HB0026

HOUSE BILL 26

54th legislature - STATE OF NEW MEXICO - second session, 2020

INTRODUCED BY

Patricia A. Lundstrom and Roberto "Bobby” J. Gonzales

and Michael Padilla

AN ACT

RELATING TO TRANSPORTATION; CREATING THE HIGHWAY PROJECT FUND; CHANGING THE "LOCAL GOVERNMENT TRANSPORTATION PROJECT FUND" TO THE "TRANSPORTATION PROJECT FUND"; ALLOWING INDIAN NATION, TRIBE OR PUEBLO PROJECTS TO BE FUNDED BY THE TRANSPORTATION PROJECT FUND; DISTRIBUTING REVENUE IN EXCESS OF A FIVE-YEAR AVERAGE OF MONEY RECEIVED BY THE STATE PURSUANT TO THE FEDERAL MINERAL LEASING ACT TO THE STATE ROAD FUND AND THE TRANSPORTATION PROJECT FUND; MAKING AN APPROPRIATION.

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

SECTION 1. [NEW MATERIAL] HIGHWAY PROJECT FUND.--

A. The "highway project fund" is created in the state treasury. Income from investment of the fund shall be credited to the fund. Money in the fund shall be expended as provided in this section. Money in the fund shall not revert to the general fund.

B. On July 1 of each year, a distribution shall be made from the highway project fund to the state road fund in an amount equal to the greater of five percent of the average of the year-end market values of the fund for the immediately preceding five calendar years or:

(1) on July 1, 2020, twenty million dollars ($20,000,000);

(2) on July 1, 2021, thirty million dollars ($30,000,000); and

(3) on July 1, 2022 and each July 1 thereafter, forty million dollars ($40,000,000).

C. In addition to the distribution pursuant to Subsection B of this section, money in the highway project fund may be expended as follows:

(1) up to fifty percent of the balance of the highway project fund may be appropriated by a two-thirds' majority vote of both houses of the legislature following receipt by the legislature of a declaration of the governor that such an appropriation is necessary for the public peace, health and safety; provided that such appropriation shall not interfere with the distribution pursuant to Subsection B of this section for the current and following fiscal year; and

(2) 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 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 highway project fund to the general fund up to the amount necessary to meet general fund appropriations.

SECTION 2. [NEW MATERIAL] DISTRIBUTION--STATE ROAD FUND-- TRANSPORTATION PROJECT FUND--PAYMENTS PURSUANT TO FEDERAL MINERAL LEASING ACT.--

A. If, by June 30 of each fiscal year, the net receipts for that fiscal year of the money received by the state pursuant to the federal Mineral Leasing Act exceed the annual average amount, seventy-five percent of the excess shall be distributed to the state road fund and twenty-five percent of the excess shall be distributed to the transportation project fund. If there is an excess amount, the distributions shall be made as soon as practicable. If there is not an excess amount, no distribution shall be made. The department of finance and administration shall make the calculation to determine if an excess amount shall be distributed.

B. As used in this section, "annual average amount" means the total net receipts attributable to money received by the state pursuant to the federal Mineral Leasing Act in the immediately preceding five fiscal years, divided by five.

SECTION 3. Section 22-8-34 NMSA 1978 (being Laws 1967, Chapter 16, Section 90, as amended) is amended to read:

"22-8-34. FEDERAL MINERAL LEASING FUNDS.--

A. [Except for an annual appropriation to the instructional material fund and to the bureau of geology and mineral resources of the New Mexico institute of mining and technology, and except as provided in Subsection B of this section, all other] Money received by the state pursuant to the provisions of the federal Mineral [Lands] Leasing Act [30 USCA 181, et seq.] shall be distributed to the public school fund, except as follows:

(1) an annual appropriation to the instructional material fund;

(2) an annual appropriation to the board of regents of the New Mexico institute of mining and technology for the bureau of geology and mineral resources;

(3) the distribution made pursuant to Subsection B of this section; and

(4) the distribution made pursuant to Section 2 of this 2020 act.

B. [All] Money received by the state as its share of a prepayment of royalties pursuant to 30 U.S.C. 1726(b), as that section may be amended or renumbered, shall be distributed as follows:

(1) a portion of the receipts, estimated by the taxation and revenue department to be equal to the amount that the state would have received as its share of royalties in the same fiscal year if the prepayment had not been made, shall be distributed to the public school fund; and

(2) the remainder shall be distributed to the common school permanent fund."

