SB 401
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AN ACT
RELATING TO BROADBAND; AMENDING THE SEVERANCE TAX BONDING ACT
TO PROVIDE FOR THE ISSUANCE OF SUPPLEMENTAL SEVERANCE TAX
BONDS FOR EDUCATION TECHNOLOGY INFRASTRUCTURE; AMENDING THE
BROADBAND ACCESS AND EXPANSION ACT; ADDING DEFINITIONS;
CREATING THE EDUCATION TECHNOLOGY INFRASTRUCTURE FUND;
PROVIDING FOR RULEMAKING; AUTHORIZING GRANTS; TRANSFERRING
THE PUBLIC SCHOOL FACILITIES AUTHORITY'S BROADBAND DEPLOYMENT
AND CONNECTIVITY PROGRAM AND STATEWIDE EDUCATION NETWORK TO
THE OFFICE OF BROADBAND ACCESS AND EXPANSION; MAKING AN
APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 7-27-12 NMSA 1978 (being Laws 1961,
Chapter 5, Section 10, as amended) is amended to read:
"7-27-12. WHEN SEVERANCE TAX BONDS TO BE ISSUED.--
A. The state board of finance shall issue and
sell all severance tax bonds when authorized to do so by any
law that sets out the amount of the issue and the recipient
of the money.
B. The state board of finance shall also issue
and sell severance tax bonds authorized by Sections 72-14-36
through 72-14-42 NMSA 1978, and such authority as has been
given to the interstate stream commission to issue and sell
such bonds is transferred to the state board of finance. SB 401
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The state board of finance shall issue and sell all severance
tax bonds only when so instructed by resolution of the
governing body or by written direction from an authorized
officer of the recipient of the bond money.
C. Except as provided in Subsection D of this
section, proceeds from supplemental severance tax bonds
shall be used only for public school capital outlay projects
pursuant to the Public School Capital Outlay Act or the
Public School Capital Improvements Act or education
technology infrastructure projects pursuant to the Broadband
Access and Expansion Act.
D. Proceeds from supplemental severance tax
bonds issued pursuant to Paragraph (2) of Subsection A of
Section 19 of Chapter 6 of Laws 1999 (1st S.S.) and Laws 2017
(1st S.S.), Chapter 1, Section 1 shall be used for the
purposes specified in those provisions.
E. Except as provided in Subsection F of this
section, the state board of finance shall issue and sell
all supplemental severance tax bonds when so instructed by
resolution of the public school capital outlay council
pursuant to Section 7-27-12.2 NMSA 1978 or by certification
by the director of the office of broadband access and
expansion pursuant to Section 7-27-12.6 NMSA 1978.
F. The state board of finance shall issue and sell
the supplemental severance tax bonds authorized by: SB 401
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(1) Paragraph (2) of Subsection A of
Section 19 of Chapter 6 of Laws 1999 (1st S.S.) when so
instructed by resolution of the commission on higher
education; and
(2) Laws 2017 (1st S.S.), Chapter 1,
Section 1 upon certification by the secretary of finance
and administration of the need to use proceeds from those
bonds as outlined in that section."
SECTION 2. A new section of the Severance Tax Bonding
Act, Section 7-27-12.6 NMSA 1978, is enacted to read:
"7-27-12.6. SUPPLEMENTAL SEVERANCE TAX BONDS--EDUCATION
TECHNOLOGY INFRASTRUCTURE.--
A. The director of the office of broadband access
and expansion may certify that up to ten million dollars
($10,000,000) of proceeds of supplemental severance tax bonds
per fiscal year are needed for expenditures relating to
education technology infrastructure pursuant to the Broadband
Access and Expansion Act. The certification shall specify
the total amount needed.
B. The state board of finance may issue and sell
supplemental severance tax bonds in compliance with the
Severance Tax Bonding Act when the director of the office of
broadband access and expansion certifies the need for the
issuance of the bonds pursuant to the Broadband Access and
Expansion Act. The amount of the bonds sold at each sale SB 401
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shall not exceed the lesser of:
(1) the total of the amounts certified by
the director of the office of broadband access and expansion;
or
(2) the amount that may be issued pursuant
to the restrictions of Section 7-27-14 NMSA 1978.
C. The state board of finance shall schedule the
issuance and sale of the bonds in the most expeditious and
economical manner possible.
D. The proceeds from the sale of the bonds are
appropriated to the education technology infrastructure fund
for the purposes of the fund.
E. The provisions of this section shall be
repealed effective July 1, 2030."
SECTION 3. Section 22-24-4 NMSA 1978 (being Laws 1975,
Chapter 235, Section 4, as amended) is amended to read:
"22-24-4. PUBLIC SCHOOL CAPITAL OUTLAY FUND CREATED--
USE.--
A. The "public school capital outlay fund" is
created. Balances remaining in the fund at the end of each
fiscal year shall not revert.
