45th legislature - STATE OF NEW MEXICO - first session, 2001

RELATING TO EDUCATION; PROVIDING FOR THE ESTABLISHMENT AND OPERATION OF CHARTER SCHOOLS; AMENDING, REPEALING AND ENACTING SECTIONS OF THE PUBLIC SCHOOL CODE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. A new section of the Public School Code is enacted to read:

"[NEW MATERIAL] SHORT TITLE.--Sections 1 through 14 of this act may be cited as the "2001 Charter Schools Act"."

Section 2. A new section of the Public School Code is enacted to read:

"[NEW MATERIAL] DEFINITIONS.--As used in the 2001 Charter Schools Act:

A. "charter school" means a conversion school or start-up school within a school district authorized to operate as a charter school;

B. "charter school board" means the state charter school board;

C. "chartering entity" means a local school board, the state board or the charter school board that reviews applications and grants or denies charter school status to qualifying applicants pursuant to the 2001 Charter Schools Act;

D. "conversion school" means an existing public school within a school district authorized by a chartering entity to operate as a charter school; and

E. "start-up school" means a public school developed by one or more parents, teachers or community members authorized by a chartering entity to become a charter school."

Section 3. A new section of the Public School Code is enacted to read:

"[NEW MATERIAL] PURPOSE.--The purpose of the 2001 Charter Schools Act is to improve pupil achievement and provide additional academic choices for parents and their children."

Section 4. A new section of the Public School Code is enacted to read:

"[NEW MATERIAL] STATE CHARTER SCHOOL BOARD--CREATED--MEMBERSHIP--DUTIES--TERMS--COMPENSATION.--

A. The "state charter school board" is created. The board shall be composed of six members as follows:

(1) the state superintendent or his designee;

(2) three members of the public appointed by the governor, at least one of whom shall reside in a neighborhood where a significant number of resident children meet eligibility requirements established for the federal school lunch and child nutrition programs for free lunches; and

(3) two members of the business community appointed by the governor.

B. Members of the charter school board shall serve three-year staggered terms. Terms shall be staggered by lot with three of the original appointees serving two-year terms. No member shall serve more than two consecutive terms.

C. In addition to the regular members of the charter school board, three members of the legislature shall be appointed jointly by the president pro tempore of the senate and the speaker of the house to serve as advisory members of the charter school board.

D. The members of the charter school board shall annually elect a president and such other officers deemed necessary by the members of the board.

E. Non-legislative members of the charter school board shall not receive compensation but shall receive per diem and mileage pursuant to the provisions of the Per Diem and Mileage Act.

F. Legislative members of the charter school board shall receive compensation pursuant to the provisions of Article 4, Section 10 of the constitution of New Mexico."

Section 5. A new section of the Public School Code is enacted to read:

"[NEW MATERIAL] CHARTER SCHOOL BOARD--POWERS AND DUTIES.--

A. The charter school board shall review applicants and grant charter school status to qualifying applicants pursuant to the 2001 Charter Schools Act.

B. The charter school board shall recommend legislation pertaining to charter schools to the governor and the legislature.

C. The charter school board may enter into contracts and may sue and be sued."

Section 6. A new section of the Public School Code is enacted to read:

"[NEW MATERIAL] CHARTER SCHOOLS--SPONSORSHIP--APPLICATION REQUIREMENTS--MAXIMUM NUMBER.--

A. An applicant seeking to establish a charter school shall submit a written application to a chartering entity.

B. The application shall include a mission statement for the charter school, a description of the charter school's proposed organizational structure and governing body, a financial plan for the first three years of operation of the charter school, a description of the charter school's facilities and location, a description of the grade levels to be served by the charter school, a description of the charter school's hiring policy, an outline of assessment criteria designed to measure the effectiveness of the school, the name of the proposed charter school's applicant and the name of the requested chartering entity.

C. An application for a start-up school may be made by one or more parents, teachers or community members.

D. An application for a conversion school shall include a petition of support signed by not less than sixty-five percent of the employees in the school. Additionally, a petition in support of the charter school signed by a majority of the households whose children are enrolled in a proposed conversion school shall accompany the application.

E. Within ninety days of receipt of an application for charter school status submitted to a chartering entity that is a local school board, the local school board shall either accept the application and grant charter school status to the applicant or reject the application and notify the applicant in writing stating the reasons for the rejection. Applicants may submit revised applications for reconsideration by the local school board.

