HOUSE BILL 139

50th legislature - STATE OF NEW MEXICO - second session, 2012

INTRODUCED BY

Larry A. Larrañaga

AN ACT

RELATING TO CAPITAL EXPENDITURES; AMENDING THE SEVERANCE TAX BONDING ACT TO ALLOW THE STATE BOARD OF FINANCE TO ISSUE SUPPLEMENTAL ROAD SEVERANCE TAX BONDS; CLARIFYING THE TYPES OF SUPPLEMENTAL SEVERANCE TAX BONDS; RECONCILING CONFLICTING AMENDMENTS TO THE SAME SECTION OF LAW BY REPEALING LAWS 2001, CHAPTER 37, SECTION 1.

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

     SECTION 1. Section 7-27-9 NMSA 1978 (being Laws 1961, Chapter 5, Section 7, as amended) is amended to read:

     "7-27-9. BONDS--[TO BE KNOWN AS] SEVERANCE TAX BONDS AND SUPPLEMENTAL SEVERANCE TAX BONDS.--

          A. Prior to July 1, 1999, all bonds issued wherein the money in the severance tax bonding fund is pledged for their retirement shall be known as "New Mexico severance tax bonds".

          B. After July 1, 1999, there shall be two categories of bonds issued by the state board of finance wherein the money in the severance tax bonding fund is pledged for their retirement. Those bonds shall be known as "New Mexico severance tax bonds" and as "New Mexico supplemental severance tax bonds".

          C. Upon the effective date of this 2012 act, New Mexico supplemental severance tax bonds shall include:

                (1) supplemental public school severance tax bonds used for public school capital outlay projects, as provided in Subsection A of Section 7-27-12.2 NMSA 1978; and

                (2) supplemental road severance tax bonds, used for maintenance, construction and improvements of state transportation projects as provided in Subsection D of Section 7-27-12.2 NMSA 1978."

     SECTION 2. Section 7-27-12 NMSA 1978 (being Laws 1961, Chapter 5, Section 10, as amended by Laws 2001, Chapter 37, Section 1 and by Laws 2001, Chapter 338, Section 1) is amended to read:

     "7-27-12. WHEN SEVERANCE TAX BONDS TO BE ISSUED.--

          A. The state board of finance shall issue and sell all severance tax bonds when authorized to do so by any law that sets out the amount of the issue and the recipient of the money.

          B. The state board of finance shall also issue and sell severance tax bonds authorized by Sections 72-14-36 through 72-14-42 NMSA 1978, and such authority as has been given to the interstate stream commission to issue and sell such bonds is transferred to the state board of finance. The state board of finance shall issue and sell all severance tax bonds only when so instructed by resolution of the governing body or by written direction from an authorized officer of the recipient of the bond money.

          C. [Except as provided in Subsection D of this section] Proceeds from supplemental severance tax bonds shall be used [only for public school capital outlay projects pursuant to the Public School Capital Outlay Act or the Public School Capital Improvements Act] as follows:

                (1) proceeds from supplemental public school severance tax bonds issued pursuant to Subsection A of Section 7-27-12.2 NMSA 1978 shall be used for the purpose specified in that subsection;

                [D.] (2) proceeds from supplemental severance tax bonds issued pursuant to Paragraph (2) of Subsection A of Section 19 of Chapter 6 of Laws 1999 (1st S.S.) shall be used for the purposes specified in that paragraph; and

                (3) proceeds from supplemental road severance tax bonds issued pursuant to Subsection D of Section 7-27-12.2 NMSA 1978 shall be used for the purposes specified in that subsection.

          [E. Except as provided in Subsection F of this section]

          D. The state board of finance shall:

                (1) issue and sell all supplemental public school severance tax bonds when so instructed by resolution of the public school capital outlay council pursuant to Section 7-27-12.2 NMSA 1978; and

                (2) issue and sell all supplemental road severance tax bonds when so instructed by resolution of the state transportation commission pursuant to Section 7-27-12.2 NMSA 1978.

          [F.] E. The state board of finance shall issue and sell supplemental severance tax bonds authorized by Paragraph (2) of Subsection A of Section 19 of Chapter 6 of Laws 1999 (1st S.S.) when so instructed by resolution of the [commission on] higher education department."

     SECTION 3. Section 7-27-12.2 NMSA 1978 (being Laws 2001, Chapter 338, Section 2, as amended) is amended to read:

     "7-27-12.2. SUPPLEMENTAL PUBLIC SCHOOL SEVERANCE TAX BONDS--PUBLIC SCHOOL CAPITAL OUTLAY PROJECT--SUPPLEMENTAL ROAD SEVERANCE TAX BONDS--ROAD FUND PROJECTS.--

          A. The public school capital outlay council is authorized to certify by resolution that proceeds of supplemental public school severance tax bonds are needed for expenditures relating to public school capital outlay projects pursuant to the Public School Capital Outlay Act or for the state distribution for public school capital improvements pursuant to the Public School Capital Improvements Act. The resolution shall specify the total amount needed.