B. Except as provided in Subsections G and I
through N of this section, money in the fund may be used only
for capital expenditures deemed necessary by the council for
an adequate educational program. SB 401
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C. The council may authorize the purchase by
the authority of portable classrooms to be loaned to school
districts to meet a temporary requirement. Payment for these
purchases shall be made from the fund. Title to and custody
of the portable classrooms shall rest in the authority.
The council shall authorize the lending of the portable
classrooms to school districts upon request and upon finding
that sufficient need exists. Application for use or return
of state-owned portable classroom buildings shall be
submitted by school districts to the council. Expenses of
maintenance of the portable classrooms while in the custody
of the authority shall be paid from the fund; expenses of
maintenance and insurance of the portable classrooms while in
the custody of a school district shall be the responsibility
of the school district. The council may authorize the
permanent disposition of the portable classrooms by the
authority with prior approval of the state board of finance.
D. Applications for assistance from the fund shall
be made by school districts to the council in accordance
with requirements of the council. Except as provided in
Subsection K of this section, the council shall require as
a condition of application that a school district have a
current five-year facilities plan that shall include a
current preventive maintenance plan to which the school
adheres for each public school in the school district. SB 401
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E. The council shall review all requests for
assistance from the fund and shall allocate funds only for
those capital outlay projects that meet the criteria of the
Public School Capital Outlay Act.
F. Money in the fund shall be disbursed by warrant
of the department of finance and administration on vouchers
signed by the secretary of finance and administration
following certification by the council that an application
has been approved or an expenditure has been ordered by
a court pursuant to Section 22-24-5.4 NMSA 1978. At the
discretion of the council, money for a project shall be
distributed as follows:
(1) up to ten percent of the portion of
the project cost funded with distributions from the fund or
five percent of the total project cost, whichever is greater,
may be paid to the school district before work commences with
the balance of the grant award made on a cost-reimbursement
basis; or
(2) the council may authorize payments
directly to the contractor.
G. Balances in the fund may be annually
appropriated for the core administrative functions of the
authority pursuant to the Public School Capital Outlay Act,
and, in addition, balances in the fund may be expended by the
authority, upon approval of the council, for project SB 401
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management expenses; provided that:
(1) the total annual expenditures from the
fund for the core administrative functions pursuant to this
subsection shall not exceed five percent of the average
annual grant assistance authorized from the fund during the
five previous fiscal years; and
(2) any unexpended or unencumbered balance
remaining at the end of a fiscal year from the expenditures
authorized in this subsection shall revert to the fund.
H. The fund may be expended by the council for
building system repair, renovation or replacement initiatives
with projects to be identified by the council pursuant to
Section 22-24-4.6 NMSA 1978; provided that money allocated
pursuant to this subsection shall be expended within three
years of the allocation.
I. The fund shall be expended annually by the
council for grants to school districts for the purpose of
making lease payments for facilities, including facilities
leased by charter schools. The grants shall be made upon
application by the school districts and pursuant to rules
adopted by the council; provided that an application on
behalf of a charter school shall be made by the school
district, but, if the school district fails to make an
application on behalf of a charter school, the charter school
may submit its own application. The following criteria shall SB 401
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apply to the grants:
(1) the amount of a grant to a school
district or charter school shall not exceed:
(a) the actual annual lease payments
owed for leasing a facility; or
(b) seven hundred dollars ($700)
multiplied by the MEM using the leased facilities; provided
that in fiscal year 2009 and in each subsequent fiscal year,
this amount shall be adjusted by the percentage change
between the penultimate calendar year and the immediately
preceding calendar year of the consumer price index for the
United States, all items, as published by the United States
department of labor;
(2) a grant received for the lease payments
of a charter school may be used by that charter school as a
state match necessary to obtain federal grants pursuant to
the federal Every Student Succeeds Act;
(3) at the end of each fiscal year, any
unexpended or unencumbered balance of the grant shall revert
to the fund;
(4) no grant shall be made for lease
payments due pursuant to a financing agreement under which
the facilities may be purchased for a price that is reduced
according to the lease payments made unless:
(a) the agreement has been approved SB 401
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pursuant to the provisions of the Public School Lease
Purchase Act; and
(b) the facilities are leased by a
charter school;
(5) if the lease payments are made pursuant
to a financing agreement under which the facilities may be
purchased for a price that is reduced according to the lease
payments made, neither a grant nor any provision of the
Public School Capital Outlay Act creates a legal obligation
for the school district or charter school to continue the
lease from year to year or to purchase the facilities nor
does it create a legal obligation for the state to make
subsequent grants pursuant to the provisions of this
subsection; and
(6) as used in this subsection:
(a) "MEM" means: 1) the average
full-time-equivalent enrollment using leased facilities on
the second and third reporting dates of the prior school
year; or 2) in the case of an approved charter school that
has not commenced classroom instruction, the estimated
full-time-equivalent enrollment that will use leased
facilities in the first year of instruction, as shown in the
approved charter school application; provided that, after the
second reporting date of the current school year, the MEM
shall be adjusted to reflect the full-time-equivalent SB 401
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enrollment on that date; and
(b) "facilities" includes the space
needed for school activities.
