SENATE BILL 657
48th legislature - STATE OF NEW MEXICO - first session, 2007
INTRODUCED BY
Ben D. Altamirano
AN ACT
RELATING TO PUBLIC FINANCE; CHANGING THE PURPOSE OF CERTAIN AUTHORIZED REVENUE BONDS SO THAT THE PROCEEDS MAY BE USED FOR COUNTY HEALTH FACILITIES; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 6-21-6.7 NMSA 1978 (being Laws 2003, Chapter 341, Section 5, as amended) is amended to read:
"6-21-6.7. CREDIT ENHANCEMENT ACCOUNT CREATED--USE OF ACCOUNT--RELEASE OF MONEY TO THE GENERAL FUND.--
A. The "credit enhancement account" is created as a separate account within the authority for use only as provided in this section.
B. All cigarette tax proceeds distributed each month to the authority pursuant to Subsection G of Section 7-1-6.11 NMSA 1978 shall be deposited in the credit enhancement account.
C. Amounts deposited in the credit enhancement account may be pledged irrevocably as additional security for the payment of the principal, interest, premiums and expenses on bonds issued by the authority for:
(1) designing, constructing, equipping and furnishing additions and improvements to the university of New Mexico hospital and the cancer research and treatment center at the university of New Mexico health sciences center; and
(2) land acquisition and the planning, designing, construction and equipping of department of health facilities or county health facilities or improvements to such facilities.
D. The authority shall determine monthly upon receipt of cigarette tax proceeds if the individual amounts of cigarette tax proceeds distributed pursuant to Subsection E or Subsection F, respectively, of Section 7-1-6.11 NMSA 1978 are sufficient to meet the monthly amount required for immediate payment or designation for payment of principal, interest, premiums and expenses on bonds additionally secured by the credit enhancement account. Any insufficient amount shall be paid immediately from the credit enhancement account. A payment from the credit enhancement account shall be reimbursed in succeeding months from the individual amount of cigarette tax proceeds distributed pursuant to Subsection E or Subsection F, as applicable, of Section 7-1-6.11 NMSA 1978 in excess of the amount required for immediate payment or designation for payment of principal, interest, premiums and expenses on bonds. All money in the credit enhancement account in excess of the monthly amount required for immediate payment or designation for payment of principal, interest, premiums and expenses on bonds shall be transferred monthly by the authority to the general fund.
E. Upon payment of all principal, interest, premiums and expenses on bonds additionally secured by a pledge of amounts deposited in the credit enhancement account, the authority shall certify to the secretary of taxation and revenue that all obligations for bonds have been fully discharged and shall direct the secretary of taxation and revenue and the state treasurer to cease distributing cigarette tax proceeds to the authority pursuant to Subsection G of Section 7-1-6.11 NMSA 1978 and to distribute those cigarette tax proceeds to the general fund.
F. Any law authorizing the imposition, collection or distribution of the cigarette tax or that affects the cigarette tax shall not be amended, repealed or otherwise directly or indirectly modified so as to impair or reduce debt service coverage for any outstanding revenue bonds that may be secured by a pledge of those cigarette tax proceeds distributed to the credit enhancement account, unless the revenue bonds have been discharged in full or provisions have been made for a full discharge."
Section 2. Section 7-1-6.11 NMSA 1978 (being Laws 1983, Chapter 211, Section 16, as amended) is amended to read:
"7-1-6.11. DISTRIBUTIONS OF CIGARETTE TAXES.--
A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the county and municipality recreational fund in an amount equal to one and thirty-five hundredths percent of the net receipts, exclusive of penalties and interest, attributable to the cigarette tax.
B. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the county and municipal cigarette tax fund in an amount equal to two and sixty-nine hundredths percent of the net receipts, exclusive of penalties and interest, attributable to the cigarette tax.
C. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the cancer research and treatment center at the university of New Mexico health sciences center in an amount equal to one and thirty-five hundredths percent of the net receipts, exclusive of penalties and interest, attributable to the cigarette tax.
D. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the New Mexico finance authority in an amount equal to two and two-hundredths percent of the net receipts, exclusive of penalties and interest, attributable to the cigarette tax.
E. A distribution pursuant to Section 7-1-6.1 NMSA 1978 in an amount equal to fourteen and thirty-seven hundredths percent of the net receipts, exclusive of penalties and interest, attributable to the cigarette tax, shall be made, on behalf of and for the benefit of the university of New Mexico health sciences center, to the New Mexico finance authority.
F. A distribution pursuant to Section 7-1-6.1 NMSA 1978 in an amount equal to six and five-hundredths percent of the net receipts, exclusive of penalties and interest, attributable to the cigarette tax shall be made to the New Mexico finance authority for land acquisition and the planning, designing, construction and equipping of department of health facilities or county health facilities or improvements to such facilities.
G. A distribution pursuant to Section 7-1-6.1 NMSA 1978 in an amount equal to fifteen and seventy-nine hundredths percent of the net receipts, exclusive of penalties and interest, attributable to the cigarette tax shall be made to the New Mexico finance authority for deposit in the credit enhancement account created in the authority.
