SENATE JOINT RESOLUTION 9

48th legislature - STATE OF NEW MEXICO - second session, 2008

INTRODUCED BY

Pete Campos

A JOINT RESOLUTION

PROPOSING AN AMENDMENT TO THE CONSTITUTION OF NEW MEXICO TO RAISE THE STATEWIDE DEBT LIMIT BY ONE PERCENT IF THE INCREASED INDEBTEDNESS IS CREATED EXCLUSIVELY FOR HEALTH CARE FACILITIES OR THE NEEDS OF NEW MEXICO'S INSTITUTIONS OF HIGHER LEARNING.

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

     Section 1. It is proposed to amend Article 9, Section 8 of the constitution of New Mexico to read:

          "A. No debt other than [those] that specified in [the preceding section] Article 9, Section 7 of this constitution shall be contracted by or on behalf of this state, unless authorized by law for some specified work or object; which law shall provide for an annual tax levy sufficient to pay the interest and to provide a sinking fund to pay the principal of such debt within fifty years from the time of the contracting thereof. No such law shall take effect until it shall have been submitted to the qualified electors of the state and have received a majority of all the votes cast thereon at a general election; such law shall be published in full in at least one newspaper in each county of the state, if one be published therein, once each week, for four successive weeks next preceding such election.

          B. No debt shall be [so] created pursuant to Subsection A of this section if:

                (1) the total indebtedness of the state, exclusive of [the debts of the territory, and the several counties thereof, assumed by the state] debts created for health care facilities or the needs of New Mexico's public post-secondary educational institutions, would thereby be made to exceed one percent of the assessed valuation of all the property subject to taxation in the state as shown by the preceding general assessment; or

                (2) the total indebtedness of the state for all purposes would thereby be made to exceed two percent of the assessed valuation of all property subject to taxation in the state as shown by the preceding general assessment.

          [B.] C. For the purposes of this section and Article 4, Section 29 of the constitution of New Mexico, a financing agreement entered into by the state for the leasing of a building or other real property with an option to purchase for a price that is reduced according to the payments made by the state pursuant to the financing agreement is not a debt if:

                (1) there is no legal obligation for the state to continue the lease from year to year or to purchase the real property; and

                (2) the agreement provides that the lease shall be terminated if sufficient appropriations are not available to meet the current lease payments."

     Section 2. The amendment proposed by this resolution shall be submitted to the people for their approval or rejection at the next general election or at any special election prior to that date that may be called for that purpose.

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