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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; ESTABLISHING CONDITIONS FOR THE 7 REVERSION OF UNEXPENDED BALANCES; REQUIRING TRANSFERS TO THE 8 GENERAL FUND OPERATING RESERVE UNDER CERTAIN CIRCUMSTANCES; 9 CLARIFYING THE PURPOSE OF APPROPRIATIONS MADE PURSUANT TO 10 LAWS 2019, CHAPTER 277; PROVIDING CONTINGENT AUTHORIZATION TO 11 THE PUBLIC EDUCATION DEPARTMENT TO REQUEST BUDGET INCREASES 12 FOR CERTAIN CAPITAL EXPENDITURES; MAKING APPROPRIATIONS; 13 DECLARING AN EMERGENCY. 14 15 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: 16 SECTION 1. SEVERANCE TAX BONDS--AUTHORIZATIONS-- 17 APPROPRIATION OF PROCEEDS.-- 18 A. The state board of finance may issue and sell 19 severance tax bonds in compliance with the Severance Tax 20 Bonding Act in an amount not to exceed the total of the 21 amounts authorized for purposes specified in this act. The 22 state board of finance shall schedule the issuance and sale 23 of the bonds in the most expeditious and economical manner 24 possible upon a finding by the board that the project has 25 been developed sufficiently to justify the issuance and that HTRC/HB 349/a Page 1 1 the project can proceed to contract within a reasonable time. 2 The state board of finance shall further take the appropriate 3 steps necessary to comply with the federal Internal Revenue 4 Code of 1986, as amended. Proceeds from the sale of the 5 bonds are appropriated for the purposes specified in this 6 act. 7 B. The agencies named in this act shall certify to 8 the state board of finance when the money from the proceeds 9 of the severance tax bonds appropriated in this section is 10 needed for the purposes specified in the applicable section 11 of this act. If an agency has not certified the need for 12 severance tax bond proceeds for a particular project by the 13 end of fiscal year 2022, the authorization for that project 14 is void. 15 C. Before an agency may certify for the need of 16 severance tax bond proceeds, the project must be developed 17 sufficiently so that the agency reasonably expects to: 18 (1) incur within six months after the 19 applicable bond proceeds are available for the project a 20 substantial binding obligation to a third party to expend at 21 least five percent of the bond proceeds for the project; and 22 (2) spend at least eighty-five percent of 23 the bond proceeds within three years after the applicable 24 bond proceeds are available for the project. 25 D. Except as otherwise specifically provided by HTRC/HB 349/a Page 2 1 law: 2 (1) the unexpended balance from the proceeds 3 of severance tax bonds appropriated in this act for a project 4 shall revert to the severance tax bonding fund no later than 5 the following dates: 6 (a) for a project for which severance 7 tax bond proceeds were appropriated to match federal grants, 8 six months after completion of the project; 9 (b) for a project for which severance 10 tax bond proceeds were appropriated to purchase vehicles, 11 including emergency vehicles and other vehicles that require 12 special equipment; heavy equipment; books; educational 13 technology; or other equipment or furniture that is not 14 related to a more inclusive construction or renovation 15 project, at the end of the fiscal year two years following 16 the fiscal year in which the severance tax bond proceeds were 17 made available for the purchase; and 18 (c) for any other project for which 19 severance tax bonds were appropriated, within six months of 20 completion of the project, but no later than the end of 21 fiscal year 2024; and 22 (2) all remaining balances from the proceeds 23 of severance tax bonds appropriated for a project in this act 24 shall revert to the severance tax bonding fund three months 25 after the latest reversion date specified for that type of HTRC/HB 349/a Page 3 1 project in Paragraph (1) of this subsection. 2 E. Except for appropriations to the capital 3 program fund, money from severance tax bond proceeds provided 4 pursuant to this act shall not be used to pay indirect 5 project costs. 6 F. Except for a project that was originally funded 7 using a tax-exempt loan or bond issue, a project involving 8 repayment of debt previously incurred shall be funded through 9 the issuance of taxable severance tax bonds with a term that 10 does not extend beyond the fiscal year in which they are 11 issued. 12 G. For the purpose of this section, "unexpended 13 balance" means the remainder of an appropriation after 14 reserving for unpaid costs and expenses covered by binding 15 written obligations to third parties. 