February 14, 2000
Mr. Speaker:
Your TAXATION AND REVENUE COMMITTEE, to whom has been referred
HOUSE BILL 13, as amended
has had it under consideration and reports same with recommendation that it DO PASS, amended as follows:
1. Strike all House Transportation Committee amendments.
2. On page 6, between lines 20 and 21, insert:
"Section 2. Section 67-3-59.1 NMSA 1978 (being Laws 1989, Chapter 157, Section 1, as amended) is amended to read:
"67-3-59.1. STATE HIGHWAY DEBENTURES--ISSUANCE--LIMITS--APPROVAL--COUPONS.--
A. In order to provide funds to finance state highway projects, including state highway projects that are required for the waste isolation pilot project and are eligible for federal reimbursement or payment as authorized by federal legislation, the state highway commission is authorized, subject to the limitations of this section, to issue bonds from time to time, payable from federal funds not otherwise obligated that are paid into the state road fund and the proceeds of the collection of taxes and fees that are required by law to be paid into the state road fund and not otherwise pledged solely to the payment of outstanding bonds and debentures.
B. Except as provided in Subsections C and D of this section, the total aggregate outstanding principal amount of bonds issued from time to time pursuant to this section, secured by or payable from federal funds not otherwise obligated that are paid into the state road fund and the proceeds from the collection of taxes and fees required by law to be paid into the state road fund, shall not, without additional authorization of the state legislature, exceed one hundred fifty million dollars ($150,000,000) at any given time, subject to the following provisions:
(1) the total aggregate outstanding principal amount of bonds issued for state highway projects that are required for the waste isolation pilot project and are eligible for federal reimbursement or payment as authorized by federal legislation shall not exceed one hundred million dollars ($100,000,000); and
(2) the total aggregate outstanding principal amount of bonds issued for state highway projects other than state highway projects that are required for the waste isolation pilot project and are eligible for federal reimbursement or payment as authorized by federal legislation shall not exceed fifty million dollars ($50,000,000).
C. Upon specific authorization and appropriation by the legislature, and subject to the limitations of Subsection D of this section, an additional amount of bonds may be issued pursuant to this section for state highway projects, to be secured by or payable from taxes or fees required by law to be paid into the state road fund and federal funds not otherwise obligated that are paid into the state road fund, and, as applicable, taxes or fees required by law to be paid into the highway infrastructure fund, as follows:
(1) an aggregate outstanding principal amount of bonds, not to exceed six hundred twenty-four million dollars ($624,000,000), for major highway infrastructure projects for which the department has, prior to January 1, 1998, submitted or initiated the process of submitting a plan to the federal highway administration for innovative financing pursuant to 23 USCA Sections 122 and 307;
(2) an aggregate outstanding principal amount of bonds, not to exceed one hundred million dollars ($100,000,000), for state highway projects that are required for the waste isolation pilot project and are eligible for federal reimbursement; and
(3) an aggregate outstanding principal amount of bonds, not to exceed four hundred million dollars ($400,000,000), for other state highway projects.
D. The total amount of bonds that may be issued by the state highway commission for state highway projects pursuant to Subsection C of this section shall not exceed a total aggregate outstanding principal amount of:
(1) three hundred million dollars ($300,000,000) prior to July 1, 1999;
(2) six hundred million dollars ($600,000,000) from July 1, 1999 through June 30, 2000;
(3) nine hundred million dollars ($900,000,000) from July 1, 2000 through June 30, 2001; and
(4) one billion one hundred twenty-four million dollars ($1,124,000,000) after June 30, 2001.
E. The proceeds from the sale of the bonds authorized in Subsection C of this section shall be used to pay the cost of planning, engineering, right-of-way acquisition and construction of the designated projects, but no part of the proceeds shall be used to purchase a warranty covering the total scope of the work required to complete a project for more than one year after its completion and acceptance. The foregoing warranty purchase exclusion does not include individual project components, including equipment, supplies, materials and structural components that traditionally require warranty coverage for more than one year.
