COLLEGE DISTRICT LEASE-PURCHASE AGREEMENTS
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SB 322 — COLLEGE DISTRICT LEASE-PURCHASE AGREEMENTS
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✓Introduced
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✓In Committee
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✓Passed Senate
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✓Passed House
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✓To Executive
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6Enacted
This bill has been enacted into law. Introduced January 23, 2019. Enacted.
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Enacted
Current position in the legislative process.
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1 sponsor
1 primary, 0 co-sponsors signed on.
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Passed 1 recorded vote so far.
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Bill Text
What changed in the latest version
339 added · 506 removedPlain-language change summary
The recent amendments to Bill SB 322 update the definitions relevant to the College District Tax Act and introduce provisions for lease-purchase arrangements specific to college districts. This change aims to provide greater clarity and flexibility in how college districts manage and fund their operations. By explicitly outlining these lease-purchase options, the bill may improve financial planning for educational institutions, ultimately benefiting students and the community. Additionally, it includes a statement for a liberal interpretation of the law, which can enhance its applicability.
SENATE BILL 322 54TH LEGISLATURE - STATEOFNEWMEXICO- FIRST SESSION, 2019 INTRODUCED BY John M.
Sapien Pursuant to House Rule 24-1, this document incorporates amendments that have been adopted prior to consideration of this measure by the House.
It is a tool to show the amendments in context and is not to be used for the purpose of amendments.
AMENDING THE COLLEGE DISTRICT TAX h ACT;
PROVIDING FOR LEASE-PURCHASE g o ARRANGEMENTS FOR COLLEGE DISTRICTS;
PROVIDING FOR LIBERAL t hr g e i k INTERPRETATION AND SEVERABILITY;
h7 r i s h , t, BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
e u g e b l e e h SECTION 1.
Section 21-2A-2 NMSA 1978 (being Laws 1995, n d d i = = o h Chapter 224, Section 8) is amended to read:
l ] b ,d i a º e "21-2A-2.
DEFINITIONS.--As used in the College District r i = r t e w d m a n o Tax Act:
dA. m :
b e d s º o t n = .211681.4 s k m e e a n e d r e l u [ A d A.
"college" means a two-year, public post-post-secondary secondary educational institution organized pursuant to the provisions of the Community College Act, Chapter 21, Article 14 NMSA 1978, the Technical and Vocational Institute Act [Chapter 21, Article 17 NMSA 1978] or the Off-Campus Instruction Act;
[and ] C.
"debt" means an obligation payable from ad valorem property tax revenues or the general fund of a college district and that may be secured by the full faith SB 322 Page 1 and credit of a college district and a pledge of its taxing powers;
h E.
"education technology equipment" means tools u » r used in the educational process that constitute learning and t h g e l i administrative resources and may include:
h r i s (1) closed-circuit television systems;
h , e h educational television and radio broadcasting;
cable t u g e b l e e , gh television, satellite, copper and fiber-optic transmission;
n d d i = = o h computer, network connection devices;
digital communications l ] b ,d i a º r equipment, including voice, video and data;
e r = t e w d m a n o portable media such as discs and drives to contain data for delectronic mstorage :and playback;
b r e t º o t n = .211681.4 s k m e - 2 - e a n e d r e l u [ A d electronic storage and playback;
and (3) expenditures for technical support and training expenses of college district employees who administer education technology projects funded by a lease-purchase arrangement and may include training by SB 322 Page 2 contractors;
"lease-purchase arrangement" means a financing arrangement constituting debt of a college district pursuant to h which periodic lease payments composed of principal and u » r interest components are to be paid to the holder of the lease-lease-purchase t h g e l i purchase arrangement and pursuant to which the owner of the h r i s education technology equipment may retain title to or a h , e h security interest in the equipment and may agree to release the t u g e b l e e , gh security interest or transfer title to the equipment to the n d d i = = o h college district for nominal consideration after payment of the l ] b ,d i a º r final periodic lease payment.
