NM
New Mexico House Bill HB277

New Mexico 2025 Regular Session

New Mexico House Bill HB277 Compare Versions

Only one version of the bill is available at this time.
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2828 HOUSE BILL 277
2929 57TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 2025
3030 INTRODUCED BY
3131 Tanya Mirabal Moya and Rebecca Dow and Raymundo Lara
3232 and Harlan Vincent and Jack Chatfield
3333 AN ACT
3434 RELATING TO PUBLIC SCHOOL CAPITAL OUTLAY; DECREASING THE
3535 MILLAGE REQUIRED FOR SCHOOL DISTRICTS WITH INSUFFICIENT BONDING
3636 CAPACITY.
3737 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
3838 SECTION 1. Section 22-24-5 NMSA 1978 (being Laws 1975,
3939 Chapter 235, Section 5, as amended) is amended to read:
4040 "22-24-5. PUBLIC SCHOOL CAPITAL OUTLAY PROJECTS--
4141 APPLICATION--GRANT ASSISTANCE.--
4242 A. Applications for grant assistance, approval of
4343 applications, prioritization of projects and grant awards shall
4444 be conducted pursuant to the provisions of this section.
4545 B. Except as provided in Sections 22-24-4.3,
4646 22-24-5.4 and 22-24-5.6 NMSA 1978, the following provisions
4747 govern grant assistance from the fund for a public school
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7575 capital outlay project not wholly funded pursuant to Section
7676 22-24-4.1 NMSA 1978:
7777 (1) all school districts are eligible to apply
7878 for funding from the fund, regardless of percentage of
7979 indebtedness;
8080 (2) priorities for funding shall be determined
8181 by using the statewide adequacy standards developed pursuant to
8282 Subsection C of this section; provided that:
8383 (a) the council shall apply the
8484 standards to charter schools to the same extent that they are
8585 applied to other public schools;
8686 (b) the council may award grants
8787 annually to school districts for the purpose of repairing,
8888 renovating or replacing public school building systems in
8989 existing buildings as identified in Section 22-24-4.6
9090 NMSA 1978;
9191 (c) the council shall adopt and apply
9292 adequacy standards appropriate to the unique needs of the
9393 constitutional special schools; and
9494 (d) in an emergency in which the health
9595 or safety of students or school personnel is at immediate risk
9696 or in which there is a threat of significant property damage,
9797 the council may award grant assistance for a project using
9898 criteria other than the statewide adequacy standards;
9999 (3) the council shall establish criteria to be
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128128 used in public school capital outlay projects that receive
129129 grant assistance pursuant to the Public School Capital
130130 Outlay Act. In establishing the criteria, the council shall
131131 consider:
132132 (a) the feasibility of using design,
133133 build and finance arrangements for public school capital outlay
134134 projects;
135135 (b) the potential use of more durable
136136 construction materials that may reduce long-term operating
137137 costs;
138138 (c) concepts that promote efficient but
139139 flexible utilization of space; and
140140 (d) any other financing or construction
141141 concept that may maximize the dollar effect of the state grant
142142 assistance;
143143 (4) no more than ten percent of the combined
144144 total of grants in a funding cycle shall be used for
145145 retrofitting existing facilities for technology infrastructure;
146146 (5) no later than May 1 of each calendar year,
147147 the phase two formula value shall be calculated for each school
148148 district in accordance with the following procedure:
149149 (a) the sum of the final prior five
150150 years net taxable value for a school district multiplied by
151151 nine ten-thousandths for that school district is calculated for
152152 each school district;
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181181 (b) the maximum allowable gross square
182182 foot per student multiplied by the replacement cost per square
183183 foot divided by forty-five is calculated for each school
184184 district;
185185 (c) the value calculated pursuant to
186186 Subparagraph (a) of this paragraph divided by the value
187187 calculated pursuant to Subparagraph (b) of this paragraph is
188188 calculated for each school district;
189189 (d) in those instances in which the
190190 calculation pursuant to Subparagraph (c) of this paragraph
191191 yields a value equal to or greater than one, the phase two
192192 formula value shall be zero for the subject school district;
193193 (e) in those instances in which the
194194 calculation pursuant to Subparagraph (c) of this paragraph
195195 yields a value of ninety-hundredths or more but less than one,
196196 the phase two formula value shall be one minus the value
197197 calculated in Subparagraph (c) of this paragraph; and
198198 (f) in those instances in which the
199199 calculation pursuant to Subparagraph (c) of this paragraph
200200 yields a value less than ninety-hundredths, the phase two
201201 formula value shall be one minus the value calculated in
