0001| HOUSE BILL 18 | 0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0003| INTRODUCED BY | 0004| DANIEL P. SILVA | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO STATE LOTTERY REVENUES; EARMARKING FIFTY PERCENT OF | 0012| LOTTERY NET REVENUES FOR DISTRIBUTION TO PUBLIC SCHOOLS FOR | 0013| EDUCATIONAL TECHNOLOGY PURSUANT TO THE TECHNOLOGY FOR EDUCATION | 0014| ACT; AMENDING SECTIONS OF THE NMSA 1978; MAKING AN | 0015| APPROPRIATION. | 0016| | 0017| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0018| Section 1. Section 6-24-24 NMSA 1978 (being Laws 1995, | 0019| Chapter 155, Section 24) is amended to read: | 0020| "6-24-24. DISPOSITION OF REVENUE.-- | 0021| A. As nearly as practical, an amount equal to at | 0022| least fifty percent of the gross annual revenues from the sale | 0023| of lottery tickets shall be returned to the public in the form | 0024| of lottery prizes. | 0025| B. The authority shall transmit all net revenues to | 0001| the state treasurer who shall deposit [sixty] fifty percent | 0002| of the revenues in the [public school capital outlay] | 0003| educational technology fund for expenditure pursuant to the | 0004| provisions of the [Public School Capital Outlay] Technology | 0005| for Education Act and [forty] fifty percent in the lottery | 0006| tuition fund. Estimated net revenues shall be transmitted | 0007| monthly to the state treasurer for deposit in the funds; | 0008| provided the total amount of annual net revenues for the fiscal | 0009| year shall be transmitted no later than August 1 [each] of | 0010| the following fiscal year. | 0011| C. In determining net revenues, operating expenses | 0012| of the lottery include all costs incurred in the operation and | 0013| administration of the lottery and all costs resulting from any | 0014| contracts entered into for the purchase or lease of goods or | 0015| services required by the lottery, including [but not limited | 0016| to] the costs of supplies, materials, tickets, independent | 0017| audit services, independent studies, data transmission, | 0018| advertising, promotion, incentives, public relations, | 0019| communications, commissions paid to lottery retailers, | 0020| printing, distribution of tickets, purchases of annuities or | 0021| investments to be used to pay future installments of winning | 0022| lottery tickets, debt service and payment of any revenue bonds | 0023| issued, contingency reserves, transfers to the reserve fund and | 0024| any other necessary costs incurred in carrying out the | 0025| provisions of the New Mexico Lottery Act. | 0001| D. An amount up to two percent of the gross annual | 0002| revenues shall be set aside as a reserve fund to cover bonuses | 0003| and incentive plans for lottery retailers, special promotions | 0004| for retailers, purchasing special promotional giveaways, | 0005| sponsoring special promotional events, compulsive gambling | 0006| rehabilitation and such other purposes as the board deems | 0007| necessary to maintain the integrity and meet the revenue goals | 0008| of the lottery. The board shall report annually to the | 0009| governor and each regular session of the legislature on the use | 0010| of the money in the reserve fund. Any balance in excess of | 0011| fifty thousand dollars ($50,000) at the end of any fiscal year | 0012| shall be transferred to the lottery tuition fund." | 0013| Section 2. Section 6-24-27 NMSA 1978 (being Laws 1995, | 0014| Chapter 155, Section 27) is amended to read: | 0015| "6-24-27. REVENUE AND BUDGET REPORTS--RECORDS-- | 0016| INDEPENDENT AUDITS.-- | 0017| A. The board shall: | 0018| (1) submit quarterly and annual reports to the | 0019| governor, legislative finance committee and lottery oversight | 0020| committee disclosing the total lottery revenue, prizes, | 0021| commissions, ticket costs, operating expenses and net revenues | 0022| of the authority during the reporting period and, in the annual | 0023| report, describe the organizational structure of the authority | 0024| and summarize the functions performed by each organizational | 0025| division within the authority; | 0001| (2) maintain weekly or more frequent records | 0002| of lottery transactions, including the distribution of lottery | 0003| tickets to retailers, revenue received, claims for prizes, | 0004| prizes paid, prizes forfeited and other