NM
New Mexico Senate Bill SB401

New Mexico 2025 Regular Session

New Mexico Senate Bill SB401 Compare Versions

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1-SB 401
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28+SENATE BILL 401
29+57
30+TH LEGISLATURE
31+-
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33+STATE
34+
35+OF
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37+NEW
38+
39+MEXICO
40+
41+-
42+ FIRST SESSION
43+,
44+
45+2025
46+INTRODUCED BY
47+Michael Padilla and Debra M. Sariñana
2848 AN ACT
2949 RELATING TO BROADBAND; AMENDING THE SEVERANCE TAX BONDING ACT
30-TO PROVIDE FOR THE ISSUANCE OF SUPPLEMENTAL SEVERANCE TAX
31-BONDS FOR EDUCATION TECHNOLOGY INFRASTRUCTURE; AMENDING THE
32-BROADBAND ACCESS AND EXPANSION ACT; ADDING DEFINITIONS;
33-CREATING THE EDUCATION TECHNOLOGY INFRASTRUCTURE FUND;
34-PROVIDING FOR RULEMAKING; AUTHORIZING GRANTS; TRANSFERRING
35-THE PUBLIC SCHOOL FACILITIES AUTHORITY'S BROADBAND DEPLOYMENT
36-AND CONNECTIVITY PROGRAM AND STATEWIDE EDUCATION NETWORK TO
37-THE OFFICE OF BROADBAND ACCESS AND EXPANSION; MAKING AN
38-APPROPRIATION.
50+TO PROVIDE FOR THE ISSUANCE OF SUPPLEMENTAL SEVERANCE TAX BONDS
51+FOR EDUCATION TECHNOLOGY INFRASTRUCTURE; AMENDING THE BROADBAND
52+ACCESS AND EXPANSION ACT; ADDING DEFINITIONS; CREATING THE
53+EDUCATION TECHNOLOGY INFRASTRUCTURE FUND; PROVIDING FOR
54+RULEMAKING; AUTHORIZING GRANTS; TRANSFERRING THE PUBLIC SCHOOL
55+FACILITIES AUTHORITY'S BROADBAND DEPLOYMENT AND CONNECTIVITY
56+PROGRAM AND STATEWIDE EDUCATION NETWORK TO THE OFFICE OF
57+BROADBAND ACCESS AND EXPANSION; MAKING AN APPROPRIATION.
3958 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
4059 SECTION 1. Section 7-27-12 NMSA 1978 (being Laws 1961,
4160 Chapter 5, Section 10, as amended) is amended to read:
4261 "7-27-12. WHEN SEVERANCE TAX BONDS TO BE ISSUED.--
43-A. The state board of finance shall issue and
44-sell all severance tax bonds when authorized to do so by any
45-law that sets out the amount of the issue and the recipient
46-of the money.
47-B. The state board of finance shall also issue
48-and sell severance tax bonds authorized by Sections 72-14-36
62+A. The state board of finance shall issue and sell
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90+all severance tax bonds when authorized to do so by any law
91+that sets out the amount of the issue and the recipient of the
92+money.
93+B. The state board of finance shall also issue and
94+sell severance tax bonds authorized by Sections 72-14-36
4995 through 72-14-42 NMSA 1978, and such authority as has been
5096 given to the interstate stream commission to issue and sell
51-such bonds is transferred to the state board of finance. SB 401
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78-The state board of finance shall issue and sell all severance
79-tax bonds only when so instructed by resolution of the
80-governing body or by written direction from an authorized
81-officer of the recipient of the bond money.
97+such bonds is transferred to the state board of finance. The
98+state board of finance shall issue and sell all severance tax
99+bonds only when so instructed by resolution of the governing
100+body or by written direction from an authorized officer of the
101+recipient of the bond money.
82102 C. Except as provided in Subsection D of this
83-section, proceeds from supplemental severance tax bonds
84-shall be used only for public school capital outlay projects
85-pursuant to the Public School Capital Outlay Act or the
86-Public School Capital Improvements Act or education
87-technology infrastructure projects pursuant to the Broadband
88-Access and Expansion Act.
89-D. Proceeds from supplemental severance tax
90-bonds issued pursuant to Paragraph (2) of Subsection A of
91-Section 19 of Chapter 6 of Laws 1999 (1st S.S.) and Laws 2017
92-(1st S.S.), Chapter 1, Section 1 shall be used for the
103+section, proceeds from supplemental severance tax bonds shall
104+be used only for public school capital outlay projects pursuant
105+to the Public School Capital Outlay Act or the Public School
106+Capital Improvements Act or education technology infrastructure
107+projects pursuant to the Broadband Access and Expansion Act .
108+D. Proceeds from supplemental severance tax bonds
109+issued pursuant to Paragraph (2) of Subsection A of Section 19
110+of Chapter 6 of Laws 1999 (1st S.S.) and Laws 2017 (1st S.S.),
111+Chapter 1, Section 1 [of this 2017 act ] shall be used for the
93112 purposes specified in those provisions.
94113 E. Except as provided in Subsection F of this
95-section, the state board of finance shall issue and sell
96-all supplemental severance tax bonds when so instructed by
97-resolution of the public school capital outlay council
98-pursuant to Section 7-27-12.2 NMSA 1978 or by certification
99-by the director of the office of broadband access and
100-expansion pursuant to Section 7-27-12.6 NMSA 1978.
114+section, the state board of finance shall issue and sell all
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143+supplemental severance tax bonds when so instructed by
144+resolution of the public school capital outlay council pursuant
145+to Section 7-27-12.2 NMSA 1978 or by certification by the
146+director of the office of broadband access and expansion
147+pursuant to Section 7-27-12.6 NMSA 1978 .
101148 F. The state board of finance shall issue and sell
102-the supplemental severance tax bonds authorized by: SB 401
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129-(1) Paragraph (2) of Subsection A of
130-Section 19 of Chapter 6 of Laws 1999 (1st S.S.) when so
131-instructed by resolution of the commission on higher
132-education; and
133-(2) Laws 2017 (1st S.S.), Chapter 1,
134-Section 1 upon certification by the secretary of finance
135-and administration of the need to use proceeds from those
136-bonds as outlined in that section."
149+the supplemental severance tax bonds authorized by:
150+(1) Paragraph (2) of Subsection A of Section
151+19 of Chapter 6 of Laws 1999 (1st S.S.) when so instructed by
152+resolution of the commission on higher education; and
153+(2) Laws 2017 (1st S.S.), Chapter 1 , Section 1
154+[of this 2017 act] upon certification by the secretary of
155+finance and administration of the need to use proceeds from
156+those bonds as outlined in that section."
137157 SECTION 2. A new section of the Severance Tax Bonding
138158 Act, Section 7-27-12.6 NMSA 1978, is enacted to read:
139-"7-27-12.6. SUPPLEMENTAL SEVERANCE TAX BONDS--EDUCATION
140-TECHNOLOGY INFRASTRUCTURE.--
159+"7-27-12.6. [NEW MATERIAL ] SUPPLEMENTAL SEVERANCE TAX
160+BONDS--EDUCATION TECHNOLOGY INFRASTRUCTURE.--
141161 A. The director of the office of broadband access
142162 and expansion may certify that up to ten million dollars
143163 ($10,000,000) of proceeds of supplemental severance tax bonds
144164 per fiscal year are needed for expenditures relating to
145165 education technology infrastructure pursuant to the Broadband
146-Access and Expansion Act. The certification shall specify
147-the total amount needed.
166+Access and Expansion Act. The certification shall specify the
167+total amount needed.
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148196 B. The state board of finance may issue and sell
149197 supplemental severance tax bonds in compliance with the
150198 Severance Tax Bonding Act when the director of the office of
151199 broadband access and expansion certifies the need for the
152200 issuance of the bonds pursuant to the Broadband Access and
153-Expansion Act. The amount of the bonds sold at each sale SB 401
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180-shall not exceed the lesser of:
181-(1) the total of the amounts certified by
182-the director of the office of broadband access and expansion;
183-or
184-(2) the amount that may be issued pursuant
185-to the restrictions of Section 7-27-14 NMSA 1978.
201+Expansion Act. The amount of the bonds sold at each sale shall
202+not exceed the lesser of:
203+(1) the total of the amounts certified by the
204+director of the office of broadband access and expansion; or
205+(2) the amount that may be issued pursuant to
206+the restrictions of Section 7-27-14 NMSA 1978.
186207 C. The state board of finance shall schedule the
187208 issuance and sale of the bonds in the most expeditious and
188209 economical manner possible.
189210 D. The proceeds from the sale of the bonds are
190211 appropriated to the education technology infrastructure fund
191-for the purposes of the fund.
192-E. The provisions of this section shall be
193-repealed effective July 1, 2030."
212+for the purposes of the fund."
194213 SECTION 3. Section 22-24-4 NMSA 1978 (being Laws 1975,
195214 Chapter 235, Section 4, as amended) is amended to read:
196215 "22-24-4. PUBLIC SCHOOL CAPITAL OUTLAY FUND CREATED--
197216 USE.--
198217 A. The "public school capital outlay fund" is
199218 created. Balances remaining in the fund at the end of each
200219 fiscal year shall not revert.
