreement for the purchase and installation of
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0016| telecommunications consolidation measures pursuant to that
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0017| guaranteed telecommunications savings contract.
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0018| D. Disbursements from the public school
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0019| telecommunications consolidation fund shall be made only to
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0020| school districts and only upon certification by the
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0021| superintendent of public instruction that the disbursement is
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0022| for a payment authorized by the Public Telecommunications
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0023| Consolidation Act.
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0024| E. The superintendent of public instruction shall
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0025| submit to the legislative finance committee prior to each
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0001| regular legislative session a list of school districts
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0002| proposing to enter into approved guaranteed telecommunications
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0003| savings contracts in the succeeding fiscal year. The list
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0004| shall include information on the amount of the school
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0005| district's proposed annual payments and specific amounts that
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0006| utility and operational budget items are guaranteed to be
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0007| reduced to achieve the savings to make the payments.
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0008| F. Any unexpended or unencumbered balance remaining
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0009| in the public school telecommunications consolidation fund at
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0010| the end of any fiscal year shall be transferred to the public
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0011| school fund.
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0012| Section 8. [NEW MATERIAL] MUNICIPALITIES--USE OF
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0013| CERTAIN REVENUES AUTHORIZED.--Upon adoption of an ordinance by
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0014| an affirmative vote of a majority of the members of the
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0015| governing body at any regular or special meeting of the
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0016| governing body called for that purpose, a municipality may
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0017| pledge any or all revenues not otherwise pledged or obligated
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0018| from gross receipts taxes received by the municipality pursuant
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0019| to Sections 7-1-6.4 and 7-1-6.12 NMSA 1978 for payments
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0020| pursuant to a guaranteed telecommunications savings contract
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0021| with a qualified provider and any installment payment contract
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0022| or lease-purchase agreement pursuant to that guaranteed
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0023| telecommunications savings contract. The ordinance shall
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0024| declare the necessity for the guaranteed telecommunications
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0025| savings contract and related contracts or agreements and shall
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0001| designate the source of the pledged revenues. Revenues pledged
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0002| for such contract payments shall be deposited in a special
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0003| fund, and the municipality shall not use any other revenues to
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0004| make such payments. At the end of each fiscal year, any money
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0005| remaining in the special fund after payment obligations are met
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0006| may be transferred to any other fund of the municipality.
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0007| Section 9. [NEW MATERIAL] COUNTIES--USE OF CERTAIN
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0008| REVENUES AUTHORIZED.--Upon adoption of an ordinance by an
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0009| affirmative vote of a majority of the members of the board of
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0010| county commissioners at any regular or special meeting of the
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0011| board called for that purpose, a county may pledge any or all
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0012| of the revenue not otherwise pledged or obligated from the
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0013| first one-eighth of one percent increment and of one-half of
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0014| the revenue from the third one-eighth of one percent increment
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0015| of the county gross receipts tax transferred to the county
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0016| pursuant to Section 7-1-6.13 NMSA 1978 and any or all of the
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0017| revenue from the distribution related to the first one-eighth
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0018| of one percent increment made pursuant to Section 7-1-6.16 NMSA
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0019| 1978 for the purpose of making payments pursuant to a
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0020| guaranteed telecommunications savings contract with a qualified
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0021| provider or any installment payment contract or lease-purchase
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0022| agreement pursuant to that guaranteed telecommunications
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0023| savings contract. The ordinance shall declare the necessity
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0024| for the guaranteed telecommunications savings contract and
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0025| related contracts or agreements and shall designate the source
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0001| of the pledged revenues. Any revenues pledged for such
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0002| contract payments shall be deposited in a special fund, and the
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0003| county shall not use any other county or state revenue to make
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0004| such payments. At the end of each fiscal year, any money
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0005| remaining in the special fund after the payment obligations are
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0006| met may be transferred to any other fund of the county.
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0007| Section 10. Section 6-6-12 NMSA 1978 (being Laws 1968,
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0008| Chapter 72, Section 8, as amended) is amended to read:
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0009| "6-6-12. EXEMPTIONS FROM BATEMAN ACT.--Insurance
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0010| contracts not exceeding five years, lease-purchase agreements,
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0011| lease agreements, contracts providing for the operation or
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0012| provision and operation of a jail by an independent contractor
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0013| entered into by a local public body set out in Section 6-6-11
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0014| NMSA 1978, [and] guaranteed energy savings contracts and
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0015| installment payment contracts or lease-purchase agreements
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0016| pursuant to guaranteed energy savings contracts and guaranteed
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0017| telecommunications savings contracts and installments payment
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0018| contracts or lease-purchase agreements pursuant to guaranteed
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0019| telecommunications savings contracts are exempt from the
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0020| provisions of Section 6-6-11 NMSA 1978, and such contracts,
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0021| lease-purchase agreements, lease agreements and jail contracts
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0022| are declared not to constitute the creation of debt."
