PUBLIC EDUCATION CHANGES, the official text

HOUSE BILL 253

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Joy Garratt and William P. Soules and Susan K. Herrera

AN ACT

RELATING TO PUBLIC SCHOOLS; AMENDING THE PUBLIC SCHOOL FINANCE
ACT; REQUIRING SCHOOL DISTRICTS AND CHARTER SCHOOLS TO REPORT
MEMBERSHIP ESTIMATES OF STUDENTS TO BE ENROLLED AS DISTANCE
LEARNING STUDENTS; REQUIRING SCHOOL DISTRICTS AND CHARTER
SCHOOLS TO MAINTAIN CERTAIN RECORDS REGARDING STUDENTS ENROLLED
IN A DISTANCE LEARNING PROGRAM; EXCLUDING A SCHOOL DISTRICT'S
MEMBERSHIP OF STUDENTS ENROLLED IN DISTANCE LEARNING PROGRAMS
FROM THE CALCULATION FOR SIZE ADJUSTMENT PROGRAM UNITS;
AMENDING THE STATEWIDE CYBER ACADEMY ACT AND RENAMING THAT ACT
THE "DISTANCE LEARNING ACT"; REMOVING EXISTING DEFINITIONS AND
DEFINING NEW TERMS IN THE PUBLIC SCHOOL FINANCE ACT AND THE
DISTANCE LEARNING ACT; REMOVING THE REQUIREMENT THAT THE
STATEWIDE CYBER ACADEMY BE A COLLABORATIVE PROGRAM; PROVIDING
ALL-NEW REQUIREMENTS FOR SCHOOL DISTRICTS AND CHARTER SCHOOLS
THAT OPERATE DISTANCE LEARNING PROGRAMS; PLACING RESTRICTIONS
ON STUDENT ENROLLMENT IN DISTANCE LEARNING PROGRAMS AND
PROVIDING EXCEPTIONS; CLARIFYING THE REQUIREMENTS OF SCHOOL
DISTRICTS AND CHARTER SCHOOLS REGARDING DISTANCE LEARNING AND
STUDENTS WITH DISABILITIES; REQUIRING PUBLIC EDUCATION
DEPARTMENT APPROVAL OF DISTANCE LEARNING PROGRAMS; PROVIDING A
PROCESS FOR SCHOOL DISTRICTS AND CHARTER SCHOOLS TO APPLY FOR
APPROVAL OF A PROGRAM; MAKING CONFORMING AMENDMENTS; ENACTING
TEMPORARY PROVISIONS RELATING TO THE PUBLIC SCHOOL FINANCE ACT;
ENACTING TEMPORARY PROVISIONS RELATING TO THE DISTANCE LEARNING
ACT; REPEALING SECTION 22-30-8 NMSA 1978 (BEING LAWS 2007,
CHAPTER 292, SECTION 7 AND LAWS 2007, CHAPTER 293, SECTION 7);
DECLARING AN EMERGENCY.

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

SECTION 1. Section 22-8-2 NMSA 1978 (being Laws 1978,
Chapter 128, Section 3, as amended) is amended to read:

"22-8-2. DEFINITIONS.--As used in the Public School
Finance Act:

A. "ADM" or "MEM" means membership;

B. "membership" means the total enrollment of
qualified students on the current roll of a class or school on
a specified day. The current roll is established by the
addition of original entries and reentries minus withdrawals.
Withdrawals of students, in addition to students formally
withdrawn from the public school, include students absent from
the public school for as many as ten consecutive school days;
provided that withdrawals do not include students who are in
need of intervention or who are chronically or excessively
absent;

C. "basic program ADM" or "basic program MEM" means
the MEM of qualified students but excludes the full-time-equivalent MEM in early childhood education and three- and
four-year-old students receiving special education services;

D. "cost differential factor" is the numerical
expression of the ratio of the cost of a particular segment of
the school program to the cost of the basic program in grades
four through six;

E. "department" or "division" means the public
education department;

F. "distance learning student" means a qualified
student enrolled in a full-time distance learning program in
accordance with the Distance Learning Act;

[F.] G. "early childhood education ADM" or "early
childhood education MEM" means the full-time-equivalent MEM of
students attending approved early childhood education programs;

