46th legislature - STATE OF NEW MEXICO - first session, 2003

RELATING TO CHARTER SCHOOLS; AUTHORIZING SHORT-TERM SEVERANCE TAX BONDS TO ASSIST CHARTER SCHOOLS WITH LEASED FACILITIES; PROVIDING FOR AN ANNUAL DISTRIBUTION; MAKING AN APPROPRIATION.

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

Section 1. [NEW MATERIAL] SEVERANCE TAX BONDS AUTHORIZED--APPROPRIATION OF PROCEEDS TO CHARTER SCHOOL LEASED FACILITIES FUND.--

A. The state board of finance may issue and sell severance tax bonds with a term that does not extend beyond the fiscal year in which they are issued in fiscal years 2003 through 2007 in compliance with the Severance Tax Bonding Act in an amount not exceeding a total of fifteen million dollars ($15,000,000) when the state department of public education certifies the need for the issuance of the bonds; provided that no more than three million dollars ($3,000,000) may be issued in any one fiscal year.

B. The state board of finance shall schedule the issuance and sale of the bonds in the most expeditious and economical manner possible upon a finding by the board that the proceeds are needed by the state department of public education for distributions pursuant to the provisions of the 1999 Charter Schools Act. The board shall further take the appropriate steps necessary to comply with the Internal Revenue Code of 1986, as amended.

C. The proceeds from the sale of the bonds are appropriated to the charter school leased facilities fund.

D. Any unexpended or unencumbered balance remaining at the end of fiscal year 2012 shall revert to the severance tax bonding fund.

E. If the state department of public education has not certified the need for the issuance of the bonds by the end of fiscal year 2007, the authorization provided in this section shall expire.

Section 2. Section 22-8B-1 NMSA 1978 (being Laws 1999, Chapter 281, Section 1) is amended to read:

"22-8B-1. SHORT TITLE.--[Sections 1 through 15 of this act] Chapter 22, Article 8B NMSA 1978 may be cited as the "1999 Charter Schools Act"."

Section 3. A new section of the 1999 Charter Schools Act is enacted to read:

"[NEW MATERIAL] CHARTER SCHOOLS LEASED FACILITIES FUND--DISTRIBUTION.--

A. The "charter schools leased facilities fund" is created in the state treasury. The fund shall be administered by the department of education. The fund shall consist of the proceeds of severance tax bonds appropriated to the fund and other money appropriated and transferred to the fund. Earnings to the fund shall be credited to the fund, and the fund shall not revert until the end of fiscal year 2012 when any unexpended or unencumbered balance shall revert to the severance tax bonding fund. Expenditures from the fund shall be by warrant of the secretary of finance and administration upon vouchers signed by the state superintendent.

B. The department of education shall, by rule, establish an application process for charter schools that desire allocations from the fund. The process shall provide that applications for allocations shall be due no later than June 30 of each year and, except as provided in Subsection C of this section, shall include:

(1) a copy of a lease or other agreement showing that the charter school is leasing facilities;

(2) a certification from the school district showing the number of students enrolled in the charter school in the preceding school year; and

(3) any other information reasonably required by the department of education.

C. Pursuant to rule of the department of education, a start-up school may submit an application for an allocation from the fund. An application of a start-up school shall include:

(1) a copy of the lease or other agreement or, if no lease or agreement exists, evidence that the start-up school will be leasing facilities and an estimate of the lease costs;

(2) an estimate of the number of students that will be attending the start-up school; and

(3) an agreement to repay excess amounts received from the fund if the lease costs and number of students submitted pursuant to Subsections A and B of this section are overestimated.

D. Upon a determination that the information submitted by a charter school is complete and accurate, the department of education shall make an allocation to the charter school. The amount of the annual allocation shall equal the lesser of the amount of the annual lease payments or an amount equal to nine hundred dollars ($900) for each student who was enrolled in the school during the preceding school year, or, in the case of a start-up school, each student estimated to attend in the subsequent school year; provided, however, that if the total amount to be distributed pursuant to this section is greater than the unexpended or unencumbered balance in the fund, the amount allocated shall be reduced proportionately pursuant to rules adopted by the department of education.

E. Money received by a charter school pursuant to this section may only be used for construction, purchase or lease of charter school facilities."