16 SECTION 2. GENERAL FUND AND OTHER FUND APPROPRIATIONS-- 17 LIMITATIONS--REVERSIONS.-- 18 A. Except as otherwise specifically provided by 19 law: 20 (1) the unexpended balance of an 21 appropriation made in this act from the general fund or other 22 state funds shall revert no later than the following dates: 23 (a) for a project for which an 24 appropriation was made to match federal grants, six months 25 after completion of the project; HTRC/HB 349/a Page 4 1 (b) for a project for which an 2 appropriation was made to purchase vehicles, including 3 emergency vehicles and other vehicles that require special 4 equipment; heavy equipment; books; educational technology; or 5 other equipment or furniture that is not related to a more 6 inclusive construction or renovation project, at the end of 7 the fiscal year two years following the fiscal year in which 8 the appropriation was made for the purchase; and 9 (c) for any other project for which an 10 appropriation was made, within six months of completion of 11 the project, but no later than the end of fiscal year 2024; 12 and 13 (2) all remaining balances from an 14 appropriation made in this act for a project shall revert 15 three months after the latest reversion date specified for 16 that type of project in Paragraph (1) of this subsection. 17 B. Except for appropriations to the capital 18 program fund, money from appropriations made in this act 19 shall not be used to pay indirect project costs. 20 C. Except as provided in Subsection E of this 21 section, the balance of an appropriation made from the 22 general fund shall revert in the time frame set forth in 23 Subsection A of this section to the capital projects fund. 24 D. Except as provided in Subsection E of this 25 section, the balance of an appropriation made from other HTRC/HB 349/a Page 5 1 state funds shall revert in the time frame set forth in 2 Subsection A of this section to the originating fund. 3 E. The balance of an appropriation made from the 4 general fund or other state funds to the Indian affairs 5 department or the aging and long-term services department for 6 a project located on lands of an Indian nation, tribe or 7 pueblo shall revert in the time frame set forth in Subsection 8 A of this section to the tribal infrastructure project fund. 9 F. For the purpose of this section, "unexpended 10 balance" means the remainder of an appropriation after 11 reserving for unpaid costs and expenses covered by binding 12 written obligations to third parties. 13 SECTION 3. FUNDING EXCEEDING TOTAL PROJECT 14 COST--GENERAL FUND OVERAGE TO OPERATING RESERVE.--Prior to 15 any general fund money appropriated in this act being 16 available for expenditure, the department of finance and 17 administration and the legislative council service shall 18 determine those capital improvement projects for which 19 legislative appropriations, in combination with all other 20 funding sources, exceed the total cost for those projects. 21 If capital improvement projects funded with general fund 22 appropriations are found to be in excess of the total project 23 cost, the department shall not allow that overage to be 24 encumbered. The department shall transfer all amounts of 25 general fund appropriations in this act that are in excess of HTRC/HB 349/a Page 6 1 total project costs to the general fund operating reserve 2 prior to July 1, 2020. 3 SECTION 4. ADMINISTRATIVE OFFICE OF THE COURTS 4 PROJECTS--SEVERANCE TAX BONDS.--Pursuant to the provisions of 5 Section 1 of this act, upon certification by the 6 administrative office of the courts that the need exists for 7 the issuance of the bonds, the following amounts are 8 appropriated to the administrative office of the courts for 9 the following purposes: 10 1. one hundred four thousand dollars ($104,000) to 11 plan, design and construct a magistrate court judicial center 12 in Curry county; 13 2. four hundred sixty-nine thousand dollars 14 ($469,000) to plan, design and construct a magistrate court 15 building in Anthony in Dona Ana county; 16 3. four hundred thirty thousand dollars ($430,000) 17 for planning and design of a new magistrate court in 18 Bernalillo in Sandoval county; and 19 4. six hundred seventy-one thousand dollars 20 ($671,000) to upgrade proprietary security and camera systems 21 to enterprise-class information technology security and 22 camera systems in magistrate courts statewide.
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