SB 217 — SEVERANCE TAX BOND FUND DISTRIBUTIONS

SENATEAN BILLACT 217RELATING 56THTO LEGISLATURESEVERANCE -TAX STATEBONDING; OF NEW MEXICO - SECOND SESSION , 2024 INTRODUCED BY Nancy Rodriguez This document may incorporate amendments proposed by a committee, but not yet adopted, as well as amendments that have been adopted during the current legislative session.

ThePROVIDING documentFOR isA aMINIMUM toolDISTRIBUTION toFROM showTHE amendmentsSEVERANCE inTAX contextBONDING andFUND cannotTO beTHE usedSEVERANCE forTAX thePERMANENT purposeFUND ofEVERY addingYEAR amendmentsFOR toNINE legislation.YEARS;

hLIMITING ANTHE ACTAMOUNT gOF oSUPPLEMENTAL RELATING TO SEVERANCE TAX BONDING;BONDS OR NOTES ISSUED IN 2024.

PROVIDING8 FORBE AIT MINIMUMENACTED tBY hr g e i k DISTRIBUTION FROM THE SEVERANCELEGISLATURE TAXOF BONDING FUND TO THE hSTATE rOF iNEW sMEXICO: SEVERANCE TAX PERMANENT FUND EVERY YEAR FOR SFCº TEN»SFC h , t, SFCºNINE»SFC YEARS;

LIMITINGSECTION THE1. AMOUNT OF SUPPLEMENTAL e u g e b l e e h SEVERANCE TAX BONDS OR NOTES ISSUED IN 2024.

nSection d7-27-10 dNMSA i1978 =(being =Laws o1961, hChapter l5, ]Section b8, ,das iamended) ais ºamended eto BEread: IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

r i = r t e w d m a n o SECTION 1.

Section 7-27-10 NMSA 1978 (being Laws 1961, d m :

b e d s º o t n = .227177.2AIC February 10, 2024 (3:56pm) s k m e e a n e d r e l u [ A d Chapter 5, Section 8, as amended) is amended to read:

As a temporary measure for fiscal year 2023, the state board of finance shall not issue and sell more than six hundred eighty-eighty-two two million two hundred thousand dollars ($682,200,000) of supplemental severance tax bonds or notes.

The state board of finance may issue and sell SB 217 supplemental severance tax bonds within the provisions of the hPage 1 Severance Tax Bonding Act, and no other agency of the state is u » r authorized to issue or sell supplemental severance tax bonds.

t h g e l i As a temporary measure for fiscal year 2024, the state board of h r i s finance shall not issue and sell more than seven hundred h , e h fifty-seven million dollars ($757,000,000) of supplemental t u g e b l e e , gh severance tax bonds or notes." n d d i = = o h SECTION 2.

A new section of the Severance Tax Bonding l ] b ,d i a º r Act, Section 7-27-10.3 NMSA 1978, is enacted to read:

e r = t e w d m a n o "7-27-10.3.

[NEW MATERIAL ] TRANSFER TO SEVERANCE TAX dPERMANENT mFUND :BEFORE DETERMINING BONDING CAPACITY.--On December 31 of each year from 2024 through 2033, the board of finance division of the department of finance and administration shall transfer eighty-two million dollars ($82,000,000) from the severance tax bonding fund to the severance tax permanent fund, unless the state board of finance determines that a lesser transfer amount is necessary pursuant to Section 7-27-8 NMSA 1978 to avoid a potential shortfall in debt service obligations." SB 217 Page 2 25

b r e t º o t n = .227177.2AIC February 10, 2024 (3:56pm) s k m e - 2 - e a n e d r e l u [ A d PERMANENT FUND BEFORE DETERMINING BONDING CAPACITY.--On December 31 of each year from 2024 through SFCº 2034»SFC SFCº2033»SFC , the board of finance division of the department of finance and administration shall transfer SFCºeighty-two million five hundred thirty thousand dollars ($82,530,000)»SFC SFCºeighty-two million dollars ($82,000,000)»SFC from the severance tax bonding fund to the severance tax permanent fund, unless the state board of finance determines that a lesser transfer amount is necessary pursuant to Section 7-27-8 NMSA to avoid a potential shortfall in debt service obligations." - 3 - » g o » r h t i k l i g t h s , e h t l i w l b l e e , gh n d l h = = b , a l º d i a r e r = , a t e d m a n o d m :

b r e t º o t n = .227177.2AIC February 10, 2024 (3:56pm) s k m e e a n e d r e l u [ A d