SB0053

SENATE BILL 53

51st legislature - STATE OF NEW MEXICO - second session, 2014

INTRODUCED BY

Carlos R. Cisneros

AN ACT

AUTHORIZING THE ISSUANCE AND SALE OF CAPITAL PROJECTS GENERAL OBLIGATION BONDS TO MAKE CAPITAL EXPENDITURES FOR SENIOR CITIZEN FACILITY IMPROVEMENTS AND ACQUISITIONS, FOR LIBRARY ACQUISITIONS AND FOR CAPITAL IMPROVEMENTS AND ACQUISITIONS AT INSTITUTIONS OF HIGHER EDUCATION, STATE SPECIAL SCHOOLS AND TRIBAL SCHOOLS; PROVIDING FOR A TAX LEVY FOR PAYMENT OF PRINCIPAL OF, INTEREST ON AND CERTAIN COSTS RELATED TO THE BONDS; REQUIRING APPROVAL OF THE REGISTERED VOTERS AT THE 2014 GENERAL ELECTION OF THE STATE; DECLARING AN EMERGENCY.

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

SECTION 1. SHORT TITLE.--This act may be cited as the "2014 Capital Projects General Obligation Bond Act".

SECTION 2. PURPOSE.--For the purpose of providing funds for capital expenditures as authorized in the 2014 Capital Projects General Obligation Bond Act, general obligation indebtedness of the state is authorized for the purposes and in the amounts set forth in Section 10 of that act.

SECTION 3. BOND TERMS.--

A. The state board of finance, except as limited by the 2014 Capital Projects General Obligation Bond Act, shall determine the terms, covenants and conditions of bonds issued pursuant to that act, including but not limited to:

(1) date or dates of issue, denominations and maturities;

(2) principal amounts;

(3) rate or rates of interest; and

(4) provisions for redemption, including premiums, registration and refundability, whether the bonds are issued in one or more series and other covenants relating to the bonds and the issuance thereof.

B. The bonds shall be in such form as the state board of finance determines with an appropriate series designation and shall bear interest payable as set forth in the resolution of the state board of finance.

C. Payment of the principal of the bonds shall begin not more than two years after the date of their issuance, and the bonds shall mature not later than ten years after the date of their issuance. Both principal and interest shall be payable in lawful money of the United States at the office of the paying agent within or without the state as the state board of finance may direct.

D. The bonds shall be executed with the manual or facsimile signature of the governor or the state treasurer, and the seal or a facsimile of the seal of the state shall be placed on each bond, except for any series of bonds issued in book entry or similar form without the delivery of physical securities.

E. The bonds shall be issued in accordance with the provisions of the 2014 Capital Projects General Obligation Bond Act, the Supplemental Public Securities Act and the Uniform Facsimile Signature of Public Officials Act and may be issued in accordance with the Public Securities Short-Term Interest Rate Act.

F. The full faith and credit of the state is pledged for the prompt payment when due of the principal of and interest on all bonds issued and sold pursuant to the 2014 Capital Projects General Obligation Bond Act.

SECTION 4. EXPENDITURES.--The proceeds from the sale of the bonds shall be expended solely for providing money to be distributed for the purposes and in amounts not to exceed the amounts set forth in Section 10 of the 2014 Capital Projects General Obligation Bond Act and to pay expenses incurred under Section 6 of that act. Any proceeds from the sale of the bonds that are not required for the purposes set forth in Sections 6 and 10 of that act shall be used for the purpose of paying the principal of and interest on the bonds.

