HB0475

HOUSE BILL 475

57th legislature - STATE OF NEW MEXICO - first session, 2025

INTRODUCED BY

Cathrynn N. Brown and Patricia A. Lundstrom and Art De La Cruz and Jenifer Jones and Dayan Hochman-Vigil

AN ACT

RELATING TO TRANSPORTATION; CREATING THE TRANSPORTATION TRUST FUND; MAKING ANNUAL TRANSFERS TO THE STATE ROAD FUND FOR PROVIDING STATE MATCHING FUNDS FOR FEDERAL GRANTS; DISTRIBUTING A PORTION OF GROSS RECEIPTS TAX REVENUE ATTRIBUTABLE TO THE SALE OF ELECTRICITY TO THE TRANSPORTATION TRUST FUND; AMENDING DISTRIBUTIONS OF THE MOTOR VEHICLE EXCISE TAX; AMENDING CERTAIN SECTIONS OF LAWS 2021 THROUGH 2024 TO REQUIRE CERTAIN UNEXPENDED GENERAL FUND CAPITAL OUTLAY APPROPRIATIONS TO REVERT TO THE TRANSPORTATION TRUST FUND; MAKING AN APPROPRIATION.

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

SECTION 1. [NEW MATERIAL] TRANSPORTATION TRUST FUND CREATED.--

A. The "transportation trust fund" is created as a nonreverting fund in the state treasury. The fund consists of distributions, appropriations, gifts, grants and donations. Income from investment of the fund shall be credited to the fund. Money in the fund shall be expended only as provided in this section.

B. The state investment officer, subject to the approval of the state investment council and in consultation with the state treasurer, shall invest money in the transportation trust fund in accordance with the prudent investor rule set forth in the Uniform Prudent Investor Act.

C. The state investment officer shall submit an annual report on the investments made pursuant to this section no later than October 1 of each year to the legislative finance committee, the state investment council, the revenue stabilization and tax policy committee and any other appropriate interim committees.

D. On July 1, 2028 and each July 1 thereafter, a transfer shall be made from the transportation trust fund to the state road fund in an amount equal to five percent of the average of the year-end market values of the fund for the immediately preceding three calendar years. Money transferred pursuant to this subsection shall be expended only to provide state matching funds for federal grants for transportation infrastructure projects.

E. In addition to the transfer pursuant to Subsection D of this section, money in the transportation trust fund may be expended in the event that general fund balances, including all authorized revenues and transfers to the general fund and balances in the general fund operating reserve, the appropriation contingency fund, the state-support reserve fund and the tax stabilization reserve, will not meet the level of appropriations authorized from the general fund for a fiscal year. In that event, to avoid an unconstitutional deficit, the legislature may appropriate from the transportation trust fund to the general fund only in the amount necessary to meet general fund appropriations for that fiscal year and only if the legislature has authorized transfers from the appropriation contingency fund, the general fund operating reserve and the tax stabilization reserve that exhaust those fund balances.

SECTION 2. A new section of the Tax Administration Act, Section 7-1-6.73 NMSA 1978, is enacted to read:

"7-1-6.73. [NEW MATERIAL] DISTRIBUTION--TRANSPORTATION TRUST FUND.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the transportation trust fund in an amount equal to the following percentages of the taxable gross receipts attributable to the sale of electricity:

A. prior to July 1, 2031, one percent;

B. on or after July 1, 2031 and prior to July 1, 2036, one and one-fourth percent;

C. on or after July 1, 2036 and prior to July 1, 2041, one and one-half percent;

D. on or after July 1, 2041 and prior to July 1, 2046, one and three-fourths percent; and

E. on or after July 1, 2046, two percent."

SECTION 3. Section 7-14-10 NMSA 1978 (being Laws 1988, Chapter 73, Section 20, as amended) is amended to read:

"7-14-10. DISTRIBUTION OF PROCEEDS--MOTOR VEHICLE EXCISE TAX.--The receipts from the tax and any associated interest and penalties shall be deposited in the "motor vehicle suspense fund", hereby created in the state treasury. As of the end of each month, the net receipts attributable to the tax and associated penalties and interest shall be distributed as follows:

A. prior to July 1, 2027:

(1) thirty percent to the general fund;

(2) thirty-five percent to the state road fund;

(3) fifteen percent to the transportation project fund; and

(4) twenty percent to the transportation trust fund;

B. on and after July 1, 2027, except as provided in Subsection C of this section:

(1) fifty percent to the state road fund;

(2) twenty percent to the transportation project fund; and

(3) thirty percent to the transportation trust fund; and

C. if, for any single fiscal year occurring after fiscal year 2030 and prior to fiscal year 2041, gross receipts tax revenues are less than ninety percent of the gross receipts tax revenues for the previous fiscal year as determined by the secretary of finance and administration, beginning on the July 1 following the determination made by the secretary of finance and administration:

[A. fifty-nine and thirty-nine hundredths] (1) fifty percent to the general fund;

[B. twenty-one and eighty-six hundredths] (2) twenty percent to the state road fund; [and

C. eighteen and seventy-five hundredths] (3) fifteen percent to the transportation project fund; and

(4) fifteen percent to the transportation trust fund."

SECTION 4. Laws 2021, Chapter 138, Section 2 is amended to read:

"SECTION 2. GENERAL FUND APPROPRIATIONS--LIMITATIONS--REVERSIONS.--

A. Except as provided in Subsections C, D and G of this section and as otherwise specifically provided by law, the unexpended balance of an appropriation made in this act from the general fund shall revert to the general fund:

(1) no later than September 30 following:

(a) the end of fiscal year 2022 if the project for which an appropriation was made has less than five percent of the project's total appropriation amount subject to a binding written agreement with a third party on that date;

(b) the end of fiscal year 2023 for a project for which an appropriation was made to purchase vehicles, including emergency vehicles and other vehicles that require special equipment; heavy equipment; books; educational technology; or other equipment or furniture that is not related to a more inclusive construction or renovation project; or

(c) the end of fiscal year 2025 for a project for which an appropriation was made related to an inclusive construction or renovation project; or

(2) within six months of completion of the project for any other project for which an appropriation was made, but no later than the end of fiscal year 2025.

B. Except for appropriations to the capital program fund, money from appropriations made in this act from the general fund shall not be used to pay indirect project costs.

C. Except as provided in Subsection D of this section, the balance of an appropriation made from the general fund shall revert in the time frame set forth in Subsection A of this section to the capital projects fund.

D. The balance of an appropriation made from the general fund to the Indian affairs department or the aging and long-term services department for a project located on lands of an Indian nation, tribe or pueblo shall revert in the time frame set forth in Subsection A of this section to the tribal infrastructure project fund.

E. For the purposes of this section, "unexpended balance" means the remainder of an appropriation after reserving for unpaid costs and expenses subject to a binding written agreement with a third party.

F. Money that is appropriated from the general fund pursuant to this act shall not be subject to a binding written agreement with a third party prior to the authorized state agency's approval to enter into that agreement.

G. The unexpended balance of an appropriation made in this act from the general fund that has not reverted on or before the effective date of this 2025 act shall revert in the time frame set forth in Subsection A of this section to the transportation trust fund."

SECTION 5. Laws 2022, Chapter 53, Section 2 is amended to read:

"SECTION 2. GENERAL FUND APPROPRIATIONS--LIMITATIONS--REVERSIONS.--

A. Except as provided in Subsection D of this section and as otherwise specifically provided by law, the unexpended balance of an appropriation made in this act from the general fund shall revert to the general fund:

(1) no later than September 30 following:

(a) the end of fiscal year 2023 if the project for which an appropriation was made has less than five percent of the project's total appropriation amount subject to a binding written agreement with a third party on that date;

(b) the end of fiscal year 2024 for a project for which an appropriation was made to purchase vehicles, including emergency vehicles and other vehicles that require special equipment; heavy equipment; books; educational technology; or other equipment or furniture that is not related to a more inclusive construction or renovation project; or

(c) the end of fiscal year 2026 for a project for which an appropriation was made related to an inclusive construction or renovation project; or

(2) within six months of completion of the project for any other project for which an appropriation was made, but no later than the end of fiscal year 2026.

