0001| HOUSE BILL 344 | 0002| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998 | 0003| INTRODUCED BY | 0004| J. "ANDY" KISSNER | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO FINANCING OF HIGHWAY PROJECTS; AUTHORIZING THE | 0012| GOVERNOR TO IMPOSE A HIGHWAY BONDING GASOLINE TAX UNDER | 0013| CERTAIN CONDITIONS; INCREASING THE BONDING AUTHORITY OF THE | 0014| STATE HIGHWAY COMMISSION AND AUTHORIZING ISSUANCE OF STATE | 0015| HIGHWAY BONDS FOR FIVE CONSTRUCTION PROJECTS; LIMITING THE USE | 0016| OF STATE ROAD REVENUES; AMENDING AND ENACTING SECTIONS OF THE | 0017| NMSA 1978. | 0018| | 0019| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0020| Section 1. Section 7-1-6.7 NMSA 1978 (being Laws 1994, | 0021| Chapter 5, Section 2, as amended by Laws 1995, Chapter 6, | 0022| Section 1 and also by Laws 1995, Chapter 36, Section 1) is | 0023| amended to read: | 0024| "7-1-6.7. DISTRIBUTIONS--STATE AVIATION FUND.-- | 0025| A. A distribution pursuant to Section 7-1-6.1 NMSA | - 1 - 0001| 1978 shall be made to the state aviation fund in an amount | 0002| equal to three and fifty-nine hundredths percent of the gross | 0003| receipts attributable to the sale of fuel specially prepared | 0004| and sold for use in turboprop or jet-type engines as | 0005| determined by the department. | 0006| B. A distribution pursuant to Section 7-1-6.1 NMSA | 0007| 1978 shall be made to the state aviation fund in an amount | 0008| equal to twenty-six hundredths of one percent of ~[gasoline | 0009| taxes]~ |the net receipts|, exclusive of penalties and | 0010| interest, ~[collected pursuant to the Gasoline Tax Act]~ | 0011| |attributable to the gasoline tax|." | 0012| Section 2. Section 7-1-6.9 NMSA 1978 (being Laws 1991, | 0013| Chapter 9, Section 11, as amended) is amended to read: | 0014| "7-1-6.9. DISTRIBUTION OF GASOLINE TAXES TO | 0015| MUNICIPALITIES AND COUNTIES.-- | 0016| A. A distribution pursuant to Section 7-1-6.1 NMSA | 0017| 1978 shall be made in an amount equal to ten and thirty-eight | 0018| hundredths percent of the net receipts ~[attributable to the | 0019| taxes]~, exclusive of penalties and interest, ~[imposed by the | 0020| Gasoline Tax Act]~ |attributable to the gasoline tax|. | 0021| B. The amount determined in Subsection A of this | 0022| section shall be distributed as follows: | 0023| (1) ninety percent of the amount shall be | 0024| paid to the treasurers of municipalities and H class counties | 0025| in the proportion that the taxable motor fuel sales in each of | - 2 - 0001| the municipalities and H class counties bears to the aggregate | 0002| taxable motor fuel sales in all of these municipalities and H | 0003| class counties; and | 0004| (2) ten percent of the amount shall be paid | 0005| to the treasurers of the counties, including H class counties, | 0006| in the proportion that the taxable motor fuel sales outside of | 0007| incorporated municipalities in each of the counties bears to | 0008| the aggregate taxable motor fuel sales outside of incorporated | 0009| municipalities in all of the counties. | 0010| C. This distribution shall be paid into the | 0011| municipal treasury or county general fund for general purposes | 0012| or for any special purposes designated by the governing body | 0013| of the municipality or county. Any municipality or H class | 0014| county that has created or that creates a "street improvement | 0015| fund" to which gasoline tax revenues or distributions are | 0016| irrevocably pledged under Sections 3-34-1 through 3-34-4 NMSA | 0017| 1978 or that has pledged all or a portion of gasoline tax | 0018| revenues or distributions to the payment of bonds shall | 0019| receive its proportion of the distribution of revenues under | 0020| this section impressed with and subject to these pledges." | 0021| Section 3. Section 7-13-3.1 NMSA 1978 (being Laws 1979, | 0022| Chapter 166, Section 7, as amended) is amended to read: | 0023| "7-13-3.1. GASOLINE INVENTORY TAX--IMPOSITION OF TAX-- | 0024| DATE PAYMENT OF TAX DUE.