SENATE BILL 237
49th legislature - STATE OF NEW MEXICO - second session, 2010
INTRODUCED BY
Clinton D. Harden
AN ACT
RELATING TO CAPITAL EXPENDITURES; CHANGING THE REVERSION DATE AND TRANSFERRING UNEXPENDED BALANCES OF APPROPRIATIONS MADE FOR CERTAIN CAPITAL PROJECTS; REVERTING AND TRANSFERRING UNEXPENDED BALANCES OF APPROPRIATIONS FOR PROJECTS THAT HAVE BEEN COMPLETED; REVERTING OR REAUTHORIZING A PORTION OF ALL APPROPRIATIONS FOR CAPITAL PROJECTS MADE IN CERTAIN ACTS OF THE LEGISLATURE; REDUCING CERTAIN SEVERANCE TAX BOND AUTHORIZATIONS BY TEN PERCENT; PROVIDING EXEMPTIONS; DECLARING AN EMERGENCY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Laws 2005, Chapter 347, Section 1 is amended to read:
"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] Laws 2005, Chapter 347. 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] Laws 2005, Chapter 347.
B. The agencies named in [this act] Laws 2005, Chapter 347 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] Laws 2005, Chapter 347. 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 2007, 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 Subsection E of this section or another section of [this act] Laws 2005, Chapter 347, 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 2010.
E. Notwithstanding the reversion requirements of Subsection D of this section or another section of Laws 2005, Chapter 347, the unexpended or uncommitted balance remaining on the effective date of this 2010 act from severance tax bond proceeds appropriated for a capital project in Laws 2005, Chapter 347, including a project that has been reauthorized in that act, shall not be expended for its original or reauthorized purpose, but shall revert to the severance tax bonding fund on the effective date of this 2010 act and, within thirty days of that effective date, shall be transferred to the severance tax bonding fund by the department of finance and administration, provided that the provisions of this subsection do not apply to an appropriation:
(1) for which the statutory reversion date is after June 30, 2010;
(2) to a nonreverting fund; or
(3) if the secretary of finance and administration determines that:
(a) there are available matching federal, state or local funds that, when combined with the appropriation, are sufficient to fully fund a project; and
(b) all or part of the matching funds will be lost and the project not completed if the appropriation is subjected to the provisions of this subsection.
[E.] F. Except for appropriations to the capital program fund, money from severance tax bond proceeds provided pursuant to [this act] Laws 2005, Chapter 347 shall not be used to pay indirect project costs.
[F.] G. 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. Laws 2005, Chapter 347, Section 2 is amended to read:
"Section 2. GENERAL FUND AND OTHER FUND APPROPRIATIONS--
LIMITATIONS--REVERSIONS.--
A. Except as otherwise provided in Subsection B of this section or another section of [this act] Laws 2005, Chapter 347, the unexpended balance of an appropriation made in [this act] Laws 2005, Chapter 347 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 severance tax bonds were issued 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 2010.
B. Notwithstanding the reversion requirements of Subsection A of this section or another section of Laws 2005, Chapter 347, the unexpended or uncommitted balance from an appropriation for a capital project in Laws 2005, Chapter 347 from the general fund or other state fund, including a change in that act to a prior appropriation, shall revert to the originating fund on the effective date of this 2010 act and, within thirty days of that effective date, shall be transferred to the originating fund by the department of finance and administration, provided that the provisions of this subsection do not apply to an appropriation:
(1) for which the statutory reversion date is after June 30, 2010;
(2) to a nonreverting fund; or
(3) if the secretary of finance and administration determines that:
(a) there are available matching federal, state or local funds that, when combined with the appropriation, are sufficient to fully fund a project; and
(b) all or part of the matching funds will be lost and the project not completed if the appropriation is subjected to the provisions of this subsection.
[B.] C. Except for appropriations to the capital program fund, money from appropriations made in [this act] Laws 2005, Chapter 347 shall not be used to pay indirect project costs.
[C.] D. 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. Laws 2006, Chapter 107, Section 1 is amended to read:
"Section 1. SEVERANCE TAX BONDS--REVERSION OF UNEXPENDED PROCEEDS.--
A. Except as otherwise provided in Subsection B of this section or another section of [this act] Laws 2006, Chapter 107, the unexpended balance from the proceeds of severance tax bonds issued for a project that has been reauthorized in [this act] Laws 2006, Chapter 107 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, including emergency vehicles and other vehicles that require special equipment; 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 two years following the fiscal year in which the severance tax bonds were issued for the purchase; and
(3) 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 2010.