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0023| Section 11. Section 13-1-139 NMSA 1978 (being Laws 1984,
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0024| Chapter 65, Section 112, as amended) is amended to read:
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0025| "13-1-139. COST OR PRICING DATA NOT REQUIRED.--The cost
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0001| or pricing data relating to the award of a contract shall not
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0002| be required when:
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0003| A. the procurement is based on competitive sealed
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0004| bid;
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0005| B. the contract price is based on established
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0006| catalogue prices or market prices;
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0007| C. the contract price is set by law or regulation;
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0008| D. the contract is for professional services;
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0009| [or]
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0010| E. the contract is awarded pursuant to the Public
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0011| Building Energy Efficiency Act; or
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0012| F. the contract is awarded pursuant to the Public
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0013| Telecommunications Consolidation Act."
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0014| Section 12. Section 13-1-150 NMSA 1978 (being Laws 1984,
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0015| Chapter 65, Section 123, as amended by Laws 1993, Chapter 225,
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0016| Section 1 and also by Laws 1993, Chapter 231, Section 13) is
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0017| amended to read:
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0018| "13-1-150. MULTI-TERM CONTRACTS--SPECIFIED PERIOD.--A
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0019| multi-term contract for items of tangible personal property,
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0020| construction or services except for professional services, in
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0021| an amount under twenty-five thousand dollars ($25,000), may be
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0022| entered into for any period of time deemed to be in the best
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0023| interests of the state agency or a local public body not to
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0024| exceed four years; provided that the term of the contract and
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0025| conditions of renewal or extension, if any, are included in the
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0001| specifications and funds are available for the first fiscal
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0002| period at the time of contracting. If the amount of the
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0003| contract is twenty-five thousand dollars ($25,000) or more, the
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0004| term shall not exceed eight years, including all extensions and
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0005| renewals, except that for any such contract entered into
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0006| pursuant to the Public Building Energy Efficiency Act or the
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0007| Public Telecommunications Consolidation Act, the term shall
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0008| not exceed ten years, including all extensions and renewals.
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0009| Payment and performance obligations for succeeding fiscal
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0010| periods shall be subject to the availability and appropriation
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0011| of funds [therefore] therefor. A contract for professional
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0012| services, except for services required to support or operate
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0013| federally certified medicaid, financial assistance and child
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0014| support enforcement management information or payment systems,
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0015| may not exceed a term of four years, including all extensions
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0016| and renewals, except that a multi-term contract for the
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0017| services of trustees, escrow agents, registrars, paying agents,
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0018| letter of credit issuers and other forms of credit enhancement
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0019| and other similar services, excluding bond attorneys,
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0020| underwriters and financial advisors with regard to the
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0021| issuance, sale and delivery of public securities, may be for
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0022| the life of the securities or as long as the securities remain
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0023| outstanding."
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0024| Section 13. Section 22-8-25 NMSA 1978 (being Laws 1981,
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0025| Chapter 176, Section 5, as amended by Laws 1993, Chapter 226,
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0001| Section 23 and also by Laws 1993, Chapter 231, Section 14) is
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0002| amended to read:
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0003| "22-8-25. STATE EQUALIZATION GUARANTEE DISTRIBUTION--
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0004| DEFINITIONS--DETERMINATION OF AMOUNT.--
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0005| A. The state equalization guarantee distribution is
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0006| that amount of money distributed to each school district to
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0007| ensure that the school district's operating revenue, including
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0008| its local and federal revenues as defined in this section, is
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0009| at least equal to the school district's program cost.
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0010| B. "Local revenue", as used in this section, means
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0011| ninety-five percent of receipts to the school district derived
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0012| from that amount produced by a school district property tax
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0013| applied at the rate of fifty cents ($.50) to each one thousand
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0014| dollars ($1,000) of net taxable value of property allocated to
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0015| the school district and to the assessed value of products
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0016| severed and sold in the school district as determined under the
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0017| Oil and Gas Ad Valorem Production Tax Act and upon the assessed
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0018| value of equipment in the school district as determined under
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0019| the Oil and Gas Production Equipment Ad Valorem Tax Act.