[G.] H. "family income index rate" means the
percentage of students in a school district or charter school
that is identified as either extremely low income or very low
income by the family income index;

[H.] I. "full-time-equivalent ADM" or "full-time-
equivalent MEM" is that membership calculated by applying to
the MEM in an approved public school program the ratio of the
number of hours per school day devoted to the program to six
hours or the number of hours per school week devoted to the
program to thirty hours;

[I.] J. "operating budget" means the annual
financial plan and educational plan required to be submitted by
a local school board or governing body of a state-chartered
charter school;

[J.] K. "performance measure" means a quantitative
indicator used to assess the output or outcome of an approved
program;

[K.] L. "performance target" means the expected
level of performance of a program's performance measure;

[L.] M. "program cost" is the product of the total
number of program units to which a school district is entitled
multiplied by the dollar value per program unit established by
the legislature;

[M.] N. "program element" is that component of a
public school system to which a cost differential factor is
applied to determine the number of program units to which a
school district is entitled, including MEM, full-time-equivalent MEM, teacher, classroom or public school;

[N.] O. "program unit" is the product of the
program element multiplied by the applicable cost differential
factor;

[O.] P. "public money" or "public funds" means all
money from public or private sources received by a school
district or state-chartered charter school or officer or
employee of a school district or state-chartered charter school
for public use;

[P.] Q. "qualified student" means a public school
student who:

(1) has not graduated from high school;

(2) is regularly enrolled in one-half or more
of the minimum course requirements approved by the department
for public school students; and

(3) in terms of age and other criteria:

(a) is at least five years of age prior
to 12:01 a.m. on September 1 of the school year;

(b) is at least three years of age at
any time during the school year and is receiving special
education services pursuant to rules of the department;

(c) except as provided in Subparagraph
(d) of this paragraph, has not reached the student's twenty-second birthday on the first day of the school year; or

(d) has reached the student's twenty-second birthday on the first day of the 2019-2020 school year,
is counted in a school district's or charter school's MEM on
the third reporting date of the 2018-2019 school year, has been
continuously enrolled in the same public school since that
reporting date and is still enrolled in that school;

[Q.] R. "rural population rate" means that
proportion of the total population within a school district's
geographic boundaries that lives in a rural area and not in an
urban area as defined by the United States census bureau;

[R.] S. "staffing cost multiplier" means the
teacher cost index; and

[S.] T. "state superintendent" or "secretary" means
the secretary of public education or the secretary's designee."

SECTION 2. Section 22-8-12.1 NMSA 1978 (being Laws 1978,
Chapter 128, Section 5, as amended) is amended to read:

"22-8-12.1. MEMBERSHIP PROJECTIONS AND BUDGET

REQUESTS.--

A. On or before October 15 of each year, each local
school board or governing body of a state-chartered charter
school shall submit [annually, on or before October 15] to the
department:

(1) an estimate for the succeeding fiscal year
of:

(a) the membership of qualified students
to be enrolled in the basic program;

(b) the membership of students to be
enrolled as distance learning students;

[(b)] (c) the full-time-equivalent
membership of students to be enrolled in approved early
childhood education programs; and

[(c)] (d) the membership of students to
be enrolled in approved special education programs;

(2) all other information necessary to
calculate program costs; and

(3) any other information related to the
financial needs of the school district or state-chartered
charter school as may be requested by the department.

B. [All] The information [requested] submitted
pursuant to Subsection A of this section shall be submitted on
forms prescribed and furnished by the department and [shall
comply] in accordance with the department's rules and
procedures.

C. The department shall:

(1) review the financial needs of each school
district or state-chartered charter school for the succeeding
fiscal year;

(2) [submit annually] on or before September 1
of each year, submit to the department of finance and
administration, the legislative finance committee and the
legislative education study committee the department's
recommendations [of the department] for:

(a) amendments to the public school
finance formula;

(b) appropriations for the succeeding
fiscal year to the public school fund; and

(c) appropriations for the succeeding
fiscal year for pupil transportation and instructional
materials; and

(3) [submit annually] on or before November 30
of each year, submit to the department of finance and
administration, the legislative finance committee and the
legislative education study committee any adjustments to the
department's recommendations [of the department] for
appropriations related to additional enrollment growth program
units pursuant to Section 22-8-23.1 NMSA 1978."