"Lease-purchase arrangement" ealso rmeans =any tdebt eof wthe dcollege mdistrict aincurred nfor othe alsopurpose meansof anyacquiring debteducational oftechnology theequipment collegewhether districtdesignated incurredas fora general obligation lease, note or other instrument evidencing a debt of the dcollege mdistrict." :SECTION 2.
b r e t º o t n = .211681.4 s k m e - 3 - e a n e d r e l u [ A d purpose of acquiring educational technology equipment whether designated as a general obligation lease, note or other instrument evidencing a debt of the college district." SECTION 2.
"[NEW"COLLEGE MATERIAL ] COLLEGE DISTRICT LEASE-PURCHASE ARRANGEMENTS--NOTICE--PROCESSARRANGEMENTS--NOTICE-- PROCESS FOR APPROVING LEASE-PURCHASE ARRANGEMENTS--LIMITATION OF ACTION.-- A.
When a college district contemplates entering into a lease-purchase arrangement payable in whole or in part from ad valorem taxes, the board, before initiating any proceedings for approval of such lease-purchase arrangement, SB 322 Page 3 shall forward to the higher education department a written notice of the proposed lease-purchase arrangement.
The higher education department, upon the receipt of the notice provided for in Subsection A of this h section, shall furnish all necessary information with reference u » r to the valuation, present outstanding bonded indebtedness, t h g e l i present outstanding lease-purchase arrangements and limitations h r i s as to tax rates and debt contracting power and other h , e h information useful to the board in the consideration of a t u g e b l e e , gh proposed lease-purchase arrangement.
Upon entering into a n d d i = = o h lease-purchase arrangement, the board shall prepare two true l ] b ,d i a º r and complete transcripts of proceedings relating to the lease-lease-purchase earrangement, rone =to tbe eimmediately wfiled dwith mthe ahigher neducation odepartment purchaseand arrangement, one to be immediatelykept filedby with the dboard. m :
b r e t º o t n = .211681.4 s k m e - 4 - e a n e d r e l u [ A d higher education department and one to be kept by the board.
(4) identify the source of funds for the SB 322 Page 4 payment of debt;
(5) if all or part of the funds needed require or anticipate the imposition of SFCºan and an»SFC ad valorem tax, determine the estimated rate of the ad valorem tax and what, if any, the percentage increase in ad valorem taxes for all h taxable property in the college district would be;
g o t hr (6) set a date for a meeting to consider a g e i k resolution granting final approval to the lease-purchase h r i s arrangement;
and h , t, (7) direct that notice of the meeting provided e u g e b l e e h for in Paragraph (6) of this subsection be published once each n d d i = = o h week for the two weeks immediately preceding the meeting in a l ] b ,d i a º e newspaper having general circulation in the college district r i = r t e w d m a n o and that the notice include the information required in dParagraphs m(1) :through (5) of this subsection.
b e d s º o t n = .211681.4 s k m e - 5 - e a n e d r e l u [ A d Paragraphs (1) through (5) of this subsection.
At a meeting scheduled pursuant to Paragraph (6) of Subsection C of this section, the board may adopt a final resolution approving the lease-purchase arrangement SB 322 Page 5 only by an affirmative vote of a majority of all members of the board.
Show all 79 changed lines (39 more)
After the adoption by the board of a final resolution approving the lease-purchase arrangement or after the final approval of a lease-purchase arrangement by delegation as provided for in Subsection D of this section, the h board shall publish notice of the adoption of the resolution or u » r the approval of the lease-purchase arrangement once in a t h g e l i newspaper SFCºhaving of having»SFC general circulation in the college h r i s district.
After the passage of thirty days from the h , e h publication required by this subsection, any action attacking t u g e b l e e , gh the validity of the proceedings taken by the board preliminary n d d i = = o h to, in the authorization of and entering into the lease-lease-purchase l ] b ,d i a º r purchase arrangement described in the notice is perpetually e r = t e w d m a n o barred." dSECTION m3. :
b r e t º o t n = .211681.4 s k m e - 6 - e a n e d r e l u [ A d SECTION 3.