H. A distribution pursuant to Section 7-1-6.1 NMSA 1978 in an amount equal to one percent of the net receipts, exclusive of penalties and interest, attributable to the cigarette tax shall be made, on behalf of and for the benefit of the rural county cancer treatment fund, to the New Mexico finance authority."
Section 3. Laws 2003, Chapter 341, Section 4, as amended by Laws 2005, Chapter 320, Section 7, is amended to read:
"Section 4. NEW MEXICO FINANCE AUTHORITY REVENUE BONDS--
DEPARTMENT OF HEALTH FACILITIES--COUNTY HEALTH FACILITIES--APPROPRIATION.--
A. The New Mexico finance authority may issue and sell revenue bonds in compliance with the New Mexico Finance Authority Act for projects authorized specifically by law for land acquisition and the planning, designing, construction and equipping of department of health facilities or county health facilities or improvements to such facilities.
B. The New Mexico finance authority may issue and sell revenue bonds authorized by this section when the secretary of finance and administration certifies the need for issuance of the bonds. For department of health facilities, the net proceeds from the sale of the bonds are appropriated to the capital program fund administered by the property control division of the general services department for the purposes described in Subsection A of this section, and for county health facilities, the net proceeds from the sale of the bonds are appropriated to the local government division of the department of finance and administration for distribution to the county for the purposes described in Subsection A of this section.
C. The cigarette tax proceeds distributed to the New Mexico finance authority pursuant to Subsection F of Section 7-1-6.11 NMSA 1978 shall be pledged irrevocably for the payment of the principal, interest, premiums and related expenses on the bonds and for payment of the expenses incurred by the New Mexico finance authority related to the issuance, sale and administration of the bonds.
D. The cigarette tax proceeds distributed to the New Mexico finance authority pursuant to Subsection F of Section 7-1-6.11 NMSA 1978 shall be deposited each month in a separate fund or account of the authority. Money in the separate fund or account in excess of the combined total of the principal, interest and other expenses or obligations related to the bonds coming due in that fiscal year is appropriated to and shall be transferred to the capital program fund for capital improvements to department of health facilities recommended by the secretary of health and approved by the secretary of finance and administration.
E. Upon payment of all principal, interest and other expenses or obligations related to the bonds, the New Mexico finance authority shall certify to the secretary of taxation and revenue that all obligations for the bonds issued pursuant to this section have been fully discharged and shall direct the secretary of taxation and revenue and the state treasurer to cease distributing cigarette tax proceeds to the authority pursuant to Subsection F of Section 7-1-6.11 NMSA 1978 and to distribute those cigarette tax proceeds to the general fund.
F. Any law authorizing the imposition, collection or distribution of the cigarette tax or that affects the cigarette tax shall not be amended, repealed or otherwise directly or indirectly modified so as to impair or reduce debt service coverage for any outstanding revenue bonds that may be secured by a pledge of those cigarette tax revenues, unless the revenue bonds have been discharged in full or provisions have been made for a full discharge.
G. The New Mexico finance authority may additionally secure the revenue bonds issued pursuant to this section by a pledge of money in the public project revolving fund with a lien priority on the money in the public project revolving fund as determined by the authority.
H. The New Mexico finance authority may purchase revenue bonds issued pursuant to this section with money in the public project revolving fund pursuant to the provisions of Section 6-21-6 NMSA 1978."
Section 4. Laws 2005, Chapter 320, Section 8, as amended by Laws 2006, Chapter 67, Section 1 and Laws 2006, Chapter 111, Section 79, is amended to read:
"Section 8. AUTHORIZATION FOR REVENUE BONDS--DEPARTMENT OF HEALTH FACILITIES--COUNTY HEALTH FACILITIES.--Pursuant to Laws 2003, Chapter 341, Section 4, as amended by Laws 2005, Chapter 320, Section 7 and by Section 3 of this 2007 act, the New Mexico finance authority may issue and sell revenue bonds in compliance with the provisions of that section and the provisions of the New Mexico Finance Authority Act in an amount not exceeding thirty-nine million dollars ($39,000,000) plus an amount equal to the costs of issuing the revenue bonds for the following purposes in the following amounts:
A. ten million three hundred thousand dollars ($10,300,000) for capital outlay projects for the southern New Mexico rehabilitation center;
B. eleven million dollars ($11,000,000) for capital outlay projects for the New Mexico behavioral health institute at Las Vegas;
C. four million dollars ($4,000,000) for [capital outlay projects for Fort Bayard medical center] land acquisition and the planning, designing, construction and equipping of a county health facility for Grant county, the primary purpose of which is to provide indigent medical services; and
D. thirteen million seven hundred thousand dollars ($13,700,000) for use by the property control division of the general services department for land acquisition and the planning, designing, construction and equipping of a state laboratory facility in Bernalillo county for use by the department of health."
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