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].

History: Laws 2010, ch. 10 § 9; 2015, ch. 63, § 2; 2016 (2nd S.S.), ch. 5, § 10.

Cross references. — For the colonias infrastructure board, see 6-30-4 NMSA 1978.

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

The 2016 (2nd S.S.) amendment, effective October 21, 2016, reduced the percentages of estimated severance tax bonding capacity allocated to colonias infrastructure projects; and in Subsection A(2), after "subsequent year", deleted "five and one-half" and added "four and one-half".

Severability. — Laws 2016 (2nd S.S.), ch. 5, § 12, provided that if a specific reversion, a voided authorization, a change in the use of severance tax bond proceeds or an authorization to expend severance tax bond proceeds is held invalid or otherwise cannot be effectuated, the remainder of Laws 2016 (2nd S.S.), ch. 5 and any other reversion, voided authorization, change in the use of severance tax bond proceeds or authorization to expend severance tax bond proceeds shall not be affected.

The 2015 amendment, effective July 1, 2015, adjusted the percentages of severance tax bonding capacity allocated for colonias infrastructure projects; in the introductory sentence of Subsection A, after "allocate", deleted "five percent" and added "the following percentages", after "capacity", deleted "each year", and after "colonias infrastructure projects", deleted "and", added a colon, and after the colon, added new Paragraphs (1) and (2) of Subsection A; designated the remainder of Subsection A as Subsection B and redesignated the succeeding subsections accordingly; and in Subsection B, after "severance tax bonds in the", deleted "annually allocated", and after "amount", added "allocated pursuant to this section".