0001| SENATE BILL 130 | 0002| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998 | 0003| INTRODUCED BY | 0004| RICHARD M. ROMERO | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO PUBLIC SCHOOLS; PROVIDING FOR A LOCAL OPTION | 0012| PROPERTY TAX FOR SCHOOL DISTRICT OPERATIONAL PURPOSES; | 0013| CREATING A FUND; PROVIDING FOR DISTRIBUTION; AMENDING AND | 0014| ENACTING SECTIONS OF THE NMSA 1978; MAKING AN APPROPRIATION; | 0015| DECLARING AN EMERGENCY. | 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 7 of this act may be cited as the "Local Operational | 0020| School Levy Act". | 0021| Section 2. [|NEW MATERIAL|] DEFINITIONS.--As used in the | 0022| Local Operational School Levy Act: | 0023| A. "average daily attendance program costs" means | 0024| program costs, as defined in the Public School Finance Act, | 0025| for any school district as calculated using membership, as | - 1 - 0001| defined in the Public School Finance Act, on the fortieth, one | 0002| hundred twentieth and one hundred sixtieth day of the | 0003| applicable school year in that school district; | 0004| B. "department" means the state department of | 0005| public education; | 0006| C. "local school board" means the governing body | 0007| of a school district; | 0008| D. "operational purposes" means those expenditure | 0009| categories for the general operation of a school district that | 0010| are defined in state board of education rules for uniform | 0011| financial accounting and budgeting for New Mexico school | 0012| districts; | 0013| E. "superintendent" means the superintendent of | 0014| public instruction; and | 0015| F. "taxable value of property" means the sum of | 0016| the following: | 0017| (1) the "net taxable value", as that term is | 0018| defined in the Property Tax Code, of property subject to | 0019| taxation pursuant to the Property Tax Code; | 0020| (2) the "assessed value" of "products" as | 0021| those terms are defined in the Oil and Gas Ad Valorem | 0022| Production Tax Act; | 0023| (3) the "assessed value" of "equipment" as | 0024| those terms are defined in the Oil and Gas Production | 0025| Equipment Ad Valorem Tax Act; and | - 2 - 0001| (4) the "taxable value" of "copper mineral | 0002| property" as those terms are defined in the Copper Production | 0003| Ad Valorem Tax Act. | 0004| Section 3. [|NEW MATERIAL|] LOCAL SCHOOL BOARD-- | 0005| AUTHORIZATION TO IMPOSE A TAX FOR SCHOOL DISTRICT OPERATIONAL | 0006| PURPOSES--RESOLUTION--ELECTION REQUIRED.-- | 0007| A. A local school board may adopt a resolution | 0008| authorizing, for school district operational purposes, the | 0009| imposition of a property tax upon the taxable value of | 0010| property in the school district. The total tax imposition | 0011| that may be authorized under the Local Operational School Levy | 0012| Act shall not exceed a rate of four dollars ($4.00) on each | 0013| one thousand dollars ($1,000) of taxable value of property in | 0014| the school district. | 0015| B. The tax authorized pursuant to Subsection A of | 0016| this section shall not be imposed unless the question of | 0017| authorizing the imposition of the tax is submitted to the | 0018| voters of the district. The local school board shall not | 0019| submit to the voters at any one election a question | 0020| authorizing the imposition of a tax under the Local | 0021| Operational School Levy Act at a rate greater than two dollars | 0022| ($2.00) on each one thousand dollars ($1,000) of taxable value | 0023| of property in the school district or for a period of more | 0024| than ten years. However, if a tax is imposed pursuant to | 0025| approval at a special school district election prior to the | - 3 - 0001| 1999 regular school district election, the period for which | 0002| the tax is imposed shall be for a period ending no later than | 0003| December 31, 2007. | 0004| C. During the three years prior to the expiration | 0005| of any period during which a tax has been authorized to be | 0006| imposed pursuant to the Local Operational School Levy Act, the | 0007| local school board may adopt a resolution pursuant to | 0008| Subsection A of this section and submit to the voters of the | 0009| district the question of authorizing the imposition of a tax | 0010| pursuant to that act for an additional period not to exceed | 0011| ten years with the tax to be certified and first imposed for | 0012| the period immediately succeeding the last year of the period | 0013| the tax was previously authorized to be imposed. | 0014| D. Any resolution adopted pursuant to Subsection A | 0015| of this section shall specify: | 0016| (1) the rate of the proposed tax; | 0017| (2) the date a referendum will be held to | 0018| submit the question of imposition of the tax to the voters of | 0019| the school district; | 0020| (3) the period of time the tax is authorized | 0021| to be imposed; and | 0022| (4) the proposed use of the revenues from the | 0023| proposed tax. | 0024| E. The local school board shall mail the | 0025| superintendent a copy of the resolution authorizing a tax | - 4 - 0001| pursuant to Subsection A of this section within two weeks | 0002| following its adoption by the local school board. | 0003| F. Any amounts received by the school district | 0004| pursuant to the provisions of the Local Operational School | 0005| Levy Act shall be expended only for operational purposes of | 0006| the school district. | 0007| Section 4. [|NEW MATERIAL|] CONDUCT OF ELECTION-- | 0008| BALLOT.