0001| SENATE BILL 840 | 0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0003| INTRODUCED BY | 0004| MANNY M. ARAGON | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO TELECOMMUNICATIONS; AUTHORIZING CERTAIN | 0012| GOVERNMENTAL UNITS TO ENTER INTO TELECOMMUNICATIONS SAVINGS | 0013| CONTRACTS; CREATING A FUND; PROVIDING POWERS AND DUTIES; | 0014| AMENDING AND ENACTING 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. [NEW MATERIAL] SHORT TITLE.--Sections 1 | 0019| through 9 of this act may be cited as the "Public | 0020| Telecommunications Consolidation Act". | 0021| Section 2. [NEW MATERIAL] DEFINITIONS.--As used in the | 0022| Public Telecommunications Consolidation Act: | 0023| A. "governmental unit" means an agency, institution | 0024| or instrumentality of the state; a municipality; a county; or a | 0025| school district; | 0001| B. "guaranteed telecommunications savings contract" | 0002| means a contract for the evaluation and recommendation of | 0003| telecommunications consolidation measures and for the | 0004| implementation of one or more of those measures, and which | 0005| contract provides that all payments, except obligations on | 0006| termination of the contract before its expiration, are to be | 0007| made over time and the savings are guaranteed to the extent | 0008| necessary to make the payments for the telecommunications | 0009| consolidation measures; | 0010| C. "qualified provider" means a person or business | 0011| experienced in the design, implementation and installation of | 0012| telecommunications consolidation measures and who meets the | 0013| experience qualifications developed by the general services | 0014| department; and | 0015| D. "telecommunications consolidation measure" means | 0016| a training program or facility alteration designed to reduce | 0017| operating costs and may include voice, data, video, networking, | 0018| long distance rates and other functions, including security | 0019| alarm, environmental controls and landscape controls. | 0020| Section 3. [NEW MATERIAL] TELECOMMUNICATIONS SAVINGS | 0021| CONTRACTS AUTHORIZED--GUARANTEE REQUIRED.-- | 0022| A. A governmental unit may enter into a guaranteed | 0023| telecommunications savings contract with a qualified provider | 0024| to reduce operating costs if, after review of the proposal from | 0025| the qualified provider, the governmental unit finds that: | 0001| (1) the amount the governmental unit would | 0002| spend on the telecommunications consolidation measures | 0003| recommended in the proposal is not likely to exceed the amount | 0004| to be saved in operational costs over ten years from the date | 0005| of installation if the recommendations in the proposal were | 0006| followed; and | 0007| (2) the qualified provider can provide a | 0008| written guarantee that the operating cost savings will meet or | 0009| exceed the costs of the system. | 0010| B. A guaranteed telecommunications savings contract | 0011| shall include a written guarantee from the qualified provider | 0012| that annual savings shall meet or exceed the cost of the | 0013| telecommunications consolidation measures. | 0014| C. A governmental unit may enter into an | 0015| installment payment contract or lease-purchase agreement for | 0016| the purchase and installation of telecommunications | 0017| consolidation measures pursuant to a guaranteed | 0018| telecommunications savings contract, but only in accordance | 0019| with the provisions of the Public Telecommunications | 0020| Consolidation Act. | 0021| Section 4. [NEW MATERIAL] GUARANTEED | 0022| TELECOMMUNICATIONS SAVINGS CONTRACT--PERFORMANCE BOND | 0023| REQUIRED.--No governmental unit shall enter into a guaranteed | 0024| telecommunications savings contract unless a performance bond | 0025| that meets the requirements of this section is delivered by the | 0001| qualified provider to the governmental unit and the bond | 0002| becomes binding on the parties upon the execution of the | 0003| contract. The qualified provider shall provide a performance | 0004| bond satisfactory to the governmental unit and its approving | 0005| agency executed by a surety company authorized to do business | 0006| in this state and approved by the state board of finance. The | 0007| bond shall be in an amount equal to the amount of the guarantee | 0008| given by the qualified provider in the guaranteed | 0009| telecommunications savings contract. | 0010| Section 5. [NEW MATERIAL] CONTRACT APPROVAL REQUIRED.