SB 401 — BROADBAND FOR EDUCATION

Expenses of maintenance of h , t, the portable classrooms while in the custody of the authority e u g e b l e e h shall be paid from the fund;

expenses of maintenance and n d d i = = o h insurance of the portable classrooms while in the custody of a l ] b ,d i a º e school district shall be the responsibility of the school r i = r t e w d m a n o district.

The council may authorize the permanent disposition dof mthe :portable classrooms by the authority with prior approval of the state board of finance.

b e d s º o t n = .230058.2AIC March 14, 2025 (6:41pm) s k m e - 5 - e a n e d r e l u [ A d of the portable classrooms by the authority with prior approval of the state board of finance.

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 SB 401 adheres for each public school in the school district.

Page 5 E.

Money in the fund shall be disbursed by warrant of the department of finance and administration on vouchers h signed by the secretary of finance and administration following u » r certification by the council that an application has been t h g e l i approved or an expenditure has been ordered by a court pursuant h r i s to Section 22-24-5.4 NMSA 1978.

At the discretion of the h , e h council, money for a project shall be distributed as follows:

t u g e b l e e , gh (1) up to ten percent of the portion of the n d d i = = o h project cost funded with distributions from the fund or five l ] b ,d i a º r percent of the total project cost, whichever is greater, may be e r = t e w d m a n o paid to the school district before work commences with the dbalance mof :the grant award made on a cost-reimbursement basis;

b r e t º o t n = .230058.2AIC March 14, 2025 (6:41pm) s k m e - 6 - e a n e d r e l u [ A d balance of the grant award made on a cost-reimbursement basis;

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 SB 401 authority, upon approval of the council, for project Page 6 management expenses;

and (2) any unexpended or unencumbered balance h remaining at the end of a fiscal year from the expenditures u » r authorized in this subsection shall revert to the fund.

t h g e l i H.

The fund may be expended by the council for h r i s building system repair, renovation or replacement initiatives h , e h with projects to be identified by the council pursuant to t u g e b l e e , gh Section 22-24-4.6 NMSA 1978;

provided that money allocated n d d i = = o h pursuant to this subsection shall be expended within three l ] b ,d i a º r years of the allocation.

e r = t e w d m a n o I.

The fund shall be expended annually by the dcouncil mfor :grants to school districts for the purpose of making lease payments for facilities, including facilities leased by charter schools.

b r e t º o t n = .230058.2AIC March 14, 2025 (6:41pm) s k m e - 7 - e a n e d r e l u [ A d council for grants to school districts for the purpose of making lease payments for facilities, including facilities leased by charter schools.

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 SB 401 may submit its own application.

The following criteria shall Page 7 apply to the grants:

provided that in fiscal year 2009 and in each subsequent fiscal year, h this amount shall be adjusted by the percentage change between u » r the penultimate calendar year and the immediately preceding t h g e l i calendar year of the consumer price index for the United h r i s States, all items, as published by the United States department h , e h of labor;

t u g e b l e e , gh (2) a grant received for the lease payments of n d d i = = o h a charter school may be used by that charter school as a state l ] b ,d i a º r match necessary to obtain federal grants pursuant to the e r = t e w d m a n o federal Every Student Succeeds Act;

d(3) mat :the end of each fiscal year, any unexpended or unencumbered balance of the grant shall revert to the fund;

b r e t º o t n = .230058.2AIC March 14, 2025 (6:41pm) s k m e - 8 - e a n e d r e l u [ A d (3) at the end of each fiscal year, any unexpended or unencumbered balance of the grant shall revert to the fund;

SB 401 (a) the agreement has been approved Page 8 pursuant to the provisions of the Public School Lease Purchase Act;

(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 h School Capital Outlay Act creates a legal obligation for the g o t hr school district or charter school to continue the lease from g e i k year to year or to purchase the facilities nor does it create a h r i s legal obligation for the state to make subsequent grants h , t, pursuant to the provisions of this subsection;

and e u g e b l e e h (6) as used in this subsection:

n d d i = = o h (a) "MEM" means:

