0001|                            HOUSE BILL 10
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0002|     43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003|                            INTRODUCED BY
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0004|                              BEN LUJAN
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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|                                AN ACT
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0011|     AUTHORIZING THE ISSUANCE AND SALE OF CAPITAL PROJECTS GENERAL
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0012|     OBLIGATION BONDS TO MAKE CAPITAL EXPENDITURES FOR SENIOR
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0013|     CITIZEN FACILITY IMPROVEMENTS AND ACQUISITIONS; FOR PUBLIC
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0014|     EDUCATIONAL CAPITAL IMPROVEMENTS AND ACQUISITIONS AND FOR
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0015|     PUBLIC LIBRARY ACQUISITIONS; PROVIDING FOR A TAX LEVY FOR
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0016|     PAYMENT OF PRINCIPAL OF, INTEREST ON AND CERTAIN COSTS RELATED
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0017|     TO THE BONDS; REQUIRING APPROVAL OF THE REGISTERED VOTERS AT
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0018|     THE 1998 GENERAL ELECTION OF THE STATE; DECLARING AN
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0019|     EMERGENCY.
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0020|     
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0021|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0022|          Section 1.  SHORT TITLE.--This act may be cited as the
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0023|     "1998 Capital Projects General Obligation Bond Act".
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0024|          Section 2.  PURPOSE.--For the purpose of providing funds
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0025|     for capital expenditures as authorized in this act, general
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0001|     obligation indebtedness of the state is authorized for the
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0002|     purposes and in the amounts set forth in Section 10 of the
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0003|     1998 Capital Projects General Obligation Bond Act.
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0004|          Section 3.  BOND TERMS.--The state board of finance,
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0005|     except as limited by the 1998 Capital Projects General
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0006|     Obligation Bond Act, shall determine the terms, covenants and
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0007|     conditions of bonds issued pursuant to that act, including but
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0008|     not limited to:  date or dates of issue; denominations;
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0009|     maturities; principal amounts; rate or rates of interest;
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0010|     provisions for redemption, including premiums, registration
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0011|     and refundability, whether the bonds are issued in one or more
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0012|     series and other covenants relating to the bonds and the
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0013|     issuance thereof.  The bonds shall be in such form as the
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0014|     state board of finance determines with an appropriate series
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0015|     designation and shall bear interest payable as set forth in
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0016|     the resolution of the state board of finance.  Payment of the
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0017|     principal of the bonds shall begin not more than two years
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0018|     after the date of their issuance, and the bonds shall mature
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0019|     not later than ten years after the date of their issuance. 
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0020|     Both principal and interest shall be payable in lawful money
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0021|     of the United States at the office of the paying agent within
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0022|     or without the state of New Mexico as the state board of
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0023|     finance may direct.  The bonds shall be executed with the
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0024|     manual or facsimile signature of the governor or the state
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0025|     treasurer, and the seal or a facsimile of the seal of the
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0001|     state shall be placed on each bond, except for any series of
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0002|     bonds issued in book entry or similar form without the
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0003|     delivery of physical securities.  The bonds shall be issued in
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0004|     accordance with the provisions of the 1998 Capital Projects
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0005|     General Obligation Bond Act, the Supplemental Public
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0006|     Securities Act and the Uniform Facsimile Signature of Public
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0007|     Officials Act and may be issued in accordance with the Public
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0008|     Securities Short-Term Interest Rate Act.  The full faith and
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0009|     credit of the state of New Mexico are hereby pledged for the
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0010|     prompt payment at maturity of the principal of and interest on
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0011|     all bonds issued and sold pursuant to the 1998 Capital
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0012|     Projects General Obligation Bond Act.
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0013|          Section 4.  EXPENDITURES.--The proceeds from the sale of
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0014|     the bonds shall be expended solely for providing funds to be
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0015|     distributed for the purposes and in amounts not to exceed the
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0016|     amounts set forth in Section 10 of the 1998 Capital Projects
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0017|     General Obligation Bond Act and to pay expenses incurred under
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0018|     Section 6 of that act.  Any proceeds from the sale of the
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0019|     bonds that are not required for the purposes set forth in
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0020|     Sections 6 and 10 of that act shall be used for the purpose of
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0021|     paying the principal of and interest on the bonds.
