Committee Substitute for SB0112FCS

SENATE FINANCE COMMITTEE SUBSTITUTE FOR

SENATE BILL 112

49th legislature - STATE OF NEW MEXICO - second session, 2010

AN ACT

RELATING TO CAPITAL EXPENDITURES; AUTHORIZING THE ISSUANCE OF SEVERANCE TAX BONDS; AUTHORIZING EXPENDITURES FROM CERTAIN FUNDS AND BALANCES; 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 or may allocate to such purposes the proceeds of severance tax bonds reauthorized for but not allocated to specific purposes in other acts of the second session of the forty-ninth legislature. 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 and proceeds of severance tax bonds reauthorized for but not allocated to specific purposes in other acts of the second session of the forty-ninth legislature 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 appropriated 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 severance tax bond proceeds for a particular project, including projects that have been reauthorized, by the end of fiscal year 2012, the authorization for that project is void.

C. Before an agency may certify for the need of severance tax bond proceeds, the project must be developed sufficiently so that the agency reasonably expects to:

(1) incur within six months after the applicable bond proceeds are available for the project 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 bond proceeds are available for the project.

D. Except as otherwise specifically provided by law:

(1) the unexpended balance from the proceeds of severance tax bonds appropriated in this act for a project shall revert to the severance tax bonding fund no later than the following dates:

(a) for a project for which severance tax bond proceeds were appropriated to match federal grants, six months after completion of the project;

(b) for a project for which severance tax bond proceeds were appropriated to purchase vehicles, including emergency vehicles and other vehicles that require special equipment; heavy equipment; books; 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 two years following the fiscal year in which the severance tax bond proceeds were made available for the purchase; and

(c) for any other project for which severance tax bonds were appropriated, within six months of completion of the project, but no later than the end of fiscal year 2014; and

(2) all remaining balances from the proceeds of severance tax bonds appropriated for a project in this act shall revert to the severance tax bonding fund three months after the latest reversion date specified for that type of project in Paragraph (1) of this subsection.

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. OTHER FUND APPROPRIATIONS--LIMITATIONS--REVERSIONS.--

A. Except as otherwise specifically provided by law:

(1) the unexpended balance of an appropriation made in this act from other state funds shall revert no later than the following dates:

(a) for a project for which an appropriation was made to match federal grants, six months after completion of the project;

(b) for a project for which an appropriation was made to purchase vehicles, including emergency vehicles and other vehicles that require special equipment; heavy equipment; books; 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 two years following the fiscal year in which the appropriation was made for the purchase; and

(c) for any other project for which an appropriation was made, within six months of completion of the project, but no later than the end of fiscal year 2014; and

(2) all remaining balances from an appropriation made in this act for a project shall revert three months after the latest reversion date specified for that type of project in Paragraph (1) of this subsection.

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. Except as provided in Subsection E of this section, the balance of an appropriation made from the general fund shall revert in the time frame set forth in Subsection A of this section to the capital projects fund.

D. Except as provided in Subsection E of this section, the balance of an appropriation made from other state funds shall revert in the time frame set forth in Subsection A of this section to the originating fund.

E. The balance of an appropriation made from the general fund or other state fund to the Indian affairs department or the aging and long-term services department for a project located on lands of an Indian nation, tribe or pueblo shall revert in the time frame set forth in Subsection A of this section to the tribal infrastructure project fund.

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 3. ADMINISTRATIVE OFFICE OF THE COURTS PROJECTS--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, one million dollars ($1,000,000) is appropriated to the administrative office of the courts to purchase and install security equipment, including related infrastructure, at courts statewide.

Section 4. CAPITAL PROGRAM FUND PROJECTS--SEVERANCE TAX BONDS.--Pursuant to the provisions of Section 1 of this act, upon certification by the property control division of the general services department that the need exists for the issuance of the bonds, the following amounts are appropriated to the capital program fund for the following purposes:

1. four hundred thousand dollars ($400,000) to renovate and equip the youth diagnostic and development center in Albuquerque in Bernalillo county in accordance with the Missouri model and implementation of Cambiar New Mexico;

2. five hundred thousand dollars ($500,000) for upgrades, including walkways, sidewalks, ramps and stairs, to comply with the Americans with Disabilities Act of 1990 at the youth diagnostic and development center campus in Albuquerque in Bernalillo county;

3. five hundred thousand dollars ($500,000) to upgrade the security systems at the youth diagnostic and development center and at the Camino Nuevo site in Albuquerque in Bernalillo county;

4. five hundred thousand dollars ($500,000) to purchase, install, equip and furnish the tri-lab facility project, including moving new and existing furniture and equipment, at the state laboratory services building in Albuquerque in Bernalillo county;

5. four hundred thousand dollars ($400,000) to replace the roof and make improvements, including mold remediation and structural and plumbing repairs, at the motor vehicle division's Clovis field office in Curry county;

6. two million five hundred thousand dollars ($2,500,000) to complete construction of the Santa Teresa port of entry in Dona Ana county;

7. eight hundred twenty thousand dollars ($820,000) for continued construction and infrastructure improvements at the department of public safety district offices in Las Cruces in Dona Ana county and Las Vegas in San Miguel county;