SECTION 3. Section 22-8-13 NMSA 1978 (being Laws 1974,
Chapter 8, Section 3, as amended) is amended to read:

"22-8-13. REPORTS.--

A. Each public school shall keep accurate records
concerning membership in the public school.

B. The dates for which MEM is reported are as
follows:

(1) the first reporting date is the second
Wednesday in October of each year;

(2) the second reporting date is December 1 or
the first working day in December of each year; and

(3) the third reporting date is the second
Wednesday in February of each year.

C. The superintendent of each school district or
head administrator of [a] each state-chartered charter school
shall maintain the following reports for each reporting period:

(1) the basic program MEM by grade in each
public school;

(2) the early childhood education MEM;

(3) the special education MEM in each public
school in class C and class D programs as defined in Section
22-8-21 NMSA 1978;

(4) the number of class A and class B programs
as defined in Section 22-8-21 NMSA 1978; [and]

(5) the full-time-equivalent MEM for bilingual
multicultural education programs; and

(6) the distance-learning-student MEM by grade
in each public school.

D. The superintendent of each school district and
the head administrator of each state-chartered charter school
shall furnish all reports required by law or the department to
the department [within ten working days of] on or before the
close of each reporting period or as otherwise requested by the
department. Failure of the department to approve timely
submissions shall not cause a school district or charter school
to be found noncompliant with the requirements of this section.

E. For purposes of this section, "working day"
means every calendar day excluding Saturdays, Sundays and legal
holidays.

[E. All] F. The information required pursuant to
this section shall be [on forms] submitted in a manner
prescribed [and furnished] by the department. A copy of any
report made pursuant to this section shall be kept as a
permanent record of the school district or charter school and
shall be subject to inspection and audit at any reasonable
time.

[F.] G. The department may withhold up to one
hundred percent of allotments of funds to any school district
or state-chartered charter school where the superintendent or
head administrator has failed to comply with the requirements
of this section. The withholding may continue until the
superintendent or head administrator complies with and agrees
to continue complying with the requirements of this section.

[G.] H. The provisions of this section may be
modified or suspended by the department for any school
district, [or] school or state-chartered charter school
operating under the Variable School Calendar Act. The
department shall require MEM reports consistent with the
calendar of operations of such school district, [or] school or
state-chartered charter school and shall calculate an
equivalent MEM for use in projecting school district or charter
school revenue."

SECTION 4. Section 22-8-23 NMSA 1978 (being Laws 1975,
Chapter 119, Section 1, as amended by Laws 2019, Chapter 206,
Section 14 and by Laws 2019, Chapter 207, Section 14) is
amended to read:

"22-8-23. SIZE ADJUSTMENT PROGRAM UNITS.--

A. An approved public school [including a charter
school] with a MEM of fewer than four hundred, including early
childhood education full-time-equivalent MEM but excluding
membership in class C and class D programs and excluding full-time-equivalent membership in three- and four-year-old
developmentally disabled programs, that is geographically
located in a school district with fewer than two thousand MEM,
is eligible for additional program units. Separate schools
established to provide special programs, including [but not
limited to] vocational and alternative education, shall not be
classified as public schools for purposes of generating size
adjustment program units. The number of additional program
units to which a school district or charter school is entitled
under this subsection is the sum of elementary-junior high
units and senior high units computed in the following manner:

Elementary-Junior High Units

200 - MEM

_________ x 1.0 x MEM = Units

200

where MEM is equal to the membership of an approved elementary
or junior high school, including early childhood education
full-time-equivalent membership but excluding membership in
class C and class D programs and excluding full-time-equivalent
membership in three- and four-year-old developmentally disabled
programs;

Senior High Units

200 - MEM

_________ x 2.0 x MEM = Units

200

or,

Senior High Units

400 - MEM

_________ x 1.6 x MEM = Units

400

whichever calculation for senior high units is higher, where

MEM is equal to the membership of an approved senior high

school, excluding membership in class C and class D programs.

