HOUSE BILL 535
46th legislature - STATE OF NEW MEXICO - second session, 2004
INTRODUCED BY
Daniel P. Silva
AN ACT
RELATING TO PUBLIC WORKS; WITHHOLDING CERTAIN AMOUNTS FROM STATE CONTRACTS FOR PUBLIC WORKS PROJECTS FOR THE PURPOSE OF FINANCING THE CONSTRUCTION OF A BUILDING FOR THE ENGINEERING SCHOOL AT THE UNIVERSITY OF NEW MEXICO; AUTHORIZING THE NEW MEXICO FINANCE AUTHORITY TO ISSUE BONDS FOR THE PROJECT; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. CONTRACTS FOR PUBLIC WORKS--WITHHOLDING FOR FINANCING ENGINEERING SCHOOL--BONDS AUTHORIZED--APPROPRIATION OF PROCEEDS.--
A. As used in this section:
(1) "authority" means the New Mexico finance authority;
(2) "fund" means the engineering school bonding fund;
(3) "public works project" means a project, with a total state appropriation of more than one hundred thousand dollars ($100,000) for the construction, reconstruction, repair, alteration, demolition, installation or extension of a building, highway or any other improvement on real property owned by the state or any of its political subdivisions or institutions; and
(4) "state appropriation" means the amount of money appropriated by the legislature for a public works project, including direct appropriations from the general fund or another fund of the state, the use of severance tax bond proceeds, the use of state general obligation bond proceeds and the use of proceeds from bonds or loans issued or made by the New Mexico finance authority.
B. When entering into a contract for a public works project, the state agency, political subdivision or institution entering into the contract shall set aside and transfer an amount equal to two-tenths percent of the state appropriation for the project to the New Mexico finance authority for deposit into the engineering school bonding fund.
C. The "engineering school bonding fund" is created as a special fund within the authority. The fund shall be administered by the authority as a special account. The fund shall consist of money transferred to the fund pursuant to the provisions of Subsection B of this section. Earnings of the fund shall be credited to the fund. Balances in the fund at the end of a fiscal year shall remain in the fund, except as provided in this section.
D. Money in the fund shall be pledged irrevocably by the authority for the payment of principal and interest on all bonds issued pursuant to this section. Money in the fund is appropriated to the authority for the purpose of paying debt service, including redemption premiums, on the bonds and the expenses incurred in the issuance, payment and administration of the bonds.
E. Upon payment or defeasance of all principal, interest and other expenses or obligations related to the engineering school revenue bonds, the authority shall certify to the board of regents of the university of New Mexico and the department of finance and administration that all obligations for the bonds have been discharged, and the department of finance and administration shall direct that distributions to the fund pursuant to Subsection B of this section cease.
F. The engineering school revenue bonds issued pursuant to this section shall be payable solely from the fund or such other special funds as may be provided by law and do not create an obligation or indebtedness of the state within the meaning of any constitutional provision. No breach of any contractual obligation incurred pursuant to this section shall impose a pecuniary liability or a charge upon the general credit or taxing power of the state, and the bonds are not general obligations for which the state's full faith and credit is pledged.
G. The state does hereby pledge that the fund shall be used only for the purposes specified in this section and pledged first to pay the debt service on the engineering school revenue bonds issued pursuant to Subsection H of this section. The state further pledges that Subsection B of this section, authorizing the distribution to the fund or any law authorizing expenditures from the fund, shall not be amended or repealed or otherwise modified so as to impair the bonds to which the fund is dedicated as provided in this section.
H. The authority is authorized to issue and sell revenue bonds, known as "engineering school revenue bonds", in a total amount not to exceed thirty million two hundred thousand dollars ($30,200,000), payable solely from the fund, in compliance with this section and the New Mexico Finance Authority Act when the board of regents of the university of New Mexico has certified the need for the bonds.
I. The net proceeds from the engineering school revenue bonds are appropriated to the board of regents of the university of New Mexico for the purpose of designing and constructing the centennial engineering center at the university.
J. The authority shall issue the engineering school revenue bonds pursuant to the provisions of the New Mexico Finance Authority Act, except as otherwise provided in this section.
K. This section and the New Mexico Finance Authority Act shall, without reference to any other act of the legislature, be full authority for the issuance and sale of engineering school revenue bonds, which bonds shall have all the qualities of investment securities under the Uniform Commercial Code and shall not be invalid for any irregularity or defect or be contestable in the hands of bona fide purchasers or holders thereof for value.
L. Engineering school revenue bonds are legal investments for any person or board charged with the investment of any public funds and are acceptable as security for any deposit of public money.
M. All engineering school revenue bonds shall be exempt from taxation by the state or any of its political subdivisions.
Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2004.