GILA REGIONAL CANCER CENTER BONDS

HB0275

HOUSE BILL 275

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

INTRODUCED BY

Luis M. Terrazas
and
D. Wonda Johnson
and
Gabriel Ramos

and
Doreen Y. Gallegos
and
Jenifer Jones

AN ACT

RELATING TO FINANCE; AUTHORIZING THE NEW MEXICO FINANCE
AUTHORITY TO ISSUE AND SELL REVENUE BONDS FOR THE GILA REGIONAL
CANCER CENTER AT THE GILA REGIONAL MEDICAL CENTER; MAKING AN
APPROPRIATION.

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

SECTION 1.
Laws 2006, Chapter 89, Section 1, as amended
by Laws 2007, Chapter 215, Section 1, Laws 2008, Chapter 60,
Section 1, Laws 2013, Chapter 14, Section 1 and Laws 2019,
Chapter 204, Section 1, is compiled in the New Mexico Finance
Authority Act and is amended to read:

"[
TEMPORARY PROVISION--NEW MEXICO FINANCE
] AUTHORITY
REVENUE BONDS--[
PURPOSE--APPROPRIATION
]
AUTHORIZED--GILA
REGIONAL MEDICAL CENTER AND NOR-LEA GENERAL HOSPITAL
.--

A. The [
New Mexico finance
] authority may issue and
sell revenue bonds in compliance with the New Mexico Finance
Authority Act for a term not exceeding twenty years in an
amount not exceeding three million dollars ($3,000,000) for the
purpose of designing, constructing, equipping and furnishing
additions and improvements to a regional cancer treatment
center at the Gila regional medical center in Grant county.
The authority may issue and sell revenue bonds authorized by
this subsection when the chair of the board of county
commissioners of Grant county certifies the need for issuance
of the bonds. The net proceeds from the sale of the bonds are
appropriated to the local government division of the department
of finance and administration for the purposes described in
this subsection.

B. After the bonds have been issued pursuant to
Subsection A of this section, the [
New Mexico finance
]
authority may issue and sell revenue bonds in compliance with
the New Mexico Finance Authority Act for a term not exceeding
twenty years in an amount not exceeding one million five
hundred thousand dollars ($1,500,000) for the purpose of
designing, constructing, equipping and furnishing additions and
improvements to a regional cancer treatment center at the
Nor-Lea general hospital in Lea county. The authority may
issue and sell revenue bonds authorized by this subsection when
the chair of the board of trustees of the Nor-Lea special
hospital district certifies the need for issuance of the bonds;
provided that, if the authority determines that excess balances
exist in the rural county cancer treatment fund above the
amount needed to service outstanding bonds, then, in lieu of
issuing all or a portion of the bonds, the excess balances may
be used for the cancer treatment center funded pursuant to this
subsection, but the total of excess balances and bond proceeds
shall not exceed one million five hundred thousand dollars
($1,500,000). The net proceeds from the sale of the bonds and
any excess balances are appropriated to the local government
division of the department of finance and administration for
the purposes described in this subsection.

C. After the bonds have been issued pursuant to
Subsections A and B of this section, the [
New Mexico finance
]
authority may issue and sell revenue bonds in compliance with
the New Mexico Finance Authority Act for a term not exceeding
twenty years in an amount not exceeding three million dollars
($3,000,000) as follows:

(1) not to exceed two million two hundred
fifty thousand dollars ($2,250,000) to design, construct, equip
and furnish additions and improvements to a regional cancer
treatment center at the Gila regional medical center in Grant
county; and

(2) not to exceed seven hundred fifty thousand
dollars ($750,000) to design, construct, equip and furnish
additions and improvements to Nor-Lea general hospital in Lea
county.

D. After the bonds have been issued pursuant to
Subsections A, B and C of this section, the [
New Mexico
finance
] authority may issue and sell revenue bonds in
compliance with the New Mexico Finance Authority Act for a term
not exceeding twenty years in an amount not exceeding one
million two hundred fifty thousand dollars ($1,250,000) for the
following purposes at the regional cancer treatment center at
the Gila regional medical center in Grant county: for the
purchase of computer hardware, servers, cabling, software
licenses and related services necessary for implementation and
maintenance of an electronic health records system, cancer
patient treatment, regulatory compliance and reporting; to
design, construct, renovate, equip and furnish additions and
improvements of the chemotherapy intravenous preparation clean
room; for the purchase of a positron emission tomography
scanner; or to prepay any loan made by the authority from the
public project revolving fund to or for the benefit of the Gila
regional medical center for the purposes authorized by this
subsection.