-- | 0009| A. The question of authorizing the imposition of a | 0010| tax pursuant to the Local Operational School Levy Act shall be | 0011| submitted to the voters at the first regular school district | 0012| election following the adoption of a resolution pursuant to | 0013| Section 3 of the Local Operational School Levy Act. However, | 0014| if a local school board deems it necessary, it may call a | 0015| special school district election to submit to the voters the | 0016| initial question of the authorization of a tax pursuant to the | 0017| Local Operational School Levy Act. Thereafter, the question | 0018| of authorizing the imposition of any additional tax pursuant | 0019| to that act shall be submitted to the voters only at regular | 0020| school district elections. | 0021| B. The proclamation calling the election shall be | 0022| filed and published as required pursuant to the School | 0023| Election Law and shall specify: | 0024| (1) the date on which the election will be | 0025| held; | - 5 - 0001| (2) the question of whether the imposition of | 0002| a property tax for school district operational purposes shall | 0003| be authorized pursuant to the Local Operational School Levy | 0004| Act at a rate not to exceed the rate specified in the | 0005| authorizing resolution and for the period specified in that | 0006| resolution; | 0007| (3) the precincts in each county in which the | 0008| election is to be held and the location of each polling place; | 0009| (4) the hours each polling place will be | 0010| open; and | 0011| (5) the date and time of the closing of the | 0012| registration books by the county clerk as required by law. | 0013| C. The ballot shall include the information | 0014| specified in Paragraph (2) of Subsection B of this section and | 0015| shall present the voter the choice of voting "for the local | 0016| operational school levy" or "against the local operational | 0017| school levy". | 0018| D. The election shall be held, conducted and | 0019| canvassed pursuant to the School Election Law. | 0020| E. The local school board shall notify the | 0021| superintendent of the results of the election immediately upon | 0022| completion of the canvass. | 0023| F. Any resolution authorizing a tax pursuant to | 0024| the Local Operational School Levy Act shall be adopted by a | 0025| date necessary to ensure that the results of the election on | - 6 - 0001| the question of imposing the tax shall be certified no later | 0002| than June 15 of the property tax year for which the tax rates | 0003| will first be certified. | 0004| Section 5. [|NEW MATERIAL|] IMPOSITION OF TAX-- | 0005| CERTIFICATION BY DEPARTMENT OF FINANCE AND ADMINISTRATION-- | 0006| DISCONTINUANCE OF TAX.-- | 0007| A. If a majority of the voters voting on the | 0008| question votes for a local operational school levy pursuant to | 0009| a resolution adopted pursuant to the Local Operational School | 0010| Levy Act, the tax shall be imposed for the earliest period for | 0011| which the tax rate may be certified, except as otherwise | 0012| provided in that act. The tax rate shall be certified by the | 0013| department of finance and administration and imposed, | 0014| administered and collected in accordance with the provisions | 0015| of the Oil and Gas Ad Valorem Production Tax Act, the Oil and | 0016| Gas Production Equipment Ad Valorem Tax Act, the Copper | 0017| Production Ad Valorem Tax Act and the Property Tax Code. | 0018| B. If a majority of the voters voting on the | 0019| question votes against a local operational school levy, the | 0020| tax shall not be imposed. The local school board shall not | 0021| again adopt a resolution authorizing the imposition of a tax | 0022| pursuant to the Local Operational School Levy Act for at least | 0023| two years after the date of the resolution that the voters | 0024| rejected. | 0025| C. The department of finance and administration | - 7 - 0001| shall not certify the tax rates for taxes authorized pursuant | 0002| to the Local Operational School Levy Act in any year in which | 0003| the superintendent certifies by July 1 of that year that money | 0004| in the local operational school fund for the next school year | 0005| is not sufficient to meet the demands on the fund. The tax | 0006| rates authorized but not certified shall be certified in the | 0007| first succeeding year for which the necessary appropriation to | 0008| the local operational school fund for the next school year has | 0009| been made. | 0010| D. The department of finance and administration | 0011| shall not certify the tax rate for a