FORTY-NINTH LEGISLATURESB 310/a

FIRST SESSION, 2009

February 20, 2009

Madam President:

    Your EDUCATION COMMITTEE, to whom has been referred

SENATE BILL 310

has had it under consideration and reports same with recommendation that it DO PASS, amended as follows:

    1. On page 1, line 17, after the semicolon, insert "AUTHORIZING THE ISSUANCE OF SHORT-TERM SEVERANCE TAX BONDS;".

    2. On page 1, line 20, strike "This" and insert in lieu thereof "Sections 1 through 6 of this.".

    3. On page 6, between lines 1 and 2, insert a new section to read:

    "Section 7. SHORT-TERM SEVERANCE TAX BONDS--HIGHER EDUCATION CAPITAL OUTLAY.--In addition to the bonds issued pursuant to Section 7-27-14 NMSA 1978 and notwithstanding the limitations of that section, in compliance with the Severance Tax Bonding Act, in fiscal year 2009, the state board of finance may issue and sell severance tax bonds with a term that does not extend beyond the fiscal year in which they are issued in an amount not exceeding ninety million dollars ($90,000,000) when the higher education capital outlay council certifies by resolution the need for the issuance of the bonds. The proceeds from the sale of the bonds are appropriated to the higher education capital outlay fund for the correction of outstanding health, safety and infrastructure deficiencies at public post-secondary educational institutions pursuant to the Higher Education Capital Outlay Act; provided that no severance tax bonds shall be issued pursuant to this section:

         A. until all other severance tax bonds and supplemental severance tax bonds to be issued in fiscal year 2009 have been issued; and

         B. unless the balance in the severance tax bonding fund as of the date that the bonds are issued is greater than the sum of:

             (1) the debt service on the severance tax bonds to be issued pursuant to this section;

             (2) the debt service scheduled to be paid during the remainder of the fiscal year on all outstanding severance tax bonds and supplemental severance tax bonds; and

             (3) the amount necessary to meet all principal and interest payments on outstanding bonds payable from the severance tax bonding fund on the next two ensuing semiannual payment dates.".,

and thence referred to the FINANCE COMMITTEE.

                               Respectfully submitted,

                               __________________________________

                               Cynthia Nava, Chairman

Adopted_______________________ Not Adopted_______________________

          (Chief Clerk) (Chief Clerk)

                  Date ________________________

The roll call vote was 7 For 0 Against

Yes:      7

No:       0

Excused: Asbill, Pinto

Absent:   None

SB0310ED1                                                  .176912.1