0001| HOUSE BILL 333
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0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003| INTRODUCED BY
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0004| TED HOBBS
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0005|
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0006|
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0007|
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0008|
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0009|
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0010| AN ACT
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0011| RELATING TO STATE LOTTERY REVENUES; CHANGING THE DISPOSITION OF
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0012| STATE LOTTERY REVENUES FOR PUBLIC SCHOOLS TO EARMARK THIRTY
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0013| PERCENT FOR EXPENDITURE PURSUANT TO THE PUBLIC SCHOOL CAPITAL
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0014| OUTLAY ACT AND THIRTY PERCENT FOR EXPENDITURE PURSUANT TO THE
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0015| TECHNOLOGY FOR EDUCATION ACT; MAKING AN APPROPRIATION.
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0016|
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0017| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0018| Section 1. Section 6-24-24 NMSA 1978 (being Laws 1995,
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0019| Chapter 155, Section 24) is amended to read:
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0020| "6-24-24. DISPOSITION OF REVENUE.--
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0021| A. As nearly as practical, an amount equal to at
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0022| least fifty percent of the gross annual revenues from the sale
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0023| of lottery tickets shall be returned to the public in the form
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0024| of lottery prizes.
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0025| B. The authority shall transmit all net revenues to
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0001| the state treasurer who shall deposit [sixty] thirty percent
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0002| of the revenues in the public school capital outlay fund for
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0003| expenditure pursuant to the provisions of the Public School
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0004| Capital Outlay Act, thirty percent in the educational
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0005| technology fund for expenditure pursuant to the provisions of
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0006| the Technology for Education Act and forty percent in the
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0007| lottery tuition fund. Estimated net revenues shall be
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0008| transmitted monthly to the state treasurer for deposit in the
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0009| funds, provided the total amount of annual net revenues for the
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0010| fiscal year shall be transmitted no later than August 1 each
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0011| year.
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0012| C. In determining net revenues, operating expenses
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0013| of the lottery include all costs incurred in the operation and
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0014| administration of the lottery and all costs resulting from any
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0015| contracts entered into for the purchase or lease of goods or
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0016| services required by the lottery, including [but not limited
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to] the costs of supplies, materials, tickets, independent
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0018| audit services, independent studies, data transmission,
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0019| advertising, promotion, incentives, public relations,
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0020| communications, commissions paid to lottery retailers,
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0021| printing, distribution of tickets, purchases of annuities or
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0022| investments to be used to pay future installments of winning
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0023| lottery tickets, debt service and payment of any revenue bonds
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0024| issued, contingency reserves, transfers to the reserve fund and
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0025| any other necessary costs incurred in carrying out the
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0001| provisions of the New Mexico Lottery Act.
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0002| D. An amount up to two percent of the gross annual
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0003| revenues shall be set aside as a reserve fund to cover bonuses
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0004| and incentive plans for lottery retailers, special promotions
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0005| for retailers, purchasing special promotional giveaways,
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0006| sponsoring special promotional events, compulsive gambling
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0007| rehabilitation and such other purposes as the board deems
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0008| necessary to maintain the integrity and meet the revenue goals
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0009| of the lottery. The board shall report annually to the
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0010| governor and each regular session of the legislature on the use
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0011| of the money in the reserve fund. Any balance in excess of
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0012| fifty thousand dollars ($50,000) at the end of any fiscal year
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0013| shall be transferred to the lottery tuition fund."
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0014| Section 2. Section 6-24-27 NMSA 1978 (being Laws 1995,
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0015| Chapter 155, Section 27) is amended to read:
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0016| "6-24-27. REVENUE AND BUDGET REPORTS--RECORDS--
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0017| INDEPENDENT AUDITS.--
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0018| A. The board shall:
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0019| (l) submit quarterly and annual reports to the
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0020| governor, legislative finance committee and lottery oversight
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0021| committee disclosing the total lottery revenue, prizes,
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0022| commissions, ticket costs, operating expenses and net revenues
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0023| of the authority during the reporting period and, in the annual
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0024| report, describe the organizational structure of the authority
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0025| and summarize the functions performed by each organizational
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0001| division within the authority;
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0002| (2) maintain weekly or more frequent records
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0003| of lottery transactions, including the distribution of lottery
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0004| tickets to retailers, revenue received, claims for prizes,
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0005| prizes paid, prizes forfeited and other financial transactions
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0006| of the authority; and
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0007| (3) use the state government fiscal year.
