45th legislature - STATE OF NEW MEXICO - second session, 2002

RELATING TO HIGHER EDUCATION; PROVIDING CERTAIN REQUIREMENTS FOR CAPITAL CONSTRUCTION.

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

Section 1. A new section of Chapter 21 NMSA 1978 is enacted to read:

"[NEW MATERIAL] HIGHER EDUCATION--CAPITAL CONSTRUCTION.--

A. A public post-secondary educational institution, in planning for new construction on a facility acquired by gift or from funds by gift, tax or bond, which results in new square footage for the institution, shall:

(1) identify the source of funding for annual operation and maintenance of the new facility, whether from state general funds, increased local mill levies, increased tuition revenue or other funds;

(2) provide a five-year projection of required funding for annual operation and maintenance; and

(3) maintain a maintenance reserve fund equivalent to seven percent of the total construction cost for the facility to be used for future maintenance and repair of that facility.

B. In approving the new construction, the resolution adopted by the governing board or board of regents shall contain covenants and agreements deemed necessary to protect the bondholders, local taxpayers and the state."