0001|              SENATE EDUCATION COMMITTEE SUBSTITUTE FOR
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0002|                            SENATE BILL 60
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0003|     43rd legislature - STATE OF NEW MEXICO - second session, 1998
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0004|                                   
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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|     
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0011|                                AN ACT
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0012|     RELATING TO EDUCATION; CHANGING THE ESTABLISHMENT OF CHARTER
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0013|     SCHOOLS; DEFINING THE DUTIES AND POWERS OF CHARTER SCHOOLS;
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0014|     PROVIDING FOR EDUCATIONAL RETIREMENT COVERAGE FOR EMPLOYEES OF
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0015|     CHARTER SCHOOLS; ESTABLISHING THE CHARTER SCHOOLS STIMULUS
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0016|     FUND; AMENDING, REPEALING AND ENACTING SECTIONS OF THE NMSA
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0017|     1978; MAKING AN APPROPRIATION.
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0018|     
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0019|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0020|          Section 1.  Section 22-8A-1 NMSA 1978 (being Laws 1993,
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0021|     Chapter 227, Section 1) is amended to read:
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0022|          "22-8A-1.  SHORT TITLE.--[Sections 1 through 7 of this
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0023|     act] Chapter 22, Article 8A NMSA 1978 may be cited as the
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0024|     "Charter Schools Act"."
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0025|          Section 2.  Section 22-8A-2 NMSA 1978 (being Laws 1993,
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<center>- 1 -</center>0001|     Chapter 227, Section 2) is amended to read:
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0002|          "22-8A-2.  DEFINITIONS.--As used in the Charter Schools
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0003|     Act:
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0004|               A.  "charter school" means an individual school
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0005|     within a school district, authorized by the state board or by
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0006|     a local school board to develop and implement an alternative
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0007|     educational curriculum and authorized by law to develop and
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0008|     utilize a school-based budget; [and]
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0009|               B.  "governing board" means the governing structure
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0010|     stated in the charter of a charter school with administrative
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0011|     and financial authority;
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0012|               C.  "person" means an individual; and
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0013|               [B.] D.  "state board" means the state board of
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0014|     education."
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0015|          Section 3.  Section 22-8A-3 NMSA 1978 (being Laws 1993,
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0016|     Chapter 227, Section 3) is amended to read:
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0017|          "22-8A-3.  PURPOSE.--The purpose of the Charter Schools
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0018|     Act is to [enable individual schools to restructure their
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0019|     educational curriculum to encourage the use of different and
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0020|     innovative teaching methods and to enable individual schools
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0021|     to be responsible for site-based budgeting and expenditures]  
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0022|     employ innovative strategies and proven methods for student
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0023|     learning, teaching and school management that are based on
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0024|     reliable research and effective practices; have been
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0025|     replicated successfully in schools with diverse
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<center>- 2 -</center>0001|     characteristics; and have a comprehensive design for effective
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0002|     school functioning, including instruction, assessment, classroom
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0003|     management, professional development, parental involvement and
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0004|     school management."
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0005|          Section 4.  A new section of the Charter Schools Act is
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0006|     enacted to read:
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0007|          "[NEW MATERIAL] PROPOSAL--AUTHORIZATION.--   
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0008|               A.  A proposal for a new charter school may be made by
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0009|     a person, teacher or parent.
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0010|               B.  The state board and the local school board have
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0011|     the authority to approve charter schools.
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0012|               C.  A charter school applicant may apply to the state
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0013|     board or to a local school board for a charter.  Applications
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0014|     must be filed by October 1 to be eligible for consideration for
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0015|     the following school year.
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0016|               D.  When the state board or a local school board
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0017|     receives an application for a charter school, it shall review the
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0018|     application for a charter school and must, by majority vote,
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0019|     approve or deny an application and grant the charter no later
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0020|     than sixty days after receipt of the application. 
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0021|               E.  An application, made to a local school board, 
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0022|     proposing to convert an existing public school into a charter
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0023|     school shall demonstrate the support of at least sixty-five
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0024|     percent of the teachers employed at the school and the support of
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0025|     at least sixty-five  percent of the parents whose children are
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<center>- 3 -</center>0001|     enrolled at the school.
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0002|               F.  Upon approval of a charter application, the
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0003|     initial start-up must be consistent with the beginning of the
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0004|     school year.
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0005|               G.  The state board may authorize the existence of no
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0006|     more than ten charter schools per year in addition to those
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0007|     approved on appeal from a local school board.  The state board by
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0008|     majority vote may authorize the existence of more than ten
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0009|     charter schools per year.
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0010|               H.  A charter school may be terminated for failure to
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0011|     meet its performance objectives before the expiration of its
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0012|     term.
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0013|               I.  The state board and a local school board shall not
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0014|     authorize additional charter schools on or after June 30, 2008. 
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0015|     Charter schools authorized before June 30, 2008 may have their
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0016|     charters extended by agreement between the charter schools and
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0017|     the state board or a local school board."