1) the average full-full-time-equivalent l ] b ,d i a º e time-equivalent enrollment using leased facilities on the r i = r t e w d m a n o second and third reporting dates of the prior school year;

or d2) min :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;

bprovided ethat, dafter sthe ºsecond oreporting tdate nof = .230058.2AIC March 14, 2025 (6:41pm) s k m e - 9 - e a n e d r e l u [ A d 2) in the casecurrent of an approved charter school thatyear, has not commenced classroom instruction, the estimatedMEM full-time-SB equivalent401 enrollmentshall thatbe willadjusted useto leasedreflect facilities in the firstfull-time-equivalent yearPage of9 instruction,enrollment ason shownthat indate; 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 enrollment on that date;

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 h permit and inspect projects for expenditures made to permit and u » r inspect projects funded in whole or in part under the Public t h g e l i School Capital Outlay Act.

The authority may enter into h r i s contracts with the state fire marshal, the construction h , e h industries division or the appropriate local authorities to t u g e b l e e , gh carry out the provisions of this subsection.

Such a contract n d d i = = o h may provide for initial estimated payments from the fund prior l ] b ,d i a º r to the expenditures if the contract also provides for eadditional rpayments =from tthe efund wif dthe mactual aexpenditures nexceed othe additionalinitial payments fromand for repayments back to the fund if the actualinitial expenditurespayments dexceed mthe :actual expenditures.

bMoney rdistributed efrom tthe ºfund oto tthe nstate =fire .230058.2AICmarshal Marchor 14,the 2025construction (6:41pm)industries sdivision kpursuant mto ethis -subsection 10shall -be eused ato nsupplement, erather dthan rSB e401 lsupplant, uappropriations [ A d exceed the initial payments and for repayments back to thethose fundentities. if the initial payments exceed the actual expenditures.

MoneyPage distributed10 fromK. 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.

K.

Except as provided in Paragraph (2) of this subsection, the h portion of the total cost to be paid with the allocation from u » r the fund shall be determined pursuant to the methodology in t h g e l i Subsection B of Section 22-24-5 NMSA 1978;

or h r i s (2) the allocation from the fund may be used h , e h to pay the total cost of developing or updating the plan if:

t u g e b l e e , gh (a) the school district has fewer than n d d i = = o h an average of six hundred full-time-equivalent students on the l ] b ,d i a º r second and third reporting dates of the prior school year;

or e r = t e w d m a n o (b) the school district meets all of the dfollowing mrequirements: :

b r e t º o t n = .230058.2AIC March 14, 2025 (6:41pm) s k m e - 11 - e a n e d r e l u [ A d following requirements:

2) the school district has at least seventy percent of SB 401 its students eligible for free or reduced-fee lunch;

3) the Page 11 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;

Upon application by a school district, allocations from the fund may be made by the council for the h purpose of demolishing abandoned school district facilities;

u » r provided that:

t h g e l i (1) the costs of continuing to insure an h r i s abandoned facility outweigh any potential benefit when and if a h , e h new facility is needed by the school district;

t u g e b l e e , gh (2) there is no practical use for the n d d i = = o h abandoned facility without the expenditure of substantial l ] b ,d i a º r renovation costs;

and e(3) rthe =council tmay eenter winto dan magreement awith nthe oschool (3)district to fully fund the councildemolition mayof enterthe intoabandoned anschool agreementdistrict dfacility mif :Paragraphs (1) and (2) of this subsection are satisfied.

bM. r e t º o t n = .230058.2AIC March 14, 2025 (6:41pm) s k m e - 12 - e a n e d r e l u [ A d 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 SB 401 years 2020 through 2024 for a pre-kindergarten classroom Page 12 facilities initiative project in accordance with Section 22-24-12 NMSA 1978.

UpN. to ten million dollars ($10,000,000) of the fund may be expended each year for an education technology infrastructure deficiency corrections initiative pursuant to Section 22-24-4.5 NMSA 1978;

provided that funding allocated pursuant to this section shall be expended within three years of its allocation.

N.] M.

The fund may be expended in each of fiscal years 2020 through 2024 for a pre-kindergarten classroom facilities initiative project in accordance with Section 22-24-12 NMSA 1978.

[O.] N.

provided that pre-kindergarten classroom space shall not be h included in the project prioritization calculation adopted by g o t hr the council pursuant to Section 22-24-5 NMSA 1978.

The council g e i k shall develop pre-kindergarten classroom standards to use when h r i s funding pre-kindergarten space." h , t, SECTION 4.

