SENATE BILL 45
56th legislature - STATE OF NEW MEXICO - second session, 2024
INTRODUCED BY
Michael Padilla
AN ACT
RELATING TO BROADBAND; AMENDING THE TAX ADMINISTRATION ACT TO PROVIDE FOR THE ISSUANCE OF SUPPLEMENTAL SEVERANCE TAX BONDS FOR EDUCATION TECHNOLOGY INFRASTRUCTURE; AMENDING THE PROCUREMENT CODE TO INCLUDE PROFESSIONAL SERVICE CONTRACTS FOR BROADBAND INFRASTRUCTURE WITHIN THE EXCEPTIONS TO THE FOUR-YEAR LIMITATION ON MULTI-TERM PROFESSIONAL SERVICE CONTRACTS; ENACTING A NEW SECTION OF CHAPTER 62 NMSA 1978 TO PROVIDE FOR THE REGULATION OF UTILITY POLE ATTACHMENTS; AMENDING THE WIRELESS CONSUMER ADVANCED INFRASTRUCTURE INVESTMENT ACT TO INCLUDE THE STATE OF NEW MEXICO WITHIN THE DEFINITION OF "AUTHORITY"; AMENDING THE BROADBAND ACCESS AND EXPANSION ACT; ADDING DEFINITIONS; CREATING THE EDUCATION TECHNOLOGY INFRASTRUCTURE FUND; PROVIDING FOR RULEMAKING; AUTHORIZING GRANTS; AMENDING THE CONNECT NEW MEXICO ACT TO PROVIDE FOR DISBURSEMENTS FROM THE CONNECT NEW MEXICO FUND PURSUANT TO VOUCHERS SIGNED BY THE DIRECTOR OF THE OFFICE OF BROADBAND ACCESS AND EXPANSION; TRANSFERRING THE PUBLIC SCHOOL FACILITIES AUTHORITY'S BROADBAND DEPLOYMENT AND CONNECTIVITY PROGRAM TO THE OFFICE OF BROADBAND ACCESS AND EXPANSION; TRANSFERRING BROADBAND INFRASTRUCTURE FROM THE DEPARTMENT OF INFORMATION TECHNOLOGY TO THE OFFICE OF BROADBAND ACCESS AND EXPANSION.
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. 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 [of this 2017 act] 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:
(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 [of this 2017 act] 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. [NEW MATERIAL] SUPPLEMENTAL SEVERANCE TAX BONDS--EDUCATION TECHNOLOGY INFRASTRUCTURE.--
A. The director of the office of broadband access and expansion is authorized to 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 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 fund."
SECTION 3. Section 13-1-150 NMSA 1978 (being Laws 1984, Chapter 65, Section 123, as amended) is amended to read:
"13-1-150. MULTI-TERM CONTRACTS--SPECIFIED PERIOD.--
A. A multi-term contract for items of tangible personal property, construction or services except for professional services, in an amount under twenty-five thousand dollars ($25,000), may be entered into for any period of time deemed to be in the best interests of the state agency or a local public body not to exceed four years; provided that the term of the contract and conditions of renewal or extension, if any, are included in the specifications and funds are available for the first fiscal period at the time of contracting. If the amount of the contract is twenty-five thousand dollars ($25,000) or more, the term shall not exceed ten years, including all extensions and renewals, except that for a contract entered into pursuant to the Public Facility Energy Efficiency and Water Conservation Act, the term shall not exceed twenty-five years, including all extensions and renewals. Payment and performance obligations for succeeding fiscal periods shall be subject to the availability and appropriation of funds therefor.
B. A contract for professional services may not exceed four years, including all extensions and renewals, except for the following:
(1) services required to support or operate federally certified medicaid, financial assistance and child support enforcement management information or payment systems;
(2) services to design, develop or implement the taxation and revenue information management systems project authorized by Laws 1997, Chapter 125;
(3) a multi-term contract for the services of trustees, escrow agents, registrars, paying agents, letter of credit issuers and other forms of credit enhancement and other similar services, excluding bond attorneys, underwriters and financial advisors with regard to the issuance, sale and delivery of public securities, may be for the life of the securities or as long as the securities remain outstanding;
(4) services relating to the implementation, operation and administration of the Education Trust Act;
(5) services relating to measurement and verification of conservation-related cost savings and utility cost savings pursuant to the Public Facility Energy Efficiency and Water Conservation Act;
(6) services relating to the design and engineering of a state public works project:
(a) for a period not to exceed the requisite time for project completion and a subsequent warranty period; and
(b) upon approval of the secretary of finance and administration; [and]
(7) services relating to the design and engineering of a regional water project with an estimated cost of more than five hundred million dollars ($500,000,000):
(a) for a period not to exceed the requisite time for project completion and a subsequent warranty period; and
(b) upon approval of the secretary of finance and administration; and
(8) services connected to the design, engineering or operation of broadband infrastructure pursuant to the Broadband Access and Expansion Act."
SECTION 4. Section 22-24-3 NMSA 1978 (being Laws 1975, Chapter 235, Section 3, as amended) is amended to read:
"22-24-3. DEFINITIONS.--As used in the Public School Capital Outlay Act:
A. "authority" means the public school facilities authority;
B. "building system" means a set of interacting parts that makes up a single, nonportable or fixed component of a facility and that, together with other building systems, makes up an entire integrated facility or property, including roofing, electrical distribution, electronic communication, plumbing, lighting, mechanical, fire prevention, facility shell, interior finishes, heating, ventilation and air conditioning systems and school security systems, as defined by the council;
C. "constitutional special schools" means the New Mexico school for the blind and visually impaired and the New Mexico school for the deaf;
D. "constitutional special schools support spaces" means all facilities necessary to support the constitutional special schools' educational mission that are not included in the constitutional special schools' educational adequacy standards, including performing arts centers, facilities for athletic competition, school district administration and facility and vehicle maintenance;
E. "council" means the public school capital outlay council;
[F. "education technology infrastructure" means the physical hardware and services used to interconnect students, teachers, school districts and school buildings necessary to support broadband connectivity and remote learning as determined by the council;
G.] F. "fund" means the public school capital outlay fund;
[H.] G. "maximum allowable gross square foot per student" means a determination made by applying the established maximum allowable square foot guidelines for educational facilities based on type of school and number of students in the current published New Mexico public school adequacy planning guide to the department's current year certified first reporting date membership;
[I.] H. "replacement cost per square foot" means the statewide cost per square foot as established by the council;
[J.] I. "school district" includes state-chartered charter schools and the constitutional special schools;
[K.] J. "school district population density" means the population density on a per square mile basis of a school district as estimated by the authority based on the most current tract level population estimates published by the United States census bureau; and
[L.] K. "school district population density factor" means zero when the school district population density is greater than fifty people per square mile, six-hundredths when the school district population density is greater than fifteen but less than fifty-one persons per square mile and twelve-hundredths when the school district population density is less than sixteen persons per square mile."
SECTION 5. 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 [O] 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.
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 t