201220 B. Except as provided in Subsections G and I
202-through N of this section, money in the fund may be used only
203-for capital expenditures deemed necessary by the council for
204-an adequate educational program. SB 401
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231-C. The council may authorize the purchase by
232-the authority of portable classrooms to be loaned to school
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249+through [O] N of this section, money in the fund may be used
250+only for capital expenditures deemed necessary by the council
251+for an adequate educational program.
252+C. The council may authorize the purchase by the
253+authority of portable classrooms to be loaned to school
233254 districts to meet a temporary requirement. Payment for these
234-purchases shall be made from the fund. Title to and custody
235-of the portable classrooms shall rest in the authority.
236-The council shall authorize the lending of the portable
237-classrooms to school districts upon request and upon finding
238-that sufficient need exists. Application for use or return
239-of state-owned portable classroom buildings shall be
240-submitted by school districts to the council. Expenses of
241-maintenance of the portable classrooms while in the custody
242-of the authority shall be paid from the fund; expenses of
243-maintenance and insurance of the portable classrooms while in
244-the custody of a school district shall be the responsibility
245-of the school district. The council may authorize the
246-permanent disposition of the portable classrooms by the
247-authority with prior approval of the state board of finance.
255+purchases shall be made from the fund. Title to and custody of
256+the portable classrooms shall rest in the authority. The
257+council shall authorize the lending of the portable classrooms
258+to school districts upon request and upon finding that
259+sufficient need exists. Application for use or return of
260+state-owned portable classroom buildings shall be submitted by
261+school districts to the council. Expenses of maintenance of
262+the portable classrooms while in the custody of the authority
263+shall be paid from the fund; expenses of maintenance and
264+insurance of the portable classrooms while in the custody of a
265+school district shall be the responsibility of the school
266+district. The council may authorize the permanent disposition
267+of the portable classrooms by the authority with prior approval
268+of the state board of finance.
248269 D. Applications for assistance from the fund shall
249-be made by school districts to the council in accordance
250-with requirements of the council. Except as provided in
251-Subsection K of this section, the council shall require as
252-a condition of application that a school district have a
253-current five-year facilities plan that shall include a
254-current preventive maintenance plan to which the school
255-adheres for each public school in the school district. SB 401
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270+be made by school districts to the council in accordance with
271+requirements of the council. Except as provided in Subsection
272+K of this section, the council shall require as a condition of
273+application that a school district have a current five-year
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302+facilities plan that shall include a current preventive
303+maintenance plan to which the school adheres for each public
304+school in the school district.
282305 E. The council shall review all requests for
283306 assistance from the fund and shall allocate funds only for
284307 those capital outlay projects that meet the criteria of the
285308 Public School Capital Outlay Act.
286309 F. Money in the fund shall be disbursed by warrant
287310 of the department of finance and administration on vouchers
288-signed by the secretary of finance and administration
289-following certification by the council that an application
290-has been approved or an expenditure has been ordered by
291-a court pursuant to Section 22-24-5.4 NMSA 1978. At the
292-discretion of the council, money for a project shall be
293-distributed as follows:
294-(1) up to ten percent of the portion of
295-the project cost funded with distributions from the fund or
296-five percent of the total project cost, whichever is greater,
297-may be paid to the school district before work commences with
298-the balance of the grant award made on a cost-reimbursement
299-basis; or
311+signed by the secretary of finance and administration following
312+certification by the council that an application has been
313+approved or an expenditure has been ordered by a court pursuant
314+to Section 22-24-5.4 NMSA 1978. At the discretion of the
315+council, money for a project shall be distributed as follows:
316+(1) up to ten percent of the portion of the
317+project cost funded with distributions from the fund or five
318+percent of the total project cost, whichever is greater, may be
319+paid to the school district before work commences with the
320+balance of the grant award made on a cost-reimbursement basis;
321+or
300322 (2) the council may authorize payments
301323 directly to the contractor.
302324 G. Balances in the fund may be annually
303325 appropriated for the core administrative functions of the
304326 authority pursuant to the Public School Capital Outlay Act,
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305355 and, in addition, balances in the fund may be expended by the
306-authority, upon approval of the council, for project SB 401
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333-management expenses; provided that:
356+authority, upon approval of the council, for project management
357+expenses; provided that:
334358 (1) the total annual expenditures from the
335359 fund for the core administrative functions pursuant to this
336-subsection shall not exceed five percent of the average
337-annual grant assistance authorized from the fund during the
338-five previous fiscal years; and
360+subsection shall not exceed five percent of the average annual
361+grant assistance authorized from the fund during the five
362+previous fiscal years; and
339363 (2) any unexpended or unencumbered balance
340364 remaining at the end of a fiscal year from the expenditures
341365 authorized in this subsection shall revert to the fund.
342366 H. The fund may be expended by the council for
343367 building system repair, renovation or replacement initiatives
344368 with projects to be identified by the council pursuant to
345369 Section 22-24-4.6 NMSA 1978; provided that money allocated
346370 pursuant to this subsection shall be expended within three
347371 years of the allocation.
348372 I. The fund shall be expended annually by the
349373 council for grants to school districts for the purpose of
350374 making lease payments for facilities, including facilities
351375 leased by charter schools. The grants shall be made upon
352376 application by the school districts and pursuant to rules
353-adopted by the council; provided that an application on
354-behalf of a charter school shall be made by the school
355-district, but, if the school district fails to make an
356-application on behalf of a charter school, the charter school
357-may submit its own application. The following criteria shall SB 401
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384-apply to the grants:
385-(1) the amount of a grant to a school
386-district or charter school shall not exceed:
377+adopted by the council; provided that an application on behalf
378+of a charter school shall be made by the school district, but,
379+if the school district fails to make an application on behalf
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408+of a charter school, the charter school may submit its own
409+application. The following criteria shall apply to the grants:
410+(1) the amount of a grant to a school district
411+or charter school shall not exceed:
387412 (a) the actual annual lease payments
388413 owed for leasing a facility; or
389414 (b) seven hundred dollars ($700)
390415 multiplied by the MEM using the leased facilities; provided
391416 that in fiscal year 2009 and in each subsequent fiscal year,
392-this amount shall be adjusted by the percentage change
393-between the penultimate calendar year and the immediately
394-preceding calendar year of the consumer price index for the
395-United States, all items, as published by the United States
396-department of labor;
397-(2) a grant received for the lease payments
398-of a charter school may be used by that charter school as a
399-state match necessary to obtain federal grants pursuant to
400-the federal Every Student Succeeds Act;
417+this amount shall be adjusted by the percentage change between
418+the penultimate calendar year and the immediately preceding
419+calendar year of the consumer price index for the United
420+States, all items, as published by the United States department
421+of labor;
422+(2) a grant received for the lease payments of
423+a charter school may be used by that charter school as a state
424+match necessary to obtain federal grants pursuant to the
425+federal Every Student Succeeds Act;
401426 (3) at the end of each fiscal year, any
402-unexpended or unencumbered balance of the grant shall revert
403-to the fund;
404-(4) no grant shall be made for lease
405-payments due pursuant to a financing agreement under which
406-the facilities may be purchased for a price that is reduced
427+unexpended or unencumbered balance of the grant shall revert to
428+the fund;
429+(4) no grant shall be made for lease payments
430+due pursuant to a financing agreement under which the
431+facilities may be purchased for a price that is reduced
407432 according to the lease payments made unless:
408-(a) the agreement has been approved SB 401
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435-pursuant to the provisions of the Public School Lease
436-Purchase Act; and
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461+(a) the agreement has been approved
462+pursuant to the provisions of the Public School Lease Purchase
463+Act; and
437464 (b) the facilities are leased by a
438465 charter school;
439-(5) if the lease payments are made pursuant
440-to a financing agreement under which the facilities may be
466+(5) if the lease payments are made pursuant to
467+a financing agreement under which the facilities may be
441468 purchased for a price that is reduced according to the lease
442-payments made, neither a grant nor any provision of the
443-Public School Capital Outlay Act creates a legal obligation
444-for the school district or charter school to continue the
445-lease from year to year or to purchase the facilities nor
446-does it create a legal obligation for the state to make
447-subsequent grants pursuant to the provisions of this
448-subsection; and
469+payments made, neither a grant nor any provision of the Public
470+School Capital Outlay Act creates a legal obligation for the
471+school district or charter school to continue the lease from
472+year to year or to purchase the facilities nor does it create a
473+legal obligation for the state to make subsequent grants
474+pursuant to the provisions of this subsection; and
449475 (6) as used in this subsection:
450-(a) "MEM" means: 1) the average
451-full-time-equivalent enrollment using leased facilities on
452-the second and third reporting dates of the prior school
453-year; or 2) in the case of an approved charter school that
454-has not commenced classroom instruction, the estimated
455-full-time-equivalent enrollment that will use leased
456-facilities in the first year of instruction, as shown in the
457-approved charter school application; provided that, after the
458-second reporting date of the current school year, the MEM
459-shall be adjusted to reflect the full-time-equivalent SB 401
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486-enrollment on that date; and
476+(a) "MEM" means: 1) the average full-
477+time-equivalent enrollment using leased facilities on the
478+second and third reporting dates of the prior school year; or
479+2) in the case of an approved charter school that has not
480+commenced classroom instruction, the estimated full-time-
481+equivalent enrollment that will use leased facilities in the
482+first year of instruction, as shown in the approved charter
483+school application; provided that, after the second reporting
484+date of the current school year, the MEM shall be adjusted to
485+reflect the full-time-equivalent enrollment on that date; and
486+.230058.2
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487514 (b) "facilities" includes the space
488515 needed for school activities.
