0001| HOUSE BILL 8 | 0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0003| INTRODUCED BY | 0004| SAMUEL F. VIGIL | 0005| | 0006| | 0007| | 0008| FOR THE LEGISLATIVE EDUCATION STUDY COMMITTEE | 0009| | 0010| AN ACT | 0011| RELATING TO PUBLIC SCHOOLS; CHANGING THE DISPOSITION OF STATE | 0012| LOTTERY REVENUES TO EARMARK SIXTY PERCENT OF NET REVENUES FOR | 0013| DISTRIBUTION TO PUBLIC SCHOOLS FOR CAPITAL OUTLAY EXPENDITURES | 0014| PURSUANT TO THE PUBLIC SCHOOL CAPITAL IMPROVEMENTS ACT AND FOR | 0015| EDUCATIONAL TECHNOLOGY PURSUANT TO THE TECHNOLOGY FOR EDUCATION | 0016| ACT; MAKING AN APPROPRIATION. | 0017| | 0018| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0019| Section 1. A new section of the New Mexico Lottery Act is | 0020| enacted to read: | 0021| "[NEW MATERIAL] LOTTERY PUBLIC SCHOOL CAPITAL FUND | 0022| CREATED--PURPOSES.-- | 0023| A. The "lottery public school capital fund" is | 0024| created in the state treasury. The fund shall be administered | 0025| by the state department of public education. Earnings from | 0001| investment of the fund shall accrue to the credit of the fund. | 0002| Any balance in the fund at the end of any fiscal year shall | 0003| remain in the fund for use solely for the purposes of the fund. | 0004| B. Money in the lottery public school capital fund | 0005| shall be used only to carry out the provisions of the Public | 0006| School Capital Improvements Act and the Technology for | 0007| Education Act and is appropriated for those purposes. Annually | 0008| the state department of public education shall determine the | 0009| amount needed for distribution to school districts pursuant to | 0010| the Public School Capital Improvements Act and shall determine | 0011| the balance in the lottery public school capital fund on August | 0012| 1. Upon the determination of the amount to be distributed and | 0013| the fund balance as of August 1, the department shall transfer | 0014| that amount from that balance to the public school capital | 0015| improvements fund for distribution to school districts pursuant | 0016| to the Public School Capital Improvements Act. Any portion of | 0017| the August 1 balance remaining in the lottery public school | 0018| capital fund after the annual distribution to the public school | 0019| capital improvements fund shall be transferred to the | 0020| educational technology fund for expenditure in accordance with | 0021| the provisions of the Technology for Education Act." | 0022| Section 2. Section 6-24-24 NMSA 1978 (being Laws 1995, | 0023| Chapter 155, Section 24) is amended to read: | 0024| "6-24-24. DISPOSITION OF REVENUE.-- | 0025| A. As nearly as practical, an amount equal to at | 0001| least fifty percent of the gross annual revenues from the sale | 0002| of lottery tickets shall be returned to the public in the form | 0003| of lottery prizes. | 0004| B. The authority shall transmit all net revenues to | 0005| the state treasurer who shall deposit sixty percent of the | 0006| revenues in the lottery public school capital [outlay] fund | 0007| for expenditure pursuant to the provisions of the Public School | 0008| Capital [Outlay] Improvements Act and the Technology for | 0009| Education Act and forty percent in the lottery tuition fund. | 0010| Estimated net revenues shall be transmitted monthly to the | 0011| state treasurer for deposit in the funds, provided the total | 0012| amount of annual net revenues for the fiscal year shall be | 0013| transmitted no later than August 1 [each] of the following | 0014| fiscal year. | 0015| C. In determining net revenues, operating expenses | 0016| of the lottery include all costs incurred in the operation and | 0017| administration of the lottery and all costs resulting from any | 0018| contracts entered into for the purchase or lease of goods or | 0019| services required by the lottery, including [but not limited | 0020| to] the costs of supplies, materials, tickets, independent | 0021| audit services, independent studies, data transmission, | 0022| advertising, promotion, incentives, public relations, | 0023| communications, commissions paid to lottery retailers, | 0024| printing, distribution of tickets, purchases of annuities or | 0025| investments to be used to pay future installments of winning | 0001| lottery tickets, debt service and payment of any revenue bonds | 0002| issued, contingency reserves, transfers to the reserve fund and | 0003| any other necessary costs incurred in carrying out the | 0004| provisions of the New Mexico Lottery Act. | 0005| D. An amount up to two