2005 Senate Bill text for SB1035

SENATE BILL 1035

47th legislature - STATE OF NEW MEXICO - first session, 2005

INTRODUCED BY

Stuart Ingle

AN ACT

RELATING TO EXPENDITURE OF PUBLIC MONEY; PROVIDING FOR CAPITAL EXPENDITURES; AUTHORIZING THE ISSUANCE OF SEVERANCE TAX BONDS; AMENDING THE SEVERANCE TAX BONDING ACT; CREATING FUNDS TO BE ADMINISTERED BY THE LEGISLATIVE COUNCIL SERVICE; AUTHORIZING CONTRACTS BETWEEN THE LEGISLATIVE COUNCIL SERVICE AND CERTAIN STATE AGENCIES; MAKING APPROPRIATIONS; DECLARING AN EMERGENCY.

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

Section 1. A new Section 2-20-1 NMSA 1978 is enacted to read:

"2-20-1. [NEW MATERIAL] LEGISLATIVE CAPITAL FUNDS--CREATED--DISBURSEMENTS.--

A. The "legislative bond proceeds capital fund" is created in the state treasury. The fund shall be administered by the legislative council service and shall consist of severance tax bond proceeds appropriated to the fund. Earnings from investment of the fund shall be credited to the fund. Money in the fund is subject to appropriation by the legislature for disbursement for capital projects pursuant to the provisions of this section. Except as otherwise provided, any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert. Disbursements from the fund shall be made only pursuant to the provisions of this section and upon warrants drawn by the secretary of finance and administration pursuant to vouchers signed by the director of the legislative council service.

B. The "legislative appropriation capital fund" is created in the state treasury. The fund shall be administered by the legislative council service and shall consist of money appropriated and transferred to the fund. Earnings from investment of the fund shall be credited to the fund. Money in the fund is subject to appropriation by the legislature for disbursement for capital projects pursuant to the provisions of this section. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert. Disbursements from the fund shall be made only pursuant to the provisions of this section and upon warrants drawn by the secretary of finance and administration pursuant to vouchers signed by the director of the legislative council service.

C. Upon an appropriation from the legislative bond proceeds capital fund or the legislative appropriation capital fund to a state agency, the director of the legislative council service shall enter into a contract with the agency for disbursing the money to the agency. The contract shall:

(1) contain such provisions as are necessary to:

(a) ensure that the money is expended for purposes consistent with the appropriation; and

(b) direct the proper amounts to those specific needed capital projects as determined by resolution of both houses of the legislature; and

(2) provide that no money shall be disbursed for a capital project until the agency has certified that the project has developed to the point where the money is needed and will be expended within the time limits established by law or in the contract."

Section 2. Section 7-27-12 NMSA 1978 (being Laws 1961, Chapter 5, Section 10, as amended by Laws 2001, Chapter 37, Section 1 and also by Laws 2001, Chapter 338, Section 1) is amended to read:

"7-27-12. WHEN SEVERANCE TAX BONDS TO BE ISSUED.--

A. The state board of finance shall issue and sell all severance tax bonds when authorized to do so by any law [that sets out the amount of the issue and the recipient of the money].

B. The state board of finance shall also issue and sell severance tax bonds authorized by Sections 72-14-36 through 72-14-42 NMSA 1978, and such authority as has been given to the interstate stream commission to issue and sell such bonds is transferred to the state board of finance. The state board of finance shall issue and sell all severance tax bonds only:

(1) in the case of bonds the proceeds of which are appropriated to the legislative bond proceeds capital fund, when the director of the legislative council service notifies the board in writing that a recipient agency has certified to the director that a project has developed to the point that the money is needed and will be expended within the time limits established by law; or

(2) in the case of all other bonds, when so instructed by resolution of the governing body or by written direction from an authorized officer of the recipient of the bond money.

C. Except as provided in Subsection D of this section, proceeds from supplemental severance tax bonds shall be used only for public school capital outlay projects pursuant to the Public School Capital Outlay Act or the Public School Capital Improvements Act.

D. Proceeds from supplemental severance tax bonds issued pursuant to Paragraph (2) of Subsection A of Section 19 of Chapter 6 of Laws 1999 (1st S.S.) shall be used for the purposes specified in that paragraph.