"[NEW"COLLEGE MATERIAL] COLLEGE DISTRICT LEASE-PURCHASE ARRANGEMENTS--TAXARRANGEMENTS-- TAX LEVY--TERMS OF LEASE-PURCHASE ARRANGEMENTS--ARRANGEMENTS--REFUNDING REFUNDING OR REFINANCING.-- A.
Annual payments due on lease-purchase SB 322 Page 6 arrangements may be combined with other college district general obligation debt when determining the annual debt service tax levy pursuant to Section 7-37-8 NMSA 1978 and the College District Tax Act.
provided, however, that this h limitation may be exceeded in any year in which the valuation u » r of property in the college district declines to a level lower t h g e l i than the valuation of property in the year in which the h r i s applicable debt was issued.
Nothing in the College District h , e h Tax Act shall be so construed as to prevent a college district t u g e b l e e , gh from applying any other legally available funds, including n d d i = = o h funds that may be in its general fund or investment income l ] b ,d i a º r actually received from investments, to the payments due on or eany rprepayment =premium tpayable ein wconnection dwith msuch alease-purchase narrangements oas anythe prepaymentsame premiumbecome payabledue, and, upon such payments, the levy or levies provided for in connectionthis withsection suchmay, lease-to dthat mextent, :be reduced.
b r e t º o t n = .211681.4 s k m e - 7 - e a n e d r e l u [ A d purchase arrangements as the same become due, and, upon such payments, the levy or levies provided for in this section may, to that extent, be reduced.
(2) be subject to prior redemption or prepayment at the option of the board at such time or times and upon such terms and conditions with or without the SB 322 Page 7 payment of such premium or premiums as may be determined by the board;
h (5) be priced at, above or below par and at a u » r price that results in a net effective interest rate that does t h g e l i not exceed the maximum permitted by the Public Securities Act;
h r i s and h , e h (6) be sold or issued at public sale, t u g e b l e e , gh negotiated sale or private sale to the New Mexico finance n d d i = = o h authority.
l ] b ,d i a º r C.
The board shall not adopt a resolution for or eapprove ra =lease-purchase tarrangement ethat wexceeds dfive myears or creates a ntotal ogeneral approveobligation aindebtedness lease-purchasein arrangementthe thatcollege district which, when combined with other outstanding college district general obligation debt, exceeds fivethree yearspercent orof dthe massessed :valuation of the taxable property within the college district as shown in the preceding general assessment.
bD. r e t º o t n = .211681.4 s k m e - 8 - e a n e d r e l u [ A d creates a total general obligation indebtedness in the college district which, when combined with other outstanding college district general obligation debt, exceeds three percent of the assessed valuation of the taxable property within the college district as shown in the preceding general assessment SFCº , which debt limitation is to be in excess of other existing debt limitations.
.»SFCCollege D.districts are authorized to enter into lease-purchase arrangements for the purpose of refunding or SB 322 Page 8 refinancing any lease-purchase arrangements then outstanding, including the payment of any prepayment of redemption premiums thereon and any interest accrued or to accrue to the date of purchase, prepayment, redemption or maturity of the outstanding lease-purchase arrangements.
CollegeUntil districtsthe areproceeds authorizedof tothe enter into lease-purchase arrangements issued for the purpose of refunding or refinancing anyoutstanding lease-purchase arrangements thenare outstanding,applied includingto the paymentpurchase, ofprepayment, any prepayment of redemption premiumsor thereonretirement andof anythe interestoutstanding accruedlease-purchase orarrangements, to accrue to the dateproceeds ofmay purchase,be prepayment,placed redemptionin orescrow maturityand ofinvested theand outstandingreinvested. lease-purchase arrangements.
UntilThe theinterest, proceedsincome ofand theprofits, lease-if purchaseany, arrangementsearned issuedor forrealized theon purposeany ofsuch refundinginvestment ormay, refinancingin outstandingthe lease-purchasediscretion arrangementsof arethe appliedboard, halso be applied to the purchase,payment prepayment, redemption or retirement of the u » r outstanding lease-purchase arrangements,arrangements theto proceeds may be trefunded hor grefinanced eby lpurchase, iprepayment, placedredemption inor escrowretirement, andas investedthe andcase reinvested.may be.
