HOUSE BILL 308
56th legislature - STATE OF NEW MEXICO - second session, 2024
INTRODUCED BY
Derrick J. Lente
AN ACT
RELATING TO GENERAL OBLIGATION BONDS; AUTHORIZING THE ISSUANCE AND SALE OF CAPITAL PROJECTS GENERAL OBLIGATION BONDS TO MAKE CAPITAL EXPENDITURES FOR SENIOR CITIZEN FACILITY IMPROVEMENTS, CONSTRUCTION AND ACQUISITIONS, FOR LIBRARY ACQUISITIONS, FOR CAPITAL IMPROVEMENTS AND ACQUISITIONS AT INSTITUTIONS OF HIGHER EDUCATION, STATE SPECIAL SCHOOLS AND TRIBAL SCHOOLS AND FOR PUBLIC SAFETY RADIO COMMUNICATION IMPROVEMENTS STATEWIDE; PROVIDING FOR A PROPERTY TAX LEVY FOR PAYMENT OF PRINCIPAL OF, INTEREST ON AND CERTAIN COSTS RELATED TO THE BONDS; REQUIRING APPROVAL OF THE REGISTERED VOTERS AT THE 2024 GENERAL ELECTION OF THE STATE; DECLARING AN EMERGENCY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. SHORT TITLE.--This act may be cited as the "2024 Capital Projects General Obligation Bond Act".
SECTION 2. PURPOSE.--For the purpose of providing funds for capital expenditures as authorized in the 2024 Capital Projects General Obligation Bond Act, general obligation indebtedness of the state is authorized for the purposes and in the amounts set forth in Section 10 of that act.
SECTION 3. BOND TERMS.--
A. The state board of finance, except as limited by the 2024 Capital Projects General Obligation Bond Act, shall determine the terms, covenants and conditions of bonds issued pursuant to that act, including:
(1) date or dates of issue, denominations and maturities;
(2) principal amounts;
(3) rate or rates of interest; and
(4) provisions for redemption, including premiums, registration and refundability, whether the bonds are issued in one or more series and other covenants relating to the bonds and the issuance thereof.
B. The bonds shall be in such form as the state board of finance determines with an appropriate series designation and shall bear interest payable as set forth in the resolution of the state board of finance.
C. Payment of the principal of the bonds shall begin not more than two years after the date of their issuance, and the bonds shall mature not later than ten years after the date of their issuance. Both principal and interest shall be payable in lawful money of the United States at the office of the paying agent within or without the state as the state board of finance may direct.
D. The bonds shall be executed with the manual or facsimile signature of the governor or the state treasurer, and the seal or a facsimile of the seal of the state shall be placed on each bond, except for any series of bonds issued in book entry or similar form without the delivery of physical securities.
E. The bonds shall be issued in accordance with the provisions of the 2024 Capital Projects General Obligation Bond Act, the Supplemental Public Securities Act and the Uniform Facsimile Signature of Public Officials Act and may be issued in accordance with the Public Securities Short-Term Interest Rate Act.
F. The full faith and credit of the state is pledged for the prompt payment when due of the principal of and interest on all bonds issued and sold pursuant to the 2024 Capital Projects General Obligation Bond Act.
SECTION 4. EXPENDITURES.--The proceeds from the sale of the bonds shall be expended solely for providing money to be distributed for the purposes and in amounts not to exceed the amounts set forth in Section 10 of the 2024 Capital Projects General Obligation Bond Act and to pay expenses incurred under Section 6 of that act. Any proceeds from the sale of the bonds that are not required for the purposes set forth in Sections 6 and 10 of that act shall be used for the purpose of paying the principal of and interest on the bonds.