J. In addition to other authorized expenditures
from the fund, up to one percent of the average grant
assistance authorized from the fund during the three previous
fiscal years may be expended in each fiscal year by the
authority to pay the state fire marshal, the construction
industries division of the regulation and licensing
department and local jurisdictions having authority from the
state to permit and inspect projects for expenditures made to
permit and inspect projects funded in whole or in part under
the Public School Capital Outlay Act. The authority may
enter into contracts with the state fire marshal, the
construction industries division or the appropriate local
authorities to carry out the provisions of this subsection.
Such a contract may provide for initial estimated payments
from the fund prior to the expenditures if the contract also
provides for additional payments from the fund if the actual
expenditures exceed the initial payments and for repayments
back to the fund if the initial payments exceed the actual
expenditures. Money distributed from the fund to the state
fire marshal or the construction industries division pursuant
to this subsection shall be used to supplement, rather than
supplant, appropriations to those entities. SB 401
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K. Pursuant to guidelines established by the
council, allocations from the fund may be made to assist
school districts in developing and updating five-year
facilities plans required by the Public School Capital Outlay
Act; provided that:
(1) no allocation shall be made unless the
council determines that the school district is willing and
able to pay the portion of the total cost of developing or
updating the plan that is not funded with the allocation
from the fund. Except as provided in Paragraph (2) of this
subsection, the portion of the total cost to be paid with the
allocation from the fund shall be determined pursuant to the
methodology in Subsection B of Section 22-24-5 NMSA 1978; or
(2) the allocation from the fund may be used
to pay the total cost of developing or updating the plan if:
(a) the school district has fewer than
an average of six hundred full-time-equivalent students on
the second and third reporting dates of the prior school
year; or
(b) the school district meets all of
the following requirements: 1) the school district has fewer
than an average of one thousand full-time-equivalent students
on the second and third reporting dates of the prior school
year; 2) the school district has at least seventy percent of
its students eligible for free or reduced-fee lunch; 3) the SB 401
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state share of the total cost, if calculated pursuant to
the methodology in Subsection B of Section 22-24-5 NMSA 1978,
would be less than fifty percent; and 4) for all educational
purposes, the school district has a residential property tax
rate of at least seven dollars ($7.00) on each one thousand
dollars ($1,000) of taxable value, as measured by the sum of
all rates imposed by resolution of the local school board
plus rates set to pay interest and principal on outstanding
school district general obligation bonds.
L. Upon application by a school district,
allocations from the fund may be made by the council for the
purpose of demolishing abandoned school district facilities;
provided that:
(1) the costs of continuing to insure an
abandoned facility outweigh any potential benefit when and
if a new facility is needed by the school district;
(2) there is no practical use for the
abandoned facility without the expenditure of substantial
renovation costs; and
(3) the council may enter into an agreement
with the school district to fully fund the demolition of the
abandoned school district facility if Paragraphs (1) and
(2) of this subsection are satisfied.
M. The fund may be expended in each of fiscal
years 2020 through 2024 for a pre-kindergarten classroom SB 401
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facilities initiative project in accordance with Section
22-24-12 NMSA 1978.
N. The council may fund pre-kindergarten
classrooms with a qualifying, awarded standards-based
project; provided that pre-kindergarten classroom space shall
not be included in the project prioritization calculation
adopted by the council pursuant to Section 22-24-5 NMSA 1978.
The council shall develop pre-kindergarten classroom
standards to use when funding pre-kindergarten space."
SECTION 4. Section 22-24-5 NMSA 1978 (being Laws 1975,
Chapter 235, Section 5, as amended) is amended to read:
"22-24-5. PUBLIC SCHOOL CAPITAL OUTLAY PROJECTS--
APPLICATION--GRANT ASSISTANCE.--
A. Applications for grant assistance, approval
of applications, prioritization of projects and grant awards
shall be conducted pursuant to the provisions of this
section.
