SENATE BILL 340
46th legislature - STATE OF NEW MEXICO - second session, 2004
INTRODUCED BY
Pete Campos
AN ACT
RELATING TO CAPITAL PROJECTS; ENACTING THE CAPITAL PROJECTS ACT; CREATING THE CAPITAL PROJECTS COUNCIL; PROVIDING PROCEDURES FOR EVALUATING AND PRIORITIZING PROPOSED CAPITAL
PROJECTS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. SHORT TITLE.--This act may be cited as the "Capital Projects Act".
Section 2. FINDINGS AND PURPOSE.--
A. The legislature finds that:
(1) the cost of needed state and local capital improvement and infrastructure projects annually exceeds the available funding resources;
(2) it has become difficult to adequately evaluate and prioritize proposed capital outlay projects to ensure that the available resources are expended in the most cost-effective manner; and
(3) the current system for evaluating and prioritizing proposed capital outlay projects could be improved by delegating those functions to a coordinating council.
B. The purpose of the Capital Projects Act is to create a council of experts to evaluate and prioritize proposed statewide and local capital outlay projects and to monitor and oversee projects authorized by the legislature to ensure that appropriations are expended in the most cost-effective manner.
Section 3. DEFINITIONS.--As used in the Capital Projects Act:
A. "capital project" means repair, renovation or construction of a facility; purchase of land; acquisition of capital equipment of a long-term nature; and repair, renovation or construction of roads and water and wastewater systems; and
B. "council" means the capital projects council.
Section 4. CAPITAL PROJECTS COUNCIL--CREATION--APPOINTMENT.--
A. The "capital projects council" is created. The council consists of the following members:
(1) six members appointed by the governor, who may be cabinet secretaries or public members;
(2) the state engineer or his designee;
(3) the executive director of the commission on higher education or his designee;
(4) the executive director of the New Mexico municipal league or his designee;
(5) the executive director of the New Mexico association of counties or his designee;
(6) the executive director of the New Mexico finance authority or his designee; and
(7) one member, appointed by the governor, representing Indian nations, tribes and pueblos.
B. The members appointed by the governor serve at the pleasure of the governor. If the governor appoints public members, they must have expertise in capital financing, planning or construction.
C. The council shall elect a chair and such other officers it deems necessary. The council shall meet at the call of the chair, not less than quarterly. Public members of the council may receive per diem and mileage expenses pursuant to the Per Diem and Mileage Act.
Section 5. CAPITAL PROJECTS COUNCIL--POWERS--DUTIES.--
A. The council may:
(1) subject to legislative appropriation, appoint and employ such professional, technical and clerical assistance as it deems necessary to carry out the provisions of the Capital Projects Act;
(2) enter into those contracts necessary to carry out the provisions of the Capital Projects Act;
(3) conduct research and studies to improve the planning and prioritizing of capital projects and the allocation of available resources;
(4) apply for and receive grants and accept gifts, donations, bequests and devises in the name of the state to carry out the provisions of the Capital Projects Act;
(5) appoint such committees and subcommittees as necessary to perform its duties; and
(6) adopt rules necessary to carry out the provisions of the Capital Projects Act.
B. The council shall:
(1) prepare an annual operating budget for submission to the legislature;
(2) after July 1, 2005, accept proposals for capital projects, prioritize the proposals and, by December 1, 2005 and each year thereafter, make recommendations to the legislature for funding the prioritized projects;
(3) coordinate all planning, oversight, monitoring and reporting functions of state government regarding capital projects authorized by law. All agencies, institutions, instrumentalities and political subdivisions of the state shall assist the council in complying with this requirement. The provisions of this paragraph do not apply to:
(a) capital projects funded pursuant to the Public School Capital Outlay Act;
(b) capital improvements funded pursuant to the Public School Capital Improvements Act; and
(c) capital projects authorized by legislation enacted after July 1, 2005 that specifically exclude the capital project from the provisions of the Capital Projects Act;
(4) develop criteria and procedures for evaluating and prioritizing proposals for capital projects; and
(5) develop such reporting requirements for capital projects as necessary to ensure that the projects are being implemented in a cost-effective manner and consistent with the original purpose of the legislation providing for the project.
Section 6. CAPITAL PROJECTS PRIORITIZATION.--
A. After July 1, 2005, any agency, political subdivision, instrumentality or institution of the state may submit a proposal for a capital project to the council. Each proposal shall contain:
(1) a detailed description of the proposed project;
(2) an explanation of the need for the proposed project;
(3) a description of the prime beneficiaries of the proposed project;
(4) the estimated total cost of the proposed project and an explanation of how the cost was derived;
(5) the amount and source of any other funding;
(6) an explanation of how the project will be implemented and maintained and the amount and source of estimated implementation and maintenance costs; and
(7) any other information required by rule of the council.
B. Upon receipt of a proposal, the council shall investigate the statements and facts contained in the proposal and shall conduct such site visits and hearings as it deems necessary. The council shall consider all proposals and, after a public hearing, shall list all proposals in order of priority.
Section 7. TEMPORARY PROVISION.--During fiscal year 2005, the capital projects council shall organize and perform its duties pursuant to the Capital Projects Act; except that the council shall not accept and prioritize proposals and make recommendations to the legislature until after July 1, 2005. The council shall submit to the first session of the forty-seventh legislature the criteria and procedures for evaluating and prioritizing proposals and the reporting requirements developed pursuant to the Capital Projects Act together with any recommendations of the council for proposed legislation.
Section 8. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2004.
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