SECTION 5. SALE.--The bonds authorized under the 2024 Capital Projects General Obligation Bond Act shall be sold by the state board of finance at such time and in such manner and amounts as the board may elect. The bonds may be sold at private sale or at public sale, in either case at not less than par plus accrued interest to the date of delivery. If sold at public sale, the state board of finance shall publish a notice of the time and place of sale in a newspaper of general circulation in the state and may also publish the notice in a recognized financial journal outside the state. The required publications shall be made once each week for two consecutive weeks prior to the date fixed for the sale, the last publication thereof to be at least five days prior to the date of the sale. The notice shall specify the amount, denomination, maturity and description of the bonds to be offered for sale and the place, date and hour at which the sealed bids shall be received. At the time and place specified in the notice, the state board of finance shall open the bids in public and shall award the bonds to the bidder or bidders offering the best price for the bonds. The state board of finance may reject any or all bids and readvertise and may waive any irregularity in a bid. All bids, except that of the state, shall be accompanied by a deposit of two percent of the principal amount of the bonds in a form acceptable to the state board of finance. The deposit of an unsuccessful bidder shall be returned upon rejection of the bid. The state board of finance may also sell the bonds or any part of the bonds to the state treasurer or state investment officer. The state treasurer or state investment officer is authorized to purchase any of the bonds for investment. The bonds are legal investments for any person or board charged with the investment of any public funds and may be accepted as security for any deposit of public money.
SECTION 6. EXPENSES.--The expenses incurred by the state board of finance in or relating to the preparation and sale of the bonds shall be paid out of the proceeds from the sale of the bonds, and all rebate, penalty, interest and other obligations of the state relating to the bonds and bond proceeds under the Internal Revenue Code of 1986, as amended, shall be paid from earnings on bond proceeds or other money of the state, legally available for such payments.
SECTION 7. PROPERTY TAX LEVY.--To provide for the payment of the principal of and interest on the bonds issued and sold pursuant to the provisions of the 2024 Capital Projects General Obligation Bond Act, there shall be and there is hereby imposed and levied during each year in which any of the bonds are outstanding an ad valorem tax on all property in the state subject to property taxation for state purposes sufficient to pay the interest as it becomes due on the bonds, together with an amount sufficient to provide a sinking fund to pay the principal of the bonds as it becomes due, and, if permitted by law, ad valorem taxes may be collected to pay administrative costs incident to the collection of such taxes. The taxes shall be imposed, levied, assessed and collected at the times and in the manner that other property taxes for state purposes are imposed, levied, assessed and collected. It is the duty of all tax officials and authorities to cause these taxes to be imposed, levied, assessed and collected.
SECTION 8. TREASURER--DUTIES.--The state treasurer shall keep separate accounts of all money collected pursuant to the taxes imposed and levied pursuant to the provisions of the 2024 Capital Projects General Obligation Bond Act and shall use this money only for the purposes of paying the principal of and interest on the bonds as they become due and any expenses relating thereto.
SECTION 9. IRREPEALABLE CONTRACT--AUTHORITY FOR ISSUANCE.--An owner of bonds issued pursuant to the provisions of the 2024 Capital Projects General Obligation Bond Act may, either at law or in equity, by suit, action or mandamus, enforce and compel the performance of the duties required by that act of any officer or entity mentioned in that act. The provisions of that act constitute an irrepealable contract with the owners of any of the bonds issued pursuant to that act for the faithful performance of which the full faith and credit of the state is pledged. Without reference to any other act of the legislature, the 2024 Capital Projects General Obligation Bond Act is full authority for the issuance and sale of the bonds authorized in that act, and such bonds shall have all the qualities of investment securities under the Uniform Commercial Code, shall not be invalid for any irregularity or defect in the proceedings for the issuance and sale of the bonds and shall be incontestable in the hands of bona fide purchasers or holders thereof for value. All bonds issued under the provisions of that act, and the interest thereon, are exempt from taxation by the state and any subdivision or public body thereof.