-- | 0025| A. A gasoline inventory tax is imposed measured by | - 3 - 0001| the quantity of gallons of gasoline in the possession of a | 0002| distributor or wholesaler on the day ~[in]~ |on| which an | 0003| increase in the excise tax imposed by Section 7-13-3 NMSA 1978 | 0004| |or the initial imposition of or increase in the excise tax | 0005| imposed by Section 7-13-3.6 NMSA 1978| is effective. The | 0006| taxable event is the existence of an inventory in the | 0007| possession of a distributor or wholesaler on the day prior to | 0008| the day ~[in]~ |on| which an increase in the excise tax | 0009| imposed by Section 7-13-3 NMSA 1978 |or the initial imposition | 0010| of or increase in the excise tax imposed by Section 7-13-3.6 | 0011| NMSA 1978| is effective. The rate of the gasoline inventory | 0012| tax to apply on each gallon of gasoline held in inventory by a | 0013| distributor or wholesaler, as provided in Section 7-13-3.2 | 0014| NMSA 1978, shall be the difference between the gasoline | 0015| ~[excise]~ tax rate|| or the highway bonding gasoline tax | 0016| rate, whichever is applicable, imposed on the day prior to the | 0017| day ~[in]~ |on| which the ~[gasoline excise]~ |applicable| tax | 0018| is increased |or initially imposed| subtracted from the | 0019| ~[gasoline excise]~ |applicable| tax rate imposed on the day | 0020| that the ~[gasoline excise]~ |applicable| tax rate increase | 0021| |or imposition| is effective, expressed in cents per gallon. | 0022| B. The gasoline inventory tax is to be paid to the | 0023| department on or before the twenty-fifth day of the month | 0024| following the month in which the taxable event occurs." | 0025| Section 4. Section 7-13-3.2 NMSA 1978 (being Laws 1979, | - 4 - 0001| Chapter 166, Section 8, as amended) is amended to read: | 0002| "7-13-3.2. GASOLINE INVENTORIES.-- | 0003| A. On the day prior to the day that the excise tax | 0004| imposed by Section 7-13-3 NMSA 1978 is increased |or the | 0005| excise tax imposed by Section 7-13-3.6 NMSA 1978 is initially | 0006| imposed or increased|, each distributor, wholesaler and | 0007| retailer shall take inventory of the gallons of gasoline on | 0008| hand. | 0009| B. Distributors and wholesalers shall report total | 0010| gallons of gasoline in inventory on the day prior to the day | 0011| that an increase in the gasoline tax rate |or the initial | 0012| imposition or an increase in the highway bonding gasoline tax | 0013| rate| is effective and pay any tax due imposed by Section | 0014| 7-13-3.1 NMSA 1978. | 0015| C. Retailers shall maintain a record of the total | 0016| gallons of gasoline in inventory on the day prior to the day | 0017| that an increase in the gasoline tax rate |or the initial | 0018| imposition or an increase in the highway bonding gasoline tax | 0019| rate| is effective and shall not increase the price of the | 0020| gasoline sold until the inventory is disposed of in the | 0021| ordinary course of business." | 0022| Section 5. A new section of the Gasoline Tax Act, | 0023| Section 7-13-3.6 NMSA 1978, is enacted to read: | 0024| "7-13-3.6. [|NEW MATERIAL|] IMPOSITION AND RATE OF | 0025| HIGHWAY BONDING GASOLINE TAX--LIMITATION.-- | - 5 - 0001| A. The governor is authorized, subject to the | 0002| limitations of this section, to impose for the privilege of | 0003| receiving gasoline in this state an excise tax at a rate not | 0004| to exceed five cents ($.05) per gallon of gasoline received in | 0005| New Mexico. The tax may be imposed in any number of one-cent | 0006| ($.01) increments and may be referred to as the "highway | 0007| bonding gasoline tax". The proceeds from the tax shall be | 0008| used only to secure or pay state highway bonds issued pursuant | 0009| to Paragraph (3) of Subsection C of Section 67-3-59.1 NMSA | 0010| 1978. | 0011| B. The governor may impose any increment of the | 0012| tax authorized by Subsection A of this section only upon a | 0013| finding that the tax increase is necessary because there are | 0014| insufficient revenues available in the state road fund to | 0015| pledge for the issuance of the amounts of state highway bonds | 0016| that: | 0017| (1) are authorized pursuant to Paragraph (3) | 0018| of Subsection C of Section 67-3-59.1 NMSA 1978; and | 0019| (2) are needed to fund statewide road | 0020| improvements that the state highway commission certifies are | 0021| necessary for purposes of safety, commerce and economic | 0022| development. | 0023| C. The tax authorized to be imposed pursuant to | 0024| this section shall become effective only upon July 1 or | 0025| January 1, whichever date occurs first, after the expiration | - 6 - 0001| of at least three months from the date the governor issues the | 0002| finding pursuant to Subsection B of this section." | 0003| Section 6. Section 7-13-5 NMSA 1978 (being Laws 1971, | 0004| Chapter 207, Section 5, as amended) is amended to read: | 0005| "7-13-5. TAX RETURNS--PAYMENT OF TAX.