B. An approved public school with a MEM of fewer
than four hundred, including early childhood education full-time-equivalent MEM but excluding MEM in class C and class D
programs and excluding full-time-equivalent MEM in three- and
four-year-old developmentally disabled programs, geographically
located in a school district with two thousand MEM or more is
eligible for additional program units computed in the following
manner:

(1) for fiscal year 2020, eighty percent of
the sum of elementary-junior high units and senior high units
as prescribed in Subsection A of this section;

(2) for fiscal year 2021, sixty percent of the
sum of elementary-junior high units and senior high units as
prescribed in Subsection A of this section;

(3) for fiscal year 2022, forty percent of the
sum of elementary-junior high units and senior high units as
prescribed in Subsection A of this section;

(4) for fiscal year 2023, twenty percent of
the sum of elementary-junior high units and senior high units
as prescribed in Subsection A of this section; and

(5) for fiscal year 2024 and subsequent fiscal
years, no elementary-junior high units and senior high units as
prescribed in Subsection A of this section.

C. A school district with total MEM of fewer than
four thousand, including early childhood education full-time-equivalent MEM, is eligible for additional program units. The
number of additional program units to which a school district
is entitled under this subsection is the number of district
units computed in the following manner:

District Units

4,000 - MEM

___________ x 0.15 x MEM = Units

4,000

where MEM is equal to the total district membership,

including early childhood education full-time-equivalent
membership.

D. A school district [as defined in Subsection R of
Section 22-1-2 NMSA 1978] with a MEM of fewer than two hundred,
including early childhood education full-time-equivalent MEM,
is eligible for additional program units if the department
certifies that the school district has implemented practices to
reduce scale inefficiencies, including shared service
agreements with regional education cooperatives or other school
districts for noninstructional functions and distance
education. The numbers of additional program units to which a
school district is entitled under this subsection is the number
of units computed in the following manner:

200 - MEM = Units

where MEM is equal to the total district MEM, including early
childhood education full-time-equivalent MEM.

E. A school district with a rural population rate
greater than forty percent or a charter school initially
chartered before July 1, 2018 and geographically located in a
school district with a rural population rate greater than forty
percent is eligible for additional program units. The number
of additional program units to which a school district or
charter school is entitled pursuant to this subsection is
determined by multiplying the full-time-equivalent MEM by the
rural population rate and the cost differential factor of [0.03
for fiscal year 2020, 0.06 for fiscal year 2021, 0.09 for
fiscal year 2022, 0.12 for fiscal year 2023 and 0.15 for fiscal
year 2024 and subsequent fiscal years] 0.15; provided that the
full-time-equivalent MEM used for this determination does not
include membership derived from distance learning students."

SECTION 5. Section 22-30-1 NMSA 1978 (being Laws 2007,
Chapter 292, Section 1 and Laws 2007, Chapter 293, Section 1)
is amended to read:

"22-30-1. SHORT TITLE.--[Sections 1 through 7 of this
act] Chapter 22, Article 30 NMSA 1978 may be cited as the
["Statewide Cyber Academy Act"] "Distance Learning Act"."

SECTION 6. Section 22-30-2 NMSA 1978 (being Laws 2007,
Chapter 292, Section 2 and Laws 2007, Chapter 293, Section 2)
is amended to read:

"22-30-2. DEFINITIONS.--As used in the [Statewide Cyber
Academy Act:

A. "course provider" means a person that supplies
educational course content for distance learning courses;

B. "distance learning course" means an educational
course that is taught where the student and primary instructor
are separated by time or space and linked by technology;

C. "distance learning student" means a qualified
student as defined in Section 22-8-2 NMSA 1978 who is enrolled
in one or more distance learning courses for credit;

D. "learning management system" means a software
application that facilitates online instruction and interaction
between teachers and distance learning students;

E. "local distance learning site" means a school
district or charter school that offers and grants credit for
distance learning courses to distance learning students
enrolled in the school district or charter school;

F. "primary enrolling district" means the school
district or charter school in which the distance learning
student is enrolled;

G. "regional host" means an educational
institution, school district or other entity selected by the
statewide cyber academy to coordinate the delivery of distance
learning courses within a broad geographic region of the state;

H. "service center" means the single central
facility where administrative and management functions of the
statewide cyber academy are physically located in New Mexico;
and

I. "statewide cyber academy" means the department's
collaborative program that offers distance learning courses to
all local distance learning sites] Distance Learning Act:

A. "distance learning course" means an educational
course provided through virtual instruction;

B. "distance learning student" means a qualified
student in accordance with the provisions of the Public School
Finance Act who is enrolled in a full-time distance learning
program; and

C. "full-time distance learning program" means a
public school instructional program in which students receive
virtual instruction and are not required to attend school at a
school building."

