0001| AN ACT
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0002| RELATING TO PUBLIC BUILDINGS; TRANSFERRING INCOME FROM THE CAPITOL
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0003| BUILDINGS REPAIR FUND; AUTHORIZING THE ISSUANCE OF REVENUE BONDS;
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0004| AMENDING AND ENACTING CERTAIN SECTIONS OF THE NMSA 1978; MAKING AN
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0005| APPROPRIATION.
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0006|
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0007| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0008| Section 1. NEW MEXICO FINANCE AUTHORITY REVENUE BONDS--PURPOSE--CERTIFICATION--APPROPRIATION.--
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0009| A. The New Mexico finance authority may issue and sell in
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0010| installments or at one time revenue bonds in compliance with the New
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0011| Mexico Finance Authority Act in an amount not to exceed eighteen million
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0012| dollars ($18,000,000) for the purpose of repairing, remodeling,
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0013| constructing and equipping a state building located adjacent to the
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0014| state capitol in Santa Fe known as the New Mexico state library and for
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0015| relocation-associated renovations in the state capitol.
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0016| B. Annually, the first two million dollars ($2,000,000) in
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0017| the capitol buildings repair fund shall be distributed by the general
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0018| services department to the New Mexico finance authority and is
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0019| appropriated to the authority to be pledged irrevocably for the payment
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0020| of the principal, interest, any premium and expenses related to the
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0021| bonds authorized pursuant to this section.
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0022| C. All income from the capitol buildings repair fund
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0023| distributed to the New Mexico finance authority shall be deposited in a
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0024| special bond fund or segregated account of the authority. At the end of
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0025| each fiscal year, any money remaining in the special bond fund or
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0001| segregated account, after all debt service obligations, reserve fund
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0002| requirements and expenses in such fiscal year for the bonds issued
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0003| pursuant to this section are fully met, shall be transferred by the
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0004| authority to the state treasurer for deposit back into the capitol
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0005| buildings repair fund. Upon payment of all principal and interest and
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0006| any other expenses or obligation related to the bonds authorized by this
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0007| section, the New Mexico finance authority shall certify to the general
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0008| services department that all obligations for the bonds issued pursuant
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0009| to this section have been fully discharged and direct the department to
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0010| cease the distribution from the capitol buildings repair fund to the
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0011| authority.
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0012| D. The legislature shall not repeal, amend or otherwise
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0013| modify any law that affects or impairs the revenue bonds of the New
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0014| Mexico finance authority secured by a pledge of the income from the
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0015| capitol buildings repair fund.
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0016| E. The New Mexico finance authority may issue and sell
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0017| revenue bonds authorized by this section when the legislative council
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0018| service certifies the need for issuance of the bonds. The net proceeds
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0019| from the sale of the bonds are appropriated to the legislative council
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0020| service for the purposes described in Subsection A of this section.
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0021| F. Upon certification by the New Mexico finance authority
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0022| that the state building project is sufficiently developed to warrant the
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0023| issuance of bonds by the authority, the general services department
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0024| shall distribute the first two million dollars ($2,000,000) of the
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0025| capitol buildings repair fund to the New Mexico finance authority.
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0001| Section 2. Section 7-27-5 NMSA 1978 (being Laws 1983, Chapter
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0002| 306, Section 7, as amended) is amended to read:
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0003| "7-27-5. INVESTMENT OF SEVERANCE TAX PERMANENT FUND.--The
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0004| severance tax permanent fund shall be invested for two general purposes,
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0005| to provide income to the fund and to stimulate the economy of New
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0006| Mexico, preferably on a continuing basis. The investments in Sections
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0007| 7-27-5.1 and 7-27-5.6 NMSA 1978 shall be those intended to provide
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0008| maximum income to the fund and shall be referred to as the market rate
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0009| investments. The investments permitted in Sections 7-27-5.3 through 7-27-5.5, 7-27-5.13 through 7-27-5.17, 7-27-5.22 and 7-27-23 NMSA 1978
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0010| shall be those intended to stimulate the economy of New Mexico and shall
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0011| be referred to as the differential rate investments. The prudent man
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0012| rule shall be applied to the market rate investments, and the state
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0013| investment officer shall keep separate records of the earnings of the
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0014| market rate investments. All transactions entered into on or after July
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0015| 1, 1991 shall be accounted for in accordance with generally accepted
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0016| accounting principles."
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0017| Section 3. A new section of the Severance Tax Bonding Act,
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0018| Section 7-27-5.23 NMSA 1978, is enacted to read:
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0019| "7-27-5.23. SEVERANCE TAX PERMANENT FUND--INVESTMENT IN
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0020| OBLIGATIONS ISSUED FOR STATE CAPITOL BUILDINGS AND RENOVATIONS.--Subject
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0021| to the approval of the state investment council, the severance tax
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0022| permanent fund may be invested in revenue bonds issued by the New Mexico
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0023| finance authority for state capitol buildings and relocation-associated
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0024| renovations in the state capitol. The amount invested shall not exceed
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0025| eighteen million dollars ($18,000,000)."
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0001| Section 4. Section 15-3-24 NMSA 1978 (being Laws 1972, Chapter
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0002| 74, Section 4, as amended) is amended to read:
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0003| "15-3-24. CAPITOL BUILDINGS REPAIR FUND--CREATION--
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0004| EXPENDITURES.--
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0005| A. The "capitol buildings repair fund" is created. To this
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0006| fund shall be transferred all income, including earnings on investments,
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0007| derived from lands granted to the state by the United States congress
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0008| for legislative, executive and judicial public buildings. Two percent
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0009| of this fund shall be transferred annually to a "state capitol
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0010| maintenance fund", hereby created, as a special perpetual fund for the
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0011| upkeep and maintenance of the capitol renovation and capitol grounds.
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0012| B. The capitol buildings repair fund may be used to repair,
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0013| remodel and equip capitol buildings and adjacent lands, to repair or
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0014| replace building machinery and building equipment located in capitol
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0015| buildings and to contract for options to purchase real estate, such real
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0016| estate, if purchased, to be put to state use; provided that no more than
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0017| ten thousand dollars ($10,000) shall be expended for any single option.
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0018| Any money used for consideration in acquiring an option to purchase real
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0019| estate shall be applied against the purchase price of the real estate if
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0020| the option is exercised. No money, except for expenditures for debt
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0021| service and other obligations related to bonds payable from the capitol
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0022| buildings repair fund issued by the New Mexico finance authority, shall
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0023| be expended from the capitol buildings repair fund without authorization
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0024| of the state board of finance.
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0025| C. In the event any capital outlay project exceeds
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0001| authorized project cost by no more than five percent, the state board of
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0002| finance may authorize the property control division of the general
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0003| services department to supplement the authorized cost by an allocation
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0004| not to exceed five percent of the authorized cost from the capitol
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0005| buildings repair fund to the extent of the unencumbered and unexpended
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0006| balance of the fund."
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0007| Section 5. EFFECTIVE DATE.--The effective date of the provisions
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0008| of this act is January 1, 1997.
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0009|
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0010| HB
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0011| 730
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0012| Page
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