0001| SENATE FINANCE COMMITTEE SUBSTITUTE FOR
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0002| SENATE BILL 382
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0003| 43rd legislature - STATE OF NEW MEXICO - second session, 1998
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0004|
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0005|
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0006|
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0007|
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0008|
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0009|
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0010|
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0011| AN ACT
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0012| RELATING TO THE PUBLIC PEACE, HEALTH, SAFETY AND WELFARE;
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0013| AUTHORIZING THE ISSUANCE OF NEW MEXICO FINANCE AUTHORITY
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0014| REVENUE BONDS FOR THE CRITICAL CAPITAL OUTLAY NEEDS OF PUBLIC
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0015| SCHOOLS WITH A SIGNIFICANT MAJORITY OF NATIVE AMERICAN
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0016| STUDENTS; PROVIDING POWERS AND DUTIES; DISTRIBUTING A PORTION
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0017| OF THE GROSS RECEIPTS TAX TO A SPECIAL FUND AND PLEDGING THE
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0018| REVENUES FOR THE PAYMENT OF BONDS; MAKING AN APPROPRIATION.
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0019|
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0020| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0021| Section 1. A new section of the Tax Administration Act
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0022| is enacted to read:
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0023| "[NEW MATERIAL] DISTRIBUTION--GROSS RECEIPTS TAX--
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0024| INDIAN SCHOOL BONDING FUND.--A distribution pursuant to
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0025| Section 7-1-6.1 NMSA 1978 shall be made to the Indian school
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- 1 -0001| bonding fund in the New Mexico finance authority in the amount
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0002| of four hundred sixteen thousand six hundred sixty-seven
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0003| dollars ($416,667) of the net receipts attributable to the
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0004| gross receipts tax imposed pursuant to the Gross Receipts and
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0005| Compensating Tax Act."
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0006| Section 2. A new section of the Public School Capital
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0007| Outlay Act is enacted to read:
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0008| "[NEW MATERIAL] CRITICAL CAPITAL OUTLAY NEEDS OF INDIAN
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0009| PUBLIC SCHOOLS--DISTRIBUTION.--
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0010| A. Upon a determination by the New Mexico finance
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0011| authority that an amount of money is available, the council
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0012| shall approve applications for grant assistance for Indian
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0013| public schools when the council:
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0014| (1) determines the critical capital outlay
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0015| needs of Indian public schools;
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0016| (2) determines that the school district has
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0017| used its resources in a prudent manner; and
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0018| (3) has sought and received information and
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0019| advice from representatives of Indian nations, tribes and
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0020| pueblos in New Mexico regarding the critical capital outlay
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0021| needs of Indian public schools.
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0022| B. The council shall allocate grants for capital
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0023| outlay projects that meet the project evaluation criteria of
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0024| the council pursuant to the Public School Capital Outlay Act;
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0025| provided that the evaluation criteria shall not include tax
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- 2 -0001| effort by the school district.
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0002| C. Upon a determination of the capital outlay grants
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0003| pursuant to Subsection A of this section, the department of
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0004| education shall certify to the New Mexico finance authority the
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0005| need for the issuance of the bonds authorized pursuant to Section
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0006| 3 of this act.
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0007| D. As used in this section, "Indian public school"
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0008| means a public school with a school membership of at least
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0009| seventy percent Native Americans."
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0010| Section 3. A new section of the New Mexico Finance
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0011| Authority Act is enacted to read:
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0012| "[NEW MATERIAL] AUTHORIZATION OF NEW MEXICO FINANCE
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0013| AUTHORITY REVENUE BONDS--INDIAN PUBLIC SCHOOL CAPITAL OUTLAY
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0014| PROJECTS--INDIAN SCHOOL BONDING FUND--APPROPRIATION.--
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0015| A. The "Indian school bonding fund" is created within
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0016| the authority. The fund shall be administered by the authority
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0017| as a separate account, and the authority may create such
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0018| subaccounts as the authority deems necessary to carry out the
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0019| purposes of the fund. The authority is authorized to establish
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0020| procedures as required to administer the fund in accordance with
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0021| the New Mexico Finance Authority Act.
