SENATE BILL 208

50th legislature - STATE OF NEW MEXICO - second session, 2012

INTRODUCED BY

George K. Munoz

AN ACT

RELATING TO PUBLIC FINANCES; REQUIRING COLLEGE DISTRICTS AND SCHOOL DISTRICTS TO CREATE CITIZENS' BOND OVERSIGHT COMMITTEES WHEN THEY HAVE OUTSTANDING BONDS; PROVIDING POWERS AND DUTIES.

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

     SECTION 1. Section 21-2A-1 NMSA 1978 (being Laws 1995, Chapter 224, Section 7) is amended to read:

     "21-2A-1. SHORT TITLE.--[Sections 7 through 16 of this act] Sections 21-2A-1 through 21-2A-10 NMSA 1978 may be cited as the "College District Tax Act"."

     SECTION 2. A new section of the College District Tax Act is enacted to read:

     "[NEW MATERIAL] CITIZENS' BOND OVERSIGHT COMMITTEES--MEMBERSHIP--POWERS AND DUTIES.--

          A. Any college district that has bonded indebtedness or that is considering the issuance of general obligation or revenue bonds for the construction, reconstruction, rehabilitation or replacement of college facilities or acquisition or lease of real or personal property for college facilities shall have a "citizens' bond oversight committee" to oversee the appropriate use of bond proceeds.

          B. The board shall appoint a citizens' bond oversight committee that consists of at least seven members to serve for a term of two years and for no more than two consecutive terms. Members of the oversight committee shall not be compensated and shall not receive per diem and mileage. Membership on the oversight committee shall include:

                (1) at least one member who represents the business community within the college district;

                (2) at least one member who represents a senior citizens' organization in the college district;

                (3) one member who represents the student body of the college and who is active in student body government and who may, at the discretion of the board, serve up to six months after the student's graduation; and

                (4) one member of the college's advisory council or foundation, if applicable, or otherwise involved in the support and organization of the college.

          C. No employee or official of the college district shall be appointed to the citizens' bond oversight committee.

          D. The citizens' bond oversight committee shall keep the public informed concerning the expenditure of bond proceeds and shall actively review and report on the expenditure of taxpayers' money for college capital improvements. In furtherance of that purpose, the oversight committee shall:

                (1) review and comment on the college's campus master plan, including any deferred maintenance plans, and the purposes for which bonds are being issued;

                (2) ensure that bond proceeds are expended only for the purposes for which the bonds were issued;

                (3) ensure that no bond proceeds are used for faculty or administrative salaries or other college operating expenses;

                (4) receive and review copies of any independent financial or performance audits pertaining to bond proceeds;

                (5) inspect college facilities and grounds to ensure that bond proceeds are expended in compliance with state and federal laws, the campus master plan and the purposes for which bonds were issued; and

                (6) review and make recommendations on efforts by the college to maximize bond proceeds by implementing cost-saving measures, including:

                     (a) mechanisms designed to reduce the cost of professional fees;

                     (b) mechanisms designed to reduce the cost of site preparation;

                     (c) recommendations regarding the joint use of facilities, as appropriate; and

                     (d) mechanisms designed to reduce costs by incorporating energy and other efficiencies in building and site design.

          E. The board, without expending bond proceeds, shall provide the citizens' bond oversight committee with necessary technical and administrative assistance and shall publicize the oversight committee's conclusions.

          F. All meetings of the citizens' bond oversight committee are subject to the provisions of the Open Meetings Act.

          G. The citizens' bond oversight committee shall issue an annual report of its activities, findings and recommendations. The report shall be made available to the public on the college's internet web site.

          H. Nothing in this section shall be construed as allowing an off-campus program to purchase or own real property in violation of Section 21-14A-5.2 NMSA 1978."

     SECTION 3. A new section of the Public School Finance Act is enacted to read:

     "[NEW MATERIAL] CITIZENS' BOND OVERSIGHT COMMITTEES--MEMBERSHIP--POWERS AND DUTIES.--

          A. Any school district that has bonded indebtedness or that is considering the issuance of general obligation or other bonds for the construction, reconstruction, rehabilitation or replacement of school district facilities or acquisition or lease of real or personal property for school district facilities shall have a "citizens' bond oversight committee" to oversee the appropriate use of bond proceeds. The citizens' bond oversight committee shall also oversee the use of bond proceeds from the school district for the construction, reconstruction, rehabilitation or replacement of charter school facilities in the school district or acquisition or lease of real or personal property for charter school facilities.

          B. The local school board shall appoint a citizens' bond oversight committee that consists of at least seven members to serve for a term of two years and for no more than two consecutive terms. Members of the oversight committee shall not be compensated and shall not receive per diem and mileage. Membership on the oversight committee shall include:

                (1) at least one member who represents the business community within the school district;

                (2) at least one member who represents a senior citizens' organization in the school district;

                (3) one member who is a parent or guardian of a student enrolled in the school district and who is active in a parent-teacher organization or a school site council; and

                (4) if the oversight committee will oversee bond proceeds for capital improvements at one or more charter schools, one member who is the parent or guardian of a student enrolled in a charter school and who is active in a parent-teacher organization or school site council.

          C. No employee or official of the school district or a charter school shall be appointed to the citizens' bond oversight committee.

          D. The citizens' bond oversight committee shall keep the public informed concerning the expenditure of bond proceeds and shall actively review and report on the expenditure of taxpayers' money for school capital improvements. In furtherance of that purpose, the oversight committee shall:

                (1) review and comment on the school district's or charter school's master plan, including any deferred maintenance plans, and the purposes for which bonds are being issued;

                (2) ensure that bond proceeds are expended only for the purposes for which the bonds were issued;

                (3) ensure that no bond proceeds are used for faculty or administrative salaries or other school district or charter school operating expenses;

                (4) receive and review copies of any independent financial or performance audits pertaining to bond proceeds;

                (5) inspect school district and charter school facilities and grounds to ensure that bond revenues are expended in compliance with state and federal laws, the school district or charter school master plan and the purposes for which bonds were issued; and

                (6) review and make recommendations on efforts by the school district or charter school to maximize bond proceeds by implementing cost-saving measures, including:

                     (a) mechanisms designed to reduce the cost of professional fees;

                     (b) mechanisms designed to reduce the cost of site preparation;

                     (c) recommendations regarding the joint use of facilities, as appropriate; and

                     (d) mechanisms designed to reduce costs by incorporating energy and other efficiencies in school and site design.

          E. The school district, without expending bond proceeds, shall provide the citizens' bond oversight committee with necessary technical and administrative assistance and shall publicize the oversight committee's conclusions.

          F. All meetings of the citizens' bond oversight committee are subject to the provisions of the Open Meetings Act.

          G. The citizens' bond oversight committee shall issue an annual report of its activities, findings and recommendations. The report shall be made available to the public on the school district's internet web site."

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