F. Within ninety days of receipt of an application for charter school status submitted to a chartering entity that is either the state board or the charter school board, the state board or the charter school board shall either accept the application and grant charter status to the applicant or reject the application and notify the applicant in writing stating the reasons for the rejection and suggestions for improving the application. Applicants may submit revised applications for reconsideration by the state board or the charter school board. The state board or the charter school board shall approve an application for charter school status if the application meets the requirements of the 2001 Charter Schools Act and if the state board or the charter school board determines that the applicant is sufficiently qualified to operate a charter school.

G. A chartering entity that is either the state board or the charter school board may each grant charter school status to no more than twenty-five charter schools each fiscal year.

H. A chartering entity may contract with a public body, private person or private organization for the purpose of establishing a charter school.

I. A charter school shall be a public school accredited by the state board and shall be accountable to the chartering entity for purposes of ensuring compliance with applicable laws, rules and charter provisions."

Section 7. A new section of the Public School Code is enacted to read:

"[NEW MATERIAL] CHARTER SCHOOL OPERATION--CHARTER REQUIREMENTS--EXEMPTIONS FROM PUBLIC SCHOOL CODE.--

A. Each charter school shall develop a charter that:

(1) ensures compliance with all federal, state and local health and safety laws;

(2) ensures nonsectarian admission, operation and employment practices;

(3) ensures a comprehensive program of instruction;

(4) ensures the adoption of accepted methods for measuring pupil progress and student outcomes; and

(5) provides a description of the school's personnel policies, personnel qualifications, method of governance and the role and duties of the school's sponsor.

B. A school charter may be amended at the request of the charter school and with the approval of the chartering entity.

C. Charter schools shall be exempt from all provisions of the Public School Code pertaining to class size, staffing patterns, length of school day, subject areas, graduation requirements and essential competencies.

D. A chartering entity that is a local school board may waive only locally imposed school district requirements."

Section 8. A new section of the Public School Code is enacted to read:

"[NEW MATERIAL] CHARTER SCHOOLS' ENROLLMENT--DISENROLLMENT--PROCEDURES.--

A. A charter school shall give enrollment preference to students who are enrolled in the public school at the time it is converted into a charter school and to siblings of students admitted to or attending the charter school. The charter school may either enroll all other students on a first-come, first-served basis or through a lottery selection process if the total number of applicants exceeds the number of spaces available at the charter school.

B. In subsequent years of its operation, a charter school shall give enrollment preference to:

(1) students who have been admitted to the charter school through an appropriate admission process and remain in attendance through subsequent grades; and

(2) siblings of students already admitted to or attending the same charter school.

C. No local school board shall require a student residing within the geographic boundary of its district to enroll in a charter school.

D. A student who is suspended or expelled from a charter school shall be deemed to be suspended or expelled from the school district in which the student resides."

Section 9. A new section of the Public School Code is enacted to read:

"[NEW MATERIAL] CHARTER SCHOOLS--CHARTERING ENTITIES--RIGHTS AND RESPONSIBILITIES.--

A. A charter school may enter into contracts and may sue and be sued.

B. A charter school sponsored by the state board or the charter school board shall not be located on school property unless authorized to do so by the local school board.

C. A charter school does not have the authority to acquire property by eminent domain.

D. A charter school shall be subject to all federal and state laws and constitutional provisions prohibiting discrimination on the basis of disability, race, creed, color, gender, national origin, religion, ancestry or need for special education services.

E. A charter school shall be responsible for its own operation, including preparation of a budget, contracting for services and personnel matters.

F. In no event shall a charter school be required to pay rent for space that is deemed available, as negotiated by contract, in school district facilities; provided that the facilities can be made available at no cost to the district. All costs for the operation and maintenance of the facilities used by the charter school shall be subject to negotiation between the charter school and the district.

G. A charter school may negotiate with a local school district to provide transportation to students eligible for transportation under the provisions of the Public School Code.

H. A charter school may negotiate with a local school district for capital expenditures.

I. Except as otherwise provided in the Public School Code, a charter school shall not charge tuition or have admission requirements.

J. A charter school shall be subject to the provisions of Sections 22-1-6 and 22-2-8 NMSA 1978.

K. A charter school may acquire, pledge and dispose of property; provided that upon termination of the charter, all assets of the charter school shall revert to the chartering entity that authorized the charter.

L. A charter school may accept or reject any charitable gift, grant, devise or bequest; provided that no such gift, grant, devise or bequest shall be accepted if subject to any condition contrary to law or to the terms of the charter. The particular gift, grant, devise or bequest shall be considered an asset of the charter school to which it is given.