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0018|          Section 5.  A new section of the Charter Schools Act is
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0019|     enacted to read:
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0020|          "[NEW MATERIAL] APPEAL OF LOCAL SCHOOL BOARD DECISIONS.--
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0021|               A.  An applicant or any other person may appeal any
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0022|     denial, conditional approval, nonrenewal or revocation of an
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0023|     application by the local school board to the state board no later
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0024|     than thirty days after the issuance of the local school board's
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0025|     decision.  The appeal and review process by the state board shall
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<center>- 4 -</center>0001|     be held within sixty days of receipt of the notice of appeal and,
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0002|     after reasonable public notice, the state board, at a public
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0003|     hearing that may be held in the school district in which the
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0004|     proposed charter school has applied for a charter, shall review

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0005|     the decision of the local school board and make its findings.
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0006|               B.  If the state board finds that the local school
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0007|     board's decision was contrary to the best interests of the
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0008|     students, school district or community, the state board shall
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0009|     approve the charter or remand the decision to the local school
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0010|     board with written instructions for reconsideration that shall
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0011|     include specific recommendations.
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0012|               C.  Within thirty days following the remand of a
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0013|     decision to the local school board and after reasonable public
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0014|     notice, the local school board, at a public hearing, shall
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0015|     reconsider its decision using the specific recommendations
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0016|     provided by the state board and decide whether to approve the
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0017|     charter.
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0018|               D.  If the local school board again denies, refuses to
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0019|     renew or revokes a charter or unilaterally imposes conditions
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0020|     unacceptable to the charter school or the charter applicant, a
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0021|     second notice of appeal may be filed with the state board within
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0022|     thirty days following the issuance of the local school board's
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0023|     final decision.
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0024|               E.  Within thirty days following receipt of the second
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0025|     notice of appeal and after reasonable public notice, the state
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<center>- 5 -</center>0001|     board, at a public hearing, shall determine whether the final
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0002|     decision of the local school board was contrary to the best
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0003|     interests of the students, school district or community.
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0004|               F.  If the state board finds that the local school
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0005|     board's decision is contrary to the best interests of the
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0006|     students, school district or community, the state board shall
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0007|     approve the charter.  The decision of the state board shall be
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0008|     final and not subject to further appeal."
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0009|          Section 6.  A new section of the Charter Schools Act is
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0010|     enacted to read:
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0011|          "[NEW MATERIAL] APPEAL OF STATE BOARD DECISIONS.--
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0012|               A.  If the state board denies, conditionally approves,
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0013|     does not renew or revokes an application that was made directly
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0014|     to the state board, the state board shall provide a written
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0015|     explanation of the denial, conditional approval, nonrenewal or
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0016|     revocation and recommendations for revision of the application.
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0017|               B.  The applicant may resubmit or request
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0018|     reconsideration of its application or a revised application to
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0019|     the state board within sixty days after receipt of the denial,
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0020|     conditional approval, nonrenewal or revocation.
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0021|               C.  No later than thirty days after receipt of the
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0022|     resubmission or request for reconsideration, the state board,
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0023|     after reasonable public notice, shall hold a public hearing and
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0024|     shall approve or disapprove the charter. 
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0025|               D.  If an application has not previously been
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<center>- 6 -</center>0001|     submitted and considered by a local school board and the state
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0002|     board denies, conditionally approves, does not renew or revokes
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0003|     it, the applicant may submit the application to a local school
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0004|     board for approval."
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0005|          Section 7.  A new section of the Charter Schools Act is
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0006|     enacted to read:
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0007|          "[NEW MATERIAL] ELIGIBLE STUDENTS.--
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0008|               A.  A charter school shall enroll all eligible
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0009|     students who are residents of New Mexico and who submit a timely
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0010|     application, unless the number of applications exceeds the
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0011|     capacity of a program, class, grade level or building.  In that
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0012|     case, all applicants shall be admitted in the order in which
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0013|     their completed applications were received, unless the school
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0014|     district and the charter school agree otherwise and state it in
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0015|     the charter. 
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0016|               B.  A charter school may limit the enrollment process
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0017|     only to target the following student populations:
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0018|                    (1)  students within specific age groups or
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0019|     grade levels; or
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0020|                    (2)  students considered at risk of academic
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0021|     failure, including those with scores in the lower quartiles on
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0022|     the reading and mathematics sections of state tests or a grade
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0023|     point average below 2.0 for grades nine through twelve."
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0024|          Section 8.  A new section of the Charter Schools Act is
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0025|     enacted to read:
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<center>- 7 -</center>0001|          "[NEW MATERIAL] PUBLIC STATUS--ACCREDITATION--RULES.--
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0002|               A.  A charter school shall be a public school and is
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0003|     part of the state's system of public education.
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0004|               B.  A charter school shall be nonsectarian in its
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0005|     programs, admissions policies, employment practices and
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0006|     operations and shall have no religious affiliation.
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0007|               C.  A charter school that is approved by the local
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0008|     school board shall be accountable to the local school board for
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0009|     meeting the performance goals agreed upon in its charter.  A
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0010|     charter school that is approved by the state board shall be
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0011|     accountable to the state board for meeting the performance goals
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0012|     agreed upon in its charter.
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0013|               D.  A charter school shall not charge tuition or fees,
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0014|     except those fees normally charged by other public schools.  A
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0015|     charter school may accept gifts, donations or grants of any kind
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0016|     and spend the funds under conditions prescribed by the donor,
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0017|     unless the gift, donation or grant is subject to any condition
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0018|     contrary to law or to the terms of the contract between the
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0019|     charter school and the local school board         
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0020|               E.  A charter school shall comply with rules
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0021|     promulgated by the state department of public education and by
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0022|     the children, youth and families department that deal with
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0023|     health, safety and civil rights.  A charter school shall not be
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0024|     required to comply with other rules that apply to other public
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0025|     schools, local school boards or school districts.
