GENERAL OBLIGATION BONDS, the official text

HOUSE BILL 248

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Derrick J. Lente

AN ACT

RELATING TO GENERAL OBLIGATION BONDS; AUTHORIZING THE ISSUANCE
AND SALE OF CAPITAL PROJECTS GENERAL OBLIGATION BONDS TO MAKE
CAPITAL EXPENDITURES FOR SENIOR CENTERS STATEWIDE, HIGHER
EDUCATION, LIBRARIES STATEWIDE AND OTHER PURPOSES; PROVIDING
FOR A PROPERTY TAX LEVY FOR PAYMENT OF PRINCIPAL OF, INTEREST
ON AND CERTAIN COSTS RELATED TO THE BONDS; REQUIRING APPROVAL
OF THE REGISTERED VOTERS AT THE 2026 GENERAL ELECTION OF THE
STATE; DECLARING AN EMERGENCY.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1. SHORT TITLE.--This act may be cited as the
"2026 Capital Projects General Obligation Bond Act".

SECTION 2. PURPOSE.--For the purpose of providing funds
for capital expenditures as authorized in the 2026 Capital
Projects General Obligation Bond Act, general obligation
indebtedness of the state is authorized for the purposes and in
the amounts set forth in Section 10 of that act.

SECTION 3. BOND TERMS.--

A. The state board of finance, except as limited by
the 2026 Capital Projects General Obligation Bond Act, shall
determine the terms, covenants and conditions of bonds issued
pursuant to that act, including:

(1) date or dates of issue, denominations and
maturities;

(2) principal amounts;

(3) rate or rates of interest; and

(4) provisions for redemption, including
premiums, registration and refundability, whether the bonds are
issued in one or more series and other covenants relating to
the bonds and the issuance thereof.

B. The bonds shall be in such form as the state
board of finance determines with an appropriate series
designation and shall bear interest payable as set forth in the
resolution of the state board of finance.

C. Payment of the principal of the bonds shall
begin not more than two years after the date of their issuance,
and the bonds shall mature not later than ten years after the
date of their issuance. Both principal and interest shall be
payable in lawful money of the United States at the office of
the paying agent within or without the state as the state board
of finance may direct.

D. The bonds shall be executed with the manual or
facsimile signature of the governor or the state treasurer, and
the seal or a facsimile of the seal of the state shall be
placed on each bond, except for any series of bonds issued in
book entry or similar form without the delivery of physical
securities.

E. The bonds shall be issued in accordance with the
provisions of the 2026 Capital Projects General Obligation Bond
Act, the Supplemental Public Securities Act and the Uniform
Facsimile Signature of Public Officials Act and may be issued
in accordance with the Public Securities Short-Term Interest
Rate Act.

F. The full faith and credit of the state is
pledged for the prompt payment when due of the principal of and
interest on all bonds issued and sold pursuant to the 2026
Capital Projects General Obligation Bond Act.

SECTION 4. EXPENDITURES.--The proceeds from the sale of
the bonds shall be expended solely for providing money to be
distributed for the purposes and in amounts not to exceed the
amounts set forth in Section 10 of the 2026 Capital Projects
General Obligation Bond Act and to pay expenses incurred under
Section 6 of that act. Any proceeds from the sale of the bonds
that are not required for the purposes set forth in Sections 6
and 10 of that act shall be used for the purpose of paying the
principal of and interest on the bonds.

SECTION 5. SALE.--The bonds authorized under the 2026
Capital Projects General Obligation Bond Act shall be sold by
the state board of finance at such time and in such manner and
amounts as the board may elect. The bonds may be sold at
private sale or at public sale, in either case at not less than
par plus accrued interest to the date of delivery. If sold at
public sale, the state board of finance shall publish a notice
of the time and place of sale in a newspaper of general
circulation in the state and may also publish the notice in a
recognized financial journal outside the state. The required
publications shall be made once each week for two consecutive
weeks prior to the date fixed for the sale, the last
publication to be at least five days prior to the date of the
sale. The notice shall specify the amount, denomination,
maturity and description of the bonds to be offered for sale
and the place, date and hour at which the sealed bids shall be
received. At the time and place specified in the notice, the
state board of finance shall open the bids in public and shall
award the bonds to the bidder or bidders offering the best
price for the bonds. The state board of finance may reject any
or all bids and readvertise and may waive any irregularity in a
bid. All bids, except that of the state, shall be accompanied
by a deposit of two percent of the principal amount of the
bonds in a form acceptable to the state board of finance. The
deposit of an unsuccessful bidder shall be returned upon
rejection of the bid. The state board of finance may also sell
the bonds or any part of the bonds to the state treasurer or
state investment officer. The state treasurer or state
investment officer is authorized to purchase any of the bonds
for investment. The bonds are legal investments for any person
or board charged with the investment of any public funds and
may be accepted as security for any deposit of public money.

