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SENATE BILL 125
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Michael Padilla
AN ACT
RELATING TO PUBLIC SCHOOL CAPITAL OUTLAY; CREATING THE BUILDING
SYSTEM INNOVATION PROJECT INITIATIVE TO PROVIDE GRANT
ASSISTANCE FOR THE CONCERTED REPLACEMENT OF HEATING,
VENTILATION AND AIR CONDITIONING AND ELECTRICAL DISTRIBUTION
SYSTEMS TO EXTEND THE USEFUL LIFE OF A BUILDING, PROMOTE
STUDENT HEALTH AND SAFETY, PROMOTE ENVIRONMENTAL PROTECTION AND
REDUCE THE COSTS OF ENERGY CONSUMPTION; MAKING CONFORMING
AMENDMENTS TO THE PUBLIC SCHOOL CAPITAL OUTLAY ACT; MAKING AN
APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 22-24-4.6 NMSA 1978 (being Laws 2015,
Chapter 93, Section 3, as amended) is amended to read:
"22-24-4.6. BUILDING SYSTEM REPAIR, RENOVATION OR
REPLACEMENT.--
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A. The council shall develop guidelines for a
building system repair, renovation or replacement initiative
pursuant to the provisions of this section, and, except as
provided in Section 22-24-13 NMSA 1978, those guidelines shall
apply to all applications and grant assistance awards for
building system repair, renovation or replacement projects .
B. A school district [desiring a grant award
pursuant to this section shall submit ] may request grant
assistance for a building system repair, renovation or
replacement by submitting an application to the council. The
application shall include an assessment of the building system
that, in the opinion of the school district, the repair,
renovation or replacement of which would extend the useful life
of the building itself.
C. Upon receipt of an application , the authority
shall verify the assessment made by the school district and
rank the application with similar applications pursuant to a
methodology adopted by the council.
D. [After a public hearing and to the extent that
money is available in the fund for such purposes, the council
shall approve building system repair, renovation or replacement
projects on the established priority basis ] The council shall
review an application at a public hearing and, subject to
availability of money in the fund, approve grant assistance for
building system repair, renovation or replacement projects in
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accordance with the priorities adopted by the council ; provided
that no project shall be approved unless the council determines
that the school district is willing and able to pay the portion
of the total cost of the project that is not funded with grant
assistance from the fund.
E. The [state share] state's and school district's
shares of the total cost of an approved building system repair,
renovation or replacement project shall be calculated pursuant
to the methodology in Subsection B of Section 22-24-5 NMSA
1978.
F. A grant made pursuant to this section shall be
expended by the school district within three years of the grant
allocation."
SECTION 2. A new section of the Public School Capital
Outlay Act, Section 22-24-13 NMSA 1978, is enacted to read:
"22-24-13. [NEW MATERIAL ] BUILDING SYSTEM INNOVATION
PROJECT INITIATIVE.--
A. As used in this section, "building system
innovation project" means a building system replacement project
that involves the concerted replacement of a heating,
ventilation and air conditioning system and an electrical
distribution system.
B. Beginning July 1, 2025, a school district may
submit an application for grant assistance for a building
system innovation project to the council. The application
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shall include:
(1) an assessment of the existing heating,
ventilation and air conditioning and electrical distribution
systems; and
(2) a description of desired replacement
systems that, in the opinion of the school district, will
extend the useful life of the building, promote student health
and safety, promote environmental improvement and reduce the
costs of energy consumption.
C. The authority shall verify the assessment and
evaluate the description submitted with an application and rank
the application with other grant assistance applications for
building system innovation projects in accordance with council
rules.
D. The council shall review an application at a
public hearing and, subject to availability of money in the
fund for that purpose, approve the application if the council
determines that the building system innovation project is
likely to extend the useful life of the building, promote
student health and safety, promote environmental improvement
and reduce the costs of energy consumption.
E. The council shall prioritize applications for
building system innovation projects that:
(1) are eligible to receive federal funding;
(2) include the replacement of an evaporative
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cooling system; or
(3) utilize photovoltaic technology in the
electrical distribution system.
F. The state's and school district's shares of the
total cost of a project shall be calculated in accordance with
Subsection B of Section 22-24-5 NMSA 1978. The council shall
not approve an application unless it determines that the school
district is willing and able to pay the school district's share
of the total cost of a project.
G. Grant assistance awarded pursuant to this
section shall be expended by the school district within three
years from the date the council approved the application."
SECTION 3. APPROPRIATION.--Ten million dollars
($10,000,000) is appropriated from the general fund to the
public school capital outlay fund for expenditure in fiscal
year 2026 and subsequent fiscal years to provide grant
assistance for building system innovation projects. Any
unexpended or unencumbered balance remaining at the end of a
fiscal year shall not revert to the general fund.
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