Summary:

 Senate Bill 125 (SB 125) amends and adds to the Public School Capital Outlay code. SB 125 creates the Building System Innovation Project Initiative to provide grant assistance for the replacement of building systems to extend the useful life of a building and makes conforming amendments to the Public School Capital Outlay Act. SB 125 makes an appropriation.
 

Legislation Overview:

 Senate Bill 125 (SB 125) amends and adds to the Public School Capital Outlay code as follows:
SECTION 1 amends Public Schools Section 22-24-4.6 NMSA 1978 (being Laws 2015, Chapter 93, Section 3, as amended) BUILDING SYSTEM REPAIR, RENOVATION OR REPLACEMENT.
Subsection A inserts text to allow that the guidelines for a building system repair, renovation or replacement initiative shall apply to all applications and grant assistance awards for these projects.
Subsection B deletes text that a school district shall submit a request to insert text that states: the school district may request grant assistance for a building system repair, renovation or replacement by submitting an application to the council.
Subsection C inserts text to specify that upon receipt of an application the authority shall verify the assessment made by the school district and rank the application.
Subsection D is revised as follows:
D. The council shall review an application at a public hearing and, subject to availability of money in the fund, approve grant assistance for building system repair, renovation or replacement projects in accordance with the priorities adopted by the council; provided that no project shall be approved unless the council determines that the school district is willing and able to pay the portion of the total cost of the project that is not funded with grant assistance from the fund.
Subsection E makes a change to provide that the school district shall share with the state the total cost of an approved building system project calculated as specified in this subsection.
SECTION 2 adds a new section of the Public School Capital Outlay Act to create the Building System Innovation Project Initiative Project. 
A. provides a definition of the Project.
B. Beginning July 1, 2025, a school district may submit an application for grant assistance for a Project to the council that shall include the elements specified in this subsection.
C. The authority shall verify the assessment, evaluate the application and rank the application in accordance with council rules. 
D. The council shall review an application at a public hearing and, subject to availability of money in the fund for that purpose, approve the application if the council determines that the building system innovation project is likely to:
- extend the useful life of the building, 
- promote student health and safety, 
- promote environmental improvement and 
- reduce the costs of energy consumption. 
E. The council shall prioritize applications for building system innovation projects that: 
(1) are eligible to receive federal funding; 
(2) include the replacement of an evaporative cooling system; or 
(3) utilize photovoltaic technology in the electrical distribution system. 
F. The state's and school district's shares of the total cost of a project shall be calculated in accordance with Subsection B of Section 22-24-5 NMSA 1978. The council shall not approve an application unless it determines that the school district is willing and able to pay the school district's share of the total cost of a project. 
G. Grant assistance awarded pursuant to this section shall be expended by the school district within three years from the date the council approved the application. 
SECTION 3 makes an appropriation of $10,000,000 from the General Fund to the public school capital outlay fund for expenditure in Fiscal Year 2026 and subsequent fiscal years to provide grant assistance for Projects. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the General Fund.
 

Current Law:

 Senate Bill 228899 (SB 228899) amends Public School Capital Outlay.
Public Schools Section 22-24-4.6 NMSA 1978 (being Laws 2015, Chapter 93, Section 3, as amended) BUILDING SYSTEM REPAIR, RENOVATION OR REPLACEMENT currently does not allow for certain projects to be funded or allow grant assistance.