tax authorized pursuant | 0012| to the Local Operational School Levy Act for any school | 0013| district in the state in any year in which the state | 0014| department of public education notifies the department of | 0015| finance and administration by August 1 that the imposition of | 0016| the taxes or the use of revenues from the taxes would result | 0017| in: | 0018| (1) the failure to qualify for certification | 0019| by the secretary of the United States department of education | 0020| as having in effect for the tax year in which the tax would | 0021| otherwise be imposed, administered and collected a program of | 0022| state aid that equalizes expenditures for free public | 0023| education among local educational agencies in the state; or | 0024| (2) when computed according to 20 U.S.C. | 0025| 7709(d)(1), a proportion of less than eighty percent in any | - 8 - 0001| school district. | 0002| E. The local school board may discontinue by | 0003| resolution the imposition of any tax authorized pursuant to | 0004| the Local Operational School Levy Act. The discontinuance | 0005| resolution shall be mailed to the department of finance and | 0006| administration and the superintendent no later than June 15 of | 0007| the year in which a tax rate pursuant to that act is not to be | 0008| certified. | 0009| Section 6. [|NEW MATERIAL|] LOCAL OPERATIONAL SCHOOL | 0010| FUND CREATED--APPROPRIATION.--There is created in the state | 0011| treasury the "local operational school fund". The fund shall | 0012| be invested as other state funds are invested. Earnings on | 0013| balances in the local operational school fund shall be | 0014| credited to the fund, and amounts in the fund are appropriated | 0015| for the purposes of the Local Operational School Levy Act. | 0016| Section 7. [|NEW MATERIAL|] STATE GUARANTEE--STATE | 0017| DISTRIBUTION--REMITTANCE OF EXCESS AMOUNTS.-- | 0018| A. The state guarantee for a school district that | 0019| has imposed a tax pursuant to the Local Operational School | 0020| Levy Act shall be an amount equal to the product obtained by | 0021| multiplying two and one-half percent by the tax rate certified | 0022| pursuant to that act and multiplying that product by the | 0023| average daily attendance program cost for the school year | 0024| beginning in any year a tax rate pursuant to that act is | 0025| certified for that district. | - 9 - 0001| B. The state distribution for a district for a | 0002| school year is an amount that shall not exceed the state | 0003| guarantee for that district and that is equal to the amount by | 0004| which the guarantee exceeds the revenue from the tax imposed | 0005| in that district pursuant to the Local Operational School Levy | 0006| Act received during the period beginning June 1 of the year | 0007| during which a tax rate under that act is certified for the | 0008| district and ending May 31 of the next year. If a school | 0009| district is entitled to a state distribution, the | 0010| superintendent shall distribute the calculated amount from the | 0011| local operational school fund to the school district not later | 0012| than June 30 of the calendar year following the year during | 0013| which the tax rate was certified. | 0014| C. If the revenue received during the period June | 0015| 1 to May 31 from the imposition of the tax authorized by the | 0016| Local Operational School Levy Act exceeds the state guarantee | 0017| for the school year during which the revenue was received, the | 0018| local school board shall remit to the local operational school | 0019| fund by June 30 of the school year an amount equal to the sum | 0020| of the amounts derived from the following three calculations: | 0021| (1) one-fourth of the amount of revenue that | 0022| exceeds one hundred twenty-five percent of the state guarantee | 0023| but is less than one hundred fifty percent of the state | 0024| guarantee; | 0025| (2) one-half of the amount of revenue that is | - 10 - 0001| one hundred fifty percent or more of the state guarantee but | 0002| less than one hundred seventy-five percent of the state | 0003| guarantee; and | 0004| (3) three-fourths of the amount of revenue | 0005| that is one hundred seventy-five percent or more of the state | 0006| guarantee. | 0007| D. If the balance in the local operational school | 0008| fund in any fiscal year is insufficient to pay the sum of the | 0009| distribution amounts determined to be due to all the school | 0010| districts entitled to a distribution, the amount necessary to | 0011| pay all distribution amounts in full shall be transferred from | 0012| the state-support reserve fund to the local operational school | 0013| fund for distribution to school districts as required pursuant | 0014| to this section. However, if there is not a sufficient | 0015| balance in the state support reserve fund to pay both the full | 0016| state equalization guarantee distribution and the state | 0017| distributions pursuant to this section, the state equalization | 0018| guarantee distribution shall be