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<center>- 8 -</center>0001|               F.  A charter school shall have an annual financial
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0002|     audit by an independent accounting firm, which shall be conducted
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0003|     in accordance with generally accepted accounting principles.
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0004|                    G.  A charter school shall ensure that transportation
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0005|     is not a barrier to equal access for all students residing within
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0006|     the attendance area as defined in its charter.
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0007|               H.  Transportation costs of students in grades
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0008|     kindergarten through twelve attending a charter school and
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0009|     residing in the defined attendance area for that school and of
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0010|     three- and four-year-old children who meet the state board
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0011|     approved criteria and definition of developmentally disabled
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0012|     shall be included in any and all reports, submissions and
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0013|     calculations by the charter school to the state transportation
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0014|     director and the superintendent of public instruction for the
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0015|     purpose of developing an appropriate transportation system for
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0016|     the charter school and receiving payments from the transportation
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0017|     distribution of the public school fund as provided in Sections
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0018|     22-8-26 through 22-8-30 NMSA 1978 and Sections 22-16-1 through
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0019|     22-16-11 NMSA 1978.  
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0020|               I.  A charter school may contract with the school
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0021|     district to participate in the school district transportation
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0022|     system.
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0023|               J.  If the local school board is providing programs or
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0024|     services to students funded by federal funds, an eligible student
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0025|     enrolled in a charter school in that school district shall be
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<center>- 9 -</center>0001|     provided federal funds for the same level of service provided to
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0002|     a student in other public schools operated by the local school
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0003|     board.
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0004|               K.  Any administrative fee charged by the school
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0005|     district relating to a charter school shall be limited to no more
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0006|     than the actual cost of administering the contract between the
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0007|     charter school and the school district or five percent of the
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0008|     state equalization guarantee distribution for students attending
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0009|     the charter school, whichever is less. 
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0010|               L.  One hundred percent of all federal funds, other
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0011|     state funds, gifts, donations or other funds for which the
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0012|     charter school or students attending the charter school are
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0013|     eligible shall be received and administered by the charter
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0014|     school, which may contract with a school district to administer
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0015|     these funds.  
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0016|               M.  A charter school may contract with a school
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0017|     district to provide other administrative, educational or support
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0018|     services, including personnel and benefits management, financial
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0019|     management and maintenance.
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0020|               N.  A charter school shall comply with the provisions
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0021|     of Section 22-1-6 NMSA 1978.
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0022|               O.  A charter school shall be accredited by the state
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0023|     board.  
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0024|               P.  A charter school that has been in existence fewer
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0025|     than two academic years must apply for accreditation upon
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<center>- 10 -</center>0001|     approval of its charter and acceptance of students with an
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0002|     anticipated date of accreditation of not later than the end of
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0003|     the second academic year during which the school has accepted
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0004|     students.  
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0005|               Q.  A charter school may request a waiver of the state
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0006|     department of public education accreditation standards from the
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0007|     state board.  The state board must have good cause to deny the
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0008|     request.
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0009|               R.  Charter schools shall not be used as a method of
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0010|     providing education or generating revenue for students who are
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0011|     being home schooled, except that parents who home school their
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0012|     children shall not be prohibited from participation in the
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0013|     formation of or enrolling their children in charter schools in
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0014|     accordance with the Charter Schools Act.
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0015|               S.  Academic credits earned by a student at a charter
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0016|     school shall be transferable to a public school. 
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0017|               T.  A charter school is a legal entity and may
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0018|     contract, sue or be sued.
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0019|               U.  A charter school shall comply with the provisions
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0020|     of Section 22-10-3.3 NMSA 1978."
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0021|          Section 9.  A new section of the Charter Schools Act is
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0022|     enacted to read:
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0023|          "[NEW MATERIAL] CREATION OF THE CHARTER.--
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0024|               A.  The charter shall contain a list of the major
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0025|     issues that will face the proposed charter school. 
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<center>- 11 -</center>0001|               B.  The charter shall be signed by the governing body
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0002|     of the charter school and the chartering authority, following a
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0003|     public hearing to ensure community input.
