SENATE BILL 572

47th legislature - STATE OF NEW MEXICO - first session, 2005

INTRODUCED BY

Pete Campos

AN ACT

RELATING TO SEVERANCE TAX BONDS; AUTHORIZING SHORT-TERM SEVERANCE TAX BONDS TO BE ISSUED ANNUALLY FOR CAPITAL PROJECTS OF PUBLIC SCHOOLS AND HIGHER EDUCATION; MAKING AN APPROPRIATION.

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

     Section 1. A new section of the Severance Tax Bonding Act is enacted to read:

     "[NEW MATERIAL] SHORT-TERM SEVERANCE TAX BONDS AUTHORIZED--APPROPRIATION OF PROCEEDS.--

          A. In addition to the bonds issued pursuant to Section 7-27-14 NMSA 1978 and notwithstanding the limitations of that section, in compliance with the Severance Tax Bonding Act, the state board of finance may issue in any fiscal year severance tax bonds in the form of short-term notes, maturing on or before June 30 of that year, from any available cash in the severance tax bonding fund; provided that no bonds shall be issued pursuant to this subsection:

                (1) until all other severance tax bonds and supplemental severance tax bonds to be issued in that fiscal year have been issued; and

                (2) unless the balance in the severance tax bonding fund as of the date that the bonds are issued is greater than the sum of:

                     (a) the debt service on the severance tax bonds to be issued pursuant to this subsection;

                     (b) the debt service scheduled to be paid during the remainder of the fiscal year on all outstanding severance tax bonds and supplemental severance tax bonds; and

                     (c) the amount necessary to meet all principal and interest payments on outstanding bonds payable from the severance tax bonding fund on the next two ensuing semiannual payment dates.

          B. Proceeds from bonds issued pursuant to Subsection A of this section are appropriated as follows:

                (1) eighty percent of the proceeds are appropriated to the public school capital outlay fund for expenditure pursuant to the provisions of the Public School Capital Outlay Act; and

                (2) twenty percent of the proceeds are appropriated to the higher education capital project fund for expenditure for the capital needs of post-secondary educational institutions."

     Section 2. [NEW MATERIAL] HIGHER EDUCATION CAPITAL PROJECT FUND.--The "higher education capital project fund" is created in the state treasury. The fund shall be administered by the commission on higher education. The fund shall consist of money appropriated and transferred to the fund and severance tax bond proceeds distributed to the fund by law. Earnings from investment of the fund shall be credited to the fund. Money in the fund is subject to appropriation by the legislature for needed capital outlay projects at New Mexico's post-secondary educational institutions. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert. Disbursements from the fund shall be made upon warrants drawn by the secretary of finance and administration pursuant to vouchers signed by the executive director of the commission on higher education.

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