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AN ACT

RELATING TO PUBLIC SCHOOLS; PROVIDING PROCEDURES FOR MEETING

THE NEEDS OF STATE-CHARTERED AND LOCALLY CHARTERED CHARTER

SCHOOLS FOR ADEQUATE FACILITIES; CREATING A FUND.

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

Section 1. A new section of the Public School Capital

Outlay Act, Section 22-24-6.1 NMSA 1978, is enacted to read:

"22-24-6.1. PROCEDURES FOR A STATE-CHARTERED CHARTER

SCHOOL.--All of the provisions of the Public School Capital

Outlay Act apply to an application by a state-chartered

charter school for grant assistance for a capital project

except:

A. the portion of the cost of the project to be

paid from the fund shall be calculated pursuant to Paragraph

(5) of Subsection B of Section 22-24-5 NMSA 1978 using data

from the school district in which the state-chartered charter

school is located;

B. in calculating a reduction pursuant to

Paragraph (6) of Subsection B of Section 22-24-5 NMSA 1978,

the amount to be used in Subparagraph (a) of that paragraph

shall equal the total of all legislative appropriations made

after January 1, 2007 for nonoperating expenses either

directly to the charter school or to another governmental

entity for the purpose of passing the money through directly

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to the charter school, regardless of whether the charter

school was a state-chartered charter school at the time of

the appropriation or later opted to become a state-chartered

charter school, except that the total shall not include any

such appropriation if, before the charter school became a

state-chartered charter school, the appropriation was

previously used to calculate a reduction pursuant to

Paragraph (6) of Subsection B of Section 22-24-5 NMSA 1978;

and

C. if the council determines that the

state-chartered charter school does not have the resources to

pay all or a portion of the total cost of the capital outlay

project that is not funded with grant assistance from the

fund, to the extent that money is available in the charter

school capital outlay fund, the council shall make an award

from that fund for the remaining amount necessary to pay for

the project. The council may establish, by rule, a procedure

for determining the amount of resources available to the

charter school and the amount needed from the charter school

capital outlay fund."

Section 2. A new section of the Public School Capital

Outlay Act, Section 22-24-6.2 NMSA 1978, is enacted to read:

"22-24-6.2. PUBLIC FACILITIES FOR CHARTER SCHOOLS.--

A. The council shall develop a program for

assisting charter schools to be located in public buildings

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or in buildings being acquired by charter schools pursuant to

a lease purchase agreement.

B. A locally chartered or state-chartered charter

school, desiring assistance pursuant to this section, shall

make application to the council for a grant. The application

shall include:

(1) a summary of the efforts that have been

made by the charter school to be located in a public

facility;

(2) an estimate of the costs necessary to

bring the public facilities up to the statewide adequacy

standards; and

(3) such other information as required by

rule of the council.

C. The public school facilities authority shall

review the information submitted by the charter school and

rank the application with similar applications pursuant to a

methodology adopted by the council.

D. After a public hearing and to the extent that

money is available in the charter school capital outlay fund

for such purposes, the council shall approve grants from the

fund on the established priority basis.

E. An award made pursuant to this section shall

not be considered when calculating an amount to offset grants

to a school district or state-chartered charter school

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pursuant to Paragraph (6) of Subsection B of Section 22-24-5

NMSA 1978 or Subsection B of Section 22-24-6.1 NMSA 1978."

Section 3. A new section of the Public School Capital

Outlay Act is enacted to read:

"CHARTER SCHOOL CAPITAL OUTLAY FUND.--

A. The "charter school capital outlay fund" is

created in the state treasury. The fund shall consist of

appropriations, gifts, grants, donations and bequests made to

the fund. Income from the fund shall be credited to the

fund, and money in the fund shall not revert or be

transferred to any other fund at the end of a fiscal year.

Money in the fund is appropriated to the council for the

purposes of making grants pursuant to Subsection B of this

section. Expenditures from the fund shall be made on warrant

of the secretary of finance and administration pursuant to

vouchers signed by the director of the public school

facilities authority.

B. Balances in the charter school capital outlay

fund shall be used for the following purposes and, to the

extent money is available in the fund, in the following

order:

(1) for making grants to state-chartered

charter schools pursuant to Subsection C of Section 22-24-6.1

NMSA 1978 to assist with the local match needed for an

approved public school capital outlay project; and

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(2) if the council determines that money in

the fund is not needed for grants pursuant to Paragraph (1)

of this subsection, remaining balances in the fund may be

used for providing assistance to charter schools pursuant to

Section 22-24-6.2 NMSA 1978."

Section 4. DELAYED REPEAL--REVERSION OF FUND

BALANCES.--

A. On July 1, 2012, Section 22-24-6.2 NMSA 1978,

as enacted by Section 2 of this act, and Section 3 of this

act are repealed.

B. Upon the repeal of Section 3 of this act, the

proportion of the unencumbered balance of the charter school

capital outlay fund that is attributable to proceeds of

severance tax bonds shall revert to the severance tax bonding

fund and the remaining unencumbered balance shall revert to

the general fund.