SENATE BILL 150

52nd legislature - STATE OF NEW MEXICO - first session, 2015

INTRODUCED BY

Mimi Stewart

AN ACT

RELATING TO PUBLIC FINANCE; PROVIDING FOR INCREASED DISTRIBUTIONS TO THE SEVERANCE TAX PERMANENT FUND BY PHASING IN REDUCTIONS TO SEVERANCE TAX BONDING CAPACITY AND SUPPLEMENTAL SEVERANCE TAX BONDING CAPACITY.

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

     SECTION 1. 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 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] the following percentages of the annual deposits into the severance tax bonding fund, as determined by the lesser of the deposits during the preceding fiscal year or the deposits during the current fiscal year as estimated by the division:

                (1) for fiscal year 2016, forty-nine and one-tenth percent;

                (2) for fiscal year 2017, forty-eight and two-tenths percent;

                (3) for fiscal year 2018, forty-seven and three-tenths percent; and

                (4) for fiscal year 2019 and subsequent fiscal years, forty-six and four-tenths percent.

          C. The state board of finance shall issue no supplemental 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] the following percentages of the annual deposits into the severance tax bonding fund, as determined by the lesser of the deposits during the preceding fiscal year or the deposits during the current fiscal year as estimated by the division:

                (1) for fiscal year 2016, sixty-one and six-tenths percent;

                (2) for fiscal year 2017, sixty and seven-tenths percent;

                (3) for fiscal year 2018, fifty-nine and eight-tenths percent; and

                (4) for fiscal year 2019 and subsequent fiscal years, fifty-eight and nine-tenths percent.

          D. Except as otherwise specifically provided by law, the state board of finance may issue supplemental 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 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 severance tax bonds does not exceed [ninety-five percent] the following percentages of the lesser of the deposits into the severance tax bonding fund during the preceding fiscal year or the deposits into the severance tax bonding fund during the current fiscal year as estimated by the division:

                (1) for fiscal year 2016, ninety-four and one-tenth percent;

                (2) for fiscal year 2017, ninety-three and two-tenths percent;

                (3) for fiscal year 2018, ninety-two and three-tenths percent;

                (4) for fiscal year 2019, ninety and four-tenths percent;

                (5) for fiscal year 2020, eighty-nine and four-tenths percent;

                (6) for fiscal year 2021, eighty-eight and four-tenths percent;

                (7) for fiscal year 2022, eighty-seven and four-tenths percent; and

                (8) for fiscal year 2023 and subsequent fiscal years, eighty-six and four-tenths percent.

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

          F. For the purposes of this section, "division" means the board of finance division of the department of finance and administration."

     SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2015.