489516 J. In addition to other authorized expenditures
490517 from the fund, up to one percent of the average grant
491518 assistance authorized from the fund during the three previous
492519 fiscal years may be expended in each fiscal year by the
493520 authority to pay the state fire marshal, the construction
494-industries division of the regulation and licensing
495-department and local jurisdictions having authority from the
496-state to permit and inspect projects for expenditures made to
497-permit and inspect projects funded in whole or in part under
498-the Public School Capital Outlay Act. The authority may
499-enter into contracts with the state fire marshal, the
500-construction industries division or the appropriate local
501-authorities to carry out the provisions of this subsection.
502-Such a contract may provide for initial estimated payments
503-from the fund prior to the expenditures if the contract also
504-provides for additional payments from the fund if the actual
505-expenditures exceed the initial payments and for repayments
506-back to the fund if the initial payments exceed the actual
507-expenditures. Money distributed from the fund to the state
508-fire marshal or the construction industries division pursuant
509-to this subsection shall be used to supplement, rather than
510-supplant, appropriations to those entities. SB 401
511-Page 11
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521+industries division of the regulation and licensing department
522+and local jurisdictions having authority from the state to
523+permit and inspect projects for expenditures made to permit and
524+inspect projects funded in whole or in part under the Public
525+School Capital Outlay Act. The authority may enter into
526+contracts with the state fire marshal, the construction
527+industries division or the appropriate local authorities to
528+carry out the provisions of this subsection. Such a contract
529+may provide for initial estimated payments from the fund prior
530+to the expenditures if the contract also provides for
531+additional payments from the fund if the actual expenditures
532+exceed the initial payments and for repayments back to the fund
533+if the initial payments exceed the actual expenditures. Money
534+distributed from the fund to the state fire marshal or the
535+construction industries division pursuant to this subsection
536+shall be used to supplement, rather than supplant,
537+appropriations to those entities.
537538 K. Pursuant to guidelines established by the
538-council, allocations from the fund may be made to assist
539-school districts in developing and updating five-year
540-facilities plans required by the Public School Capital Outlay
541-Act; provided that:
539+.230058.2
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567+council, allocations from the fund may be made to assist school
568+districts in developing and updating five-year facilities plans
569+required by the Public School Capital Outlay Act; provided
570+that:
542571 (1) no allocation shall be made unless the
543-council determines that the school district is willing and
544-able to pay the portion of the total cost of developing or
545-updating the plan that is not funded with the allocation
546-from the fund. Except as provided in Paragraph (2) of this
547-subsection, the portion of the total cost to be paid with the
548-allocation from the fund shall be determined pursuant to the
549-methodology in Subsection B of Section 22-24-5 NMSA 1978; or
572+council determines that the school district is willing and able
573+to pay the portion of the total cost of developing or updating
574+the plan that is not funded with the allocation from the fund.
575+Except as provided in Paragraph (2) of this subsection, the
576+portion of the total cost to be paid with the allocation from
577+the fund shall be determined pursuant to the methodology in
578+Subsection B of Section 22-24-5 NMSA 1978; or
550579 (2) the allocation from the fund may be used
551580 to pay the total cost of developing or updating the plan if:
552581 (a) the school district has fewer than
553-an average of six hundred full-time-equivalent students on
554-the second and third reporting dates of the prior school
555-year; or
556-(b) the school district meets all of
557-the following requirements: 1) the school district has fewer
558-than an average of one thousand full-time-equivalent students
559-on the second and third reporting dates of the prior school
560-year; 2) the school district has at least seventy percent of
561-its students eligible for free or reduced-fee lunch; 3) the SB 401
562-Page 12
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588-state share of the total cost, if calculated pursuant to
589-the methodology in Subsection B of Section 22-24-5 NMSA 1978,
590-would be less than fifty percent; and 4) for all educational
582+an average of six hundred full-time-equivalent students on the
583+second and third reporting dates of the prior school year; or
584+(b) the school district meets all of the
585+following requirements: 1) the school district has fewer than
586+an average of one thousand full-time-equivalent students on the
587+second and third reporting dates of the prior school year; 2)
588+the school district has at least seventy percent of its
589+students eligible for free or reduced-fee lunch; 3) the state
590+share of the total cost, if calculated pursuant to the
591+methodology in Subsection B of Section 22-24-5 NMSA 1978, would
592+.230058.2
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620+be less than fifty percent; and 4) for all educational
591621 purposes, the school district has a residential property tax
592622 rate of at least seven dollars ($7.00) on each one thousand
593623 dollars ($1,000) of taxable value, as measured by the sum of
594-all rates imposed by resolution of the local school board
595-plus rates set to pay interest and principal on outstanding
596-school district general obligation bonds.
624+all rates imposed by resolution of the local school board plus
625+rates set to pay interest and principal on outstanding school
626+district general obligation bonds.
597627 L. Upon application by a school district,
598628 allocations from the fund may be made by the council for the
599629 purpose of demolishing abandoned school district facilities;
600630 provided that:
601631 (1) the costs of continuing to insure an
602-abandoned facility outweigh any potential benefit when and
603-if a new facility is needed by the school district;
632+abandoned facility outweigh any potential benefit when and if a
633+new facility is needed by the school district;
604634 (2) there is no practical use for the
605635 abandoned facility without the expenditure of substantial
606636 renovation costs; and
607637 (3) the council may enter into an agreement
608638 with the school district to fully fund the demolition of the
609639 abandoned school district facility if Paragraphs (1) and
610640 (2) of this subsection are satisfied.
611-M. The fund may be expended in each of fiscal
612-years 2020 through 2024 for a pre-kindergarten classroom SB 401
613-Page 13
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641+[M. Up to ten million dollars ($10,000,000) of the
642+fund may be expended each year for an education technology
643+infrastructure deficiency corrections initiative pursuant to
644+Section 22-24-4.5 NMSA 1978; provided that funding allocated
645+.230058.2
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673+pursuant to this section shall be expended within three years
674+of its allocation.
675+N.] M. The fund may be expended in each of fiscal
676+years 2020 through 2024 for a pre-kindergarten classroom
639677 facilities initiative project in accordance with Section
640678 22-24-12 NMSA 1978.
641-N. The council may fund pre-kindergarten
642-classrooms with a qualifying, awarded standards-based
643-project; provided that pre-kindergarten classroom space shall
644-not be included in the project prioritization calculation
645-adopted by the council pursuant to Section 22-24-5 NMSA 1978.
646-The council shall develop pre-kindergarten classroom
647-standards to use when funding pre-kindergarten space."
679+[O.] N. The council may fund pre-kindergarten
680+classrooms with a qualifying, awarded standards-based project;
681+provided that pre-kindergarten classroom space shall not be
682+included in the project prioritization calculation adopted by
683+the council pursuant to Section 22-24-5 NMSA 1978. The council
684+shall develop pre-kindergarten classroom standards to use when
685+funding pre-kindergarten space."
648686 SECTION 4. Section 22-24-5 NMSA 1978 (being Laws 1975,
649687 Chapter 235, Section 5, as amended) is amended to read:
650688 "22-24-5. PUBLIC SCHOOL CAPITAL OUTLAY PROJECTS--
651689 APPLICATION--GRANT ASSISTANCE.--
652-A. Applications for grant assistance, approval
653-of applications, prioritization of projects and grant awards
654-shall be conducted pursuant to the provisions of this
655-section.
690+A. Applications for grant assistance, approval of
691+applications, prioritization of projects and grant awards shall
692+be conducted pursuant to the provisions of this section.
