44th legislature - STATE OF NEW MEXICO - second session, 2000

RELATING TO PUBLIC FINANCING; AUTHORIZING THE ISSUANCE OF NEW MEXICO FINANCE AUTHORITY REVENUE BONDS FOR ATHLETIC FACILITIES; CREATING A FUND; PROVIDING FOR DISTRIBUTION OF CERTAIN GOVERNMENTAL GROSS RECEIPTS TAXES; MAKING APPROPRIATIONS.

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

Section 1. Section 6-21-1 NMSA 1978 (being Laws 1992, Chapter 61, Section 1) is amended to read:

"6-21-1. SHORT TITLE.--[Sections 1 through 29 of this act] Chapter 6, Article 21 NMSA 1978 may be cited as the "New Mexico Finance Authority Act"."

Section 2. A new section of the New Mexico Finance Authority Act is enacted to read:

"[NEW MATERIAL] ATHLETIC FACILITIES FINANCING FUND--CREATED.--

A. The "athletic facilities financing fund" is created within the authority. The fund shall be administered by the authority as a separate account, and the authority may create such accounts as the authority deems necessary to carry out the purposes of the fund. The authority is authorized to administer the fund in accordance with the New Mexico Finance Authority Act.

B. The athletic facilities financing fund shall consist of money appropriated, distributed or otherwise allocated to the fund for the purpose of financing athletic facilities.

C. Money appropriated to pay administrative costs and money available for administrative costs from other sources shall not be deposited in the athletic facilities financing fund and shall be deposited in a separate account of the authority and may be used by the authority to meet administrative costs of the authority. The authority is authorized to deduct administrative costs annually from the fund prior to making the transfer required by Subsection G of this section.

D. The money in the athletic facilities financing fund shall be pledged irrevocably for the payment of the principal, interest and other expenses or obligations related to bonds payable from the athletic facilities financing fund.

E. Money in the athletic facilities financing fund not needed for immediate disbursement, including any money held in reserve, may be deposited with the state treasurer for short-term investment pursuant to Section 6-10-10.1 NMSA 1978 or may be invested in direct and general obligations of or obligations fully and unconditionally guaranteed by the United States, obligations issued by agencies of the United States, obligations of this state or any political subdivision of the state, interest-bearing time deposits, commercial paper issued by corporations organized and operating in the United States and rated "prime" quality by a national rating service or as otherwise provided by the trust indenture or bond resolution, if money in the fund is pledged for or to secure payment of bonds issued by the authority.

F. The authority shall establish fiscal controls and accounting procedures that are sufficient to ensure proper accounting for fund payments, disbursements and balances.

G. At the end of any fiscal year, after all debt service charges, replenishment of reserves and administrative costs on all outstanding revenue bonds, notes or other obligations payable from the athletic facilities financing fund are satisfied, the balance remaining in the athletic facilities financing fund shall be transferred by the authority to the energy, minerals and natural resources department. Forty percent of the amount transferred is appropriated to the energy, minerals and natural resources department to implement the provisions of the New Mexico Youth Conservation Corps Act, and sixty percent of the amount transferred is appropriated to the energy, minerals and natural resources department for state park and recreation area capital improvements, including the costs of planning, engineering, design, construction, renovation, repair, equipment and furnishings."

Section 3. Section 6-21-6.1 NMSA 1978 (being Laws 1994, Chapter 145, Section 2, as amended) is amended to read:

"6-21-6.1. PUBLIC PROJECT REVOLVING FUND--APPROPRIATIONS TO OTHER FUNDS.--

A. The authority and the department of environment may enter into a joint powers agreement pursuant to the Joint Powers Agreements Act for the purpose of describing and allocating duties and responsibilities with respect to creation of an integrated loan and grant program to be financed through issuance of bonds payable from the public project revolving fund. The bonds may be issued in installments or at one time by the authority in amounts authorized by law. The aggregate amount of bonds authorized and outstanding pursuant to this subsection shall not be greater than the amount of bonds that may be annually repaid from an amount not to exceed thirty-five percent of the governmental gross receipts tax proceeds distributed to the public project revolving fund in the preceding fiscal year. The net proceeds may be used for purposes of the water and wastewater project grant fund as specified in the New Mexico Finance Authority Act or for purposes of the Wastewater Facility Construction Loan Act, the Rural Infrastructure Act, the Solid Waste Act or the Drinking Water State Revolving Loan Fund Act.

B. Public projects funded pursuant to the Wastewater Facility Construction Loan Act, the Rural Infrastructure Act, the Solid Waste Act or the Drinking Water State Revolving Loan Fund Act shall not require specific authorization by law as required in Sections 6-21-6 and

6-21-8 NMSA 1978.

C. At the end of each fiscal year, after all debt service charges, replenishment of reserves and administrative costs on all outstanding bonds, notes or other obligations payable from the public project revolving fund are satisfied, an aggregate amount not to exceed thirty-five percent of the governmental gross receipts tax proceeds distributed pursuant to Subsection A of Section 7-1-6.38 NMSA 1978 to the public project revolving fund in the preceding fiscal year less all debt service charges and administrative costs of the authority paid in the preceding fiscal year on bonds issued pursuant to this section may be appropriated by the legislature from the public project revolving fund to the following funds for local infrastructure financing:

(1) the wastewater facility construction loan fund for purposes of the Wastewater Facility Construction Loan Act;

(2) the rural infrastructure revolving loan fund for purposes of the Rural Infrastructure Act;

(3) the solid waste facility grant fund for purposes of the Solid Waste Act;

(4) the drinking water state revolving loan fund for purposes of the Drinking Water State Revolving Loan Fund Act; or

(5) the water and wastewater project grant fund for purposes specified in the New Mexico Finance Authority Act.

