45th legislature - STATE OF NEW MEXICO - first extraordinary session, 2002

RELATING TO THE STATE FISC; TRANSFERRING FUNDS; AUTHORIZING EMERGENCY EXPENDITURES; AUTHORIZING THE ISSUANCE OF SEVERANCE TAX BONDS; MAKING APPROPRIATIONS; DECLARING AN EMERGENCY.

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

Section 1. WATER AND WASTEWATER PROJECTS--TRANSFERRING MONEY FROM THE WATER AND WASTEWATER PROJECT GRANT FUND TO THE GENERAL FUND--AUTHORIZING EXPENDITURES FOR EMERGENCY PROJECTS.--

A. Twelve million dollars ($12,000,000) is transferred from the water and wastewater project grant fund to the general fund.

B. The New Mexico finance authority is authorized to expend three million dollars ($3,000,000) of the appropriation to the water and wastewater project grant fund that was provided in Laws 2002, Chapter 110, Section 48 for emergency public projects as provided in Subsection E of Section 6-21-6.3 NMSA 1978.

Section 2. WATER PROJECTS--APPROPRIATION.--Ten million dollars ($10,000,000) is appropriated from the general fund to the water project fund for expenditure in fiscal year 2004 and subsequent fiscal years to carry out the provisions of the Water Project Finance Act. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund.

Section 3. SEVERANCE TAX BONDS--AUTHORIZATIONS--APPROPRIATION OF PROCEEDS--LIMITATION.--

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 section. 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 Internal Revenue Code of 1986, as amended. Proceeds from the sale of the bonds are appropriated for the purposes specified in this section.

B. The department of public safety shall certify to the state board of finance when the money from the proceeds of the severance tax bonds is needed. If the department has not certified the need for the issuance of the bonds for a particular project by the end of fiscal year 2004, the authorization for that project is void.

C. Before the department of public safety may certify for the issuance of severance tax bonds, the project must be developed sufficiently so that the department reasonably expects to incur within six months after the bonds have been issued a substantial binding obligation to a third party to expend the appropriation.

D. The unexpended balance from the proceeds of severance tax bonds issued for a project specified in this section shall revert to the severance tax bonding fund at the end of the fiscal year following the fiscal year in which the severance tax bonds were issued for the purchase after reserving for unpaid costs and expenses covered by binding written obligations to third parties. Money from severance tax bond proceeds provided pursuant to this section shall not be used to pay indirect project costs. For the purpose of this subsection, "unexpended balance" means the remainder of an appropriation after costs and expenses recognized in accordance with generally accepted accounting principles have been paid.

E. Upon certification by the department of public safety that the need exists for the issuance of severance tax bonds, two million six hundred thousand dollars ($2,600,000) is appropriated to the department of public safety to purchase and install state police radios.

F. Upon certification by the department of public safety that the need exists for the issuance of severance tax bonds, one million dollars ($1,000,000) is appropriated to the department of public safety to purchase and equip state police motor vehicles.

Section 4. REPEAL.--Laws 2002, Chapter 110, Sections 47 and 48 are repealed.

Section 5. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.