0001|                           HOUSE BILL 1304
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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|                            DANICE PICRAUX
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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 SCHOOL DISTRICTS; ENACTING THE EDUCATION TECHNOLOGY
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0012|     EQUIPMENT ACT; AMENDING A CERTAIN SECTION OF THE NMSA 1978;
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0013|     DECLARING AN EMERGENCY.
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0014|     
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0015|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0016|          SECTION 1.  [<u>NEW MATERIAL</u>]  SHORT TITLE.--Sections 1
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0017|     through 16 of this act may be cited as the "Education
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0018|     Technology Equipment Act".
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0019|          SECTION 2.  [<u>NEW MATERIAL</u>]  PURPOSE--The purpose of the
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0020|     Education Technology Equipment Act is to implement the
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0021|     provision of Article IX, Section 11 of the constitution of New
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0022|     Mexico, as approved by the voters of the state of New Mexico at
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0023|     the general election held in November, 1996, which declare that
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0024|     a school district may create a debt under the constitution of
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0025|     New Mexico by entering into a lease-purchase arrangement to
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0001|     acquire education technology equipment without submitting the
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0002|     proposition to a vote of the qualified electors of the school
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0003|     district.
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0004|          Section 3.  [<u>NEW MATERIAL</u>]  DEFINITIONS.--As used in the
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0005|     Education Technology Equipment Act:
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0006|               A.  "debt" means an obligation payable from ad
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0007|     valorem property tax revenues or the general fund of a school
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0008|     district and that may be secured by the full faith and credit
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0009|     of a school district and a pledge of its taxing powers;
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0010|               B.  "education technology equipment" means any
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0011|     computer equipment, communication equipment, video equipment or
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0012|     other technological equipment, including related hardware,
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0013|     software, wiring, fiber optics cables, installation costs,
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0014|     furnishings and other improvements necessary to fully utilize
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0015|     the equipment found and determined by the local school board to
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0016|     be education technology equipment;
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0017|               C.  "lease-purchase arrangement" means a financing
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0018|     arrangement constituting debt of a school district pursuant to
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0019|     which periodic lease payments composed of principal and
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0020|     interest components are to be paid to the holder of the lease-
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0021|     purchase arrangement and pursuant to which the owner of the
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0022|     education technology equipment may retain title to or a
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0023|     security interest in the equipment and may agree to release the
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0024|     security interest or transfer title to the equipment to the
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0025|     school district for nominal consideration after payment of the
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0001|     final periodic lease payment.  "Lease-purchase arrangement"
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0002|     also means any debt of the school district incurred for the
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0003|     purpose of acquiring education technology equipment pursuant to
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0004|     the Education Technology Act whether designated as a lease,
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0005|     bond, note, loan, warrant, debenture, obligation or other
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0006|     instrument evidencing a debt of the school district; 
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0007|               D.  "local school board" means the governing body of
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0008|     a school district; and
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0009|               E.  "school district" means an area of land
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0010|     established as a political subdivision of the state for the
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0011|     administration of public schools and segregated geographically
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0012|     for taxation and bonding purposes.
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0013|          Section 4.  [<u>NEW MATERIAL</u>]  NOTICE OF PROPOSED LEASE-
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0014|     PURCHASE ARRANGEMENTS.--When a school district contemplates
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0015|     entering into a lease-purchase arrangement payable in whole or
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0016|     in part from ad valorem taxes, the local school board, before
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0017|     initiating any proceedings for approval of such lease-purchase
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0018|     arrangement, shall forward to the school budget planning unit
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0019|     of the state department of public education, a written notice
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0020|     of the proposed lease-purchase arrangement.
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0021|          Section 5.  [<u>NEW MATERIAL</u>]  SCHOOL BUDGET PLANNING UNIT
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0022|     OF THE STATE DEPARTMENT OF PUBLIC EDUCATION TO FURNISH
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0023|     INFORMATION, TRANSCRIPTS OF PROCEEDINGS AND DISPOSITION.--The
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0024|     school budget planning unit of the state department of public
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0025|     education, upon the receipt of the notice mentioned in Section
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0001|     4 of the Education Technology Equipment Act shall furnish all
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0002|     necessary information with reference to the valuation, present
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0003|     outstanding bonded indebtedness, present outstanding lease-
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0004|     purchase arrangements and limitations as to tax rates and debt
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0005|     contracting power and other information useful to the local
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0006|     school board in the consideration of a proposed lease-purchase
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0007|     arrangement.  Upon entering into  a lease-purchase arrangement,
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0008|     the local school board shall prepare two true and complete
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0009|     transcripts of proceedings relating to the lease-purchase
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0010|     arrangement, one to be immediately filed with the school budget
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0011|     planning unit of the department of public education and one to
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0012|     be kept by the local school board.
