HOUSE RULES AND ORDER OF BUSINESS COMMITTEE SUBSTITUTE FOR

HOUSE BILL 319

53rd legislature - STATE OF NEW MEXICO - second session, 2018

 

 

 

 

 

 

 

AN ACT

RELATING TO THE PUBLIC PEACE, HEALTH, SAFETY AND WELFARE; PROVIDING FOR REMEDIATION OF THE CARLSBAD BRINE WELL; AMENDING THE POWERS AND DUTIES OF THE CARLSBAD BRINE WELL REMEDIATION AUTHORITY; ADMINISTRATIVELY ATTACHING THAT AUTHORITY TO THE ENERGY, MINERALS AND NATURAL RESOURCES DEPARTMENT; PROVIDING FOR THE ISSUANCE OF BONDS AND ACCEPTANCE OF LOANS; CREATING THE CARLSBAD BRINE WELL BONDING FUND WITHIN THE NEW MEXICO FINANCE AUTHORITY; MAKING A DISTRIBUTION TO THAT FUND FOR A CERTAIN PERIOD AND THEREAFTER TO THE STATE ROAD FUND; MAKING AN APPROPRIATION; DECLARING AN EMERGENCY.

 

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

     SECTION 1. A new section of the New Mexico Finance Authority Act is enacted to read:

     "[NEW MATERIAL] CARLSBAD BRINE WELL BONDING FUND-- CREATED--PURPOSE--CONDITIONS.--

          A. The "Carlsbad brine well bonding fund" is created as a special fund within the authority. The fund shall consist of motor vehicle excise tax revenues distributed to the fund pursuant to Section 7-14-10 NMSA 1978. Earnings of the fund shall be credited to the fund. Balances in the fund at the end of any fiscal year shall remain in the fund, except as provided in this section.

          B. Money in the fund is pledged for the payment of principal and interest on all bonds issued pursuant to Section 6 of this 2018 act. Money in the fund is appropriated to the authority for the purpose of paying debt service, including redemption premiums, if any, on the bonds and the expenses incurred in the issuance, payment and administration of the bonds.

          C. Any balance remaining in the fund shall be transferred to the state road fund upon certification by the authority that:

                (1) the bonds issued pursuant to Section 6 of this 2018 act have been retired, that no additional obligations of the fund exist and that no additional expenditures from the fund are necessary; or

                (2) a court of competent jurisdiction has ruled that the bonds have been retired, that no additional obligations of the fund exist and that no additional expenditures from the fund are necessary.

          D. The fund shall be used only for the purposes specified in this section and is pledged first to pay the debt service on the bonds issued pursuant to Section 6 of this 2018 act. Any law authorizing the distribution of taxes or other revenues to the fund or authorizing expenditures from the fund shall not be amended or repealed or otherwise modified so as to impair the bonds to which the fund is dedicated as provided in this section."

     SECTION 2. Section 7-14-10 NMSA 1978 (being Laws 1988, Chapter 73, Section 20, as amended) is amended to read:

     "7-14-10. DISTRIBUTION OF PROCEEDS.--The receipts from the tax and any associated interest and penalties shall be deposited in the "motor vehicle suspense fund", hereby created in the state treasury. As of the end of each month, the net receipts attributable to the tax and associated penalties and interest shall be distributed as follows:

          A. four and fifteen-hundredths percent to the Carlsbad brine well bonding fund, until such time as the New Mexico finance authority certifies to the department that no further distributions are necessary for payment of principal and interest on all bonds issued pursuant to Section 6 of this 2018 act, and thereafter to the state road fund; and

          B. the remainder to the general fund."

     SECTION 3. Section 75-11-1 NMSA 1978 (being Laws 2017, Chapter 11, Section 1 and Laws 2017, Chapter 118, Section 1) is amended to read:

     "75-11-1. CARLSBAD BRINE WELL REMEDIATION [ADVISORY] AUTHORITY--CREATED--MEMBERSHIP--[ADMINISTRATION OF THE CARLSBAD BRINE WELL REMEDIATION] POWERS AND DUTIES.--

          A. The "Carlsbad brine well remediation [advisory] authority" is created [The authority is a governmental entity of the state] and is administratively attached to the energy, minerals and natural resources department.