8. seven million dollars ($7,000,000) to plan, design and construct the New Meadows and Ponderosa buildings at the New Mexico behavioral health institute in Las Vegas in San Miguel county;

9. two million dollars ($2,000,000) to upgrade the heating, ventilation and air conditioning systems and infrastructure at the southern New Mexico correctional facility in Dona Ana county and the central New Mexico correctional facility in Valencia county;

10. two million four hundred thousand dollars ($2,400,000) for patient health and safety improvements at department of health facilities statewide;

11. five hundred thousand dollars ($500,000) for demolition, decommissioning and asbestos abatement of state buildings, including the oil conservation field office in Hobbs in Lea county, El Camino building and CBS barracks at the behavioral health institute in Las Vegas in San Miguel county and the old dormitory at the New Mexico rehabilitation center in Roswell in Chaves county; and

12. three million four hundred eighty thousand dollars ($3,480,000) for repairs, renovations, deferred maintenance, restoration and infrastructure improvements at state buildings statewide.

Section 5. CULTURAL AFFAIRS DEPARTMENT PROJECT--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, one million one hundred thousand dollars ($1,100,000) is appropriated to the cultural affairs department for repairs and infrastructure improvements, including security, fire suppression, electrical, sewer and utility upgrades and improvements to comply with the Americans with Disabilities Act of 1990, to state museums and monuments statewide.

Section 6. CUMBRES AND TOLTEC SCENIC RAILROAD COMMISSION PROJECTS--SEVERANCE TAX BONDS.--Pursuant to the provisions of Section 1 of this act, upon certification by the Cumbres and Toltec scenic railroad commission that the need exists for the issuance of the bonds, four hundred thousand dollars ($400,000) is appropriated to the Cumbres and Toltec scenic railroad commission for track rehabilitation and improvements to the Cumbres and Toltec scenic railroad in Rio Arriba county.

Section 7. OFFICE OF THE STATE ENGINEER PROJECTS--SEVERANCE TAX BONDS.--Pursuant to the provisions of Section 1 of this act, upon certification by the office of the state engineer that the need exists for the issuance of the bonds, one million dollars ($1,000,000) is appropriated to the office of the state engineer for construction and improvements to the Cabresto Lake dam in Taos county, the Bluewater dam in Cibola county and the Hatch site 6 dam in Dona Ana county.

Section 8. DEPARTMENT OF FINANCE AND ADMINISTRATION PROJECTS--SEVERANCE TAX BONDS.--Pursuant to the provisions of Section 1 of this act, upon certification by the department of finance and administration that the need exists for the issuance of the bonds, the following amounts are appropriated to the department of finance and administration for the following purposes:

1. two million dollars ($2,000,000) for colonias infrastructure improvements statewide;

2. two million dollars ($2,000,000) for infrastructure development, design and construction for a financial services economic development project in Bernalillo county pursuant to the Local Economic Development Act; and

3. three million dollars ($3,000,000) for infrastructure development, design and construction of a technical support center in Rio Rancho in Sandoval county pursuant to the Local Economic Development Act.

Section 9. TRIBAL INFRASTRUCTURE PROJECT FUND PROJECTS--SEVERANCE TAX BONDS.--Pursuant to the provisions of Section 1 of this act, upon certification by the department of finance and administration that the need exists for the issuance of the bonds, two million five hundred thousand dollars ($2,500,000) is appropriated to the tribal infrastructure project fund for tribal infrastructure projects related to water, wastewater, electrical systems, communications, roads, health, emergency facilities and economic development statewide to carry out the provisions of the Tribal Infrastructure Act.

Section 10. DEPARTMENT OF PUBLIC SAFETY PROJECT--SEVERANCE TAX BONDS.--Pursuant to the provisions of Section 1 of this act, upon certification by the department of public safety that the need exists for the issuance of the bonds, three hundred thousand dollars ($300,000) is appropriated to the department of public safety to purchase and equip vehicles.

Section 11. DEPARTMENT OF GAME AND FISH PROJECT--APPROPRIATION FROM THE GAME AND FISH BOND RETIREMENT FUND AND THE GAME PROTECTION FUND.--The following amounts are appropriated from the following funds to the department of game and fish for expenditure in fiscal years 2010 through 2014, unless otherwise provided for in Section 2 of this act, to construct and make improvements to integrate the existing cold water fish hatchery at the Rock Lake warm water fish hatchery in Guadalupe county:

1. one million two hundred thousand dollars ($1,200,000) from the game and fish bond retirement fund; and

2. two million three hundred thousand dollars ($2,300,000) from the game protection fund.

Section 12. DEPARTMENT OF TRANSPORTATION PROJECT--APPROPRIATION FROM THE STATE ROAD FUND.--Three hundred fifty thousand dollars ($350,000) is appropriated from the state road fund to the department of transportation for expenditure in fiscal years 2010 through 2014, unless otherwise provided for in Section 2 of this act, for purchase, installation and construction of salt storage facilities in Clines Corners in Torrance county.

Section 13. 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 14. 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 15. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.

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