AN ACT

RELATING TO INSURANCE; EXTENDING A SURCHARGE ON CERTAIN FEES; AUTHORIZING THE NEW MEXICO FINANCE AUTHORITY TO ISSUE BONDS FOR THE PURPOSE OF FINANCING INFORMATION AND COMMUNICATION EQUIPMENT; MAKING AN APPROPRIATION.

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

     Section 1. Section 59A-6-1.1 NMSA 1978 (being Laws 1996, Chapter 6, Section 1) is amended to read:

     "59A-6-1.1. SURCHARGE IMPOSED--APPROPRIATION.--A

three-dollar ($3.00) surcharge shall be assessed for the period beginning March 1, 1996 and ending June 30, 2009 on the annual continuation of appointment fees imposed in Subsections E, F, N, S, W and X of Section 59A-6-1 NMSA 1978. The surcharge collected shall be distributed monthly to the New Mexico finance authority to be pledged irrevocably for the payment of principal, interest and any other expenses or obligations related to the bonds issued by the authority to finance information and communication equipment, including computer hardware and software, for the insurance division."

     Section 2. Laws 1996, Chapter 6, Section 3, as amended by Laws 2003, Chapter 306, Section 8, is amended to read:

     "NEW MEXICO FINANCE AUTHORITY REVENUE BONDS--PURPOSE-- APPROPRIATION.--

          A. The New Mexico finance authority may issue and sell revenue bonds in compliance with the New Mexico Finance Authority Act in installments or at one time in an amount not exceeding one million dollars ($1,000,000) for the purpose of financing information and communication equipment, including computer hardware and software, for the insurance division of the public regulation commission.

          B. In addition to the bonds issued pursuant to Subsection A of this section, the New Mexico finance authority may issue and sell revenue bonds in compliance with the New Mexico Finance Authority Act in installments or at one time in an amount not exceeding an additional one million dollars ($1,000,000) for the purpose of financing information and communication equipment, including computer hardware and software, for the insurance division of the public regulation commission.

           C. The New Mexico finance authority may issue and sell revenue bonds authorized by this section when the superintendent of insurance certifies the need to issue the bonds. The net proceeds from the sale of the bonds are appropriated to the insurance division for the purposes described in Subsections A and B of this section.

           D. The proceeds from the surcharge imposed pursuant to Section 59A-6-1.1 NMSA 1978 shall be distributed monthly to the New Mexico finance authority to be pledged irrevocably for the payment of the principal, interest and any other expenses or obligations related to the bonds.

           E. The surcharge proceeds distributed to the New Mexico finance authority shall be deposited in a separate fund or account of the authority. At the end of each fiscal year, any money remaining in the separate fund or account from distributions made to the authority during that fiscal year, after all principal, interest and any other expenses or obligations related to the bonds in that fiscal year are fully paid, may be appropriated by the legislature to the insurance division for acquisition, maintenance and operation of information and communication equipment, including computer hardware, software, systems planning, deployment and training. Upon payment of all principal, interest and any other expenses or obligations related to the bonds, the authority shall certify to the insurance division that all obligations for the bonds issued pursuant to this section have been fully discharged and direct the division to cease distributing money pursuant to Section 59A-6-1.1 NMSA 1978 to the authority.

           F. Any law authorizing the imposition or distribution of the surcharge or that affects the surcharge shall not be amended, repealed or otherwise directly or indirectly modified to impair any outstanding revenue bonds that may be secured by a pledge of the surcharge collections, unless the revenue bonds have been discharged in full or provisions have been made for a full discharge."