Section 22-24-5 NMSA 1978 (being Laws 1975, e u g e b l e e h Chapter 235, Section 5, as amended) is amended to read:

n d d i = = o h "22-24-5.

PUBLIC SCHOOL CAPITAL OUTLAY PROJECTS-- l ] b ,d i a º e APPLICATION--GRANT ASSISTANCE.-- r i = r t e w d m a n o A.

Applications for grant assistance, approval of dapplications, mprioritization :of projects and grant awards shall be conducted pursuant to the provisions of this section.

b e d s º o t n = .230058.2AIC March 14, 2025 (6:41pm) s k m e - 13 - e a n e d r e l u [ A d applications, prioritization of projects and grant awards shall be conducted pursuant to the provisions of this section.

(1) all school districts are eligible to apply for funding from the fund, regardless of percentage of SB 401 indebtedness;

Page 13 (2) priorities for funding shall be determined by using the statewide adequacy standards developed pursuant to Subsection C of this section;

h (b) the council may award grants u » r annually to school districts for the purpose of repairing, t h g e l i renovating or replacing public school building systems in h r i s existing buildings as identified in Section 22-24-4.6 NMSA h , e h 1978;

t u g e b l e e , gh (c) the council shall adopt and apply n d d i = = o h adequacy standards appropriate to the unique needs of the l ] b ,d i a º r constitutional special schools;

and e(d) rin =an temergency ein wwhich dthe mhealth aor nsafety oof (d)students inor anschool emergencypersonnel is at immediate risk or in which there is a threat of significant property damage, the healthcouncil dmay maward :grant assistance for a project using criteria other than the statewide adequacy standards;

b r e t º o t n = .230058.2AIC March 14, 2025 (6:41pm) s k m e - 14 - e a n e d r e l u [ A d 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;

In establishing the criteria, the council shall SB 401 consider:

Page 14 (a) the feasibility of using design, build and finance arrangements for public school capital outlay projects;

(c) concepts that promote efficient but h flexible utilization of space;

and g o t hr (d) any other financing or construction g e i k concept that may maximize the dollar effect of the state grant h r i s assistance;

h , t, (4) no more than ten percent of the combined e u g e b l e e h total of grants in a funding cycle shall be used for n d d i = = o h retrofitting existing facilities for technology infrastructure;

l ] b ,d i a º e (5) no later than May 1 of each calendar year, r i = r t e w d m a n o the phase two formula value shall be calculated for each school ddistrict min :accordance with the following procedure:

b e d s º o t n = .230058.2AIC March 14, 2025 (6:41pm) s k m e - 15 - e a n e d r e l u [ A d district in accordance with the following procedure:

(b) the maximum allowable gross square SB 401 foot per student multiplied by the replacement cost per Page 15 square foot divided by forty-five 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 h formula value shall be zero for the subject school district;

u » r (e) in those instances in which the t h g e l i calculation pursuant to Subparagraph (c) of this paragraph h r i s yields a value of ninety-hundredths or more but less than one, h , e h the phase two formula value shall be one minus the value t u g e b l e e , gh calculated in Subparagraph (c) of this paragraph;

and n d d i = = o h (f) in those instances in which the l ] b ,d i a º r calculation pursuant to Subparagraph (c) of this paragraph eyields ra =value tless ethan wninety-hundredths, dthe mphase atwo nformula ovalue yieldsshall abe one minus the value lesscalculated thanin ninety-hundredths,Subparagraph (c) of this paragraph plus the phaseschool twodistrict dpopulation mdensity :factor;

b r e t º o t n = .230058.2AIC March 14, 2025 (6:41pm) s k m e - 16 - e a n e d r e l u [ A d formula value shall be one minus the value calculated in Subparagraph (c) of this paragraph plus the school district population density factor;