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0004|               C.  The charter shall address the following criteria
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0005|     for approval:
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0006|                    (1)  the charter school's mission;
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0007|                    (2)  a description of the student population
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0008|     that will be served, including the ages and grades of the
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0009|     students;
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0010|                    (3)  a comprehensive plan for implementing an

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0011|     alternative educational curriculum at the school, including a
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0012|     description of the charter school's educational program;
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0013|     mechanisms to ensure that effective school characteristics are
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0014|     present, promoted and improved upon; student performance
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0015|     standards of achievement and the method of measurement that will
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0016|     be used; and student assessment tools to identify educational
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0017|     strengths and needs;
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0018|                    (4)  evidence that an adequate number of
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0019|     parents, teachers or pupils support the formation of a charter
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0020|     school; and
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0021|                    (5)  a detailed description of the proposed
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0022|     governance structure of the charter school, including:
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0023|                         (a)  the structure of the governing body of
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0024|     the charter school, which must include the direct involvement of
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0025|     the parents of students enrolled in the school, educational
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<center>- 12 -</center>0001|     professionals employed in the school and the community at large; 
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0002|                         (b)  methods for resolving disputes between
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0003|     the governing body and the school district;
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0004|                         (c)  admissions procedures and dismissal
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0005|     procedures;
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0006|                         (d)  documentation that a charter school
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0007|     will provide group health insurance and other risk-related
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0008|     coverage pursuant to the Public School Insurance Authority Act;
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0009|                         (e)  a detailed description of the
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0010|     financial and administrative management of the school;
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0011|                         (f)  the term of the charter, including
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0012|     provisions for cancellation of the charter if insufficient
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0013|     progress has been made in attaining the student achievement
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0014|     objectives and if it is not likely that such objectives can be
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0015|     met before expiration of the charter or if other provisions of
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0016|     the Charter Schools Act have not been met;
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0017|                         (g)  a description of facilities intended
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0018|     to be used and their location;
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0019|                         (h)  a detailed description of the
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0020|     qualifications to be required of the teachers;
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0021|                         (i)  a timetable for implementing the
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0022|     charter; and
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0023|                         (j)  a detailed description of the
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0024|     alternative arrangements for students and teachers enrolled or
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0025|     employed in an existing public school that is converting to a
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<center>- 13 -</center>0001|     charter school if they do not choose to attend or teach in the
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0002|     charter school.
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0003|               D.  A charter may be renewed in increments of five,
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0004|     seven or ten years by mutual agreement of the parties.
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0005|               E.  A charter may be modified or amended with the
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0006|     approval of both parties to the agreement."
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0007|          Section 10.  A new section of the Charter Schools Act is
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0008|     enacted to read: 
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0009|          "[NEW MATERIAL] FINANCING.--
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0010|               A.  The amount of state support that follows the
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0011|     eligible student to a charter school shall be computed by
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0012|     applying the equalization formula components pursuant to the
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0013|     Public School Finance Act, including the size adjustment for the
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0014|     school district and school in which the student enrolls.
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0015|               B.  Money shall be distributed through the state
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0016|     department of public education in the school districts to the
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0017|     charter schools."
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0018|          Section 11.  A new section of the Charter Schools Act is
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0019|     enacted to read:
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0020|          "[NEW MATERIAL] HIRING PRACTICES--EMPLOYEES.--
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0021|               A.  A charter school shall hire its own employees. 
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0022|               B.  A person who is employed by a charter school and
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0023|     who was previously an employee at a school within a district that
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0024|     becomes a charter school shall be considered to be on a leave of
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0025|     absence from the school district.  The leave of absence shall
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<center>- 14 -</center>0001|     commence on the initial date of employment for the charter
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0002|     school.  The agreement to grant a leave of absence shall be
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0003|     granted absent good cause.  
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0004|               C.  During the period of time that an employee is on a
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0005|     leave of absence from the school district and is actively
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0006|     employed by the charter school, the employee shall retain with
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0007|     the school district all benefits accrued on the basis of years of
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0008|     service.  Upon return to active service with the school district,
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0009|     the employee shall be placed on the salary schedule as if there
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0010|     was no break in service.
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0011|               D.  A leave of absence shall not be considered a break
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0012|     in service with the school district with which the employee was
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0013|     previously employed.
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0014|               E.  An employee who is on a leave of absence and
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0015|     actively employed at a charter school and who submits an
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0016|     employment application to the school district where the employee
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0017|     was employed immediately prior to employment in the charter
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0018|     school shall be given employment preference by the school
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0019|     district if:
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0020|                    (1)  the employee's notice of intent to return
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0021|     is submitted to the school district; and
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0022|                    (2)  a suitable position is available in the
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0023|     school district.
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0024|               F.  A charter school may decline to re-employ a
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0025|     teacher with less than three years of consecutive service in the
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<center>- 15 -</center>0001|     same classification for any reason it deems sufficient.  Upon the
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0002|     request of the teacher, the charter school shall provide written
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0003|     reasons for the decision to terminate.  The reasons shall be
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0004|     provided within ten working days of the request.  The reasons
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0005|     shall not be publicly disclosed by the charter school.  The
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0006|     reasons shall not provide the basis for contesting the decision
    |
0007|     pursuant to the Charter Schools Act.
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0008|               G.  An employee of a charter school who has been
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0009|     employed longer than three consecutive years by a charter school
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0010|     who receives notice of termination or intent not to reemploy may
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0011|     appeal the decision within five working days of service of
    |
0012|     written notice of termination or intent not to reemploy.  An 
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0013|     employee of a charter school may make a written request for an
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0014|     appeal to the governing board of the charter school.
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0015|               H.  The written request shall specify the grounds on
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0016|     which it is contended that the decision to terminate or not
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0017|     reemploy is without just cause and shall include a statement of
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0018|     the facts that the employee believes support his contention.  
    |
0019|               I.  The governing board of the charter school shall
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0020|     meet to hear the employee's statement in no less than five and no
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0021|     more than fifteen working days after the governing board receives
    |
0022|     the statement. 
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0023|               J.  The governing board shall notify the employee of
    |
0024|     its decision in writing within five working days of the
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0025|     conclusion of the meeting. 
