44th legislature - STATE OF NEW MEXICO - second session, 2000

PROPOSING AN AMENDMENT TO ARTICLE 9, SECTIONS 8 AND 11 OF THE CONSTITUTION OF NEW MEXICO TO SHIFT A PORTION OF LOCAL SCHOOL DISTRICT GENERAL OBLIGATION BONDING AUTHORITY TO THE STATE.

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

Section 1. It is proposed to amend Article 9, Section 8 of the constitution of New Mexico to read:

"A. No debt other than those specified in [the preceding] Article 9, Section 7 of the constitution of New Mexico shall be contracted by or on behalf of this state, unless authorized by law for some specified work or object; which law shall provide for an annual tax levy sufficient to pay the interest and to provide a sinking fund to pay the principal of such debt within fifty years from the time of the contracting thereof. No such law shall take effect until it shall have been submitted to the qualified electors of the state and have received a majority of all the votes cast thereon at a general election; such law shall be published in full in at least one newspaper in each county of the state, if one be published therein, once each week, for four successive weeks next preceding such election. No debt shall be so created if the total indebtedness of the state, exclusive of the debts of the territory, and the several counties thereof, assumed by the state, would thereby be made to exceed one percent of the assessed valuation of all the property subject to taxation in the state as shown by the preceding general assessment.

B. The state may create additional debt not to exceed three percent of the total assessed valuation of the taxable property within all school districts as shown by the preceding general assessment to provide funds for school districts statewide to erect, remodel, renovate, make additions to and furnish school buildings, excluding administrative buildings, to purchase or improve public school grounds or any combination of these purposes. This amendment applies to property tax years beginning on or after January 1, 2002."

Section 2. It is proposed to amend Article 9, Section 11 of the constitution of New Mexico to read:

"A. Except as provided in Subsection C of this section, no school district shall borrow money except for the purpose of erecting, remodeling, making additions to and furnishing school buildings or purchasing or improving school grounds or any combination of these purposes, and in such cases only when the proposition to create the debt has been submitted to a vote of such qualified electors of the district as are owners of real estate within the school district and a majority of those voting on the question has voted in favor of creating such debt.

B. No school district shall ever become indebted in an amount exceeding [six] three percent on the assessed valuation of the taxable property within the school district as shown by the preceding general assessment. This amendment applies to property tax years beginning on or after January 1, 2002, and any new bonds issued by the school district after January 1, 2002 shall not exceed three percent of the assessed valuation of the taxable property within the school district. C. A school district may create a debt by entering into a lease-purchase arrangement to acquire education technology equipment without submitting the proposition to a vote of the qualified electors of the district, but any debt created is subject to the limitation of Subsection B of this section."

Section 3. The amendment proposed by this resolution shall be submitted to the people for their approval or rejection at the next general election or at any special election prior to that date which may be called for that purpose.