B. Money that is appropriated from the general fund pursuant to this act shall not be subject to a binding written agreement with a third party prior to the authorized state agency's approval to enter into that agreement.

C. For the purposes of this section, "unexpended balance" means the remainder of an appropriation after reserving for unpaid costs and expenses subject to a binding written agreement with a third party.

D. The unexpended balance of an appropriation made in this act from the general fund that has not reverted on or before the effective date of this 2025 act shall revert in the time frame set forth in Subsection A of this section to the transportation trust fund."

SECTION 6. Laws 2023, Chapter 199, Section 1 is amended to read:

"SECTION 1. GENERAL FUND APPROPRIATIONS--LIMITATIONS--REVERSIONS.--

A. Except as provided in Subsection E of this section and as otherwise specifically provided by law, the unexpended balance of an appropriation made in this act from the general fund shall revert to the general fund:

(1) no later than September 30 following:

(a) the end of fiscal year 2024 if the project for which an appropriation was made has less than five percent of the project's total appropriation amount subject to a binding written agreement with a third party on that date;

(b) the end of fiscal year 2025 for a project for which an appropriation was made to purchase vehicles, including emergency vehicles and other vehicles that require special equipment; heavy equipment; books; educational technology; or other equipment or furniture that is not related to a more inclusive construction or renovation project; or

(c) the end of fiscal year 2027 for a project for which an appropriation was made related to an inclusive construction or renovation project; or

(2) within six months of completion of the project for any other project for which an appropriation was made, but no later than the end of fiscal year 2027.

B. Except for appropriations to the capital program fund, money from appropriations made in this act shall not be used to pay indirect project costs.

C. Money that is appropriated from the general fund pursuant to this act shall not be subject to a binding written agreement with a third party prior to the authorized state agency's approval to enter into that agreement.

D. For the purposes of this section, "unexpended balance" means the remainder of an appropriation after reserving for unpaid costs and expenses subject to a binding written agreement with a third party.

E. The unexpended balance of an appropriation made in this act from the general fund that has not reverted on or before the effective date of this 2025 act shall revert in the time frame set forth in Subsection A of this section to the transportation trust fund."

SECTION 7. Laws 2024, Chapter 66, Section 1 is amended to read:

"SECTION 1. GENERAL FUND APPROPRIATIONS--LIMITATIONS--REVERSIONS.--

(1) no later than September 30 following:

(a) the end of fiscal year 2026 for a project for which an appropriation was made to purchase vehicles, including emergency vehicles and other vehicles that require special equipment; heavy equipment; books; educational technology; or other equipment or furniture that is not related to a more inclusive construction or renovation project; or

(b) the end of fiscal year 2028 for a project for which an appropriation was made related to an inclusive construction or renovation project; or

(2) within six months of completion of the project for any other project for which an appropriation was made, but no later than the end of fiscal year 2028.

B. The agencies named in this act shall certify to the department of finance and administration that the money appropriated in this act is needed for the purposes specified in the applicable section of this act. If an agency has not certified the need for the appropriation for a particular project by the end of fiscal year 2026, the authorization for that project is void.

SECTION 8. APPROPRIATION.--Four hundred million dollars ($400,000,000) is appropriated from the general fund to the transportation trust fund for expenditure in fiscal year 2026 and subsequent fiscal years to provide initial funding to the fund. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund.

SECTION 9. EFFECTIVE DATE.--The effective date of the

provisions of this act is July 1, 2025.

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