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<center>- 16 -</center>0001|               K.  An employee who is still aggrieved by a decision
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0002|     of the governing board of the charter school may give written
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0003|     notice of his intent to appeal the decision to an independent
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0004|     arbitration board within five working days of receipt of the
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0005|     decision of the governing board.  
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0006|               L.  Within fifteen working days of receipt of the
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0007|     notice of appeal to an independent arbitration board, a board
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0008|     shall be formed made up of one person chosen by the employee, one
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0009|     person chosen by the governing board of the charter school and a
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0010|     third person chosen by the employee and the governing board.
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0011|               M.  Not more than fifteen working days from filing the
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0012|     written notice of intent to appeal, the employee shall submit a
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0013|     written statement of the facts and specify the grounds on which
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0014|     it is contended that the decision of the governing board was in
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0015|     error.  
    |
0016|               N.  Not more than fifteen working days from receipt of
    |
0017|     the written notice of intent to appeal the decision of the
    |
0018|     governing board, the governing board shall submit a written
    |
0019|     statement of the facts and the basis for its decision to the
    |
0020|     independent arbitration board.  
    |
0021|               O.  The independent arbitration board shall meet with
    |
0022|     the employee and the governing board not more than fifteen days
    |
0023|     after having received the written statement of both parties. 
    |
0024|               P.  The independent arbitration board shall render its
    |
0025|     decision in writing not more than five working days from the
    |
<center>- 17 -</center>0001|     meeting with the employee and the governing board.  The decision
    |
0002|     of the independent arbitration board shall be final.             
    |
0003|               Q.  Employees of a charter school shall have the right
    |
0004|     to organize and bargain collectively with the governing board of
    |
0005|     the charter school.  The governing board and the employees'
    |
0006|     exclusive representative shall bargain in good faith."
    |
0007|          Section 12.  A new section of the Charter Schools Act is
    |
0008|     enacted to read:
    |
0009|          "[NEW MATERIAL] CHARTER SCHOOLS STIMULUS FUND.--
    |
0010|               A.  The "charter schools stimulus fund" is created in
    |
0011|     the state treasury to provide financial support to charter school
    |
0012|     applicants and charter schools that are not existing public
    |
0013|     schools for start-up costs and costs associated with renovating
    |
0014|     or remodeling existing buildings and structures.  The fund shall
    |
0015|     consist of money appropriated by the legislature and grants,
    |
0016|     gifts, devises and donations from any public or private source. 
    |
0017|     Money in the fund shall not revert at the end of a fiscal year. 
    |
0018|     The state department of public education shall administer the
    |
0019|     fund, and money in the fund is appropriated to the department.
    |
0020|               B.  The state board shall adopt rules to implement the
    |
0021|     provisions of this section.  Money in the fund shall be
    |
0022|     distributed to qualifying charter school applicants and charter
    |
0023|     schools as follows:
    |
0024|                    (1)  a qualifying charter school may be awarded
    |
0025|     an initial grant of up to one hundred thousand dollars ($100,000)
    |

<center>- 18 -</center>0001|     during or before the first year of the charter school's
    |
0002|     operation.  If the charter school or charter school applicant
    |
0003|     receives an initial grant and fails to begin operating a charter
    |
0004|     school within the next eighteen months, the charter school or
    |
0005|     charter school applicant shall immediately reimburse the state
    |
0006|     department of public education for the amount of the grant plus
    |
0007|     interest calculated at a rate of ten percent per year; and
    |
0008|                    (2)  charter schools or applicants for charter
    |
0009|     schools that receive an initial grant may apply for an additional
    |
0010|     grant of up to fifty thousand dollars ($50,000) during or after
    |
0011|     the first year of the charter school's operation.  If a charter
    |
0012|     school or charter school applicant receives an additional grant
    |
0013|     and fails to begin operating a charter school within the next
    |
0014|     eighteen months, the applicant shall immediately reimburse the
    |
0015|     state department of public education for the amount of the grant
    |
0016|     plus interest calculated at a rate of ten percent per year."
    |
0017|          Section 13.  A new section of the Charter Schools Act is
    |
0018|     enacted to read:
    |
0019|          "[NEW MATERIAL] AVAILABLE DISTRICT SPACE.--Charter schools
    |
0020|     may request the use of vacant or available school district
    |
0021|     facilities.  Use of the facilities must be permitted by the
    |
0022|     school district at no rental cost to the charter school, subject
    |
0023|     to any reasonable consideration for the health, safety or comfort
    |
0024|     of the students."
    |
0025|          Section 14.  A new section of the Charter Schools Act is
    |
<center>- 19 -</center>0001|     enacted to read:
    |
0002|          "[NEW MATERIAL] INFORMATION.--The state department of
    |
0003|     public education shall embark on a public awareness campaign
    |
0004|     through the school districts and the media to inform the public
    |
0005|     about how to form and operate a charter school and how to enroll
    |
0006|     in charter schools once they are created."
    |
0007|          Section 15.  A new section of the Charter Schools Act is
    |
0008|     enacted to read:
    |
0009|          "[NEW MATERIAL] EXEMPTION.--Charter schools established
    |
0010|     prior to January 1, 1998 shall continue to be governed by the
    |
0011|     provisions of their charters and the law in effect at the time
    |
0012|     their charters were established unless otherwise agreed by the
    |
0013|     charter school and a chartering authority.  Charters in existence
    |
0014|     prior to January 1, 1998 may be extended without modification as
    |
0015|     provided in the original charter and the law in effect at the
    |
0016|     time the charter was established."