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0013|          Section 6.  [<u>NEW MATERIAL</u>]  TAX LEVY FOR PAYMENT OF
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0014|     LEASE-PURCHASE AGREEMENT.--The officials charged by law with
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0015|     the duty of levying ad valorem taxes for the payment of bonds
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0016|     and interest shall, in the manner provided by law, make an
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0017|     annual levy sufficient to meet the payments due on lease-
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0018|     purchase arrangements.  Nothing herein contained shall be so
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0019|     construed as to prevent a school district from applying any
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0020|     other funds that may be in its general fund or investment
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0021|     income actually received from investments and available for
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0022|     that purpose to the payments due or any pre-payment premium
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0023|     payable in connection with such lease-purchase arrangements as
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0024|     the same become due; and upon such payments, the levy or levies
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0025|     herein provided may thereupon to that extend be reduced.
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0001|          Section 7.  [<u>NEW MATERIAL</u>]  LEASE-PURCHASE ARRANGEMENTS-
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0002|     -TERMS.--Lease purchase arrangements may:
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0003|               A.  have interest, appreciated principal value, or
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0004|     any part thereof, payable at intervals or at maturity as may be
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0005|     determined by the local school board; 
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0006|               B.  be subject to prior redemption or prepayment at
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0007|     the option of the local school board as such time or times and
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0008|     upon such terms and conditions with or without the payment of
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0009|     such premium or premiums as may be determined by the local
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0010|     school board;
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0011|               C.  have a final payment date or mature at any time
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0012|     or times not exceeding ten years after the date of issuance; 
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0013|               D.  be payable at one time or in installments or may
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0014|     be in such other form as may be determined by the local school
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0015|     board;
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0016|               E.  be priced at, above or below par and at a price
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0017|     that results in a net effective interest rate that does not
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0018|     exceed the maximum permitted by the Public Securities Act; and
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0019|               F.  be sold or issued at public sale, negotiated
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0020|     sale or private sale to the New Mexico finance authority.
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0021|          Section 8.  [<u>NEW MATERIAL</u>]  RESOLUTION AUTHORIZING
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0022|     LEASE-PURCHASE ARRANGEMENTS.--At a regular or special meeting
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0023|     called for the purpose of approving a lease-purchase
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0024|     arrangement as authorized in the Education Technology Equipment
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0025|     Act, the local school board may authorize and approve a lease
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0001|     purchase arrangement by adoption of a resolution that:
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0002|               A.  declares the necessity for entering into the
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0003|     lease-purchase arrangement;
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0004|               B.  authorizes entering into the lease-purchase
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0005|     arrangement by an affirmative vote of a majority of all the
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0006|     members of the local school board; and
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0007|               C.  designates the sources of payment for the lease-
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0008|     purchase arrangement.
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0009|          Section 9.  [<u>NEW MATERIAL</u>]  PUBLICATION OF NOTICE--
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0010|     VALIDATION--LIMITATION OF ACTION.--
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0011|               A.  After adoption of a resolution approving a
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0012|     lease-purchase arrangement, the local school board shall
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0013|     publish notice of the adoption of the resolution once in a
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0014|     newspaper of general circulation in the school district.
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0015|               B.  After the passage of thirty days from the
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0016|     publication required by Subsection A of this section, any
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0017|     action attacking the validity of the proceedings had or taken
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0018|     by the local school board preliminary to and in the
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0019|     authorization of an entering into the lease-purchase
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0020|     arrangement described in the notice is perpetually barred.