percent of the gross annual | 0006| revenues shall be set aside as a reserve fund to cover bonuses | 0007| and incentive plans for lottery retailers, special promotions | 0008| for retailers, purchasing special promotional giveaways, | 0009| sponsoring special promotional events, compulsive gambling | 0010| rehabilitation and such other purposes as the board deems | 0011| necessary to maintain the integrity and meet the revenue goals | 0012| of the lottery. The board shall report annually to the | 0013| governor and each regular session of the legislature on the use | 0014| of the money in the reserve fund. Any balance in excess of | 0015| fifty thousand dollars ($50,000) at the end of any fiscal year | 0016| shall be transferred to the lottery tuition fund." | 0017| Section 3. Section 6-24-27 NMSA 1978 (being Laws 1995, | 0018| Chapter 155, Section 27) is amended to read: | 0019| "6-24-27. REVENUE AND BUDGET REPORTS--RECORDS-- | 0020| INDEPENDENT AUDITS.-- | 0021| A. The board shall: | 0022| (1) submit quarterly and annual reports to the | 0023| governor, legislative finance committee and lottery oversight | 0024| committee disclosing the total lottery revenue, prizes, | 0025| commissions, ticket costs, operating expenses and net revenues | 0001| of the authority during the reporting period and, in the annual | 0002| report, describe the organizational structure of the authority | 0003| and summarize the functions performed by each organizational | 0004| division within the authority; | 0005| (2) maintain weekly or more frequent records | 0006| of lottery transactions, including the distribution of lottery | 0007| tickets to retailers, revenue received, claims for prizes, | 0008| prizes paid, prizes forfeited and other financial transactions | 0009| of the authority; and | 0010| (3) use the state government fiscal year. | 0011| B. The board shall provide, for informational | 0012| purposes, to the department of finance and administration and | 0013| the legislative finance committee, by December 1 of each year, | 0014| a copy of the annual proposed operating budget for the | 0015| authority for the succeeding fiscal year. This budget proposal | 0016| shall also be accompanied by an estimate of the net revenues to | 0017| be deposited in the [public school capital outlay fund] | 0018| lottery public school capital fund and the lottery tuition | 0019| fund for the current and succeeding fiscal years. | 0020| C. The board shall contract with an independent | 0021| certified public accountant or firm for an annual financial | 0022| audit of the authority. The certified public accountant or | 0023| firm shall have no financial interest in any lottery | 0024| contractor. The certified public accountant or firm shall | 0025| present an audit report no later than March 1 for the prior | 0001| fiscal year. The certified public accountant or firm shall | 0002| evaluate the internal auditing controls in effect during the | 0003| audit period. The cost of this financial audit shall be an | 0004| operating expense of the authority. The legislative finance | 0005| committee may, at any time, order an audit of any phase of the | 0006| operations of the authority, at the expense of the authority, | 0007| and shall receive a copy of the annual independent financial | 0008| audit. A copy of any audit performed by the certified public | 0009| accountant or ordered by the legislative finance committee | 0010| shall be transmitted to the governor, the speaker of the house | 0011| of representatives, the president pro tempore of the senate, | 0012| the legislative finance committee and the lottery oversight | 0013| committee." | 0014| Section 4. Section 22-15A-9 NMSA 1978 (being Laws 1994, | 0015| Chapter 96, Section 9) is amended to read: | 0016| "22-15A-9. EDUCATIONAL TECHNOLOGY FUND--DISTRIBUTION.-- | 0017| A. Upon annual review and approval of a school | 0018| district's educational technology plan, the bureau shall | 0019| determine a separate distribution from the educational | 0020| technology fund for each school district. | 0021| B. On or before July 31 of each year, the bureau | 0022| shall distribute money in the educational technology fund | 0023| directly to each school district in an amount equal to ninety | 0024| percent of the district's estimated entitlement as determined | 0025| by the projected membership for the school year. A school | 0001| district's entitlement is that portion of the total amount of | 0002| the annual appropriation that the projected membership bears to | 0003| the projected membership of