    |
0017|          Section 16.  A new section of the Charter Schools Act is
    |
0018|     enacted to read:
    |
0019|          "[NEW MATERIAL] EVALUATION.--The state department of public
    |
0020|     education shall evaluate the implementation of the Charter
    |
0021|     Schools Act and make a comprehensive report to the legislative
    |
0022|     education study committee on charter schools in New Mexico not
    |
0023|     later than November 1, 2001.  This report shall include
    |
0024|     information on the types of students served, parent satisfaction
    |
0025|     at charter schools, student achievement, dropout rates,
    |
<center>- 20 -</center>0001|     attendance rates and descriptions of the sizes, types and
    |
0002|     educational programs provided at the charter schools."
    |
0003|          Section 17.  Section 13-1-99 NMSA 1978 (being Laws 1984,
    |
0004|     Chapter 65, Section 72, as amended) is amended to read:
    |
0005|          "13-1-99.  EXCLUDED FROM CENTRAL PURCHASING THROUGH THE
    |
0006|     STATE PURCHASING AGENT.--Excluded from the requirement of
    |
0007|     procurement through the state purchasing agent but not from the
    |
0008|     requirements of the Procurement Code are the following:
    |
0009|               A.  procurement of professional services;
    |
0010|               B.  small purchases having a value not exceeding two
    |
0011|     hundred fifty dollars ($250);
    |
0012|               C.  emergency procurement;
    |
0013|               D.  procurement of highway construction or
    |
0014|     reconstruction by the state highway and transportation
    |
0015|     department;
    |
0016|               E.  procurement by the judicial branch of state
    |
0017|     government;
    |
0018|               F.  procurement by the legislative branch of state
    |
0019|     government;
    |
0020|               G.  procurement by the boards of regents of state
    |
0021|     educational institutions named in Article 12, Section 11 of the
    |
0022|     constitution of New Mexico;
    |
0023|               H.  procurement of information processing resources
    |
0024|     procured through the [commission] office on information and
    |
0025|     communication management;
    |
<center>- 21 -</center>0001|               I.  procurement by the state fair commission of
    |
0002|     tangible personal property, services and construction under five
    |
0003|     thousand dollars ($5,000);
    |
0004|               J.  purchases from the instructional material fund;
    |
0005|               K.  procurement by all local public bodies;
    |
0006|               L.  procurement by regional education cooperatives;
    |
0007|     [and]
    |
0008|               M.  procurement by each state health care institution
    |
0009|     that provides direct patient care and that is, or a part of which
    |
0010|     is, medicaid certified and participating in the New Mexico
    |
0011|     medicaid program; and
    |
0012|               N.  procurement by charter schools."
    |
0013|          Section 18.  Section 22-2-6.3 NMSA 1978 (being Laws 1986,
    |
0014|     Chapter 94, Section 3, as amended) is amended to read:
    |
0015|          "22-2-6.3.  DEFINITIONS.--As used in the Public School
    |
0016|     Insurance Authority Act:
    |
0017|               A.  "authority" means the public school insurance
    |
0018|     authority;
    |
0019|               B.  "board" means the board of directors of the public
    |
0020|     school insurance authority;
    |
0021|               C.  "director" means the director of the public school
    |
0022|     insurance authority;
    |
0023|               D.  "educational entities" means state educational
    |
0024|     institutions as enumerated in Article 12, Section 11 of the
    |
0025|     constitution of New Mexico and other state diploma, degree-
    |
<center>- 22 -</center>0001|     granting and certificate-granting post-secondary educational
    |
0002|     institutions and charter schools;
    |
0003|               E.  "fund" means the public school insurance fund;
    |
0004|               F.  "group health insurance" means coverage [which]
    |
0005|     that includes but is not limited to life insurance, accidental
    |
0006|     death and dismemberment, medical care and treatment, dental care,
    |
0007|     eye care and other coverages as determined by the authority;
    |
0008|               G.  "risk-related coverage" means coverage [which]
    |
0009|     that includes but is not limited to property and casualty,
    |
0010|     general liability, auto and fleet, [workmen's] workers'
    |
0011|     compensation and other casualty insurance; and
    |
0012|               H.  "school district" means a school district as
    |
0013|     defined in Subsection [J] K of Section 22-1-2 NMSA 1978,
    |
0014|     excluding any school district with a student enrollment in excess
    |
0015|     of sixty thousand students."