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0021|          Section 10.  [<u>NEW MATERIAL</u>]  REFUNDING OR REFINANCING
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0022|     LEASE-PURCHASE ARRANGEMENTS.--School districts are authorized
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0023|     to enter into lease-purchase arrangements for the purpose of
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0024|     refunding or refinancing any lease-purchase arrangements then
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0025|     outstanding, including the payment of any pre-payment of
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0001|     redemption premiums thereon and any interest accrued or to
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0002|     accrue to the date of purchase, prepayment, redemption or
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0003|     maturity of the outstanding lease-purchase arrangements.  Until
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0004|     the proceeds of the lease-purchase arrangements issued for the
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0005|     purpose of refunding or refinancing outstanding lease-purchase
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0006|     arrangements are applied to the purchase, prepayment,
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0007|     redemption or retirement of the outstanding lease-purchase
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0008|     arrangements, the proceeds may be placed in escrow and invested
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0009|     and reinvested.  The interest, income and profits, if any,
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0010|     earned or realized on any such investment may, in the
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0011|     discretion of the local school board, also be applied to the
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0012|     payment of the outstanding lease-purchase arrangements to be
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0013|     refunded or refinanced by purchase, prepayment, redemption or
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0014|     retirement, as the case may be.  After the terms of the escrow
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0015|     have been fully satisfied and carried out, any balance of such
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0016|     proceeds and interest, if any, earned or realized on the
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0017|     investments thereof may be returned to the local school board
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0018|     for use in any lawful manner.  All such refunding or
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0019|     refinancing lease-purchase arrangement shall be entered into
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0020|     under, secured and subject to the provisions of the Education
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0021|     Technology Equipment Act in the same manner and to the same
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0022|     extent as any other lease-purchase arrangements entered into
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0023|     pursuant to that act.
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0024|          Section 11.  [<u>NEW MATERIAL</u>]  AGREEMENT OF THE STATE.--
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0025|     The state does hereby pledge to and agree with the holders of
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0001|     any lease-purchase arrangement entered into under the Education
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0002|     Technology Equipment Act that the state will not limit or alter
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0003|     the rights hereby vested in school districts to fulfill the
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0004|     terms of any lease-purchase arrangement or in any way impair
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0005|     the rights and remedies of the holders of lease-purchase
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0006|     arrangements until the payments due thereon, and all costs and
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0007|     expenses in connection with any action or proceedings by or on
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0008|     behalf of those holders, are fully met and discharged.  School
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0009|     districts are authorized to include this pledge and agreement
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0010|     of the state in any lease-purchase arrangement.
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0011|          Section 12.  [<u>NEW MATERIAL</u>]  LEGAL INVESTMENTS FOR
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0012|     PUBLIC OFFICERS AND FIDUCIARIES.--Lease-purchase arrangements
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0013|     entered into under the authority of the Education Technology
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0014|     Equipment Act shall be legal investments in which all insurance
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0015|     companies, banks and savings and loan associations organized
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0016|     under the laws of the state, public officers and public bodies
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0017|     and all administrators, guardians, executors, trustees and
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0018|     other fiduciaries may properly and legally invest funds.
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0019|          Section 13.  [<u>NEW MATERIAL</u>]  TAX EXEMPTION.--The state
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0020|     covenants with the purchasers and all subsequent holders and
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0021|     transferees of lease-purchase arrangements entered into by the
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0022|     local school boards, in consideration of the acceptance of and
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0023|     payment for the lease-purchase arrangements entered into
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0024|     pursuant to Technology Equipment Act, that lease-purchase
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0025|     arrangements and the income from the lease-purchase
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0001|     arrangements shall at all times be free from taxation by the
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0002|     state, except for estate or gift taxes and taxes on transfers.
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0003|          Section 14.  [<u>NEW MATERIAL</u>]  CUMULATIVE AND COMPLETE
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0004|     AUTHORITY.--The Education Technology Equipment Act shall be
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0005|     deemed to provide an additional and alternative method for
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0006|     acquiring education technology equipment authorized thereby and
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0007|     shall be regarded as supplemental and additional to powers
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0008|     conferred by other laws and shall not be regarded as a
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0009|     derogation of any powers now existing.  The act shall be deemed
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0010|     to provide complete authority for acquiring education
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0011|     technology equipment and entering into lease-purchase
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0012|     arrangements contemplated thereby and no other approval of any
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0013|     state agency or officer, except as provided therein, shall be
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0014|     required with respect to any lease-purchase arrangements and
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0015|     the local school board acting thereunder need not comply with
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0016|     the requirements of any other law applicable to the issuance of
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0017|     debt by school districts.