E. Except as provided in Subsection F of this section, the state board of finance shall issue and sell all supplemental severance tax bonds when so instructed by resolution of the public school capital outlay council pursuant to Section 7-27-12.2 NMSA 1978.

F. The state board of finance shall issue and sell supplemental severance tax bonds authorized by Paragraph (2) of Subsection A of Section 19 of Chapter 6 of Laws 1999 (1st S.S.) when so instructed by resolution of the commission on higher education."

Section 3. [NEW MATERIAL] 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 sixty-five million dollars ($65,000,000). The state board of finance shall schedule the issuance and sale of the bonds in the most expeditious and economical manner possible. Proceeds from the sale of the bonds are appropriated to the legislative bond proceeds capital fund for expenditure in fiscal year 2005 and subsequent fiscal years to fund capital projects deemed to be necessary by joint resolution of the legislature.

B. The director of the legislative council service shall notify the state board of finance in writing when the money from the proceeds of the severance tax bonds authorized in this section is to be disbursed for the purposes of this act.

C. Before the director of the legislative council service may notify the state board of finance pursuant to Subsection B of this section, the agency recipient of the proceeds must have certified to the director that the project for which the proceeds will be expended is developed sufficiently so that the agency reasonably expects to:

(1) incur within six months after the date of certification 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 four years after the date of certification.

D. Except as otherwise provided in this section or another section of this act, any undisbursed balance of a disbursement for a project from the legislative bond proceeds capital fund, including a project that has been reauthorized, shall revert as follows:

(1) for projects for which severance tax bond proceeds were disbursed to match federal grants, six months after completion of the project;

(2) for projects for which severance tax bond proceeds were disbursed 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 certification was made for the purchase;

(3) for projects for which severance tax bond proceeds were disbursed 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 certification was made for the purchase; and

(4) for all other projects for which severance tax bond proceeds were disbursed, within six months of completion of the project, but no later than the end of fiscal year 2010.

E. 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 a disbursement after reserving for unpaid costs and expenses covered by binding written obligations to third parties.

Section 4. GENERAL FUND APPROPRIATION.--Thirty-three million five hundred thousand dollars ($33,500,000) is appropriated from the general fund to the legislative appropriation capital fund for expenditure in fiscal year 2005 and subsequent fiscal years to fund capital projects deemed to be necessary by joint resolution of the legislature. Any unexpended or unencumbered balance remaining at the end of any fiscal year shall not revert to the general fund.

Section 5. APPROPRIATION--GAME PROTECTION FUND.--Four hundred thousand dollars ($400,000) is appropriated from the game protection fund to the legislative appropriation capital fund for expenditure in fiscal year 2005 and subsequent fiscal years to fund capital projects deemed to be necessary by joint resolution of the legislature. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the game protection fund.

Section 6. APPROPRIATION--AGING AND LONG-TERM SERVICES DEPARTMENT--AGING PROJECTS.--Five million dollars ($5,000,000) is appropriated from the legislative appropriation capital fund to the aging and long-term services department for expenditure in fiscal year 2005 and subsequent fiscal years for those specific capital projects deemed to be necessary by joint resolution of the legislature. The appropriation is contingent upon the director of the legislative council service entering into a contract with the aging and long-term services department pursuant to the provisions of Section 2-20-1 NMSA 1978 prior to January 1, 2006. Any unexpended or unencumbered balance of the appropriation shall revert to the legislative appropriation capital fund pursuant to the terms of the contract.

Section 7. APPROPRIATION--GENERAL SERVICES DEPARTMENT--GENERAL SERVICES PROJECTS.--Seven million dollars ($7,000,000) is appropriated from the legislative bond proceeds capital fund to the general services department for expenditure in fiscal year 2005 and subsequent fiscal years for those specific capital projects deemed to be necessary by joint resolution of the legislature. The appropriation is contingent upon the director of the legislative council service entering into a contract with the general services department pursuant to the provisions of Section 2-20-1 NMSA 1978 prior to January 1, 2006. Any unexpended or unencumbered balance of the appropriation shall revert to the legislative bond proceeds capital fund pursuant to the terms of the contract.