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0020| C. "Federal revenue", as used in this section,
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0021| means ninety-five percent of receipts to the school district,
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0022| excluding amounts [which] that, if taken into account in
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0023| the computation of the state equalization guarantee
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0024| distribution, result, under federal law or regulations, in a
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0025| reduction in or elimination of federal school funding otherwise
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0001| receivable by the school district, derived from the following:
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0002| (1) the school district's share of forest
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0003| reserve funds distributed in accordance with Section 22-8-33
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0004| NMSA 1978; and
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0005| (2) grants from the federal government as
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0006| assistance to those areas affected by federal activity
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0007| authorized in accordance with Sections 236 through 240 of Title
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0008| 20 of the United States Code (commonly known as "PL 874 funds")
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0009| or an amount equal to the revenue the district was entitled to
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0010| receive if no application was made for such funds but deducting
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0011| from those grants the additional amounts to which school
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0012| districts would be entitled because of the provisions of
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0013| Subparagraph (D) of Paragraph (2) of Subsection (d) of Section
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0014| 238 of Title 20 of the United States Code.
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0015| D. To determine the amount of the state
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0016| equalization guarantee distribution, the state superintendent
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0017| shall:
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0018| (1) calculate the number of program units to
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0019| which each school district is entitled using the membership of
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0020| the fortieth day of the school year, except for school
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0021| districts with a MEM of [200] two hundred or less where the
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0022| number of program units shall be calculated on the fortieth day
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0023| membership of either the prior year or the current year,
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0024| whichever is greater, for all programs except special
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0025| education, which shall be calculated by using the membership on
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0001| December 1 of the school year; or
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0002| (2) calculate the number of program units to
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0003| which a school district operating under an approved [year-
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0004| round] variable school calendar is entitled using the
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0005| membership on an appropriate date established by the state
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0006| board;
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0007| (3) using the results of the calculations in
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0008| Paragraph (1) or (2) of this subsection and the instructional
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0009| staff training and experience index from the October report of
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0010| the prior school year, establish a total program cost of the
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0011| school district;
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0012| (4) calculate the local and federal revenues
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0013| as defined in this section;
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0014| (5) deduct the sum of the calculations made in
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0015| Paragraph (4) of this subsection from the program cost
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0016| established in Paragraph (3) of this subsection; and
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0017| (6) deduct the total amount of guaranteed
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0018| energy savings contract payments and guaranteed
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0019| telecommunications savings contract payments that the state
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0020| superintendent determines will be made to the school district
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0021| from the public school energy efficiency fund and the public
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0022| school telecommunications consolidation fund during the fiscal
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0023| year for which the state equalization guarantee distribution is
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0024| being computed.
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0025| E. The amount of the state equalization guarantee
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0001| distribution to which a school district is entitled is the
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0002| balance remaining after the deductions made in Paragraphs (5)
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0003| and (6) of Subsection D of this section.
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0004| F. The state equalization guarantee distribution
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0005| shall be distributed prior to June 30 of each fiscal year. The
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0006| calculation shall be based on the local and federal revenues
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0007| specified in this section received from June 1 of the previous
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0008| fiscal year through May 31 of the fiscal year for which the
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0009| state equalization guarantee distribution is being computed.
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0010| In the event that a district has received more state
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0011| equalization guarantee funds than its entitlement, a refund
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0012| shall be made by the district to the state general fund.