D. The authority and the department of environment in coordination with the New Mexico finance authority oversight committee may recommend annually to each regular session of the legislature amounts to be appropriated to the funds listed in Subsection C of this section for local infrastructure financing."

Section 4. Section 7-1-6.38 NMSA 1978 (being Laws 1994, Chapter 145, Section 1, as amended) is amended to read:

"7-1-6.38. DISTRIBUTION--GOVERNMENTAL GROSS RECEIPTS TAX.--

A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the public project revolving fund administered by the New Mexico finance authority in an amount equal to seventy-five percent of the net receipts attributable to the governmental gross receipts tax.

B. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the [energy, minerals and natural resources department] public project revolving fund administered by the New Mexico finance authority in an amount equal to twenty-five percent of the net receipts attributable to the governmental gross receipts tax. [Forty percent of the distribution is appropriated to the energy, minerals and natural resources department to implement the provisions of the New Mexico Youth Conservation Corps Act, and sixty percent of the distribution is appropriated to the energy, minerals and natural resources department for state park and recreation area capital improvements, including the costs of planning, engineering, design, construction, renovation, repair, equipment and furnishings.] After reservation of money sufficient to pay the debt service on bonds payable from the governmental gross receipts tax issued by the state parks division of the energy, minerals and natural resources department prior to January 1, 2000, the New Mexico finance authority shall transfer the balance from the distribution in this subsection monthly to the athletic facilities financing fund administered by the authority.

C. The state pledges to and agrees with the holders of any bonds or notes issued by the New Mexico finance authority [or by the energy, minerals and natural resources department] and payable from the net receipts attributable to the governmental gross receipts tax distributed to the New Mexico finance authority [or the energy, minerals and natural resources department] pursuant to this section that the state will not limit, reduce or alter the distribution of the net receipts attributable to the governmental gross receipts tax to the New Mexico finance authority [or the energy, minerals and natural resources department], limit, reduce, alter or exempt any of the receipts or activities of governmental entities subject to the governmental gross receipts tax or limit, reduce or alter the rate of imposition of the governmental gross receipts tax until the bonds or notes together with the interest thereon are fully met and discharged or provision has been made for the full payment and discharge. The New Mexico finance authority [and the energy, minerals and natural resources department are] is authorized to include this pledge and agreement of the state in any agreement with the holders of the bonds or notes."

Section 5. NEW MEXICO FINANCE AUTHORITY--REVENUE BONDS--PURPOSE--APPROPRIATION OF PROCEEDS.--

A. The New Mexico finance authority may issue and sell revenue bonds, payable solely from the athletic facilities financing fund, in compliance with the provisions of the New Mexico Finance Authority Act in installments or at one time in an amount not to exceed eighteen million dollars ($18,000,000) for the purpose of financing the design, construction, renovation, expansion, improvement, completion and equipping of athletic facilities.

B. The proceeds from the bonds are appropriated as follows:

(1) seven million five hundred thousand dollars ($7,500,000) to the board of regents of the university of New Mexico in Albuquerque to renovate and expand the university stadium;

(2) seven million five hundred thousand dollars ($7,500,000) to the board of regents of New Mexico state university in Las Cruces to improve and renovate athletic facilities;

(3) one million dollars ($1,000,000) to the board of regents of western New Mexico university in Silver City to complete the football stadium;

(4) one million dollars ($1,000,000) to the board of regents of New Mexico highlands university in Las Vegas to improve athletic facilities; and

(5) one million dollars ($1,000,000) to the board of regents of eastern New Mexico university in Portales to improve athletic facilities.

C. The costs of issuance of the bonds shall be paid from the athletic facilities financing fund.

D. Upon payment of all principal, interest and other expenses or obligations related to the bonds, the New Mexico finance authority shall certify to the taxation and revenue department that all obligations for the bonds issued pursuant to this section have been fully discharged and direct the taxation and revenue department to cease distributing twenty-five percent of the net receipts attributable to the governmental gross receipts tax to the authority and to commence distributing that amount to the energy, minerals and natural resources department. Forty percent of the distribution is appropriated to the energy, minerals and natural resources department to implement the provisions of the New Mexico Youth Conservation Corps Act, and sixty percent of the distribution is appropriated to the energy, minerals and natural resources department for state park and recreation area capital improvements, including the costs of planning, engineering, design, construction, renovation, repair, equipment and furnishings.

E. Any law imposing governmental gross receipts taxes, authorizing the collection of governmental gross receipts taxes or directing deposits into the athletic facilities financing fund shall not be amended, repealed or otherwise directly or indirectly modified so as to impair outstanding revenue bonds that may be secured by a pledge of money in the athletic facilities financing fund, unless the revenue bonds have been discharged in full or provisions have been made for a full discharge.

F. The New Mexico finance authority may additionally secure the revenue bonds issued pursuant to this section by a pledge of money in the public project revolving fund with a lien priority on the money in the public project revolving fund as determined by the authority.

Section 6. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2000.