0001| HOUSE BILL 179 | 0002| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998 | 0003| INTRODUCED BY | 0004| RON GENTRY | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO FINANCING OF HIGHWAY PROJECTS; INCREASING THE | 0012| BONDING AUTHORITY OF THE STATE HIGHWAY COMMISSION FOR CERTAIN | 0013| HIGHWAY PROJECTS; CHANGING THE DISTRIBUTION OF MOTOR VEHICLE | 0014| EXCISE TAX REVENUES; CREATING THE LOCAL ROAD PROJECTS FUND; | 0015| LIMITING THE USE OF STATE ROAD FUND REVENUES; AMENDING AND | 0016| ENACTING SECTIONS OF THE NMSA 1978; MAKING AN APPROPRIATION. | 0017| | 0018| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0019| Section 1. [|NEW MATERIAL|] LEGISLATIVE FINDINGS-- | 0020| PURPOSE.-- | 0021| A. The legislature finds that there is high | 0022| unemployment and a lack of jobs in many areas of the state. | 0023| Further, the current effort by the federal government and the | 0024| state to reduce the number of individuals in need of welfare | 0025| makes it imperative to create not only more jobs, but good | - 1 - 0001| jobs. Finally, the legislature finds that highway | 0002| construction projects can provide those jobs in many areas of | 0003| the state and at the same time make urgently needed road | 0004| improvements that will enhance and support economic | 0005| development efforts and purposes. | 0006| B. It is the purpose of this act to raise revenues | 0007| for the most urgent highway projects throughout the state, to | 0008| provide good jobs for New Mexicans in many areas of the state, | 0009| to ensure the use of road revenues for highway projects and to | 0010| enhance and meet economic development purposes and needs | 0011| throughout the state. | 0012| Section 2. A new section of Chapter 67, Article 3 NMSA | 0013| 1978 is enacted to read: | 0014| "[|NEW MATERIAL|] LOCAL ROAD PROJECTS FUND CREATED-- | 0015| PURPOSE.--The "local road projects fund" is created in the | 0016| state treasury and shall be administered by the state highway | 0017| and transportation department. The fund shall consist of | 0018| motor vehicle excise tax revenues distributed to the fund and | 0019| any other money deposited in or transferred, distributed or | 0020| otherwise appropriated to the fund. Money in the fund may be | 0021| appropriated by the legislature for local municipal and county | 0022| road projects. Balances in the fund at the end of any fiscal | 0023| year shall remain in the fund and be available for | 0024| appropriation for local road projects in subsequent fiscal | 0025| years." | - 2 - 0001| Section 3. Section 7-14-10 NMSA 1978 (being Laws 1988, | 0002| Chapter 73, Section 20, as amended) is amended to read: | 0003| "7-14-10. DISTRIBUTION OF PROCEEDS.--The receipts from | 0004| the tax and any associated interest and penalties shall be | 0005| deposited in the "motor vehicle suspense fund", hereby created | 0006| in the state treasury. As of the end of each month, the net | 0007| receipts attributable to the tax and associated penalties and | 0008| interest shall be distributed ~[to the general fund]~ |as | 0009| follows:| | 0010| |A. prior to July 1, 1999, to the general fund;| | 0011| |B. from July 1, 1999 through June 30, 2000, eight | 0012| hundred thirty-three thousand four hundred dollars ($833,400) | 0013| to the local road projects fund and of the remainder, two- | 0014| thirds to the general fund and one-third to the state road | 0015| fund;| | 0016| |C. from July 1, 2000 through June 30, 2001, eight | 0017| hundred thirty-three thousand four hundred dollars ($833,400) | 0018| to the local road projects fund and of the remainder, one- | 0019| third to the general fund and two-thirds to the state road | 0020| fund; and| | 0021| |D. after June 30, 2001, eight hundred thirty- | 0022| three thousand four hundred dollars ($833,400) to the local | 0023| road projects fund and the remainder to the state road fund|." | 0024| Section 4. Section 67-3-59.1 NMSA 1978 (being Laws 1989, | 0025| Chapter 157, Section 1, as amended) is amended to read: | - 3 - 0001| "67-3-59.1. STATE HIGHWAY DEBENTURES--ISSUANCE--LIMITS-- | 0002| APPROVAL--COUPONS.-- | 0003| A. In order to provide funds to finance state | 0004| highway projects, including state highway projects that are | 0005| required for the waste isolation pilot project and are | 0006| eligible for federal reimbursement |or payment| as authorized | 0007| by federal legislation, the state highway commission is | 0008| authorized to issue bonds from time to time, payable from: | 0009| |(1) federal funds not otherwise obligated | 0010| that are paid into the state road fund;| | 0011| |(2) contributions of a county or | 0012| municipality, if any, to the expense of a project as | 0013| determined by a cooperative agreement made pursuant to Section | 0014| 67-3-28 NMSA 1978 and deposited in the state road fund; and| | 0015| |(3)| the proceeds of the collection of | 0016| ~[gasoline excise]~ taxes and ~[motor vehicle registration]~ | 0017| fees that are required by law to be paid into the state road | 0018| fund and not otherwise pledged solely to the payment of | 0019| outstanding bonds and debentures. | 0020| B. The total aggregate outstanding principal | 0021| amount of bonds issued from time to time pursuant to this | 0022| section, secured by or payable from ~[the gasoline excise | 0023| taxes and motor vehicle registration fees]~ |federal funds not | 0024| otherwise obligated that are paid into the state road fund, | 0025| county or municipal contributions deposited in the state road | - 4 - 0001| fund pursuant to a cooperative agreement and the proceeds from | 0002| the collection of taxes and fees required by law to be paid | 0003| into the state road fund| shall not, without additional | 0004| authorization of the state legislature, exceed ~[one hundred | 0005| fifty million dollars ($150,000,000)]~ at any given time, | 0006| subject to the ~[following]~ provisions |of Subsection C of | 0007| this section, the following amounts:| | 0008| |(1) prior to July 1, 1998, one hundred fifty | 0009| million dollars ($150,000,000);| | 0010| |(2) from July 1, 1998 through June 30, 1999, | 0011| five hundred million dollars ($500,000,000); and| | 0012| |(3) after June 30, 1999, one billion one | 0013| hundred million dollars ($1,100,000,000).| | 0014| |C. The total aggregate outstanding principal | 0015| amount of bonds authorized pursuant to Subsection B of this | 0016| section shall be subject to the following provisions|: | 0017| (1) the total aggregate outstanding principal | 0018| amount of bonds issued for state highway projects that are | 0019| required for the waste isolation pilot project and are | 0020| eligible for federal reimbursement |or payment| as authorized | 0021| by federal legislation shall not exceed ~[one hundred million | 0022| dollars ($100,000,000); and]~ |two hundred million dollars | 0023| ($200,000,000);| | 0024| (2) the total aggregate outstanding principal | 0025| amount of bonds issued for state highway projects other than | - 5 - 0001| state highway projects that are required for the waste | 0002| isolation pilot project and are eligible for federal | 0003| reimbursement |or payment| as authorized by federal | 0004| legislation shall not exceed: | 0005| |(a) prior to July 1, 1998|, fifty million | 0006| dollars ($50,000,000); | 0007| |(b) from July 1, 1998 through June 30, 1999, | 0008| three hundred million dollars ($300,000,000); and| | 0009| |(c) after June 30, 1999, nine hundred | 0010| million dollars ($900,000,000); and| | 0011| |(3) the proceeds from the sale of the bonds after | 0012| July 1, 1998 pursuant to Subparagraphs (b) and (c) of | 0013| Paragraph (2) of this subsection shall be used for planning, | 0014| designing, engineering and constructing and for acquiring | 0015| rights of way for the following projects:| | 0016| |(a) four-lane construction of U.S. highway | 0017| 70;| | 0018| |(b) four-lane construction of U.S. highway | 0019| 550 from Aztec to Colorado;| | 0020| |(c) four-lane construction of U.S. highway | 0021| 285 from Clines Corners to Carlsbad;| | 0022| |(d) construction of a new east-west | 0023| connecting route from state road 47 to interstate 25 south of | 0024| Los Lunas;| | 0025| |(e) construction of the Silver City relief | - 6 - 0001| route;| | 0002| |(f) construction of the Alamogordo relief | 0003| route;| | 0004| |(g) construction of the Albuquerque | 0005| northwest relief route;| | 0006| |(h) improvement of U.S. highway 54;| | 0007| |(i) improvement of U.S. highway 666;| | 0008| |(j) improvement of U.S. highway 84 from | 0009| Espanola through Hernandez;| | 0010| |(k) four-lane construction of U.S. highway | 0011| 285 from interstate 25 to Lamy;| | 0012| |(l) four-lane construction of Sunland Park | 0013| extension;| | 0014| |(m) construction of the Taos relief route;| | 0015| |(n) improvement of N.M. highway 128 from the | 0016| Texas state line to Carlsbad;| | 0017| |(o) construction of the Albuquerque | 0018| southwest relief route;| | 0019| |(p) improvement of U.S. highway 180 from | 0020| Silver City to Deming; and| | 0021| |(q) four-lane construction of U.S. highway | 0022| 62/180 from Carlsbad to White City|. | 0023| ~[C.]~ |D.| The state highway commission may issue | 0024| bonds to refund other bonds issued pursuant to this section by | 0025| exchange or current or advance refunding. | - 7 - 0001| ~[D.]~ |E.| Each series of bonds shall have a | 0002| maturity of no more than twenty-five years from the date of | 0003| issuance; |provided that bonds issued after July 1, 1998 | 0004| pursuant to Subparagraphs (b) and (c) of Paragraph (2) of | 0005| Subsection C of this section shall have a maturity of no more | 0006| than ten years from the date of issuance|. The state highway | 0007| commission shall determine all other terms, covenants and | 0008| conditions of the bonds; provided that the bonds shall not be | 0009| issued pursuant to this section unless the state board of | 0010| finance approves the issuance of the bonds and the principal | 0011| amount of and interest rate or maximum net effective interest | 0012| rate on the bonds. | 0013| ~[E.]