46th legislature - STATE OF NEW MEXICO - first session, 2003

RELATING TO CAPITAL EXPENDITURES; AUTHORIZING THE ISSUANCE OF SEVERANCE TAX BONDS FOR IMPROVEMENTS TO UNITED STATES HIGHWAY 666 IN MCKINLEY AND SAN JUAN COUNTIES; MAKING AN APPROPRIATION; DECLARING AN EMERGENCY.

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

Section 1. SEVERANCE TAX BONDS--AUTHORIZATIONS--APPROPRIATION OF PROCEEDS.--

A. The state board of finance may issue and sell severance tax bonds in compliance with the Severance Tax Bonding Act in an amount not to exceed the total of the amounts authorized for purposes specified in this act. The state board of finance shall schedule the issuance and sale of the bonds in the most expeditious and economical manner possible upon a finding by the board that the project has been developed sufficiently to justify the issuance and that the project can proceed to contract within a reasonable time. The state board of finance shall further take the appropriate steps necessary to comply with the Internal Revenue Code of 1986, as amended. Proceeds from the sale of the bonds are appropriated for the purposes specified in this act.

B. The state highway and transportation department shall certify to the state board of finance when the money from the proceeds of the severance tax bonds authorized in this section is needed for the purposes specified in this act. If the state highway and transportation department has not certified the need for the issuance of the bonds for this project by the end of fiscal year 2005, the authorization for the project is void.

C. Before the state highway and transportation department may certify for the issuance of severance tax bonds, the project must be developed sufficiently so that the department reasonably expects to:

(1) incur within six months after the applicable bonds have been issued a substantial binding obligation to a third party to expend at least five percent of the bond proceeds for the project; and

(2) spend at least eighty-five percent of the bond proceeds within three years after the applicable bonds have been issued.

D. The unexpended balance from the proceeds of severance tax bonds issued for this project shall revert to the severance tax bonding fund within six months of completion of the project, but no later than the end of fiscal year 2008.

E. Money from severance tax bond proceeds provided pursuant to this act shall not be used to pay indirect project costs.

F. For the purpose of this section, "unexpended balance" means the remainder of an appropriation after reserving for unpaid costs and expenses covered by binding written obligations to third parties.

Section 2. IMPROVEMENTS TO UNITED STATES HIGHWAY 666--STATE HIGHWAY AND TRANSPORTATION DEPARTMENT--SEVERANCE TAX BONDS.--Pursuant to the provisions of Section 1 of this act, upon certification by the state highway and transportation department that the need exists for the issuance of the bonds, one hundred forty-five million dollars ($145,000,000) is appropriated to the state highway and transportation department for improvements to United States highway 666, including widening the existing two-lane highway to four lanes and making improvements related to safety, drainage and roadway design, from Tohatchi to Shiprock and from Shiprock to the Colorado state line in McKinley and San Juan counties.

Section 3. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.