--Distributors | 0006| shall file gasoline tax |and highway bonding gasoline tax| | 0007| returns in form and content as prescribed by the secretary on | 0008| or before the twenty-fifth day of the month following the | 0009| month in which gasoline is received in New Mexico. Such | 0010| returns shall be accompanied by payment of the amount of | 0011| gasoline tax |or highway bonding gasoline tax| due." | 0012| Section 7. Section 7-13-13 NMSA 1978 (being Laws 1971, | 0013| Chapter 207, Section 12, as amended) is amended to read: | 0014| "7-13-13. PERMIT TO PURCHASE DYED GASOLINE AND APPLY FOR | 0015| REFUND OF ~[GASOLINE]~ TAX ON GASOLINE NOT USED IN MOTOR BOATS | 0016| OR IN MOTOR VEHICLES OPERATED ON HIGHWAYS OF THIS STATE.-- | 0017| A. Each person who wishes to purchase gasoline | 0018| dyed in accordance with the provisions of Section 7-13-15 NMSA | 0019| 1978 and to claim a refund of gasoline tax |and highway | 0020| bonding gasoline tax| paid on such gasoline under the | 0021| provisions of Section 7-13-14 NMSA 1978 shall apply for and | 0022| obtain a permit to do so from the department. The application | 0023| for the permit shall be in form and content as prescribed by | 0024| the department. | 0025| B. The secretary may, upon notice and after | - 7 - 0001| hearing, suspend the gasoline tax |and highway bonding | 0002| gasoline tax| refund permit of any person who makes any false | 0003| statement on an application for a permit or on a claim for | 0004| refund made under Section 7-13-14 NMSA 1978 who uses gasoline | 0005| dyed in accordance with Section 7-13-15 NMSA 1978 in a motor | 0006| boat or in a vehicle licensed to operate on the highways of | 0007| this state or who violates any other provision of the Gasoline | 0008| Tax Act. Such suspension may be, in the discretion of the | 0009| secretary, for a period of up to one year." | 0010| Section 8. Section 7-13-14 NMSA 1978 (being Laws 1971, | 0011| Chapter 207, Section 13, as amended) is amended to read: | 0012| "7-13-14. CLAIM FOR REFUND OF ~[GASOLINE]~ TAX PAID ON | 0013| GASOLINE NOT USED IN MOTOR BOATS OR IN MOTOR VEHICLES LICENSED | 0014| TO OPERATE ON HIGHWAYS OF THIS STATE.--Upon submission of | 0015| proof satisfactory to the department, the department shall | 0016| allow a claim for refund of gasoline tax |and highway bonding | 0017| gasoline tax| paid on dyed gasoline purchased and used within | 0018| six months prior to the filing of the claim by holders of | 0019| permits issued under Section 7-13-13 NMSA 1978. The | 0020| individual purchases of such gasoline, other than that to be | 0021| used as aviation fuel, must have been made in quantities of | 0022| fifty gallons or more. Purchasers of aviation fuel may | 0023| accumulate invoices to reach the minimum required for filing a | 0024| claim for refund. No claim for refund may be presented on | 0025| less than one hundred gallons so purchased. The secretary | - 8 - 0001| may, by regulation, prescribe the documents necessary to | 0002| support a claim for refund and the invoice and sales procedure | 0003| to be followed by sellers and purchasers of gasoline not | 0004| intended to be used in motor boats or in motor vehicles | 0005| licensed to operate on the highways of this state by the motor | 0006| vehicle division of the department." | 0007| Section 9. Section 67-3-59.1 NMSA 1978 (being Laws 1989, | 0008| Chapter 157, Section 1, as amended) is amended to read: | 0009| "67-3-59.1. STATE HIGHWAY DEBENTURES--ISSUANCE--LIMITS-- | 0010| APPROVAL--COUPONS.-- | 0011| A. In order to provide funds to finance state | 0012| highway projects, including state highway projects that are | 0013| required for the waste isolation pilot project and are | 0014| eligible for federal reimbursement |or payment| as authorized | 0015| by federal legislation, the state highway commission is | 0016| authorized to issue bonds from time to time, payable from: | 0017| |(1) federal funds not otherwise obligated | 0018| that are paid into the state road fund;| | 0019| |(2) contributions of a county or | 0020| municipality, if any, to the expense of a project as | 0021| determined by a cooperative agreement made pursuant to Section | 0022| 67-3-28 NMSA 1978 and deposited in the state road fund; and| | 0023| |(3)| the proceeds of the collection of | 0024| ~[gasoline excise]~ taxes and ~[motor vehicle registration]~ | 0025| fees that are required by law to be paid into the state road | - 9 - 0001| fund and not otherwise pledged solely to the payment of | 0002| outstanding bonds and debentures. | 0003| B. The total aggregate outstanding