656693 B. Except as provided in Sections 22-24-4.3,
657694 22-24-5.4 and 22-24-5.6 NMSA 1978, the following provisions
658695 govern grant assistance from the fund for a public school
659696 capital outlay project not wholly funded pursuant to Section
660697 22-24-4.1 NMSA 1978:
661-(1) all school districts are eligible to
662-apply for funding from the fund, regardless of percentage of
663-indebtedness; SB 401
664-Page 14
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690-(2) priorities for funding shall be
691-determined by using the statewide adequacy standards
692-developed pursuant to Subsection C of this section; provided
693-that:
698+.230058.2
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726+(1) all school districts are eligible to apply
727+for funding from the fund, regardless of percentage of
728+indebtedness;
729+(2) priorities for funding shall be determined
730+by using the statewide adequacy standards developed pursuant to
731+Subsection C of this section; provided that:
694732 (a) the council shall apply the
695733 standards to charter schools to the same extent that they are
696734 applied to other public schools;
697735 (b) the council may award grants
698736 annually to school districts for the purpose of repairing,
699737 renovating or replacing public school building systems in
700-existing buildings as identified in Section 22-24-4.6
701-NMSA 1978;
738+existing buildings as identified in Section 22-24-4.6 NMSA
739+1978;
702740 (c) the council shall adopt and apply
703741 adequacy standards appropriate to the unique needs of the
704742 constitutional special schools; and
705743 (d) in an emergency in which the health
706-or safety of students or school personnel is at immediate
707-risk or in which there is a threat of significant property
708-damage, the council may award grant assistance for a project
709-using criteria other than the statewide adequacy standards;
710-(3) the council shall establish criteria to
711-be used in public school capital outlay projects that receive
744+or safety of students or school personnel is at immediate risk
745+or in which there is a threat of significant property damage,
746+the council may award grant assistance for a project using
747+criteria other than the statewide adequacy standards;
748+(3) the council shall establish criteria to be
749+used in public school capital outlay projects that receive
712750 grant assistance pursuant to the Public School Capital
751+.230058.2
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713779 Outlay Act. In establishing the criteria, the council shall
714-consider: SB 401
715-Page 15
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780+consider:
741781 (a) the feasibility of using design,
742-build and finance arrangements for public school capital
743-outlay projects;
782+build and finance arrangements for public school capital outlay
783+projects;
744784 (b) the potential use of more durable
745785 construction materials that may reduce long-term operating
746786 costs;
747-(c) concepts that promote efficient
748-but flexible utilization of space; and
787+(c) concepts that promote efficient but
788+flexible utilization of space; and
749789 (d) any other financing or construction
750-concept that may maximize the dollar effect of the state
751-grant assistance;
790+concept that may maximize the dollar effect of the state grant
791+assistance;
752792 (4) no more than ten percent of the combined
753793 total of grants in a funding cycle shall be used for
754-retrofitting existing facilities for technology
755-infrastructure;
756-(5) no later than May 1 of each calendar
757-year, the phase two formula value shall be calculated for
758-each school district in accordance with the following
759-procedure:
794+retrofitting existing facilities for technology infrastructure;
795+(5) no later than May 1 of each calendar year,
796+the phase two formula value shall be calculated for each school
797+district in accordance with the following procedure:
760798 (a) the sum of the final prior five
761799 years net taxable value for a school district multiplied by
762-nine ten-thousandths for that school district is calculated
763-for each school district;
800+nine ten-thousandths for that school district is calculated for
801+each school district;
764802 (b) the maximum allowable gross square
765-foot per student multiplied by the replacement cost per SB 401
766-Page 16
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792-square foot divided by forty-five is calculated for each
793-school district;
803+foot per student multiplied by the replacement cost per square
804+.230058.2
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832+foot divided by forty-five is calculated for each school
833+district;
794834 (c) the value calculated pursuant to
795835 Subparagraph (a) of this paragraph divided by the value
796836 calculated pursuant to Subparagraph (b) of this paragraph is
797837 calculated for each school district;
798838 (d) in those instances in which the
799839 calculation pursuant to Subparagraph (c) of this paragraph
800840 yields a value equal to or greater than one, the phase two
801841 formula value shall be zero for the subject school district;
802842 (e) in those instances in which the
803843 calculation pursuant to Subparagraph (c) of this paragraph
804-yields a value of ninety-hundredths or more but less than
805-one, the phase two formula value shall be one minus the value
844+yields a value of ninety-hundredths or more but less than one,
845+the phase two formula value shall be one minus the value
806846 calculated in Subparagraph (c) of this paragraph; and
807847 (f) in those instances in which the
808848 calculation pursuant to Subparagraph (c) of this paragraph
809849 yields a value less than ninety-hundredths, the phase two
810850 formula value shall be one minus the value calculated in
811851 Subparagraph (c) of this paragraph plus the school district
812852 population density factor;
813-(6) the state share of a project approved
814-by the council shall be funded within available resources
815-pursuant to the provisions of this paragraph. Except as
816-provided in Section 22-24-5.7 NMSA 1978 and except as SB 401
817-Page 17
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843-adjusted pursuant to Paragraph (8), (9) or (10) of this
844-subsection, the amount to be distributed from the fund for
845-an approved project shall equal the total project cost
846-multiplied by the following percentage, except that in no
847-case shall the state share be less than six percent:
853+(6) the state share of a project approved by
854+the council shall be funded within available resources pursuant
855+to the provisions of this paragraph. Except as provided in
856+Section 22-24-5.7 NMSA 1978 and except as adjusted pursuant to
857+.230058.2
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885+Paragraph (8), (9) or (10) of this subsection, the amount to be
886+distributed from the fund for an approved project shall equal
887+the total project cost multiplied by the following percentage,
888+except that in no case shall the state share be less than six
889+percent:
848890 (a) for fiscal year 2024 through fiscal
849-year 2026, the percentage shall be the phase two formula
850-value plus a percentage equal to one-third of the difference
851-between one and the phase two formula value; provided that,
852-for school districts with fewer than 200 MEM, the percentage
853-shall be the phase two formula value plus a percentage equal
854-to one-half of the difference between one and the phase two
855-formula; and
856-(b) for fiscal year 2027 and
857-thereafter, the percentage shall be the phase two formula
858-value;
891+year 2026, the percentage shall be the phase two formula value
892+plus a percentage equal to one-third of the difference between
893+one and the phase two formula value; provided that, for school
894+districts with fewer than 200 MEM, the percentage shall be the
895+phase two formula value plus a percentage equal to one-half of
896+the difference between one and the phase two formula; and
897+(b) for fiscal year 2027 and thereafter,
898+the percentage shall be the phase two formula value;
859899 (7) as used in this subsection:
860900 (a) "governmental entity" includes an
861901 Indian nation, tribe or pueblo;
862902 (b) "phase two formula value" for a
863903 state-chartered charter school means the phase two formula
864904 value calculated pursuant to Paragraph (5) of this subsection
865905 for the school district in which the state-chartered charter
866906 school is physically located;
867-(c) "subject school district" means SB 401
868-Page 18
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894-the school district that has submitted the application for
895-funding and in which the approved public school capital
896-outlay project will be located; and
897-(d) "total project cost" means the
898-total amount necessary to complete the public school capital
899-outlay project less any insurance reimbursement received by
900-the school district for the project;
907+(c) "subject school district" means the
908+school district that has submitted the application for funding
909+and in which the approved public school capital outlay project
910+.230058.2
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938+will be located; and
939+(d) "total project cost" means the total
940+amount necessary to complete the public school capital outlay
941+project less any insurance reimbursement received by the school
942+district for the project;
901943 (8) the amount calculated pursuant to
902944 Paragraph (6) of this subsection may be increased by an
903945 additional five percent if the council finds that the subject
904946 school district has been exemplary in implementing and
905947 maintaining a preventive maintenance program. The council
906948 shall adopt such rules as are necessary to implement the
907949 provisions of this paragraph;
908-(9) the council may adjust the amount of
909-local share otherwise required if it determines that a school
950+(9) the council may adjust the amount of local
951+share otherwise required if it determines that a school
910952 district has made a good-faith effort to use all of its local
911953 resources. Before making any adjustment to the local share,
912954 the council shall consider whether:
913-(a) the school district has
914-insufficient bonding capacity over the next four years to
915-provide the local match necessary to complete the project
916-and, for all educational purposes, has a residential property
917-tax rate of at least ten dollars ($10.00) on each one
918-thousand dollars ($1,000) of taxable value, as measured by SB 401
919-Page 19
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945-the sum of all rates imposed by resolution of the local
946-school board plus rates set to pay interest and principal on
947-outstanding school district general obligation bonds;
955+(a) the school district has insufficient
956+bonding capacity over the next four years to provide the local
957+match necessary to complete the project and, for all
958+educational purposes, has a residential property tax rate of at
959+least ten dollars ($10.00) on each one thousand dollars
960+($1,000) of taxable value, as measured by the sum of all rates
961+imposed by resolution of the local school board plus rates set
962+to pay interest and principal on outstanding school district
963+.230058.2
964+- 18 - underscored material = new
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991+general obligation bonds;
948992 (b) the school district: 1) has fewer
949-than an average of eight hundred full-time-equivalent
950-students on the second and third reporting dates of the prior
951-school year; 2) has at least seventy percent of its students
952-eligible for free or reduced-fee lunch; 3) has a phase two
953-formula value calculated pursuant to Paragraph (5) of this
954-subsection that would be greater than fifty percent; and 4)
955-for all educational purposes, has a residential property tax
956-rate of at least seven dollars ($7.00) on each one thousand
957-dollars ($1,000) of taxable value, as measured by the sum of
958-all rates imposed by resolution of the local school board