          B. The state board of finance may issue and sell supplemental public school severance tax bonds in compliance with the Severance Tax Bonding Act when the public school capital outlay council certifies by resolution the need for the issuance of the bonds. The amount of the bonds sold at each sale shall not exceed the lesser of the amount certified by the council or the amount that may be issued pursuant to the restrictions of Section 7-27-14 NMSA 1978.

          [C. The state board of finance shall schedule the issuance and sale of the bonds in the most expeditious and economical manner possible.

          D.] C. The proceeds from the sale of the supplemental public school severance tax bonds are appropriated as follows:

                (1) the amount certified by the secretary of public education as necessary to make the distribution pursuant to Section 22-25-9 NMSA 1978 is appropriated to the public school capital improvements fund for the purpose of carrying out the provisions of the Public School Capital Improvements Act; and

                (2) the remainder of the proceeds is appropriated to the public school capital outlay fund for the purpose of carrying out the provisions of the Public School Capital Outlay Act.

          D. The state transportation commission is authorized to certify by resolution that proceeds of supplemental road severance tax bonds are needed for expenditures related to maintenance, construction and improvements of state transportation projects. The resolution shall specify the total amount needed.

          E. The state board of finance may issue and sell supplemental road severance tax bonds in compliance with the Severance Tax Bonding Act when the state transportation commission certifies by resolution the need for the issuance of the bonds. The amount of the bonds sold at each sale shall not exceed the lesser of the amount certified by the commission or the amount that may be issued pursuant to the restrictions provided in Section 7-27-14 NMSA 1978.

          F. The proceeds from the sale of the supplemental road severance tax bonds are appropriated to the state road fund for expenditure as provided in Subsection D of this section.

          G. The state board of finance shall schedule the issuance and sale of supplemental severance tax bonds in the most expeditious and economical manner possible."

     SECTION 4. Section 7-27-14 NMSA 1978 (being Laws 1961, Chapter 5, Section 11, as amended) is amended to read:

     "7-27-14. AMOUNT OF TAX--SECURITY FOR BONDS.--

          A. The legislature shall provide for the continued assessment, levy, collection and deposit into the severance tax bonding fund of the tax or taxes upon natural resource products severed and saved from the soil of the state that, together with such other income as may be deposited to the fund, will be sufficient to produce an amount that is at least the amount necessary to meet annual debt service charges on all outstanding severance tax bonds and supplemental severance tax bonds.

          B. Except as otherwise specifically provided by law, the state board of finance shall not issue [no] severance tax bonds unless the aggregate amount of severance tax bonds outstanding, and including the issue proposed, can be serviced with not more than fifty percent of the annual deposits into the severance tax bonding fund, as determined by the deposits during the preceding fiscal year.

          C. The state board of finance shall not issue [no] supplemental public school severance tax bonds with a term that extends beyond the fiscal year in which the bonds are issued unless the aggregate amount of severance tax bonds and supplemental severance tax bonds outstanding, and including the issue proposed, can be serviced with not more than sixty-two and one-half percent of the annual deposits into the severance tax bonding fund, as determined by the deposits during the preceding fiscal year.

          D. Except as otherwise specifically provided by law, the state board of finance may issue supplemental public school severance tax bonds with a term that does not extend beyond the fiscal year in which they are issued if the debt service on such supplemental public school severance tax bonds when added to the debt service previously paid or scheduled to be paid during that fiscal year on severance tax bonds and supplemental public school severance tax bonds does not exceed [ninety-five] seventy-five percent of the deposits into the severance tax bonding fund during the preceding fiscal year.

          E. Except as otherwise specifically provided by law, the state board of finance may issue supplemental road severance tax bonds for expenditures related to maintenance, construction and improvements of state transportation projects with a term that does not extend beyond the fiscal year in which they are issued if the debt service on such supplemental road severance tax bonds when added to the debt service previously paid or scheduled to be paid during that fiscal year on severance tax bonds and supplemental public school severance tax bonds does not exceed ninety-five percent of the deposits into the severance tax bonding fund during the preceding fiscal year.

          [E.] F. The provisions of this section shall not be modified by the terms of any severance tax bonds or supplemental severance tax bonds hereafter issued."

     SECTION 5. REPEAL.--Laws 2001, Chapter 37, Section 1 is repealed.

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