HOUSE BILL 885
47th legislature - STATE OF NEW MEXICO - first session, 2005
INTRODUCED BY
Edward C. Sandoval
AN ACT
RELATING TO CAPITAL EXPENDITURES; AUTHORIZING THE ISSUANCE OF SEVERANCE TAX BONDS; AUTHORIZING EXPENDITURES FROM CERTAIN FUNDS AND BALANCES; REAUTHORIZING BALANCES; CHANGING THE PURPOSE OF SEVERANCE TAX BOND AND GENERAL FUND APPROPRIATIONS; CLARIFYING CONDITIONS FOR THE ISSUANCE OF BONDS; ESTABLISHING CONDITIONS FOR THE EXPENDITURE OF SEVERANCE TAX BOND PROCEEDS; ESTABLISHING CONDITIONS FOR THE REVERSION OF UNEXPENDED BALANCES; MAKING APPROPRIATIONS; DECLARING AN EMERGENCY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. SEVERANCE TAX BONDS--AUTHORIZATIONS--APPROPRIATION OF PROCEEDS.--
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 the total of the amounts authorized for purposes specified in this act. 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 project has been developed sufficiently to justify the issuance and that the project 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 for the purposes specified in this act.
B. The agencies named in this act shall certify to the state board of finance when the money from the proceeds of the severance tax bonds authorized in this section is needed for the purposes specified in the applicable section of this act. If an agency has not certified the need for the issuance of the bonds for a particular project, including projects that have been reauthorized, by the end of fiscal year 2007, the authorization for that project is void.
C. Before an agency may certify for the issuance of severance tax bonds, the project must be developed sufficiently so that the agency reasonably expects to:
(1) incur within six months after the applicable bonds have been issued a substantial binding obligation to a third party to expend at least five percent of the bond proceeds for the project; and
(2) spend at least eighty-five percent of the bond proceeds within three years after the applicable bonds have been issued.
D. Except as otherwise provided in this section or another section of this act, the unexpended balance from the proceeds of severance tax bonds issued for a project, including projects that have been reauthorized, shall revert to the severance tax bonding fund as follows:
(1) for projects for which severance tax bonds were issued to match federal grants, six months after completion of the project;
(2) for projects for which severance tax bonds were issued to purchase vehicles, heavy equipment, educational technology or other equipment or furniture that is not related to a more inclusive construction or renovation project, at the end of the fiscal year following the fiscal year in which the severance tax bonds were issued for the purchase;
(3) for projects for which severance tax bonds were issued to purchase emergency vehicles or other vehicles that require special equipment, at the end of the fiscal year two years following the fiscal year in which the severance tax bonds were issued for the purchase; and
(4) for all other projects for which severance tax bonds were issued, within six months of completion of the project, but no later than the end of fiscal year 2010.
E. Except for appropriations to the capital program fund, money from severance tax bond proceeds provided pursuant to this act shall not be used to pay indirect project costs.
F. For the purpose of this section, "unexpended balance" means the remainder of an appropriation after reserving for unpaid costs and expenses covered by binding written obligations to third parties.
Section 2. GENERAL FUND AND OTHER FUND APPROPRIATIONS--LIMITATIONS--REVERSIONS.--
A. Except as otherwise provided in this section or another section of this act, the unexpended balance of an appropriation made in this act from the general fund or other state fund, including changes to prior appropriations, shall revert to the originating fund as follows:
(1) for projects for which appropriations were made to match federal grants, six months after completion of the project;
(2) for projects for which appropriations were made to purchase vehicles, heavy equipment, educational technology or equipment or furniture that is not related to a more inclusive construction or renovation project, at the end of the fiscal year following the fiscal year in which the appropriation was made for the purchase;
(3) for projects for which appropriations were made to purchase emergency vehicles or other vehicles that require special equipment, at the end of the fiscal year two years following the fiscal year in which the severance tax bonds were issued for the purchase; and
(4) for all other projects for which appropriations were made, within six months of completion of the project, but no later than the end of fiscal year 2010.
B. Except for appropriations to the capital program fund, money from appropriations made in this act shall not be used to pay indirect project costs.
C. For the purpose of this section, "unexpended balance" means the remainder of an appropriation after reserving for unpaid costs and expenses covered by binding written obligations to third parties.
