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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 An 1 AN ACT 2 RELATING TO CAPITAL EXPENDITURES; AUTHORIZING THE ISSUANCE OF 3 SEVERANCE TAX BONDS; AUTHORIZING EXPENDITURES FROM CERTAIN 4 FUNDS AND BALANCES; CLARIFYING CONDITIONS FOR THE ISSUANCE OF 5 BONDS; ESTABLISHING CONDITIONS FOR THE EXPENDITURE OF 6 SEVERANCE TAX BOND PROCEEDS; PROVIDING CONTINGENT 7 AUTHORIZATION TO THE PUBLIC EDUCATION DEPARTMENT TO REQUEST 8 BUDGET INCREASES FOR CERTAIN CAPITAL EXPENDITURES; 9 ESTABLISHING CONDITIONS FOR THE REVERSION OF UNEXPENDED 10 BALANCES; MAKING APPROPRIATIONS; DECLARING AN EMERGENCY. 11 12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: 13 SECTION 1. SEVERANCE TAX BONDS--AUTHORIZATIONS-- 14 APPROPRIATION OF PROCEEDS.-- 15 A. The state board of finance may issue and sell 16 severance tax bonds in compliance with the Severance Tax 17 Bonding Act in an amount not to exceed the total of the 18 amounts authorized for purposes specified in this act. The 19 state board of finance shall schedule the issuance and sale 20 of the bonds in the most expeditious and economical manner 21 possible upon a finding by the board that the project has 22 been developed sufficiently to justify the issuance and that 23 the project can proceed to contract within a reasonable time. 24 The state board of finance shall further take the appropriate 25 steps necessary to comply with the federal Internal Revenue HTRC/HB 285/a Page 1 1 Code of 1986, as amended. Proceeds from the sale of the 2 bonds are appropriated for the purposes specified in this 3 act. 4 B. The agencies named in this act shall certify to 5 the state board of finance when the money from the proceeds 6 of the severance tax bonds appropriated in this section is 7 needed for the purposes specified in the applicable section 8 of this act. If an agency has not certified the need for 9 severance tax bond proceeds for a particular project by the 10 end of fiscal year 2023, the authorization for that project 11 is void. 12 C. Before an agency may certify for the need of 13 severance tax bond proceeds, the project must be developed 14 sufficiently so that the agency reasonably expects to: 15 (1) incur within six months after the 16 applicable bond proceeds are available for the project a 17 substantial binding obligation to a third party to expend at 18 least five percent of the bond proceeds for the project; and 19 (2) spend at least eighty-five percent of 20 the bond proceeds within three years after the applicable 21 bond proceeds are available for the project. 22 D. Except as otherwise specifically provided by 23 law: 24 (1) the unexpended balance from the proceeds 25 of severance tax bonds appropriated in this act for a project HTRC/HB 285/a Page 2 1 shall revert to the severance tax bonding fund no later than 2 the following dates: 3 (a) for a project for which severance 4 tax bond proceeds were appropriated to match federal grants, 5 six months after completion of the project; 6 (b) for a project for which severance 7 tax bond proceeds were appropriated to purchase vehicles, 8 including emergency vehicles and other vehicles that require 9 special equipment; heavy equipment; books; educational 10 technology; or other equipment or furniture that is not 11 related to a more inclusive construction or renovation 12 project, at the end of the fiscal year two years following 13 the fiscal year in which the severance tax bond proceeds were 14 made available for the purchase; and 15 (c) for any other project for which 16 severance tax bonds were appropriated, within six months of 17 completion of the project, but no later than the end of 18 fiscal year 2025; and 19 (2) all remaining balances from the proceeds 20 of severance tax bonds appropriated for a project in this act 21 shall revert to the severance tax bonding fund three months 22 after the latest reversion date specified for that type of 23 project in Paragraph (1) of this subsection. 24 E. Except for appropriations to the capital 25 program fund, money from severance tax bond proceeds provided HTRC/HB 285/a Page 3 1 pursuant to this act shall not be used to pay indirect 2 project costs. 3 F. Except for a project that was originally funded 4 using a tax-exempt loan or bond issue, a project involving 5 repayment of debt previously incurred shall be funded through 6 the issuance of taxable severance tax bonds with a term that 7 does not extend beyond the fiscal year in which they are 8 issued. 9 G. Money that is appropriated from the proceeds of 10 severance tax bonds pursuant to this act shall not be subject 11 to a binding written agreement with a third party prior to 12 the authorized state agency's approval to enter into that 13 agreement. 