SECTION 6. EXPENSES.--The expenses incurred by the state
board of finance in or relating to the preparation and sale of
the bonds shall be paid out of the proceeds from the sale of
the bonds, and all rebate, penalty, interest and other
obligations of the state relating to the bonds and bond
proceeds under the Internal Revenue Code of 1986, as amended,
shall be paid from earnings on bond proceeds or other money of
the state legally available for such payments.

SECTION 7. PROPERTY TAX LEVY.--To provide for the payment
of the principal of and interest on the bonds issued and sold
pursuant to the provisions of the 2026 Capital Projects General
Obligation Bond Act, there shall be and there is hereby imposed
and levied during each year in which any of the bonds are
outstanding an ad valorem tax on all property in the state
subject to property taxation for state purposes sufficient to
pay the interest as it becomes due on the bonds, together with
an amount sufficient to provide a sinking fund to pay the
principal of the bonds as it becomes due, and, if permitted by
law, ad valorem taxes may be collected to pay administrative
costs incident to the collection of such taxes. The taxes
shall be imposed, levied, assessed and collected at the times
and in the manner that other property taxes for state purposes
are imposed, levied, assessed and collected. It is the duty of
all tax officials and authorities to cause these taxes to be
imposed, levied, assessed and collected.

SECTION 8. TREASURER--DUTIES.--The state treasurer shall
keep separate accounts of all money collected pursuant to the
taxes imposed and levied pursuant to the provisions of the 2026
Capital Projects General Obligation Bond Act and shall use this
money only for the purposes of paying the principal of and
interest on the bonds as they become due and any expenses
relating thereto.

SECTION 9. IRREPEALABLE CONTRACT--AUTHORITY FOR
ISSUANCE.--An owner of bonds issued pursuant to the provisions
of the 2026 Capital Projects General Obligation Bond Act may,
either at law or in equity, by suit, action or mandamus,
enforce and compel the performance of the duties required by
that act of any officer or entity mentioned in that act. The
provisions of that act constitute an irrepealable contract with
the owners of any of the bonds issued pursuant to that act for
the faithful performance of which the full faith and credit of
the state is pledged. Without reference to any other act of
the legislature, the 2026 Capital Projects General Obligation
Bond Act is full authority for the issuance and sale of the
bonds authorized in that act, and such bonds shall have all the
qualities of investment securities under the Uniform Commercial
Code, shall not be invalid for any irregularity or defect in
the proceedings for the issuance and sale of the bonds and
shall be incontestable in the hands of bona fide purchasers or
holders thereof for value. All bonds issued under the
provisions of that act, and the interest thereon, are exempt
from taxation by the state and any subdivision or public body
thereof.

SECTION 10. PROJECTS.--The proceeds from the sale of
bonds issued under the provisions of the 2026 Capital Projects
General Obligation Bond Act shall be distributed as

follows for the purposes and in the amounts specified:

A. for senior citizen facility improvement,
construction and equipment acquisition projects to the aging
and long-term services department, thirty million dollars
($30,000,000);

B. for library acquisitions at public libraries,
public school libraries, academic libraries and tribal
libraries statewide, twenty million dollars ($20,000,000); and

C. for capital improvements and acquisitions at
institutions of higher education, special schools and tribal
schools statewide, two hundred thirty million dollars
($230,000,000).

SECTION 11. ELECTION.--

A. Bonds issued pursuant to the 2026 Capital
Projects General Obligation Bond Act shall be submitted to the
registered voters of the state at the general election to be
held in November 2026, and, if they receive a majority of all
the votes cast thereon at such election, shall take effect upon
certification of the state canvassing board announcing the
results of the election. No bonds shall be issued or sold
under that act until the registered voters of this state have
voted upon and approved the bonds and property tax as provided
in this section. Any bonds issued under that act shall be
issued within thirty months from the date of such election.

