NMSA 1978, § 7-27-12.5 — 7-27-12.5

Authorization for severance tax bonds; priority for
infrastructure projects for colonias.

# A.

After the annual estimate of severance tax bonding capacity pursuant to
Subsection A of Section 7-27-10.1 NMSA 1978, the board of finance division of the
department of finance and administration shall allocate the following percentages of the
estimated bonding capacity for colonias infrastructure projects:
(1) in 2016, six and one-half percent; and
(2) in 2017 and each subsequent year, four and one-half percent.

# B.

The legislature authorizes the state board of finance to issue severance tax
bonds in the amount allocated pursuant to this section for use by the colonias
infrastructure board to fund the projects. The colonias infrastructure board shall certify
to the state board of finance the need for issuance of bonds for colonias infrastructure
projects. 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 amount
provided for in this subsection. If necessary, the state board of finance shall take the
appropriate steps to comply with the federal Internal Revenue Code of 1986, as
amended. Proceeds from the sale of the bonds are appropriated to the colonias
infrastructure project fund for the purposes certified by the colonias infrastructure board
to the state board of finance.

# C.

Money from the severance tax bonds provided for in this section shall not be
used to pay indirect project costs. Any unexpended balance from proceeds of
severance tax bonds issued for a colonias infrastructure project shall revert to the
severance tax bonding fund within six months of completion of the project. The colonias
infrastructure board shall monitor and ensure proper reversions of the bond proceeds
appropriated for the projects.

# D.

As used in this section, "colonias infrastructure project" means a qualified project
under the Colonias Infrastructure Act [Chapter 6, Article 30 NMSA 1978].