Except as SB 401 provided in Section 22-24-5.7 NMSA 1978 and except as Page 16 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:

provided that, for school h districts with fewer than 200 MEM, the percentage shall be the u » r phase two formula value plus a percentage equal to one-half of t h g e l i the difference between one and the phase two formula;

and h r i s (b) for fiscal year 2027 and thereafter, h , e h the percentage shall be the phase two formula value;

t u g e b l e e , gh (7) as used in this subsection:

n d d i = = o h (a) "governmental entity" includes an l ] b ,d i a º r Indian nation, tribe or pueblo;

e(b) r"phase =two tformula evalue" wfor da mstate-chartered acharter nschool omeans (b)the "phasephase two formula value"value calculated pursuant to Paragraph (5) of this subsection for athe dschool mdistrict :in which the state-chartered charter school is physically located;

bSB r401 e(c) t"subject ºschool odistrict" tmeans nPage = .230058.2AIC March 14, 2025 (6:41pm) s k m e - 17 -the eschool adistrict nthat ehas dsubmitted r e l u [ A d state-chartered charter school means the phaseapplication two formula value calculated pursuant to Paragraph (5) of this subsection for thefunding schooland district in which the state-charteredapproved charterpublic school iscapital physicallyoutlay project will be located;

(c) "subject school district" means the school district that has submitted the application for funding and in which the approved public school capital outlay project will be located;

(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 h maintaining a preventive maintenance program.

The council u » r shall adopt such rules as are necessary to implement the t h g e l i provisions of this paragraph;

h r i s (9) the council may adjust the amount of local h , e h share otherwise required if it determines that a school t u g e b l e e , gh district has made a good-faith effort to use all of its local n d d i = = o h resources.

Before making any adjustment to the local share, l ] b ,d i a º r the council shall consider whether:

e(a) rthe =school tdistrict ehas winsufficient dbonding mcapacity over the next four years to provide the local match necessary to complete the project and, for all educational purposes, has a nresidential oproperty (a)tax rate of at least ten dollars ($10.00) on each one SB 401 thousand dollars ($1,000) of taxable value, as measured by Page 18 the sum of all rates imposed by resolution of the local school districtboard hasplus insufficientrates dset mto :pay interest and principal on outstanding school district general obligation bonds;

b r e t º o t n = .230058.2AIC March 14, 2025 (6:41pm) s k m e - 18 - e a n e d r e l u [ A d 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 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;

and 4) for all educational purposes, has a residential property tax rate of at least seven h dollars ($7.00) on each one thousand dollars ($1,000) of u » r taxable value, as measured by the sum of all rates imposed by t h g e l i resolution of the local school board plus rates set to pay h r i s interest and principal on outstanding school district general h , e h obligation bonds;

or t u g e b l e e , gh (c) the school district:

1) has an n d d i = = o h enrollment growth rate over the previous school year of at l ] b ,d i a º r least two and one-half percent;

2) pursuant to its five-year e r = t e w d m a n o facilities plan, will be building a new school within the next dtwo myears; :

band r3) efor tall ºeducational opurposes, thas na =residential .230058.2AICproperty Marchtax 14,rate 2025of (6:41pm)at sleast kten mdollars e($10.00) -on 19each -one ethousand adollars n($1,000) eof dtaxable rvalue, eas lmeasured uby [the Asum dof twoall years;rates imposed by SB 401 resolution of the local school board plus rates set to pay Page 19 interest and principal on outstanding school district general obligation bonds;

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 interest and principal on outstanding school district general obligation bonds;

and (11) no application for grant assistance from h the fund shall be approved unless the council determines that:

u » r (a) the public school capital outlay t h g e l i project is needed and included in the school district's five-five-year h r i s year facilities plan among its top priorities;

h , e h (b) the school district has used its t u g e b l e e , gh capital resources in a prudent manner;

n d d i = = o h (c) the school district has provided l ] b ,d i a º r insurance for buildings of the school district in accordance e r = t e w d m a n o with the provisions of Section 13-5-3 NMSA 1978;

d(d) mthe :school district has submitted a five-year facilities plan that includes:

b1) renrollment eSB t401 ºprojections; o t n = .230058.2AIC March 14, 2025 (6:41pm) s k m e - 20 - e a n e d r e l u [ A d (d) the school district has submitted a five-year facilities plan that includes:

1)2) enrollmenta projections;current preventive maintenance plan Page 20 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;

2) a current preventive maintenance plan that has been approved by the council pursuant to Section 22-24-5.3 NMSA and that is followed by each public school in the district;

(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 h charter school have a smaller deviation from the statewide u » r adequacy standards than other district facilities included in t h g e l i the application;

and h r i s (g) the school district has agreed, in h , e h writing, to comply with any reporting requirements or t u g e b l e e , gh conditions imposed by the council pursuant to Section 22-24-5.1 n d d i = = o h NMSA 1978.

l ] b ,d i a º r C.

