45th legislature - STATE OF NEW MEXICO - first session, 2001

RELATING TO CAPITAL EXPENDITURES; AUTHORIZING THE ISSUANCE OF SEVERANCE TAX BONDS; REAUTHORIZING BALANCES; CHANGING THE PURPOSE AND EXTENDING THE EXPENDITURE PERIOD OF A SEVERANCE TAX BOND APPROPRIATION; CLARIFYING CONDITIONS FOR THE ISSUANCE OF BONDS; ESTABLISHING CONDITIONS FOR THE EXPENDITURE OF SEVERANCE TAX BOND PROCEEDS; REVERTING CERTAIN UNEXPENDED BALANCES OF PRIOR SEVERANCE TAX AND GENERAL FUND AND OTHER APPROPRIATIONS; 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 2003, 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 are not related to a more inclusive construction or renovation project, at the end of the fiscal year following the fiscal year in which the severance tax bonds were issued for the purchase; and

(3) 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 2006.

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 costs and expenses recognized in accordance with generally accepted accounting principles have been paid.

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 are not related to a more inclusive construction or renovation project, at the end of the fiscal year following the fiscal year in which the appropriation was made for the purchase; and

(3) 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 2006.

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

C. For the purpose of this section, "unexpended balance" means the remainder of an appropriation after costs and expenses recognized in accordance with generally accepted accounting principles have been paid.

Section 3. REVERSION ON PRIOR-YEAR PROJECTS--ALL FUNDING SOURCES--LIMITATIONS ON PRIOR-YEAR EXPENDITURES FOR CERTAIN COSTS.--

A. All unexpended balances of severance tax bond proceeds from capital outlay projects authorized by the legislature prior to 1995 shall revert to the severance tax bonding fund by October 31, 2001, unless the certifying agency can demonstrate to the state board of finance that:

(1) the project is active and there are valid encumbrances on the appropriation; or

(2) the legislature reauthorized the project after July 1, 1995 or extended its life beyond July 1, 2001 and the project is active.

B. All unexpended balances of general obligation bond proceeds from capital outlay projects authorized by the legislature prior to 1995 shall revert to the debt service fund established by the state treasurer for the purpose of paying the principal and interest on the state's general obligation bonds on October 31, 2001, unless the certifying agency can demonstrate to the state board of finance that the project is active and there are valid encumbrances on the appropriation.

C. All unexpended balances remaining from appropriations for capital outlay projects prior to 1995 from the general fund or other state funds shall revert to the originating fund by October 31, 2001, unless the agency to whom the money was appropriated can demonstrate to the financial control division of the department of finance and administration that:

(1) the project is active and there are valid encumbrances on the appropriation; or

(2) the legislature reappropriated the money for the project after July 1, 1995 or extended the project's life beyond July 1, 2001 and the project is active.

Section 4. CULTURAL AFFAIRS PROJECT--OFFICE OF CULTURAL AFFAIRS--SEVERANCE TAX BONDS.--Pursuant to the provisions of Section 1 of this act, upon certification by the office of cultural affairs that the need exists for the issuance of the bonds, nine million dollars ($9,000,000) is appropriated to the office of cultural affairs to plan, design, construct, equip and furnish the palace of the governors annex project in Santa Fe in Santa Fe county.

Section 5. NEW MEXICO MILITARY INSTITUTE PROJECT--SEVERANCE TAX BONDS.--Pursuant to the provisions of Section 1 of this act, upon certification by the board of regents of New Mexico military institute that the need exists for the issuance of the bonds, one million eight hundred thousand dollars ($1,800,000) is appropriated to the board of regents of New Mexico military institute to plan, design and construct improvements, including necessary replacement and expansions of aging centralized systems at Lea Hall at New Mexico military institute in Roswell in Chaves county.

Section 6. UNIVERSITY OF NEW MEXICO PROJECTS--SEVERANCE TAX BONDS.--Pursuant to the provisions of Section 1 of this act, upon certification by the board of regents of the university of New Mexico that the need exists for the issuance of the bonds, the following amounts are appropriated to the board of regents of the university of New Mexico for the following purposes at the university of New Mexico in Albuquerque in Bernalillo county:

A. one hundred thousand dollars ($100,000) for equipment and educational technology at the college of fine arts; and

B. one million five hundred ten thousand dollars ($1,510,000) for phase 2 construction and installation of equipment at the manufacturing training and technology center cleanroom facility.

Section 7. PUBLIC SCHOOLS PROJECTS--CRITICAL CAPITAL OUTLAY--GENERAL FUND.--Five million dollars ($5,000,000) is appropriated from the general fund to the public school capital outlay fund for expenditure in fiscal year 2002 to carry out the provisions of the Public School Capital Outlay Act. Any unexpended or unencumbered balance remaining at the end of fiscal year 2002 shall not revert.

Section 8. CLYDE TOMBAUGH SPACE CENTER RE-ROOFING--SEVERANCE TAX BOND APPROPRIATION--CHANGE PURPOSE FOR IMPROVEMENTS AT THE SPACE CENTER--EXTENDING THE EXPENDITURE PERIOD.--The proceeds from the sale of severance tax bonds appropriated to the office of cultural affairs pursuant to Subsection C of Section 4 of Chapter 7 of Laws 1998 for re-roofing the Clyde Tombaugh space theater and planetarium at the space center in Alamogordo in Otero county shall not be expended for the original purpose but are reauthorized and appropriated for improvements to the facility, equipment or exhibits of the space center. The period of time in which the appropriation may be expended is extended through fiscal year 2006.

Section 9. 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 10. 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 11. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.