959-plus rates set to pay interest and principal on outstanding
960-school district general obligation bonds; or
993+than an average of eight hundred full-time-equivalent students
994+on the second and third reporting dates of the prior school
995+year; 2) has at least seventy percent of its students eligible
996+for free or reduced-fee lunch; 3) has a phase two formula value
997+calculated pursuant to Paragraph (5) of this subsection that
998+would be greater than fifty percent; and 4) for all educational
999+purposes, has a residential property tax rate of at least seven
1000+dollars ($7.00) on each one thousand dollars ($1,000) of
1001+taxable value, as measured by the sum of all rates imposed by
1002+resolution of the local school board plus rates set to pay
1003+interest and principal on outstanding school district general
1004+obligation bonds; or
9611005 (c) the school district: 1) has an
9621006 enrollment growth rate over the previous school year of at
9631007 least two and one-half percent; 2) pursuant to its five-year
964-facilities plan, will be building a new school within the
965-next two years; and 3) for all educational purposes, has a
966-residential property tax rate of at least ten dollars
967-($10.00) on each one thousand dollars ($1,000) of taxable
968-value, as measured by the sum of all rates imposed by
969-resolution of the local school board plus rates set to pay SB 401
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996-interest and principal on outstanding school district general
997-obligation bonds;
1008+facilities plan, will be building a new school within the next
1009+two years; and 3) for all educational purposes, has a
1010+residential property tax rate of at least ten dollars ($10.00)
1011+on each one thousand dollars ($1,000) of taxable value, as
1012+measured by the sum of all rates imposed by resolution of the
1013+local school board plus rates set to pay interest and principal
1014+on outstanding school district general obligation bonds;
9981015 (10) the local match for the constitutional
999-special schools shall be set at fifty percent for projects
1000-that qualify under the educational adequacy category and one
1001-hundred percent for projects that qualify in the support
1002-spaces category; provided that the council may adjust or
1003-waive the amount of any direct appropriation offset to or
1004-local share required for the constitutional special
1005-schools if an applicant constitutional special school has
1006-insufficient or no local resources available; and
1007-(11) no application for grant assistance
1008-from the fund shall be approved unless the council determines
1009-that:
1016+.230058.2
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1044+special schools shall be set at fifty percent for projects that
1045+qualify under the educational adequacy category and one hundred
1046+percent for projects that qualify in the support spaces
1047+category; provided that the council may adjust or waive the
1048+amount of any direct appropriation offset to or local share
1049+required for the constitutional special schools if an applicant
1050+constitutional special school has insufficient or no local
1051+resources available; and
1052+(11) no application for grant assistance from
1053+the fund shall be approved unless the council determines that:
10101054 (a) the public school capital outlay
1011-project is needed and included in the school district's
1012-five-year facilities plan among its top priorities;
1055+project is needed and included in the school district's five-
1056+year facilities plan among its top priorities;
10131057 (b) the school district has used its
10141058 capital resources in a prudent manner;
10151059 (c) the school district has provided
10161060 insurance for buildings of the school district in accordance
10171061 with the provisions of Section 13-5-3 NMSA 1978;
1018-(d) the school district has submitted
1019-a five-year facilities plan that includes: 1) enrollment
1020-projections; 2) a current preventive maintenance plan SB 401
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1047-that has been approved by the council pursuant to
1048-Section 22-24-5.3 NMSA 1978 and that is followed by each
1049-public school in the district; 3) the capital needs of
1050-charter schools located in the school district; and 4)
1051-projections for the facilities needed in order to maintain a
1052-full-day kindergarten program;
1053-(e) the school district is willing
1054-and able to pay any portion of the total cost of the
1055-public school capital outlay project that, according to
1056-Paragraph (6), (8) or (9) of this subsection, is not funded
1057-with grant assistance from the fund;
1058-(f) the application includes the
1059-capital needs of any charter school located in the school
1060-district or the school district has shown that the facilities
1061-of the charter school have a smaller deviation from the
1062-statewide adequacy standards than other district facilities
1063-included in the application; and
1064-(g) the school district has agreed,
1065-in writing, to comply with any reporting requirements
1066-or conditions imposed by the council pursuant to
1067-Section 22-24-5.1 NMSA 1978.
1068-C. After consulting with the public school
1069-capital outlay oversight task force and other experts, the
1070-council shall regularly review and update statewide adequacy
1071-standards applicable to all school districts. The standards SB 401
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1098-shall establish the acceptable level for the physical
1099-condition and capacity of buildings, the educational
1100-suitability of facilities and the need for career-technical
1101-education facilities or classrooms. The council shall
1102-collaborate with the office of broadband access and expansion
1103-in the development of education technology infrastructure
1104-standards in accordance with the provisions of the Broadband
1105-Access and Expansion Act and apply those standards to the
1106-statewide adequacy standards. Except as otherwise provided
1107-in the Public School Capital Outlay Act, the amount of
1108-outstanding deviation from the standards shall be used by the
1109-council in evaluating and prioritizing public school capital
1110-outlay projects.
1062+(d) the school district has submitted a
1063+five-year facilities plan that includes: 1) enrollment
1064+projections; 2) a current preventive maintenance plan that has
1065+been approved by the council pursuant to Section 22-24-5.3 NMSA
1066+1978 and that is followed by each public school in the
1067+district; 3) the capital needs of charter schools located in
1068+the school district; and 4) projections for the facilities
1069+.230058.2
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1097+needed in order to maintain a full-day kindergarten program;
1098+(e) the school district is willing and
1099+able to pay any portion of the total cost of the public school
1100+capital outlay project that, according to Paragraph (6), (8) or
1101+(9) of this subsection, is not funded with grant assistance
1102+from the fund;
1103+(f) the application includes the capital
1104+needs of any charter school located in the school district or
1105+the school district has shown that the facilities of the
1106+charter school have a smaller deviation from the statewide
1107+adequacy standards than other district facilities included in
1108+the application; and
1109+(g) the school district has agreed, in
1110+writing, to comply with any reporting requirements or
1111+conditions imposed by the council pursuant to Section 22-24-5.1
1112+NMSA 1978.
1113+C. After consulting with the public school capital
1114+outlay oversight task force and other experts, the council
1115+shall regularly review and update statewide adequacy standards
1116+applicable to all school districts. The standards shall
1117+establish the acceptable level for the physical condition and
1118+capacity of buildings, the educational suitability of
1119+facilities and the need for career-technical education
1120+facilities or classrooms [and the need for education technology
1121+infrastructure]. The council shall collaborate with the office
1122+.230058.2
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1150+of broadband access and expansion in the development of
1151+education technology infrastructure standards in accordance
1152+with the provisions of the Broadband Access and Expansion Act
1153+and apply those standards to the statewide adequacy standards.
1154+Except as otherwise provided in the Public School Capital
1155+Outlay Act, the amount of outstanding deviation from the
1156+standards shall be used by the council in evaluating and
1157+prioritizing public school capital outlay projects.
11111158 D. The acquisition of a facility by a school
11121159 district or charter school pursuant to a financing agreement
1113-that provides for lease payments with an option to purchase
1114-for a price that is reduced according to lease payments made
1115-may be considered a public school capital outlay project and
1116-eligible for grant assistance under this section pursuant to
1117-the following criteria:
1160+that provides for lease payments with an option to purchase for
1161+a price that is reduced according to lease payments made may be
1162+considered a public school capital outlay project and eligible
1163+for grant assistance under this section pursuant to the
1164+following criteria:
11181165 (1) no grant shall be awarded unless the
11191166 council determines that, at the time of exercising the option
11201167 to purchase the facility by the school district or charter
11211168 school, the facility will equal or exceed the statewide
1122-adequacy standards and the building standards for public SB 401
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1149-school facilities;
1169+adequacy standards and the building standards for public school
1170+facilities;
11501171 (2) no grant shall be awarded unless the
1151-school district and the need for the facility meet all
1152-of the requirements for grant assistance pursuant to the
1153-Public School Capital Outlay Act;
1172+school district and the need for the facility meet all of the
1173+requirements for grant assistance pursuant to the Public School
1174+Capital Outlay Act;
1175+.230058.2
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11541203 (3) the total project cost shall equal the
11551204 total payments that would be due under the agreement if the
11561205 school district or charter school would eventually acquire
11571206 title to the facility;
1158-(4) the portion of the total project cost
1159-to be paid from the fund may be awarded as one grant, but
1160-disbursements from the fund shall be made from time to time
1161-as lease payments become due;
1162-(5) the portion of the total project cost
1163-to be paid by the school district or charter school may be
1164-paid from time to time as lease payments become due; and
1165-(6) neither a grant award nor any provision
1166-of the Public School Capital Outlay Act creates a legal
1167-obligation for the school district or charter school to
1168-continue the lease from year to year or to purchase the
1169-facility.
1170-E. In order to encourage private capital
1171-investment in the construction of public school facilities,
1172-the purchase of a privately owned school facility that is, at
1173-the time of application, in use by a school district may be SB 401
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1200-considered a public school capital outlay project and
1201-eligible for grant assistance pursuant to this section if the
1202-council finds that:
1207+(4) the portion of the total project cost to
1208+be paid from the fund may be awarded as one grant, but
1209+disbursements from the fund shall be made from time to time as
1210+lease payments become due;
1211+(5) the portion of the total project cost to
1212+be paid by the school district or charter school may be paid
1213+from time to time as lease payments become due; and
1214+(6) neither a grant award nor any provision of
1215+the Public School Capital Outlay Act creates a legal obligation
1216+for the school district or charter school to continue the lease
1217+from year to year or to purchase the facility.
