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

RELATING TO PUBLIC SCHOOLS; PROVIDING AN ONGOING AUTHORIZATION FOR SUPPLEMENTAL SEVERANCE TAX BONDS FOR PUBLIC SCHOOL CAPITAL OUTLAY PROJECTS; CREATING THE PUBLIC SCHOOL CAPITAL OUTLAY TASK FORCE; MAKING APPROPRIATIONS; DECLARING AN EMERGENCY.

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

Section 1. Section 7-27-12 NMSA 1978 (being Laws 1961, Chapter 5, Section 10, as amended) is amended to read:

"7-27-12. WHEN SEVERANCE TAX BONDS TO BE ISSUED.--

A. The state board of finance shall issue and sell all severance tax bonds when authorized to do so by any law that sets out the amount of the issue and the recipient of the money.

B. The state board of finance shall also issue and sell severance tax bonds authorized by Sections 72-14-36 through 72-14-42 NMSA 1978, and such authority as has been given to the interstate stream commission to issue and sell such bonds is transferred to the state board of finance. The state board of finance shall issue and sell all severance tax bonds only when so instructed by resolution of the governing body or executive head of the recipient of the bond money.

C. Except as provided in Subsection D of this section, proceeds from supplemental severance tax bonds shall be used only for public school [critical] capital outlay projects pursuant to the Public School Capital Outlay Act [or for infrastructure renovation and expansion at the state's public post-secondary educational institutions and other institutions confirmed as state educational institutions in Article 12, Section 11 of the constitution of New Mexico pursuant to a plan developed and approved by the commission on higher education to fund the highest priority significant needs identified by the commission.

D. The state board of finance shall issue and sell all supplemental severance tax bonds when authorized to do so by any law that sets out the amount of the issue and names the public school capital outlay council or the commission on higher education as the recipient of the money. The state board of finance shall issue and sell supplemental severance tax bonds only when so instructed by resolution of the public school capital outlay council or by resolution of the commission on higher education pursuant to certification by the governing bodies of the appropriate educational institutions].

D. Proceeds from supplemental severance tax bonds issued pursuant to Paragraph (2) of Subsection A of Section 19 of Chapter 6 of Laws 1999 (1st S.S.) shall be used for the purposes specified in that paragraph.

E. Except as provided in Subsection F of this section, the state board of finance shall issue and sell all supplemental severance tax bonds when so instructed by resolution of the public school capital outlay council pursuant to Section 7-27-12.2 NMSA 1978.

F. The state board of finance shall issue and sell supplemental severance tax bonds authorized by Paragraph (2) of Subsection A of Section 19 of Chapter 6 of Laws 1999 (1st S.S.) when so instructed by resolution of the commission on higher education pursuant to certification by the governing bodies of the appropriate educational institutions."

Section 2. A new section of the Severance Tax Bonding Act, Section 7-27-12.2 NMSA 1978, is enacted to read:

"7-27-12.2. [NEW MATERIAL] SUPPLEMENTAL SEVERANCE TAX BONDS--PUBLIC SCHOOL CAPITAL OUTLAY PROJECTS.--

A. The public school capital outlay council is authorized to certify by resolution that proceeds of supplemental severance tax bonds are needed for public school capital outlay projects pursuant to Section 22-24-5 NMSA 1978. The resolution shall specify the total amount needed.

B. The state board of finance may issue and sell supplemental severance tax bonds in compliance with the Severance Tax Bonding Act when the public school capital outlay council certifies by resolution the need for the issuance of the bonds. The amount of the bonds sold at each sale shall not exceed the lesser of the amount certified by the public school capital outlay council or the amount that may be issued pursuant to the restrictions of Section 7-27-14 NMSA 1978.

C. The state board of finance shall schedule the issuance and sale of the bonds in the most expeditious and economical manner possible.

D. The proceeds from the sale of the bonds are appropriated to the public school capital outlay fund for the purpose of making awards of grant assistance pursuant to Section 22-24-5 NMSA 1978."

Section 3. Section 7-27-27 NMSA 1978 (being Laws 1961, Chapter 5, Section 27, as amended) is amended to read:

"7-27-27. PURPOSE AND INTENT.--The purpose of the Severance Tax Bonding Act is to establish the authority who shall issue and sell all severance tax bonds [and supplemental severance tax bonds] for financing specific projects authorized by the legislature and all supplemental severance tax bonds pursuant to Section 7-27-12.2 NMSA 1978 and to guarantee redemption of such bonds by revenue derived from the receipts from taxes levied upon natural resource products severed and saved from the soil and such other money as the legislature may from time to time determine. It is intended that projects to be financed from the fund shall include [but not be limited to] the construction of buildings for state institutions and water resource projects; and it is further intended that the income from water resource projects in excess of the amount required for operation and maintenance of the project shall be used to repay the severance tax bonding fund."

Section 4. Laws 1999 (1st S.S.), Chapter 6, Section 19 is amended to read:

"Section 19. SUPPLEMENTAL SEVERANCE TAX BONDS--PURPOSE FOR WHICH ISSUED--APPROPRIATION OF PROCEEDS.--

A. The state board of finance may issue and sell supplemental severance tax bonds in compliance with the Severance Tax Bonding Act in the following amounts for the following purposes upon the following certification:

(1) an amount not exceeding one hundred million dollars ($100,000,000) when the public school capital outlay council certifies by resolution the need for the issuance of the bonds for public school critical capital outlay projects pursuant to the Public School Capital Outlay Act; and

(2) an amount not exceeding twenty-five million dollars ($25,000,000) when the commission on higher education certifies by resolution the need for the issuance of the bonds for infrastructure renovation and expansion at the state's public post-secondary educational institutions or other educational institutions confirmed in Article 12, Section 11 of the constitution of New Mexico pursuant to a plan developed and approved by the commission on higher education to fund the highest priority significant needs identified by the commission.