202202 Subparagraph (c) of this paragraph plus the school district
203203 population density factor;
204204 (6) the state share of a project approved by
205205 the council shall be funded within available resources pursuant
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234234 to the provisions of this paragraph. Except as provided in
235235 Section 22-24-5.7 NMSA 1978 and except as adjusted pursuant to
236236 Paragraph (8), (9) or (10) of this subsection, the amount to be
237237 distributed from the fund for an approved project shall equal
238238 the total project cost multiplied by the following percentage,
239239 except that in no case shall the state share be less than six
240240 percent:
241241 (a) for fiscal year 2024 through fiscal
242242 year 2026, the percentage shall be the phase two formula value
243243 plus a percentage equal to one-third of the difference between
244244 one and the phase two formula value; provided that, for school
245245 districts with fewer than 200 MEM, the percentage shall be the
246246 phase two formula value plus a percentage equal to one-half of
247247 the difference between one and the phase two formula; and
248248 (b) for fiscal year 2027 and thereafter,
249249 the percentage shall be the phase two formula value;
250250 (7) as used in this subsection:
251251 (a) "governmental entity" includes an
252252 Indian nation, tribe or pueblo;
253253 (b) "phase two formula value" for a
254254 state-chartered charter school means the phase two formula
255255 value calculated pursuant to Paragraph (5) of this subsection
256256 for the school district in which the state-chartered charter
257257 school is physically located;
258258 (c) "subject school district" means the
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287287 school district that has submitted the application for funding
288288 and in which the approved public school capital outlay project
289289 will be located; and
290290 (d) "total project cost" means the total
291291 amount necessary to complete the public school capital outlay
292292 project less any insurance reimbursement received by the school
293293 district for the project;
294294 (8) the amount calculated pursuant to
295295 Paragraph (6) of this subsection may be increased by an
296296 additional five percent if the council finds that the subject
297297 school district has been exemplary in implementing and
298298 maintaining a preventive maintenance program. The council
299299 shall adopt such rules as are necessary to implement the
300300 provisions of this paragraph;
301301 (9) the council may adjust the amount of local
302302 share otherwise required if it determines that a school
303303 district has made a good-faith effort to use all of its local
304304 resources. Before making any adjustment to the local share,
305305 the council shall consider whether:
306306 (a) the school district has insufficient
307307 bonding capacity over the next four years to provide the local
308308 match necessary to complete the project and, for all
309309 educational purposes, has a residential property tax rate of at
310310 least [ten dollars ($10.00) ] eight dollars ($8.00) on each one
311311 thousand dollars ($1,000) of taxable value, as measured by the
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340340 sum of all rates imposed by resolution of the local school
341341 board plus rates set to pay interest and principal on
342342 outstanding school district general obligation bonds;
343343 (b) the school district: 1) has fewer
344344 than an average of eight hundred full-time-equivalent students
345345 on the second and third reporting dates of the prior school
346346 year; 2) has at least seventy percent of its students eligible
347347 for free or reduced-fee lunch; 3) has a phase two formula value
348348 calculated pursuant to Paragraph (5) of this subsection that
349349 would be greater than fifty percent; and 4) for all educational
350350 purposes, has a residential property tax rate of at least seven
351351 dollars ($7.00) on each one thousand dollars ($1,000) of
352352 taxable value, as measured by the sum of all rates imposed by
353353 resolution of the local school board plus rates set to pay
354354 interest and principal on outstanding school district general
355355 obligation bonds; or
356356 (c) the school district: 1) has an
357357 enrollment growth rate over the previous school year of at
358358 least two and one-half percent; 2) pursuant to its five-year
359359 facilities plan, will be building a new school within the next
360360 two years; and 3) for all educational purposes, has a
361361 residential property tax rate of at least ten dollars ($10.00)
362362 on each one thousand dollars ($1,000) of taxable value, as
363363 measured by the sum of all rates imposed by resolution of the
364364 local school board plus rates set to pay interest and principal
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393393 on outstanding school district general obligation bonds;
394394 (10) the local match for the constitutional
395395 special schools shall be set at fifty percent for projects that