Section 3. ARMORY PROJECTS STATEWIDE--STATE ARMORY BOARD--SEVERANCE TAX BONDS.--Pursuant to the provisions of Section 1 of this act, upon certification by the state armory board that the need exists for the issuance of the bonds, one million dollars ($1,000,000) is appropriated to the state armory board for improvements to armories statewide.
Section 4. SOLID WASTE PROJECT--DEPARTMENT OF ENVIRONMENT--SEVERANCE TAX BONDS.--Pursuant to the provisions of Section 1 of this act, upon certification by the department of environment that the need exists for the issuance of the bonds, sixty-eight thousand dollars ($68,000) is appropriated to the department of environment to purchase solid waste transport trucks and trailers for the northwest New Mexico regional solid waste authority in Cibola and McKinley counties.
Section 5. TRANSPORTATION PROJECTS--DEPARTMENT OF TRANSPORTATION--SEVERANCE TAX BONDS.--Pursuant to the provisions of Section 1 of this act, upon certification by the department of transportation that the need exists for the issuance of the bonds, the following amounts are appropriated to the department of transportation for the following purposes:
A. two hundred thousand dollars ($200,000) for improvements to roads in Lea county;
B. two hundred thousand dollars ($200,000) for improvements to Nizhoni and Mendoza roads in McKinley county; and
C. two hundred thousand dollars ($200,000) for improvements to roads in Logan in Quay county.
Section 6. HIGHER EDUCATION PROJECTS--COMMISSION ON HIGHER EDUCATION--SEVERANCE TAX BONDS.--Pursuant to the provisions of Section 1 of this act, upon certification by the commission on higher education that the need exists for the issuance of the bonds, the following amounts are appropriated to the commission on higher education for the following purposes:
A. thirty million dollars ($30,000,000) for infrastructure renovation and expansion at institutions of higher learning and constitutional special schools statewide;
B. ten million dollars ($10,000,000) for information technology at institutions of higher learning statewide; and
C. five million dollars ($5,000,000) for improvements to comply with health and safety requirements and the Americans with Disabilities Act of 1990 at institutions of higher learning and constitutional special schools statewide.
Section 7. HIGHER EDUCATIONAL INSTITUTION PROJECT--NORTHERN NEW MEXICO STATE SCHOOL--GENERAL FUND.--One million two hundred thousand dollars ($1,200,000) is appropriated from the general fund to the board of regents of northern New Mexico state school for expenditure in fiscal years 2005 through 2010, unless otherwise provided in Section 2 of this act, to acquire land for the Espanola campus in Rio Arriba county.
Section 8. MINERS' COLFAX MEDICAL CENTER--MINERS' TRUST FUND.--Five million dollars ($5,000,000) is appropriated from the miners' trust fund to the board of trustees of miners' Colfax medical center for expenditure in fiscal years 2005 through 2010 for renovations and equipment at miners' Colfax medical center in Raton in Colfax county. Any unexpended balance remaining at the end of fiscal year 2010 shall revert to the miners' trust fund.
Section 9. ESPANOLA REREDOS AND RETABLOS PROJECT--EXPAND PURPOSE--GENERAL FUND.--The local government division project in Subsection 290 of Section 34 of Chapter 126 of Laws 2004 for phase 2 of the reredos and retablos project located in the San Gabriel mission on the plaza de Espanola in Rio Arriba county may include the purchase of art.
Section 10. OTERO COUNTY JUVENILE DETENTION FACILITY--CHANGE TO INMATE HOLDING FACILITY--SEVERANCE TAX BONDS.--The unexpended balance of the appropriation to the local government division in Subsection 261 of Section 22 of Chapter 429 of Laws 2003 for a juvenile detention facility in Otero county shall not be expended for the original purpose but is changed to plan, design, construct, equip and furnish an inmate holding facility in that county.
Section 11. PROJECT SCOPE--EXPENDITURES.--If an appropriation for a project authorized in this act is not sufficient to complete all the purposes specified, the appropriation may be expended for any portion of the purposes specified in the appropriation. Expenditures shall not be made for purposes other than those specified in the appropriation.
Section 12. ART IN PUBLIC PLACES.--Pursuant to Section 13-4A-4 NMSA 1978 and where applicable, the appropriations authorized in this act include one percent for the art in public places fund.
Section 13. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.
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