1218+E. In order to encourage private capital investment
1219+in the construction of public school facilities, the purchase
1220+of a privately owned school facility that is, at the time of
1221+application, in use by a school district may be considered a
1222+public school capital outlay project and eligible for grant
1223+assistance pursuant to this section if the council finds that:
12031224 (1) at the time of the initial use by the
12041225 school district, the facility to be purchased equaled or
12051226 exceeded the statewide adequacy standards and the building
12061227 standards for public school facilities;
1207-(2) at the time of application, attendance
1208-at the facility to be purchased is at seventy-five percent
1209-or greater of design capacity and the attendance at other
1210-schools in the school district that the students at the
1211-facility would otherwise attend is at eighty-five percent or
1212-greater of design capacity; and
1213-(3) the school district and the capital
1214-outlay project meet all of the requirements for grant
1215-assistance pursuant to the Public School Capital Outlay Act;
1216-provided that, when determining the deviation from the
1217-statewide adequacy standards for the purposes of evaluating
1218-and prioritizing the project, the students using the facility
1219-shall be deemed to be attending other schools in the school
1220-district.
1228+.230058.2
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1256+(2) at the time of application, attendance at
1257+the facility to be purchased is at seventy-five percent or
1258+greater of design capacity and the attendance at other schools
1259+in the school district that the students at the facility would
1260+otherwise attend is at eighty-five percent or greater of design
1261+capacity; and
1262+(3) the school district and the capital outlay
1263+project meet all of the requirements for grant assistance
1264+pursuant to the Public School Capital Outlay Act; provided
1265+that, when determining the deviation from the statewide
1266+adequacy standards for the purposes of evaluating and
1267+prioritizing the project, the students using the facility shall
1268+be deemed to be attending other schools in the school district.
12211269 F. It is the intent of the legislature that grant
12221270 assistance made pursuant to this section allows every school
1223-district to meet the standards developed pursuant to
1224-Subsection C of this section; provided, however, that nothing SB 401
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1251-in the Public School Capital Outlay Act or the development of
1252-standards pursuant to that act prohibits a school district
1253-from using other funds available to the district to exceed
1254-the statewide adequacy standards.
1271+district to meet the standards developed pursuant to Subsection
1272+C of this section; provided, however, that nothing in the
1273+Public School Capital Outlay Act or the development of
1274+standards pursuant to that act prohibits a school district from
1275+using other funds available to the district to exceed the
1276+statewide adequacy standards.
12551277 G. Upon request, the council shall work with, and
12561278 provide assistance and information to, the public school
12571279 capital outlay oversight task force.
12581280 H. The council may establish committees or task
1259-forces, not necessarily consisting of council members, and
1260-may use the committees or task forces, as well as existing
1261-agencies or organizations, to conduct studies, conduct
1262-surveys, submit recommendations or otherwise contribute
1263-expertise from the public schools, programs, interest groups
1264-and segments of society most concerned with a particular
1265-aspect of the council's work.
1281+.230058.2
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1309+forces, not necessarily consisting of council members, and may
1310+use the committees or task forces, as well as existing agencies
1311+or organizations, to conduct studies, conduct surveys, submit
1312+recommendations or otherwise contribute expertise from the
1313+public schools, programs, interest groups and segments of
1314+society most concerned with a particular aspect of the
1315+council's work.
12661316 I. Upon the recommendation of the authority, the
12671317 council shall develop building standards for public school
12681318 facilities and shall promulgate other such rules as are
12691319 necessary to carry out the provisions of the Public School
12701320 Capital Outlay Act.
12711321 J. No later than December 15 of each year, the
12721322 council shall prepare a report summarizing its activities
1273-during the previous fiscal year. The report shall describe
1274-in detail all projects funded, the progress of projects
1275-previously funded but not completed, the criteria used to SB 401
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1302-prioritize and fund projects and all other council actions.
1303-The report shall be submitted to the public education
1304-commission, the governor, the legislative finance committee,
1305-the legislative education study committee and the
1306-legislature.
1323+during the previous fiscal year. The report shall describe in
1324+detail all projects funded, the progress of projects previously
1325+funded but not completed, the criteria used to prioritize and
1326+fund projects and all other council actions. The report shall
1327+be submitted to the public education commission, the governor,
1328+the legislative finance committee, the legislative education
1329+study committee and the legislature.
13071330 K. For any school district that received a
13081331 standards- or systems-based award from the council in fiscal
1309-year 2023, the state share for any future phase of the
1310-project for which funding has not yet been awarded shall be
1311-the amount calculated pursuant to Subsection B of this
1312-section for fiscal year 2024, regardless of the state share
1313-at the time of the initial award.
1332+year 2023, the state share for any future phase of the project
1333+for which funding has not yet been awarded shall be the amount
1334+.230058.2
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1362+calculated pursuant to Subsection B of this section for fiscal
1363+year 2024, regardless of the state share at the time of the
1364+initial award.
13141365 L. As used in this section:
13151366 (1) "MEM" means membership; and
1316-(2) "membership" means the total enrollment
1317-of qualified students on the current roll of a class or
1318-school on a specified day. The current roll is established
1319-by the addition of original entries and reentries minus
1320-withdrawals. Withdrawals of students, in addition to
1321-students formally withdrawn from the public school, include
1322-students absent from the public school for as many as ten
1323-consecutive school days; provided that withdrawals do not
1324-include students in need of early intervention and habitual
1325-truants the school district is required to intervene with and
1326-keep in an educational setting." SB 401
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1367+(2) "membership" means the total enrollment of
1368+qualified students on the current roll of a class or school on
1369+a specified day. The current roll is established by the
1370+addition of original entries and reentries minus withdrawals.
1371+Withdrawals of students, in addition to students formally
1372+withdrawn from the public school, include students absent from
1373+the public school for as many as ten consecutive school days;
1374+provided that withdrawals do not include students in need of
1375+early intervention and habitual truants the school district is
1376+required to intervene with and keep in an educational setting."