B. Except as provided in Sections 22-24-4.3,
22-24-5.4 and 22-24-5.6 NMSA 1978, the following provisions
govern grant assistance from the fund for a public school
capital outlay project not wholly funded pursuant to Section
22-24-4.1 NMSA 1978:
(1) all school districts are eligible to
apply for funding from the fund, regardless of percentage of
indebtedness; SB 401
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(2) priorities for funding shall be
determined by using the statewide adequacy standards
developed pursuant to Subsection C of this section; provided
that:
(a) the council shall apply the
standards to charter schools to the same extent that they are
applied to other public schools;
(b) the council may award grants
annually to school districts for the purpose of repairing,
renovating or replacing public school building systems in
existing buildings as identified in Section 22-24-4.6
NMSA 1978;
(c) the council shall adopt and apply
adequacy standards appropriate to the unique needs of the
constitutional special schools; and
(d) in an emergency in which the health
or safety of students or school personnel is at immediate
risk or in which there is a threat of significant property
damage, the council may award grant assistance for a project
using criteria other than the statewide adequacy standards;
(3) the council shall establish criteria to
be used in public school capital outlay projects that receive
grant assistance pursuant to the Public School Capital
Outlay Act. In establishing the criteria, the council shall
consider: SB 401
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(a) the feasibility of using design,
build and finance arrangements for public school capital
outlay projects;
(b) the potential use of more durable
construction materials that may reduce long-term operating
costs;
(c) concepts that promote efficient
but flexible utilization of space; and
(d) any other financing or construction
concept that may maximize the dollar effect of the state
grant assistance;
(4) no more than ten percent of the combined
total of grants in a funding cycle shall be used for
retrofitting existing facilities for technology
infrastructure;
(5) no later than May 1 of each calendar
year, the phase two formula value shall be calculated for
each school district in accordance with the following
procedure:
(a) the sum of the final prior five
years net taxable value for a school district multiplied by
nine ten-thousandths for that school district is calculated
for each school district;
(b) the maximum allowable gross square
foot per student multiplied by the replacement cost per SB 401
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square foot divided by forty-five is calculated for each
school district;
(c) the value calculated pursuant to
Subparagraph (a) of this paragraph divided by the value
calculated pursuant to Subparagraph (b) of this paragraph is
calculated for each school district;
(d) in those instances in which the
calculation pursuant to Subparagraph (c) of this paragraph
yields a value equal to or greater than one, the phase two
formula value shall be zero for the subject school district;
(e) in those instances in which the
calculation pursuant to Subparagraph (c) of this paragraph
yields a value of ninety-hundredths or more but less than
one, the phase two formula value shall be one minus the value
calculated in Subparagraph (c) of this paragraph; and
(f) in those instances in which the
calculation pursuant to Subparagraph (c) of this paragraph
yields a value less than ninety-hundredths, the phase two
formula value shall be one minus the value calculated in
Subparagraph (c) of this paragraph plus the school district
population density factor;
(6) the state share of a project approved
by the council shall be funded within available resources
pursuant to the provisions of this paragraph. Except as
provided in Section 22-24-5.7 NMSA 1978 and except as SB 401
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adjusted pursuant to Paragraph (8), (9) or (10) of this
subsection, the amount to be distributed from the fund for
an approved project shall equal the total project cost
multiplied by the following percentage, except that in no
case shall the state share be less than six percent:
(a) for fiscal year 2024 through fiscal
year 2026, the percentage shall be the phase two formula
value plus a percentage equal to one-third of the difference
between one and the phase two formula value; provided that,
for school districts with fewer than 200 MEM, the percentage
shall be the phase two formula value plus a percentage equal
to one-half of the difference between one and the phase two
formula; and
(b) for fiscal year 2027 and
thereafter, the percentage shall be the phase two formula
value;
(7) as used in this subsection:
(a) "governmental entity" includes an
Indian nation, tribe or pueblo;
(b) "phase two formula value" for a
state-chartered charter school means the phase two formula
value calculated pursuant to Paragraph (5) of this subsection
for the school district in which the state-chartered charter
school is physically located;
(c) "subject school district" means SB 401
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the school district that has submitted the application for
funding and in which the approved public school capital
outlay project will be located; and
(d) "total project cost" means the
total amount necessary to complete the public school capital
outlay project less any insurance reimbursement received by
the school district for the project;
(8) the amount calculated pursuant to
Paragraph (6) of this subsection may be increased by an
additional five percent if the council finds that the subject
school district has been exemplary in implementing and
maintaining a preventive maintenance program. The council
shall adopt such rules as are necessary to implement the
provisions of this paragraph;
(9) the council may adjust the amount of
local share otherwise required if it determines that a school
district has made a good-faith effort to use all of its local
resources. Before making any adjustment to the local share,
the council shall consider whether:
(a) the school district has
insufficient bonding capacity over the next four years to
provide the local match necessary to complete the project
and, for all educational purposes, has a residential property
tax rate of at least ten dollars ($10.00) on each one
thousand dollars ($1,000) of taxable value, as measured by SB 401
