HOUSE BILL 450
57th legislature - STATE OF NEW MEXICO - first session, 2025
INTRODUCED BY
Derrick J. Lente
AN ACT
RELATING TO CAPITAL EXPENDITURES; AUTHORIZING THE ISSUANCE OF SEVERANCE TAX BONDS; MAKING APPROPRIATIONS FROM THE GENERAL FUND AND OTHER STATE FUNDS; ESTABLISHING CONDITIONS FOR THE ISSUANCE OF SEVERANCE TAX BONDS AND THE EXPENDITURE OF SEVERANCE TAX BOND PROCEEDS; REQUIRING CERTIFICATIONS TO THE DEPARTMENT OF FINANCE AND ADMINISTRATION; ESTABLISHING CONDITIONS FOR THE REVERSION OF UNEXPENDED BALANCES; MAKING APPROPRIATIONS; DECLARING AN EMERGENCY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. SEVERANCE TAX BONDS--AUTHORIZATIONS--
APPROPRIATION OF PROCEEDS.--
A. The state board of finance may issue and sell severance tax bonds in compliance with the Severance Tax Bonding Act in an amount not to exceed the total of the amounts authorized for purposes specified in this act. The state board of finance shall schedule the issuance and sale of the bonds in
the most expeditious and economical manner possible upon a finding by the board that the project has been developed sufficiently to justify the issuance and that the project can proceed to contract within a reasonable time. The state board of finance shall further take the appropriate steps necessary to comply with the federal Internal Revenue Code of 1986, as amended. Proceeds from the sale of the bonds are appropriated for the purposes specified in this act.
B. The agencies named in this act shall certify to the state board of finance when the money from the proceeds of the severance tax bonds appropriated in this section is needed for the purposes specified in the applicable section of this act. If an agency has not certified the need for severance tax bond proceeds for a particular project by the end of fiscal year 2027, the authorization for that project is void.
C. Before an agency may certify for the need of severance tax bond proceeds, the project must be developed sufficiently so that the agency reasonably expects to:
(1) incur within six months after the applicable bond proceeds are available for the project a substantial binding obligation to a third party to expend at least five percent of the bond proceeds for the project; and (2) spend at least eighty-five percent of the bond proceeds within three years after the applicable bond proceeds are available for the project.
D. Except as otherwise specifically provided by law:
(1) the unexpended balance from the proceeds
of severance tax bonds appropriated in this act for a project shall revert to the severance tax bonding fund no later than the following dates:
(a) for a project for which severance tax bond proceeds were appropriated to match federal grants, six months after completion of the project;
(b) for a project for which severance tax bond proceeds were appropriated to purchase vehicles, including emergency vehicles and other vehicles that require special equipment; heavy equipment; books; educational technology; or other equipment or furniture that is not related to a more inclusive construction or renovation project, at the end of the fiscal year two years following the fiscal year in which the severance tax bond proceeds were made available for the purchase; and
(c) for any other project for which severance tax bonds were appropriated, within six months of completion of the project, but no later than the end of fiscal
year 2029; and
(2) all remaining balances from the proceeds of severance tax bonds appropriated for a project in this act shall revert to the severance tax bonding fund three months after the latest reversion date specified for that type of project in Paragraph (1) of this subsection.
E. Except for appropriations to the capital program fund, money from severance tax bond proceeds provided pursuant to this act shall not be used to pay indirect project costs. F. Except for a project that was originally funded using a tax-exempt loan or bond issue, a project involving
repayment of debt previously incurred shall be funded through the issuance of taxable severance tax bonds with a term that does not extend beyond the fiscal year in which they are issued.
G. Money that is appropriated from the proceeds of severance tax bonds pursuant to this act shall not be subject to a binding written agreement with a third party prior to the authorized state agency's approval to enter into that agreement.
H. For the purposes of this section, "unexpended balance" means the remainder of an appropriation after reserving for unpaid costs and expenses subject to a binding written agreement with a third party.
