0001| SENATE FINANCE COMMITTEE SUBSTITUTE FOR | 0002| SENATE BILL 382 | 0003| 43rd legislature - STATE OF NEW MEXICO - second session, 1998 | 0004| | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| | 0011| AN ACT | 0012| RELATING TO THE PUBLIC PEACE, HEALTH, SAFETY AND WELFARE; | 0013| AUTHORIZING THE ISSUANCE OF NEW MEXICO FINANCE AUTHORITY | 0014| REVENUE BONDS FOR THE CRITICAL CAPITAL OUTLAY NEEDS OF PUBLIC | 0015| SCHOOLS WITH A SIGNIFICANT MAJORITY OF NATIVE AMERICAN | 0016| STUDENTS; PROVIDING POWERS AND DUTIES; DISTRIBUTING A PORTION | 0017| OF THE GROSS RECEIPTS TAX TO A SPECIAL FUND AND PLEDGING THE | 0018| REVENUES FOR THE PAYMENT OF BONDS; MAKING AN APPROPRIATION. | 0019| | 0020| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0021| Section 1. A new section of the Tax Administration Act | 0022| is enacted to read: | 0023| "[NEW MATERIAL] DISTRIBUTION--GROSS RECEIPTS TAX-- | 0024| INDIAN SCHOOL BONDING FUND.--A distribution pursuant to | 0025| Section 7-1-6.1 NMSA 1978 shall be made to the Indian school |
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0001| bonding fund in the New Mexico finance authority in the amount | 0002| of four hundred sixteen thousand six hundred sixty-seven | 0003| dollars ($416,667) of the net receipts attributable to the | 0004| gross receipts tax imposed pursuant to the Gross Receipts and | 0005| Compensating Tax Act." | 0006| Section 2. A new section of the Public School Capital | 0007| Outlay Act is enacted to read: | 0008| "[NEW MATERIAL] CRITICAL CAPITAL OUTLAY NEEDS OF INDIAN | 0009| PUBLIC SCHOOLS--DISTRIBUTION.-- | 0010| A. Upon a determination by the New Mexico finance | 0011| authority that an amount of money is available, the council | 0012| shall approve applications for grant assistance for Indian | 0013| public schools when the council: | 0014| (1) determines the critical capital outlay | 0015| needs of Indian public schools; | 0016| (2) determines that the school district has | 0017| used its resources in a prudent manner; and | 0018| (3) has sought and received information and | 0019| advice from representatives of Indian nations, tribes and | 0020| pueblos in New Mexico regarding the critical capital outlay | 0021| needs of Indian public schools. | 0022| B. The council shall allocate grants for capital | 0023| outlay projects that meet the project evaluation criteria of | 0024| the council pursuant to the Public School Capital Outlay Act; | 0025| provided that the evaluation criteria shall not include tax |
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0001| effort by the school district. | 0002| C. Upon a determination of the capital outlay grants | 0003| pursuant to Subsection A of this section, the department of | 0004| education shall certify to the New Mexico finance authority the | 0005| need for the issuance of the bonds authorized pursuant to Section | 0006| 3 of this act. | 0007| D. As used in this section, "Indian public school" | 0008| means a public school with a school membership of at least | 0009| seventy percent Native Americans." | 0010| Section 3. A new section of the New Mexico Finance | 0011| Authority Act is enacted to read: | 0012| "[NEW MATERIAL] AUTHORIZATION OF NEW MEXICO FINANCE | 0013| AUTHORITY REVENUE BONDS--INDIAN PUBLIC SCHOOL CAPITAL OUTLAY | 0014| PROJECTS--INDIAN SCHOOL BONDING FUND--APPROPRIATION.-- | 0015| A. The "Indian school bonding fund" is created within | 0016| the authority. The fund shall be administered by the authority | 0017| as a separate account, and the authority may create such | 0018| subaccounts as the authority deems necessary to carry out the | 0019| purposes of the fund. The authority is authorized to establish | 0020| procedures as required to administer the fund in accordance with | 0021| the New Mexico Finance Authority Act. | 0022| B. The Indian school bonding fund shall consist of | 0023| gross receipts tax revenues distributed to the fund pursuant to | 0024| the Tax Administration Act. | 0025| C. The New Mexico finance authority shall report |