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0022|          Section 5.  SALE.--The bonds authorized under the 1998
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0023|     Capital Projects General Obligation Bond Act shall be sold by
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0024|     the state board of finance, at such time and in such manner
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0025|     and amounts as the board may elect.  The bonds may be sold at
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0001|     private sale or at public sale at not less than par and
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0002|     accrued interest to the date of delivery.  If sold at public
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0003|     sale, the state board of finance shall publish a notice of the
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0004|     time and place of sale in a newspaper of general circulation
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0005|     in the state and may also publish the notice in a recognized
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0006|     financial journal outside the state.  The required
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0007|     publications shall be made once each week for two consecutive
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0008|     weeks prior to the date fixed for the sale, the last
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0009|     publication thereof to be at least five days prior to the date
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0010|     of the sale.  The notice shall specify the amount,
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0011|     denomination, maturity and description of the bonds to be
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0012|     offered for sale and the place, date and hour at which the
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0013|     sealed bids shall be received.  At the time and place
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0014|     specified in the notice, the state board of finance shall open
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0015|     the bids in public and shall award the bonds to the bidder or
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0016|     bidders offering the best price for the bonds.  The state
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0017|     board of finance may reject any or all bids and readvertise
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0018|     and may waive any irregularity in a bid.  All bids, except
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0019|     that of the state, shall be accompanied by a deposit of two
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0020|     percent of the bid price.  The deposit of an unsuccessful
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0021|     bidder shall be returned upon rejection of the bid.  The state
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0022|     board of finance may also sell the bonds or any part of the
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0023|     bonds to the state treasurer or state investment officer.  The
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0024|     state treasurer or state investment officer is authorized to
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0025|     purchase any of the bonds for investment.  The bonds are legal
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0001|     investments for any person or board charged with the
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0002|     investment of any public funds and may be accepted as security
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0003|     for any deposit of public money.
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0004|          Section 6.  EXPENSES.--The expenses incurred by the state
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0005|     board of finance in or relating to the preparation and sale of
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0006|     the bonds shall be paid out of the proceeds from the sale of
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0007|     the bonds, and all rebate, penalty, interest and other
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0008|     obligations of the state relating to the bonds and bond
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0009|     proceeds under the Internal Revenue Code of 1986, as amended,
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0010|     shall be paid from earnings on bond proceeds or other money of
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0011|     the state, legally available therefor.
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0012|          Section 7.  TAX LEVY.--To provide for the payment of the
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0013|     principal of and interest on the bonds issued and sold
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0014|     pursuant to the provisions of the 1998 Capital Projects
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0015|     General Obligation Bond Act, there shall be and there is
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0016|     hereby imposed and levied during each year in which any of the
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0017|     bonds are outstanding an ad valorem tax on all property in the
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0018|     state subject to property taxation for state purposes
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0019|     sufficient to pay the interest as it becomes due on the bonds,
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0020|     together with an amount sufficient to provide a sinking fund
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0021|     to pay the principal of the bonds as it becomes due and, if
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0022|     permitted by law, ad valorem taxes may be collected to pay
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0023|     administrative costs incident to the collection of such taxes. 
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0024|     The taxes shall be imposed, levied, assessed and collected at
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0025|     the times and in the manner that other property taxes for
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0001|     state purposes are imposed, levied, assessed and collected. 
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0002|     It is the duty of all tax officials and authorities to cause
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0003|     these taxes to be imposed, levied, assessed and collected.
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0004|          Section 8.  TREASURER--DUTIES.--The state treasurer shall
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0005|     keep separate accounts of all money collected pursuant to the
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0006|     taxes imposed and levied pursuant to the provisions of the
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0007|     1998 Capital Projects General Obligation Bond Act and shall
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0008|     use this money only for the purposes of paying the principal
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0009|     of and interest on the bonds as they become due and any
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0010|     expenses relating thereto.