M. A charter school may negotiate or contract with a local school district, a university or college or any third party for the use of a facility, its operation and maintenance, and the provision of any service or activity that the charter school is required to perform in order to carry out the educational program described in its charter.

N. A chartering entity that is a local school board is not liable for the acts or omissions of the charter school with regard to the application for charter status, the operation of the charter school or the performance of its educational program.

O. The state of New Mexico or a chartering entity shall not be liable for the debts or financial obligations of any charter school.

P. The chartering entity of a charter school shall have the oversight and administrative responsibilities for the charter school upon which it grants charter school status.

Q. Except as otherwise provided by law, a chartering entity shall have neither legal authority nor responsibility for a charter school that was granted charter school status by another chartering entity."

Section 10. A new section of the Public School Code is enacted to read:

"[NEW MATERIAL] CHARTER SCHOOLS--TERM--RENEWAL OF CHARTER--REVIEW PERIOD.--

A. An approved application granting charter school status to a charter school may remain in effect for fifteen years from the first day of operation. At the conclusion of the first fourteen years, the charter school may apply to its chartering entity for renewal of its charter school status. The chartering entity may deny the request for renewal if, in its judgment, the charter school has failed to achieve the goals of the charter school set forth in its charter or has failed to comply with the provisions of the 2001 Charter Schools Act. A chartering entity shall give written notice of its intent not to renew the charter school status of a charter school at least one year prior to the expiration of the school's charter. A charter school may apply to a different chartering entity for a grant of charter school status. If a different chartering entity agrees to grant charter school status to the charter school, the approved application shall remain in effect for fifteen years following the renewal of charter school status by a different chartering entity. Chartering entities may renew charters for periods up to fifteen years.

B. Every five years, a chartering entity shall conduct an extensive review of the operation of all charter schools upon which it has granted charter school status. If in conducting the review, the chartering entity determines that the charter school fails to meet standards established by the chartering entity, the chartering entity shall inform the charter school in writing. A charter school shall have ninety days in which to bring the school into compliance. If after ninety days a charter school fails to comply with the standards established by a chartering entity, the chartering entity may revoke the charter at a public hearing."

Section 11. A new section of the Public School Code is enacted to read:

"[NEW MATERIAL] CHARTER SCHOOLS--EMPLOYEE OPTIONS--HIRING AND FIRING.--

A. A charter school shall hire its own employees. The provisions of the School Personnel Act shall apply to such employees.

B. An employee of a charter school who was previously an employee of a school district in which the charter school is located shall be considered to be on a one-year leave of absence from the school district. The leave of absence shall commence on the initial date of employment for the charter school. Upon request of the employee, the one-year leave of absence shall be renewed for up to two additional one-year periods, absent good cause.

C. The time during which an employee is on a leave of absence shall be counted for longevity credit on the school district's salary schedule.

D. During the period of time that an employee is on a leave of absence from the school district and is actively employed by the charter school, the charter school shall continue the retirement or other benefits previously granted to the employee.

E. A leave of absence shall not be considered a break in service with the school district with which an employee was previously employed.

F. An employee who is on a leave of absence and actively teaching or employed at a charter school and who submits a notice of intent to return to the school district where the employee was employed immediately prior to employment in the charter school shall be given employment preference by the school district if the:

(1) employee's notice of intent to return is submitted to the school district within three years after ceasing employment with the school district; and

(2) employee is a teacher, a position for which the teacher is certified or is qualified to become certified is available. If the employee is not a teacher, a position for which the employee is qualified is available.

G. An employee who is on leave of absence and employed by a charter school and is discharged or terminated for just cause by the charter school shall be considered discharged or terminated by the school district.

H. No local school board shall require an employee of the school district to be employed in a charter school."

Section 12. A new section of the Public School Code is enacted to read:

"[NEW MATERIAL] CHARTER SCHOOLS--VACANT BUILDINGS LIST.--The department of education, in conjunction with the general services department, shall annually publish a list of vacant and unused buildings and vacant and unused portions of buildings owned by the state or any local school district in the state that may be suitable for the operation of a charter school. The department of education shall make the list available to applicants for charter school status and to existing charter schools."