SECTION 10. PROJECTS.--The proceeds from the sale of bonds issued under the provisions of the 2024 Capital Projects General Obligation Bond Act shall be distributed as
follows for the purposes and in the amounts specified:
A. for senior citizen facility improvement, construction and equipment acquisition projects to the aging and long-term services department:
(1) one hundred thousand dollars ($100,000) to purchase and install meals equipment and other equipment for the Barelas senior center in Albuquerque in Bernalillo county;
(2) one million five hundred thousand dollars ($1,500,000) for renovations to the Barelas senior center in Albuquerque in Bernalillo county;
(3) three hundred seventy-one thousand dollars ($371,000) for renovations to the Highland senior center in Albuquerque in Bernalillo county;
(4) sixty thousand dollars ($60,000) to purchase and install meals equipment and other equipment for Los Volcanes senior center in Albuquerque in Bernalillo county;
(5) one hundred eighty-one thousand dollars ($181,000) to purchase and equip vehicles for the Manzano Mesa multigenerational center in Albuquerque in Bernalillo county;
(6) ninety thousand dollars ($90,000) to purchase and install meals equipment and other equipment for the north Domingo Baca multigenerational center in Albuquerque in Bernalillo county;
(7) fifty-five thousand dollars ($55,000) to purchase and install meals equipment and other equipment for the North Valley senior center in Albuquerque in Bernalillo county;
(8) one hundred twenty thousand dollars ($120,000) to purchase and equip vehicles for the north Domingo Baca multigenerational center in Albuquerque in Bernalillo county;
(9) forty thousand dollars ($40,000) to purchase and install meals equipment and other equipment for the Palo Duro senior center in Albuquerque in Bernalillo county;
(10) seventeen thousand dollars ($17,000) to purchase and install meals equipment and other equipment for the Raymond G. Sanchez senior center in Albuquerque in Bernalillo county;
(11) three million one hundred forty-seven thousand dollars ($3,147,000) to plan, design, construct, equip and furnish the Rio Bravo senior center in Bernalillo county;
(12) twenty-three thousand dollars ($23,000) to purchase and install meals equipment and other equipment for the South Valley multipurpose senior center in Bernalillo county;
(13) forty-eight thousand dollars ($48,000) for renovations to the South Valley multipurpose senior center in Bernalillo county;
(14) seventy-two thousand dollars ($72,000) for improvements to the facility to address code compliance issues and for the purchase and installation of equipment and building systems at the Glenwood senior center in Catron county;
(15) two hundred five thousand dollars ($205,000) for improvements to the facility to address code compliance issues and for the purchase and installation of equipment and building systems at the Quemado senior center in Catron county;
(16) one hundred twenty-five thousand dollars ($125,000) for improvements to the facility to address code compliance issues and for the purchase and installation of equipment and building systems at the Reserve senior center in Catron county;
(17) seventy-two thousand dollars ($72,000) for renovations to the Reserve senior center in Catron county;
(18) one hundred fifteen thousand dollars ($115,000) to purchase and equip vehicles for the Reserve senior center in Catron county;
(19) one hundred seventy-seven thousand dollars ($177,000) to purchase and equip vehicles for the Hagerman senior center in Chaves county;
(20) fifty thousand dollars ($50,000) for renovations to the Lake Arthur senior center in Chaves county;
(21) one hundred seventy-seven thousand dollars ($177,000) to purchase and equip vehicles for the Lake Arthur senior center in Chaves county;
(22) one hundred sixty thousand dollars ($160,000) for renovations to the Midway senior center in Roswell in Chaves county;
(23) ninety-five thousand dollars ($95,000) to purchase and equip vehicles for the Midway senior center in Roswell in Chaves county;
(24) seven hundred fifteen thousand dollars ($715,000) to purchase and equip vehicles for the Roswell senior center in Chaves county;
(25) ten thousand dollars ($10,000) for improvements to the facility to address code compliance issues and for the purchase and installation of equipment and building systems at the Acoma Pueblo senior center in the Pueblo of Acoma in Cibola county;
(26) sixty-one thousand dollars ($61,000) to purchase and equip vehicles for the Acoma senior center in the Pueblo of Acoma in Cibola county;