- | 0011| - | 0012| A. No governmental unit shall enter into a | 0013| guaranteed telecommunications savings contract with a qualified | 0014| provider or any installment payment contract or lease-purchase | 0015| agreement pursuant to that contract, unless the contracts and | 0016| agreements are reviewed and approved as follows: | 0017| (1) for school districts, by the | 0018| superintendent of public instruction; | 0019| (2) for agencies, institutions and | 0020| instrumentalities of the state, by the secretary of general | 0021| services; and | 0022| (3) for municipalities and counties, by the | 0023| secretary of finance and administration. | 0024| B. The approval required under this section shall | 0025| be given upon a determination that the contracts and agreements | 0001| comply with the provisions of the Public Telecommunications | 0002| Consolidation Act and other applicable law and after review of | 0003| the governmental unit's budget and revenue sources. | 0004| Section 6. [NEW MATERIAL] CONTRACTS AND AGREEMENTS NOT | 0005| A GENERAL OBLIGATION OF THE GOVERNMENTAL UNIT.--Payment | 0006| obligations of a governmental unit pursuant to a guaranteed | 0007| telecommunications savings contract with a qualified provider | 0008| and any installment payment contract or lease-purchase | 0009| agreement pursuant to a guaranteed telecommunications savings | 0010| contract are not general obligations of the governmental unit | 0011| and are collectible only from revenues pledged for that | 0012| purpose. | 0013| Section 7. [NEW MATERIAL] PUBLIC SCHOOL | 0014| TELECOMMUNICATIONS CONSOLIDATION FUND CREATED--USE.-- | 0015| A. The "public school telecommunications | 0016| consolidation fund" is created as a special fund in the state | 0017| treasury. The fund shall consist of money transferred to the | 0018| fund, from year to year, from the income of the permanent fund | 0019| and land income of which the common schools are the | 0020| beneficiary. No other money from any school district or state | 0021| source shall be deposited or paid into the public school | 0022| telecommunications consolidation fund. | 0023| B. Annually, after the calculation of the state | 0024| equalization guarantee distributions has been made, the | 0025| superintendent of public instruction shall determine the sum of | 0001| the deductions made in the state equalization guarantee | 0002| distributions of school districts pursuant to Paragraph (6) of | 0003| Subsection D of Section 22-8-25 NMSA 1978 and shall certify | 0004| that amount to the secretary of finance and administration. | 0005| Income from the permanent fund and land income of which the | 0006| common schools are the beneficiary equal to that amount shall | 0007| be transferred from the common school current fund to the | 0008| public school telecommunications consolidation fund. | 0009| C. Money in the public school telecommunications | 0010| consolidation fund is appropriated to the state department of | 0011| public education solely for the purpose of disbursing money to | 0012| school districts to make payments pursuant to any guaranteed | 0013| telecommunications savings contract between the school district | 0014| and a qualified provider or any installment contract or lease- | 0015| purchase agreement for the purchase and installation of | 0016| telecommunications consolidation measures pursuant to that | 0017| guaranteed telecommunications savings contract. | 0018| D. Disbursements from the public school | 0019| telecommunications consolidation fund shall be made only to | 0020| school districts and only upon certification by the | 0021| superintendent of public instruction that the disbursement is | 0022| for a payment authorized by the Public Telecommunications | 0023| Consolidation Act. | 0024| E. The superintendent of public instruction shall | 0025| submit to the legislative finance committee prior to each | 0001| regular legislative session a list of school districts | 0002| proposing to enter into approved guaranteed telecommunications | 0003| savings contracts in the succeeding fiscal year. The list | 0004| shall include information on the amount of the school | 0005| district's proposed annual payments and specific amounts that | 0006| utility and operational budget items are guaranteed to be | 0007| reduced to achieve the savings to make the payments. | 0008| F. Any unexpended or unencumbered balance remaining | 0009| in the public school telecommunications consolidation fund at | 0010| the end of any fiscal year shall be transferred to the public | 0011| school fund. | 0012| Section 8. [NEW MATERIAL] MUNICIPALITIES--USE OF | 0013| CERTAIN REVENUES AUTHORIZED.