396396 qualify under the educational adequacy category and one hundred
397397 percent for projects that qualify in the support spaces
398398 category; provided that the council may adjust or waive the
399399 amount of any direct appropriation offset to or local share
400400 required for the constitutional special schools if an applicant
401401 constitutional special school has insufficient or no local
402402 resources available; and
403403 (11) no application for grant assistance from
404404 the fund shall be approved unless the council determines that:
405405 (a) the public school capital outlay
406406 project is needed and included in the school district's five-
407407 year facilities plan among its top priorities;
408408 (b) the school district has used its
409409 capital resources in a prudent manner;
410410 (c) the school district has provided
411411 insurance for buildings of the school district in accordance
412412 with the provisions of Section 13-5-3 NMSA 1978;
413413 (d) the school district has submitted a
414414 five-year facilities plan that includes: 1) enrollment
415415 projections; 2) a current preventive maintenance plan that has
416416 been approved by the council pursuant to Section 22-24-5.3 NMSA
417417 1978 and that is followed by each public school in the
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446446 district; 3) the capital needs of charter schools located in
447447 the school district; and 4) projections for the facilities
448448 needed in order to maintain a full-day kindergarten program;
449449 (e) the school district is willing and
450450 able to pay any portion of the total cost of the public school
451451 capital outlay project that, according to Paragraph (6), (8) or
452452 (9) of this subsection, is not funded with grant assistance
453453 from the fund;
454454 (f) the application includes the capital
455455 needs of any charter school located in the school district or
456456 the school district has shown that the facilities of the
457457 charter school have a smaller deviation from the statewide
458458 adequacy standards than other district facilities included in
459459 the application; and
460460 (g) the school district has agreed, in
461461 writing, to comply with any reporting requirements or
462462 conditions imposed by the council pursuant to Section 22-24-5.1
463463 NMSA 1978.
464464 C. After consulting with the public school capital
465465 outlay oversight task force and other experts, the council
466466 shall regularly review and update statewide adequacy standards
467467 applicable to all school districts. The standards shall
468468 establish the acceptable level for the physical condition and
469469 capacity of buildings, the educational suitability of
470470 facilities, the need for career-technical education facilities
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499499 or classrooms and the need for education technology
500500 infrastructure. Except as otherwise provided in the Public
501501 School Capital Outlay Act, the amount of outstanding deviation
502502 from the standards shall be used by the council in evaluating
503503 and prioritizing public school capital outlay projects.
504504 D. The acquisition of a facility by a school
505505 district or charter school pursuant to a financing agreement
506506 that provides for lease payments with an option to purchase for
507507 a price that is reduced according to lease payments made may be
508508 considered a public school capital outlay project and eligible
509509 for grant assistance under this section pursuant to the
510510 following criteria:
511511 (1) no grant shall be awarded unless the
512512 council determines that, at the time of exercising the option
513513 to purchase the facility by the school district or charter
514514 school, the facility will equal or exceed the statewide
515515 adequacy standards and the building standards for public school
516516 facilities;
517517 (2) no grant shall be awarded unless the
518518 school district and the need for the facility meet all of the
519519 requirements for grant assistance pursuant to the Public School
520520 Capital Outlay Act;
521521 (3) the total project cost shall equal the
522522 total payments that would be due under the agreement if the
523523 school district or charter school would eventually acquire
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552552 title to the facility;
553553 (4) the portion of the total project cost to
554554 be paid from the fund may be awarded as one grant, but
555555 disbursements from the fund shall be made from time to time as
556556 lease payments become due;
557557 (5) the portion of the total project cost to
558558 be paid by the school district or charter school may be paid
559559 from time to time as lease payments become due; and
560560 (6) neither a grant award nor any provision of
561561 the Public School Capital Outlay Act creates a legal obligation
562562 for the school district or charter school to continue the lease
563563 from year to year or to purchase the facility.