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0011|          Section 9.  IRREPEALABLE CONTRACT--AUTHORITY FOR
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0012|     ISSUANCE.--Any owner of bonds issued pursuant to the
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0013|     provisions of the 1998 Capital Projects General Obligation
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0014|     Bond Act may, either at law or in equity, by suit, action or
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0015|     mandamus, enforce and compel the performance of the duties
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0016|     required by that act of any officer or entity mentioned in
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0017|     that act.  The provisions of the 1998 Capital Projects General
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0018|     Obligation Bond Act constitute an irrepealable contract with
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0019|     the owners of any of the bonds issued pursuant to that act for
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0020|     the faithful performance of which the full faith and credit of
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0021|     the state of New Mexico are hereby pledged.  Without reference
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0022|     to any other act of the legislature of the state, the 1998
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0023|     Capital Projects General Obligation Bond Act is full authority
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0024|     for the issuance and sale of the bonds authorized in that act,
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0025|     and such bonds shall have all the qualities of investment
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0001|     securities under the Uniform Commercial Code of the state,
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0002|     shall not be invalid for any irregularity or defect in the
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0003|     proceedings for the issuance and sale of the bonds and shall
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0004|     be incontestable in the hands of bona fide purchasers or
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0005|     holders thereof for value.  All bonds issued under the
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0006|     provisions of the 1998 Capital Projects General Obligation
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0007|     Bond Act, and the interest thereon, are exempt from taxation
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0008|     by the state and any subdivision or public body thereof.
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0009|          Section 10.  PROJECTS.--The proceeds from the sale of
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0010|     bonds issued under the provisions of the 1998 Capital Projects
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0011|     General Obligation Bond Act shall be distributed as follows
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0012|     for the purposes and in the amounts specified:
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0013|               A.  for senior citizen facility improvements and
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0014|     acquisitions, to the state agency on aging:
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0015|                    (1)  four million dollars ($4,000,000) for the
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0016|     purpose of purchasing vehicles and related equipment for
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0017|     accessibility for senior citizen centers and programs
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0018|     throughout the state; and
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0019|                    (2)  four hundred thousand dollars ($400,000)
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0020|     for the purpose of renovating and making improvements to meet
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0021|     current codes and regulations regarding health, safety and
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0022|     accessibility at senior centers and meal sites located
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0023|     throughout the state;
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0024|               B.  for state public educational capital
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0025|     improvements and acquisitions:
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0001|                    (1)  to the public school capital outlay fund,
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0002|     twenty million dollars ($20,000,000) for allocation to public
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0003|     schools for critical capital outlay projects pursuant to the
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0004|     Public School Capital Outlay Act; and
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0005|                    (2)  to the commission on higher education,
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0006|     fifteen million dollars ($15,000,000) for distribution to
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0007|     public post-secondary educational institutions for making
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0008|     infrastructure improvements and expansions at institutions
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0009|     throughout the state; and
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0010|               C.  for public library acquisitions, to the office
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0011|     of cultural affairs, five hundred thousand dollars ($500,000)
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0012|     for the purpose of acquiring library books, equipment and
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0013|     library resources for distribution statewide.
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0014|          Section 11.  ELECTION.--Bonds issued pursuant to the 1998
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0015|     Capital Projects General Obligation Bond Act shall be
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0016|     submitted to the registered voters of the state at the general
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0017|     election to be held in November 1998, and if they receive a
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0018|     majority of all the votes cast thereon at such election, shall
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0019|     take effect upon certification of the state canvassing board
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0020|     announcing the results of such election.  No bonds shall be
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0021|     issued or sold under the 1998 Capital Projects General
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0022|     Obligation Bond Act until the registered voters of this state
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0023|     have voted upon and approved the bonds and property tax as
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0024|     provided in this section.  Any bonds issued under that act
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0025|     shall be issued within twenty-six months from the date of such
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0001|     election.