made in full and, based on the | 0019| amount available in the local operational school fund, each | 0020| state distribution amount due pursuant to this section shall | 0021| be reduced proportionately. | 0022| E. Distributions to school districts made pursuant | 0023| to the Local Operational School Levy Act shall be supplemental | 0024| to state equalization guarantee distributions made pursuant to | 0025| the Public School Finance Act. In no fiscal year shall the | - 11 - 0001| amount of state funding pursuant to the Public School Finance | 0002| Act be reduced because of the imposition in one or more school | 0003| districts of a tax pursuant to the Local Operational School | 0004| Levy Act. The absence of a distribution to a school district | 0005| pursuant to that act shall not affect the amount of any state | 0006| equalization guarantee distributions to that district pursuant | 0007| to the Public School Finance Act. | 0008| Section 8. Section 7-37-7.1 NMSA 1978 (being Laws 1979, | 0009| Chapter 268, Section 1, as amended) is amended to read: | 0010| "7-37-7.1. ADDITIONAL LIMITATIONS ON PROPERTY TAX | 0011| RATES.-- | 0012| A. Except as provided in Subsections D and E of | 0013| this section, in setting the general property tax rates for | 0014| residential and nonresidential property authorized in | 0015| Subsection B of Section 7-37-7 NMSA 1978, the other rates and | 0016| impositions authorized in Paragraphs (2) and (3) of Subsection | 0017| C of Section 7-37-7 NMSA 1978, except the portion of the rate | 0018| authorized in Paragraph (1) of Subsection A of Section | 0019| 4-48B-12 NMSA 1978 used to meet the requirements of Section | 0020| 27-10-4 NMSA 1978 |and except rates authorized pursuant to the | 0021| local operational school levy act|, and benefit assessments | 0022| authorized by law to be levied upon net taxable value of | 0023| property, assessed value or a similar term, neither the | 0024| department of finance and administration nor any other entity | 0025| authorized to set or impose a rate or assessment shall set a | - 12 - 0001| rate or impose a tax or assessment that will produce revenue | 0002| from either residential or nonresidential property in a | 0003| particular governmental unit in excess of the sum of a dollar | 0004| amount derived by multiplying the appropriate growth control | 0005| factor by the revenue due from the imposition on residential | 0006| or nonresidential property, as appropriate, for the prior | 0007| property tax year in the governmental unit of the rate, | 0008| imposition or assessment for the specified purpose plus, for | 0009| the calculation for the rate authorized for county operating | 0010| purposes by Subsection B of Section 7-37-7 NMSA 1978 with | 0011| respect to residential property, any applicable tax rebate | 0012| adjustment. The calculation described in this subsection | 0013| shall be separately made for residential and nonresidential | 0014| property. Except as provided in Subsections D and E of this | 0015| section, no tax rate or benefit assessment that will produce | 0016| revenue from either class of property in a particular | 0017| governmental unit in excess of the dollar amount allowed by | 0018| the calculation shall be set or imposed. The rates imposed | 0019| pursuant to Sections 7-32-4 and 7-34-4 NMSA 1978 shall be the | 0020| rates for nonresidential property that would have been imposed | 0021| but for the limitations in this section. As used in this | 0022| section, "growth control factor" is a percentage equal to the | 0023| sum of "percent change I" plus V where: | 0024| (1) V = |(base year value + net new value)|, | 0025| base year value | - 13 - 0001| expressed as a percentage, but if the percentage calculated is | 0002| less than one hundred percent, then V shall be set and used as | 0003| one hundred percent; | 0004| (2) "base year value" means the value for | 0005| property taxation purposes of all residential or | 0006| nonresidential property, as appropriate, subject to valuation | 0007| under the Property Tax Code in the governmental unit for the | 0008| specified purpose in the prior property tax year; | 0009| (3) "net new value" means the additional | 0010| value of residential or nonresidential property, as | 0011| appropriate, for property taxation purposes placed on the | 0012| property tax schedule in the current year resulting from the | 0013| elements in Subparagraphs (a) through (d) of this paragraph | 0014| reduced by the value of residential or nonresidential | 0015| property, as appropriate, removed from the property tax | 0016| schedule in the current year and, if applicable, the | 0017| reductions described in Subparagraph (e) of this paragraph: | 0018| (a) residential or nonresidential | 0019| property, as appropriate, valued in the current year that was | 0020| not valued at all in the prior year; | 0021| (b) improvements to existing | 0022| residential or nonresidential property, as appropriate; | 0023| (c) additions to residential or | 0024| nonresidential property, as