SECTION 5. SALE.--The bonds authorized under the 2014 Capital Projects General Obligation Bond Act shall be sold by the state board of finance at such time and in such manner and amounts as the board may elect. The bonds may be sold at private sale or at public sale, in either case at not less than par plus accrued interest to the date of delivery. If sold at public sale, the state board of finance shall publish a notice of the time and place of sale in a newspaper of general circulation in the state and may also publish the notice in a recognized financial journal outside the state. The required publications shall be made once each week for two consecutive weeks prior to the date fixed for the sale, the last publication thereof to be at least five days prior to the date of the sale. The notice shall specify the amount, denomination, maturity and description of the bonds to be offered for sale and the place, date and hour at which the sealed bids shall be received. At the time and place specified in the notice, the state board of finance shall open the bids in public and shall award the bonds to the bidder or bidders offering the best price for the bonds. The state board of finance may reject any or all bids and readvertise and may waive any irregularity in a bid. All bids, except that of the state, shall be accompanied by a deposit of two percent of the principal amount of the bonds in a form acceptable to the state board of finance. The deposit of an unsuccessful bidder shall be returned upon rejection of the bid. The state board of finance may also sell the bonds or any part of the bonds to the state treasurer or state investment officer. The state treasurer or state investment officer is authorized to purchase any of the bonds for investment. The bonds are legal investments for any person or board charged with the investment of any public funds and may be accepted as security for any deposit of public money.

SECTION 6. EXPENSES.--The expenses incurred by the state board of finance in or relating to the preparation and sale of the bonds shall be paid out of the proceeds from the sale of the bonds, and all rebate, penalty, interest and other obligations of the state relating to the bonds and bond proceeds under the Internal Revenue Code of 1986, as amended, shall be paid from earnings on bond proceeds or other money of the state, legally available for such payments.

SECTION 7. TAX LEVY.--To provide for the payment of the principal of and interest on the bonds issued and sold pursuant to the provisions of the 2014 Capital Projects General Obligation Bond Act, there shall be and there is hereby imposed and levied during each year in which any of the bonds are outstanding an ad valorem tax on all property in the state subject to property taxation for state purposes sufficient to pay the interest as it becomes due on the bonds, together with an amount sufficient to provide a sinking fund to pay the principal of the bonds as it becomes due, and, if permitted by law, ad valorem taxes may be collected to pay administrative costs incident to the collection of such taxes. The taxes shall be imposed, levied, assessed and collected at the times and in the manner that other property taxes for state purposes are imposed, levied, assessed and collected. It is the duty of all tax officials and authorities to cause these taxes to be imposed, levied, assessed and collected.

SECTION 8. TREASURER--DUTIES.--The state treasurer shall keep separate accounts of all money collected pursuant to the taxes imposed and levied pursuant to the provisions of the 2014 Capital Projects General Obligation Bond Act and shall use this money only for the purposes of paying the principal of and interest on the bonds as they become due and any expenses relating thereto.

SECTION 9. IRREPEALABLE CONTRACT--AUTHORITY FOR ISSUANCE.--An owner of bonds issued pursuant to the provisions of the 2014 Capital Projects General Obligation Bond Act may, either at law or in equity, by suit, action or mandamus, enforce and compel the performance of the duties required by that act of any officer or entity mentioned in that act. The provisions of that act constitute an irrepealable contract with the owners of any of the bonds issued pursuant to that act for the faithful performance of which the full faith and credit of the state is pledged. Without reference to any other act of the legislature, the 2014 Capital Projects General Obligation Bond Act is full authority for the issuance and sale of the bonds authorized in that act, and such bonds shall have all the qualities of investment securities under the Uniform Commercial Code, shall not be invalid for any irregularity or defect in the proceedings for the issuance and sale of the bonds and shall be incontestable in the hands of bona fide purchasers or holders thereof for value. All bonds issued under the provisions of that act, and the interest thereon, are exempt from taxation by the state and any subdivision or public body thereof.

SECTION 10. PROJECTS.--The proceeds from the sale of bonds issued under the provisions of the 2014 Capital Projects General Obligation Bond Act shall be distributed as follows for the purposes and in the amounts specified:

A. for senior citizen facility improvement, construction and equipment acquisition projects, to the aging and long-term services department:

(1) five million three hundred fifty-five thousand dollars ($5,355,000) to construct, renovate and improve infrastructure at the following senior centers:

(a) one million eight hundred fifty thousand dollars ($1,850,000) for the senior center in the Church Rock chapter of the Navajo Nation in McKinley county;

(b) two hundred fifty thousand dollars ($250,000) for the senior center in the Chichiltah chapter of the Navajo Nation in McKinley county;

