A. Any board, other than a board created pursuant to the provisions of the Off-Campus Instruction Act [21-14A-1 to 21-14A-10 NMSA 1978], may borrow money for the purpose of:
(1) erecting, furnishing, constructing, purchasing, remodeling and equipping buildings and utility facilities, exclusive of stadiums;
(2) making other real property improvements;
(3) purchasing grounds; and
(4) purchasing and installing computer hardware and software with a useful life equal to or exceeding the maturity of the bonds.
B. To carry out the purposes of the College District Tax Act, the board may issue negotiable general obligation bonds of the college district, if approved by the higher education department and then approved at an election by a majority of the qualified electors voting on the issue; provided, however, no bonds shall be issued that create a total bonded indebtedness in the college district in excess of three percent of the assessed valuation of the taxable property within the college district as shown in the preceding general assessment, which debt limitation is to be in excess of other existing debt limitations. Bonds shall be sold at a price that does not result in a net effective interest rate exceeding the maximum net effective interest rate permitted by the Public Securities Act [6-14-1 to 6-14-3 NMSA 1978]. The bonds shall be sold at a public sale or may be sold at private sale to the state of New Mexico or the New Mexico finance authority at the price and upon such terms and conditions as the board and the state of New Mexico or the New Mexico finance authority may determine. The bonds may be in such denominations and registered and pay interest as the board determines.
C. The bonds shall be due and payable either annually or semiannually commencing not later than three years from their date. The bonds shall be issued for a term of not more than twenty years. The form and terms of the bonds, including provisions for their payment and optional or mandatory redemption, shall be as determined by the board. If the board so determines, the bonds may be redeemable prior to maturity upon payment of a premium not exceeding one percent of the principal of the bonds. The bonds shall be executed in the name of and on behalf of the college district, signed by the chair of the board, with the seal of the college district affixed to the bonds, and attested by the secretary of the board. The bonds may be executed and sealed in accordance with the provisions of the Uniform Facsimile Signature of Public Officials Act [6-9-1 to 6-9-6 NMSA 1978].
D. To provide for the payment of the interest and principal of the bonds issued and sold pursuant to the provisions of the College District Tax Act, upon approval of the bonds at an election by a majority of the qualified electors in the college district who voted on the issue, the board of county commissioners shall annually make and levy, during each year in which any bonds are outstanding, an ad valorem tax on all taxable property in the district in an amount sufficient to produce a sum equal to one year's interest on all bonds then outstanding, together with an amount sufficient to pay the principal on all bonds as they mature. This levy shall not exceed five mills; provided, however, that this five-mill limitation may be exceeded in any year in which the valuation of the property within the college district declines to a level lower than the valuation of the property in the year in which the bonds were issued. The taxes authorized by this subsection shall be levied, assessed and collected at the times and in the manner that ad valorem taxes for school districts are assessed, levied and collected, and it is the duty of all tax officials and authorities to cause taxes authorized by this subsection to be levied, assessed and collected.
E. The proceeds obtained from the issuance of the bonds shall not be diverted or expended for any purposes other than those provided in the College District Tax Act; provided that no building shall be built without prior approval of detailed plans by the higher education department; and further provided that the expenses incurred in the preparation and sale of the bonds may be paid out of the proceeds from the sale of the bonds.
F. Prior to the issuance and sale of bonds, the attorney general shall approve all bond transcripts and certify approval or rejection thereof in the same manner as is required by law for the approval of school bonds. Unless otherwise specifically provided, the provisions of the College District Tax Act for the issuance of bonds shall be deemed exclusive of the provisions of all other laws.
History: Laws 1995, ch. 224, § 12; 2013, ch. 37, § 2.
ANNOTATIONSCross references. — For designation of the commission on higher education as the higher education department, see 9-25-4.1 NMSA 1978.
The 2013 amendment, effective June 14, 2013, allowed for the expenditure of bond proceeds on computer hardware and software; in Paragraph (3) of Subsection A, after "purchasing grounds", deleted "exclusive of stadiums"; added Paragraph (4) of Subsection A; in Subsection B, in the first sentence, after "issue negotiable", deleted "coupon", after "if approved by the", deleted "commission on", after "higher education", added "department", and after "bonded indebtedness in the", added "college", in the third sentence, after "The bonds shall be sold", deleted "and" and added the remainder of the sentence, and in the fourth sentence, at the beginning of the sentence, added "The bonds", after "in such denominations", added "and registered and pay interest", and after "board determines", deleted "and the bonds and the attached coupons shall be payable to the bearer but may also be made registrable as to principal or as to principal and interest"; in Subsection C, after "due and payable", deleted "serially", in the second sentence, after "for a term of not", deleted "less than five or", in the third sentence, after "their payment and", added "optional or mandatory", in the fourth sentence, after "premium not exceeding", deleted "three" and added "one", and deleted the former seventh sentence which provided that interest coupons shall bear the original or facsimile signature of the chairman of the board; and in Subsection E, after "detailed plans by the", deleted "commission on" and after "higher education", added "department".