SECTION 7. Section 22-30-3 NMSA 1978 (being Laws 2007,
Chapter 292, Section 3 and Laws 2007, Chapter 293, Section 3)
is amended to read:

"22-30-3. STATEWIDE CYBER ACADEMY CREATED.--The
"statewide cyber academy" [program] is created as a program in
the department. [The statewide cyber academy is a
collaborative program among the department, the higher
education department, telecommunications networks and
representatives of other state agencies engaged in providing
distance education.] The statewide cyber academy [shall] may
provide distance learning courses for [grades six through
twelve] sixth grade through twelfth grade and professional
development for teachers, instructional support providers and
school administrators."

SECTION 8. Section 22-30-4 NMSA 1978 (being Laws 2007,
Chapter 292, Section 4 and Laws 2007, Chapter 293, Section 4)
is amended to read:

"22-30-4. DEPARTMENT RULES.--The department shall
promulgate rules to carry out the provisions of the [Statewide
Cyber Academy] Distance Learning Act."

SECTION 9. Section 22-30-5 NMSA 1978 (being Laws 2007,
Chapter 292, Section 5 and Laws 2007, Chapter 293, Section 5)
is amended to read:

"22-30-5. [STATEWIDE CYBER ACADEMY] FULL-TIME DISTANCE
LEARNING PROGRAM--DUTIES.--[The statewide cyber academy shall:

A. establish a distance learning course delivery
system that is efficient and cost-effective and that uses a
statewide service center and regional hosts to provide approved
distance learning courses;

B. select regional hosts based on pre-existing
experience and capacity to facilitate the delivery of distance
educational programs, including public post-secondary
educational institutions, regional education cooperatives and
school districts;

C. provide technical and program support to
regional hosts and local distance learning sites;

D. ensure that all distance learning courses
offered by course providers are taught by highly qualified
teachers or members of the faculty of accredited post-secondary
educational institutions and meet state academic content and
performance standards;

E. provide for reasonable and equitable means to
allocate the costs of distance learning courses among the
statewide cyber academy, the course providers and the school
districts whose students are enrolled in a distance learning
course;

F. give first priority to the delivery of distance
learning courses for credit to distance learning students who
have the greatest need because of geographic location or
circumstances in which a school district may have difficulty
delivering essential course instruction due to financial
restraints or lack of highly qualified teachers; provided that
in fiscal year 2008 the statewide cyber academy shall include,
among those distance learning students who are determined to
have the greatest need, distance learning students served by
school districts that are members of regional education
cooperatives three, eight and nine;

G. ensure that the statewide cyber academy's
learning management system is compatible with school district
and department data collection, analysis and reporting systems;

H. ensure that all deficiencies in the
infrastructure, hardware and software in the statewide cyber
academy are corrected in accordance with educational technology
adequacy standards pursuant to Section 22-15A-11 NMSA 1978;

I. comply with all rules governing privacy and
confidentiality of student records for secure record storage;

J. offer distance learning courses to distance
learning students;

K. offer professional development via distance
learning, using a learning management system;

L. assist the council on technology in education in
its development of the statewide plan required by Section

22-15A-7 NMSA 1978, including a statewide cyber academy plan
that addresses short- and long-range goals;

M. define and coordinate the roles and
responsibilities of the collaborating agencies to establish a
distance learning governance and accountability framework; and

N. conduct an annual evaluation and provide an
annual report to the department and the legislature that
includes a detailed report of expenditures; a description of
services provided, including the number and location of local
distance learning sites, public schools and distance learning
students served; the courses offered; the credits generated by
local distance learning sites; and student and teacher
accountability reporting data.]