Section 13. A new section of the Public School Code is enacted to read:

"[NEW MATERIAL] CHARTER SCHOOL FINANCING.--

A. A charter school shall receive not less than ninety-eight percent of the school-generated program cost.

B. The share of money from state or federal programs shall be directed to charter schools serving students eligible for such aid. Any program not offered by the charter school shall not be entitled to the share of money generated by that program.

C. All services centrally or otherwise provided by the local school district, including custodial, maintenance, media services, libraries and warehousing, shall be subject to negotiation between the charter school and the local school district. Any services for which a charter school contracts with a school district shall be provided by the district at a reasonable cost."

Section 14. A new section of the Public School Code is enacted to read:

"[NEW MATERIAL] CHARTER SCHOOLS FUND CREATED.--

A. The "charter schools fund" is created in the state treasury. Money in the fund is appropriated to the department of education to provide financial support to charter schools for initial start-up costs and initial costs associated with renovating or remodeling existing buildings and structures. The fund shall consist of money appropriated by the legislature and grants, gifts, devises and donations from any public or private source. Money in the fund shall not revert at the end of a fiscal year. The department of education shall administer the fund in accordance with rules adopted by the state board.

B. If the charter school receives an initial grant and fails to begin operating a charter school within the next eighteen months, the charter school shall immediately reimburse the fund."

Section 15. A new section of the Public School Code is enacted to read:

"[NEW MATERIAL] 1999 CHARTER SCHOOLS ACT CHARTERS.--

A. A charter school that received approval of charter school status pursuant to the 1999 Charter Schools Act may continue to operate pursuant to its approved charter until the term of the charter expires or, upon request, shall receive a charter pursuant to the 2001 Charter Schools Act for the unexpired term.

B. A charter school that continues to operate in accordance with a charter received pursuant to the 1999 Charter Schools Act shall retain all property and contractual rights received pursuant to the granting of the charter until such time as the charter school elects to receive a charter pursuant to the 2001 Charter Schools Act or its charter expires or is revoked pursuant to its terms.

C. Upon the expiration of a charter received by a school that continues to operate in accordance with a charter received pursuant to the 1999 Charter Schools Act, if the charter school chooses to continue its operation as a charter school, the charter school shall apply for a new charter pursuant to the 2001 Charter Schools Act."

Section 16. Section 22-2-6.3 NMSA 1978 (being Laws 1986, Chapter 94, Section 3, as amended) is amended to read:

"22-2-6.3. DEFINITIONS.--As used in the Public School Insurance Authority Act:

A. "authority" means the public school insurance authority;

B. "board" means the board of directors of the public school insurance authority;

C. "charter school" means a school organized as a charter school pursuant to the provisions of the [1999] 2001 Charter Schools Act;

D. "director" means the director of the public school insurance authority;

E. "educational entities" means state educational institutions as enumerated in Article 12, Section 11 of the constitution of New Mexico and other state diploma, degree-granting and certificate-granting post-secondary educational institutions;

F. "fund" means the public school insurance fund;

G. "group health insurance" means coverage [which] that includes [but is not limited to] life insurance, accidental death and dismemberment, medical care and treatment, dental care, eye care and other coverages as determined by the authority;

H. "risk-related coverage" means coverage [which] that includes [but is not limited to] property and casualty, general liability, auto and fleet, workers' compensation and other casualty insurance; and

I. "school district" means a school district as defined in Subsection K of Section 22-1-2 NMSA 1978, excluding any school district with a student enrollment in excess of sixty thousand students."

Section 17. Section 22-8-6 NMSA 1978 (being Laws 1967, Chapter 16, Section 60, as amended by Laws 1999, Chapter 281, Section 21 and also by Laws 1999, Chapter 291, Section 2) is amended to read:

"22-8-6. BUDGETS--SUBMISSION--FAILURE TO SUBMIT.--

A. Prior to April 15 of each year, each local school board shall submit to the department an [operating] estimated budget for the school district and any charter schools in the district for the ensuing fiscal year. Upon written approval of the state superintendent, the date for the submission of the [operating] estimated budget as required by this section may be extended to a later date fixed by the state superintendent.

B. The [operating] estimated budget required by this section may include:

(1) estimates of the cost of insurance policies for periods up to five years if a lower rate may be obtained by purchasing insurance for the longer term; or

(2) estimates of the cost of contracts for the transportation of students for terms extending up to four years.

[C. The operating budget required by this section shall include a proposed breakdown for charter schools in the school district, by individual charter school, of the membership projected for each charter school, the total program units generated at that charter school and approximate anticipated disbursements and expenditures at each charter school.]