B. Notwithstanding the reversion requirements of Subsection A of this section or another section of Laws 2006, Chapter 107, the unexpended or uncommitted balance remaining on the effective date of this 2010 act, from severance tax bond proceeds appropriated for a capital project that has been reauthorized in Laws 2006, Chapter 107, shall not be expended for its original or reauthorized purpose, but shall revert to the severance tax bonding fund on the effective date of this 2010 act and, within thirty days of that effective date, shall be transferred to the severance tax bonding fund by the department of finance and administration, provided that the provisions of this subsection do not apply to an appropriation:
(1) for which the statutory reversion date is after June 30, 2010;
(2) to a nonreverting fund; or
(3) if the secretary of finance and administration determines that:
(a) there are available matching federal, state or local funds that, when combined with the appropriation, are sufficient to fully fund a project; and
(b) all or part of the matching funds will be lost and the project not completed if the appropriation is subjected to the provisions of this subsection.
[B.] 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 4. Laws 2006, Chapter 111, Section 1 is amended to read:
"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] Laws 2006, Chapter 111. 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] Laws 2006, Chapter 111.
B. The agencies named in [this act] Laws 2006, Chapter 111 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] Laws 2006, Chapter 111. 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 Subsection E of this section or another section of [this act] Laws 2006, Chapter 111, 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, emergency vehicles or other vehicles that require special equipment, 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 two years following the fiscal year in which the severance tax bonds were issued for the purchase; and
(3) 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 2010.
E. Notwithstanding the reversion requirements of Subsection D of this section or another section of Laws 2006, Chapter 111, the unexpended or uncommitted balance remaining on the effective date of this 2010 act from severance tax bond proceeds appropriated for a capital project in Laws 2006, Chapter 111, including a project that has been reauthorized in that act, shall not be expended for its original or reauthorized purpose, but shall revert to the severance tax bonding fund on the effective date of this 2010 act and, within thirty days of that effective date, shall be transferred to the severance tax bonding fund by the department of finance and administration, provided that the provisions of this subsection do not apply to an appropriation:
(1) for which the statutory reversion date is after June 30, 2010;
(2) to a nonreverting fund; or
(3) if the secretary of finance and administration determines that:
(a) there are available matching federal, state or local funds that, when combined with the appropriation, are sufficient to fully fund a project; and
(b) all or part of the matching funds will be lost and the project not completed if the appropriation is subjected to the provisions of this subsection.
[E.] F. Except for appropriations to the capital program fund, money from severance tax bond proceeds provided pursuant to [this act] Laws 2006, Chapter 111 shall not be used to pay indirect project costs.
[F.] G. 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 5. Laws 2006, Chapter 111, Section 2 is amended to read:
"Section 2. GENERAL FUND AND OTHER FUND APPROPRIATIONS-- LIMITATIONS--REVERSIONS.--
A. Except as otherwise provided in Subsection B of this section or another section of [this act] Laws 2006, Chapter 111, the unexpended balance of an appropriation made in [this act] Laws 2006, Chapter 111 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, emergency vehicles or other vehicles that require special equipment, 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 two years following the fiscal year in which the appropriation was made for the purchase; and
(3) 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 2010.
B. Notwithstanding the reversion requirements of Subsection A of this section or another section of Laws 2006, Chapter 111, the unexpended or uncommitted balance from an appropriation for a capital project in Laws 2006, Chapter 111 from the general fund or other state fund, including a change in that act to a prior appropriation, shall revert to the originating fund on the effective date of this 2010 act and, within thirty days of that effective date, shall be transferred to the originating fund by the department of finance and administration, provided that the provisions of this subsection do not apply to an appropriation:
(1) for which the statutory reversion date is after June 30, 2010;
(2) to a nonreverting fund; or
(3) if the secretary of finance and administration determines that:
(a) there are available matching federal, state or local funds that, when combined with the appropriation, are sufficient to fully fund a project; and
(b) all or part of the matching funds will be lost and the project not completed if the appropriation is subjected to the provisions of this subsection.
[B.] C. Upon certification by an agency that money from the general fund is needed for a purpose specified in [this act] Laws 2006, Chapter 111, the secretary of finance and administration shall disburse such amount of the appropriation for that project as is necessary to meet that need.
[C.] D. Except for appropriations to the capital program fund, money from appropriations made in [this act] Laws 2006, Chapter 111 shall not be used to pay indirect project costs.