After consulting with the public school capital eoutlay roversight =task tforce eand wother dexperts, mthe acouncil nshall oregularly outlayreview oversightand taskupdate forcestatewide andadequacy otherSB experts,401 thestandards councilapplicable dto mall :school districts.

bThe rstandards ePage t21 ºshall oestablish tthe nacceptable =level .230058.2AICfor Marchthe 14,physical 2025condition (6:41pm)and scapacity kof mbuildings, ethe -educational 21suitability -of efacilities a n e d r e l u [ A d shall regularly review and updatethe statewideneed adequacyfor standardscareer-technical applicableeducation tofacilities allor schoolclassrooms. districts.

The standards 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 [and the need for education technology infrastructure].

The acquisition of a facility by a school h district or charter school pursuant to a financing agreement u » r that provides for lease payments with an option to purchase for t h g e l i a price that is reduced according to lease payments made may be h r i s considered a public school capital outlay project and eligible h , e h for grant assistance under this section pursuant to the t u g e b l e e , gh following criteria:

n d d i = = o h (1) no grant shall be awarded unless the l ] b ,d i a º r council determines that, at the time of exercising the option eto rpurchase =the tfacility eby wthe dschool mdistrict aor ncharter oschool, tothe purchasefacility will equal or exceed the facilitystatewide bySB 401 adequacy standards and the schoolbuilding districtstandards orfor charterpublic dPage m22 :school facilities;

b r e t º o t n = .230058.2AIC March 14, 2025 (6:41pm) s k m e - 22 - e a n e d r e l u [ A d school, the facility will equal or exceed the statewide adequacy standards and the building standards for public school facilities;

(5) the portion of the total project cost to h be paid by the school district or charter school may be paid u » r from time to time as lease payments become due;

and t h g e l i (6) neither a grant award nor any provision of h r i s the Public School Capital Outlay Act creates a legal obligation h , e h for the school district or charter school to continue the lease t u g e b l e e , gh from year to year or to purchase the facility.

n d d i = = o h E.

In order to encourage private capital investment l ] b ,d i a º r in the construction of public school facilities, the purchase eof ra =privately towned eschool wfacility dthat mis, aat nSB o401 the time of application, in use by a privatelyschool owneddistrict may be Page 23 considered a public school facilitycapital thatoutlay is,project atand theeligible timefor ofgrant dassistance mpursuant :to this section if the council finds that:

b r e t º o t n = .230058.2AIC March 14, 2025 (6:41pm) s k m e - 23 - e a n e d r e l u [ A d application, in use by a school district may be considered a public school capital outlay project and eligible for grant assistance pursuant to this section if the council finds that:

provided h that, when determining the deviation from the statewide u » r adequacy standards for the purposes of evaluating and t h g e l i prioritizing the project, the students using the facility shall h r i s be deemed to be attending other schools in the school district.

h , e h F.

It is the intent of the legislature that grant t u g e b l e e , gh assistance made pursuant to this section allows every school n d d i = = o h district to meet the standards developed pursuant to SubsectionSB l401 ]Subsection b ,d i a º r C of this section;

provided, however, that nothing Page 24 in the ePublic rSchool =Capital tOutlay eAct wor dthe mdevelopment of standards pursuant to that act prohibits a nschool odistrict Publicfrom Schoolusing Capitalother Outlayfunds Actavailable orto the developmentdistrict ofto dexceed mthe :statewide adequacy standards.

b r e t º o t n = .230058.2AIC March 14, 2025 (6:41pm) s k m e - 24 - e a n e d r e l u [ A d standards pursuant to that act prohibits a school district from using other funds available to the district to exceed the statewide adequacy standards.

Upon the recommendation of the authority, the council shall develop building standards for public school h facilities and shall promulgate other such rules as are u » r necessary to carry out the provisions of the Public School t h g e l i Capital Outlay Act.

h r i s J.

No later than December 15 of each year, the h , e h council shall prepare a report summarizing its activities t u g e b l e e , gh during the previous fiscal year.