principal | 0004| amount of bonds issued from time to time pursuant to this | 0005| section, secured by or payable from ~[the gasoline excise | 0006| taxes and motor vehicle registration fees]~ |federal funds not | 0007| otherwise obligated that are paid into the state road fund, | 0008| county or municipal contributions deposited in the state road | 0009| fund pursuant to a cooperative agreement and the proceeds from | 0010| the collection of taxes and fees required by law to be paid | 0011| into the state road fund| shall not, without additional | 0012| authorization of the state legislature, exceed ~[one hundred | 0013| fifty million dollars ($150,000,000)]~ at any given time, | 0014| subject to the ~[following]~ provisions |of Subsection C of | 0015| this section, the following amounts:| | 0016| |(1) prior to July 1, 1998, one hundred fifty | 0017| million dollars ($150,000,000);| | 0018| |(2) from July 1, 1998 through June 30, 1999, | 0019| five hundred million dollars ($500,000,000); and| | 0020| |(3) after June 30, 1999, one billion one | 0021| hundred million dollars ($1,100,000,000).| | 0022| |C. The total aggregate outstanding principal | 0023| amount of bonds authorized pursuant to Subsection B of this | 0024| section shall be subject to the following provisions|: | 0025| (1) the total aggregate outstanding principal | - 10 - 0001| amount of bonds issued for state highway projects that are | 0002| required for the waste isolation pilot project and are | 0003| eligible for federal reimbursement |or payment| as authorized | 0004| by federal legislation shall not exceed ~[one hundred million | 0005| dollars ($100,000,000); and]~ |two hundred million dollars | 0006| ($200,000,000)|; | 0007| (2) the total aggregate outstanding principal | 0008| amount of bonds issued for state highway projects other than | 0009| state highway projects that are required for the waste | 0010| isolation pilot project and are eligible for federal | 0011| reimbursement |or payment| as authorized by federal | 0012| legislation shall not exceed: | 0013| |(a) prior to July 1, 1998|, fifty | 0014| million dollars ($50,000,000); | 0015| |(b) from July 1, 1998 through June 30, | 0016| 1999, three hundred million dollars ($300,000,000); and| | 0017| |(c) after June 30, 1999, nine hundred | 0018| million dollars ($900,000,000); and| | 0019| | (3) the proceeds from the sale of bonds | 0020| issued after July 1, 1998 pursuant to the additional authority | 0021| added in Subparagraphs (b) and (c) of Paragraph (2) of this | 0022| subsection shall be used for planning, designing, engineering | 0023| and constructing and for acquiring rights of way for the | 0024| following projects:| | 0025| | (a) the reconstruction of the | - 11 - 0001| interstate 40 and interstate 25 interchange in Albuquerque; | 0002| (b) the limited-access construction and | 0003| necessary interchanges for United States highway 70 from Las | 0004| Cruces east to White Sands missile range road; | 0005| (c) construction of the Santa Fe relief | 0006| route and required interchanges; | 0007| (d) improvement of United States | 0008| highway 84 and 285 from Santa Fe to Pojoaque; and | 0009| (e) the four-lane construction and | 0010| improvement of state highway 44 from Bernalillo to | 0011| Bloomfield|. | 0012| ~[C.]~ |D.| The state highway commission may issue | 0013| bonds to refund other bonds issued pursuant to this section by | 0014| exchange or current or advance refunding. | 0015| ~[D.]~ |E.| Each series of bonds shall have a | 0016| maturity of no more than twenty-five years from the date of | 0017| issuance; |provided that bonds issued after July 1, 1998 | 0018| pursuant to Subparagraphs (b) and (c) of Paragraph (2) of | 0019| Subsection C of this section shall have a maturity of no more | 0020| than ten years from the date of issuance|. The state highway | 0021| commission shall determine all other terms, covenants and | 0022| conditions of the bonds; provided that the bonds shall not be | 0023| issued pursuant to this section unless the state board of | 0024| finance approves the issuance of the bonds and the principal | 0025| amount of and interest rate or maximum net effective interest | - 12 - 0001| rate on the bonds. | 0002| ~[E.]~ |F.| The bonds shall be executed with the | 0003| manual or facsimile ~[signatures]~ |signature| of the chairman | 0004| of the state highway commission, countersigned by the state | 0005| treasurer and attested to by the secretary of the state | 0006| highway commission, with the seal of the state highway | 0007| commission imprinted or otherwise affixed to the bonds. | 0008| ~[F.]