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0002|          The ballots used at the 1998 general election shall
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0003|     contain substantially the following language:
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0004|               A.  "the 1998 Capital Projects General Obligation
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0005|     Bond Act authorizes the issuance and sale of senior citizen
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0006|     facility improvement and equipment bonds.  Shall the state of
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0007|     New Mexico be authorized to issue general obligation bonds in
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0008|     an amount not to exceed four million four hundred thousand
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0009|     dollars ($4,400,000) to make capital expenditures for certain
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0010|     senior citizen facility improvements and equipment projects
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0011|     and provide for a general property tax imposition and levy for
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0012|     the payment of principal of, interest on and expenses incurred
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0013|     in connection with the issuance of the bonds and the
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0014|     collection of the tax as permitted by law?
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0015|          For________________   Against___________________";
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0016|               B.  "the 1998 Capital Projects General Obligation
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0017|     Bond Act authorizes the issuance and sale of public
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0018|     educational capital improvements and acquisition bonds.  Shall
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0019|     the state of New Mexico be authorized to issue general
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0020|     obligation bonds in an amount not to exceed thirty-five
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0021|     million dollars ($35,000,000) to make capital expenditures for
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0022|     certain public educational capital improvements and
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0023|     acquisitions and provide for a general property tax imposition
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0024|     and levy for the payment of principal of, interest on and
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0025|     expenses incurred in connection with the issuance of the bonds
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0001|     and the collection of the tax as permitted by law?     
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0002|        For________________   Against___________________"; and
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0003|               C. "the 1998 Capital Projects General Obligation
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0004|     Bond Act authorizes the issuance and sale of public library
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0005|     acquisition bonds.  Shall the state of New Mexico be
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0006|     authorized to issue general obligation bonds in an amount not
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0007|     to exceed five hundred thousand dollars ($500,000) to make
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0008|     capital expenditures for public library acquisitions and
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0009|     provide for a general property tax imposition and levy for the
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0010|     payment of principal of, interest on and expenses incurred in
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0011|     connection with the issuance of the bonds and the collection
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0012|     of the tax as permitted by law?     
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0013|          For________________   Against___________________".
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0014|          Each question set forth in this section includes a
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0015|     specific work or object to be financed by the bonds. If any
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0016|     such question is not approved by a majority vote of the
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0017|     electorate at the state's 1998 general election, the issuance
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0018|     of bonds for the work or object specific by the question shall
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0019|     be excluded from and shall not be part of the 1998 Capital
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0020|     Projects General Obligation Bond Act.  The failure of any
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0021|     question to be approved by the electorate at the 1998 general
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0022|     election shall not have any effect on the work or object
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0023|     specified or the provisions of the 1998 General Obligation
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0024|     Bond Act relating to questions approved at the election.
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0025|          The secretary of state shall include the submission of
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0001|     the capital projects general obligation bonds to the people at
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0002|     the 1998 general election, and it shall be included in the
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0003|     general election proclamation of each of the county clerks. 
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0004|     The secretary of state shall cause the 1998 Capital Projects
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0005|     General Obligation Bond Act to be published in full in at
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0006|     least one newspaper in each county of the state if one be
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0007|     published therein, once each week, for four successive weeks
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0008|     next preceding the general election as required by the
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0009|     constitution of New Mexico.
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0010|          Section 12.  ART IN PUBLIC PLACES.--Pursuant to Section
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0011|     13-4A-4 NMSA 1978 and where applicable, the appropriations
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0012|     authorized in the 1998 Capital Projects General Obligation
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0013|     Bond Act include one percent for the art in public places
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0014|     fund.
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0015|          Section 13.  APPLICABILITY.--If any part or application
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0016|     of the 1998 Capital Projects General Obligation Bond Act is
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0017|     held invalid, the remainder or its application to other
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0018|     situations or persons shall not be affected.
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0019|          Section 14.  EMERGENCY.--It is necessary for the public
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0020|     peace, health and safety that this act take effect
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0021|     immediately.
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