TheAfter interest,the hterms rof ithe sescrow incomehave andbeen profits,fully ifsatisfied any,and earnedcarried orout, realizedany onbalance anyof such hproceeds ,and einterest, hif investmentany, may,earned inor therealized discretionon of the board,investments alsothereof may be appliedreturned t u g e b l e e , gh to the paymentboard of the outstanding lease-purchase arrangements n d d i = = o h to be refundedused orfor refinancedpayment byof purchase,the prepayment,refunding l ] b ,d i a º r redemption or retirement,refinancing aslease-purchase thearrangement. case may be.
AfterAll thesuch termsrefunding eor rrefinancing =lease-purchase tarrangements eshall wbe dentered minto aunder, nsecured oand subject to the provisions of the escrowCollege haveDistrict beenTax fullyAct satisfiedin the same manner and carriedto out,the same extent as any dother mlease-purchase :arrangements entered into pursuant to that act." SB 322 Page 9 SECTION 4.
b r e t º o t n = .211681.4 s k m e - 9 - e a n e d r e l u [ A d balance of such proceeds and interest, if any, earned or realized on the investments thereof may be returned to the board to be used for payment of the refunding or refinancing lease-purchase arrangement.
All such refunding or refinancing lease-purchase arrangements shall be entered into under, secured and subject to the provisions of the College District Tax Act in the same manner and to the same extent as any other lease-purchase arrangements entered into pursuant to that act." SECTION 4.
"[NEW"COLLEGE MATERIAL ] COLLEGE DISTRICT LEASE-PURCHASE ARRANGEMENTS--AGREEMENT OF THE STATE--LEGAL INVESTMENTS--TAX EXEMPTION--CUMULATIVE AND COMPLETE AUTHORITY.-- A.
The state does hereby pledge to and agree with the holders of any lease-purchase arrangement entered into pursuant to the College District Tax Act that the state will h not limit or alter the rights hereby vested in college u » r districts to fulfill the terms of any lease-purchase t h g e l i arrangement or in any way impair the rights and remedies of the h r i s holders of lease-purchase arrangements until the payments due h , e h thereon, and all costs and expenses in connection with any t u g e b l e e , gh action or proceedings by or on behalf of those holders, are n d d i = = o h fully met and discharged.
College districts are authorized to l ] b ,d i a º r include this pledge and agreement of the state in any lease-lease-purchase e r = t e w d m a n o purchase arrangement.
dB. m :
b r e t º o t n = .211681.4 s k m e - 10 - e a n e d r e l u [ A d B.
The state covenants with the purchasers and all SB 322 Page 10 subsequent holders and transferees of lease-purchase arrangements entered into by boards, in consideration of the acceptance of and payment for the lease-purchase arrangements entered into pursuant to the College District Tax Act, that lease-purchase arrangements and the income from the lease- purchase arrangements shall at all times be free from taxation by the state, except for estate or gift taxes and taxes on transfers.
h D.
The College District Tax Act shall be deemed to u » r provide an additional and alternative method for acquiring t h g e l i educational technology equipment and shall be regarded as h r i s supplemental and additional to powers conferred by other laws h , e h and shall not be regarded as a derogation of any powers now t u g e b l e e , gh existing.
The College District Tax Act shall be deemed to n d d i = = o h provide complete authority for acquiring educational technology l ] b ,d i a º r equipment and entering into lease-purchase arrangements.
No eother rapproval =of tany estate wagency dor mofficer, aexcept nas oprovided otherin approvalthat act, shall be required with respect to any lease-purchase arrangements, and the board acting pursuant to provisions of that act need not comply with the requirements of any stateother agencylaw orapplicable officer,to exceptthe asissuance dof mdebt :by college districts;
b r e t º o t n = .211681.4 s k m e - 11 - e a n e d r e l u [ A d provided in that act, shall be required with respect to any lease-purchase arrangements, and the board acting pursuant to provisions of that act need not comply with the requirements of any other law applicable to the issuance of debt by college districts;
and provided SB 322 Page 11 further that the board shall abide by the vote of the majority of those persons voting on the question." SECTION 5.