13531377 SECTION 5. Section 63-9J-1 NMSA 1978 (being Laws 2021,
13541378 Chapter 123, Section 1) is amended to read:
1355-"63-9J-1. SHORT TITLE.--Chapter 63, Article 9J
1379+"63-9J-1. SHORT TITLE.--[This act ] Chapter 63, Article 9J
13561380 NMSA 1978 may be cited as the "Broadband Access and Expansion
13571381 Act"."
13581382 SECTION 6. Section 63-9J-2 NMSA 1978 (being Laws 2021,
13591383 Chapter 123, Section 2, as amended) is amended to read:
13601384 "63-9J-2. DEFINITIONS.--As used in the Broadband Access
13611385 and Expansion Act:
13621386 A. "broadband infrastructure" means facilities and
1387+.230058.2
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13631415 equipment used to provide internet service, excluding
1364-telecommunications equipment owned, controlled or operated by
1365-a public or private end user;
1366-B. "broadband office" means the office of
1367-broadband access and expansion;
1368-C. "constitutional special schools" means the
1369-New Mexico school for the blind and visually impaired and the
1370-New Mexico school for the deaf;
1371-D. "department", unless otherwise specified, means
1372-the department of information technology;
1373-E. "director" means the director of the broadband
1374-office;
1416+telecommunications equipment owned, controlled or operated by a
1417+public or private end user;
1418+B. "broadband office" means the office of broadband
1419+access and expansion;
1420+C. "constitutional special schools" means the New
1421+Mexico school for the blind and visually impaired and the New
1422+Mexico school for the deaf;
1423+[C.] D. "department", unless otherwise specified,
1424+means the department of information technology;
1425+[D.] E. "director" means the director of the
1426+broadband office;
13751427 F. "education technology infrastructure" means the
13761428 physical hardware and services used to interconnect students,
1377-teachers, school districts and school buildings necessary to SB 401
1378-Page 28
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1429+teachers, school districts and school buildings necessary to
14041430 support broadband connectivity and remote learning as
14051431 determined by the broadband office;
1406-G. "end user" means an individual, business,
1432+[E.] G. "end user" means an individual, business,
14071433 institution or governmental entity that subscribes to an
14081434 internet service and does not resell that service to other
14091435 individuals or entities;
1410-H. "facilities-based provider" means a provider of
1411-internet service to end users in New Mexico using facilities
1412-that satisfy any of the following criteria:
1436+[F.] H. "facilities-based provider" means a
1437+provider of internet service to end users in New Mexico using
1438+facilities that satisfy any of the following criteria:
14131439 (1) physical facilities that the entity owns
1440+.230058.2
1441+- 27 - underscored material = new
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14141468 and that terminate at the end user premises;
14151469 (2) facilities that the entity has obtained
14161470 the right to use from other entities, such as dark fiber or
14171471 satellite transponder capacity as part of its own network, or
14181472 has obtained;
14191473 (3) unbundled network element loops, special
1420-access lines or other leased facilities that the entity uses
1421-to complete terminations to the end user premises;
1474+access lines or other leased facilities that the entity uses to
1475+complete terminations to the end user premises;
14221476 (4) wireless spectrum for which the entity
1423-holds a license or that the entity manages or has obtained
1424-the right to use via a spectrum leasing arrangement or
1425-comparable arrangement pursuant to federal regulations
1426-promulgated pursuant to the federal Communications Act of
1427-1934, as amended, or upon subsequent amendment or repeal of
1428-that act, by the broadband office by rule; or SB 401
1429-Page 29
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1477+holds a license or that the entity manages or has obtained the
1478+right to use via a spectrum leasing arrangement or comparable
1479+arrangement pursuant to federal regulations promulgated
1480+pursuant to the federal Communications Act of 1934, as amended,
1481+or upon subsequent amendment or repeal of that act, by the
1482+broadband office by rule; or
14551483 (5) unlicensed spectrum;
14561484 I. "fund" means the education technology
14571485 infrastructure fund;
1458-J. "internet" means a global set of computing and
1459-electronic devices interconnected through networking
1486+[G.] J. "internet" means a global set of computing
1487+and electronic devices interconnected through networking
14601488 infrastructures to provide data and information sharing and
14611489 communication facilities;
1462-K. "local government" means the government of a
1463-municipality, county or political subdivision of the state;
1464-L. "open access" means equal nondiscriminatory
1490+[H.] K. "local government" means the government of
1491+a municipality, county or political subdivision of the state;
1492+[I.] L. "open access" means equal nondiscriminatory
1493+.230058.2
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14651521 access to the state-owned broadband network by eligible
1466-entities on a technologically and competitively neutral
1467-basis, regardless of whether the entity is privately or
1468-publicly owned;
1469-M. "public educational institution" means a
1522+entities on a technologically and competitively neutral basis,
1523+regardless of whether the entity is privately or publicly
1524+owned;
1525+[J.] M. "public educational institution" means a
14701526 public school, a school district, a public post-secondary
14711527 educational institution, a tribal school or an agency that
1472-provides administrative, funding or technical support to
1473-public schools, school districts and public post-secondary
1474-educational institutions;
1475-N. "quality of service" means the standards
1528+provides administrative, funding or technical support to public
1529+schools, school districts and public post-secondary educational
1530+institutions;
1531+[K.] N. "quality of service" means the standards
14761532 established by the federal communications commission;
14771533 O. "school district" includes the constitutional
14781534 special schools and state-chartered charter schools;
1479-P. "school district population density" means the SB 401
1480-Page 30
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1535+P. "school district population density" means the
15061536 population density on a per-square-mile basis of a school
1507-district as estimated by the broadband office based on the
1508-most current tract level population estimates published by
1509-the United States census bureau;
1510-Q. "state-owned broadband network" means the
1511-state-owned broadband infrastructure that is owned, leased
1512-or operated by the department;
1513-R. "statewide broadband plan" means a plan,
1537+district as estimated by the broadband office based on the most
1538+current tract level population estimates published by the
1539+United States census bureau;
1540+[L.] Q. "state-owned broadband network" means the
1541+state-owned broadband infrastructure that is owned, leased or
1542+operated by the department;
1543+[M.] R. "statewide broadband plan" means a plan,
15141544 including recommended statutory changes and implementation
15151545 procedures, for the development and expansion of broadband
1546+.230058.2
1547+- 29 - underscored material = new
1548+[bracketed material] = delete
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15161574 infrastructure and services throughout the state to meet the
15171575 needs:
15181576 (1) for the delivery of internet-based
15191577 educational, medical and emergency services;
1520-(2) for local and tribal communities to
1521-foster and recruit internet-reliant business and industry and
1522-to promote economic development and job creation; and
1578+(2) for local and tribal communities to foster
1579+and recruit internet-reliant business and industry and to
1580+promote economic development and job creation; and
15231581 (3) to support internet-reliant state, local
1524-and tribal government functions and facilitate the delivery
1525-of governmental services in a manner that is competitive with
1582+and tribal government functions and facilitate the delivery of
1583+governmental services in a manner that is competitive with
15261584 similar government agencies in neighboring states;
1527-S. "underserved" means an area or property that
1528-does not have access to internet service offering speeds
1585+[N.] S. "underserved" means an area or property
1586+that does not have access to internet service offering speeds
15291587 greater than one hundred megabits downstream and twenty
1530-megabits upstream; and SB 401
1531-Page 31
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1557-T. "unserved" means an area or property that
1558-either does not have access to internet service at all or
1559-only has access to internet service offering speeds below
1560-twenty-five megabits per second downstream or three megabits
1561-per second upstream."
1588+megabits upstream; and
1589+[O.] T. "unserved" means an area or property that
1590+either does not have access to internet service at all or only
1591+has access to internet service offering speeds below twenty-
1592+five megabits per second downstream or three megabits per
1593+second upstream."
15621594 SECTION 7. A new section of the Broadband Access and
15631595 Expansion Act is enacted to read:
1564-"EDUCATION TECHNOLOGY INFRASTRUCTURE FUND CREATED--USE.--
1596+"[NEW MATERIAL] EDUCATION TECHNOLOGY INFRASTRUCTURE FUND
1597+CREATED--USE.--
15651598 A. The "education technology infrastructure fund"
1599+.230058.2
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15661627 is created in the state treasury. The fund consists of:
15671628 (1) appropriations, gifts, grants and
15681629 donations; and
1569-(2) the proceeds of supplemental
1570-severance tax bonds appropriated to the fund pursuant to
1571-Section 7-27-12.6 NMSA 1978 for education technology
1572-projects.
1630+(2) the proceeds of supplemental severance tax
1631+bonds appropriated to the fund pursuant to Section 7-27-12.6
1632+NMSA 1978 for education technology projects.
15731633 B. Disbursements from the fund shall be made upon
15741634 warrants drawn by the secretary of finance and administration
15751635 pursuant to vouchers signed by the director.
15761636 C. The fund may be expended annually by the
15771637 broadband office for education technology infrastructure
15781638 projects that are in conformance with the standards and
15791639 guidelines developed pursuant to this 2025 act and grants to
15801640 school districts for education technology projects, including
1581-expenses for management of such projects; provided that the SB 401
1582-Page 32
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1608-total amount of project management expense assistance from
1609-the fund per project shall not exceed five percent of the
1610-project grant.
1641+expenses for management of such projects; provided that the
1642+total amount of project management expense assistance from the
1643+fund per project shall not exceed five percent of the project
1644+grant.
16111645 D. The broadband office shall promulgate rules
1612-necessary to administer the education technology
1613-infrastructure fund."
1646+necessary to administer the education technology infrastructure
1647+fund."
16141648 SECTION 8. A new section of the Broadband Access and
16151649 Expansion Act is enacted to read:
1616-"EDUCATION TECHNOLOGY INFRASTRUCTURE DEFICIENCY
1617-CORRECTIONS.--
1650+"[NEW MATERIAL] EDUCATION TECHNOLOGY INFRASTRUCTURE
1651+DEFICIENCY CORRECTIONS.--
1652+.230058.2
1653+- 31 - underscored material = new
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16181680 A. No later than January 1, 2026, the broadband
16191681 office shall, in collaboration with the public school capital
16201682 outlay council and the public school facilities authority,
16211683 define and develop:
16221684 (1) minimum adequacy standards for education
16231685 technology infrastructure;
16241686 (2) a methodology to determine reasonable
16251687 costs for:
16261688 (a) correcting education technology
16271689 infrastructure deficiencies in or affecting school districts;
16281690 and
16291691 (b) reasonable costs for a school
16301692 district's share of the project costs; and
1631-(3) a methodology for prioritizing projects
1632-to correct education technology infrastructure deficiencies SB 401
1633-Page 33
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1659-in or affecting school districts.
1693+(3) a methodology for prioritizing projects to
1694+correct education technology infrastructure deficiencies in or
1695+affecting school districts.
16601696 B. The broadband office shall develop guidelines
16611697 for a statewide education technology infrastructure network
1662-that integrates regional hub locations for network services
1663-and the installation and maintenance of equipment. The
1664-broadband office may fund education technology infrastructure
1665-projects or items that the broadband office determines are in
1666-accordance with the guidelines and necessary to education
1667-for:
1698+that integrates regional hub locations for network services and
1699+the installation and maintenance of equipment. The broadband
1700+office may fund education technology infrastructure projects or
1701+items that the broadband office determines are in accordance
1702+with the guidelines and necessary to education for:
16681703 (1) students;
16691704 (2) school buses;
1705+.230058.2
1706+- 32 - underscored material = new
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16701733 (3) internet connectivity within a school
16711734 district;
16721735 (4) a multi-district regional education
16731736 network; and
16741737 (5) a statewide education network."
16751738 SECTION 9. A new section of the Broadband Access and
16761739 Expansion Act is enacted to read:
1677-"EDUCATION TECHNOLOGY INFRASTRUCTURE PROJECTS--
1678-APPLICATION-- GRANT ASSISTANCE.--
1679-A. Applications for grant assistance, approval
1680-of applications, prioritization of projects and grant awards
1681-for education technology infrastructure shall be conducted
1682-pursuant to the provisions of this section.