SECTION 4. Section 67-3-78 NMSA 1978 (being Laws 2019, Chapter 205, Section 1) is amended to read:

"67-3-78. [DEFINITIONS LOCAL GOVERNMENT] TRANSPORTATION PROJECT FUND CREATED--[DISTRIBUTIONS] PLANNING AND PRIORITIZATION OF FUNDING TRANSPORTATION PROJECTS FOR COUNTIES, MUNICIPALITIES AND TRIBES.--

[A. As used in this section:

(1) "fund" means the local government transportation project fund;

(2) "local government" means a county or municipality;

(3) "local government transportation project" means environmental and other studies, planning, design, construction and acquisition of rights of way necessary for the development of transportation infrastructure in a county or municipality;

(4) "non-state money" means money that does not derive from revenue or interest into the state treasury or into a state fund; and

(5) "transportation infrastructure" means highways, streets, roadways, bridges, crossing structures and parking facilities, including all areas for vehicular use for travel, ingress, egress and parking.

B.] A. The "[local government] transportation project fund" is created in the state treasury. The fund consists of appropriations, donations, interest from investment of the fund and other money distributed to the fund. The department shall administer the fund and may establish subaccounts for the fund as it deems necessary. Money in the fund is appropriated to the department for expenditure as provided in this section; provided that money in the fund is subject to appropriation by the legislature for any purpose. Disbursements from the fund shall be made by warrant of the secretary of finance and administration pursuant to vouchers signed by the secretary of transportation or the secretary's designee. Money in the fund shall not revert at the end of a fiscal year.

[C.] B. Money in the fund may be used to make a grant to a [local government] county, municipality or tribe for a [local government] transportation project that has been approved pursuant to Subsection [D] C of this section for up to:

(1) ninety-five percent of the total cost of a [local government] transportation project; provided that the [local government] county, municipality or tribe has demonstrated an ability, and has contracted, to provide the remainder of the project costs in non-state money; or

(2) one hundred percent of the total cost of a [local government] transportation project if a financial hardship qualification certificate is issued to the [local government] county, municipality or tribe by the department of finance and administration and the level of hardship assistance is approved by the state transportation commission; provided that the [local government] county, municipality or tribe has demonstrated an ability, and has contracted, to provide the remainder, if any, of the project costs in non-state money.

[D.] C. By [August 1, 2019 and by] August 1 of each year [thereafter], the secretary shall submit a proposed list to the state transportation commission of [local government] transportation projects identified through a transportation planning process by [the department's metropolitan planning organization and regional transportation planning organization planning process to the state transportation commission. Subject to any direction by the legislature regarding distributions from the fund, such as minimum distributions by engineering districts or to rural or urbanized local governments] metropolitan planning organizations and regional transportation planning organizations. The commission shall approve a prioritized list of [local government] the transportation projects for funding from the fund by [September 1, 2019 and by] September 1 of each year [thereafter]. The commission may approve subsequent changes to a priority list as [it] the commission deems necessary.

[E.] D. By [November 30, 2019 and by] November 30 of each year [thereafter], the department shall provide a report to the appropriate interim legislative committee on the status of the fund, the status of the [local government] transportation projects for which grants have been made from the fund and the outstanding demand for assistance from the fund.

E. As used in this section:

(1) "fund" means the transportation project fund;

(2) "metropolitan planning organization" means the policy board of an organization designated by the state to carry out a transportation planning process as permitted by federal law pursuant to 23 U.S.C. 134, as that section may be amended or renumbered;

(3) "non-state money" means money that does not derive from revenue or interest into the state treasury or into a state fund;

(4) "regional transportation planning organization" means the policy board of an organization designated by the state to carry out a transportation planning process as permitted by federal law pursuant to 23 U.S.C. 135, as that section may be amended or renumbered;

(6) "transportation project" means environmental and other studies, planning, design, construction and maintenance of transportation infrastructure, and acquisition of rights of way necessary for the development of transportation infrastructure, in a county, municipality or tribe, but "transportation project" does not mean a beautification project, as determined by the state transportation commission; and

(7) "tribe" means an Indian nation, tribe or pueblo located wholly or partially in New Mexico."

SECTION 5. APPROPRIATION.--Two hundred million dollars ($200,000,000) is appropriated from the general fund to the highway project fund for expenditure in fiscal year 2020 and subsequent fiscal years to provide initial funding to the highway project fund. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund.

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