SENATE BILL 717

47th legislature - STATE OF NEW MEXICO - second session, 2006

INTRODUCED BY

Ben D. Altamirano

AN ACT

RELATING TO THE EXPENDITURE OF PUBLIC MONEY; AUTHORIZING THE ISSUANCE AND SALE OF SHORT-TERM SEVERANCE TAX BONDS; AUTHORIZING THE EXPENDITURE OF THE SHORT-TERM SEVERANCE TAX BOND SALE PROCEEDS FOR HEATING AND UTILITY SYSTEMS FOR THE NEW MEXICO INSTITUTE OF MINING AND TECHNOLOGY AND FOR NEW MEXICO HIGHLANDS UNIVERSITY; MAKING APPROPRIATIONS; DECLARING AN EMERGENCY.

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

     Section 1. SHORT-TERM SEVERANCE TAX BONDS--NEW MEXICO INSTITUTE OF MINING AND TECHNOLOGY--INFRASTRUCTURE.--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, in fiscal year 2006, the state board of finance may issue and sell severance tax bonds with a term that does not extend beyond the fiscal year in which they are issued in an amount not exceeding fifteen million dollars ($15,000,000) when the board of regents of New Mexico institute of mining and technology certifies the need for the issuance of the bonds. The proceeds from the sale of the bonds are appropriated to the board of regents of New Mexico institute of mining and technology for heating and utility systems for the New Mexico institute of mining and technology in Socorro in Socorro county; provided that no severance tax bonds shall be issued pursuant to this section 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 section;

          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.

     Section 2. SHORT-TERM SEVERANCE TAX BONDS--NEW MEXICO HIGHLANDS UNIVERSITY--INFRASTRUCTURE.--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, in fiscal year 2006, the state board of finance may issue and sell severance tax bonds with a term that does not extend beyond the fiscal year in which they are issued in an amount not exceeding fifteen million dollars ($15,000,000) when the board of regents of New Mexico highlands university certifies the need for the issuance of the bonds. The proceeds from the sale of the bonds are appropriated to the board of regents of New Mexico highlands university for heating and utility systems for New Mexico highlands university in Las Vegas in San Miguel county; provided that no severance tax bonds shall be issued pursuant to this section 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 section;

          B. the debt service on the severance tax bonds to be issued pursuant to Section 1 of this act;

          C. 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

          D. 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.

     Section 3. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.

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