--Upon adoption of an ordinance by | 0014| an affirmative vote of a majority of the members of the | 0015| governing body at any regular or special meeting of the | 0016| governing body called for that purpose, a municipality may | 0017| pledge any or all revenues not otherwise pledged or obligated | 0018| from gross receipts taxes received by the municipality pursuant | 0019| to Sections 7-1-6.4 and 7-1-6.12 NMSA 1978 for payments | 0020| pursuant to a guaranteed telecommunications savings contract | 0021| with a qualified provider and any installment payment contract | 0022| or lease-purchase agreement pursuant to that guaranteed | 0023| telecommunications savings contract. The ordinance shall | 0024| declare the necessity for the guaranteed telecommunications | 0025| savings contract and related contracts or agreements and shall | 0001| designate the source of the pledged revenues. Revenues pledged | 0002| for such contract payments shall be deposited in a special | 0003| fund, and the municipality shall not use any other revenues to | 0004| make such payments. At the end of each fiscal year, any money | 0005| remaining in the special fund after payment obligations are met | 0006| may be transferred to any other fund of the municipality. | 0007| Section 9. [NEW MATERIAL] COUNTIES--USE OF CERTAIN | 0008| REVENUES AUTHORIZED.--Upon adoption of an ordinance by an | 0009| affirmative vote of a majority of the members of the board of | 0010| county commissioners at any regular or special meeting of the | 0011| board called for that purpose, a county may pledge any or all | 0012| of the revenue not otherwise pledged or obligated from the | 0013| first one-eighth of one percent increment and of one-half of | 0014| the revenue from the third one-eighth of one percent increment | 0015| of the county gross receipts tax transferred to the county | 0016| pursuant to Section 7-1-6.13 NMSA 1978 and any or all of the | 0017| revenue from the distribution related to the first one-eighth | 0018| of one percent increment made pursuant to Section 7-1-6.16 NMSA | 0019| 1978 for the purpose of making payments pursuant to a | 0020| guaranteed telecommunications savings contract with a qualified | 0021| provider or any installment payment contract or lease-purchase | 0022| agreement pursuant to that guaranteed telecommunications | 0023| savings contract. The ordinance shall declare the necessity | 0024| for the guaranteed telecommunications savings contract and | 0025| related contracts or agreements and shall designate the source | 0001| of the pledged revenues. Any revenues pledged for such | 0002| contract payments shall be deposited in a special fund, and the | 0003| county shall not use any other county or state revenue to make | 0004| such payments. At the end of each fiscal year, any money | 0005| remaining in the special fund after the payment obligations are | 0006| met may be transferred to any other fund of the county. | 0007| Section 10. Section 6-6-12 NMSA 1978 (being Laws 1968, | 0008| Chapter 72, Section 8, as amended) is amended to read: | 0009| "6-6-12. EXEMPTIONS FROM BATEMAN ACT.--Insurance | 0010| contracts not exceeding five years, lease-purchase agreements, | 0011| lease agreements, contracts providing for the operation or | 0012| provision and operation of a jail by an independent contractor | 0013| entered into by a local public body set out in Section 6-6-11 | 0014| NMSA 1978, [and] guaranteed energy savings contracts and | 0015| installment payment contracts or lease-purchase agreements | 0016| pursuant to guaranteed energy savings contracts and guaranteed | 0017| telecommunications savings contracts and installments payment | 0018| contracts or lease-purchase agreements pursuant to guaranteed | 0019| telecommunications savings contracts are exempt from the | 0020| provisions of Section 6-6-11 NMSA 1978, and such contracts, | 0021| lease-purchase agreements, lease agreements and jail contracts | 0022| are declared not to constitute the creation of debt." | 0023| Section 11. Section 13-1-139 NMSA 1978 (being Laws 1984, | 0024| Chapter 65, Section 112, as amended) is amended to read: | 0025| "13-1-139. COST OR PRICING DATA NOT REQUIRED.