"[NEW"LIBERAL MATERIAL ] LIBERAL INTERPRETATION.--The College District Tax Act, being necessary for the welfare of the state and its inhabitants, shall be liberally construed to the effect of the purposes of the act." SECTION 6.
A new section of the College District Tax Act h is enacted to read:
u"SEVERABILITY.--If » r "[NEW MATERIAL ] SEVERABILITY.--If any part or application t h g e l i of the College District Tax Act is held invalid, the remainder h r i s or its application to other situations or persons shall not be h , e h affected." t u g e b l e e , gh SECTION 7.
EMERGENCY.--It is necessary for the public n d d i = = o h peace, health and safety that this act take effect immediately.
lSB ]322 bPage ,d i a º r - 12 -25 e r = t e w d m a n o d m :
b r e t º o t n = .211681.4 s k m e e a n e d r e l u [ A d
Show all 79 changed rows (39 more)
View plain text versions (3)
- Final Version View text Current pdf
- Amended Amendments in Context pdf
- Introduced introduced version pdf
Action History
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Signed
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passed House
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DO PASS committee report adopted
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DO PASS committee report adopted
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Sent to House Education Committee & House Taxation & Revenue Committee
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passed Senate
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DO PASS, as amended, committee report adopted
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DO PASS committee report adopted
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Sent to Senate Corporations and Transportation Committee & Senate Finance Committee
Sponsors
- John M. Sapien · Primary
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 0 co-sponsors · 111 not signed on · 3 voted No
Sponsors (1)
- Sapien, John M.
Co-sponsors (0)
None.
Not signed on (111)
111 members have not signed on to this bill.
Show all 111 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Votes
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 17 | 7 | 0 | 0 |
| Democrat | 12 | 0 | 0 | 0 |
| Republican | 2 | 3 | 0 | 1 |
| Total | 31 | 10 | 0 | 1 |
| % of votes cast | 74% | 24% | 0% | 2% |
How each member voted (42)
| Member | Party | Vote |
|---|---|---|
| PAPEN | — | Yea |
| BURT | — | Yea |
| CANDELARIA | — | Yea |
| RODRIGUEZ | — | Yea |
| CISNEROS | — | Yea |
| RUE | — | Yea |
| SANCHEZ | — | Yea |
| GOULD | — | Yea |
| SAPIEN | — | Yea |
| GRIGGS | — | Yea |
| SEDILLO-LOPEZ | — | Yea |
| IVEY-SOTO | — | Yea |
| KERNAN | — | Yea |
| SMITH | — | Yea |
| TALLMAN | — | Yea |
| O'NEILL | — | Yea |
| PAYNE | — | Nay |
| PIRTLE | — | Nay |
| FULFER | — | Nay |
| INGLE | — | Nay |
| MOORES | — | Nay |
| NEVILLE | — | Nay |
| WHITE | — | Nay |
| ORTIZ y PINO | — | Yea |
| Antoinette Sedillo Lopez | Democrat | Yea |
| Benny Shendo, Jr. | Democrat | Yea |
| Elizabeth "Liz" Stefanics | Democrat | Yea |
| George K. Muñoz | Democrat | Yea |
| Jeff Steinborn | Democrat | Yea |
| Joseph Cervantes | Democrat | Yea |
| Michael Padilla | Democrat | Yea |
| Mimi Stewart | Democrat | Yea |
| Pete Campos | Democrat | Yea |
| Peter Wirth | Democrat | Yea |
| Shannon D. Pinto | Democrat | Yea |
| William P. Soules | Democrat | Yea |
| Alan T. Martinez | Republican | Yea |
| Brian G. Baca | Republican | Nay |
| Craig W. Brandt | Republican | Nay |
| Gabriel Ramos | Republican | Yea |
| Pat Woods | Republican | Not Voting |
| William E. Sharer | Republican | Nay |
Subjects
Frequently asked questions
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- SB 322 is sponsored by Sapien, John M..
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- This bill has been enacted into law. Introduced January 23, 2019. Enacted.
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