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the sum of all rates imposed by resolution of the local
school board plus rates set to pay interest and principal on
outstanding school district general obligation bonds;
(b) the school district: 1) has fewer
than an average of eight hundred full-time-equivalent
students on the second and third reporting dates of the prior
school year; 2) has at least seventy percent of its students
eligible for free or reduced-fee lunch; 3) has a phase two
formula value calculated pursuant to Paragraph (5) of this
subsection that would be greater than fifty percent; and 4)
for all educational purposes, has a residential property tax
rate of at least seven dollars ($7.00) on each one thousand
dollars ($1,000) of taxable value, as measured by the sum of
all rates imposed by resolution of the local school board
plus rates set to pay interest and principal on outstanding
school district general obligation bonds; or
(c) the school district: 1) has an
enrollment growth rate over the previous school year of at
least two and one-half percent; 2) pursuant to its five-year
facilities plan, will be building a new school within the
next two years; and 3) for all educational purposes, has a
residential property tax rate of at least ten dollars
($10.00) on each one thousand dollars ($1,000) of taxable
value, as measured by the sum of all rates imposed by
resolution of the local school board plus rates set to pay SB 401
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interest and principal on outstanding school district general
obligation bonds;
(10) the local match for the constitutional
special schools shall be set at fifty percent for projects
that qualify under the educational adequacy category and one
hundred percent for projects that qualify in the support
spaces category; provided that the council may adjust or
waive the amount of any direct appropriation offset to or
local share required for the constitutional special
schools if an applicant constitutional special school has
insufficient or no local resources available; and
(11) no application for grant assistance
from the fund shall be approved unless the council determines
that:
(a) the public school capital outlay
project is needed and included in the school district's
five-year facilities plan among its top priorities;
(b) the school district has used its
capital resources in a prudent manner;
(c) the school district has provided
insurance for buildings of the school district in accordance
with the provisions of Section 13-5-3 NMSA 1978;
(d) the school district has submitted
a five-year facilities plan that includes: 1) enrollment
projections; 2) a current preventive maintenance plan SB 401
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that has been approved by the council pursuant to
Section 22-24-5.3 NMSA 1978 and that is followed by each
public school in the district; 3) the capital needs of
charter schools located in the school district; and 4)
projections for the facilities needed in order to maintain a
full-day kindergarten program;
(e) the school district is willing
and able to pay any portion of the total cost of the
public school capital outlay project that, according to
Paragraph (6), (8) or (9) of this subsection, is not funded
with grant assistance from the fund;
(f) the application includes the
capital needs of any charter school located in the school
district or the school district has shown that the facilities
of the charter school have a smaller deviation from the
statewide adequacy standards than other district facilities
included in the application; and
(g) the school district has agreed,
in writing, to comply with any reporting requirements
or conditions imposed by the council pursuant to
Section 22-24-5.1 NMSA 1978.
C. After consulting with the public school
capital outlay oversight task force and other experts, the
council shall regularly review and update statewide adequacy
standards applicable to all school districts. The standards SB 401
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shall establish the acceptable level for the physical
condition and capacity of buildings, the educational
suitability of facilities and the need for career-technical
education facilities or classrooms. The council shall
collaborate with the office of broadband access and expansion
in the development of education technology infrastructure
standards in accordance with the provisions of the Broadband
Access and Expansion Act and apply those standards to the
statewide adequacy standards. Except as otherwise provided
in the Public School Capital Outlay Act, the amount of
outstanding deviation from the standards shall be used by the
council in evaluating and prioritizing public school capital
outlay projects.
D. The acquisition of a facility by a school
district or charter school pursuant to a financing agreement
that provides for lease payments with an option to purchase
for a price that is reduced according to lease payments made
may be considered a public school capital outlay project and
eligible for grant assistance under this section pursuant to
the following criteria:
(1) no grant shall be awarded unless the
council determines that, at the time of exercising the option
to purchase the facility by the school district or charter
school, the facility will equal or exceed the statewide
adequacy standards and the building standards for public SB 401
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school facilities;
(2) no grant shall be awarded unless the
school district and the need for the facility meet all
of the requirements for grant assistance pursuant to the
Public School Capital Outlay Act;
(3) the total project cost shall equal the
total payments that would be due under the agreement if the
school district or charter school would eventually acquire
title to the facility;
(4) the portion of the total project cost
to be paid from the fund may be awarded as one grant, but
disbursements from the fund shall be made from time to time
as lease payments become due;
(5) the portion of the total project cost
to be paid by the school district or charter school may be
paid from time to time as lease payments become due; and
(6) neither a grant award nor any provision
of the Public School Capital Outlay Act creates a legal
obligation for the school district or charter school to
continue the lease from year to year or to purchase the
facility.