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0018|          Section 15.  LIBERAL INTERPRETATION.--The Education
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0019|     Technology Equipment Act, being necessary for the welfare of
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0020|     the state and its inhabitants, shall be liberally construed to
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0021|     the effect of the purposes of the act.
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0022|          Section 16.  SEVERABILITY.--If any part or application of
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0023|     the Education Technology Equipment Act is held invalid, the
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0024|     remainder or its application to other circumstances shall not
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0025|     be affected.
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0001|          Section 17.  Section 7-37-8 NMSA 1978 (being Laws 1978,
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0002|     Chapter 128, Section 1, as amended) is amended to read:
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0003|          "7-37-8.  SCHOOL TAX RATES.--No later than August 15 of
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0004|     each year, the state department of public education shall
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0005|     submit to the secretary of finance and administration the prop-
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0006|     
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0007|     erty tax rates for the succeeding tax year for each school
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0008|     district and the commission on higher education shall submit to
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0009|     the secretary of finance and administration the property tax
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0010|     rates for the succeeding tax year for each technical and
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0011|     vocational district, area vocational school district, junior
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0012|     college district and branch community college district.  The
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0013|     rates required to be submitted pursuant to this section shall
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0014|     separately state by county and by school district the rate to
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0015|     be levied for operational purposes and the rate to be levied
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0016|     for <u>payment of</u> principal and interest on general obligation
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0017|     <s>[bonds]</s> <u>debt</u> issued <u>or entered into</u> by the district."
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0018|          Section 18.  EMERGENCY.--It is necessary for the public
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0019|     peace, health and safety that this act take effect immediately.
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0020|                                                         State of New Mexico
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0021|                      House of Representatives
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0022|   
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0023|                      FORTY-THIRD LEGISLATURE
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0024|                        FIRST SESSION, 1997
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0025|   
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0001|   
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0002|                                                  March 12, 1997
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0003|   
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0004|   
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0005|   Mr. Speaker:
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0006|   
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0007|        Your EDUCATION COMMITTEE, to whom has been referred
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0008|   
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0009|                       HOUSE BILL 1304
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0010|                               
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0011|   has had it under consideration and reports same with
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0012|   recommendation that it DO PASS amended as follows:
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0013|   
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0014|        1.   On page 1, line 23, strike "declare" and insert in
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0015|   lieu thereof "declares".
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0016|   
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0017|        2.   On page 4, line 25, strike "extend" and insert in lieu
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0018|   thereof "extent".
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0019|        
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0020|        3.   On page 6, line 17, strike "had or" and on line 18,
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0021|   strike "an" and insert in lieu thereof "and".
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0022|   
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0023|                                 Respectfully submitted,
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0024|   
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0025|   
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0001|   
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0002|                                 <u>                                
</u>    |
<u></u>0003| <u>  
</u>    |
<u></u>0004| <u>                                </u>                             Samuel F. Vigil, Chairman
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0005|   
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0006|   
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0007|   Adopted <u>                    </u>     Not Adopted <u>                    
</u>    |
<u></u>0008| <u>   </u>
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0009|             (Chief Clerk)                       (Chief Clerk)
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0010|   
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0011|                        Date <u>            </u>
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0012|   
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0013|   The roll call vote was<u> 9 </u> For<u> 0 </u> Against
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0014|   Yes:      9
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0015|             Excused:  Beam, McSherry, Nicely, Wright
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0016|             Absent:   None
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0017|   
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0018|   
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0019|   G:\BILLTEXT\BILLW_97\H1304                     FORTY-THIRD LEGISLATURE
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0020|                           FIRST SESSION
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0021|   
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0022|                                                       March 14, 1997
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0023|   
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0024|   
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0025|   HOUSE FLOOR AMENDMENT number ___1___ to HOUSE BILL 1304, as amended
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0001|   
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0002|   Amendment sponsored by Representative Danice Picraux
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0003|   
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0004|   
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0005|     1.  On page 7, lines 17 and 18, strike "for use in any lawful
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0006|   manner" and insert in lieu thereof "to be used for payment of the
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0007|   refunding or refinancing lease-purchase arrangement".
