HOUSE BILL 559

52nd legislature - STATE OF NEW MEXICO - first session, 2015

INTRODUCED BY

Cathrynn N. Brown

AN ACT

RELATING TO HIGHWAYS; AUTHORIZING THE ISSUANCE OF SEVERANCE TAX BONDS FOR STATEWIDE HIGHWAY AND BRIDGE PRESERVATION, REHABILITATION AND RECONSTRUCTION PROJECTS THAT WILL ENHANCE SAFETY AND ECONOMIC DEVELOPMENT; ALLOWING MAXIMUM USE OF FEDERAL HIGHWAY ADMINISTRATION MATCHING FUNDS; MAKING AN APPROPRIATION.

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

     SECTION 1. [NEW MATERIAL] SEVERANCE TAX BONDS--AUTHORIZATION--APPROPRIATION OF PROCEEDS--DISTRICT HIGHWAY PROJECTS.--

          A. The state board of finance may issue and sell severance tax bonds in fiscal years 2016 through 2018 in compliance with the Severance Tax Bonding Act in an amount not exceeding a total of one hundred eighty million dollars ($180,000,000) when the department of transportation certifies the need for the issuance of the bonds; provided that in each of fiscal years 2016, 2017 and 2018, no more than sixty million dollars ($60,000,000) in bonds shall be issued.

          B. 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 state board of finance that, based upon a certification from the department of transportation, the proceeds of the bonds are needed and that the projects can proceed to contract within a reasonable time. The state board of finance shall further take the appropriate steps necessary to comply with the federal Internal Revenue Code of 1986, as amended. The state board of finance may issue and sell the bonds in the same manner as other severance tax bonds in an amount not to exceed the authorized amount provided for in this section.

          C. The proceeds from the sale of the bonds are appropriated to the department of transportation for state highway projects as follows:

                (1) by August 1, 2015, the department of transportation in consultation with the economic development department shall identify highway and bridge preservation, rehabilitation and reconstruction projects statewide that will also promote safety and local economic development that can be planned and brought to bid in each of fiscal years 2016, 2017 and 2018;

                (2) the proceeds of the bonds issued in each of fiscal years 2016, 2017 and 2018 shall be used to perform the projects identified in Paragraph (1) of this subsection; and

                (3) notwithstanding any provision of the Procurement Code to the contrary, the department of transportation in performing the projects may use for any project over twenty-five million dollars ($25,000,000) any competitive bid project delivery procurement method endorsed, approved or authorized by the federal highway administration for projects receiving federal financial aid that in the department's estimation will provide faster delivery than a traditional design, bid and build procurement method.

          D. Money from the severance tax bonds provided for in this section shall not be used to pay indirect costs. Any unexpended or unencumbered balance of the proceeds of the bonds remaining at the end of fiscal year 2022 shall revert to the severance tax bonding fund. If the department of transportation has not certified the need for the issuance of the bonds by July 1, 2018, the authorization provided in this section shall expire.

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