(d) three hundred seventy-five thousand dollars ($375,000) for the Tularosa senior center in Otero county;

(e) three hundred thousand dollars ($300,000) for the senior center in the Beclabito chapter of the Navajo Nation in San Juan county;

(f) one million eight hundred fifty thousand dollars ($1,850,000) for the Bernalillo senior center in Sandoval county; and

(g) four hundred forty thousand dollars ($440,000) for the senior center in the Torreon chapter of the Navajo Nation in Sandoval county;

(2) three hundred seventy thousand five hundred dollars ($370,500) to purchase and install equipment at senior centers statewide;

(3) nine hundred forty-nine thousand four hundred ten dollars ($949,410) to purchase and install meals equipment at senior centers statewide;

(4) two million four thousand three hundred twenty dollars ($2,004,320) to plan, design, renovate and equip senior centers statewide;

(5) five million six hundred sixty thousand dollars ($5,660,000) to purchase and equip vehicles for senior centers statewide; and

(6) two million one hundred four thousand five hundred sixty dollars ($2,104,560) to make improvements for building code compliance, including the purchase and installation of equipment, at senior centers statewide;

B. for library acquisitions at public libraries, public school libraries, academic libraries and tribal libraries statewide:

(1) to the cultural affairs department:

(a) three million dollars ($3,000,000) for equipment and supplemental library resource acquisitions, including print, non-print and electronic resources, at non-tribal public libraries statewide; and

(b) eight hundred thousand dollars ($800,000) for equipment and supplemental library resource acquisitions, including print, non-print and electronic resources, at tribal libraries statewide;

(2) to the higher education department, three million five hundred thousand dollars ($3,500,000) for library resource acquisitions, including books, equipment, resources and collaborative library resources and information technology projects, at academic libraries statewide; and

(3) to the public education department, three million five hundred thousand dollars ($3,500,000) for library resource acquisitions, including library books, at public school libraries statewide; and

C. for capital improvements at institutions of higher education, special schools and tribal schools statewide:

(1) to the board of regents of eastern New Mexico university:

(a) three million dollars ($3,000,000) for critical health and safety infrastructure improvements campuswide, including demolition, at the Roswell branch campus of eastern New Mexico university in Chaves county;

(b) three hundred twenty-five thousand dollars ($325,000) to plan, design, construct, renovate, equip and furnish the main entrance at the Ruidoso branch community college of eastern New Mexico university in Lincoln county; and

(c) eleven million dollars ($11,000,000) to plan, design, construct, renovate, equip and furnish the Golden library, including renovating additional space to be part of the Golden student success center, at eastern New Mexico university in Portales in Roosevelt county;

(2) to the higher education department:

(a) ten million dollars ($10,000,000) to plan, design, construct, renovate, equip and furnish Smith Brasher hall at central New Mexico community college in Albuquerque in Bernalillo county;

(b) five hundred thousand dollars ($500,000) for roof repairs and replacement campuswide at Clovis community college in Curry county;

(c) five million dollars ($5,000,000) to plan, design, construct, equip and furnish a health and wellness learning center at New Mexico junior college in Hobbs in Lea county;

(d) one million three hundred eighty thousand dollars ($1,380,000) to plan, design, construct, renovate, equip and furnish improvements at the satellite campuses of Luna community college in Santa Rosa in Guadalupe county and Springer in Colfax county;

(e) six hundred fifty thousand dollars ($650,000) for roof renovations and replacement of buildings A, C and D and for critical infrastructure improvements, including heating, ventilation and air conditioning systems, at Mesalands community college in Tucumcari in Quay county;

(f) four million dollars ($4,000,000) to plan, design, construct, renovate, equip and furnish the school of science, math and engineering, including improvements to erosion control, at San Juan college in Farmington in San Juan county; and

(g) two million dollars ($2,000,000) for critical health and safety infrastructure improvements campuswide at Santa Fe community college in Santa Fe county;

(3) to the board of regents of New Mexico highlands university, five million dollars ($5,000,000) for critical health and safety infrastructure improvements campuswide, including electrical distribution and fire systems, at New Mexico highlands university in Las Vegas in San Miguel county;