E. In order to encourage private capital
investment in the construction of public school facilities,
the purchase of a privately owned school facility that is, at
the time of application, in use by a school district may be SB 401
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considered a public school capital outlay project and
eligible for grant assistance pursuant to this section if the
council finds that:
(1) at the time of the initial use by the
school district, the facility to be purchased equaled or
exceeded the statewide adequacy standards and the building
standards for public school facilities;
(2) at the time of application, attendance
at the facility to be purchased is at seventy-five percent
or greater of design capacity and the attendance at other
schools in the school district that the students at the
facility would otherwise attend is at eighty-five percent or
greater of design capacity; and
(3) the school district and the capital
outlay project meet all of the requirements for grant
assistance pursuant to the Public School Capital Outlay Act;
provided that, when determining the deviation from the
statewide adequacy standards for the purposes of evaluating
and prioritizing the project, the students using the facility
shall be deemed to be attending other schools in the school
district.
F. It is the intent of the legislature that grant
assistance made pursuant to this section allows every school
district to meet the standards developed pursuant to
Subsection C of this section; provided, however, that nothing SB 401
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in the Public School Capital Outlay Act or the development of
standards pursuant to that act prohibits a school district
from using other funds available to the district to exceed
the statewide adequacy standards.
G. Upon request, the council shall work with, and
provide assistance and information to, the public school
capital outlay oversight task force.
H. The council may establish committees or task
forces, not necessarily consisting of council members, and
may use the committees or task forces, as well as existing
agencies or organizations, to conduct studies, conduct
surveys, submit recommendations or otherwise contribute
expertise from the public schools, programs, interest groups
and segments of society most concerned with a particular
aspect of the council's work.
I. Upon the recommendation of the authority, the
council shall develop building standards for public school
facilities and shall promulgate other such rules as are
necessary to carry out the provisions of the Public School
Capital Outlay Act.
J. No later than December 15 of each year, the
council shall prepare a report summarizing its activities
during the previous fiscal year. The report shall describe
in detail all projects funded, the progress of projects
previously funded but not completed, the criteria used to SB 401
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prioritize and fund projects and all other council actions.
The report shall be submitted to the public education
commission, the governor, the legislative finance committee,
the legislative education study committee and the
legislature.
K. For any school district that received a
standards- or systems-based award from the council in fiscal
year 2023, the state share for any future phase of the
project for which funding has not yet been awarded shall be
the amount calculated pursuant to Subsection B of this
section for fiscal year 2024, regardless of the state share
at the time of the initial award.
L. As used in this section:
(1) "MEM" means membership; and
(2) "membership" means the total enrollment
of qualified students on the current roll of a class or
school on a specified day. The current roll is established
by the addition of original entries and reentries minus
withdrawals. Withdrawals of students, in addition to
students formally withdrawn from the public school, include
students absent from the public school for as many as ten
consecutive school days; provided that withdrawals do not
include students in need of early intervention and habitual
truants the school district is required to intervene with and
keep in an educational setting." SB 401
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SECTION 5. Section 63-9J-1 NMSA 1978 (being Laws 2021,
Chapter 123, Section 1) is amended to read:
"63-9J-1. SHORT TITLE.--Chapter 63, Article 9J
NMSA 1978 may be cited as the "Broadband Access and Expansion
Act"."
SECTION 6. Section 63-9J-2 NMSA 1978 (being Laws 2021,
Chapter 123, Section 2, as amended) is amended to read:
"63-9J-2. DEFINITIONS.--As used in the Broadband Access
and Expansion Act:
A. "broadband infrastructure" means facilities and
equipment used to provide internet service, excluding
telecommunications equipment owned, controlled or operated by
a public or private end user;
B. "broadband office" means the office of
broadband access and expansion;
C. "constitutional special schools" means the
New Mexico school for the blind and visually impaired and the
New Mexico school for the deaf;
D. "department", unless otherwise specified, means
the department of information technology;
E. "director" means the director of the broadband
office;
F. "education technology infrastructure" means the
physical hardware and services used to interconnect students,
teachers, school districts and school buildings necessary to SB 401
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support broadband connectivity and remote learning as
determined by the broadband office;
G. "end user" means an individual, business,
institution or governmental entity that subscribes to an
internet service and does not resell that service to other
individuals or entities;
H. "facilities-based provider" means a provider of
internet service to end users in New Mexico using facilities
that satisfy any of the following criteria:
(1) physical facilities that the entity owns
and that terminate at the end user premises;
(2) facilities that the entity has obtained
the right to use from other entities, such as dark fiber or
satellite transponder capacity as part of its own network, or
has obtained;
(3) unbundled network element loops, special
access lines or other leased facilities that the entity uses