E. The authority may issue and sell revenue bonds
authorized by Subsection C of this section when the boards of
trustees of the Gila regional medical center and the Nor-Lea
special hospital district certify the need for the issuance of
the bonds. If the authority determines that there are balances
in the rural county cancer treatment fund in excess of the
amount needed to service outstanding bonds, the authority may
use those balances in lieu of issuing all or a portion of the
bonds authorized in Subsection C of this section, but the total
of funding from bonds and balances shall not exceed three
million dollars ($3,000,000). The net proceeds from the sale
of bonds and any excess balances are appropriated to the local
government division of the department of finance and
administration for the purposes described in Subsection B of
this section.

F. The authority may issue and sell revenue bonds
authorized by Subsection D of this section when the chair of
the board of trustees of the Gila regional medical center
certifies the need for issuance of the bonds. If the authority
determines there are balances in the rural county cancer
treatment fund in excess of the amount needed to service
outstanding bonds, the authority may use those balances in lieu
of issuing all or a portion of the bonds authorized in
Subsection D of this section, but the total of excess balances
and bond proceeds shall not exceed one million two hundred
fifty thousand dollars ($1,250,000). The net proceeds from the
sale of the bonds and any excess balances are appropriated to
the authority for the purposes described in this subsection.

G. After the bonds have been issued pursuant to
Subsections A through D of this section, the authority may
issue and sell revenue bonds in compliance with the New Mexico
Finance Authority Act for a term not exceeding twenty years in
an amount not exceeding five million seven hundred thirty-five
thousand three hundred sixteen dollars ($5,735,316) for the
regional cancer treatment center at the Gila regional medical
center in Grant county for the purchase of equipment, computer
hardware and software and to renovate rooms in the medical
center.

H. The authority may issue and sell revenue bonds

authorized by Subsection G of this section when the chair of

the board of trustees of the Gila regional medical center
certifies the need for issuance of the bonds. If the authority
determines that there are balances in the rural county cancer
treatment fund in excess of the amount needed to service

outstanding bonds, the authority may use those balances in lieu
of issuing all or a portion of the bonds authorized in
Subsection G of this section, but the total of excess balances

and bond proceeds shall not exceed five million seven hundred

thirty-five thousand three hundred sixteen dollars
($5,735,316). The net proceeds from the sale of the bonds and
any excess balances are appropriated to the authority for the
purposes described in this subsection.

[
G.
]
I.
The cigarette tax proceeds distributed to
the authority pursuant to Subsection E of Section 7-1-6.11 NMSA
1978 shall be pledged irrevocably for the payment of the
principal, interest, premiums and related expenses on the bonds
and for payment of the expenses incurred by the authority
related to the issuance, sale and administration of the bonds.

[
H.
]
J.
The cigarette tax proceeds distributed to
the authority pursuant to Subsection E of Section 7-1-6.11 NMSA
1978 shall be deposited each month in a separate fund or
account of the authority.

[
I.
]
K.
Upon payment of all principal, interest and
other expenses or obligations related to the bonds, the
authority shall certify to the secretary of taxation and
revenue that all obligations for the bonds issued pursuant to
this section have been fully discharged and shall direct the
secretary of taxation and revenue to cease distributing
cigarette tax proceeds to the authority pursuant to Subsection
E of Section 7-1-6.11 NMSA 1978 and to distribute those
cigarette tax proceeds to the general fund.

[
J.
]
L.
Any law authorizing the imposition,
collection or distribution of the cigarette tax or that affects
the cigarette tax shall not be amended, repealed or otherwise
directly or indirectly modified so as to impair or reduce debt
service coverage for any outstanding revenue bonds that may be
secured by a pledge of those cigarette tax revenues, unless the
revenue bonds have been discharged in full or provisions have
been made for a full discharge.

[
K.
]
M.
The authority may additionally secure the
revenue bonds issued pursuant to this section by a pledge of
money in the public project revolving fund with a lien priority
on the money in the public project revolving fund as determined
by the authority.

[
L.
]
N.
The authority may purchase revenue bonds
issued pursuant to this section with money in the public
project revolving fund pursuant to the provisions of Section
6-21-6 NMSA 1978."

- 8 -