HOUSE BILL 43

48th legislature - STATE OF NEW MEXICO - second session, 2008

INTRODUCED BY

Roberto "Bobby" J. Gonzales

 

 

 

 

 

AN ACT

RELATING TO CAPITAL EXPENDITURES; AUTHORIZING THE ISSUANCE OF SEVERANCE TAX BONDS; AUTHORIZING EXPENDITURES FROM CERTAIN FUNDS AND BALANCES; CLARIFYING CONDITIONS FOR THE ISSUANCE OF BONDS; ESTABLISHING CONDITIONS FOR THE EXPENDITURE OF SEVERANCE TAX BOND PROCEEDS; 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 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 authorized 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 the issuance of the bonds for a particular project, including projects that have been reauthorized, by the end of fiscal year 2010, the authorization for that project is void.

          C. Before an agency may certify for the issuance of severance tax bonds, the project must be developed sufficiently so that the agency reasonably expects to:

                (1) incur within six months after the applicable bonds have been issued 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 bonds have been issued.

          D. Except as otherwise provided in this section or another section of this act, the unexpended balance from the proceeds of severance tax bonds issued for a project, including projects that have been reauthorized, shall revert to the severance tax bonding fund as follows:

                (1) for projects for which severance tax bonds were issued to match federal grants, six months after completion of the project;

                (2) for projects for which severance tax bonds were issued to purchase vehicles, heavy equipment, 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 bonds were issued for the purchase;

                (3) for projects for which severance tax bonds were issued to purchase emergency vehicles or other vehicles that require special equipment, at the end of the fiscal year two years following the fiscal year in which the severance tax bonds were issued for the purchase; and

                (4) for all other projects for which severance tax bonds were issued, within six months of completion of the project, but no later than the end of fiscal year 2012.

          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. For the purpose of this section, "unexpended balance" means the remainder of an appropriation after reserving for unpaid costs and expenses covered by binding written obligations to third parties.

     Section 2. GENERAL FUND AND OTHER FUND APPROPRIATIONS--LIMITATIONS--REVERSIONS.--

          A. Except as otherwise provided in this section or another section of this act, the unexpended balance of an appropriation made in this act from the general fund or other state fund, including changes to prior appropriations, shall revert to the originating fund as follows:

                (1) for projects for which appropriations were made to match federal grants, six months after completion of the project;

                (2) for projects for which appropriations were made to purchase vehicles, heavy equipment, educational technology or 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;

                (3) for projects for which appropriations were made to purchase emergency vehicles or other vehicles that require special equipment, at the end of the fiscal year two years following the fiscal year in which the appropriation was made for the purchase; and

                (4) for all other projects for which appropriations were made, within six months of completion of the project, but no later than the end of fiscal year 2012.

          B. Upon certification by an agency that money from the general fund is needed for a purpose specified in this act, the secretary of finance and administration shall disburse such amount of the appropriation for that project as is necessary to meet that need.

          C. Except for appropriations to the capital program fund, money from appropriations made in this act shall not be used to pay indirect project costs.

          D. The unexpended balance of an appropriation made from the general fund or other state fund, including changes to prior appropriations, to the Indian affairs department or the aging and long-term services department for projects located on lands of an Indian nation, tribe or pueblo, including projects that have been reauthorized, shall revert in a time frame set forth in Subsection A of this section to the tribal infrastructure project fund.

          E. For the purpose of this section, "unexpended balance" means the remainder of an appropriation after reserving for unpaid costs and expenses covered by binding written obligations to third parties.

     Section 3. STATE ARMORY BOARD PROJECT--SEVERANCE TAX BONDS.--Pursuant to the provisions of Section 1 of this act, upon certification by the state armory board that the need exists for the issuance of the bonds, one million dollars ($1,000,000) is appropriated to the state armory board to demolish old facilities and make upgrades to existing facilities and staging areas at armories statewide.

     Section 4. CULTURAL AFFAIRS DEPARTMENT PROJECT--SEVERANCE TAX BONDS.--Pursuant to the provisions of Section 1 of this act, upon certification by the cultural affairs department that the need exists for the issuance of the bonds, five million dollars ($5,000,000) is appropriated to the cultural affairs department for renovations and repairs, including life and safety, Americans with Disabilities Act of 1990, security and other upgrades, at state museum and monument facilities statewide.

     Section 5. CAPITAL PROGRAM FUND PROJECTS--SEVERANCE TAX

BONDS.--Pursuant to the provisions of Section 1 of this act,

upon certification by the property control division of the general services department that the need exists for the issuance of the bonds, the following amounts are appropriated to the capital program fund for the following purposes:

          1. four million dollars ($4,000,000) to plan, design and construct kitchen renovations at correctional facilities in Los Lunas in Valencia county, Las Cruces in Dona Ana county and Roswell in Chaves county;

          2. five million dollars ($5,000,000) for security upgrades, equipment and renovation at correctional facilities statewide;

          3. five million dollars ($5,000,000) for repairs, upgrades and equipment at correctional facilities statewide, including roof replacement, wastewater systems, paving, structural renovations and heating, ventilation and air conditioning systems; and

          4. three million dollars ($3,000,000) to plan, design, construct and equip upgrades to department of health facilities to address building deficiencies statewide.

     Section 6. STATE FAIR COMMISSION PROJECT--GENERAL FUND.--Five million five hundred thousand dollars ($5,500,000) is appropriated from the general fund to the state fair commission for expenditure in fiscal years 2008 through 2012, unless otherwise provided in Section 2 of this act, to plan, design and construct a food court and central entertainment zone, including landscaping and a stage for performances, at the New Mexico state fairgrounds in Albuquerque in Bernalillo county.

     Section 7. CUMBRES AND TOLTEC SCENIC RAILROAD COMMISSION PROJECT--GENERAL FUND.--Two million dollars ($2,000,000) is

appropriated from the general fund to the Cumbres and Toltec scenic railroad commission for expenditure in fiscal years 2008 through 2012, unless otherwise provided in Section 2 of this act, to upgrade the track and railbed of the Cumbres and Toltec scenic railroad in Rio Arriba county.

     Section 8. DEPARTMENT OF GAME AND FISH PROJECT--GENERAL FUND.--Two million five hundred thousand dollars ($2,500,000) is appropriated from the general fund to the department of game and fish for expenditure in fiscal years 2008 through 2012, unless otherwise provided in Section 2 of this act, for renovation of Lake Roberts dam and spillway in Silver City in Grant county.

     Section 9. MINERS' COLFAX MEDICAL CENTER PROJECT--MINERS' TRUST FUND.--Six hundred thousand dollars ($600,000) is appropriated from the miners' trust fund to the miners' Colfax medical center for expenditure in fiscal years 2008 through 2012, unless otherwise provided in Section 2 of this act, to make capital improvements, including stuccoing and paving parking lots, and to purchase and install equipment, including a bone density scanner and anesthesia machine, at the miners' Colfax medical center in Raton in Colfax county.

     Section 10. 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 11. 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 12. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.

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