SB 43 — FUNDING OF DEMOLITION OF ABANDONED SCHOOLS

SENATEAN BILLACT 43RELATING 55THTO LEGISLATUREPUBLIC -STATEOFNEWMEXICO-SCHOOL FIRSTCAPITAL SESSION,OUTLAY; 2021 INTRODUCED BY William P.

Soules 6 8 10 AN ACT RELATING TO PUBLIC SCHOOL CAPITAL OUTLAY;

157 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 22-24-4 NMSA 1978 (being Laws 1975, e t 17 Chapter 235, Section 4, as amended by Laws 2019, Chapter 179, w l n d 18 Section 2 and by Laws 2019, Chapter 180, Section 1) is amended = = 19 a l to read:

i a e r 20 "22-24-4.

PUBLIC SCHOOL CAPITAL OUTLAY FUND CREATED-- a t m m 21 USE.-- d r e 22 A.

The "public school capital outlay fund" is c e s k 23 created.

Balances remaining in the fund at the end of each e a n b 24 fiscal year shall not revert.

u [ B.

Except as provided in Subsections G and I .218518.1 through Q of this section, money in the fund may be used only for capital expenditures deemed necessary by the council for an adequate educational program.

The SB 43 Page 1 council shall authorize the lending of the portable classrooms to school districts upon request and upon finding that sufficient need exists.

expenses of maintenance and insurance of the portable classrooms while in the custody of a e t 17 school district shall be the responsibility of the school w l n d 18 district.

The council may authorize the permanent disposition = = 19 a l of the portable classrooms by the authority with prior approval i a e r 20 of the state board of finance.

a t m m 21 D.

Applications for assistance from the fund shall d r e 22 be made by school districts to the council in accordance with c e s k 23 requirements of the council.

Except as provided in Subsection e a n b 24 K of this section, the council shall require as a condition of u [ application that a school district have a current five-year .218518.1 - 2 - facilities plan [which] that shall include a current preventive maintenance plan to which the school adheres for each public school in the school district.

Money in the fund shall be disbursed by warrant SB 43 Page 2 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.

(1) up to ten percent of the portion of the project cost funded with distributions from the fund or five e t 17 percent of the total project cost, whichever is greater, may be w l n d 18 paid to the school district before work commences with the = = 19 a l balance of the grant award made on a cost-reimbursement basis;

i a e r 20 or a t m m 21 (2) the council may authorize payments d r e 22 directly to the contractor.

c e s k 23 G.

Balances in the fund may be annually e a n b 24 appropriated for the core administrative functions of the u [ authority pursuant to the Public School Capital Outlay Act, .218518.1 - 3 - and, in addition, balances in the fund may be expended by the authority, upon approval of the council, for project management expenses;

(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 SB 43 Page 3 three previous fiscal years;

provided that money allocated pursuant to this subsection shall be expended within three e t 17 years of the allocation.

w l n d 18 I.

The fund may be expended annually by the council = = 19 a l for grants to school districts for the purpose of making lease i a e r 20 payments for classroom facilities, including facilities leased a t m m 21 by charter schools.

The grants shall be made upon application d r e 22 by the school districts and pursuant to rules adopted by the c e s k 23 council;

provided that an application on behalf of a charter e a n b 24 school shall be made by the school district, but, if the school u [ district fails to make an application on behalf of a charter .218518.1 - 4 - school, the charter school may submit its own application.

(a) the actual annual lease payments owed for leasing classroom space for schools, including SB 43 Page 4 charter schools, in the school district;

(2) a grant received for the lease payments of e t 17 a charter school may be used by that charter school as a state w l n d 18 match necessary to obtain federal grants pursuant to the = = 19 a l federal Every Student Succeeds Act;

i a e r 20 (3) at the end of each fiscal year, any a t m m 21 unexpended or unencumbered balance of the appropriation shall d r e 22 revert to the fund;

c e s k 23 (4) no grant shall be made for lease payments e a n b 24 due pursuant to a financing agreement under which the u [ facilities may be purchased for a price that is reduced .218518.1 - 5 - according to the lease payments made unless:

SB 43 Page 5 (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;

e t 17 (a) "MEM" means:

1) the average w l n d 18 full-time-equivalent enrollment using leased classroom = = 19 a l facilities on the second and third reporting dates of the prior i a e r 20 school year;

or 2) in the case of an approved charter school a t m m 21 that has not commenced classroom instruction, the estimated d r e 22 full-time-equivalent enrollment that will use leased classroom c e s k 23 facilities in the first year of instruction, as shown in the e a n b 24 approved charter school application;

provided that, after the u [ second reporting date of the school year, the MEM shall be .218518.1 - 6 - adjusted to reflect the full-time-equivalent enrollment on that date;

and (b) "classroom facilities" or "classroom space" includes the space needed, as determined by the minimum required under the statewide adequacy standards, SB 43 Page 6 for the direct administration of school activities.

The authority may enter into e t 17 contracts with the state fire marshal, the construction w l n d 18 industries division or the appropriate local authorities to = = 19 a l carry out the provisions of this subsection.

Such a contract i a e r 20 may provide for initial estimated payments from the fund prior a t m m 21 to the expenditures if the contract also provides for d r e 22 additional payments from the fund if the actual expenditures c e s k 23 exceed the initial payments and for repayments back to the fund e a n b 24 if the initial payments exceed the actual expenditures.

Money u [ distributed from the fund to the state fire marshal or the .218518.1 - 7 - construction industries division pursuant to this subsection shall be used to supplement, rather than supplant, appropriations to those entities.