Section 8. APPROPRIATION--DEPARTMENT OF HEALTH--HEALTH PROJECTS.--Twenty million dollars ($20,000,000) is appropriated from the legislative bond proceeds capital fund to the department of health for expenditure in fiscal year 2005 and subsequent fiscal years for those specific capital projects deemed to be necessary by joint resolution of the legislature. The appropriation is contingent upon the director of the legislative council service entering into a contract with the department of health pursuant to the provisions of Section 2-20-1 NMSA 1978 prior to January 1, 2006. Any unexpended or unencumbered balance of the appropriation shall revert to the legislative bond proceeds capital fund pursuant to the terms of the contract.

Section 9. APPROPRIATION--CULTURAL AFFAIRS DEPARTMENT--CULTURAL AFFAIRS PROJECTS.--Three million dollars ($3,000,000) is appropriated from the legislative appropriation capital fund to the cultural affairs department for expenditure in fiscal year 2005 and subsequent fiscal years for those specific capital projects deemed to be necessary by joint resolution of the legislature. The appropriation is contingent upon the director of the legislative council service entering into a contract with the cultural affairs department pursuant to the provisions of Section 2-20-1 NMSA 1978 prior to January 1, 2006. Any unexpended or unencumbered balance of the appropriation shall revert to the legislative appropriation capital fund pursuant to the terms of the contract.

Section 10. APPROPRIATION--DEPARTMENT OF MILITARY AFFAIRS--MILITARY AFFAIRS PROJECTS.--Two million dollars ($2,000,000) is appropriated from the legislative appropriation capital fund to the department of military affairs for expenditure in fiscal year 2005 and subsequent fiscal years for those specific capital projects deemed to be necessary by joint resolution of the legislature. The appropriation is contingent upon the director of the legislative council service entering into a contract with the department of military affairs pursuant to the provisions of Section 2-20-1 NMSA 1978 prior to January 1, 2006. Any unexpended or unencumbered balance of the appropriation shall revert to the legislative appropriation capital fund pursuant to the terms of the contract.

Section 11. APPROPRIATION--CORRECTIONS DEPARTMENT--CORRECTIONS PROJECTS.--Fourteen million dollars ($14,000,000) is appropriated from the legislative appropriation capital fund to the corrections department for expenditure in fiscal year 2005 and subsequent fiscal years for those specific capital projects deemed to be necessary by joint resolution of the legislature. The appropriation is contingent upon the director of the legislative council service entering into a contract with the corrections department pursuant to the provisions of Section 2-20-1 NMSA 1978 prior to January 1, 2006. Any unexpended or unencumbered balance of the appropriation shall revert to the legislative appropriation capital fund pursuant to the terms of the contract.

Section 12. APPROPRIATION--CHILDREN, YOUTH AND FAMILIES DEPARTMENT--CHILDREN, YOUTH AND FAMILIES PROJECTS.--Five million dollars ($5,000,000) is appropriated from the legislative appropriation capital fund to the children, youth and families department for expenditure in fiscal year 2005 and subsequent fiscal years for those specific capital projects deemed to be necessary by joint resolution of the legislature. The appropriation is contingent upon the director of the legislative council service entering into a contract with the children, youth and families department pursuant to the provisions of Section 2-20-1 NMSA 1978 prior to January 1, 2006. Any unexpended or unencumbered balance of the appropriation shall revert to the legislative appropriation capital fund pursuant to the terms of the contract.

Section 13. APPROPRIATION--GENERAL SERVICES DEPARTMENT--GENERAL SERVICES PROJECTS.--Four million five hundred thousand dollars ($4,500,000) is appropriated from the legislative appropriation capital fund to the general services department for expenditure in fiscal year 2005 and subsequent fiscal years for those specific capital projects deemed to be necessary by joint resolution of the legislature. The appropriation is contingent upon the director of the legislative council service entering into a contract with the general services department pursuant to the provisions of Section 2-20-1 NMSA 1978 prior to January 1, 2006. Any unexpended or unencumbered balance of the appropriation shall revert to the legislative appropriation capital fund pursuant to the terms of the contract.