[D.] E. 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 6. [NEW MATERIAL] COMPLETED PROJECTS--REVERSION OF UNEXPENDED BALANCES.--
A. Notwithstanding the reversion requirements of any other law, on the effective date of this act the unexpended balance of an appropriation from the general fund or other state fund in a law specified in Section 8 of this act, including a change in that law to a prior appropriation, shall revert to the originating fund if the project has been completed. Within thirty days of the effective date of this act, the unexpended balance shall be transferred to the originating fund by the department of finance and administration.
B. Notwithstanding the reversion requirements of any other law, on the effective date of this act the unexpended balance of an appropriation of severance tax bonds proceeds in a law specified in Section 8 of this act, including a reauthorization in that law of a prior appropriation, shall revert to the severance tax bonding fund if the project has been completed. Within thirty days of the effective date of this act, the unexpended balance shall be transferred to the severance tax bonding fund by the department of finance and administration.
Section 7. [NEW MATERIAL] ACTIVE PROJECTS--PARTIAL REVERSION OF BALANCES--EXEMPTIONS.--
A. Notwithstanding the reversion requirements of any other law, and except as provided in Subsection C of this section, on the effective date of this act, one hundred percent of the unexpended or uncommitted balance of an appropriation from the general fund or other state fund in a law specified in Section 8 of this act, including a change in that law to a prior appropriation, or ten percent of the amount of the appropriation, whichever is less, shall revert to the originating fund if the project has not been completed, provided that, if the appropriation is in an act amended by Section 2 or 5 of this act, the reversion required by this subsection shall apply only to appropriations not affected by an amendment made in Section 2 or 5 of this act. Within thirty days of the effective date of this act, the reversion required by this subsection shall be transferred to the originating fund by the department of finance and administration.
B. Notwithstanding the reversion requirements of any other law, and except as provided in Subsection C of this section, on the effective date of this act, one hundred percent of the unexpended or uncommitted balance of an appropriation of severance tax bonds proceeds in a law specified in Section 8 of this act, including a reauthorization in that law of a prior appropriation, or ten percent of the amount of the appropriation, whichever is less, shall revert to the severance tax bonding fund if the project has not been completed, provided that, if the appropriation is in an act amended by Section 1, 3 or 4 of this act, the reversion required by this subsection shall apply only to appropriations not affected by an amendment made in Section 1, 3 or 4 of this act, and provided further that, if the authorized severance tax bonds have not been issued for a project listed in a law specified in Section 8 of this act, then the amount of bonds authorized for that project shall be reduced by ten percent. Within thirty days of the effective date of this act, the unexpended balance shall be transferred to the severance tax bonding fund by the department of finance and administration.
C. The provisions of Subsections A and B of this section do not apply to an appropriation for a project if, within thirty days of the effective date of this act:
(1) the secretary of finance and administration determines that:
(a) there are available matching federal, local or other state funds, including funds available through the New Mexico finance authority, that, when combined with the appropriation, are sufficient to fully fund the project; and
(b) the project is likely to be completed by December 31, 2010; or
(2) the secretary of finance and administration determines that the project is likely to be completed by June 30, 2010.
Section 8. [NEW MATERIAL] APPLICABILITY.--The provisions of Sections 6 and 7 of this act apply to all appropriations in Laws 2004, Chapter 126; Laws 2005, Chapter 347; Laws 2006, Chapter 107; Laws 2006, Chapter 111; Laws 2007, Chapter 2; Laws 2007, Chapter 42; Laws 2007, Chapter 334; Laws 2007, Chapter 341; Laws 2007 (1st S.S.), Chapter 3; Laws 2008, Chapter 83; Laws 2008, Chapter 92; Laws 2009, Chapter 125; and Laws 2009, Chapter 128.
Section 9. [NEW MATERIAL] DEFINITIONS.--As used in this act:
A. "uncommitted balance" means the remainder of an appropriation after reserving for costs and expenses not yet incurred but that will be incurred prior to the reversion date for the appropriation, under binding written obligations to third parties to purchase property or services, which binding written obligations were entered into prior to the effective date of this 2010 act; and
B. "unexpended balance" means the remainder of an appropriation after reserving for unpaid costs and expenses covered by binding written obligations to third parties.
Section 10. SEVERABILITY.--If, in this act, a specific reversion or a decreased bond authorization is held invalid or otherwise cannot be effectuated, the remainder of the act and any other reversion or decreased bond authorization shall not be affected.
Section 11. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.
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