--The cost | 0001| or pricing data relating to the award of a contract shall not | 0002| be required when: | 0003| A. the procurement is based on competitive sealed | 0004| bid; | 0005| B. the contract price is based on established | 0006| catalogue prices or market prices; | 0007| C. the contract price is set by law or regulation; | 0008| D. the contract is for professional services; | 0009| [or] | 0010| E. the contract is awarded pursuant to the Public | 0011| Building Energy Efficiency Act; or | 0012| F. the contract is awarded pursuant to the Public | 0013| Telecommunications Consolidation Act." | 0014| Section 12. Section 13-1-150 NMSA 1978 (being Laws 1984, | 0015| Chapter 65, Section 123, as amended by Laws 1993, Chapter 225, | 0016| Section 1 and also by Laws 1993, Chapter 231, Section 13) is | 0017| amended to read: | 0018| "13-1-150. MULTI-TERM CONTRACTS--SPECIFIED PERIOD.--A | 0019| multi-term contract for items of tangible personal property, | 0020| construction or services except for professional services, in | 0021| an amount under twenty-five thousand dollars ($25,000), may be | 0022| entered into for any period of time deemed to be in the best | 0023| interests of the state agency or a local public body not to | 0024| exceed four years; provided that the term of the contract and | 0025| conditions of renewal or extension, if any, are included in the | 0001| specifications and funds are available for the first fiscal | 0002| period at the time of contracting. If the amount of the | 0003| contract is twenty-five thousand dollars ($25,000) or more, the | 0004| term shall not exceed eight years, including all extensions and | 0005| renewals, except that for any such contract entered into | 0006| pursuant to the Public Building Energy Efficiency Act or the | 0007| Public Telecommunications Consolidation Act, the term shall | 0008| not exceed ten years, including all extensions and renewals. | 0009| Payment and performance obligations for succeeding fiscal | 0010| periods shall be subject to the availability and appropriation | 0011| of funds [therefore] therefor. A contract for professional | 0012| services, except for services required to support or operate | 0013| federally certified medicaid, financial assistance and child | 0014| support enforcement management information or payment systems, | 0015| may not exceed a term of four years, including all extensions | 0016| and renewals, except that a multi-term contract for the | 0017| services of trustees, escrow agents, registrars, paying agents, | 0018| letter of credit issuers and other forms of credit enhancement | 0019| and other similar services, excluding bond attorneys, | 0020| underwriters and financial advisors with regard to the | 0021| issuance, sale and delivery of public securities, may be for | 0022| the life of the securities or as long as the securities remain | 0023| outstanding." | 0024| Section 13. Section 22-8-25 NMSA 1978 (being Laws 1981, | 0025| Chapter 176, Section 5, as amended by Laws 1993, Chapter 226, | 0001| Section 23 and also by Laws 1993, Chapter 231, Section 14) is | 0002| amended to read: | 0003| "22-8-25. STATE EQUALIZATION GUARANTEE DISTRIBUTION-- | 0004| DEFINITIONS--DETERMINATION OF AMOUNT.-- | 0005| A. The state equalization guarantee distribution is | 0006| that amount of money distributed to each school district to | 0007| ensure that the school district's operating revenue, including | 0008| its local and federal revenues as defined in this section, is | 0009| at least equal to the school district's program cost. | 0010| B. "Local revenue", as used in this section, means | 0011| ninety-five percent of receipts to the school district derived | 0012| from that amount produced by a school district property tax | 0013| applied at the rate of fifty cents ($.50) to each one thousand | 0014| dollars ($1,000) of net taxable value of property allocated to | 0015| the school district and to the assessed value of products | 0016| severed and sold in the school district as determined under the | 0017| Oil and Gas Ad Valorem Production Tax Act and upon the assessed | 0018| value of equipment in the school district as determined under | 0019| the Oil and Gas Production Equipment Ad Valorem Tax Act. | 0020| C. "Federal revenue", as used in this section, | 0021| means ninety-five percent of receipts to the school district, | 0022| excluding amounts [which] that, if taken into account in | 0023| the computation of the state equalization guarantee | 0024| distribution, result, under federal law or regulations, in a | 0025| reduction in or elimination of federal school funding otherwise | 0001| receivable by the school district, derived from the following: | 0002| (1) the school district's share of forest | 0003| reserve funds distributed in accordance with Section 22-8-33 | 0004| NMSA 1978; and | 0005| (2) grants