[E.] F. The state highway commission may issue
bonds to refund other bonds issued pursuant to this section
by exchange or current or advance refunding.
[F.] G. Each series of bonds shall have a
maturity of no more than twenty-five years from the date of
issuance. The state highway commission shall determine all
other terms, covenants and conditions of the bonds; provided
that the bonds shall not be issued pursuant to this section
unless the state board of finance approves the issuance of
the bonds and the principal amount of and interest rate or
maximum net effective interest rate on the bonds.
[G.] H. The bonds shall be executed with the
manual or facsimile signature of the chairman of the state
highway commission, countersigned by the state treasurer and
attested to by the secretary of the state highway
commission, with the seal of the state highway commission
imprinted or otherwise affixed to the bonds.
[H.] I. Proceeds of the bonds may be used to pay
expenses incurred in the preparation, issuance and sale of
the bonds and, together with the earnings on the proceeds of
the bonds, may be used to pay rebate, penalty, interest and
other obligations relating to the bonds and the proceeds of
the bonds under the Internal Revenue Code of 1986, as
amended.
[I.] J. The bonds may be sold at a public or
negotiated sale at, above or below par or through the New
Mexico finance authority. Any negotiated sale shall be made
with one or more investment [banker] bankers whose services
are obtained through a competitive proposal process. For
any sale, the state highway commission or the New Mexico
finance authority shall also procure the services of any
financial advisor or bond counsel through a competitive
proposal process. If sold at public sale, a notice of the
time and place of sale shall be published in a newspaper of
general circulation in the state, and in any other newspaper
determined in the resolution authorizing the issuance of the
bonds, once each week for two consecutive weeks prior to the
date of sale. The bonds may be purchased by the state
treasurer or state investment officer.
[J.] K. This section is full authority for the
issuance and sale of the bonds, and the bonds shall not be
invalid for any irregularity or defect in the proceedings
for their issuance and sale and shall be incontestable in
the hands of bona fide purchasers or holders of the bond for
value.
[K.] L. The bonds shall be legal investments for
any person or board charged with the investment of public
funds and may be accepted as security for any deposit of
public money and, with the interest thereon, are exempt from
taxation by the state and any political subdivision or
agency of the state.
[L.] M. Any law authorizing the imposition or
distribution of taxes or fees paid into the state road fund
or the highway infrastructure fund or that affects those
taxes and fees shall not be amended or repealed or otherwise
directly or indirectly modified so as to impair any
outstanding bonds secured by a pledge of revenues from those
taxes and fees paid into the state road fund or the highway
infrastructure fund, unless the bonds have been discharged
in full or provisions have been made for a full discharge.
In addition, while any bonds issued by the state highway
commission pursuant to the provisions of this section remain
outstanding, the powers or duties of the commission shall
not be diminished or impaired in any manner that will affect
adversely the interests and rights of the holder of such
bonds.
[M.] N. In contracting for state highway projects
to be paid in whole or in part with proceeds of bonds
authorized by this section, the department shall require
that any sand, gravel, caliche or similar material needed
for the project shall, if practicable, be mined from state
lands. Each contract shall provide that the contractor
notify the commissioner of public lands of the need for the
material and that, through lease or purchase, the material
shall be mined from state lands if:
(1) the material needed is available from state lands in the vicinity of the project;
(2) the commissioner determines that the lease or purchase is in the best interest of the state land trust beneficiaries; and
(3) the cost to the contractor for the material, including the costs of transportation, is competitive with other available material from non-state lands.
[N.] O. Bonds issued pursuant to this section
shall be paid solely from federal funds not otherwise
obligated and taxes and fees deposited into the state road
fund and, as applicable, the highway infrastructure fund,
and shall not constitute a general obligation of the
state."".
Respectfully submitted,
Jerry W. Sandel, Chairman
Adopted Not Adopted
(Chief Clerk) (Chief Clerk)
The roll call vote was 7 For 6 Against
Yes: 7
No: Crook, Gubbels, Hawkins, Russell, Stell, Tripp
Excused: Burpo, Lujan
Absent: None
.132551.1
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