N.M. Stat. § 22-18-1 (2026)

A. After consideration of the priorities for the school district's capital needs as shown
by the facility assessment database maintained by the public school facilities authority
and subject to the provisions of Article 9, Section 11 of the constitution of New Mexico
and Sections 6-15-1 and 6-15-2 NMSA 1978, a school district may issue general
obligation bonds for the purpose of:

       (1)    erecting, remodeling, making additions to and furnishing school buildings,
including teacher housing;

       (2)    purchasing or improving school grounds;

      (3)     purchasing computer software and hardware for student use in public
schools;

       (4)   providing matching funds for capital outlay projects funded pursuant to the
Public School Capital Outlay Act [Chapter 22, Article 24 NMSA 1978]; or

       (5)    any combination of these purposes.

   B. The bonds shall be fully negotiable and constitute negotiable instruments within
the meaning and for all purposes of the Uniform Commercial Code [Chapter 55 NMSA
1978].

History: 1953 Comp., § 77-15-1, enacted by Laws 1967, ch. 16, § 228; 1996, ch. 67, §
1; 2005, ch. 274, § 14; 2007, ch. 173, § 21; 2009, ch. 132, § 1; 2021, ch. 52, § 7.

                                     ANNOTATIONS

Cross references. — For public school finances generally, see 22-8-1 NMSA 1978 et
seq.

For school revenue bonds, see 22-19-1 NMSA 1978 et seq.
For school construction, see 22-20-1 NMSA 1978 et seq.

For public school emergency capital outlays, see 22-24-1 NMSA 1978 et seq.

For public school capital improvements, see 22-25-1 NMSA 1978 et seq.

For constitutional provision relating to school district indebtedness, see N.M. Const., art.
IX, § 11.

For issuance and sale of bonds by school districts generally, see 6-15-3 to 6-15-10
NMSA 1978.

For issuance of refunding bonds by school districts generally, see 6-15-11 to 6-15-22
NMSA 1978.

For the Public School Lease Purchase Act, see 22-26A-1 NMSA 1978.

The 2021 amendment, effective July 1, 2021, authorized general obligation bonds to
be used to erect, remodel, or make additions to teacher housing; and in Subsection A,
Paragraph A(1), after "buildings", added "including teacher housing".

The 2009 amendment, effective June 19, 2009, deleted former Paragraph (5) of
Subsection A, which provided for payment pursuant to a financing agreement for the
leasing of a building or other real property with an option to purchase.

The 2007 amendment, effective June 15, 2007, added Paragraph (5) of Subsection A
to provide for the issuance of bonds to make certain lease payments.

The 2005 amendment, effective April 6, 2005, provided that a school district may issue
bonds after considering the priorities for the school district's capital needs as shown by
the facility assessment database maintained by the public school facilities authority and
that bonds may be issued to provide matching funds for capital outlay projects funded
pursuant to the Public School Capital Outlay Act.

The 1996 amendment, effective May 15, 1996, inserted "purchasing computer software
and hardware for student use in public schools" near the end of the first sentence.

General obligation bond proceeds for teacher housing. — A school district
contemplating issuing general obligations bonds under 22-18-1 NMSA 1978 for the
purpose of "erecting, remodeling, making additions to and furnishing school buildings"
may, according to 22-18-1(A)(1) NMSA 1978, use the proceeds of said bonds for the
construction, maintenance and repair of teacher housing. Use of General Obligation
Bond Proceeds and Public School Capital Improvements Act Revenue for Construction
of Teacher Housing (12/1/2022), Att'y Gen. Adv. Ltr. 2022-13, overruling 1981 N.M.
Att'y Gen. 81-01.
"School building". — The term "school building" has been defined by the courts in the
context of the expenditure of revenues from a bond issue to mean a structure which is
used for teaching. 1981 Op. Att'y Gen. No. 81-01.

Buildings for teacher housing not school buildings. — Buildings used for teacher
housing, which are not used for instructional purposes, do not fall within the meaning of
the term "school building" as it is commonly used in bonding provisions. 1981 Op. Att'y
Gen. No. 81-01.

Revenues generated by school district general obligation bonds or pursuant to the
Public School Capital Improvements Act may not be spent to construct teacher housing.
1981 Op. Att'y Gen. No. 81-01.

Am. Jur. 2d, A.L.R. and C.J.S. references. — 64 Am. Jur. 2d Public Securities and
Obligations §§ 120, 122.

For article, "No Cake For Zuni: The Constitutionality of New Mexico's Public School
Capital Finance System," see 37 N.M.L. Rev. 307 (2007).