appropriate, or values that were | 0025| omitted from previous years' property tax schedules even if | - 14 - 0001| part or all of the property was included on the schedule, but | 0002| no additions of values attributable to valuation maintenance | 0003| programs or reappraisal programs shall be included; | 0004| (d) additions to nonresidential | 0005| property due to increases in annual net production values of | 0006| mineral property valued in accordance with Section 7-36-23 or | 0007| 7-36-25 NMSA 1978 or due to increases in market value of | 0008| mineral property valued in accordance with Section 7-36-24 | 0009| NMSA 1978; and | 0010| (e) reductions to nonresidential | 0011| property due to decreases in annual net production values of | 0012| mineral property valued in accordance with Section 7-36-23 or | 0013| 7-36-25 NMSA 1978 or due to decreases in market value of | 0014| mineral property valued in accordance with Section 7-36-24 | 0015| NMSA 1978; and | 0016| (4) "percent change I" means a percent not in | 0017| excess of five percent that is derived by dividing the annual | 0018| implicit price deflator index for state and local government | 0019| purchases of goods and services, as published in the United | 0020| States department of commerce monthly publication entitled | 0021| "survey of current business" or any successor publication, for | 0022| the calendar year next preceding the prior calendar year into | 0023| the difference between the prior year's comparable annual | 0024| index and that next preceding year's annual index if that | 0025| difference is an increase, and if the difference is a | - 15 - 0001| decrease, the "percent change I" is zero. In the event that | 0002| the annual implicit price deflator index for state and local | 0003| government purchases of goods and services is no longer | 0004| prepared or published by the United States department of | 0005| commerce, the department shall adopt by regulation the use of | 0006| any comparable index prepared by any agency of the United | 0007| States. | 0008| B. If, as a result of the application of the | 0009| limitation imposed under Subsection A of this section, a | 0010| property tax rate for residential or nonresidential property, | 0011| as appropriate, authorized in Subsection B of Section 7-37-7 | 0012| NMSA 1978 is reduced below the maximum rate authorized in that | 0013| subsection, no governmental unit or entity authorized to | 0014| impose a tax rate under Paragraph (2) of Subsection C of | 0015| Section 7-37-7 NMSA 1978 shall impose any portion of the rate | 0016| representing the difference between a maximum rate authorized | 0017| under Subsection B of Section 7-37-7 NMSA 1978 and the reduced | 0018| rate resulting from the application of the limitation imposed | 0019| under Subsection A of this section. | 0020| C. If the net new values necessary to make the | 0021| computation required under Subsection A of this section are | 0022| not available for any governmental unit at the time the | 0023| calculation must be made, the department of finance and | 0024| administration shall use a zero amount for net new values when | 0025| making the computation for the governmental unit. | - 16 - 0001| D. Any part of the maximum tax rate authorized for | 0002| each governmental unit for residential and nonresidential | 0003| property by Subsection B of Section 7-37-7 NMSA 1978 that is | 0004| not imposed for a governmental unit for any property tax year | 0005| for reasons other than the limitation required under | 0006| Subsection A of this section may be authorized by the | 0007| department of finance and administration to be imposed for | 0008| that governmental unit for residential and nonresidential | 0009| property for the following tax year subject to the restriction | 0010| of Subsection D of Section 7-38-33 NMSA 1978. | 0011| E. If the base year value necessary to make the | 0012| computation required under Subsection A of this section is not | 0013| available for any governmental unit at the time the | 0014| calculation must be made, the department of finance and | 0015| administration shall set a rate for residential and | 0016| nonresidential property that will produce in that governmental | 0017| unit a dollar amount that is not in excess of the property tax | 0018| revenue due for all property for the prior property tax year | 0019| for the specified purpose of that rate in that governmental | 0020| unit. | 0021| F. For the purposes of this section: | 0022| (1) "nonresidential property" does not | 0023| include any property upon which taxes are imposed pursuant to | 0024| the Oil and Gas Ad Valorem Production Tax Act, the Oil and Gas | 0025| Production Equipment Ad Valorem Tax Act or the Copper | - 17 - 0001| Production Ad Valorem Tax Act; and | 0002| (2) "tax rebate adjustment" means, for those | 0003| counties that have an ordinance in effect providing the | 0004| property tax rebate pursuant to the Income Tax Act for the | 0005| property tax year and that have not imposed for the