564564 E. In order to encourage private capital investment
565565 in the construction of public school facilities, the purchase
566566 of a privately owned school facility that is, at the time of
567567 application, in use by a school district may be considered a
568568 public school capital outlay project and eligible for grant
569569 assistance pursuant to this section if the council finds that:
570570 (1) at the time of the initial use by the
571571 school district, the facility to be purchased equaled or
572572 exceeded the statewide adequacy standards and the building
573573 standards for public school facilities;
574574 (2) at the time of application, attendance at
575575 the facility to be purchased is at seventy-five percent or
576576 greater of design capacity and the attendance at other schools
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605605 in the school district that the students at the facility would
606606 otherwise attend is at eighty-five percent or greater of design
607607 capacity; and
608608 (3) the school district and the capital outlay
609609 project meet all of the requirements for grant assistance
610610 pursuant to the Public School Capital Outlay Act; provided
611611 that, when determining the deviation from the statewide
612612 adequacy standards for the purposes of evaluating and
613613 prioritizing the project, the students using the facility shall
614614 be deemed to be attending other schools in the school district.
615615 F. It is the intent of the legislature that grant
616616 assistance made pursuant to this section allows every school
617617 district to meet the standards developed pursuant to Subsection
618618 C of this section; provided, however, that nothing in the
619619 Public School Capital Outlay Act or the development of
620620 standards pursuant to that act prohibits a school district from
621621 using other funds available to the district to exceed the
622622 statewide adequacy standards.
623623 G. Upon request, the council shall work with, and
624624 provide assistance and information to, the public school
625625 capital outlay oversight task force.
626626 H. The council may establish committees or task
627627 forces, not necessarily consisting of council members, and may
628628 use the committees or task forces, as well as existing agencies
629629 or organizations, to conduct studies, conduct surveys, submit
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658658 recommendations or otherwise contribute expertise from the
659659 public schools, programs, interest groups and segments of
660660 society most concerned with a particular aspect of the
661661 council's work.
662662 I. Upon the recommendation of the authority, the
663663 council shall develop building standards for public school
664664 facilities and shall promulgate other such rules as are
665665 necessary to carry out the provisions of the Public School
666666 Capital Outlay Act.
667667 J. No later than December 15 of each year, the
668668 council shall prepare a report summarizing its activities
669669 during the previous fiscal year. The report shall describe in
670670 detail all projects funded, the progress of projects previously
671671 funded but not completed, the criteria used to prioritize and
672672 fund projects and all other council actions. The report shall
673673 be submitted to the public education commission, the governor,
674674 the legislative finance committee, the legislative education
675675 study committee and the legislature.
676676 K. For any school district that received a
677677 standards- or systems-based award from the council in fiscal
678678 year 2023, the state share for any future phase of the project
679679 for which funding has not yet been awarded shall be the amount
680680 calculated pursuant to Subsection B of this section for fiscal
681681 year 2024, regardless of the state share at the time of the
682682 initial award.
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711711 L. As used in this section:
712712 (1) "MEM" means membership; and
713713 (2) "membership" means the total enrollment of
714714 qualified students on the current roll of a class or school on
715715 a specified day. The current roll is established by the
716716 addition of original entries and reentries minus withdrawals.
717717 Withdrawals of students, in addition to students formally
718718 withdrawn from the public school, include students absent from
719719 the public school for as many as ten consecutive school days;
720720 provided that withdrawals do not include students in need of
721721 early intervention and habitual truants the school district is
722722 required to intervene with and keep in an educational setting."
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