44th legislature - STATE OF NEW MEXICO - first session, 1999

RELATING TO THE PUBLIC, PEACE, HEALTH, SAFETY AND WELFARE; AUTHORIZING THE ISSUANCE OF SEVERANCE TAX BONDS FOR PUBLIC SCHOOL CAPITAL OUTLAY; MAKING AN APPROPRIATION.

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

Section 1. SEVERANCE TAX BONDS--AUTHORIZATION-- APPROPRIATION OF PROCEEDS TO THE PUBLIC SCHOOL CAPITAL OUTLAY FUND.--

A. The state board of finance may issue and sell severance tax bonds in compliance with the Severance Tax Bonding Act in an amount not to exceed seventy-five million dollars ($75,000,000) for purposes specified in this section. The state board of finance shall schedule the issuance and sale of the bonds in the most expeditious and economical manner possible upon a finding by the board that the projects have been developed sufficiently to justify the issuance and that the projects can proceed to contract within a reasonable time. The state board of finance shall further take the appropriate steps necessary to comply with the Internal Revenue Code of 1986, as amended. Proceeds from the sale of the bonds are appropriated to the public school capital outlay fund for allocation to public schools for critical capital outlay projects pursuant to the Public School Capital Outlay Act.

B. Prior to June 1, 1999, the secretary of finance and administration shall calculate, pursuant to the Severance Tax Bonding Act, the difference between the total outstanding capacity on May 1, 1999 for severance tax bonds not yet issued and the amount authorized by law but not yet issued as of May 1, 1999. The secretary shall notify the public school capital outlay council of the amount calculated. The council shall certify to the state board of finance when the proceeds from severance tax bonds, in a specific amount no greater than the amount calculated by the secretary, are needed for capital outlay projects pursuant to the Public School Capital Outlay Act.

C. If the public school capital outlay council has not certified the need for the issuance of the bonds by the end of fiscal year 2000, the authorization provided in this section is void.

D. Any unexpended or unencumbered balance remaining from the proceeds of severance tax bonds issued pursuant to this section at the end of fiscal year 2003 shall be transferred to the severance tax bonding fund.