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0008| B. The board shall provide, for informational
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0009| purposes, to the department of finance and administration and
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0010| the legislative finance committee, by December 1 of each year,
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0011| a copy of the annual proposed operating budget for the
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0012| authority for the succeeding fiscal year. This budget proposal
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0013| shall also be accompanied by an estimate of the net revenues to
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0014| be deposited in the public school capital outlay fund, the
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0015| educational technology fund and the lottery tuition fund for
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0016| the current and succeeding fiscal years.
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0017| C. The board shall contract with an independent
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0018| certified public accountant or firm for an annual financial
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0019| audit of the authority. The certified public accountant or
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0020| firm shall have no financial interest in any lottery
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0021| contractor. The certified public accountant or firm shall
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0022| present an audit report no later than March 1 for the prior
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0023| fiscal year. The certified public accountant or firm shall
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0024| evaluate the internal auditing controls in effect during the
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0025| audit period. The cost of this financial audit shall be an
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0001| operating expense of the authority. The legislative finance
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0002| committee may, at any time, order an audit of any phase of the
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0003| operations of the authority, at the expense of the authority,
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0004| and shall receive a copy of the annual independent financial
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0005| audit. A copy of any audit performed by the certified public
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0006| accountant or ordered by the legislative finance committee
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0007| shall be transmitted to the governor, the speaker of the house
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0008| of representatives, the president pro tempore of the senate,
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0009| the legislative finance committee and the lottery oversight
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0010| committee."
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0011| Section 3. Section 22-15A-9 NMSA 1978 (being Laws 1994,
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0012| Chapter 96, Section 9) is amended to read:
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0013| "22-15A-9. EDUCATIONAL TECHNOLOGY FUND--DISTRIBUTION.--
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0014| A. Upon annual review and approval of a school
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0015| district's educational technology plan, the bureau shall
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0016| determine a separate distribution from the educational
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0017| technology fund for each school district.
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0018| B. On or before July 31 of each year, the bureau
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0019| shall distribute money in the educational technology fund
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0020| directly to each school district in an amount equal to ninety
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0021| percent of the district's estimated entitlement as determined
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0022| by the projected membership for the school year. A school
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0023| district's entitlement is that portion of the total amount of
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0024| the annual appropriation that the projected membership bears to
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0025| the projected membership of the state. Kindergarten membership
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0001| shall be calculated on a one-half full-time equivalent basis.
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0002| C. On or before January 30 of each year, the bureau
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0003| shall recompute each entitlement using the final funded
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0004| membership for that year and shall allocate the balance of the
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0005| annual appropriation adjusting for any over- or under-
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0006| projection of membership.
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0007| D. Any school district receiving funding pursuant
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0008| to the Technology for Education Act is responsible for the
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0009| purchase, distribution, use and maintenance of educational
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0010| technology.
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0011| E. As used in this section:
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0012| (1) "annual appropriation" means for a fiscal
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0013| year the sum of appropriations to the educational technology
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0014| fund for the fiscal year and all state lottery revenues
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0015| distributed to the fund for the prior fiscal year; and
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0016| (2) "membership" means the total enrollment
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0017| of qualified students, as defined in the Public School Finance
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0018| Act, on the current roll of class or school on a specified day.
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0019| The current roll is established by the addition of original
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0020| entries and re-entries minus withdrawals. Withdrawal of
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0021| students, in addition to students formally withdrawn from the
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0022| public school, includes students absent from the public school
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0023| for as many as ten consecutive school days."
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