to complete terminations to the end user premises;
(4) wireless spectrum for which the entity
holds a license or that the entity manages or has obtained
the right to use via a spectrum leasing arrangement or
comparable arrangement pursuant to federal regulations
promulgated pursuant to the federal Communications Act of
1934, as amended, or upon subsequent amendment or repeal of
that act, by the broadband office by rule; or SB 401
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(5) unlicensed spectrum;
I. "fund" means the education technology
infrastructure fund;
J. "internet" means a global set of computing and
electronic devices interconnected through networking
infrastructures to provide data and information sharing and
communication facilities;
K. "local government" means the government of a
municipality, county or political subdivision of the state;
L. "open access" means equal nondiscriminatory
access to the state-owned broadband network by eligible
entities on a technologically and competitively neutral
basis, regardless of whether the entity is privately or
publicly owned;
M. "public educational institution" means a
public school, a school district, a public post-secondary
educational institution, a tribal school or an agency that
provides administrative, funding or technical support to
public schools, school districts and public post-secondary
educational institutions;
N. "quality of service" means the standards
established by the federal communications commission;
O. "school district" includes the constitutional
special schools and state-chartered charter schools;
P. "school district population density" means the SB 401
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population density on a per-square-mile basis of a school
district as estimated by the broadband office based on the
most current tract level population estimates published by
the United States census bureau;
Q. "state-owned broadband network" means the
state-owned broadband infrastructure that is owned, leased
or operated by the department;
R. "statewide broadband plan" means a plan,
including recommended statutory changes and implementation
procedures, for the development and expansion of broadband
infrastructure and services throughout the state to meet the
needs:
(1) for the delivery of internet-based
educational, medical and emergency services;
(2) for local and tribal communities to
foster and recruit internet-reliant business and industry and
to promote economic development and job creation; and
(3) to support internet-reliant state, local
and tribal government functions and facilitate the delivery
of governmental services in a manner that is competitive with
similar government agencies in neighboring states;
S. "underserved" means an area or property that
does not have access to internet service offering speeds
greater than one hundred megabits downstream and twenty
megabits upstream; and SB 401
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T. "unserved" means an area or property that
either does not have access to internet service at all or
only has access to internet service offering speeds below
twenty-five megabits per second downstream or three megabits
per second upstream."
SECTION 7. A new section of the Broadband Access and
Expansion Act is enacted to read:
"EDUCATION TECHNOLOGY INFRASTRUCTURE FUND CREATED--USE.--
A. The "education technology infrastructure fund"
is created in the state treasury. The fund consists of:
(1) appropriations, gifts, grants and
donations; and
(2) the proceeds of supplemental
severance tax bonds appropriated to the fund pursuant to
Section 7-27-12.6 NMSA 1978 for education technology
projects.
B. Disbursements from the fund shall be made upon
warrants drawn by the secretary of finance and administration
pursuant to vouchers signed by the director.
C. The fund may be expended annually by the
broadband office for education technology infrastructure
projects that are in conformance with the standards and
guidelines developed pursuant to this 2025 act and grants to
school districts for education technology projects, including
expenses for management of such projects; provided that the SB 401
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total amount of project management expense assistance from
the fund per project shall not exceed five percent of the
project grant.
D. The broadband office shall promulgate rules
necessary to administer the education technology
infrastructure fund."
SECTION 8. A new section of the Broadband Access and
Expansion Act is enacted to read:
"EDUCATION TECHNOLOGY INFRASTRUCTURE DEFICIENCY
CORRECTIONS.--
A. No later than January 1, 2026, the broadband
office shall, in collaboration with the public school capital
outlay council and the public school facilities authority,
define and develop:
(1) minimum adequacy standards for education
technology infrastructure;
(2) a methodology to determine reasonable
costs for:
(a) correcting education technology
infrastructure deficiencies in or affecting school districts;
and
(b) reasonable costs for a school
district's share of the project costs; and
(3) a methodology for prioritizing projects
to correct education technology infrastructure deficiencies SB 401
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in or affecting school districts.
B. The broadband office shall develop guidelines
for a statewide education technology infrastructure network
that integrates regional hub locations for network services
and the installation and maintenance of equipment. The
broadband office may fund education technology infrastructure
projects or items that the broadband office determines are in
accordance with the guidelines and necessary to education
for:
(1) students;
(2) school buses;
(3) internet connectivity within a school
district;
(4) a multi-district regional education
network; and
(5) a statewide education network."
SECTION 9. A new section of the Broadband Access and
Expansion Act is enacted to read:
"EDUCATION TECHNOLOGY INFRASTRUCTURE PROJECTS--
APPLICATION-- GRANT ASSISTANCE.--
A. Applications for grant assistance, approval
of applications, prioritization of projects and grant awards
for education technology infrastructure shall be conducted
pursuant to the provisions of this section.