14 H. For the purposes of this section, "unexpended 15 balance" means the remainder of an appropriation after 16 reserving for unpaid costs and expenses subject to a binding 17 written agreement with a third party. 18 SECTION 2. GENERAL FUND APPROPRIATIONS--LIMITATIONS-- 19 REVERSIONS.-- 20 A. Except as otherwise specifically provided by 21 law, the unexpended balance of an appropriation made in this 22 act from the general fund shall revert: 23 (1) no later than September 30 following: 24 (a) the end of fiscal year 2022 if the 25 project for which an appropriation was made has less than HTRC/HB 285/a Page 4 1 five percent of the project's total appropriation amount 2 subject to a binding written agreement with a third party on 3 that date; 4 (b) the end of fiscal year 2023 for a 5 project for which an appropriation was made to purchase 6 vehicles, including emergency vehicles and other vehicles 7 that require special equipment; heavy equipment; books; 8 educational technology; or other equipment or furniture that 9 is not related to a more inclusive construction or renovation 10 project; or 11 (c) the end of fiscal year 2025 for a 12 project for which an appropriation was made related to an 13 inclusive construction or renovation project; or 14 (2) within six months of completion of the 15 project for any other project for which an appropriation was 16 made, but no later than the end of fiscal year 2025. 17 B. Except for appropriations to the capital 18 program fund, money from appropriations made in this act from 19 the general fund shall not be used to pay indirect project 20 costs. 21 C. Except as provided in Subsection D of this 22 section, the balance of an appropriation made from the 23 general fund shall revert in the time frame set forth in 24 Subsection A of this section to the capital projects fund. 25 D. The balance of an appropriation made from the HTRC/HB 285/a Page 5 1 general fund to the Indian affairs department or the aging 2 and long-term services department for a project located on 3 lands of an Indian nation, tribe or pueblo shall revert in 4 the time frame set forth in Subsection A of this section to 5 the tribal infrastructure project fund. 6 E. For the purposes of this section, "unexpended 7 balance" means the remainder of an appropriation after 8 reserving for unpaid costs and expenses subject to a binding 9 written agreement with a third party. 10 F. Money that is appropriated from the general 11 fund pursuant to this act shall not be subject to a binding 12 written agreement with a third party prior to the authorized 13 state agency's approval to enter into that agreement. 14 SECTION 3. FUND APPROPRIATIONS OTHER THAN GENERAL 15 FUND--LIMITATIONS--REVERSIONS.-- 16 A. Except as otherwise specifically provided by 17 law: 18 (1) the unexpended balance of an 19 appropriation from a fund other than the general fund shall 20 revert no later than the following dates: 21 (a) for a project for which an 22 appropriation was made to match federal grants, six months 23 after completion of the project; 24 (b) for a project for which an 25 appropriation was made to purchase vehicles, including HTRC/HB 285/a Page 6 1 emergency vehicles and other vehicles that require special 2 equipment; heavy equipment; books; educational technology; or 3 other equipment or furniture that is not related to a more 4 inclusive construction or renovation project, at the end of 5 the fiscal year two years following the fiscal year in which 6 the appropriation was made for the purchase; and 7 (c) for any other project for which an 8 appropriation was made, within six months of completion of 9 the project, but no later than the end of fiscal year 2025; 10 and 11 (2) all remaining balances from an 12 appropriation made in this act for a project shall revert 13 three months after the latest reversion date specified for 14 that type of project in Paragraph (1) of this subsection. 15 B. Except for appropriations to the capital 16 program fund, money from appropriations made from other state 17 funds shall not be used to pay indirect project costs. 18 C. Except as otherwise provided in Subsection D of 19 this section, the balance of an appropriation made from other 20 state funds shall revert in the time frame set forth in 21 Subsection A of this section to the originating fund. 22 D. The balance of an appropriation made from other 23 state funds to the Indian affairs department or the aging and 24 long-term services department for a project located on lands 25 of an Indian nation, tribe or pueblo shall revert in the time HTRC/HB 285/a Page 7 1 frame set forth in Subsection A of this section to the tribal 2 infrastructure project fund.
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