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55Th Legislature - State of New Mexico - First Session, 2021

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55Th Legislature - State of New Mexico - First Session, 2021 HOUSE TAXATION AND REVENUE COMMITTEE SUBSTITUTE FOR 1 HOUSE BILL 285 2 55TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 2021 3 4 5 6 7 8 9 10 AN ACT 11 RELATING TO CAPITAL EXPENDITURES; AUTHORIZING THE ISSUANCE OF 12 SEVERANCE TAX BONDS; AUTHORIZING EXPENDITURES FROM CERTAIN 13 FUNDS AND BALANCES; CLARIFYING CONDITIONS FOR THE ISSUANCE OF 14 BONDS; ESTABLISHING CONDITIONS FOR THE EXPENDITURE OF SEVERANCE 15 TAX BOND PROCEEDS; PROVIDING CONTINGENT AUTHORIZATION TO THE 16 PUBLIC EDUCATION DEPARTMENT TO REQUEST BUDGET INCREASES FOR 17 CERTAIN CAPITAL EXPENDITURES; ESTABLISHING CONDITIONS FOR THE 18 REVERSION OF UNEXPENDED BALANCES; MAKING APPROPRIATIONS; ] = delete = ] 19 DECLARING AN EMERGENCY. 20 21 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: 22 SECTION 1. SEVERANCE TAX BONDS--AUTHORIZATIONS-- 23 APPROPRIATION OF PROCEEDS.-- 24 A. The state board of finance may issue and sell underscored material = new = material underscored material [bracketed 25 severance tax bonds in compliance with the Severance Tax .220673.1 HTRC/HB 285 1 Bonding Act in an amount not to exceed the total of the amounts 2 authorized for purposes specified in this act. The state board 3 of finance shall schedule the issuance and sale of the bonds in 4 the most expeditious and economical manner possible upon a 5 finding by the board that the project has been developed 6 sufficiently to justify the issuance and that the project can 7 proceed to contract within a reasonable time. The state board 8 of finance shall further take the appropriate steps necessary 9 to comply with the federal Internal Revenue Code of 1986, as 10 amended. Proceeds from the sale of the bonds are appropriated 11 for the purposes specified in this act. 12 B. The agencies named in this act shall certify to 13 the state board of finance when the money from the proceeds of 14 the severance tax bonds appropriated in this section is needed 15 for the purposes specified in the applicable section of this 16 act. If an agency has not certified the need for severance tax 17 bond proceeds for a particular project by the end of fiscal 18 year 2023, the authorization for that project is void. ] = delete = ] 19 C. Before an agency may certify for the need of 20 severance tax bond proceeds, the project must be developed 21 sufficiently so that the agency reasonably expects to: 22 (1) incur within six months after the 23 applicable bond proceeds are available for the project a 24 substantial binding obligation to a third party to expend at underscored material = new = material underscored material [bracketed 25 least five percent of the bond proceeds for the project; and .220673.1 - 2 - HTRC/HB 285 1 (2) spend at least eighty-five percent of the 2 bond proceeds within three years after the applicable bond 3 proceeds are available for the project. 4 D. Except as otherwise specifically provided by 5 law: 6 (1) the unexpended balance from the proceeds 7 of severance tax bonds appropriated in this act for a project 8 shall revert to the severance tax bonding fund no later than 9 the following dates: 10 (a) for a project for which severance 11 tax bond proceeds were appropriated to match federal grants, 12 six months after completion of the project; 13 (b) for a project for which severance 14 tax bond proceeds were appropriated to purchase vehicles, 15 including emergency vehicles and other vehicles that require 16 special equipment; heavy equipment; books; educational 17 technology; or other equipment or furniture that is not related 18 to a more inclusive construction or renovation project, at the end of the fiscal year two years following the fiscal year in ] = delete = ] 19 20 which the severance tax bond proceeds were made available for 21 the purchase; and 22 (c) for any other project for which 23 severance tax bonds were appropriated, within six months of 24 completion of the project, but no later than the end of fiscal underscored material = new = material underscored material [bracketed 25 year 2025; and .220673.1 - 3 - HTRC/HB 285 1 (2) all remaining balances from the proceeds 2 of severance tax bonds appropriated for a project in this act 3 shall revert to the severance tax bonding fund three months 4 after the latest reversion date specified for that type of 5 project in Paragraph (1) of this subsection. 6 E. Except for appropriations to the capital program 7 fund, money from severance tax bond proceeds provided pursuant 8 to this act shall not be used to pay indirect project costs. 