(4) to the board of regents of New Mexico institute of mining and technology, fifteen million dollars ($15,000,000) to construct, equip and furnish a facility to house the chemistry department at New Mexico institute of mining and technology in Socorro in Socorro county;

(5) to the board of regents of New Mexico military institute, four million eight hundred thousand dollars ($4,800,000) to plan, design, construct, renovate, equip and furnish Marshall hall at the New Mexico military institute in Roswell in Chaves county;

(6) to the board of regents of New Mexico state university:

(a) one million three hundred thousand dollars ($1,300,000) for critical health and safety infrastructure improvements and renovations to Martinez hall and for energy and lighting upgrades and site improvements campuswide at the Grants campus of New Mexico state university in Cibola county;

(b) nineteen million two hundred thousand dollars ($19,200,000) to construct, renovate, equip and furnish Jett hall, Jett annex, Renfrow hall and surrounding areas, including additions and improvements to utilities infrastructure, at New Mexico state university in Las Cruces in Dona Ana county;

(c) two million dollars ($2,000,000) for critical health and safety infrastructure improvements campuswide, including lighting retrofitting in classrooms, roof replacement and exterior repairs, at the Dona Ana branch community college of New Mexico state university in Dona Ana county;

(d) one million six hundred thousand dollars ($1,600,000) for health and safety infrastructure improvements campuswide, including security upgrades and the replacement and relocation of steam boilers and equipment, at the Carlsbad branch campus of New Mexico state university in Eddy county; and

(e) one million dollars ($1,000,000) to plan, design and renovate roofs and laboratory classrooms and to upgrade energy systems at the Alamogordo branch campus of New Mexico state university in Otero county;

(7) to the board of regents of northern New Mexico state school, two million dollars ($2,000,000) for critical health and safety infrastructure improvements at the El Rito and Espanola campuses of northern New Mexico state school in Rio Arriba county;

(8) to the board of regents of the university of New Mexico:

(a) twenty million five hundred thousand dollars ($20,500,000) to construct, renovate, equip and furnish the Farris engineering building to house the chemical and nuclear engineering and computer science programs in the school of engineering at the university of New Mexico in Albuquerque in Bernalillo county;

(b) twelve million dollars ($12,000,000) to plan, design, construct, renovate, equip and furnish a health education building, including laboratories, study space and classrooms, at the health sciences center at the university of New Mexico in Albuquerque in Bernalillo county;

(c) five hundred thousand dollars ($500,000) to plan, design, construct, renovate, equip and furnish the emergency medical services classroom laboratory and training area at the Los Alamos branch campus of the university of New Mexico in Los Alamos county;

(d) one million dollars ($1,000,000) to plan, design, renovate, construct, equip and furnish the Zollinger library and lower shell space at the Gallup branch campus of the university of New Mexico in McKinley county;

(e) four million dollars ($4,000,000) to design, construct, equip and furnish the health career training center at the Taos branch campus of the university of New Mexico in Taos county; and

(f) one million dollars ($1,000,000) for critical health and safety infrastructure improvements campuswide at the Valencia branch campus of the university of New Mexico in Los Lunas in Valencia county;

(9) to the board of regents of western New Mexico university, six million dollars ($6,000,000) to plan, design, construct, renovate, equip and furnish Light and Harlan halls and to renovate, upgrade and replace the heating, ventilation and air conditioning and climate control systems in Fleming hall at western New Mexico university in Silver City in Grant county; and

(10) to the Indian affairs department:

(a) two million dollars ($2,000,000) to plan, design, construct, equip and furnish the multipurpose wellness and education center at Navajo technical university in Crownpoint in McKinley county;

(b) five hundred thousand dollars ($500,000) to plan and design a math and science building at Dine college in Shiprock in San Juan county;

(c) two million dollars ($2,000,000) to plan, design, construct, equip and furnish a multipurpose fitness and performing arts center at the institute of American Indian arts in Santa Fe county; and

(d) five hundred thousand dollars ($500,000) for upgrades to the youth activity complex, including improvements to the grounds and site, security lighting and drainage, at Santa Fe Indian school in Santa Fe in Santa Fe county.