The report shall describe in n d d i = = o h detail all projects funded, the progress of projects previouslySB l401 ]previously b ,d i a º r funded but not completed, the criteria used to prioritizePage and25 eprioritize rand = t e w d m a n o fund projects and all other council actions.

The report shall dbe msubmitted :to the public education commission, the governor, the legislative finance committee, the legislative education study committee and the legislature.

b r e t º o t n = .230058.2AIC March 14, 2025 (6:41pm) s k m e - 25 - e a n e d r e l u [ A d be submitted to the public education commission, the governor, the legislative finance committee, the legislative education study committee and the legislature.

h Withdrawals of students, in addition to students formally g o t hr withdrawn from the public school, include students absent from g e i k the public school for as many as ten consecutive school days;

h r i s provided that withdrawals do not include students in need of h , t, early intervention and habitual truants the school district is e u g e b l e e h required to intervene with and SB 401 keep in an educational setting." nPage d26 d i = = o h SECTION 5.

Section 63-9J-1 NMSA 1978 (being Laws 2021, l ] b ,d i a º e Chapter 123, Section 1) is amended to read:

r i = r t e w d m a n o "63-9J-1.

SHORT TITLE.--[ThisTITLE.--Chapter act ] Chapter 63, Article 9J dNMSA m1978 :may be cited as the "Broadband Access and Expansion Act"." SECTION 6.

b e d s º o t n = .230058.2AIC March 14, 2025 (6:41pm) s k m e - 26 - e a n e d r e l u [ A d NMSA 1978 may be cited as the "Broadband Access and Expansion Act"." SECTION 6.

[C.] D.

"department", unless otherwise specified, h means the department of information technology;

gE. o t hr [D.

]"director" E.means the director of the broadband office;

"director"F. means the director of the g e i k broadband office;

h"education rtechnology iinfrastructure" smeans F.the physical hardware and services used to interconnect students, SB 401 teachers, school districts and school buildings necessary to Page 27 support broadband connectivity and remote learning as determined by the broadband office;

"educationG. technology infrastructure" means the h , t, physical hardware and services used to interconnect students, e u g e b l e e h teachers, school districts and school buildings necessary to n d d i = = o h support broadband connectivity and remote learning as l ] b ,d i a º e determined by the broadband office;

r"end iuser" =means ran tindividual, ebusiness, winstitution dor mgovernmental aentity nthat osubscribes [E.]to G.an internet service and does not resell that service to other individuals or entities;

"endH. user" means an individual, business, d m :

b e d s º o t n = .230058.2AIC March 14, 2025 (6:41pm) s k m e - 27 - e a n e d r e l u [ A d institution or governmental entity that subscribes to an internet service and does not resell that service to other individuals or entities;

[F.] H.

(4) wireless spectrum for which the entity h holds a license or that the entity manages or has obtained the g o t hr right to use via a spectrum leasing arrangement or comparable g e i k arrangement pursuant to federal regulations promulgated h r i s pursuant to the federal Communications Act of 1934, as amended, h , t, or upon subsequent amendment or repeal of SB 401 that act, by the e u g e b l e e h broadband office by rule;

or nPage d28 d i = = o h (5) unlicensed spectrum;

l ] b ,d i a º e I.

"fund" means the education technology r i = r t e w d m a n o infrastructure fund;

dJ. m :

b e d s º o t n = .230058.2AIC March 14, 2025 (6:41pm) s k m e - 28 - e a n e d r e l u [ A d [G.] J.

[H.K.

] K.

[I.L.

] L.

[J.M.

]"public M.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;

"publicN. 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 h institutions;

g"quality oof tservice" hrmeans [K.the standards established by the federal communications commission;

]O. N.

"quality"school ofdistrict" service"includes means the standardsconstitutional gspecial eschools iand kstate-chartered establishedcharter byschools; the federal communications commission;

hSB r401 iP. s O.

"school district"district includespopulation density" means the constitutionalPage h29 ,population t,density specialon schoolsa andper-square-mile state-charteredbasis charterof schools;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;

eQ. u g e b l e e h P.

"school district population density" means the n d d i = = o h population density on a per-square-mile basis of a school l ] b ,d i a º e district as estimated by the broadband office based on the most r i = r t e w d m a n o current tract level population estimates published by the d m :

b e d s º o t n = .230058.2AIC March 14, 2025 (6:41pm) s k m e - 29 - e a n e d r e l u [ A d United States census bureau;

[L.] Q.