9 F. Except for a project that was originally funded 10 using a tax-exempt loan or bond issue, a project involving 11 repayment of debt previously incurred shall be funded through 12 the issuance of taxable severance tax bonds with a term that 13 does not extend beyond the fiscal year in which they are 14 issued. 15 G. Money that is appropriated from the proceeds of 16 severance tax bonds pursuant to this act shall not be subject 17 to a binding written agreement with a third party prior to the 18 authorized state agency's approval to enter into that ] = delete = ] 19 agreement. 20 H. For the purposes of this section, "unexpended 21 balance" means the remainder of an appropriation after 22 reserving for unpaid costs and expenses subject to a binding 23 written agreement with a third party. 24 SECTION 2. GENERAL FUND APPROPRIATIONS--LIMITATIONS-- underscored material = new = material underscored material [bracketed 25 REVERSIONS.-- .220673.1 - 4 - HTRC/HB 285 1 A. Except as otherwise specifically provided by 2 law, the unexpended balance of an appropriation made in this 3 act from the general fund shall revert: 4 (1) no later than September 30 following: 5 (a) the end of fiscal year 2022 if the 6 project for which an appropriation was made has less than five 7 percent of the project's total appropriation amount subject to 8 a binding written agreement with a third party on that date; 9 (b) the end of fiscal year 2023 for a 10 project for which an appropriation was made to purchase 11 vehicles, including emergency vehicles and other vehicles that 12 require special equipment; heavy equipment; books; educational 13 technology; or other equipment or furniture that is not related 14 to a more inclusive construction or renovation project; or 15 (c) the end of fiscal year 2025 for a 16 project for which an appropriation was made related to an 17 inclusive construction or renovation project; or 18 (2) within six months of completion of the project for any other project for which an appropriation was ] = delete = ] 19 20 made, but no later than the end of fiscal year 2025. 21 B. Except for appropriations to the capital program 22 fund, money from appropriations made in this act from the 23 general fund shall not be used to pay indirect project costs. 24 C. Except as provided in Subsection D of this underscored material = new = material underscored material [bracketed 25 section, the balance of an appropriation made from the general .220673.1 - 5 - HTRC/HB 285 1 fund shall revert in the time frame set forth in Subsection A 2 of this section to the capital projects fund. 3 D. The balance of an appropriation made from the 4 general fund to the Indian affairs department or the aging and 5 long-term services department for a project located on lands of 6 an Indian nation, tribe or pueblo shall revert in the time 7 frame set forth in Subsection A of this section to the tribal 8 infrastructure project fund. 9 E. For the purposes of this section, "unexpended 10 balance" means the remainder of an appropriation after 11 reserving for unpaid costs and expenses subject to a binding 12 written agreement with a third party. 13 F. Money that is appropriated from the general fund 14 pursuant to this act shall not be subject to a binding written 15 agreement with a third party prior to the authorized state 16 agency's approval to enter into that agreement. 17 SECTION 3. FUND APPROPRIATIONS OTHER THAN GENERAL FUND-- 18 LIMITATIONS--REVERSIONS.-- ] = delete = ] 19 A. Except as otherwise specifically provided by 20 law: 21 (1) the unexpended balance of an appropriation 22 from a fund other than the general fund shall revert no later 23 than the following dates: 24 (a) for a project for which an underscored material = new = material underscored material [bracketed 25 appropriation was made to match federal grants, six months .220673.1 - 6 - HTRC/HB 285 1 after completion of the project; 2 (b) for a project for which an 3 appropriation was made to purchase vehicles, including 4 emergency vehicles and other vehicles that require special 5 equipment; heavy equipment; books; educational technology; or 6 other equipment or furniture that is not related to a more 7 inclusive construction or renovation project, at the end of the 8 fiscal year two years following the fiscal year in which the 9 appropriation was made for the purchase; and 10 (c) for any other project for which an 11 appropriation was made, within six months of completion of the 12 project, but no later than the end of fiscal year 2025; and 13 (2) all remaining balances from an 14 appropriation made in this act for a project shall revert three 15 months after the latest reversion date specified for that type 16 of project in Paragraph (1) of this subsection. 17 B. Except for appropriations to the capital program 18 fund, money from appropriations made from other state funds shall not be used to pay indirect project costs.
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