    |
0016|          Section 19.  Section 22-11-2 NMSA 1978 (being Laws 1967,
    |
0017|     Chapter 16, Section 126, as amended) is amended to read:
    |
0018|          "22-11-2.  DEFINITIONS.--As used in the Educational
    |
0019|     Retirement Act:
    |
0020|               A.  "member" means any employee, except for a
    |
0021|     participant coming within the provisions of the Educational
    |
0022|     Retirement Act;
    |
0023|               B.  "regular member" means:
    |
0024|                    (1)  a person regularly employed as a teaching,
    |
0025|     nursing or administrative employee of a state educational
    |
<center>- 23 -</center>0001|     institution, except for:
    |
0002|                         (a)  a participant; or 
    |
0003|                         (b)  all employees of a general hospital or
    |
0004|     outpatient clinics thereof operated by a state educational
    |
0005|     institution named in Article 12, Section 11 of the constitution
    |
0006|     of New Mexico;
    |
0007|                    (2)  a person regularly employed as a teaching,
    |
0008|     nursing or administrative employee of a junior college or
    |
0009|     community college created pursuant to Chapter 21, Article 13 NMSA
    |
0010|     1978; 
    |
0011|                    (3)  a person regularly employed as a teaching,
    |
0012|     nursing or administrative employee of a technical and vocational
    |
0013|     institute created pursuant to the Technical and Vocational
    |
0014|     Institute Act;
    |
0015|                    (4)  a person regularly employed as a teaching,
    |
0016|     nursing or administrative employee of the New Mexico boys'
    |
0017|     school, the New Mexico girls' school, the Los Lunas medical
    |
0018|     center or a school district or as a certified school instructor

    |
0019|     of a state institution or agency providing an educational program
    |
0020|     and holding a standard or substandard certificate issued by the
    |
0021|     state board;
    |
0022|                    (5)  a person regularly employed by the
    |
0023|     department of education or the board holding a standard or
    |
0024|     substandard certificate issued by the state board at the time of
    |
0025|     commencement of such employment;
    |
<center>- 24 -</center>0001|                    (6)  a member classified as a regular member in
    |
0002|     accordance with the regulations of the board;  
    |
0003|                    (7)  a person regularly employed by the New
    |
0004|     Mexico activities association holding a standard certificate
    |
0005|     issued by the state board at the time of commencement of such
    |
0006|     employment; [or]
    |
0007|                    (8)  a person regularly employed by a regional
    |
0008|     education cooperative holding a standard certificate issued by
    |
0009|     the state board at the time of commencement of such employment;
    |
0010|     or
    |
0011|                    (9)  a person regularly employed by a charter
    |
0012|     school;
    |
0013|               C.  "provisional member" means a person not eligible
    |
0014|     to be a regular member but who is employed by a local
    |
0015|     administrative unit designated in Subsection B of this section;
    |
0016|     provided, however, that employees of a general hospital or
    |
0017|     outpatient clinics thereof operated by a state educational
    |
0018|     institution named in Article 12, Section 11 of the constitution
    |
0019|     of New Mexico are not provisional members;
    |
0020|               D.  "local administrative unit" means an employing
    |
0021|     agency however constituted that is directly responsible for the
    |
0022|     payment of compensation for the employment of members or
    |
0023|     participants;
    |
0024|               E.  "beneficiary" means a person having an insurable
    |
0025|     interest in the life of a member or a participant designated by
    |
<center>- 25 -</center>0001|     written instrument duly executed by the member or participant and
    |
0002|     filed with the director to receive a benefit pursuant to the
    |
0003|     Educational Retirement Act that may be received by someone other
    |
0004|     than the member or participant;
    |
0005|               F.  "employment" means employment by a local
    |
0006|     administrative unit that qualifies a person to be a member or
    |
0007|     participant;
    |
0008|               G.  "service employment" means employment that
    |
0009|     qualifies a person to be a regular member;
    |
0010|               H.  "provisional service employment" means employment
    |
0011|     that qualifies a person to be a provisional member;
    |
0012|               I.  "prior employment" means employment performed
    |
0013|     prior to the effective date of the Educational Retirement Act 
    |
0014|     that would be service employment or provisional service
    |
0015|     employment if performed thereafter;
    |
0016|               J.  "service credit" means that period of time with
    |
0017|     which a member is accredited for the purpose of determining his
    |
0018|     eligibility for and computation of retirement or disability
    |
0019|     benefits;
    |
0020|               K.  "earned service credit" means that period of time
    |
0021|     during which a member was engaged in employment or prior
    |
0022|     employment with which he is accredited for the purpose of
    |
0023|     determining his eligibility for retirement or disability
    |
0024|     benefits;
    |
0025|               L.  "allowed service credit" means that period of time
    |
<center>- 26 -</center>0001|     during which a member has performed certain nonservice employment
    |
0002|     with which he may be accredited, as provided in the Educational
    |
0003|     Retirement Act, for the purpose of computing retirement or
    |
0004|     disability benefits;
    |
0005|               M.  "retirement benefit" means an annuity paid monthly
    |
0006|     to members whose employment has been terminated by reason of
    |
0007|     their age;
    |
0008|               N.  "disability benefit" means an annuity paid monthly
    |
0009|     to members whose employment has been terminated by reason of a
    |
0010|     disability;
    |
0011|               O.  "board" means the educational retirement board;
    |
0012|               P.  "fund" means the educational retirement fund;