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0013| G. Notwithstanding the methods of calculating the
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0014| state equalization guarantee distribution in this section and
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0015| Laws 1974, Chapter 8, Section 22, if a school district received
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0016| funds under Section 2391 of Title 42 USCA and if the federal
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0017| government takes into consideration grants authorized by
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0018| Sections 236 through 240 of Title 20 of the United States Code
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0019| and all other revenues available to the school district in
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0020| determining the level of federal support for the school
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0021| district for the sixty-fourth and succeeding fiscal years, the
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0022| state equalization guarantee distribution for school districts
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0023| receiving funds under this subsection shall be computed as
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0024| follows:
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0025| fiscal year program cost prior fiscal year
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0001| excluding special education state equalization
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0002| for the year for which the x guarantee
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0003| distribution
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0004| state equalization guarantee excluding special
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0005| distribution is being computed education
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0006| prior fiscal year program cost
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0007| excluding special education
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0008|
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0009|
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0010| plus special education funding in accordance with Paragraphs
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0011| (1) or (2) and (3) of Subsection D of this section and Section
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0012| 22-8-21 NMSA 1978 plus an amount that would be produced by
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0013| applying a rate of eight dollars forty-two and one-half cents
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0014| ($8.425) to each one thousand dollars ($1,000) of net taxable
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0015| value of property as defined in the Property Tax Code for
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0016| property taxation purposes in the school district and to each
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0017| one thousand dollars ($1,000) of the assessed value of products
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0018| severed and sold in the school district as determined under the
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0019| Oil and Gas Ad Valorem Production Tax Act and upon the assessed
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0020| value of equipment in the school district as determined under
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0021| the Oil and Gas Production Equipment Ad Valorem Tax Act and
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0022| then reduced by the total amount of guaranteed energy savings
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0023| contract payments and guaranteed telecommunications savings
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0024| contract payments, if any, that the state superintendent
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0025| determines will be made to the school district from the public
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0001| school energy efficiency fund and the public school
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0002| telecommunications consolidation fund during the fiscal year
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0003| for which the state equalization guarantee distribution is
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0004| being computed, equals the fiscal year state equalization
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0005| guarantee distribution for the year for which the state
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0006| equalization guarantee distribution is being computed.
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0007| If at any time grants from the federal government as
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0008| assistance to those areas affected by federal activity
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0009| authorized in accordance with Sections 236 through 240 of Title
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0010| 20 of the United States Code (commonly known as "PL 874 funds")
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0011| are reduced or are no longer available, the state equalization
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0012| guarantee distribution shall be computed by the formula
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0013| contained in this subsection plus an increase by fifty percent
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0014| of the amount the prior year's PL 874 funds exceed PL 874 funds
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0015| for the year for which the state equalization guarantee
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0016| distribution is being computed."
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0017|
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0018|
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0019| FORTY-THIRD LEGISLATURE HB 840/a
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0020| FIRST SESSION, 1997
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0021|
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0022|
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0023| March 19, 1997
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0024|
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0025| Mr. President:
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0001|
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0002| Your FINANCE COMMITTEE, to whom has been referred
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0003|
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0004| HOUSE BILL 840, as amended
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0005|
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0006| has had it under consideration and reports same with
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0007| recommendation that it DO PASS, amended as follows:
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0008|
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0009| 1. Strike House Appropriations and Finance Committee
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0010| Amendment 1.
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0011|
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0012| 2. On page 1, lines 16 and 17, strike "Eight hundred ten
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0013| thousand dollars ($810,000) is appropriated from the general
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0014| fund" and insert in lieu thereof:
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0015|
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0016| "Five hundred seventy thousand dollars ($570,000) is appropriated
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0017| from the unexpended and unencumbered balances of the legislative
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0018| council service remaining from the appropriation for session
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0019| expenses authorized in Subsections B, D, F and H of Section 2 of
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0020| Chapter 1 of Laws 1995 and Subsections B, D, G and H of Section 2
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0021| of Chapter 1 of Laws 1996".
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0022|
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0023| 3. On page 1, line 19, after "system" strike the remainder
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0024| of the line, strike all of lines 20 and 21 and strike line 22
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0025| through the semicolon.
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0001|
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0002| 4. On page 1, line 23, strike "; and" and insert in lieu
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0003| thereof a comma.
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0004|
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0005| 5. On page 2, strike all of line 1, strike line 2 through
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0006| the period and insert in lieu thereof:
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0007|
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0008| ", other communications applications and limited upgrades and
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0009| replacements to internal systems for the legislative council
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0010| service, the legislative education study committee, the
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0011| legislative finance committee, the house of representatives and
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0012| the senate.".
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0013|
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0014|
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0015|
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0016|
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0017|
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0018|
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0019|
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0020|
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0021| Respectfully submitted,
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0022|
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0023|
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0024|
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0025|
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0001| __________________________________
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0002| Ben D. Altamirano, Chairman
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0003|
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0004|
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0005|
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0006| Adopted_______________________ Not
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0007| Adopted_______________________
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0008| (Chief Clerk) (Chief Clerk)
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0009|
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0010|
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0011| Date ________________________
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0012|
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0013|
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0014| The roll call vote was 6 For 0 Against
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0015| Yes: 6
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0016| No: None
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0017| Excused: Carraro, Eisenstadt, Ingle, Lyons, McKibben
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0018| Absent: None
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0019|
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0020|
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0021| S0840FC1 .119233.1
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0022|
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