A. The state or a school district that has been authorized to issue bonds may designate all or any part of the bonds as qualified school construction bonds if:

(1) one hundred percent of the available project proceeds from the issuance of the bonds are to be used for:

(a) the construction, rehabilitation or repair of a qualifying school facility;

(b) the acquisition of land on which such a facility is to be constructed with part of the proceeds; or

(c) the acquisition of equipment to be used in the portion of the qualifying school facility that is being constructed, rehabilitated or repaired with the proceeds;

(2) the bonds are issued by the state or a school district within the jurisdiction of which the qualifying school is located; and

(3) the issuer is:

(a) a school district to which a direct allocation is made pursuant to Section 1521 of the federal American Recovery and Reinvestment Act of 2009 and the amount of the bonds designated as qualified school construction bonds does not exceed the direct allocation; or

(b) the state or a school district that has received an allocation distribution from the council pursuant to Section 22-18C-4 NMSA 1978.

B. Notwithstanding any law requiring bonds to be sold at a public sale or at not less than par, qualified school construction bonds may be sold at a public or private sale to the state, the New Mexico finance authority or any other purchaser and may be sold at par, or at less than or greater than par.

C. In addition to any other requirement of law applicable to the term of the bonds, qualified school construction bonds shall not be issued for a term longer than the term fixed pursuant to the Internal Revenue Code of 1986, as amended, and applicable state law.

History: Laws 2009, ch. 154, § 3; 2010, ch. 56, § 3.

Cross references. — For the Internal Revenue Code of 1986, see 26 U.S.C.

The 2010 amendment, effective March 8, 2010, in Subsection A(1)(a), after "school facility", deleted "or for"; added Subsection A(1)(c); in Subsection A(3), deleted "designates the bonds as qualified school construction bonds" and added "is"; added Subparagraphs (a) and (b) of Subsection A(3); and in Subsection B, after "sold at a public sale", added "or at not less than par" and after "public or private sale to", deleted "eligible taxpayers" and added the remainder of the sentence.