[M.R.

] R.

and (3) to support internet-reliant state, local and tribal government functions and facilitate the delivery of h governmental services in a manner that is competitive with g o t hr similar government agencies in neighboring states;

gS. e i k [N.

]"underserved" S.means an area or property that does not have access to internet service offering speeds greater than one hundred megabits downstream and twenty SB 401 megabits upstream;

"underserved" means an area or property h r i s that does not have access to internet service offering speeds h , t, greater than one hundred megabits downstream and twentyPage e30 uT. g e b l e e h megabits upstream;

and"unserved" nmeans dan darea ior =property =that oeither hdoes [O.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.

] T.

"unserved" means an area or property that l ] b ,d i a º e either does not have access to internet service at all or only r i = r t e w d m a n o has access to internet service offering speeds below twenty- d m :

b e d s º o t n = .230058.2AIC March 14, 2025 (6:41pm) s k m e - 30 - e a n e d r e l u [ A d five megabits per second downstream or three megabits per second upstream." SECTION 7.

"[NEW"EDUCATION MATERIAL ] EDUCATION TECHNOLOGY INFRASTRUCTURE FUND CREATED--USE.-- A.

h C.

The fund may be expended annually by the g o t hr broadband office for education technology infrastructure g e i k projects that are in conformance with the standards and h r i s guidelines developed pursuant to this 2025 act and grants to h , t, school districts for education technology projects, including eSB u401 g e b l e e h expenses for management of such projects;

provided that the nPage d31 d i = = o h total amount of project management expense assistance from the l ] b ,d i a º e fund per project shall not exceed five percent of the project r i = r t e w d m a n o grant.

dD. m :

b e d s º o t n = .230058.2AIC March 14, 2025 (6:41pm) s k m e - 31 - e a n e d r e l u [ A d D.

"[NEW"EDUCATION MATERIAL] EDUCATION TECHNOLOGY INFRASTRUCTURE DEFICIENCY CORRECTIONS.-- A.

(a) correcting education technology h infrastructure deficiencies in or affecting school districts;

g o t hr and g e i k (b) reasonable costs for a school h r i s district's share of the project costs;

and h , t, (3) a methodology for prioritizing projects toSB e401 uto g e b l e e h correct education technology infrastructure deficiencies inPage or32 nin dor d i = = o h affecting school districts.

l ] b ,d i a º e B.

The broadband office shall develop guidelines rfor ia =statewide reducation ttechnology einfrastructure wnetwork dthat mintegrates aregional nhub olocations for anetwork statewideservices educationand technologythe infrastructureinstallation networkand dmaintenance mof :equipment.

b e d s º o t n = .230058.2AIC March 14, 2025 (6:41pm) s k m e - 32 - e a n e d r e l u [ A d that integrates regional hub locations for network services and the installation and maintenance of equipment.

"[NEW"EDUCATION MATERIAL] EDUCATION TECHNOLOGY INFRASTRUCTURE PROJECTS--APPLICATION--GRANTPROJECTS-- ASSISTANCE.--APPLICATION-- hGRANT ASSISTANCE.-- A.

Applications for grant assistance, approval of g o t hr applications, prioritization of projects and grant awards for g e i k education technology infrastructure shall be conducted pursuant h r i s to the provisions of this section.

hSB ,401 t, B.

The broadband office shall establish project efunding uPage g33 e b l e e h funding requirements and priority standards for school n d d i = = o h districts by rule based on the following factors:

l ] b ,d i a º e (1) school district geographic size and r i = r t e w d m a n o population;

d(2) mschool :district population density;

b e d s º o t n = .230058.2AIC March 14, 2025 (6:41pm) s k m e - 33 - e a n e d r e l u [ A d (2) school district population density;

h D.

The broadband office shall apply the adequacy g o t hr standards to state-chartered charter schools to the same extent g e i k that they are applied to other public schools.

h r i s E.

The broadband office shall adopt and apply hSB ,401 t, adequacy standards appropriate to the unique needs of the ePage u34 g e b l e e h constitutional special schools.

n d d i = = o h F.