    |
0013|               Q.  "director" means the educational retirement
    |
0014|     director;
    |
0015|               R.  "medical authority" means a medical doctor within
    |
0016|     the state or as provided in Subsection D of Section 22-11-36 NMSA
    |
0017|     1978 either designated or employed by the board to examine and
    |
0018|     report on the physical condition of applicants for or recipients
    |
0019|     of disability benefits;
    |
0020|               S.  "actuary" means a person trained and regularly
    |
0021|     engaged in the occupation of calculating present and projected
    |
0022|     monetary assets and liabilities under annuity or insurance
    |
0023|     programs;
    |
0024|               T.  "actuarial equivalent" means a sum paid as a   
    |
0025|     current or deferred benefit that is equal in value to a regular
    |
<center>- 27 -</center>0001|     benefit, computed upon the basis of interest rates and mortality
    |
0002|     tables; 
    |
0003|               U.  "contributory employment" means employment for
    |
0004|     which contributions have been made by both a member and a local
    |
0005|     administrative unit pursuant to the Educational Retirement Act;
    |
0006|               V.  "qualifying state educational institution" means
    |
0007|     the university of New Mexico, New Mexico state university, New
    |
0008|     Mexico institute of mining and technology, New Mexico highlands
    |
0009|     university, eastern New Mexico university and western New Mexico
    |
0010|     university;
    |
0011|               W.  "participant" means:
    |
0012|                    (1)  a person regularly employed as a faculty or
    |
0013|     professional employee of a qualifying state educational
    |
0014|     institution who first becomes employed with such an educational
    |
0015|     institution on or after July 1, 1991 and who elects, pursuant to
    |
0016|     Section 22-11-47 NMSA 1978, to participate in the alternative
    |
0017|     retirement plan; and
    |
0018|                    (2)  a person regularly employed who performs
    |
0019|     research or other services pursuant to a contract between a
    |
0020|     qualifying state educational institution and the United States
    |
0021|     government or any of its agencies who elects, pursuant to Section
    |
0022|     22-11-47 NMSA 1978, to participate in the alternative retirement
    |
0023|     plan, provided that the research or other services are performed
    |
0024|     outside the state; 
    |
0025|               X.  "salary" means the compensation or wages paid to a
    |
<center>- 28 -</center>0001|     member or participant by any local administrative unit for
    |
0002|     services rendered; and
    |
0003|               Y.  "alternative retirement plan" means the retirement
    |
0004|     plan provided for in Sections 22-11-47 through 22-11-52 NMSA
    |
0005|     1978."
    |
0006|          Section 20.  Section 22-11-19 NMSA 1978 (being Laws 1967,
    |
0007|     Chapter 16, Section 142, as amended) is amended to read:
    |
0008|          "22-11-19.  REGULAR OR PROVISIONAL MEMBERSHIP--OPTIONAL
    |
0009|     COVERAGE.--
    |
0010|               A.  Any person qualified to be a regular or
    |
0011|     provisional member covered by a retirement program established
    |
0012|     for federal civil service employees shall have six months after
    |
0013|     the commencement of employment to file a written notice with the
    |
0014|     director of his election not to be covered by the Educational
    |
0015|     Retirement Act.  If the person so elects, he may withdraw any
    |
0016|     contributions made pursuant to the Educational Retirement Act.
    |
0017|               B.  Any person qualified to be a regular or
    |
0018|     provisional member and who was employed by a regional education
    |
0019|     cooperative on July 1, 1993 shall have the right to exempt
    |
0020|     himself from Educational Retirement Act coverage within thirty
    |
0021|     days, and such exemption shall be irrevocable as long as the
    |
0022|     person is employed by a regional cooperative.
    |
0023|               C.  Any person qualified to be a regular or
    |
0024|     provisional member and who was employed by a charter school shall
    |
0025|     have the right to exempt himself from Educational Retirement Act
    |
<center>- 29 -</center>0001|     coverage within thirty days of hire, and such exemption shall be
    |
0002|     irrevocable as long as the person is employed by a charter
    |
0003|     school."
    |
0004|          Section 21.  Section 22-11-19.2 NMSA 1978 (being Laws 1993,
    |
0005|     Chapter 232, Section 9) is amended to read:
    |
0006|          "22-11-19.2.  REGULAR OR PROVISIONAL MEMBERSHIP--REGIONAL
    |
0007|     EDUCATION COOPERATIVES AND CHARTER SCHOOLS.--Any person employed
    |
0008|     by a regional education cooperative and qualified to be a regular
    |
0009|     or provisional member shall have the right to acquire earned
    |
0010|     service credit for periods of employment with the regional
    |
0011|     education cooperative or charter school when the member was
    |
0012|     neither covered nor retired under the Educational Retirement Act,
    |
0013|     under the following conditions:
    |
0014|               A.  both the member and the administrative unit
    |
0015|     contributions, at the rates in effect during the periods of
    |
0016|     employment and applied to earnings of the member during such
    |
0017|     periods, are paid to the fund, together with interest, at a rate
    |
0018|     equal to the board's actuarial earnings assumption rate at the
    |
0019|     time of purchase;
    |
0020|               B.  both member and administrative unit contributions,
    |
0021|     together with interest, are paid by the member; or
    |
0022|               C.  the member tenders payment of his contributions,
    |
0023|     together with interest, and the local administrative unit by
    |
0024|     which he was employed may, but shall not be obligated to, pay the
    |
0025|     administrative unit contributions, together with interest."
    |
<center>- 30 -</center>0001|          Section 22.  REPEAL.--Sections 22-8A-4 through 22-8A-7 NMSA
    |
0002|     1978 (being Laws 1993, Chapter 227, Sections 4 through 7) are
    |
0003|     repealed.
    |
0004|                               
    |