A. A school district or charter school that offers
a full-time distance learning program shall:

(1) administer the program in compliance with
the Public School Code, including Section 22-2-8.1 NMSA 1978
regarding required instructional hours and Section 22-10A-20
NMSA 1978 regarding class load and teaching load limits;

(2) administer the program in compliance with
state and federal law regarding student privacy, student record
confidentiality and secure student record storage;

(3) only provide distance learning courses
that are taught by licensed teachers or faculty members of
accredited post-secondary educational institutions and that
meet the department's academic content and performance
standards;

(4) on or before October 15 of each year,
notify the department as to the number of students enrolled in
the program and the grade level of the enrolled students; and

(5) maintain records of the district's or
charter school's expenditures related to the program and
furnish the records to the department at the department's
request and in the manner prescribed by the department.

B. A school district or charter school that
operates a full-time distance learning program shall not expand
the program to an additional grade level unless the school
district or charter school certifies to the department that the
program has sufficient courses for a full instructional program
for the additional grade level."

SECTION 10. Section 22-30-6 NMSA 1978 (being Laws 2007,
Chapter 292, Section 6 and Laws 2007, Chapter 293, Section 6)
is amended to read:

"22-30-6. DISTANCE LEARNING STUDENTS--ENROLLMENT.--

[A. A student must be enrolled in a public school
or a state-supported school and must have the permission of the
student's local distance education learning site to enroll in a
distance learning course. A distance learning student shall
only be counted in the student's primary enrolling district for
the purpose of determining the membership used to calculate a
school district's state equalization guarantee. A student
shall have only one primary enrolling district.

B. A home school student may participate in the
statewide cyber academy by enrolling for one-half or more of
the minimum course requirements approved by the department for
public school students in the school district in which the
student resides; or, if the student is enrolled for less than
one-half of the minimum course requirements, the student may
participate in the statewide cyber academy by paying not more
than thirty-five percent of the current unit value per
curricular unit.

C. A student enrolled in a nonpublic school may
participate in the statewide cyber academy if the school in
which the student is enrolled enters into a contract with the
school district in which the nonpublic school is located.

D. A student who is detained in or committed to a
juvenile detention facility or a facility for the long-term
care and rehabilitation of delinquent children may participate
in the statewide cyber academy if the facility in which the
student is enrolled enters into a contract with the school
district in which the facility is located.]

A. A school district shall not:

(1) enroll a student in the district's full-time distance learning program if the student does not reside
in the district; provided that the department may waive this
requirement if the department determines that a waiver is in
the student's best interest;

(2) require a student to enroll in a full-time
distance learning program;

(3) enroll a student in a full-time distance
learning program if the student is in kindergarten through
fifth grade unless the student's enrollment in the program is
required or otherwise authorized pursuant to the federal
Individuals with Disabilities Education Act or Section 504 of
the federal Rehabilitation Act of 1973; or

(4) enroll more than ten percent of the
district's MEM in a full-time distance learning program.

B. A charter school shall not:

(1) require a student to enroll in a full-time
distance learning program;

(2) enroll a student in a full-time distance
learning program if the student is in kindergarten through
fifth grade unless the student's enrollment in the program is:

(a) required or otherwise authorized
pursuant to the federal Individuals with Disabilities Education
Act or Section 504 of the federal Rehabilitation Act of 1973;
or

(b) authorized pursuant to the charter
school's charter or current charter contract; or

(3) enroll more than ten percent of the
charter school's MEM in a full-time distance learning program
unless authorized by the charter school's charter or current
charter contract.

C. The provisions of Subsections A and B of this
section do not apply to a school district or charter school if
temporary enrollment of the district's or charter school's
students in a full-time distance learning program is necessary
or appropriate during a public health emergency declared
pursuant to the Public Health Emergency Response Act."

SECTION 11. Section 22-30-7 NMSA 1978 (being Laws 2003,
Chapter 162, Section 2) is amended to read:

"22-30-7. DISTANCE LEARNING AND COMPUTER-BASED COURSES.--[Public schools that offer distance learning and computer-based
courses of study shall provide accompanying electronic formats
that are usable by a person with a disability using assistive
technology, and those formats shall be based on the American
standard code for information interchange, hypertext markup
language and extensible markup language] A school district or
charter school that has a full-time distance learning program
or offers distance learning courses or other computer-based
courses of study shall provide accompanying instructional
materials or other materials in an electronic format usable by
a person with a disability or compatible with the person's
assistive technology."

