HB 86 — SCHOOL BUS REPLACEMENT & CONTRACTS

HOUSE APPROPRIATIONS AND FINANCE COMMITTEE SUBSTITUTE FOR HOUSE BILL 86 53RD LEGISLATURE - STATEOFNEWMEXICO-STATE OF NEW MEXICO - SECOND SESSION , 2018 INTRODUCED4 BY6 Dennis8 J.10 AN ACT RELATING TO PUBLIC SCHOOLS;

RochREQUIRING 6THE 8PUBLIC FOREDUCATION THEDEPARTMENT LEGISLATIVETO EDUCATIONGRANT STUDYSCHOOL COMMITTEEDISTRICT 10AND ANSTATE-CHARTERED ACTCHARTER RELATINGSCHOOL REQUESTS TO PUBLICUSE SCHOOLS;A BUS IN EXCESS OF TWELVE YEARS CONTINGENT UPON ANNUAL SAFETY INSPECTIONS.

CHANGING16 REPLACEMENTBE CYCLESIT FORENACTED SCHOOL-DISTRICT-OWNEDBY BUSESTHE ANDLEGISLATURE CERTAINOF CONTRACTOR-OWNEDTHE BUSES;STATE OF NEW MEXICO:

ADJUSTINGe PROVISIONSt FOR17 CERTAINSECTION DEDUCTIONS1. FROM AMOUNTS DUE ON 14 SCHOOL BUS SERVICE CONTRACTS OR FOR CERTAIN REIMBURSEMENTS TO SCHOOL DISTRICTS.

eSection t22-8-27 17NMSA BE1978 IT(being ENACTEDLaws BY1967, THEw LEGISLATUREl OFn THEd STATE18 OFChapter NEW16, MEXICO:Section 77, as amended) is amended to read:

w= l= n19 d"22-8-27. 18 SECTION 1.

SectionTRANSPORTATION 22-8-27EQUIPMENT.-- NMSAa 1978l (beingi Lawsa 1967,e =r =20 19A. Chapter 16, Section 77, as amended) is amended to read:

aThe ldepartment ishall establish a esystematic a t m m 21 program for the purchase of necessary school bus transportation d r 20e "22-8-27.22 equipment.

TRANSPORTATIONc EQUIPMENT.--e as tk m23 mB. 21 A.

TheIn departmentestablishing shalla establishsystem afor systematicthe dreplacement rof e 22a programn forb 24 school-district-owned buses, the purchasedepartment ofshall necessaryprovide schoolfor busu transportation[ cthe ereplacement sof kschool 23buses equipment.on a twelve-year cycle;

e.210447.2 HAFC/HB 86 provided that the department shall grant a nschool bdistrict's 24request B.to use a bus in excess of twelve years contingent upon satisfactory annual safety inspections.

InSchool establishing a system for the replacement of u [ school-district-owned buses, the department shall provide for .208887.2 the replacement of each school [buses] bus on a [twelve-year] fifteen-year cycle [School districts requiring additional buses to accommodate growth in the school district or to meet other special needs may petition the department for additional buses.

Under exceptional circumstances, school districts may also 6 petition the department for permission to replace buses prior to the completion of a twelve-year cycle or[or to use buses in excess of twelve years,years contingent upon satisfactory annual safety inspections.]inspections]. or before school begins after the odometer reading of the school bus exceeds three hundred thousand miles, whichever occurs first.

The department shall establish procedures to ensure the e e 17 systematic replacement of [busesbuses on a twelve-year replacement e e n d 18 cycle.cycle;

Schoolprovided districts]that eachthe department shall grant a school = = l ] 19 district's or state-chartered charter school's request to use a a l r i 20 contractor-owned bus asin follows:excess of twelve years contingent upon t e a t satisfactory annual safety inspections.

