SENATE BILL 189

52nd legislature - STATE OF NEW MEXICO - second session, 2016

INTRODUCED BY

Pete Campos

AN ACT

RELATING TO PUBLIC FINANCE; AUTHORIZING THE ISSUANCE OF REVENUE BONDS SECURED BY A PLEDGE OF CIGARETTE TAX DISTRIBUTIONS OR PUBLIC PROJECT REVOLVING FUND MONEY FOR DEPARTMENT OF HEALTH FACILITIES; MAKING AN APPROPRIATION.

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

     SECTION 1. Section 6-21-6.10 NMSA 1978 (being Laws 2005, Chapter 58, Section 1) is amended to read:

     "6-21-6.10. NEW MEXICO FINANCE AUTHORITY REVENUE BONDS--PURPOSE--APPROPRIATION.--

          A. The [New Mexico finance] authority may issue and sell revenue bonds in compliance with the New Mexico Finance Authority Act in an amount not exceeding two million five hundred thousand dollars ($2,500,000) for the behavioral health capital fund to make loans to eligible entities for capital projects pursuant to the Behavioral Health Capital Funding Act.

          B. The net proceeds from the sale of the bonds are appropriated to the behavioral health capital fund for the purposes described in Subsection A of this section.

          C. The cigarette tax proceeds distributed to the [New Mexico finance] authority pursuant to Subsection D of Section 7-1-6.11 NMSA 1978:

                (1) are appropriated to the authority to be pledged irrevocably for the payment of the principal, interest, premiums and related expenses on the bonds and for payment of the expenses incurred by the authority related to the issuance, sale and administration of the bonds; and

          [D. the cigarette tax proceeds appropriated and distributed to the authority pursuant to Subsection D of Section 7-1-6.11 NMSA 1978]

                (2) shall be deposited in a separate fund or account of the authority; provided that money in the separate fund or account in excess of the amount necessary for payment of principal and interest on the bonds and necessary reserves or sinking funds may be transferred to any other account of the authority and used for purposes of the New Mexico Finance Authority Act.

          D. The authority may issue and sell revenue bonds in compliance with the New Mexico Finance Authority Act in an amount not to exceed five million dollars ($5,000,000) for acquiring land for and planning, designing, constructing and equipping department of health facilities or improvements to those facilities, upon certification from the secretary of health that such projects are needed. The costs associated with issuing the bonds shall be paid from the net proceeds from the sale of the bonds, and the remainder is appropriated to the facilities management division of the general services department for the projects certified pursuant to this subsection.

          E. The cigarette tax proceeds distributed to the authority pursuant to Subsection F of Section 7-1-6.11 NMSA 1978:

                (1) are appropriated to the authority to be pledged irrevocably for the payment of the principal, interest, premiums and related expenses of the bonds and for payment of the expenses incurred by the authority related to the issuance, sale and administration of the bonds; and

                (2) shall be deposited in a separate fund or account of the authority.

          [E.] F. Any law authorizing the imposition, collection or distribution of the cigarette tax or that affects the cigarette tax shall not be amended, repealed or otherwise directly or indirectly modified so as to impair or reduce debt service coverage for any outstanding revenue bonds that may be secured by a pledge of those cigarette tax revenues, unless the revenue bonds have been discharged in full or provisions have been made for a full discharge.

          G. The authority may 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."

- 4 -