property | 0006| tax year either a property tax, the revenue from which is | 0007| pledged for payment of the income tax revenue reduction | 0008| resulting from the provision of the property tax rebate, or a | 0009| property transfer tax, the estimated amount of the property | 0010| tax rebate to be allowed with respect to the property tax | 0011| year, and for any other governmental unit or purpose, zero; | 0012| provided that any estimate of property tax rebate to be | 0013| allowed is subject to review for appropriateness and approval | 0014| by the department of finance and administration." | 0015| Section 9. Section 22-8-25 NMSA 1978 (being Laws 1981, | 0016| Chapter 176, Section 5, as amended) is amended to read: | 0017| "22-8-25. STATE EQUALIZATION GUARANTEE DISTRIBUTION-- | 0018| DEFINITIONS--DETERMINATION OF AMOUNT.-- | 0019| A. The state equalization guarantee distribution | 0020| is that amount of money distributed to each school district to | 0021| ensure that the school district's operating revenue, including | 0022| its local and federal revenues as defined in this section, is | 0023| at least equal to the school district's program cost. | 0024| B. "Local revenue", as used in this section, means | 0025| ninety-five percent of receipts to the school district derived | - 18 - 0001| from that amount produced by a school district property tax | 0002| applied at the rate of fifty cents ($.50) to each one thousand | 0003| dollars ($1,000) of net taxable value of property allocated to | 0004| the school district and to the assessed value of products | 0005| severed and sold in the school district as determined under | 0006| the Oil and Gas Ad Valorem Production Tax Act and upon the | 0007| assessed value of equipment in the school district as | 0008| determined under the Oil and Gas Production Equipment Ad | 0009| Valorem Tax Act. | 0010| C. "Federal revenue", as used in this section, | 0011| |excludes amounts that if taken into consideration in the | 0012| computation of the state equalization guarantee distribution | 0013| will result, under federal law or regulations, in the | 0014| reduction or elimination of federal school funding otherwise | 0015| receivable by the district, and| means: | 0016| |(1)| ninety-five percent of receipts to the | 0017| school district ~[excluding amounts which, if taken into | 0018| account in the computation of the state equalization guarantee | 0019| distribution, result, under federal law or regulations, in a | 0020| reduction in or elimination of federal school funding | 0021| otherwise receivable by the school district]~ derived from the | 0022| following: | 0023| ~[(1)]~ |(a)| the school district's share of | 0024| forest reserve funds distributed in accordance with Section | 0025| 22-8-33 NMSA 1978; and | - 19 - 0001| ~[(2)]~ |(b)| grants from the federal | 0002| government as assistance to those areas affected by federal | 0003| activity authorized in accordance with Sections ~[236 through | 0004| 240]~ |7701 through 7714| of Title 20 of the United States | 0005| Code (commonly known as "PL 874 funds") or an amount equal to | 0006| the revenue the district was entitled to receive if no | 0007| application was made for such funds but ~[deducting from those | 0008| grants the additional amounts to which school districts would | 0009| be entitled because of the provisions of Subparagraph (D) of | 0010| Paragraph (2) of Subsection (d) of Section 238 of Title 20 of | 0011| the United States Code]~ |excluding from those grants amounts | 0012| that the state is prohibited by federal law or regulations | 0013| from taking into consideration in the computation of the state | 0014| equalization guarantee distribution; or| | 0015| |(2) with respect to a school district that | 0016| receives PL 874 funds and for which a proportion of less than | 0017| ninety-five percent is calculated for the purpose of taking | 0018| PL 874 funds into consideration in determining the state | 0019| equalization guarantee distribution, that lesser proportion of | 0020| receipts to the school district derived from grants from the | 0021| federal government as assistance to those areas affected by | 0022| federal activity authorized in accordance with Sections 7701 | 0023| through 7714 of Title 20 of the United States Code (commonly | 0024| known as "PL 874 funds") or an amount equal to the revenue the | 0025| district was entitled to receive if no application was made | - 20 - 0001| for such funds but excluding from those grants amounts that | 0002| the state is prohibited by federal law or regulations from | 0003| taking into consideration in the computation of the state | 0004| equalization guarantee distribution|. | 0005| D. To determine the amount of the state | 0006| equalization guarantee distribution, the state superintendent | 0007| shall: | 0008| (1) calculate the number of program units to | 0009| which each school district is entitled using the basic program | 0010| membership of the fortieth day for all programs; provided that | 0011| special education