SECTION 2. GENERAL FUND APPROPRIATIONS--LIMITATIONS-- REVERSIONS.--
A. Except as otherwise specifically provided by law, the unexpended balance of an appropriation made in this act from the general fund shall revert:
(1) no later than September 30 following:
(a) the end of fiscal year 2027 for a project for which an appropriation was made to purchase vehicles, including emergency vehicles and other vehicles that require special equipment; heavy equipment; books; educational technology; or other equipment or furniture that is not related to a more inclusive construction or renovation project; or
(b) the end of fiscal year 2029 for a project for which an appropriation was made related to an inclusive construction or renovation project; or
(2) within six months of completion of the project for any other project for which an appropriation was made, but no later than the end of fiscal year 2029.
B. The agencies named in this act shall certify to the department of finance and administration that the money appropriated in this act is needed for the purposes specified in the applicable section of this act. If an agency has not certified the need for the appropriation for a particular project by the end of fiscal year 2027, the authorization for that project is void.
C. Money that is appropriated from the general fund pursuant to this act shall not be subject to a binding written agreement with a third party prior to the authorized state agency's approval to enter into that agreement.
D. For the purposes of this section, "unexpended balance" means the remainder of an appropriation after reserving for unpaid costs and expenses subject to a binding written agreement with a third party.
SECTION 3. FUND APPROPRIATIONS OTHER THAN GENERAL FUND-- LIMITATIONS--REVERSIONS.--
A. Except as otherwise specifically provided by law:
(1) the unexpended balance of an appropriation made in this act from a fund other than the general fund shall revert no later than the following dates:
(a) for a project for which an appropriation was made to match federal grants, six months after completion of the project;
(b) for a project for which an appropriation was made to purchase vehicles, including emergency vehicles and other vehicles that require special equipment; heavy equipment; books; educational technology; or other equipment or furniture that is not related to a more inclusive construction or renovation project, at the end of the fiscal year two years following the fiscal year in which the appropriation was made for the purchase; and
(c) for any other project for which an appropriation was made, within six months of completion of the project, but no later than the end of fiscal year 2029; and
(2) all remaining balances from an appropriation made in this act for a project shall revert three months after the latest reversion date specified for that type of project in Paragraph (1) of this subsection.
B. Except for appropriations to the capital program fund, money from appropriations made in this act shall not be used to pay indirect project costs.
C. Money that is appropriated from a fund other than the general fund pursuant to this act shall not be subject to a binding written agreement with a third party prior to the authorized state agency's approval to enter into that agreement.
D. For the purposes of this section, "unexpended balance" means the remainder of an appropriation after reserving for unpaid costs and expenses subject to a binding written agreement with a third party.
SECTION 4. UNIVERSITY OF NEW MEXICO PROJECT--SEVERANCE TAX BONDS.--Pursuant to the provisions of Section 1 of this act, upon certification by the board of regents of the university of New Mexico that the need exists for the issuance of the bonds, twenty-five million dollars ($25,000,000) is appropriated to the board of regents of the university of New Mexico to plan, design, construct, furnish and equip renovations to the health sciences center college of pharmacy at the university of New Mexico in Albuquerque in Bernalillo county.
SECTION 5. BORDER AUTHORITY PROJECT--GENERAL FUND.--One million seven hundred thousand dollars ($1,700,000) is appropriated from the general fund to the border authority for expenditure in fiscal years 2025 through 2029, unless otherwise provided in Section 2 of this act, to plan, design, construct and equip a water storage tank at the Columbus port of entry in Luna county.
SECTION 6. PUBLIC EDUCATION DEPARTMENT PROJECT-- APPROPRIATION FROM THE PUBLIC SCHOOL CAPITAL OUTLAY FUND.--One million five hundred thousand dollars ($1,500,000) is appropriated from the public school capital outlay fund to the public education department for expenditure in fiscal years 2025 through 2029, unless otherwise provided in Section 3 of this act, for infrastructure for fueling and charging stations for alternatively fueled school buses statewide.
SECTION 7. PROJECT SCOPE--EXPENDITURES.--If an appropriation for a project authorized in this act is not sufficient to complete all the purposes specified, the appropriation may be expended for any portion of the purposes specified in the appropriation. Expenditures shall not be made for purposes other than those specified in the appropriation.
SECTION 8. ART IN PUBLIC PLACES.--Pursuant to Section
13-4A-4 NMSA 1978 and where applicable, the appropriations
authorized in this act include one percent for the art in public places fund.
SECTION 9. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.
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