45th legislature - STATE OF NEW MEXICO - second session, 2002

RELATING TO CAPITAL EXPENDITURES; AUTHORIZING THE ISSUANCE OF SEVERANCE TAX BONDS; REAUTHORIZING BALANCES; CHANGING THE PURPOSE OF A SEVERANCE TAX BOND APPROPRIATION; CHANGING A GENERAL FUND APPROPRIATION; CLARIFYING CONDITIONS FOR THE ISSUANCE OF BONDS; ESTABLISHING CONDITIONS FOR THE EXPENDITURE OF SEVERANCE TAX BOND PROCEEDS; ESTABLISHING CONDITIONS FOR THE REVERSION OF UNEXPENDED BALANCES; 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 2004, 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 is 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 2007.

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 is 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 2007.

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. UNIVERSITY OF NEW MEXICO PROJECT--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, one million five hundred ten thousand dollars ($1,510,000) is appropriated to the board of regents of the university of New Mexico for constructing and installing equipment at the manufacturing training and technology center cleanroom at the university of New Mexico in Albuquerque in Bernalillo county.

Section 4. ARMORY PROJECT STATEWIDE--STATE ARMORY BOARD--SEVERANCE TAX BONDS.--Pursuant to the provisions of Section 1 of this act, upon certification by the state armory board that the need exists for the issuance of the bonds, one million dollars ($1,000,000) is appropriated to the state armory board for the statewide armory renovation and rehabilitation project.

Section 5. WASTEWATER FACILITY CONSTRUCTION LOAN FUND--DEPARTMENT OF ENVIRONMENT--SEVERANCE TAX BONDS.--Pursuant to the provisions of Section 1 of this act, upon certification by the department of environment that the need exists for the issuance of the bonds, one million five hundred thousand dollars ($1,500,000) is appropriated to the wastewater facility construction loan fund to carry out the provisions of the Wastewater Facility Construction Loan Act.

Section 6. 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 2003 to carry out the provisions of the Public School Capital Outlay Act. Any unexpended or unencumbered balance remaining at the end of fiscal year 2003 shall not revert.

Section 7. RIO GRANDE HISTORIC THEATER--SEVERANCE TAX BOND AND GENERAL FUND APPROPRIATIONS--CHANGE AGENCY AND EXPAND PURPOSE TO CONSTRUCT THE THEATER.--

A. The proceeds from the sale of severance tax bonds appropriated to the office of cultural affairs pursuant to Subsection E of Section 6 of Chapter 23 of Laws 2000 (2nd S.S.) to furnish and equip the Rio Grande historic theater as a performing arts center in Las Cruces in Dona Ana county shall be expended for the original purpose but are reauthorized and appropriated to the local government division of the department of finance and administration.

B. The general fund appropriation made to the office of cultural affairs pursuant to Laws 2000 (2nd S.S.), Chapter 23, Section 38 to renovate, furnish and equip the Rio Grande historic theater to be used as a performing arts center in Las Cruces in Dona Ana county is appropriated to the local government division of the department of finance and administration and may also be expended to construct the Rio Grande historic theater as a performing arts center in Las Cruces in Dona Ana county.

Section 8. 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 9. 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 10. EMERGENCY.--It is necessary for the publicpeace, health and safety that this act take effect immediately.