program units shall be calculated using the | 0012| membership in special education programs on December 1; or | 0013| (2) calculate the number of program units to | 0014| which a school district operating under an approved year-round | 0015| school calendar is entitled using the basic program membership | 0016| on an appropriate date established by the state board; or | 0017| (3) calculate the number of program units to | 0018| which a school district with a basic program MEM of ~[200]~ | 0019| |two hundred| or less is entitled by using the basic program | 0020| membership on the fortieth day of either the prior or the | 0021| current year, whichever is greater; provided that special | 0022| education program units shall be calculated using the | 0023| membership in special education programs on December 1 of | 0024| either the prior or the current year; and | 0025| (4) using the results of the calculations in | - 21 - 0001| Paragraph (1), (2) or (3) of this subsection and the | 0002| instructional staff training and experience index from the | 0003| October report of the prior school year, establish a total | 0004| program cost of the school district; | 0005| (5) calculate the local and federal revenues | 0006| as defined in this section; | 0007| (6) deduct the sum of the calculations made | 0008| in Paragraph (5) of this subsection from the program cost | 0009| established in Paragraph (4) of this subsection; and | 0010| (7) deduct the total amount of guaranteed | 0011| energy savings contract payments that the state superintendent | 0012| determines will be made to the school district from the | 0013| ~[public school energy efficiency fund]~ |public school | 0014| utility conservation fund| during the fiscal year for which | 0015| the state equalization guarantee distribution is being | 0016| computed. | 0017| E. The amount of the state equalization guarantee | 0018| distribution to which a school district is entitled is the | 0019| balance remaining after the deductions made in Paragraphs (6) | 0020| and (7) of Subsection D of this section. | 0021| F. The state equalization guarantee distribution | 0022| shall be distributed prior to June 30 of each fiscal year. | 0023| The calculation shall be based on the local and federal | 0024| revenues specified in this section received from June 1 of the | 0025| previous fiscal year through May 31 of the fiscal year for | - 22 - 0001| which the state equalization guarantee distribution is being | 0002| computed. In the event that a district has received more | 0003| state equalization guarantee funds than its entitlement, a | 0004| refund shall be made by the district to the state general | 0005| fund. | 0006| G. Notwithstanding the methods of calculating the | 0007| state equalization guarantee distribution in this section and | 0008| Laws 1974, Chapter 8, Section 22, if a school district | 0009| received funds under Section 2391 of Title 42 USCA and if the | 0010| federal government takes into consideration grants authorized | 0011| by Sections ~[236 through 240]~ |7701 through 7714| of Title | 0012| 20 of the United States Code and all other revenues available | 0013| to the school district in determining the level of federal | 0014| support for the school district for the sixty-fourth and | 0015| succeeding fiscal years, the state equalization guarantee | 0016| distribution for school districts receiving funds under this | 0017| subsection shall be computed as follows: | 0018| fiscal year program cost prior fiscal year | 0019| excluding special education state equalization | 0020| for the year for which the x guarantee distribution | 0021| state equalization guarantee excluding special | 0022| |distribution is being computed| education | 0023| ||prior fiscal year program cost | 0024| excluding special education | 0025| plus special education funding in accordance with Paragraphs | - 23 - 0001| (1), (2) or (3) and (4) of Subsection D of this section and | 0002| Section 22-8-21 NMSA 1978 plus an amount that would be | 0003| produced by applying a rate of eight dollars forty-two and | 0004| one-half cents ($8.425) to each one thousand dollars ($1,000) | 0005| of net taxable value of property as defined in the Property | 0006| Tax Code for property taxation purposes in the school district | 0007| and to each one thousand dollars ($1,000) of the assessed | 0008| value of products severed and sold in the school district as | 0009| determined under the Oil and Gas Ad Valorem Production Tax Act | 0010| |and the Copper Production Ad Valorem Tax Act| and upon the | 0011| assessed value of equipment in the school district as | 0012| determined under the Oil and Gas Production Equipment Ad | 0013| Valorem Tax Act and then reduced by the total amount of | 0014| guaranteed energy savings contract payments, if any, that the | 0015| state superintendent determines will be made to the school | 0016| district from the ~[public school energy efficiency fund]~ | 0017| |public school utility conservation fund| during the fiscal | 0018| year for which the