SENATE EDUCATION COMMITTEE SUBSTITUTE FOR

SENATE BILL 453

49th legislature - STATE OF NEW MEXICO - first session, 2009

AN ACT

RELATING TO SEVERANCE TAX BONDS; AUTHORIZING THE ISSUANCE OF

SEVERANCE TAX BONDS TO BE USED TO BUILD OR RENOVATE AND EQUIP SCIENCE LABORATORIES AT NEW MEXICO PUBLIC HIGH SCHOOLS; MAKING AN APPROPRIATION.

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 pursuant to the Severance Tax Bonding Act in an amount not to exceed one hundred thirty million dollars ($130,000,000) for expenditure by the public school capital outlay council in fiscal years 2010 through 2014 to make grants for projects to build or renovate and equip public high school science laboratories throughout the state pursuant to Subsections E through H of 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 projects have been developed sufficiently to justify the issuance and that the projects 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 to the public school capital outlay council for the purposes specified in this section.

          B. The public school capital outlay council 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 this section. If the council has not certified the need for the issuance of the bonds for a particular project, including a project that has been reauthorized, by the end of fiscal year 2011, the authorization for that project is void.

          C. Except as otherwise specifically provided by law, the unexpended balance from the proceeds of severance tax bonds issued pursuant to this section for a project shall revert to the severance tax bonding fund within six months of completion of the project, but no later than the end of fiscal year 2014.

          D. Money from severance tax bond proceeds provided pursuant to this section shall not be used to pay indirect project costs.

          E. Notwithstanding the provisions of Section 22-24-5 NMSA 1978, the expenditure of the appropriation made in this section shall not be subject to a standards-based process, but the public school capital outlay council shall develop a process and methodology to evaluate and prioritize applications made by public high schools for a grant award for a high school science laboratory pursuant to this section.

          F. A school district desiring a grant award for a high school science laboratory pursuant to this section shall submit an application to the public school capital outlay council. The application shall include an assessment of the existing science laboratory and equipment at the high school and the need for new or renovated laboratory facilities or equipment.

          G. The public school facilities authority shall verify the assessment made by the school district and rank the application with similar applications pursuant to the methodology adopted by the public school capital outlay council.

          H. After a public hearing and to the extent that money is available in the fund for the purposes of this section, the public school capital outlay council shall approve grants for projects on the established priority basis.

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