0001|               SENATE FINANCE COMMITTEE SUBSTITUTE FOR
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0002|                           SENATE BILL 382
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0003|     43rd legislature - STATE OF NEW MEXICO - second session, 1998
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0004|                                   
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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|     
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0011|                                AN ACT
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0012|     RELATING TO THE PUBLIC PEACE, HEALTH, SAFETY AND WELFARE;
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0013|     AUTHORIZING THE ISSUANCE OF NEW MEXICO FINANCE AUTHORITY
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0014|     REVENUE BONDS FOR THE CRITICAL CAPITAL OUTLAY NEEDS OF PUBLIC
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0015|     SCHOOLS WITH A SIGNIFICANT MAJORITY OF NATIVE AMERICAN
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0016|     STUDENTS; PROVIDING POWERS AND DUTIES; DISTRIBUTING A PORTION
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0017|     OF THE GROSS RECEIPTS TAX TO A SPECIAL FUND AND PLEDGING THE
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0018|     REVENUES FOR THE PAYMENT OF BONDS; MAKING AN APPROPRIATION.
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0019|     
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0020|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0021|          Section 1.  A new section of the Tax Administration Act
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0022|     is enacted to read:
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0023|          "[<u>NEW MATERIAL</u>] DISTRIBUTION--GROSS RECEIPTS TAX--
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0024|     INDIAN SCHOOL BONDING FUND.--A distribution pursuant to
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0025|     Section 7-1-6.1 NMSA 1978 shall be made to the Indian school
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<center>- 1 -</center>0001|     bonding fund in the New Mexico finance authority in the amount
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0002|     of four hundred sixteen thousand six hundred sixty-seven
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0003|     dollars ($416,667) of the net receipts attributable to the
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0004|     gross receipts tax imposed pursuant to the Gross Receipts and
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0005|     Compensating Tax Act."
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0006|          Section 2.  A new section of the Public School Capital
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0007|     Outlay Act is enacted to read:
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0008|          "[<u>NEW MATERIAL</u>] CRITICAL CAPITAL OUTLAY NEEDS OF INDIAN
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0009|     PUBLIC SCHOOLS--DISTRIBUTION.--         
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0010|               A.  Upon a determination by the New Mexico finance
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0011|     authority that an amount of money is available, the council
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0012|     shall approve applications for grant assistance for Indian
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0013|     public schools when the council:
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0014|                    (1)  determines the critical capital outlay
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0015|     needs of Indian public schools;
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0016|                    (2)  determines that the school district has
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0017|     used its resources in a prudent manner; and
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0018|                    (3)  has sought and received information and
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0019|     advice from representatives of Indian nations, tribes and
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0020|     pueblos in New Mexico regarding the critical capital outlay
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0021|     needs of Indian public schools.
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0022|               B.  The council shall allocate grants for capital
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0023|     outlay projects that meet the project evaluation criteria of
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0024|     the council pursuant to the Public School Capital Outlay Act;
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0025|     provided that the evaluation criteria shall not include tax
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<center>- 2 -</center>0001|     effort by the school district.
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0002|               C.  Upon a determination of the capital outlay grants
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0003|     pursuant to Subsection A of this section, the department of
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0004|     education shall certify to the New Mexico finance authority the
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0005|     need for the issuance of the bonds authorized pursuant to Section
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0006|     3 of this act.  
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0007|               D.  As used in this section, "Indian public school"
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0008|     means a public school with a school membership of at least
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0009|     seventy percent Native Americans."
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0010|          Section 3.  A new section of the New Mexico Finance
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0011|     Authority Act is enacted to read:
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0012|          "[<u>NEW MATERIAL</u>] AUTHORIZATION OF NEW MEXICO FINANCE
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0013|     AUTHORITY REVENUE BONDS--INDIAN PUBLIC SCHOOL CAPITAL OUTLAY
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0014|     PROJECTS--INDIAN SCHOOL BONDING FUND--APPROPRIATION.--
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0015|               A.  The "Indian school bonding fund" is created within
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0016|     the authority.  The fund shall be administered by the authority
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0017|     as a separate account, and the authority may create such
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0018|     subaccounts as the authority deems necessary to carry out the
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0019|     purposes of the fund.  The authority is authorized to establish
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0020|     procedures as required to administer the fund in accordance with
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0021|     the New Mexico Finance Authority Act.