the state. Kindergarten membership | 0004| shall be calculated on a one-half full-time equivalent basis. | 0005| C. On or before January 30 of each year, the bureau | 0006| shall recompute each entitlement using the final funded | 0007| membership for that year and shall allocate the balance of the | 0008| annual appropriation adjusting for any over- or under- | 0009| projection of membership. | 0010| D. Any school district receiving funding pursuant | 0011| to the Technology for Education Act is responsible for the | 0012| purchase, distribution, use and maintenance of educational | 0013| technology. | 0014| E. As used in this section: | 0015| (1) "annual appropriation" means for a fiscal | 0016| year the sum of appropriations to the educational technology | 0017| fund for the fiscal year and state lottery revenues distributed | 0018| to the fund in that fiscal year; and | 0019| (2) "membership" means the total enrollment | 0020| of qualified students, as defined in the Public School Finance | 0021| Act, on the current roll of class or school on a specified day. | 0022| The current roll is established by the addition of original | 0023| entries and re-entries minus withdrawals. Withdrawal of | 0024| students, in addition to students formally withdrawn from the | 0025| public school, includes students absent from the public school | 0001| for as many as ten consecutive school days." | 0002| Section 5. Section 22-25-9 NMSA 1978 (being Laws 1975 | 0003| (S.S.), Chapter 5, Section 9, as amended by Laws 1988, Chapter | 0004| 64, Section 44 and also by Laws 1988, Chapter 66, Section 2) is | 0005| amended to read: | 0006| "22-25-9. STATE DISTRIBUTION TO DISTRICT IMPOSING TAX | 0007| UNDER CERTAIN CIRCUMSTANCES.-- | 0008| A. The [director] state superintendent shall | 0009| distribute to any school district that has imposed a tax under | 0010| the Public School Capital Improvements Act an amount from the | 0011| public school capital improvements fund that is equal to the | 0012| amount by which the revenue estimated to be received from the | 0013| imposed tax, at the rate certified by the department of finance | 0014| and administration in accordance with Section 22-25-7 NMSA | 0015| 1978, assuming a one hundred percent collection rate, is less | 0016| than an amount calculated by multiplying the district's first | 0017| forty-days' total program units times thirty-five dollars | 0018| ($35.00) and further multiplying the product obtained by the | 0019| tax rate approved by the qualified electors in the most recent | 0020| election on the question of imposing a tax under the Public | 0021| School Capital Improvements Act. The distribution shall be | 0022| made each year that the tax is imposed in accordance with | 0023| Section 22-25-7 NMSA 1978; provided that no state distribution | 0024| from the public school capital improvements fund may be used | 0025| for capital improvements to any administration building of a | 0001| school district. In the event that sufficient funds are not | 0002| available in the public school capital improvements fund to | 0003| make the state distribution provided for in this [section] | 0004| subsection, the dollar per program unit figure shall be | 0005| reduced as necessary. | 0006| B. After calculating the amounts to be distributed | 0007| to school districts in Subsection A of this section, the state | 0008| superintendent shall make the same calculation for the same | 0009| school districts using forty-five dollars ($45.00) as the | 0010| dollar per program unit multiplier. Based on that calculation, | 0011| the state superintendent shall make a distribution from the | 0012| lottery public school capital fund to any school district that | 0013| qualifies for a distribution in an amount that is equal to the | 0014| amount of the difference between using thirty-five dollars | 0015| ($35.00) and forty-five dollars ($45.00) as the multiplier in | 0016| the calculation in Subsection A of this section. This amount | 0017| shall be distributed to the school district at the same time as | 0018| and subject to the provisions of the distributions in | 0019| Subsection A of this section. In the event that sufficient | 0020| funds are not available from the balance on August 1 in the | 0021| lottery public school capital fund to make the distributions | 0022| provided for in this subsection, the dollar per program unit | 0023| multiplier shall be reduced as necessary." | 0024| Section 6. EFFECTIVE DATE.--The effective date of the | 0025| provisions of this act is July 1, 1997. | 0001|  |