          B. The membership of the board of directors of the authority shall consist of the following eight members:

                (1) the [mayor of the city of Carlsbad or the mayor's] secretary of energy, minerals and natural resources or the secretary's designee, who shall serve as chair of the board;

                (2) the chair of the Eddy county board of county commissioners or the chair's designee;

                (3) the [secretary of energy, minerals and natural resources or the secretary's] mayor of the city of Carlsbad or the mayor's designee;

                (4) the secretary of environment or the secretary's designee;

                (5) the secretary of transportation or the secretary's designee;

                (6) the manager of the Carlsbad irrigation .district or the manager's designee;

                (7) the state engineer or the state engineer's designee; and

                (8) the attorney general or the attorney general's designee.

          [B.] C. The [advisory] authority [(1)] shall [recommend policy for and advise the oil conservation division of the energy, minerals and natural resources department on the] set policy and regulate, supervise and administer the remediation of the Carlsbad brine well [located at: Unit Letter M (SW/4 of the SW/4) in Section 17, Township 22 South, Range 27 East, NMPM; Eddy County, New Mexico; and (2) is granted all powers necessary and appropriate to provide advice to the division for a revenue source dedicated to the Carlsbad brine well remediation fund].

          D. The authority may:

                (1) promulgate rules to carry out the provisions of this section;

                (2) make and execute all contracts and other instruments;

                (3) contract with the municipality or county in fulfillment of its duties;

                (4) acquire, maintain or contract for property;

                (5) exercise the power of eminent domain over lands adjacent to the Carlsbad brine well as provided by law for the condemnation of private property for public use with just compensation;

                (6) use the police power to provide for the safety of persons or property;

                (7) borrow money for the remediation of the Carlsbad brine well subject to the approval of the state board of finance; and

                (8) certify to the New Mexico finance authority the need for the issuance of bonds for remediation of the Carlsbad brine well or acquisition of property adjacent to the Carlsbad brine well as is required for its remediation.

          E. The authority shall not incur debt as a general obligation of the state or pledge the full faith and credit of nor the general taxing power of the state or any of its political subdivisions to repay debt.

          F. On or before November 15 of each year, the authority shall report to the radioactive and hazardous materials interim committee and the legislative finance committee on the status of the remediation of the Carlsbad brine well and expenditures from the Carlsbad brine well remediation fund.

          [C.] G. Nothing in this section shall be construed as a waiver or alteration of the immunity from liability granted pursuant to the Tort Claims Act or as a waiver of any other immunity or privilege under law.

          H. For the purposes of this section:

                (1) "authority" means the Carlsbad brine well remediation authority; and

                (2) "Carlsbad brine well" means the brine well located at SW/4 of the SW/4 in Section 17, Township 22 South, Range 27 East, NMPM; Eddy County, New Mexico."

     SECTION 4. Section 75-11-2 NMSA 1978 (being Laws 2017, Chapter 11, Section 2 and Laws 2017, Chapter 118, Section 2) is amended to read:

     "75-11-2. CARLSBAD BRINE WELL REMEDIATION FUND--CREATED-- PURPOSE--CONDITIONS.--

          A. [There is created] The "Carlsbad brine well remediation fund" is created in the state treasury. The [energy, minerals and natural resources department] Carlsbad brine well remediation authority shall administer the fund. The fund shall be used by the [oil conservation division of the energy, minerals and natural resources department] Carlsbad brine well remediation authority to the extent that revenues are available to remediate the Carlsbad brine well or to acquire property adjacent to the Carlsbad brine well as required for its remediation; provided that the Carlsbad brine well remediation authority shall consult with the department of transportation on the expenditure of money from the fund.

          B. Money in the fund may consist of federal grants, appropriations, donations, earnings from investment of the fund, bond or loan proceeds and other revenue that from time to time may accrue to the fund from other sources for remediation of the Carlsbad brine well or for acquisition of property adjacent to the Carlsbad brine well as required for its remediation.

          C. Money in the fund [shall be subject to appropriation by the legislature] is appropriated to the Carlsbad brine well remediation authority and shall not revert at the end of any fiscal year; provided that when the remediation of the Carlsbad brine well is complete, the secretary of energy, minerals and natural resources shall certify the completion to the secretary of finance and administration and, upon the secretary of energy, minerals and natural resources' certification, money in the fund shall transfer to the state road fund.