[C.] B. 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.

[D.] C. The proceeds from the sale of the bonds pursuant to Paragraph (1) of Subsection A of this section are appropriated to the public school capital outlay fund to carry out the provisions of the Public School Capital Outlay Act. If the public school capital outlay council has not certified the need for the issuance of the bonds by the end of fiscal year [2004] 2001, authorization provided in this section shall expire. Any unexpended or unencumbered balance remaining from the proceeds of bonds issued pursuant to Paragraph (1) of Subsection A of this section at the end of fiscal year 2006 shall revert to the severance tax bonding fund.

[E.] D. The proceeds from the sale of the bonds in Paragraph (2) of Subsection A of this section are appropriated to the commission on higher education for distribution to the governing bodies of the educational institutions who have certified projects for funding with the bond proceeds. If the commission on higher education has not certified the need for the issuance of the bonds by the end of fiscal year 2004, authorization provided in this section shall expire. Any unexpended or unencumbered balance remaining from the proceeds of bonds issued pursuant to Paragraph (2) of Subsection A of this section at the end of fiscal year 2006 shall revert to the severance tax bonding fund."

Section 5. [NEW MATERIAL] PUBLIC SCHOOL CAPITAL OUTLAY TASK FORCE--CREATION--STAFF.--

A. The "public school capital outlay task force" is created. The task force consists of sixteen members as follows:

(1) the nine members of the public school capital outlay council;

(2) two members representing school districts that receive grants from the federal government as assistance to areas affected by federal activity authorized in accordance with Title 20 of the United States Code, appointed by the New Mexico legislative council in consultation with the governor;

(3) the chairmen of the legislative finance committee, the senate education committee and the house education committee or their designees;

(4) one member appointed by the speaker of the house of representatives; and

(5) one member appointed by the president pro tempore of the senate.

Section 6. [NEW MATERIAL] PUBLIC SCHOOL CAPITAL OUTLAY TASK FORCE--DUTIES.--The public school capital outlay task force shall:

A. study and evaluate the progress and effectiveness of programs administered pursuant to the Public School Capital Outlay Act and the Public School Capital Improvements Act;

B. evaluate the existing revenue streams for funding public school capital outlay projects and recommend any changes that may be more cost-effective or appropriate;

C. monitor and assist the public school capital outlay council as it develops rules pursuant to the Public School Capital Outlay Act; and

D. no later than December 1 of each year, report the results of its analyses and its findings and recommendations to the governor and the legislature.

Section 7. APPROPRIATIONS.--

A. Two million three hundred thousand dollars ($2,300,000) is appropriated from the general fund to the state department of public education for expenditure in fiscal years 2001 through 2003 for the purpose of assessing the needs of local school districts for public school capital outlay projects and projecting the costs of the projects. Any unexpended or unencumbered balance remaining at the end of fiscal year 2003 shall revert to the general fund.

B. Sixty-six million three hundred thirty thousand dollars ($66,330,000) is appropriated from the general fund to the public school capital outlay fund for expenditure in fiscal years 2001 through 2004 for providing grant assistance for projects pursuant to the Public School Capital Outlay Act. Any unexpended or unencumbered balance remaining at the end of fiscal year 2004 shall revert to the general fund.

C. Thirty-three million six hundred seventy thousand dollars ($33,670,000) is appropriated from the general fund to the state department of public education for expenditure in fiscal years 2001 through 2004 for the purpose of completing the public school capital outlay projects specified in this subsection. Expenditure of each of the following amounts is contingent upon the department entering into a contract with the local school district containing such terms, conditions and reporting requirements as are required by the public school capital outlay council. Any unexpended or unencumbered balance remaining at the end of fiscal year 2004 shall revert to the general fund. Included in the appropriation are the following amounts for the following projects:

(1) five million six hundred seventy thousand dollars ($5,670,000) to replace Navajo elementary school in the Gallup-McKinley school district;

(2) six million dollars ($6,000,000) to construct Tohatchi middle school in the Gallup-McKinley school district;

(3) seven million dollars ($7,000,000) for a new high school at Pueblo Pintado in the Gallup-McKinley school district;

(4) ten million dollars ($10,000,000) to complete Laguna-Acoma high school in the Grants-Cibola school district; and

(5) five million dollars ($5,000,000) to finish Zuni high school and other projects in the Zuni school district.

D. Twenty thousand dollars ($20,000) is appropriated from the general fund to the legislative council service for expenditure in fiscal years 2001 and 2002 for the purpose of paying per diem and mileage for public members of the public school capital outlay task force. Any unexpended or unencumbered balance remaining at the end of fiscal year 2002 shall revert to the general fund.

Section 8. REPEAL.--Laws 2000, Chapter 95, Section 2 and Laws 2000 (2nd S.S.), Chapter 11, Section 3 are repealed.

Section 9. DELAYED REPEAL.--Sections 5 and 6 of this act are repealed effective January 1, 2004.

Section 10. EFFECTIVE DATE.--The effective date of the provisions of Sections 1 through 4 of this act is July 1, 2001.

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