from the federal government as | 0006| assistance to those areas affected by federal activity | 0007| authorized in accordance with Sections 236 through 240 of Title | 0008| 20 of the United States Code (commonly known as "PL 874 funds") | 0009| or an amount equal to the revenue the district was entitled to | 0010| receive if no application was made for such funds but deducting | 0011| from those grants the additional amounts to which school | 0012| districts would be entitled because of the provisions of | 0013| Subparagraph (D) of Paragraph (2) of Subsection (d) of Section | 0014| 238 of Title 20 of the United States Code. | 0015| D. To determine the amount of the state | 0016| equalization guarantee distribution, the state superintendent | 0017| shall: | 0018| (1) calculate the number of program units to | 0019| which each school district is entitled using the membership of | 0020| the fortieth day of the school year, except for school | 0021| districts with a MEM of [200] two hundred or less where the | 0022| number of program units shall be calculated on the fortieth day | 0023| membership of either the prior year or the current year, | 0024| whichever is greater, for all programs except special | 0025| education, which shall be calculated by using the membership on | 0001| December 1 of the school year; or | 0002| (2) calculate the number of program units to | 0003| which a school district operating under an approved [year- | 0004| round] variable school calendar is entitled using the | 0005| membership on an appropriate date established by the state | 0006| board; | 0007| (3) using the results of the calculations in | 0008| Paragraph (1) or (2) of this subsection and the instructional | 0009| staff training and experience index from the October report of | 0010| the prior school year, establish a total program cost of the | 0011| school district; | 0012| (4) calculate the local and federal revenues | 0013| as defined in this section; | 0014| (5) deduct the sum of the calculations made in | 0015| Paragraph (4) of this subsection from the program cost | 0016| established in Paragraph (3) of this subsection; and | 0017| (6) deduct the total amount of guaranteed | 0018| energy savings contract payments and guaranteed | 0019| telecommunications savings contract payments that the state | 0020| superintendent determines will be made to the school district | 0021| from the public school energy efficiency fund and the public | 0022| school telecommunications consolidation fund during the fiscal | 0023| year for which the state equalization guarantee distribution is | 0024| being computed. | 0025| E. The amount of the state equalization guarantee | 0001| distribution to which a school district is entitled is the | 0002| balance remaining after the deductions made in Paragraphs (5) | 0003| and (6) of Subsection D of this section. | 0004| F. The state equalization guarantee distribution | 0005| shall be distributed prior to June 30 of each fiscal year. The | 0006| calculation shall be based on the local and federal revenues | 0007| specified in this section received from June 1 of the previous | 0008| fiscal year through May 31 of the fiscal year for which the | 0009| state equalization guarantee distribution is being computed. | 0010| In the event that a district has received more state | 0011| equalization guarantee funds than its entitlement, a refund | 0012| shall be made by the district to the state general fund. | 0013| G. Notwithstanding the methods of calculating the | 0014| state equalization guarantee distribution in this section and | 0015| Laws 1974, Chapter 8, Section 22, if a school district received | 0016| funds under Section 2391 of Title 42 USCA and if the federal | 0017| government takes into consideration grants authorized by | 0018| Sections 236 through 240 of Title 20 of the United States Code | 0019| and all other revenues available to the school district in | 0020| determining the level of federal support for the school | 0021| district for the sixty-fourth and succeeding fiscal years, the | 0022| state equalization guarantee distribution for school districts | 0023| receiving funds under this subsection shall be computed as | 0024| follows: | 0025| fiscal year program cost prior fiscal year | 0001| excluding special education state equalization | 0002| for the year for which the x guarantee | 0003| distribution | 0004| state equalization guarantee excluding special | 0005| distribution is being computed education | 0006| prior fiscal year program cost | 0007| excluding special