          D. Money in the fund shall be disbursed on warrants signed by the secretary of finance and administration pursuant to vouchers signed by the secretary of energy, minerals and natural resources or the secretary's authorized representative."

     SECTION 5. Section 75-11-3 NMSA 1978 (being Laws 2017, Chapter 11, Section 3 and Laws 2017, Chapter 118, Section 3) is amended to read:

     "75-11-3. TERMINATION OF AGENCY LIFE--DELAYED REPEAL.-- The Carlsbad brine well remediation [advisory] authority is terminated on July 1, 2029 pursuant to the Sunset Act. The [advisory] authority shall continue to operate according to the provisions of this act until July 1, 2030. Effective July 1, 2030, this act is repealed."

     SECTION 6. A new section of Chapter 75, Article 11 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] NEW MEXICO FINANCE AUTHORITY--AUTHORITY TO ISSUE BONDS.--

          A. The New Mexico finance authority may issue and sell revenue bonds in compliance with the New Mexico Finance Authority Act in installments or at one time in an amount not exceeding fifty million dollars ($50,000,000), for the purpose of remediating the Carlsbad brine well or for acquiring property adjacent to the Carlsbad brine well as required for its remediation.

          B. The New Mexico finance authority may issue and sell revenue bonds authorized by this section when the Carlsbad brine well remediation authority certifies the need for issuance of the bonds and the New Mexico finance authority certifies that there are sufficient revenues pledged to the Carlsbad brine well bonding fund for the repayment of the bonds. The net proceeds from the sale of the bonds are to be held by the New Mexico finance authority to be requisitioned by the Carlsbad brine well remediation authority for the purpose described in Subsection A of this section and consistent with the provisions of Section 75-11-2 NMSA 1978.

          C. The money deposited into the Carlsbad brine well bonding fund within the New Mexico finance authority shall be pledged irrevocably for the payment of the principal, interest and other expenses or obligations related to the bonds.

          D. All revenue bonds issued by the New Mexico finance authority pursuant to this section are obligations of the authority payable solely from the revenues, income and money of the authority deposited into the Carlsbad brine well bonding fund. The revenue bonds shall not create an obligation, debt or liability of the state, and no breach of any pledge, obligation or agreement of the authority shall impose a pecuniary liability or charge upon the general faith and credit nor the general taxing power of the state or any of its political subdivisions.

          E. The New Mexico finance authority may purchase the revenue bonds with the public project revolving fund pursuant to Subsection J of Section 6-21-6 NMSA 1978."

     SECTION 7. A new section of Chapter 75, Article 11 NMSA 1978 is enacted to read: 

     "[NEW MATERIAL] LOANS--ACCEPTANCE UNDER CERTAIN CONDITIONS.--

          A. The Carlsbad brine well remediation authority may accept a no- or low-interest loan for remediation of the Carlsbad brine well under the following conditions:

                (1) the legislature has pledged a statutory revenue source sufficient to repay the loan within a reasonable time;

                (2) the loan shall be payable solely from pledgeable revenue and shall not constitute an indebtedness or general obligation of the state or any of its political subdivisions;

                (3) the pledgeable revenue shall be deposited into a sinking fund used solely to repay the loan, and the state treasurer shall make loan payments from the sinking fund;

                (4) the loan and all loan documents are approved by the state board of finance and the loan documents shall contain a statement that neither the state nor the authority shall be obligated to pay the loan or interest on the loan except from pledgeable revenue; and

                (5) the money shall be spent only on direct costs of remediating the Carlsbad brine well.

          B. The loan shall not create an obligation, debt or liability of the state that imposes a pecuniary liability or charge upon the general faith and credit nor the general taxing power of the state or any of its political subdivisions.

          C. The sinking fund required by Paragraph (3) of Subsection A of this section shall be used only for the purposes specified in this section and is pledged first to pay the debt service on the loans accepted pursuant to this section. Any law authorizing the distribution of taxes or other revenues to the sinking fund or authorizing expenditures from the sinking fund shall not be amended or repealed or otherwise modified so as to impair the repayment of the loans to which the fund is dedicated as provided in this section."

     SECTION 8. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.

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