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0022| B. The Indian school bonding fund shall consist of
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0023| gross receipts tax revenues distributed to the fund pursuant to
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0024| the Tax Administration Act.
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0025| C. The New Mexico finance authority shall report
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- 3 -0001| annually to the public school capital outlay council the amount
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0002| of money available for Indian public school capital outlay
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0003| projects. The authority is authorized to issue and sell revenue
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0004| bonds in compliance with the New Mexico Finance Authority Act in
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0005| installments or at one time, that in the aggregate do not exceed
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0006| an outstanding principal amount at any one time of forty million
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0007| dollars ($40,000,000), for Indian public school capital outlay
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0008| projects when the state department of public education certifies
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0009| the need for issuance of the bonds. The net proceeds from the
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0010| sale of the bonds are appropriated to the state department of
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0011| public education for distribution to Indian public schools in
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0012| amounts and for purposes determined by the public school capital
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0013| outlay council pursuant to the Public School Capital Outlay Act.
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0014| D. Money in the Indian school bonding fund not needed
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0015| for immediate disbursement, including any money held in reserve,
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0016| may be deposited with the state treasurer for short-term
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0017| investment pursuant to Section 6-10-10.1 NMSA 1978 or may be
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0018| invested in direct and general obligations of or obligations
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0019| fully and unconditionally guaranteed by the United States,
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0020| obligations issued by agencies of the United States, obligations
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0021| of this state or any political subdivision of the state,
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0022| interest-bearing time deposits, commercial paper issued by
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0023| corporations organized and operating in the United States and
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0024| rated "prime" quality by a national rating service or as
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0025| otherwise provided by the trust indenture or bond resolution, if
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- 4 -0001| money in the fund is pledged for or to secure payment of bonds
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0002| issued by the authority.
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0003| E. The authority shall establish fiscal controls and
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0004| accounting procedures that are sufficient to ensure proper
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0005| accounting for Indian school bonding fund payments, disbursements
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0006| and balances.
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0007| F. At the end of any fiscal year, after all debt
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0008| service charges, establishment or replenishment of reserves and
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0009| other costs of or related to all outstanding revenue bonds, notes
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0010| or other obligations payable from the Indian school bonding fund
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0011| are satisfied, the balances remaining in the fund shall be
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0012| available for grant assistance for critical capital outlay needs
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0013| of Indian public schools pursuant to the provisions of the Public
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0014| School Capital Outlay Act.
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0015| G. The authority shall pledge irrevocably all of the
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0016| gross receipts tax revenues distributed to the Indian school
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0017| bonding fund pursuant to the Tax Administration Act for payment
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0018| of the principal, interest and other expenses or obligations
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0019| related to the revenue bonds issued by the authority for Indian
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0020| public school capital outlay projects.
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0021| H. A law that imposes the gross receipts tax or that
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0022| affects the gross receipts tax or that requires distribution of a
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0023| portion of the gross receipts tax to the authority for payment of
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0024| revenue bonds for Indian public school capital outlay, or a law
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0025| supplemental to or otherwise pertaining to the tax, shall not be
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- 5 -0001| amended, repealed or otherwise directly or indirectly modified so
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0002| as to impair outstanding revenue bonds that may be secured by a
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0003| pledge of the distributions to the authority, unless the revenue
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0004| bonds have been discharged in full or provisions have been made
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0005| for a full discharge.
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0006| I. The revenue bonds issued by the authority pursuant
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0007| to this section shall constitute a special limited obligation of
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0008| the authority, payable solely from the revenues distributed to
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0009| the authority for deposit in a special bond fund or account of
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0010| the authority for payment of bonds for Indian public school
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0011| capital outlay, and shall never constitute or be contrued as a
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0012| debt or general obligation of the state or any political
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0013| subdivision of the state under the laws or the constitution of
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0014| New Mexico."
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0015| Section 4. EFFECTIVE DATE.--The effective date of the
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0016| provisions of Section 1 of this act is July 1, 1998.
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0017|
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