~ |F.| The bonds shall be executed with the | 0014| manual or facsimile signatures of the chairman of the state | 0015| highway commission, countersigned by the state treasurer and | 0016| attested to by the secretary of the state highway commission, | 0017| with the seal of the state highway commission imprinted or | 0018| otherwise affixed to the bonds. | 0019| ~[F.]~ |G.| Proceeds of the bonds may be used to | 0020| pay expenses incurred in the preparation, issuance and sale of | 0021| the bonds and, together with the earnings on the proceeds of | 0022| the bonds, may be used to pay rebate, penalty, interest and | 0023| other obligations relating to the bonds and the proceeds of | 0024| the bonds under the Internal Revenue Code of 1986, as amended. | 0025| ~[G.]~ |H.| The bonds may be sold at public or | - 8 - 0001| private sale |or through the New Mexico finance authority|. | 0002| If sold at public sale, a notice of the time and place of sale | 0003| shall be published in a newspaper of general circulation in | 0004| the state, and in any other newspaper determined in the | 0005| resolution authorizing the issuance of the bonds, once each | 0006| week for two consecutive weeks prior to the date of sale. The | 0007| bonds may be purchased by the state treasurer or state | 0008| investment officer. | 0009| ~[H.]~ |I.| This section is full authority for the | 0010| issuance and sale of the bonds, and the bonds shall not be | 0011| invalid for any irregularity or defect in the proceedings for | 0012| their issuance and sale and shall be incontestable in the | 0013| hands of bona fide purchasers or holders of the bond for | 0014| value. | 0015| ~[I.]~ |J.| The bonds shall be legal investments | 0016| for any person or board charged with the investment of public | 0017| funds and may be accepted as security for any deposit of | 0018| public money and, with the interest thereon, are exempt from | 0019| taxation by the state and any political subdivision or agency | 0020| of the state. | 0021| |K. Any law authorizing the imposition or | 0022| distribution of taxes or fees paid into the state road fund or | 0023| that affects those taxes and fees shall not be amended or | 0024| repealed or otherwise directly or indirectly modified so as to | 0025| impair any outstanding bonds secured by a pledge of revenues | - 9 - 0001| from those taxes and fees paid into the state road fund, | 0002| unless the bonds have been discharged in full or provisions | 0003| have been made for a full discharge. In addition, while any | 0004| bonds issued by the state highway commission pursuant to the | 0005| provisions of this section remain outstanding, the powers or | 0006| duties of the commission shall not be diminished or impaired | 0007| in any manner that will affect adversely the interests and | 0008| rights of the holder of such bonds.| | 0009| |L. Bonds issued pursuant to this section shall be | 0010| paid solely from federal funds not otherwise obligated, taxes | 0011| and fees and county and municipal contributions deposited into | 0012| the state road fund and shall not constitute a general | 0013| obligation of the state.|" | 0014| Section 5. Section 67-3-65 NMSA 1978 (being Laws 1973, | 0015| Chapter 145, Section 1, as amended) is amended to read: | 0016| "67-3-65. STATE ROAD FUND CREATED.-- | 0017| |A.| The "state road fund" is created within the | 0018| state treasury to which shall be credited all receipts | 0019| authorized by law to be paid into it. No income earned on the | 0020| fund shall be transferred to another fund. |For fiscal year | 0021| 2000 and subsequent fiscal years, money in the state road fund | 0022| after payment of the administrative fee pursuant to Subsection | 0023| B of this section shall be used solely for highway and | 0024| transportation programs and purposes administered by the state | 0025| highway and transportation department.| | - 10 - 0001| |B. For July 1999 and subsequent months, to defray | 0002| the costs of administering the collection of taxes and fees | 0003| that constitute the state road fund, an administrative fee of | 0004| three percent is imposed on revenues deposited in the state | 0005| road fund. The administrative fee shall be imposed on all | 0006| revenues deposited each month in the state road fund other | 0007| than federal funds, bond proceeds and county and municipal | 0008| contributions pursuant to a cooperative agreement. The | 0009| department shall transmit the fee to the state treasurer for | 0010| deposit in the general fund no later than the tenth day of the | 0011| month following the month for which the fee was calculated.|" | 0012| Section 6. EFFECTIVE DATE.--The effective date of the | 0013| provisions of this act is July 1, 1998. | 0014|  |