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SPONSOR: |
Burpo |
DATE TYPED: |
1-24-02 |
HB |
18 |
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SHORT TITLE: |
School District Bond Anticipation Notes Act |
SB |
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ANALYST: |
Baca |
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APPROPRIATION
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Appropriation
Contained |
Estimated
Additional Impact |
Recurring or Non-Rec |
Fund Affected |
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FY02 |
FY03 |
FY02 |
FY03 |
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NFI
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(Parenthesis)
Indicate Expenditure Decreases)
LFC Files
SUMMARY
Synopsis
of Bill
House Bill 18 creates
the “School District Bond Anticipation Notes Act,” (the Act) to provide a
mechanism for school districts to obtain short-term financing for capital
projects that are needed to meet the educational needs of students and to
promote the health, safety, security and general welfare of the students.
The bill carries an
emergency clause.
Significant
Issues
The Act provides a means for school districts
that have passed general obligation bond issues to obtain short-term financing
for capital projects in an amount not greater than that approved by the voters
prior to selling the authorized general obligation issue. Bond anticipation notes issues pursuant to
the provisions of the Act shall mature not later than one year from the date of
issue and may not exceed an effective interest rate of 10 percent per
year. Additionally, bond anticipation
notes issued may not exceed the amount approved by the voters or exceed the
amount of unsold general obligation bonds authorized.
By incurring this “temporary debt,” local school
districts may proceed with needed capital outlay projects at the earliest
possible date to meet the needs of students.
Incurring this “temporary debt” shall not be
considered a violation of Article 9, Section 11 of the New Mexico
Constitution. The Act allows a local
school district to consider issuance of bond anticipation notes as having
satisfied the “voter approval” requirement provisions of Article 9, Section 11.
Prior to issuing bond anticipation notes, the
local school board shall:
1. adopt a resolution authorizing the issuance
of anticipation notes,
2. publish a notice of
the adoption of the resolution once in a newspaper of general circulation in
the school district, and
3. allow thirty days from the date of the publication
for citizens to take action attacking the validity of the proceedings taken by
the local school board preliminary to and in the authorization of bond
anticipation notes.
After thirty days from the date of publication
of the resolution, any action attacking the validity of the proceedings taken
by the school board toward the issuance of bond anticipation notes shall be
perpetually barred.
FISCAL IMPLICATIONS
None to the general
fund. However, issuance of short-term
bond anticipation notes may increase costs to local school districts.
House Bill 18 proposes a statute that appears consistent with the
provisions of the New Mexico Constitution.
It may be prudent to assure that the Act in no way conflicts with or
appears to supersede the Constitution.
[1]Begin typing on the * in replace mode. Do not add or delete spaces.