C. The estimated budget required by this section shall include a budget for each charter school of the membership projected for each charter school, the total program units generated at that charter school and approximate anticipated disbursements and expenditures at each charter school.

D. If a local school board fails to submit a budget pursuant to this section, the department shall prepare the operating budget for the school district for the ensuing fiscal year. A local school board shall be considered as failing to submit a budget pursuant to this section if the budget submitted exceeds the total projected resources of the school district or if the budget submitted does not comply with the law or with rules and procedures of the department."

Section 18. Section 22-8-6.1 NMSA 1978 (being Laws 1993, Chapter 227, Section 8, as amended) is amended to read:

"22-8-6.1. CERTAIN SCHOOL DISTRICT BUDGETS.--

A. Each charter school shall submit to [the local school board] its chartering entity a school-based budget. The budget shall be based upon the projected number of program units generated by that charter school and its students, using the at-risk index and the instructional staff training and experience index of the district. The budget shall be submitted to the [local school board] chartering entity for approval or amendment. The approval or amendment authority of the [local school board] chartering entity relative to the charter school budget is limited to ensuring that sound fiscal practices are followed in the development of the budget and that the charter school budget is within the allotted resources. The [local school board] chartering entity shall have no veto authority over individual line items within the charter school's proposed budget, but shall approve or disapprove the budget in its entirety. Upon final approval of the [local] budget by the [local school board] chartering entity, the individual charter school budget shall be included separately in the budget submission to the department of education required pursuant to the Public School Finance Act and the [1999] 2001 Charter Schools Act.

B. For the purposes of this section, "chartering entity" means a local school board, the state board or the state charter school board that reviews applications and grants or denies charter school status to qualifying applicants pursuant to the 2001 Charter Schools Act."

Section 19. Section 22-8-23.2 NMSA 1978 (being Laws 1993, Chapter 237, Section 2) is amended to read:

"22-8-23.2. NEW DISTRICT ADJUSTMENT--ADDITIONAL PROGRAM UNITS.--

A. A newly created school district is eligible for additional program units. The number of additional program units to which a newly created school district is entitled under this subsection is the number of units computed in the following manner:

(MEM for current year) x .147 = Units

where MEM is equal to the total district membership, including early childhood education full-time equivalent membership and special education membership.

B. A school district whose membership decreases as a result of the establishment of a newly created school district or a charter school within the district is eligible for additional program units. The number of additional program units to which that district is entitled under this subsection is the number of units computed in the following manner:

(MEM for prior year - MEM for current year)

x .17 = Units

where MEM is equal to the total district membership, including early childhood education full-time equivalent membership and special education membership.

C. As used in this section, "newly created school district" or "charter school" means a local school district or charter school not in existence during the immediately preceding school year."

Section 20. Section 22-11-2 NMSA 1978 (being Laws 1967, Chapter 16, Section 126, as amended) is amended to read:

"22-11-2. DEFINITIONS.--As used in the Educational Retirement Act:

A. "member" means [any] an employee, except for a participant coming within the provisions of the Educational Retirement Act;

B. "regular member" means:

(1) a person regularly employed as a teaching, nursing or administrative employee of a state educational institution, except for:

(a) a participant; or

(b) all employees of a general hospital or outpatient clinics [thereof] operated by a state educational institution named in Article 12, Section 11 of the constitution of New Mexico;

(2) a person regularly employed as a teaching, nursing or administrative employee of a junior college or community college created pursuant to Chapter 21, Article 13 NMSA 1978, except for a participant;

(3) a person regularly employed as a teaching, nursing or administrative employee of a technical and vocational institute created pursuant to the Technical and Vocational Institute Act, except for a participant;

(4) a person regularly employed as a teaching, nursing or administrative employee of the New Mexico boys' school, the New Mexico girls' school, the Los Lunas medical center or a school district or as a certified school instructor of a state institution or agency providing an educational program and holding a standard or substandard certificate issued by the state board, except for a participant;

(5) a person regularly employed by the department of education or the board holding a standard or substandard certificate issued by the state board at the time of commencement of such employment;

(6) a member classified as a regular member in accordance with the [regulations] rules of the board;

(7) a person regularly employed by the New Mexico activities association holding a standard certificate issued by the state board at the time of commencement of such employment; [or]

(8) a person regularly employed by a regional education cooperative holding a standard certificate issued by the state board at the time of commencement of such employment; or

(9) a person regularly employed by a charter school holding a standard certificate issued by the state board at the time of commencement of such employment;