SECTION 12. A new section of the Distance Learning Act is
enacted to read:

"[NEW MATERIAL] DEPARTMENT APPROVAL OF PROGRAMS.--

A. A school district or charter school may
establish a full-time distance learning program only if the
program is approved by the department.

B. A school district or charter school seeking to
establish a full-time distance learning program shall submit an
application to the department on or before October 15 of the
school year immediately preceding the school year in which the
district or charter school will begin operating the program.

C. The department shall approve or deny an
application to establish a full-time distance learning program
on or before January 30 of the school year in which the
application was submitted.

D. The department may approve a school district's
or charter school's full-time distance learning program if the
department determines that the program is likely to improve
learning opportunities for students and that the school
district or charter school demonstrates the capacity of the
program to comply with all provisions of the Public School
Code. If the school district's or charter school's program
will be managed or operated by a contracted third party, the
department shall consider information about the third party's
reputation, track record or past performance if such
information is available.

E. The department's decision to deny an application
to establish a full-time distance learning program is final and
not subject to appeal.

F. The department shall review each approved full-time distance learning program at least once every three to
five years to determine whether the program shall maintain the
department's approval.

G. The Distance Learning Act shall not be construed
to prohibit a charter or charter contract for a charter school
that provides only virtual or online educational programming.

H. The department shall adopt rules for uniform
requirements for full-time distance learning programs and for a
uniform process for school districts or charter schools to
apply to establish those programs."

SECTION 13. TEMPORARY PROVISIONS.--

A. On or before February 27, 2026, the secretary of
public education may establish an adjusted unit value for use
in accordance with the Public School Finance Act for the 2025-2026 school year. In establishing the adjusted unit value, the
secretary shall consult with the department of finance and
administration, the legislative education study committee and
the legislative finance committee.

B. In fiscal years 2026 and 2027, a school district
is not eligible for enrollment growth program units pursuant to
Section 22-8-23.1 NMSA 1978 for students enrolled in a full-time distance learning program operated by a contracted third
party that is a for-profit corporation.

C. In fiscal year 2027, a school district's MEM for
use in accordance with the Public School Finance Act shall not
include students who were enrolled in a full-time distance
learning program in fiscal year 2026 if the program was
operated by a contracted third party that is a for-profit
corporation; provided that this section only applies to a
school district with a MEM enrolled in full-time distance
learning programs that accounts for more than seventy percent
of the district's total MEM.

D. For fiscal year 2027, a student shall not enroll
in a school district's or charter school's full-time distance
learning program if the student was not enrolled in the program
in fiscal year 2026 unless:

(1) the student's enrollment is required or
otherwise authorized by the federal Individuals with
Disabilities Education Act or Section 504 of the federal
Rehabilitation Act of 1973; or

(2) the program is operated by a charter
school that has a charter or current charter contract that
includes full-time distance learning programs.

E. For fiscal year 2027, a school district or
charter school shall not reorganize to create a school
district, school or school program that has a majority of
students enrolled in a full-time distance learning program.
For fiscal year 2027, a school district or the public education
commission shall not authorize a new charter school that will
have a majority of students enrolled in a full-time distance
learning program.

F. A school district or charter school operating a
full-time distance learning program as of the effective date of
this act shall submit an application to establish a full-time
distance learning program in accordance with the Distance
Learning Act.

G. As used in this section, "full-time distance
learning program" means a public school instructional program
in which students receive virtual instruction and are not
required to attend school at a school building.

SECTION 14. REPEAL.--Section 22-30-8 NMSA 1978 (being
Laws 2007, Chapter 292, Section 7 and Laws 2007, Chapter 293,
Section 7) is repealed.

SECTION 15. EFFECTIVE DATE.--The effective date of the
provisions of Sections 1 through 12 and 14 of this act is July
1, 2026.

SECTION 16. EMERGENCY.--It is necessary for the public
peace, health and safety that this act take effect immediately.

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