In an emergency in which the health or safety of l ] b ,d i a º e students or school personnel is at immediate risk or in which rthere iis =a rthreat tof esignificant wproperty ddamage, mthe abroadband noffice omay thereaward isgrant assistance for a threatproject ofusing significantcriteria propertyother damage,than the broadbandadequacy dstandards. m :

b e d s º o t n = .230058.2AIC March 14, 2025 (6:41pm) s k m e - 34 - e a n e d r e l u [ A d office may award grant assistance for a project using criteria other than the adequacy standards.

(3) concepts that promote efficient but h flexible use of space;

and u » r (4) any other financing or construction t h g e l i concept that may maximize the dollar effect of the state grant h r i s assistance.

hSB ,401 e h H.

No application for grant assistance from the tPage u35 g e b l e e , gh fund shall be approved unless the broadband office determines n d d i = = o h that:

l ] b ,d i a º r (1) the education technology infrastructure e r = t e w d m a n o project is needed and included in the school district's dfive-year mfacilities :plan among its top priorities;

b r e t º o t n = .230058.2AIC March 14, 2025 (6:41pm) s k m e - 35 - e a n e d r e l u [ A d five-year facilities plan among its top priorities;

h (5) the school district is willing and able to g o t hr pay any portion of the total cost of the education technology g e i k infrastructure project that is not funded with grant assistance h r i s from the fund;

hSB ,401 t, (6) the application includes the education ePage u36 g e b l e e h technology infrastructure needs of any charter school located n d d i = = o h in the school district, or the school district has shown that l ] b ,d i a º e the education technology infrastructure needs of the charter r i = r t e w d m a n o school have a smaller deviation from the statewide adequacy dstandards mthan :other district education technology infrastructure included in the application;

b e d s º o t n = .230058.2AIC March 14, 2025 (6:41pm) s k m e - 36 - e a n e d r e l u [ A d standards than other district education technology infrastructure included in the application;

No later than November 1 of each year, the broadband office shall prepare a report summarizing its h education technology infrastructure activities during the u » r previous fiscal year.

The report shall describe in detail all t h g e l i projects funded, the progress of projects previously funded but h r i s not completed, the criteria used to prioritize and fund hSB ,401 e h projects and all other broadband office actions.

The report tPage u37 g e b l e e , gh shall be submitted to the public education commission, the n d d i = = o h governor, the legislative finance committee, the legislative l ] b ,d i a º r education study committee and the legislature." e r = t e w d m a n o SECTION 10.

TEMPORARY PROVISION--TRANSFER OF FUNCTIONS, dPERSONNEL, mMONEY, :APPROPRIATIONS, PROPERTY, CONTRACTUAL OBLIGATIONS AND STATUTORY REFERENCES.-- A.

b r e t º o t n = .230058.2AIC March 14, 2025 (6:41pm) s k m e - 37 - e a n e d r e l u [ A d PERSONNEL, MONEY, APPROPRIATIONS, PROPERTY, CONTRACTUAL OBLIGATIONS AND STATUTORY REFERENCES.-- A.

As used in this section, "broadband deployment h and connectivity program" means the program administratively u » r established by the public school facilities authority to t h g e l i fulfill its support functions to the public school capital h r i s outlay council to meet the council's duties pursuant to SectionSB h401 ,Section e h 22-24-4.5 NMSA 1978 as that section existed prior to JulyPage 1,38 tJuly u1, g e b l e e , gh 2025.

n d d i = = o h SECTION 11.

REPEAL.--Section 22-24-4.5 NMSA 1978 (being l ] b ,d i a º r Laws 2014, Chapter 28, Section 4, as amended) is repealed.

e r = t e w d m a n o SECTION 12.

EFFECTIVE DATE.--The effective date of the dprovisions mof :this act is July 1, 2025.

bSB r401 ePage t39 º7 o9 t25 n = .230058.2AIC March 14, 2025 (6:41pm) s k m e - 38 - e a n e d r e l u [ A d provisions of this act is July 1, 2025.

- 39 - » g o » r h t i k l i g t h s , e h t l i w l b l e e , g n d l h = = b , a l º d i a r e r = , a t e d m a n o d m :

b r e t º o t n = .230058.2AIC March 14, 2025 (6:41pm) s k em e e a n e d r e l u [ A d