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0022|               B.  The Indian school bonding fund shall consist of
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0023|     gross receipts tax revenues distributed to the fund pursuant to
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0024|     the Tax Administration Act.  
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0025|               C.  The New Mexico finance authority shall report
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<center>- 3 -</center>0001|     annually to the public school capital outlay council the amount
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0002|     of money available for Indian public school capital outlay
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0003|     projects.  The authority is authorized to issue and sell revenue
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0004|     bonds in compliance with the New Mexico Finance Authority Act in
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0005|     installments or at one time, that in the aggregate do not exceed
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0006|     an outstanding principal amount at any one time of forty million
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0007|     dollars ($40,000,000), for Indian public school capital outlay
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0008|     projects when the state department of public education certifies
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0009|     the need for issuance of the bonds.  The net proceeds from the
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0010|     sale of the bonds are appropriated to the state department of
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0011|     public education for distribution to Indian public schools in
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0012|     amounts and for purposes determined by the public school capital
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0013|     outlay council pursuant to the Public School Capital Outlay Act.
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0014|               D.  Money in the Indian school bonding fund not needed
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0015|     for immediate disbursement, including any money held in reserve,
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0016|     may be deposited with the state treasurer for short-term
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0017|     investment pursuant to Section 6-10-10.1 NMSA 1978 or may be
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0018|     invested in direct and general obligations of or obligations
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0019|     fully and unconditionally guaranteed by the United States,
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0020|     obligations issued by agencies of the United States, obligations
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0021|     of this state or any political subdivision of the state,
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0022|     interest-bearing time deposits, commercial paper issued by
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0023|     corporations organized and operating in the United States and
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0024|     rated "prime" quality by a national rating service or as
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0025|     otherwise provided by the trust indenture or bond resolution, if
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<center>- 4 -</center>0001|     money in the fund is pledged for or to secure payment of bonds
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0002|     issued by the authority.
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0003|               E.  The authority shall establish fiscal controls and
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0004|     accounting procedures that are sufficient to ensure proper
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0005|     accounting for Indian school bonding fund payments, disbursements
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0006|     and balances.
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0007|               F.  At the end of any fiscal year, after all debt
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0008|     service charges, establishment or replenishment of reserves and
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0009|     other costs of or related to all outstanding revenue bonds, notes
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0010|     or other obligations payable from the Indian school bonding fund
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0011|     are satisfied, the balances remaining in the fund shall be
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0012|     available for grant assistance for critical capital outlay needs
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0013|     of Indian public schools pursuant to the provisions of the Public
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0014|     School Capital Outlay Act.
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0015|               G.  The authority shall pledge irrevocably all of the
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0016|     gross receipts tax revenues distributed to the Indian school
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0017|     bonding fund pursuant to the Tax Administration Act for payment
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0018|     of the principal, interest and other expenses or obligations
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0019|     related to the revenue bonds issued by the authority for Indian
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0020|     public school capital outlay projects. 
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0021|               H.  A law that imposes the gross receipts tax or that
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0022|     affects the gross receipts tax or that requires distribution of a
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0023|     portion of the gross receipts tax to the authority for payment of
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0024|     revenue bonds for Indian public school capital outlay, or a law
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0025|     supplemental to or otherwise pertaining to the tax, shall not be
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<center>- 5 -</center>0001|     amended, repealed or otherwise directly or indirectly modified so
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0002|     as to impair outstanding revenue bonds that may be secured by a
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0003|     pledge of the distributions to the authority, unless the revenue
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0004|     bonds have been discharged in full or provisions have been made
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0005|     for a full discharge.
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0006|               I.  The revenue bonds issued by the authority pursuant
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0007|     to this section shall constitute a special limited obligation of
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0008|     the authority, payable solely from the revenues distributed to
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0009|     the authority for deposit in a special bond fund or account of
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0010|     the authority for payment of bonds for Indian public school
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0011|     capital outlay, and shall never constitute or be contrued as a
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0012|     debt or general obligation of the state or any political
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0013|     subdivision of the state under the laws or the constitution of
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0014|     New Mexico."
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0015|          Section 4.  EFFECTIVE DATE.--The effective date of the
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0016|     provisions of Section 1 of this act is July 1, 1998.
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0017|                               
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