Section 14. APPROPRIATION--OFFICE OF THE STATE ENGINEER--WATER PROJECTS.--Nine million five hundred thousand dollars ($9,500,000) is appropriated from the legislative bond proceeds capital fund to the office of the state engineer for expenditure in fiscal year 2005 and subsequent fiscal years for those specific capital projects deemed to be necessary by joint resolution of the legislature. The appropriation is contingent upon the director of the legislative council service entering into a contract with the office of the state engineer pursuant to the provisions of Section 2-20-1 NMSA 1978 prior to January 1, 2006. Any unexpended or unencumbered balance of the appropriation shall revert to the legislative bond proceeds capital fund pursuant to the terms of the contract.

Section 15. APPROPRIATION--COMMISSION ON HIGHER EDUCATION--HIGHER EDUCATION PROJECTS.--Twenty million dollars ($20,000,000) is appropriated from the legislative bond proceeds capital fund to the commission on higher education for expenditure in fiscal year 2005 and subsequent fiscal years for those specific capital projects deemed to be necessary by joint resolution of the legislature. The appropriation is contingent upon the director of the legislative council service entering into a contract with the commission on higher education pursuant to the provisions of Section 2-20-1 NMSA 1978 prior to January 1, 2006. Any unexpended or unencumbered balance of the appropriation shall revert to the legislative bond proceeds capital fund pursuant to the terms of the contract.

Section 16. APPROPRIATION--CUMBRES AND TOLTEC SCENIC RAILROAD COMMISSION--RAILROAD PROJECTS.--Two million dollars ($2,000,000) is appropriated from the legislative bond proceeds capital fund to the Cumbres and Toltec scenic railroad commission for expenditure in fiscal year 2005 and subsequent fiscal years for those specific capital projects deemed to be necessary by joint resolution of the legislature. The appropriation is contingent upon the director of the legislative council service entering into a contract with the Cumbres and Toltec scenic railroad commission pursuant to the provisions of Section 2-20-1 NMSA 1978 prior to January 1, 2006. Any unexpended or unencumbered balance of the appropriation shall revert to the legislative bond proceeds capital fund pursuant to the terms of the contract.

Section 17. APPROPRIATION--STATE GAME COMMISSION--GAME AND FISH PROJECTS.--Three million five hundred thousand dollars ($3,500,000) is appropriated from the legislative bond proceeds capital fund to the state game commission for expenditure in fiscal year 2005 and subsequent fiscal years for those specific capital projects deemed to be necessary by joint resolution of the legislature. The appropriation is contingent upon the director of the legislative council service entering into a contract with the state game commission pursuant to the provisions of Section 2-20-1 NMSA 1978 prior to January 1, 2006. Any unexpended or unencumbered balance of the appropriation shall revert to the legislative bond proceeds capital fund pursuant to the terms of the contract.

Section 18. APPROPRIATION--STATE FAIR COMMISSION--STATE FAIR PROJECTS.--Three million dollars ($3,000,000) is appropriated from the legislative bond proceeds capital fund to the state fair commission for expenditure in fiscal year 2005 and subsequent fiscal years for those specific capital projects deemed to be necessary by joint resolution of the legislature. The appropriation is contingent upon the director of the legislative council service entering into a contract with the state fair commission pursuant to the provisions of Section 2-20-1 NMSA 1978 prior to January 1, 2006. Any unexpended or unencumbered balance of the appropriation shall revert to the legislative bond proceeds capital fund pursuant to the terms of the contract.

Section 19. APPROPRIATION--STATE GAME COMMISSION--GAME AND FISH PROJECTS.--Four hundred thousand dollars ($400,000) is appropriated from the legislative appropriation capital fund to the state game commission for expenditure in fiscal year 2005 and subsequent fiscal years for those specific capital projects deemed to be necessary by joint resolution of the legislature. The appropriation is contingent upon the director of the legislative council service entering into a contract with the state game commission pursuant to the provisions of Section 2-20-1 NMSA 1978 prior to January 1, 2006. Any unexpended or unencumbered balance of the appropriation shall revert to the legislative appropriation capital fund pursuant to the terms of the contract.

Section 20. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.