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0008|   
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0009|   
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0010|   
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0011|   
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0012|   
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0013|                                         ___________________________
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0014|                                         Danice Picraux
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0015|   
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0016|   
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0017|   
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0018|   Adopted ___________________   Not Adopted ___________________________
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0019|            (Chief Clerk)                       (Chief Clerk)
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0020|   
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0021|   
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0022|                   Date ________________  
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0023|   
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0024|                         FORTY-THIRD LEGISLATURE
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0025|                           FIRST SESSION, 1997
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0001|   
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0002|   
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0003|                                                       March 18, 1997
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0004|   
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0005|   Mr. President:
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0006|   
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0007|       Your EDUCATION COMMITTEE, to whom has been referred
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0008|   
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0009|                       HOUSE BILL 1294, as amended
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0010|   
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0011|   has had it under consideration and reports same with recommendation
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0012|   that it DO PASS.
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0013|   
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0014|                                Respectfully submitted,
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0015|   
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0016|   
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0017|   
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0018|                                __________________________________
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0019|                                Cynthia Nava, Chairman 
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0020|   
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0021|   
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0022|   
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0023|   Adopted_______________________   Not Adopted_______________________
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0024|             (Chief Clerk)                          (Chief Clerk)
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0025|   
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0001|   
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0002|   
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0003|                     Date ________________________
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0004|   
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0005|   
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0006|   The roll call vote was <u> 7 </u> For <u> 0 </u> Against
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0007|           Yes:    7
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0008|           No:     0
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0009|                Excused:     Duran, Garcia, Maloof
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0010|           Absent: None
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0011|   
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0012|   
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0013|   H1294ED1
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0014|     
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0015|   
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0016|                         FORTY-THIRD LEGISLATURE
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0017|                           FIRST SESSION, 1997
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0018|   
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0019|   
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0020|                                                       March 18, 1997
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0021|   
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0022|   Mr. President:
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0023|   
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0024|       Your EDUCATION COMMITTEE, to whom has been referred
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0025|   
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0001|                       HOUSE BILL 1304, as amended
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0002|   
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0003|   has had it under consideration and reports same with recommendation
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0004|   that it DO PASS.
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0005|   
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0006|                                Respectfully submitted,
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0007|   
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0008|   
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0009|   
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0010|                                __________________________________
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0011|                                Cynthia Nava, Chairman 
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0012|   
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0013|   
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0014|   
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0015|   Adopted_______________________   Not Adopted_______________________
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0016|             (Chief Clerk)                          (Chief Clerk)
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0017|   
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0018|   
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0019|   
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0020|                     Date ________________________
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0021|   
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0022|   
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0023|   The roll call vote was <u> 7 </u> For <u> 0 </u> Against
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0024|           Yes:    7
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0025|           No:     0
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0001|                Excused:     Duran, Garcia, Maloof
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0002|           Absent: None
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0003|   
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0004|   
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0005|   H1304ED1
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0006|                        FORTY-THIRD LEGISLATURE
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0007|                           FIRST SESSION
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0008|   
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0009|   
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0010|                                                       March 19, 1997
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0011|   
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0012|   
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0013|   SENATE FLOOR AMENDMENT number _______ to HOUSE BILL 1304, as amended
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0014|   
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0015|   Amendment sponsored by Senator Cynthia Nava 
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0016|   
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0017|   
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0018|       1.  On page 2, line 10, strike "any", strike all of lines 11
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0019|   through 15, strike line 16 up to the semicolon and insert in lieu
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0020|   thereof:
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0021|   
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0022|   "tools used in the educational process that constitute learning
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0023|   resources and may include closed-circuit television systems,
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0024|   educational television and radio broadcasting, cable television,
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0025|   satellite, copper and fiber optic transmission, computer, video and
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0001|   audio laser and CD ROM discs, video and audio tapes or other
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0002|   technologies and the maintenance, equipment and computer
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0003|   infrastructure information, techniques and tools used to implement
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0004|   technology in classrooms and library and media centers".
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0005|   
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0006|       2.  On page 5, line 12, strike "ten" and insert in lieu thereof
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0007|   "five".
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0008|   
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0009|   
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0010|   
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0011|   
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0012|                                       __________________________
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0013|                                       Cynthia Nava
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0014|   
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0015|   
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0016|   
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0017|   Adopted ___________________   Not Adopted _______________________
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0018|            (Chief Clerk)                    (Chief Clerk)
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0019|   
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0020|   
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0021|                    Date _________________
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