state equalization guarantee distribution | 0019| is being computed, equals the fiscal year state equalization | 0020| guarantee distribution for the year for which the state | 0021| equalization guarantee distribution is being computed. | 0022| If at any time grants from the federal government as | 0023| assistance to those areas affected by federal activity | 0024| authorized in accordance with Sections ~[236 through 240]~ | 0025| |7701 through 7714| of Title 20 of the United States Code | - 24 - 0001| (commonly known as "PL 874 funds") are reduced or are no | 0002| longer available, the state equalization guarantee | 0003| distribution shall be computed by the formula contained in | 0004| this subsection plus an increase by fifty percent of the | 0005| amount the prior year's | 0006| PL 874 funds exceed PL 874 funds for the year for which the | 0007| state equalization guarantee distribution is being computed." | 0008| Section 10. Section 22-8-31 NMSA 1978 (being Laws 1967, | 0009| Chapter 16, Section 84, as amended) is amended to read: | 0010| "22-8-31. STATE-SUPPORT RESERVE FUND.-- | 0011| A. The "state-support reserve fund" is created. | 0012| B. The state-support reserve fund shall be used | 0013| only to augment the appropriations for the state equalization | 0014| guarantee distribution |and the distributions pursuant to the | 0015| local Operational School Levy Act| in order to ~[insure]~ | 0016| |ensure|, to the extent of the amount undistributed in the | 0017| fund, that the maximum figures for such ~[distribution]~ | 0018| |distributions| established by law shall not be reduced. | 0019| C. The undistributed money in the state-support | 0020| reserve fund shall be invested by the state treasurer in | 0021| interest-bearing securities of the United States government or | 0022| in certificates of deposit in qualified banks and in savings | 0023| and ~[loans]~ |loan| associations whose deposits are insured | 0024| with an agency of the United States. The state treasurer may | 0025| deposit money from the state-support reserve fund or any other | - 25 - 0001| fund in one or more accounts with any such bank or federally | 0002| insured savings and loan association, but the state treasurer, | 0003| in any official capacity, shall not deposit money from | 0004| ~[said]~ |that| fund or any other fund in any one ~[such]~ | 0005| federally insured savings and loan association the aggregate | 0006| of which would exceed the amount of federal savings and loan | 0007| insurance corporation insurance for a single public account. | 0008| Income from these investments shall be periodically credited | 0009| to the general fund. | 0010| D. At least forty-five days before the money is | 0011| needed, the ~[chief]~ |state superintendent| shall notify the | 0012| state treasurer in writing of the amount that will be needed | 0013| for |the state equalization guarantee| distribution. |At | 0014| least twenty-five days before the money is needed, the state | 0015| superintendent shall notify the state treasurer in writing of | 0016| the amount that will be needed for transfer to the local | 0017| operational school fund for distribution pursuant to the Local | 0018| Operational School Levy Act. The state treasurer shall | 0019| transfer to the local operational school fund the amount | 0020| requested or the remaining unencumbered balance in the state- | 0021| support reserve fund after the state equalization guarantee | 0022| distribution amount has been subtracted, whichever is less.| | 0023| E. In the event that local or federal revenues as | 0024| defined in Section ~[77-6-19 NMSA 1953]~ |22-8-25 NMSA 1978| | 0025| are received after May 31 of the fiscal year for which the | - 26 - 0001| state equalization guarantee distribution is being computed | 0002| and it is therefore necessary to use money from the state- | 0003| support reserve fund to augment the appropriation for the | 0004| state equalization guarantee distribution, the ~[chief]~ | 0005| |state superintendent|, upon receipt by the school district of | 0006| the delayed local or federal revenues, shall deduct the | 0007| appropriate amount from the current state equalization | 0008| guarantee distribution to that school district and reimburse | 0009| the state-support reserve fund in the amount of the deduction. | 0010| F. It is the intent of the legislature that the | 0011| |state-support reserve| fund be reimbursed in the amount of | 0012| the yearly ~[distribution]~ |distributions| by appropriation | 0013| in the year following the distribution so that the fund at the | 0014| beginning of each fiscal year shall have a credit balance of | 0015| at least ten million dollars ($10,000,000). | 0016| G. Distribution from ~[this]~ |the state-support | 0017| reserve| fund shall be made in the same manner and on the same | 0018| basis as the state equalization guarantee distribution." | 0019| Section 11. EMERGENCY.--It is necessary for the public | 0020| peace, health and safety that this act take effect | 0021| immediately. | 0022|  |