SECTION 11. ELECTION.--

A. Bonds issued pursuant to the 2014 Capital Projects General Obligation Bond Act shall be submitted to the registered voters of the state at the general election to be held in November 2014, and, if they receive a majority of all the votes cast thereon at such election, shall take effect upon certification of the state canvassing board announcing the results of the election. No bonds shall be issued or sold under that act until the registered voters of this state have voted upon and approved the bonds and property tax as provided in this section. Any bonds issued under that act shall be issued within thirty months from the date of such election.

B. The ballots used at the 2014 general election shall contain substantially the following language:

(1) "The 2014 Capital Projects General Obligation Bond Act authorizes the issuance and sale of senior citizen facility improvement, construction and equipment acquisition bonds. Shall the state be authorized to issue general obligation bonds in an amount not to exceed seventeen million dollars ($17,000,000) to make capital expenditures for certain senior citizen facility improvement, construction and equipment acquisition projects and provide for a general property tax imposition and levy for the payment of principal of, interest on and expenses incurred in connection with the issuance of the bonds and the collection of the tax as permitted by law?

For________________ Against___________________";

(2) "The 2014 Capital Projects General Obligation Bond Act authorizes the issuance and sale of library acquisition bonds. Shall the state be authorized to issue general obligation bonds in an amount not to exceed eleven million dollars ($11,000,000) to make capital expenditures for academic, public school, tribal and public library resource acquisitions and provide for a general property tax imposition and levy for the payment of principal of, interest on and expenses incurred in connection with the issuance of the bonds and the collection of the tax as permitted by law?

For________________ Against___________________"; and

(3) "The 2014 Capital Projects General Obligation Bond Act authorizes the issuance and sale of higher education, special schools and tribal schools capital improvement and acquisition bonds. Shall the state be authorized to issue general obligation bonds in an amount not to exceed one hundred forty-one million dollars ($141,000,000) to make capital expenditures for certain higher education, special schools and tribal schools capital improvements and acquisitions and provide for a general property tax imposition and levy for the payment of principal of, interest on and expenses incurred in connection with the issuance of the bonds and the collection of the tax as permitted by law?

For________________ Against___________________".

C. Each question set forth in this section includes a specific work or object to be financed by the bonds. If any such question is not approved by a majority vote of the electorate at the state's 2014 general election, the issuance of bonds for the work or object specified by the question shall be excluded from and shall not be part of the 2014 Capital Projects General Obligation Bond Act. The failure of a question to be approved by the electorate at the 2014 general election shall not affect those questions that are approved at the election.

D. The secretary of state shall include the submission of the capital projects general obligation bonds to the people at the 2014 general election, and it shall be included in the general election proclamation of each of the county clerks. The secretary of state shall cause the 2014 Capital Projects General Obligation Bond Act to 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 the general election as required by the constitution of New Mexico.

SECTION 12. ART IN PUBLIC PLACES.--Pursuant to Section

13-4A-4 NMSA 1978 and where applicable, the appropriations authorized in the 2014 Capital Projects General Obligation Bond Act include money for the art in public places fund.

SECTION 13. PROJECT SCOPE--EXPENDITURES--REVERSION.--

A. If an appropriation for a project authorized in the 2014 Capital Projects General Obligation Bond 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.

B. The state agencies and state institutions to which money has been appropriated in the 2014 Capital Projects General Obligation Bond Act shall be responsible for monitoring the projects funded in that act to ensure compliance with the constitution and laws of New Mexico and shall cause to be reverted any unexpended or unencumbered balance remaining at the earlier of the third full fiscal year after issuance of the bonds or the termination or completion of the specific project. Reverted funds shall be deposited in the debt service fund established by the state treasurer for the purpose of paying the principal of and interest on the state's general obligation bonds.

SECTION 14. SEVERABILITY.--If any part or application of the 2014 Capital Projects General Obligation Bond Act is held invalid, the remainder or its application to other situations or persons shall not be affected.

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

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