NOTE:  As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used for other purposes.

 

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F I S C A L   I M P A C T   R E P O R T

 

 

SPONSOR:

Altamirano

 

DATE TYPED:

03/05/03

 

HB

 

 

SHORT TITLE:

Regional Transit District Act

 

SB

34/aSCORC/aSFC/SFl#1

 

 

ANALYST:

Gilbert

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

 

 

$0.1 See Narrative

Non-Rec

General Fund

 

 

 

$0.1 See Narrative

Recurring

Local Government Funds

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Duplicates HB102

 

SOURCES OF INFORMATION

 

LFC Files

 

Response Received

State Highway and Transportation Department (SHTD)

 

SUMMARY

 

     Synopsis of SFl#1 Amendment

 

Senate Floor amendment #1 to Senate Bill 34 makes the following changes:

 

In Section 4 pertaining to creation of districts, contracts establishing districts must specify the manner of the appointment, the procedure for filling vacancies, term of service and qualifications, if any of district directors.  Reference to compensation of directors was removed from this subsection.

 

In Section 5 pertaining to restrictions upon the authority of district boards to delegate duties:

 

q    Institution of an eminent domain action was stricken, thus allowing delegation of this authority; and

q    Issuance of Bonds was added, thus prohibiting delegation of this function.

 

In Section 5, language was added stating that only elected officials shall vote on resolutions regarding ratification of acquisition of land by negotiated sale and issuance of bonds.

 

Section 16 was stricken. This provision granted districts the power of eminent domain.

 

     Synopsis of SFC Amendment

 

The Senate Finance Committee amendment to Senate bill 34, removes the $1.9 million appropriation in the bill by striking Section 20 in its entirety.

 

A technical correction is made on page 13, line 14, by striking “lands” and replacing it with the word “bonds”.

 

On page 7, a new subsection 7 specifies that district boards of directors have the power to issue bonds. Additionally, a new Subsection B on page 7 states that only an elected official may vote on resolutions regarding the following:

 

q    establishment and organization of the board in which all legislative power of the district is vested;

 

q    manner of the appointment, term of service, qualifications and compensation, if any, of the directors and the procedure for filling vacancies;

 

q    issuance of bonds.

 

     Synopsis of SCORC Amendment

 

The Senate Corporations and Transportation Committee amendment to Senate Bill 34 amends language on page 17, lines 5 and 6, by striking language that requires regional transit district boards to obtain specific appropriations from the Legislature prior to paying fees relating to investment management services.

 

     Synopsis of Original Bill

 

Senate Bill 34 appropriates $1.9 million to the State Highway and Transportation Department (SHTD) to implement a Regional Transit District Act. The purpose of the Act is to:

 

  • serve the public by providing for the creation of regional networks of safe and efficient public transit services;

 

  • allow multi-jurisdictional public transit systems to reduce the congestion of single-occupant motor vehicle traffic by providing transportation options for residents;

 

  • decrease automobile accidents by reducing traffic congestion on freeways and streets;

 

  • reduce noise and air pollution produced by motor vehicles;

 

  • prolong and extend the life of New Mexico's existing roadways by easing the traffic burden;

 

  • provide residents with a choice of transportation alternatives so that seniors, youth, low-income and mobility-impaired residents and others unable to drive or afford motor vehicles continue to have full access to the goods, services, jobs and activities of the community;

 

  • improve the New Mexico economy by increasing workforce and citizen access to education and higher paying jobs; and

 

  • prolong and extend petroleum resources.

 

     Significant Issues

 

This bill allows local governments to establish regional transit districts that are authorized to sell bonds and identify and generate local matching funds in sup-port of public transportation.  This also provides an opportunity to leverage federal dollars to provide public transportation services.

 

Districts may exercise the power of eminent domain in the manner provided by law for the condemnation of private property for purposes necessary to carry out the Regional Transit District Act.

 

Districts may collect fees, tolls, rates or charges. State and local law enforcement authorities may enter into traffic and toll enforcement agreements with districts.

 

FISCAL IMPLICATIONS

 

The appropriation of $1,900.0 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY 2005 shall revert to the general fund.

 

No more than $200.0 may be expended in creating one regional transit district. SHTD may use up to $75.0 of this appropriation to cover costs associated with implementing this Act.

 

The local government members of a combination district shall match at least one dollar for every four dollars provided by the state. Before districts can receive state matching funds, the commission, pursuant to Section 4 of the Regional Transit District Act, must first certify them.

 

Districts may issue bonds for the purpose of financing the purchase, construction, renovation, equipping or furnishing of a regional transit system project. Districts shall issue the bonds pursuant to resolution of their boards, and the bonds shall be payable solely out of all or a specified portion of the revenues as designated by their boards. Proceeds of the bonds may be used to pay expenses incurred in the preparation, issuance and sale of the lands.

 

Boards may invest or deposit funds in accordance with the prudent investor rule and may employ investment management services to invest such funds. The Act requires Boards to keep accurate and complete investment records and accounts.

 

ADMINISTRATIVE IMPLICATIONS

 

STHD employees are charged with administration of the appropriation included in this Act.

 

TECHNICAL ISSUES

 

According to the State Highway and Transportation Department (SHTD), while Section 8(C) allows a regional transit district to pay expenses of issuing bonds, it does not specify that those expenses can be paid from bond proceeds (as with STC bonds – see NMSA 1978, Section 67-3-59.1)

 

RLG/prr