44TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 1999

RELATING TO PUBLIC SCHOOLS; TRANSFERRING CERTAIN GAMING REVENUE TO THE PUBLIC SCHOOL CAPITAL OUTLAY FUND FOR EXPENDITURE FOR CRITICAL CAPITAL OUTLAY PURPOSES; AMENDING AND ENACTING SECTIONS OF THE NMSA 1978; MAKING AN APPROPRIATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 22-24-5 NMSA 1978 (being Laws 1975, Chapter 235, Section 5, as amended) is amended to read:

"22-24-5. FUND--DISTRIBUTION.--

A. Except as provided in Subsection C of this section, the council shall approve an application for grant assistance from the fund when the council determines that:

(1) a critical need exists requiring action;

(2) the residents of the school district have provided available resources to the school district to meet its capital outlay requirements;

(3) the school district has used its resources in a prudent manner;

(4) the school district is in a county or counties which have participated in a reappraisal program and the reappraised values are on the tax rolls or will be used for the tax year 1979 as certified by the property tax division of the taxation and revenue department;

(5) the school district has provided insurance for buildings of the school district in accordance with the provisions of Section 13-5-3 NMSA 1978;

(6) the school district is indebted at not less than seventy-five percent of the total debt authorized by law; and

(7) the school district has submitted a five-year facilities plan that includes enrollment projections.

B. The council shall consider all applications for assistance from the fund and, after a public hearing, shall either approve or deny the application. Applications for grant assistance shall only be accepted by the council after a district has complied with the provisions of this section. The council shall list all applications in order of priority, and all allocations shall be made on a priority basis; provided, however, except in the case of an emergency, that the order of priority shall first reflect those projects which have been previously funded but are not as yet completed, excluding expansion of those projects and contingent upon maintenance of the required local support.

C. Gaming revenues and gaming tax receipts transferred to the fund shall be segregated in a separate subaccount of the fund. Grants made with these revenues shall not be subject to the school district debt level requirement in Paragraph (6) of Subsection A of this section.

[C.] D. Money in the fund shall be disbursed by warrant of the department of finance and administration on vouchers signed by the secretary of finance and administration following certification by the council that the application has been approved."

Section 2. A new section of the Public School Capital Outlay Act is enacted to read:

"[NEW MATERIAL] TRANSFER OF GAMING REVENUE TO PUBLIC SCHOOL CAPITAL OUTLAY FUND.--The state treasurer shall transfer from the general fund to the public school capital outlay fund no later than thirty days after the last day of each calendar quarter an amount equal to the revenue deposited in the general fund in the preceding quarter pursuant to the revenue-sharing provisions of Section 11-13-2 NMSA 1978. The money transferred to the public school capital outlay fund shall be expended in any fiscal year as provided in the Public School Capital Outlay Act."

Section 3. A new section of the Tax Administration Act is enacted to read:

"[NEW MATERIAL] DISTRIBUTION--GAMING TAX.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the public school capital outlay fund in an amount equal to the net receipts from the gaming tax imposed and collected pursuant to Section 60-2E-47 NMSA 1978."

Section 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 1999.