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0001| annually to the public school capital outlay council the amount | 0002| of money available for Indian public school capital outlay | 0003| projects. The authority is authorized to issue and sell revenue | 0004| bonds in compliance with the New Mexico Finance Authority Act in | 0005| installments or at one time, that in the aggregate do not exceed | 0006| an outstanding principal amount at any one time of forty million | 0007| dollars ($40,000,000), for Indian public school capital outlay | 0008| projects when the state department of public education certifies | 0009| the need for issuance of the bonds. The net proceeds from the | 0010| sale of the bonds are appropriated to the state department of | 0011| public education for distribution to Indian public schools in | 0012| amounts and for purposes determined by the public school capital | 0013| outlay council pursuant to the Public School Capital Outlay Act. | 0014| D. Money in the Indian school bonding fund not needed | 0015| for immediate disbursement, including any money held in reserve, | 0016| may be deposited with the state treasurer for short-term | 0017| investment pursuant to Section 6-10-10.1 NMSA 1978 or may be | 0018| invested in direct and general obligations of or obligations | 0019| fully and unconditionally guaranteed by the United States, | 0020| obligations issued by agencies of the United States, obligations | 0021| of this state or any political subdivision of the state, | 0022| interest-bearing time deposits, commercial paper issued by | 0023| corporations organized and operating in the United States and | 0024| rated "prime" quality by a national rating service or as | 0025| otherwise provided by the trust indenture or bond resolution, if |
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0001| money in the fund is pledged for or to secure payment of bonds | 0002| issued by the authority. | 0003| E. The authority shall establish fiscal controls and | 0004| accounting procedures that are sufficient to ensure proper | 0005| accounting for Indian school bonding fund payments, disbursements | 0006| and balances. | 0007| F. At the end of any fiscal year, after all debt | 0008| service charges, establishment or replenishment of reserves and | 0009| other costs of or related to all outstanding revenue bonds, notes | 0010| or other obligations payable from the Indian school bonding fund | 0011| are satisfied, the balances remaining in the fund shall be | 0012| available for grant assistance for critical capital outlay needs | 0013| of Indian public schools pursuant to the provisions of the Public | 0014| School Capital Outlay Act. | 0015| G. The authority shall pledge irrevocably all of the | 0016| gross receipts tax revenues distributed to the Indian school | 0017| bonding fund pursuant to the Tax Administration Act for payment | 0018| of the principal, interest and other expenses or obligations | 0019| related to the revenue bonds issued by the authority for Indian | 0020| public school capital outlay projects. | 0021| H. A law that imposes the gross receipts tax or that | 0022| affects the gross receipts tax or that requires distribution of a | 0023| portion of the gross receipts tax to the authority for payment of | 0024| revenue bonds for Indian public school capital outlay, or a law | 0025| supplemental to or otherwise pertaining to the tax, shall not be |
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0001| amended, repealed or otherwise directly or indirectly modified so | 0002| as to impair outstanding revenue bonds that may be secured by a | 0003| pledge of the distributions to the authority, unless the revenue | 0004| bonds have been discharged in full or provisions have been made | 0005| for a full discharge. | 0006| I. The revenue bonds issued by the authority pursuant | 0007| to this section shall constitute a special limited obligation of | 0008| the authority, payable solely from the revenues distributed to | 0009| the authority for deposit in a special bond fund or account of | 0010| the authority for payment of bonds for Indian public school | 0011| capital outlay, and shall never constitute or be contrued as a | 0012| debt or general obligation of the state or any political | 0013| subdivision of the state under the laws or the constitution of | 0014| New Mexico." | 0015| Section 4. EFFECTIVE DATE.--The effective date of the | 0016| provisions of Section 1 of this act is July 1, 1998. | 0017|  |