A. The public school capital outlay council is authorized to certify by resolution that proceeds of supplemental severance tax bonds are needed for expenditures relating to public school capital outlay projects pursuant to the Public School Capital Outlay Act [Chapter 22, Article 24 NMSA 1978] or for the state distribution for public school capital improvements pursuant to the Public School Capital Improvements Act [Chapter 22, Article 25 NMSA 1978]. The resolution shall specify the total amount needed.

B. The state board of finance may issue and sell supplemental severance tax bonds in compliance with the Severance Tax Bonding Act when the public school capital outlay council certifies by resolution the need for the issuance of the bonds or when the secretary of public education certifies the need for the issuance of the bonds pursuant to Section 22-24-4 NMSA 1978 or Section 3 of this 2016 act. The amount of the bonds sold at each sale shall not exceed the lesser of:

(1) the total of the amounts certified by the council and the secretary of public education; or

(2) the amount that may be issued pursuant to the restrictions of Section 7-27-14 NMSA 1978.

C. The state board of finance shall schedule the issuance and sale of the bonds in the most expeditious and economical manner possible.

D. The proceeds from the sale of the bonds are appropriated as follows:

(1) the amount certified by the secretary of public education as necessary to make the distribution pursuant to Section 22-25-9 NMSA 1978 is appropriated to the public school capital improvements fund for the purpose of carrying out the provisions of the Public School Capital Improvements Act; and

(2) the remainder of the proceeds is appropriated to the public school capital outlay fund for the purpose of carrying out the provisions of the Public School Capital Outlay Act.

History: 1978 Comp., § 7-27-12.2, enacted by Laws 2001, ch. 338, § 2; 2004, ch. 125, § 1; 2016 (2nd S.S.), ch. 2, § 1.

Compiler's notes. — The reference to "Section 3 of this 2016 act" in Subsection B of this section, refers to Laws 2016 (2nd S.S.), ch. 2, § 3, effective October 7, 2016, which appropriated twelve million five hundred thousand dollars ($12,500,000) from the public school capital outlay fund to the instructional material fund for expenditure in fiscal year 2017 and subsequent fiscal years for the purchase of instructional material pursuant to the Instructional Material Law; provided that the secretary of public education certifies the need for the issuance of supplemental severance tax bonds to meet that appropriation. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the public school capital outlay fund.

Cross references. — For the state board of finance, see 6-1-1 NMSA 1978.

For the secretary of public education, see 9-24-5 NMSA 1978.

For the public school capital outlay council, see 22-24-6 NMSA 1978.

The 2016 (2nd S.S.) amendment, effective October 7, 2016, authorized the state board of finance to issue and sell supplemental severance tax bonds in compliance with the Severance Tax Bonding Act when the secretary of public education certifies the need for the issuance of the bonds pursuant to the Public School Capital Outlay Act; in the catchline, added "and other"; in Subsection B, after "council certifies by resolution the need for the issuance of the bonds", added "or when the secretary of public education certifies the need for the issuance of the bonds pursuant to Section 22-24-4 NMSA 1978 or Section 3 of this 2016 act", and after "shall not exceed the lesser of:", added the paragraph designation "(1)"; in Paragraph C(1), changed "amount" to "total of the amounts", and after "certified by the council", added "and the secretary of public education"; and added the paragraph designation "(2)".

The 2004 amendment, effective May 19, 2004, amended Subsection A to insert "expenditures relating to" before "public school capital outlay", deleted "Section 22-24-5 NMSA 1978" and inserted in its place "the Public School Capital Outlay Act", amended Subsection D to substitute "secretary of public education" for "superintendent of public instruction" in Paragraph (1) and deleted in Paragraph (2) the purpose of the awards language and substitute in its place the purpose of "carrying out the provisions of the Public School Capital Outlay Act".