=School =districts lm ]m 1921 (1)e ford eachrequiring busadditional purchasedbuses beforeto Julyaccommodate 1,growth ain lthe school r ie 2022 2011,c replacemente onr a:c 23 district or to meet other special needs may petition the e a n b 24 department for additional buses.

tUnder eexceptional au t[ (a)circumstances, school districts may also petition the .210447.2 - 2 - HAFC/HB 86 department for permission to replace buses prior to the completion of a twelve-year cycle;cycle [or to use buses in excess of twelve years contingent upon satisfactory annual safety inspections].

orD. m m 21 e d r e 22 (b) fifteen-year cycle or before school c e r c 23 begins after the odometer reading of the bus exceeds three e a n b 24 hundred thousand miles, whichever occurs first;

providedThe thatschool udistrict [shall thefile contractora agreeslien on thatevery replacementcontractor-owned cycleschool inbus lieuunder ofthe contract, which lien shall have priority second only to a .208887.2lien -securing 2a -purchase- twelve-yearmoney cycle;obligation.

andThe (2)school fordistrict eachshall busperfect purchasedits onlien or after July 1, 2011, replacement on aeach fifteen-yearcontractor-owned cycle or before school beginsbus afterby filing the odometerlien readingwith of the busmotor exceedsvehicle threedivision hundredof thousandthe miles,taxation whicheverand occursrevenue first.department.

6The D.lien shall be recorded on the title of the school bus.

A school districtbus requiringcontractor additionalshall busesnot torefinance accommodateor growthuse ina theschool bus on which a school district orhas toa meetlien otheras specialcollateral needsfor mayany petitionother theloan departmentwithout forprior additionalwritten buses.permission of the department.

Under exceptional circumstances, a school [districts] district may also petition the department for permission to replace [buses prior to the completion of a twelve-year cycle or to use buses in excess of twelve years] a bus on a schedule different from a replacement schedule provided pursuant to Subsection B of this section for a school-district-owned bus or Subsection C of this section for a contractor-owned bus, contingent upon satisfactory annual safety inspections.

e e 17 [D.] E.

The school district shall file a lien on e e n d 18 every contractor-owned school bus under the contract, which = = l ] 19 lien shall have priority second only to a lien securing a a l r i 20 purchase-money obligation.

The school district shall perfect t e a t its lien on each contractor-owned school bus by filing the lien m m 21 e d r e 22 with the motor vehicle division of the taxation and revenue c e r c 23 department.

The lien shall be recorded on the title of the e a n b 24 school bus.

A school bus contractor shall not refinance or use u [ a school bus on which a school district has a lien as .208887.2 - 3 - collateral for any other loan without prior written permission of the department.

The school district shall e e 17 release its lien on a school bus:

e e n d 18 (1) when the department authorizes a = = l ] 19 replacement of the school bus;

or a l r i 20 (2) when the contractor has reimbursed the t e a t school district the amount calculated pursuant to Subsection [E]E Fm m 21 e d of this section if the school bus service contract is r e 22 c e r c 23 terminated or not renewed and the contractor owes the school e a n b 24 district as provided in that subsection.

[E.]u F.[ E.

No school district shall pay rental fees for any .210447.2 - 3 - HAFC/HB 86 one bus for a period in excess of five years.

In the event a school bus service contract is terminated or not renewed by either party, the department shall calculate the bus could be remaining number of years that a contractor-ownedbus ecould ebe 17 used based on [aa twelve-year ] the replacement cycle required e e n d 18 pursuant to Subsection C of this section and calculate a value = = l ] 19 reflecting that use;use.

providedThe thatschool fordistrict ashall contractor-owneddeduct busan aamount lequal rto ithat 20value purchased from Julyany 1,remaining 2011amount throughdue Juneon 30, 2018, the tcontract, eor aif tno departmentbalance shallremains insteadon calculate the remainingcontract, numberthe ofcontractor mshall mreimburse 21the eschool ddistrict ran eamount 22equal yearsto thatthe avalue buscalculated. could be used based on a twelve-year cycle.

cF. e r c 23 The school district shall deduct an amount equal to [that ] the e a n b 24 calculated value from any remaining amount due on the contract, u [ or if no balance remains on the contract, the contractor shall .208887.2 - 4 - reimburse the school district an amount equal to the [value ] calculated value .

[F.]If G.the school district fails to take action to collect money owed to it when a school bus contract is terminated or not renewed, the department may deduct the amount from the school district's transportation distribution." - 4 - 16 e e 17 e e n d 18 = = l ] 19 a l r i 20 t e a t m m 21 e d r e 22 c e r c 23 e a n b 24 u [ .210447.2

If the school district fails to take action to collect money owed to it when a school bus contract is terminated or not renewed, the department may deduct the amount from the school district's transportation distribution." SECTION 2.

EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2018.

- 5 - 11 13 15 e e 17 e e n d 18 = = l ] 19 a l r i 20 t e a t m m 21 e d r e 22 c e r c 23 e a n b 24 u [ .208887.2