B. The ballots used at the 2026 general election
shall contain substantially the following language:

(1) "The 2026 Capital Projects General
Obligation Bond Act authorizes the issuance and sale of senior
citizen facility improvement, construction and equipment
acquisition bonds. Shall the state be authorized to issue
general obligation bonds in an amount not to exceed thirty
million dollars ($30,000,000) to make capital expenditures for
certain senior citizen facility improvement, construction and
equipment acquisition projects and provide for a general
property tax imposition and levy for the payment of principal
of, interest on and expenses incurred in connection with the
issuance of the bonds and the collection of the tax as
permitted by law?

For________________ Against___________________";

(2) "The 2026 Capital Projects General
Obligation Bond Act authorizes the issuance and sale of library
acquisition bonds. Shall the state be authorized to issue
general obligation bonds in an amount not to exceed twenty
million dollars ($20,000,000) to make capital expenditures for
academic, public school, tribal and public library resource
acquisitions and provide for a general property tax imposition
and levy for the payment of principal of, interest on and
expenses incurred in connection with the issuance of the bonds
and the collection of the tax as permitted by law?

For________________ Against___________________";
and

(3) "The 2026 Capital Projects General
Obligation Bond Act authorizes the issuance and sale of higher
education, special schools and tribal schools capital
improvement and acquisition bonds. Shall the state be
authorized to issue general obligation bonds in an amount not
to exceed two hundred thirty million dollars ($230,000,000) to
make capital expenditures for certain higher education, special
schools and tribal schools capital improvements and
acquisitions and provide for a general property tax imposition
and levy for the payment of principal of, interest on and
expenses incurred in connection with the issuance of the bonds
and the collection of the tax as permitted by law?

For________________ Against___________________". C. Each question set forth in this section includes
a specific work or object to be financed by the bonds. If any
such question is not approved by a majority vote of the
electorate at the state's 2026 general election, the issuance
of bonds for the work or object specified by the question shall
be excluded from and shall not be part of the 2026 Capital
Projects General Obligation Bond Act. The failure of a
question to be approved by the electorate at the 2026 general
election shall not affect those questions that are approved at
the election.

D. The secretary of state shall include the
submission of the capital projects general obligation bonds to
the people at the 2026 general election, and it shall be
included in the general election proclamation. The secretary
of state shall cause the 2026 Capital Projects General
Obligation Bond Act to be published in full in at least one
newspaper in each county of the state if one be published
therein, once each week, for four successive weeks next
preceding the general election as required by the constitution
of New Mexico.

SECTION 12. ART IN PUBLIC PLACES.--Pursuant to Section
13-4A-4 NMSA 1978 and where applicable, the appropriations
authorized in the 2026 Capital Projects General Obligation Bond
Act include money for the art in public places fund.

SECTION 13. PROJECT SCOPE--EXPENDITURES--REVERSION.--

A. If an appropriation for a project authorized in
the 2026 Capital Projects General Obligation Bond Act is not
sufficient to complete all the purposes specified, the
appropriation may be expended for any portion of the purposes
specified in the appropriation. Expenditures shall not be made
for purposes other than those specified in the appropriation.

B. The state agencies and state institutions to
which money has been appropriated in the 2026 Capital Projects
General Obligation Bond Act shall be responsible for monitoring
the projects funded in that act to ensure compliance with the
constitution and laws of New Mexico and shall cause to be
reverted any unexpended or unencumbered balance remaining at
the earlier of the third full fiscal year after issuance of the
bonds or the termination or completion of the specific project.
Reverted funds shall be deposited in the debt service fund
established by the state treasurer for the purpose of paying
the principal of and interest on the state's general obligation
bonds.

SECTION 14. SEVERABILITY.--If any part or application of
the 2026 Capital Projects General Obligation Bond Act is held
invalid, the remainder or its application to other situations
or persons shall not be affected.

SECTION 15. EMERGENCY.--It is necessary for the public
peace, health and safety that this act take effect immediately.

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