education | 0008| | 0009| | 0010| plus special education funding in accordance with Paragraphs | 0011| (1) or (2) and (3) of Subsection D of this section and Section | 0012| 22-8-21 NMSA 1978 plus an amount that would be produced by | 0013| applying a rate of eight dollars forty-two and one-half cents | 0014| ($8.425) to each one thousand dollars ($1,000) of net taxable | 0015| value of property as defined in the Property Tax Code for | 0016| property taxation purposes in the school district and to each | 0017| one thousand dollars ($1,000) of the assessed value of products | 0018| severed and sold in the school district as determined under the | 0019| Oil and Gas Ad Valorem Production Tax Act and upon the assessed | 0020| value of equipment in the school district as determined under | 0021| the Oil and Gas Production Equipment Ad Valorem Tax Act and | 0022| then reduced by the total amount of guaranteed energy savings | 0023| contract payments and guaranteed telecommunications savings | 0024| contract payments, if any, that the state superintendent | 0025| determines will be made to the school district from the public | 0001| school energy efficiency fund and the public school | 0002| telecommunications consolidation fund during the fiscal year | 0003| for which the state equalization guarantee distribution is | 0004| being computed, equals the fiscal year state equalization | 0005| guarantee distribution for the year for which the state | 0006| equalization guarantee distribution is being computed. | 0007| If at any time grants from the federal government as | 0008| assistance to those areas affected by federal activity | 0009| authorized in accordance with Sections 236 through 240 of Title | 0010| 20 of the United States Code (commonly known as "PL 874 funds") | 0011| are reduced or are no longer available, the state equalization | 0012| guarantee distribution shall be computed by the formula | 0013| contained in this subsection plus an increase by fifty percent | 0014| of the amount the prior year's PL 874 funds exceed PL 874 funds | 0015| for the year for which the state equalization guarantee | 0016| distribution is being computed." | 0017|  | 0018| | 0019| FORTY-THIRD LEGISLATURE HB 840/a | 0020| FIRST SESSION, 1997 | 0021| | 0022| | 0023| March 19, 1997 | 0024| | 0025| Mr. President: | 0001| | 0002| Your FINANCE COMMITTEE, to whom has been referred | 0003| | 0004| HOUSE BILL 840, as amended | 0005| | 0006| has had it under consideration and reports same with | 0007| recommendation that it DO PASS, amended as follows: | 0008| | 0009| 1. Strike House Appropriations and Finance Committee | 0010| Amendment 1. | 0011| | 0012| 2. On page 1, lines 16 and 17, strike "Eight hundred ten | 0013| thousand dollars ($810,000) is appropriated from the general | 0014| fund" and insert in lieu thereof: | 0015| | 0016| "Five hundred seventy thousand dollars ($570,000) is appropriated | 0017| from the unexpended and unencumbered balances of the legislative | 0018| council service remaining from the appropriation for session | 0019| expenses authorized in Subsections B, D, F and H of Section 2 of | 0020| Chapter 1 of Laws 1995 and Subsections B, D, G and H of Section 2 | 0021| of Chapter 1 of Laws 1996". | 0022| | 0023| 3. On page 1, line 19, after "system" strike the remainder | 0024| of the line, strike all of lines 20 and 21 and strike line 22 | 0025| through the semicolon. | 0001| | 0002| 4. On page 1, line 23, strike "; and" and insert in lieu | 0003| thereof a comma. | 0004| | 0005| 5. On page 2, strike all of line 1, strike line 2 through | 0006| the period and insert in lieu thereof: | 0007| | 0008| ", other communications applications and limited upgrades and | 0009| replacements to internal systems for the legislative council | 0010| service, the legislative education study committee, the | 0011| legislative finance committee, the house of representatives and | 0012| the senate.". | 0013| | 0014| | 0015| | 0016| | 0017| | 0018| | 0019| | 0020| | 0021| Respectfully submitted, | 0022| | 0023| | 0024| | 0025| | 0001| __________________________________ | 0002| Ben D. Altamirano, Chairman | 0003| | 0004| | 0005| | 0006| Adopted_______________________ Not | 0007| Adopted_______________________ | 0008| (Chief Clerk) (Chief Clerk) | 0009| | 0010| | 0011| Date ________________________ | 0012| | 0013| | 0014| The roll call vote was 6 For 0 Against | 0015| Yes: 6 | 0016| No: None | 0017| Excused: Carraro, Eisenstadt, Ingle, Lyons, McKibben | 0018| Absent: None | 0019| | 0020| | 0021| S0840FC1 .119233.1 | 0022| |