1683-B. The broadband office shall establish project funding SB 401
1684-Page 34
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1710-requirements and priority standards for school districts by
1711-rule based on the following factors:
1740+"[NEW MATERIAL] EDUCATION TECHNOLOGY INFRASTRUCTURE
1741+PROJECTS--APPLICATION--GRANT ASSISTANCE.--
1742+A. Applications for grant assistance, approval of
1743+applications, prioritization of projects and grant awards for
1744+education technology infrastructure shall be conducted pursuant
1745+to the provisions of this section.
1746+B. The broadband office shall establish project
1747+funding requirements and priority standards for school
1748+districts by rule based on the following factors:
17121749 (1) school district geographic size and
17131750 population;
17141751 (2) school district population density;
17151752 (3) local property tax base;
17161753 (4) the current condition of education
17171754 technology infrastructure relative to the adequacy standards
17181755 established in collaboration with the public school capital
17191756 outlay council and public school facilities authority; and
17201757 (5) whether the broadband office has
1758+.230058.2
1759+- 33 - underscored material = new
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17211786 designated the school district as a high-growth area pursuant
17221787 to Subsection C of this section.
17231788 C. The broadband office may designate an area that
17241789 equals a contiguous attendance area of one or more existing
1725-schools as a high-growth area if it determines that within
1726-five years of the grant allocation decision, the estimated use
1727-of the proposed education technology infrastructure project
1728-will exceed the functional capacity of the project as
1729-determined by the broadband office by rule.
1790+schools as a high-growth area if it determines that within five
1791+years of the grant allocation decision, the estimated use of
1792+the proposed education technology infrastructure project will
1793+exceed the functional capacity of the project as determined by
1794+the broadband office by rule.
17301795 D. The broadband office shall apply the adequacy
1731-standards to state-chartered charter schools to the same
1732-extent that they are applied to other public schools.
1796+standards to state-chartered charter schools to the same extent
1797+that they are applied to other public schools.
17331798 E. The broadband office shall adopt and apply
1734-adequacy standards appropriate to the unique needs of the SB 401
1735-Page 35
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1799+adequacy standards appropriate to the unique needs of the
17611800 constitutional special schools.
1762-F. In an emergency in which the health or safety
1763-of students or school personnel is at immediate risk or in
1764-which there is a threat of significant property damage, the
1765-broadband office may award grant assistance for a project
1766-using criteria other than the adequacy standards.
1801+F. In an emergency in which the health or safety of
1802+students or school personnel is at immediate risk or in which
1803+there is a threat of significant property damage, the broadband
1804+office may award grant assistance for a project using criteria
1805+other than the adequacy standards.
17671806 G. The broadband office shall, in collaboration
17681807 with the public school capital outlay council and the public
1769-school facilities authority, establish criteria to be used
1770-in education technology infrastructure projects that receive
1771-grant assistance pursuant to the Broadband Access and
1772-Expansion Act. In establishing the criteria, the broadband
1773-office shall consider:
1774-(1) the feasibility of using design, build
1775-and finance arrangements for education technology
1776-infrastructure projects;
1808+school facilities authority, establish criteria to be used in
1809+education technology infrastructure projects that receive grant
1810+assistance pursuant to the Broadband Access and Expansion Act.
1811+.230058.2
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1839+In establishing the criteria, the broadband office shall
1840+consider:
1841+(1) the feasibility of using design, build and
1842+finance arrangements for education technology infrastructure
1843+projects;
17771844 (2) the potential use of more durable
17781845 construction materials that may reduce long-term operating
17791846 costs;
17801847 (3) concepts that promote efficient but
17811848 flexible use of space; and
17821849 (4) any other financing or construction
17831850 concept that may maximize the dollar effect of the state grant
17841851 assistance.
1785-H. No application for grant assistance from the SB 401
1786-Page 36
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1852+H. No application for grant assistance from the
18121853 fund shall be approved unless the broadband office determines
18131854 that:
18141855 (1) the education technology infrastructure
18151856 project is needed and included in the school district's
18161857 five-year facilities plan among its top priorities;
18171858 (2) the school district has used its capital
18181859 resources in a prudent manner;
1819-(3) the school district has provided
1820-insurance for the district's education technology
1821-infrastructure in accordance with insurance requirements
1822-established by the broadband office by rule;
1860+(3) the school district has provided insurance
1861+for the district's education technology infrastructure in
1862+accordance with insurance requirements established by the
1863+broadband office by rule;
1864+.230058.2
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18231892 (4) the school district has submitted an
18241893 education technology infrastructure plan that includes:
18251894 (a) enrollment projections;
18261895 (b) a current preventive maintenance
1827-plan that has been approved by the broadband office and that
1828-is followed by each public school in the district; and
1896+plan that has been approved by the broadband office and that is
1897+followed by each public school in the district; and
18291898 (c) the education technology
18301899 infrastructure needs of charter schools located in the school
18311900 district;
1832-(5) the school district is willing and able
1833-to pay any portion of the total cost of the education
1834-technology infrastructure project that is not funded with
1835-grant assistance from the fund;
1836-(6) the application includes the education SB 401
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1901+(5) the school district is willing and able to
1902+pay any portion of the total cost of the education technology
1903+infrastructure project that is not funded with grant assistance
1904+from the fund;
1905+(6) the application includes the education
18631906 technology infrastructure needs of any charter school located
18641907 in the school district, or the school district has shown that
18651908 the education technology infrastructure needs of the charter
18661909 school have a smaller deviation from the statewide adequacy
18671910 standards than other district education technology
18681911 infrastructure included in the application; and
18691912 (7) the school district has agreed, in
18701913 writing, to comply with any reporting requirements or
18711914 conditions imposed by the broadband office pursuant to the
18721915 Broadband Access and Expansion Act.
18731916 I. After consulting with the public school
1917+.230058.2
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18741945 facilities authority and other experts, the broadband office
18751946 shall regularly review and update statewide adequacy standards
18761947 applicable to all school districts. Except as otherwise
18771948 provided in the Broadband Access and Expansion Act, the amount
18781949 of outstanding deviation from the standards shall be used by
18791950 the broadband office in evaluating and prioritizing education
18801951 technology infrastructure projects.
18811952 J. No later than November 1 of each year, the
18821953 broadband office shall prepare a report summarizing its
18831954 education technology infrastructure activities during the
18841955 previous fiscal year. The report shall describe in detail all
1885-projects funded, the progress of projects previously funded
1886-but not completed, the criteria used to prioritize and fund
1887-projects and all other broadband office actions. The report SB 401
1888-Page 38
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1914-shall be submitted to the public education commission,
1915-the governor, the legislative finance committee, the
1916-legislative education study committee and the legislature."
1956+projects funded, the progress of projects previously funded but
1957+not completed, the criteria used to prioritize and fund
1958+projects and all other broadband office actions. The report
1959+shall be submitted to the public education commission, the
1960+governor, the legislative finance committee, the legislative
1961+education study committee and the legislature."
19171962 SECTION 10. TEMPORARY PROVISION--TRANSFER OF FUNCTIONS,
19181963 PERSONNEL, MONEY, APPROPRIATIONS, PROPERTY, CONTRACTUAL
19191964 OBLIGATIONS AND STATUTORY REFERENCES.--
19201965 A. On the effective date of this act:
19211966 (1) all functions, personnel, money,
19221967 appropriations, records, furniture, equipment, supplies and
19231968 other property pertaining to the broadband deployment and
1924-connectivity program are transferred to the office of
1925-broadband access and expansion;
1969+connectivity program are transferred to the office of broadband
1970+.230058.2
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1998+access and expansion;
19261999 (2) all contractual obligations of the
1927-broadband deployment and connectivity program are binding
1928-on the office of broadband access and expansion; and
1929-(3) all references in law, rules, orders
1930-and other official acts to the broadband deployment and
1931-connectivity program shall be deemed to be references to
1932-the office of broadband access and expansion.
2000+broadband deployment and connectivity program are binding on
2001+the office of broadband access and expansion; and
2002+(3) all references in law, rules, orders and
2003+other official acts to the broadband deployment and
2004+connectivity program shall be deemed to be references to the
2005+office of broadband access and expansion.
19332006 B. As used in this section, "broadband deployment
19342007 and connectivity program" means the program administratively
19352008 established by the public school facilities authority to
19362009 fulfill its support functions to the public school capital
1937-outlay council to meet the council's duties pursuant to
1938-Section 22-24-4.5 NMSA 1978 as that section existed prior to SB 401
1939-Page 39
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1965-July 1, 2025.
2010+outlay council to meet the council's duties pursuant to Section
2011+22-24-4.5 NMSA 1978 as that section existed prior to July 1,
2012+2025.
19662013 SECTION 11. REPEAL.--Section 22-24-4.5 NMSA 1978 (being
19672014 Laws 2014, Chapter 28, Section 4, as amended) is repealed.
19682015 SECTION 12. EFFECTIVE DATE.--The effective date of the
19692016 provisions of this act is July 1, 2025.
2017+- 38 -
2018+.230058.2