A. The public school capital outlay council is authorized to certify by resolution that proceeds of supplemental severance tax bonds are needed for expenditures relating to public school capital outlay projects pursuant to the Public School Capital Outlay Act [N.M. Stat. Ann. Chapter 22, Article 24] or for the state distribution for public school capital improvements pursuant to the Public School Capital Improvements Act [N.M. Stat. Ann. Chapter 22, Article 25]. The resolution shall specify the total amount needed.

B. The state board of finance may issue and sell supplemental severance tax bonds in compliance with the Severance Tax Bonding Act when the public school capital outlay council certifies by resolution the need for the issuance of the bonds or when the secretary of public education certifies the need for the issuance of the bonds pursuant to Section 22-24-4 N.M. Stat. Ann. or Section 3 of this 2016 act. The amount of the bonds sold at each sale shall not exceed the lesser of:

(1)     the total of the amounts certified by the council and the secretary of public education; or

(2)     the amount that may be issued pursuant to the restrictions of Section 7- 27-14 NMSA 1978.

C. The state board of finance shall schedule the issuance and sale of the bonds in the most expeditious and economical manner possible.

D. The proceeds from the sale of the bonds are appropriated as follows:

(1)     the amount certified by the secretary of public education as necessary to make the distribution pursuant to Section 22-25-9 N.M. Stat. Ann. is appropriated to the public school capital improvements fund for the purpose of carrying out the provisions of the Public School Capital Improvements Act; and

(2)     the remainder of the proceeds is appropriated to the public school capital outlay fund for the purpose of carrying out the provisions of the Public School Capital Outlay Act.