NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

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(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

State Department of Education (SDE)

SUMMARY

Synopsis of SEC Amendment

The Senate Education Committee amended Senate Bill 280 on page 3, line 19, on insurance provision and on page 4, line 8 expands the public transportation emergency definition. The amendment does not change the original intent of the legislation.

Synopsis of Original Bill

Senate Bill 280 proposes to allow school buses to be used to transport the general public under certain conditions in accordance with the emergency transportation act.

Significant Issues

According to SDE, school buses are purchased from distributions to each school district from the Public School Fund. These funds are intended to cover costs exclusively for transporting children to and from school. School districts may be liable for losses incurred as a result of an accident, especially because the insurance coverage is specific to the vehicle.

FISCAL IMPLICATIONS

The SDE indicates that if insurance premiums are affected because of the additional exposure, there may be a fiscal impact to the general fund.

ADMINISTRATIVE IMPLICATIONS

School district personnel would be required to negotiate for transportation services with event organizers.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

The proposed bill would conflict with Sections 66-6-5 and 66-6-12 NMSA 1978, in that registration fees for school buses are determined based on exclusive use for transporting children.

RS/ar