SB 535 — CERTAIN BONDING FUND MONEY TO PERMANENT FUND

SENATEAN FINANCEACT COMMITTEERELATING SUBSTITUTETO FORSEVERANCE SENATETAX BILLBONDING; 535 54TH LEGISLATURE - STATEOFNEWMEXICO- FIRST SESSION, 2019 Pursuant to House Rule 24-1, this document incorporates amendments that have been adopted prior to consideration of this measure by the House.

ItPROVIDING isFOR aA toolMINIMUM toDISTRIBUTION showFROM theTHE amendmentsSEVERANCE inTAX contextBONDING andFUND isTO notTHE toSEVERANCE beTAX usedPERMANENT forFUND theEVERY purposeYEAR ofFOR amendments.TEN YEARS;

ANLIMITING ACTTHE hAMOUNT RELATINGOF TOSUPPLEMENTAL SEVERANCE TAX BONDING;BONDS OR NOTES ISSUED IN 2019.

PROVIDING8 FORBE AIT MINIMUMENACTED gBY o DISTRIBUTION FROM THE SEVERANCELEGISLATURE TAXOF BONDING FUND TO THE tSTATE hrOF gNEW eMEXICO: i k SEVERANCE TAX PERMANENT FUND EVERY YEAR FOR TEN YEARS;

LIMITINGSECTION h1. r i s THE AMOUNT OF SUPPLEMENTAL SEVERANCE TAX BONDS OR NOTES ISSUED h , t, IN 2019.

eSection u7-27-10 gNMSA e1978 b(being lLaws e1961, eChapter h5, nSection d8, das iamended) =is =amended oto hread: BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

l"7-27-10. ] b ,d i a º e SECTION 1.

Section 7-27-10 NMSA 1978 (being Laws 1961, r i = r t e w d m a n o Chapter 5, Section 8, as amended) is amended to read:

d m :

b e d s º o t n = .213938.1 s k m e e a n e d r e l u [ A d SFC/SB 535 "7-27-10.

As a temporary measure for fiscal year 2019, the state board of finance shall not issue and sell more than one hundred eighty-eighty-one one million eight hundred thousand dollars ($181,800,000) of supplemental severance tax bonds or notes." SECTION 2.

Section 7-27-10.1 NMSA 1978 (being Laws SFC/SB 535 2003, Chapter 134, Section 1, as amended) is amended to read:

Page 1 "7-27-10.1.

TRANSFER TO SEVERANCE TAX PERMANENT FUND h BEFORE DETERMINING BONDING CAPACITY--AUTHORIZATION FOR u » r SEVERANCE TAX BONDS--PRIORITY FOR WATER PROJECTS AND TRIBAL t h g e INFRASTRUCTURE PROJECTS.-- l i h r i s A.

Sflº By December 29 On December 31»Sfl31 of each h , e h year from 2019 through 2028, the division shall transfer t u g e b l twenty-three million six hundred ninety thousand dollars e e , gh n d d i = = o h ($23,690,000) from the severance tax bonding fund to the l ] b ,d i a º r severance tax permanent fund, unless the state board of finance e r = t e w d determines that a lesser transfer amount is necessary pursuant mto Section 7-27-8 NMSA 1978 to avoid a npotential oshortfall din mdebt :service obligations.

bB. r e t º o t n = .213938.1 s k m e - 2 - e a n e d r e l u [ A d to Section 7-27-8 NMSA 1978 to avoid a potential shortfall in debt service obligations.

[A.] B.

[B.C.

] C.

The state board of finance may issue and sell the bonds in the same manner as other severance tax bonds in an amount not to exceed the authorized SFC/SB 535 Page 2 amount provided for in this subsection.

Proceeds from the sale of the bonds are appropriated to the water h project fund in the New Mexico finance authority for the g o purposes certified by the water trust board to the state board t hr g e i k of finance.

hD. r i s [C.

]The D.division shall allocate the following percentage of the estimated bonding capacity for tribal infrastructure projects:

The(1) divisionin shall2016, allocatesix theand followingone-half hpercent; , t, percentage of the estimated bonding capacity for tribal e u g e b l infrastructure projects:

eand e(2) hin n2017 dand deach isubsequent =year, =four o h (1) in 2016, six and one-half percent;percent.

andE. l ] b ,d i a º e (2) in 2017 and each subsequent year, four and r i = r t e w d one-half percent.

m a n o d m :

b e d s º o t n = .213938.1 s k m e - 3 - e a n e d r e l u [ A d SFC/SB 535 [D.

] E.

SFC/SB 535 Page 3 Proceeds from the sale of the bonds are appropriated to the tribal infrastructure project fund for the purposes certified by the tribal infrastructure board to the state board of finance.

[E.F.

]Money F.from the severance tax bonds provided for in this section shall not be used to pay indirect project costs.

MoneyAny unexpended balance from theproceeds of severance tax bonds providedissued h for ina thiswater sectionproject shallor nota betribal usedinfrastructure project shall revert to paythe indirectseverance projecttax gbonding ofund costs.within six months of completion of the project.

AnyThe unexpendedNew balanceMexico fromfinance proceedsauthority ofshall severancemonitor taxand tensure hrproper greversions eof ithe kbond bondsproceeds issuedappropriated for a water projectprojects, orand athe tribaldepartment infrastructureof hfinance rand iadministration s project shall revertmonitor toand theensure severanceproper taxreversions bondingof fundthe withinbond hproceeds ,appropriated t,for sixtribal monthsinfrastructure ofprojects. completion of the project.

TheG. New Mexico e u g e b l e e h finance authority shall monitor and ensure proper reversions of n d d i = = o h the bond proceeds appropriated for water projects, and the l ] b ,d i a º e department of finance and administration shall monitor and r i = r t e w d ensure proper reversions of the bond proceeds appropriated for m a n o d m :

b e d s º o t n = .213938.1 s k m e - 4 - e a n e d r e l u [ A d tribal infrastructure projects.

[F.] G.

(b) the implementation of federal SFC/SB 535 Page 4 Endangered Species Act of 1973 collaborative programs;

or (e) conservation, recycling, treatment or reuse of water." -SFC/SB 5535 -Page h5 u8 »25 r t h g e l i h r i s h , e h t u g e b l e e , gh n d d i = = o h l ] b ,d i a º r e r = t e w d m a n o d m :

b r e t º o t n = .213938.1 s k m e e a n e d r e l u [ A d