C. "provisional member" means a person not eligible to be a regular member but who is employed by a local administrative unit designated in Subsection B of this section; provided, however, that employees of a general hospital or outpatient clinics [thereof] operated by a state educational institution named in Article 12, Section 11 of the constitution of New Mexico are not provisional members;

D. "local administrative unit" means an employing agency however constituted that is directly responsible for the payment of compensation for the employment of members or participants;

E. "beneficiary" means a person having an insurable interest in the life of a member or a participant designated by written instrument duly executed by the member or participant and filed with the director to receive a benefit pursuant to the Educational Retirement Act that may be received by someone other than the member or participant;

F. "employment" means employment by a local administrative unit that qualifies a person to be a member or participant;

G. "service employment" means employment that qualifies a person to be a regular member;

H. "provisional service employment" means employment that qualifies a person to be a provisional member;

I. "prior employment" means employment performed prior to the effective date of the Educational Retirement Act that would be service employment or provisional service employment if performed thereafter;

J. "service credit" means that period of time with which a member is accredited for the purpose of determining his eligibility for and computation of retirement or disability benefits;

K. "earned service credit" means that period of time during which a member was engaged in employment or prior employment with which he is accredited for the purpose of determining his eligibility for retirement or disability benefits;

L. "allowed service credit" means that period of time during which a member has performed certain nonservice employment with which he may be accredited, as provided in the Educational Retirement Act, for the purpose of computing retirement or disability benefits;

M. "retirement benefit" means an annuity paid monthly to members whose employment has been terminated by reason of their age;

N. "disability benefit" means an annuity paid monthly to members whose employment has been terminated by reason of a disability;

O. "board" means the educational retirement board;

P. "fund" means the educational retirement fund;

Q. "director" means the educational retirement director;

R. "medical authority" means a medical doctor within the state or as provided in Subsection D of Section 22-11-36 NMSA 1978 either designated or employed by the board to examine and report on the physical condition of applicants for or recipients of disability benefits;

S. "actuary" means a person trained and regularly engaged in the occupation of calculating present and projected monetary assets and liabilities under annuity or insurance programs;

T. "actuarial equivalent" means a sum paid as a current or deferred benefit that is equal in value to a regular benefit, computed upon the basis of interest rates and mortality tables;

U. "contributory employment" means employment for which contributions have been made by both a member and a local administrative unit pursuant to the Educational Retirement Act;

V. "qualifying state educational institution" means the university of New Mexico, New Mexico state university, New Mexico institute of mining and technology, New Mexico highlands university, eastern New Mexico university, western New Mexico university, Albuquerque technical-vocational institute, Clovis community college, Luna vocational-technical institute, Mesa technical college, New Mexico junior college, northern New Mexico state school, San Juan college and Santa Fe community college;

W. "participant" means:

(1) a person regularly employed as a faculty or professional employee of the university of New Mexico, New Mexico state university, New Mexico institute of mining and technology, New Mexico highlands university, eastern New Mexico university or western New Mexico university who first becomes employed with such an educational institution on or after July 1, 1991, or a person regularly employed as a faculty or professional employee of the Albuquerque technical-vocational institute, Clovis community college, Luna vocational-technical institute, Mesa technical college, New Mexico junior college, northern New Mexico state school, San Juan college or Santa Fe community college who is first employed by the institution on or after July 1, 1999 and who elects, pursuant to Section 22-11-47 NMSA 1978, to participate in the alternative retirement plan; and

(2) a person regularly employed who performs research or other services pursuant to a contract between a qualifying state educational institution and the United States government or any of its agencies who elects, pursuant to Section 22-11-47 NMSA 1978, to participate in the alternative retirement plan, provided that the research or other services are performed outside the state;

X. "salary" means the compensation or wages paid to a member or participant by any local administrative unit for services rendered; and

Y. "alternative retirement plan" means the retirement plan provided for in Sections 22-11-47 through 22-11-52 NMSA 1978."

Section 21. REPEAL.--

A. Sections 22-8B-1 through 22-8B-15 NMSA 1978 (being Laws 1999, Chapter 281, Sections 1 through 4, Laws 2000, Chapter 82, Section 3 and Laws 1999, Chapter 281, Sections 5 through 15, as amended) are repealed.

B. Sections 22-8C-1 through 22-8C-7 NMSA 1978 (being Laws 1999, Chapter 293, Sections 1 through 7) are repealed.