SENATE BILL 435

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

INTRODUCED BY

Pete Campos

AN ACT

RELATING TO PUBLIC FINANCE; AUTHORIZING THE ISSUANCE OF REVENUE BONDS SECURED BY CIGARETTE TAX DISTRIBUTIONS FOR DEPARTMENT OF HEALTH FACILITIES; MAKING AN APPROPRIATION.

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

     SECTION 1. Section 6-21-6.10 NMSA 1978 (being Laws 2005, Chapter 58, Section 1) is amended to read:

     "6-21-6.10. NEW MEXICO FINANCE AUTHORITY REVENUE BONDS--PURPOSE--APPROPRIATION.--

          A. The [New Mexico finance] authority may issue and sell revenue bonds in compliance with the New Mexico Finance Authority Act in an amount not exceeding two million five hundred thousand dollars ($2,500,000) for the behavioral health capital fund to make loans to eligible entities for capital projects pursuant to the Behavioral Health Capital Funding Act and the following provisions:

                [B.] (1) the net proceeds from the sale of the bonds are appropriated to the behavioral health capital fund for the purposes described in [Subsection A of] this [section] subsection;

                [C.] (2) the cigarette tax proceeds distributed to the [New Mexico finance] authority pursuant to Subsection D of Section 7-1-6.11 NMSA 1978 are appropriated to the authority to be pledged irrevocably for the payment of the principal, interest, premiums and related expenses on the bonds and for payment of the expenses incurred by the authority related to the issuance, sale and administration of the bonds; and

                [D.] (3) the cigarette tax proceeds appropriated and distributed to the authority pursuant to Subsection D of Section 7-1-6.11 NMSA 1978 shall be deposited in a separate fund or account of the authority. Money in the separate fund or account in excess of the amount necessary for payment of principal and interest on the bonds and necessary reserves or sinking funds may be transferred to any other account of the authority and used for purposes of the New Mexico Finance Authority Act.

          B. The authority may issue and sell revenue bonds

in compliance with the New Mexico Finance Authority Act in an

amount specifically authorized by law for land acquisition and the planning, designing, construction and equipping of

department of health facilities or improvements to those

facilities when the secretary of health certifies that those

projects are a priority and to pay the costs associated with

issuing the bonds pursuant to the following provisions:

                (1) the net proceeds from the sale of the

bonds are appropriated to the facilities management division of

the general services department for the projects certified by

the secretary of health;

                (2) the cigarette tax proceeds distributed to

the authority pursuant to Subsection F of Section 7-1-6.11 NMSA

1978 are appropriated to the authority to be pledged

irrevocably for the payment of the principal, interest,

premiums and related expenses on the bonds and for payment of

the expenses incurred by the authority related to the issuance,

sale and administration of the bonds; and

                (3) the cigarette tax proceeds appropriated

and distributed to the authority pursuant to Subsection F of

Section 7-1-6.11 NMSA 1978 shall be deposited in a separate

fund or account of the authority.

          [E.] C. Any law authorizing the imposition, collection or distribution of the cigarette tax or that affects the cigarette tax shall not be amended, repealed or otherwise directly or indirectly modified so as to impair or reduce debt service coverage for any outstanding revenue bonds that may be secured by a pledge of those cigarette tax revenues, unless the revenue bonds have been discharged in full or provisions have been made for a full discharge.

          D. In addition to the provisions of Paragraph (2) of Subsection B of this section, the authority may secure the

revenue bonds issued pursuant to this section by a pledge of

money in the public project revolving fund with a lien

priority on the money in the public project revolving fund as

determined by the authority."

     SECTION 2. A new section of the New Mexico Finance

Authority Act is enacted to read:

     "[NEW MATERIAL] AUTHORIZATION FOR REVENUE BONDS--

DEPARTMENT OF HEALTH FACILITIES.--Pursuant to Subsection B of

Section 6-21-6.10 NMSA 1978 and the New Mexico Finance

Authority Act, the authority may issue and sell revenue bonds, in addition to the amount allowed in Subsection A of Section 6-21-6.10 NMSA 1978, in an amount not exceeding five million dollars ($5,000,000), plus an amount equal to the costs of issuing the revenue bonds, for projects that the secretary of health has certified are a priority."

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