B. The broadband office shall establish project funding SB 401
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requirements and priority standards for school districts by
rule based on the following factors:
(1) school district geographic size and
population;
(2) school district population density;
(3) local property tax base;
(4) the current condition of education
technology infrastructure relative to the adequacy standards
established in collaboration with the public school capital
outlay council and public school facilities authority; and
(5) whether the broadband office has
designated the school district as a high-growth area pursuant
to Subsection C of this section.
C. The broadband office may designate an area that
equals a contiguous attendance area of one or more existing
schools as a high-growth area if it determines that within
five years of the grant allocation decision, the estimated use
of the proposed education technology infrastructure project
will exceed the functional capacity of the project as
determined by the broadband office by rule.
D. The broadband office shall apply the adequacy
standards to state-chartered charter schools to the same
extent that they are applied to other public schools.
E. The broadband office shall adopt and apply
adequacy standards appropriate to the unique needs of the SB 401
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constitutional special schools.
F. In an emergency in which the health or safety
of students or school personnel is at immediate risk or in
which there is a threat of significant property damage, the
broadband office may award grant assistance for a project
using criteria other than the adequacy standards.
G. The broadband office shall, in collaboration
with the public school capital outlay council and the public
school facilities authority, establish criteria to be used
in education technology infrastructure projects that receive
grant assistance pursuant to the Broadband Access and
Expansion Act. In establishing the criteria, the broadband
office shall consider:
(1) the feasibility of using design, build
and finance arrangements for education technology
infrastructure projects;
(2) the potential use of more durable
construction materials that may reduce long-term operating
costs;
(3) concepts that promote efficient but
flexible use of space; and
(4) any other financing or construction
concept that may maximize the dollar effect of the state grant
assistance.
H. No application for grant assistance from the SB 401
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fund shall be approved unless the broadband office determines
that:
(1) the education technology infrastructure
project is needed and included in the school district's
five-year facilities plan among its top priorities;
(2) the school district has used its capital
resources in a prudent manner;
(3) the school district has provided
insurance for the district's education technology
infrastructure in accordance with insurance requirements
established by the broadband office by rule;
(4) the school district has submitted an
education technology infrastructure plan that includes:
(a) enrollment projections;
(b) a current preventive maintenance
plan that has been approved by the broadband office and that
is followed by each public school in the district; and
(c) the education technology
infrastructure needs of charter schools located in the school
district;
(5) the school district is willing and able
to pay any portion of the total cost of the education
technology infrastructure project that is not funded with
grant assistance from the fund;
(6) the application includes the education SB 401
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technology infrastructure needs of any charter school located
in the school district, or the school district has shown that
the education technology infrastructure needs of the charter
school have a smaller deviation from the statewide adequacy
standards than other district education technology
infrastructure included in the application; and
(7) the school district has agreed, in
writing, to comply with any reporting requirements or
conditions imposed by the broadband office pursuant to the
Broadband Access and Expansion Act.
I. After consulting with the public school
facilities authority and other experts, the broadband office
shall regularly review and update statewide adequacy standards
applicable to all school districts. Except as otherwise
provided in the Broadband Access and Expansion Act, the amount
of outstanding deviation from the standards shall be used by
the broadband office in evaluating and prioritizing education
technology infrastructure projects.
J. No later than November 1 of each year, the
broadband office shall prepare a report summarizing its
education technology infrastructure activities during the
previous fiscal year. The report shall describe in detail all
projects funded, the progress of projects previously funded
but not completed, the criteria used to prioritize and fund
projects and all other broadband office actions. The report SB 401
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shall be submitted to the public education commission,
the governor, the legislative finance committee, the
legislative education study committee and the legislature."
SECTION 10. TEMPORARY PROVISION--TRANSFER OF FUNCTIONS,
PERSONNEL, MONEY, APPROPRIATIONS, PROPERTY, CONTRACTUAL
OBLIGATIONS AND STATUTORY REFERENCES.--
A. On the effective date of this act:
(1) all functions, personnel, money,
appropriations, records, furniture, equipment, supplies and
other property pertaining to the broadband deployment and
connectivity program are transferred to the office of
broadband access and expansion;
(2) all contractual obligations of the
broadband deployment and connectivity program are binding
on the office of broadband access and expansion; and
(3) all references in law, rules, orders
and other official acts to the broadband deployment and
connectivity program shall be deemed to be references to
the office of broadband access and expansion.
B. As used in this section, "broadband deployment
and connectivity program" means the program administratively
established by the public school facilities authority to
fulfill its support functions to the public school capital
outlay council to meet the council's duties pursuant to
Section 22-24-4.5 NMSA 1978 as that section existed prior to SB 401
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July 1, 2025.
SECTION 11. REPEAL.--Section 22-24-4.5 NMSA 1978 (being
Laws 2014, Chapter 28, Section 4, as amended) is repealed.
SECTION 12. EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2025.