SENATE BILL 414
47th legislature - STATE OF NEW MEXICO - second session, 2006
INTRODUCED BY
Joseph A. Fidel
AN ACT
RELATING TO CAPITAL EXPENDITURES; AUTHORIZING THE ISSUANCE OF SEVERANCE TAX BONDS; AUTHORIZING EXPENDITURES FROM CERTAIN FUNDS AND BALANCES; REAUTHORIZING BALANCES; CHANGING THE PURPOSE OF PRIOR AUTHORIZATIONS AND APPROPRIATIONS; 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 2008, 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;
(3) for projects for which severance tax bonds were issued to purchase emergency vehicles or other vehicles that require special equipment, at the end of the fiscal year two years following the fiscal year in which the severance tax bonds were issued for the purchase; and
(4) 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 2011.
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 reserving for unpaid costs and expenses covered by binding written obligations to third parties.
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;
(3) for projects for which appropriations were made to purchase emergency vehicles or other vehicles that require special equipment, at the end of the fiscal year two years following the fiscal year in which the appropriation was made for the purchase; and
(4) 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 2011.
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 reserving for unpaid costs and expenses covered by binding written obligations to third parties.
Section 3. AGING PROJECTS--AGING AND LONG-TERM SERVICES DEPARTMENT--SEVERANCE TAX BONDS.--Pursuant to the provisions of Section 1 of this act, upon certification by the aging and long-term services department that the need exists for the issuance of the bonds, two million eight hundred thousand dollars ($2,800,000) is appropriated to the aging and long-term services department to purchase vehicles for senior centers statewide.
Section 4. STATEWIDE MAGISTRATE COURT PROJECTS--ADMINISTRATIVE OFFICE OF THE COURTS--SEVERANCE TAX BONDS.--Pursuant to the provisions of Section 1 of this act, upon certification by the administrative office of the courts that the need exists for the issuance of the bonds, five hundred thousand dollars ($500,000) is appropriated to the administrative office of the courts for improvements to purchase proximity entrance systems, shatterproof security windows at clerks' counters, panic-duress alarms, X-ray machines and interior door locks for magistrate courts statewide.
Section 5. STATEWIDE MAIN STREET PROJECTS--ECONOMIC DEVELOPMENT DEPARTMENT--SEVERANCE TAX BONDS.--Pursuant to the provisions of Section 1 of this act, upon certification by the economic development department that the need exists for the issuance of the bonds, four million dollars ($4,000,000) is appropriated to the economic development department to fund main street projects in communities statewide, including building renovations, renovations to historic plaza centers, streetlights, sidewalks, awnings and signage.
Section 6. CULTURAL AFFAIRS PROJECTS--CULTURAL AFFAIRS DEPARTMENT--SEVERANCE TAX BONDS.--Pursuant to the provisions of Section 1 of this act, upon certification by the cultural affairs department that the need exists for the issuance of the bonds, seven million seven hundred thousand dollars ($7,700,000) is appropriated to the cultural affairs department to fund statewide facility repairs and improvements to comply with health and safety requirements of the Americans with Disabilities Act of 1990 at cultural affairs department facilities statewide.
Section 7. SEVENTH GRADE LAPTOP INITIATIVE--PUBLIC EDUCATION DEPARTMENT--GENERAL FUND.--Eight million dollars ($8,000,000) is appropriated from the general fund to the public education department for expenditure in fiscal years 2006 and 2007 to purchase laptop computers for seventh grade students statewide.
Section 8. STATEWIDE GROUND WATER MEASUREMENT--OFFICE OF THE STATE ENGINEER--GENERAL FUND.--Five hundred thousand dollars ($500,000) is appropriated from the general fund to the office of the state engineer for expenditure in fiscal years 2006 through 2011 to purchase and install well meters in nondomestic wells statewide for ground water measurement.
Section 9. MESA ROAD ASBESTOS REMEDIATION--CHANGE TO BELEN LIBRARY CONSTRUCTION--SEVERANCE TAX BONDS.--The unexpended balance of the appropriation to the department of environment for the project in Subsection 58 of Section 12 of Chapter 347 of Laws 2005 for asbestos remediation in water and sewer lines on Mesa road in Belen in Valencia county shall not be expended for the original purpose but is appropriated to the local government division to plan, design, construct, equip and furnish a public library in Belen.
Section 10. SAN JUAN DETOXIFICATION CENTER--CHANGE TO BEHAVIORAL HEALTH CENTER IN FARMINGTON--SEVERANCE TAX BONDS.--The unexpended balance of the appropriation to the local government division for the project in Subsection 155 of Section 16 of Chapter 347 of Laws 2005 for a San Juan detoxification center in San Juan county shall not be expended for the original purpose but is changed to furnish and equip the behavioral health center in Farmington in San Juan county.
Section 11. COMMUNICATIONS TOWER FOR THE TULAROSA SAFETY BUILDING--CHANGE TO EQUIPMENT AND VEHICLES--GENERAL FUND.--The unexpended balance of the appropriation to the department of public safety in Subsection 3 of Section 50 of Chapter 347 of Laws 2005 to construct a communications tower for the Tularosa safety building in Otero county shall not be expended for the original purpose but is appropriated to the local government division to purchase equipment and vehicles for the Tularosa department of public safety in Otero county.
Section 12. 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 13. 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 14. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.
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