0001|                           SENATE BILL 595
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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|                          JOSEPH J. CARRARO
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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 EDUCATION; ENACTING THE FAMILY EDUCATIONAL EQUITY
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0012|     ACT; ESTABLISHING A PROCEDURE FOR THE DISTRIBUTION AND
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0013|     REDEMPTION OF PUBLIC SCHOOL EDUCATIONAL COUPONS; AUTHORIZING A
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0014|     PRIVATE SCHOOL TUITION TAX CREDIT OR REBATE.
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0015|     
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0016|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0017|          Section 1.  A new section of the Public School Code is
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0018|     enacted to read:
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0019|          "[<u>NEW MATERIAL</u>]  SHORT TITLE.--Sections 1 through 6 of
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0020|     this act may be cited as the "Family Educational Equity Act"."
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0021|          Section 2.  A new section of the Public School Code is
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0022|     enacted to read:
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0023|          "[<u>NEW MATERIAL</u>]  DEFINITIONS.--As used in the Family
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0024|     Educational Equity Act:
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0025|               A.  "educational coupon" means an instrument issued
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0001|     to parents that represents an amount of money to pay for
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0002|     educational services provided to a student in school outside
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0003|     that student's designated attendance area;
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0004|               B.  "student" means any school-age person who is
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0005|     enrolled in a public school and who resides in this state; and
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0006|               C.  "parents" means natural parents, legal guardians
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0007|     or any person having legal or effective custody of a student."
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0008|          Section 3.  A new section of the Public School Code is
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0009|     enacted to read:
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0010|          "[<u>NEW MATERIAL</u>]  EDUCATIONAL COUPON PROGRAM--PURPOSE--
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0011|     ADMINISTRATION.--
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0012|               A.  The department of education shall develop and
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0013|     administer an educational coupon program.  The purpose of the
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0014|     program shall be to provide alternative educational
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0015|     opportunities to all students.
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0016|               B.  The educational coupon program shall be
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0017|     conducted such that the department of education shall issue
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0018|     educational coupons to each local school district.  Each local
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0019|     school district shall issue educational coupons to the parents
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0020|     of all students residing in the district.  Educational coupons
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0021|     shall be utilized at any public school.  Educational coupons
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0022|     may be redeemed at any public school outside a student's
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0023|     district-defined attendance area.  Educational coupons shall
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0024|     not be utilized by a student at any school within his district-
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0025|     defined attendance area.
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0001|               C.  The department of education shall establish
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0002|     procedures for the distribution and redemption of educational
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0003|     coupons."
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0004|          Section 4.  A new section of the Public School Code is
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0005|     enacted to read:
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0006|          "[<u>NEW MATERIAL</u>]  COUPONS--VALUE--PAYMENT.--The cash
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0007|     value of the educational coupon shall be equal to the sum of
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0008|     the product of the value of the program unit established by the
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0009|     state superintendent multiplied by the applicable cost
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0010|     differential factor and ten percent of that product."
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0011|          Section 5.  A new section of the Public School Code is
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0012|     enacted to read:
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0013|          "[<u>NEW MATERIAL</u>]  ADMISSIONS.--Each local school board
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0014|     may designate attendance areas for public schools located
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0015|     within the school district.  Students residing within the
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0016|     attendance area of a public school shall have the first
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0017|     opportunity to register to attend that school.  When
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0018|     registration of an attendance area's residents is complete, a
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0019|     public school with space available shall enroll other students
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0020|     residing within the district on a first-come, first-served
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0021|     basis.  After district residents have had an opportunity to
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0022|     register, schools with space available may enroll students
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0023|     residing outside the district.  No district shall deny its
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0024|     residents permission to attend school outside the district."
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0025|          Section 6.  A new section of the Public School Code is
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0001|     enacted to read:
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0002|          "[<u>NEW MATERIAL</u>]  PARTICIPATION.--Every public school
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0003|     shall be required to participate in the educational coupon
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0004|     program." 
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0005|          Section 7.  A new section of the Income Tax Act is enacted
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0006|     to read:
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0007|          "[<u>NEW MATERIAL</u>]  INCOME TAX CREDIT--PRIVATE SCHOOL
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0008|     TUITION.--
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0009|               A.  Any taxpayer who has not claimed an income tax
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0010|     private school tuition rebate, who is the parent or guardian of
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0011|     a child attending an accredited private school in New  Mexico
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0012|     and who files a New Mexico income tax return may claim a tax
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0013|     credit against his income tax liability in an amount equal to
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0014|     the number of children attending private schools multiplied by
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0015|     ninety percent of the unit value established in the applicable
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0016|     tax year.
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0017|               B.  The credit provided in Subsection A of this
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0018|     section may only be deducted from the taxpayer's income tax
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0019|     liability.
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0020|               C.  Any portion of the maximum tax credit provided
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0021|     by this section that remains unused at the end of the
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0022|     taxpayer's taxable year may be carried forward for five
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0023|     consecutive years.
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0024|               D.  A husband and wife who file separate returns for
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0025|     a taxable year in which they could have filed a joint return
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0001|     may each claim only one-half of the tax credit that would have
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0002|     been allowed on a joint return.
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0003|               E.  As used in this section:
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0004|                    (1)  "private school" means a school offering
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0005|     programs of instruction not under the control, supervision or
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0006|     management of a local school board, exclusive of home
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0007|     instruction, for kindergarten through the twelfth grade; and
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0008|                    (2)  "unit value" means that value determined
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0009|     by the superintendent of public instruction for the purpose of
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0010|     distributing the state equalization guarantee distribution."
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0011|          Section 8.  A new section of the Income Tax Act is enacted
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0012|     to read:
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0013|          "[<u>NEW MATERIAL</u>]  PRIVATE SCHOOL TUITION--TAX REBATE.--
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0014|               A.  Any resident who has not claimed an income tax
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0015|     private school tuition tax credit, who has a modified gross
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0016|     income of less than sixteen thousand dollars ($16,000) per
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0017|     year, who files an individual New Mexico income tax return and
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0018|     who is the parent or guardian of a child attending a private
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0019|     school in New Mexico may claim a tax rebate for the amount of
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0020|     private school tuition paid in an amount not to exceed ninety
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0021|     percent of the unit value established in the applicable tax
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0022|     year multiplied by the number of children attending private
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0023|     school.
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0024|               B.  The tax rebate provided for in this section may
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0025|     be deducted from the taxpayer's New Mexico income tax liability
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0001|     for the taxable year.  If the tax rebate exceeds the taxpayer's
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0002|     income tax liability, the excess shall be refunded to the
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0003|     taxpayer.
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0004|               C.  A husband and wife who file separate returns for
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0005|     a taxable year in which they could have filed a joint return
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0006|     may each claim only one-half of the tax rebate that would have
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0007|     been allowed on a joint return.
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0008|               D.  As used in this section:
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0009|                    (1)  "private school" means a school offering
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0010|     programs of instruction not under the control, supervision or
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0011|     management of a local school board, exclusive of home
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0012|     instruction, for kindergarten through the twelfth grade; and
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0013|                    (2)  "unit value" means that value determined
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0014|     by the superintendent of public instruction for the purpose of
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0015|     distributing the state equalization guarantee distribution."
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0016|          Section 9.  EFFECTIVE DATE.--The effective date of the
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0017|     provisions of this act is July 1, 1997.
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0018|                              
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