financial transactions | 0005| of the authority; and | 0006| (3) use the state government fiscal year. | 0007| B. The board shall provide, for informational | 0008| purposes, to the department of finance and administration and | 0009| the legislative finance committee, by December 1 of each year, | 0010| a copy of the annual proposed operating budget for the | 0011| authority for the succeeding fiscal year. This budget proposal | 0012| shall also be accompanied by an estimate of the net revenues to | 0013| be deposited in the [public school capital outlay] | 0014| educational technology fund and the lottery tuition fund for | 0015| the current and succeeding fiscal years. | 0016| C. The board shall contract with an independent | 0017| certified public accountant or firm for an annual financial | 0018| audit of the authority. The certified public accountant or | 0019| firm shall have no financial interest in any lottery | 0020| contractor. The certified public accountant or firm shall | 0021| present an audit report no later than March 1 for the prior | 0022| fiscal year. The certified public accountant or firm shall | 0023| evaluate the internal auditing controls in effect during the | 0024| audit period. The cost of this financial audit shall be an | 0025| operating expense of the authority. The legislative finance | 0001| committee may, at any time, order an audit of any phase of the | 0002| operations of the authority, at the expense of the authority, | 0003| and shall receive a copy of the annual independent financial | 0004| audit. A copy of any audit performed by the certified public | 0005| accountant or ordered by the legislative finance committee | 0006| shall be transmitted to the governor, the speaker of the house | 0007| of representatives, the president pro tempore of the senate, | 0008| the legislative finance committee and the lottery oversight | 0009| committee." | 0010| Section 3. Section 22-15A-9 NMSA 1978 (being Laws 1994, | 0011| Chapter 96, Section 9) is amended to read: | 0012| "22-15A-9. EDUCATIONAL TECHNOLOGY FUND--DISTRIBUTION.-- | 0013| A. Upon annual review and approval of a school | 0014| district's educational technology plan, the bureau shall | 0015| determine a separate distribution from the educational | 0016| technology fund for each school district. | 0017| B. On or before July 31 of each year, the bureau | 0018| shall distribute money in the educational technology fund | 0019| directly to each school district in an amount equal to ninety | 0020| percent of the district's estimated entitlement as determined | 0021| by the projected membership for the school year. A school | 0022| district's entitlement is that portion of the total amount of | 0023| the annual appropriation that the projected membership bears to | 0024| the projected membership of the state. Kindergarten membership | 0025| shall be calculated on a one-half full-time equivalent basis. | 0001| C. On or before January 30 of each year, the bureau | 0002| shall recompute each entitlement using the final funded | 0003| membership for that year and shall allocate the balance of the | 0004| annual appropriation adjusting for any over- or under- | 0005| projection of membership. | 0006| D. Any school district receiving funding pursuant | 0007| to the Technology for Education Act is responsible for the | 0008| purchase, distribution, use and maintenance of educational | 0009| technology. | 0010| E. As used in this section: | 0011| (1) "annual appropriation" means for any | 0012| fiscal year the sum of appropriations to the educational | 0013| technology fund for the fiscal year and all state lottery | 0014| revenues distributed to the fund in the prior fiscal year; and | 0015| (2) "membership" means the total enrollment | 0016| of qualified students, as defined in the Public School Finance | 0017| Act, on the current roll of class or school on a specified day. | 0018| The current roll is established by the addition of original | 0019| entries and re-entries minus withdrawals. Withdrawal of | 0020| students, in addition to students formally withdrawn from the | 0021| public school, includes students absent from the public school | 0022| for as many as ten consecutive school days." | 0023| Section 4. EFFECTIVE DATE.--The effective date of the | 0024| provisions of this act is July 1, 1997. | 0025|  |