~ |G.| Proceeds of the bonds may be used to | 0009| pay expenses incurred in the preparation, issuance and sale of | 0010| the bonds and, together with the earnings on the proceeds of | 0011| the bonds, may be used to pay rebate, penalty, interest and | 0012| other obligations relating to the bonds and the proceeds of | 0013| the bonds under the Internal Revenue Code of 1986, as amended. | 0014| ~[G.]~ |H.| The bonds may be sold at public or | 0015| private sale |or through the New Mexico finance authority|. | 0016| If sold at public sale, a notice of the time and place of sale | 0017| shall be published in a newspaper of general circulation in | 0018| the state, and in any other newspaper determined in the | 0019| resolution authorizing the issuance of the bonds, once each | 0020| week for two consecutive weeks prior to the date of sale. The | 0021| bonds may be purchased by the state treasurer or state | 0022| investment officer. | 0023| ~[H.]~ |I.| This section is full authority for the | 0024| issuance and sale of the bonds, and the bonds shall not be | 0025| invalid for any irregularity or defect in the proceedings for | - 13 - 0001| their issuance and sale and shall be incontestable in the | 0002| hands of bona fide purchasers or holders of the bond for | 0003| value. | 0004| ~[I.]~ |J.| The bonds shall be legal investments | 0005| for any person or board charged with the investment of public | 0006| funds and may be accepted as security for any deposit of | 0007| public money and, with the interest thereon, are exempt from | 0008| taxation by the state and any political subdivision or agency | 0009| of the state. | 0010| |K. Any law authorizing the imposition or | 0011| distribution of taxes or fees paid into the state road fund or | 0012| that affects those taxes and fees shall not be amended or | 0013| repealed or otherwise directly or indirectly modified so as to | 0014| impair any outstanding bonds secured by a pledge of revenues | 0015| from those taxes and fees paid into the state road fund, | 0016| unless the bonds have been discharged in full or provisions | 0017| have been made for a full discharge. In addition, while any | 0018| bonds issued by the state highway commission pursuant to the | 0019| provisions of this section remain outstanding, the powers or | 0020| duties of the commission shall not be diminished or impaired | 0021| in any manner that will affect adversely the interests and | 0022| rights of the holder of such bonds.| | 0023| |L. Bonds issued pursuant to this section shall be | 0024| paid solely from federal funds not otherwise obligated, taxes | 0025| and fees and county and municipal contributions deposited into | - 14 - 0001| the state road fund and shall not constitute a general | 0002| obligation of the state.|" | 0003| Section 10. Section 67-3-65 NMSA 1978 (being Laws 1973, | 0004| Chapter 145, Section 1, as amended) is amended to read: | 0005| "67-3-65. STATE ROAD FUND CREATED.-- | 0006| |A.| The "state road fund" is created within the | 0007| state treasury to which shall be credited all receipts | 0008| authorized by law to be paid into it. No income earned on the | 0009| fund shall be transferred to another fund. |For fiscal year | 0010| 2000 and subsequent fiscal years, money in the state road fund | 0011| after payment of the administrative fee pursuant to Subsection | 0012| B of this section shall be used solely for highway and | 0013| transportation programs and purposes administered by the state | 0014| highway and transportation department.| | 0015| |B. For July 1999 and subsequent months, to defray | 0016| the costs of administering the collection of taxes and fees | 0017| that constitute the state road fund, an administrative fee of | 0018| two and one-half percent is imposed on revenues deposited in | 0019| the state road fund. The administrative fee shall be imposed | 0020| on all revenues deposited each month in the state road fund | 0021| other than federal funds, bond proceeds and county and | 0022| municipal contributions pursuant to a cooperative agreement. | 0023| The department shall transmit the fee to the state treasurer | 0024| for deposit in the general fund no later than the tenth day of | 0025| the month following the month for which the fee was | - 15 - 0001| calculated.|" | 0002| Section 11. EFFECTIVE DATE.--The effective date of the | 0003| provisions of this act is July 1, 1998. | 0004|  |