HOUSE BILL 842
46th legislature - STATE OF NEW MEXICO - first session, 2003
INTRODUCED BY
Mary Helen Garcia
AN ACT
RELATING TO THE FINANCING OF A HIGHWAY PROJECT; AUTHORIZING THE ISSUANCE OF STATE HIGHWAY BONDS FOR IMPROVEMENTS TO SUNLAND PARK DRIVE IN DONA ANA COUNTY; PROVIDING FOR A DISTRIBUTION FROM THE GAMING TAX TO PAY FOR THE BONDS; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 60-2E-47 NMSA 1978 (being Laws 1997, Chapter 190, Section 49, as amended) is amended to read:
"60-2E-47. GAMING TAX--IMPOSITION--ADMINISTRATION.--
A. An excise tax is imposed on the privilege of engaging in gaming activities in the state. This tax shall be known as the "gaming tax".
B. The gaming tax is an amount equal to ten percent of the gross receipts of manufacturer licensees from the sale, lease or other transfer of gaming devices in or into the state, except receipts of a manufacturer from the sale, lease or other transfer to a licensed distributor for subsequent sale or lease may be excluded from gross receipts; ten percent of the gross receipts of distributor licensees from the sale, lease or other transfer of gaming devices in or into the state; ten percent of the net take of a gaming operator licensee that is a nonprofit organization; and twenty-five percent of the net take of every other gaming operator licensee. For the purposes of this section, "gross receipts" means the total amount of money or the value of other consideration received from selling, leasing or otherwise transferring gaming devices.
C. The gaming tax imposed on a licensee is in lieu of all state and local gross receipts taxes on that portion of the licensee's gross receipts attributable to gaming activities.
D. The gaming tax is to be paid on or before the fifteenth day of the month following the month in which the taxable event occurs. The gaming tax shall be administered and collected by the taxation and revenue department in cooperation with the board. The provisions of the Tax Administration Act apply to the collection and administration of the tax. For fiscal years 2005 through 2017, the secretary of highway and transportation shall certify each year to the taxation and revenue department the need for an amount not to exceed one million five hundred thousand dollars ($1,500,000) a year to be distributed to the state road fund to pay debt service on the Sunland Park drive project bonds authorized by Section 67-3-59.1 NMSA 1978; provided that any federal, local or private funds available for the project shall be used to supplant gaming tax distributions and the gaming tax distribution shall be reduced by the amount available from other sources. Any distribution to the state road fund for the Sunland Park drive project that is in excess of the amount needed for that project shall revert to the general fund.
E. In addition to the gaming tax, a gaming operator licensee that is a racetrack shall pay twenty percent of its net take to purses to be distributed in accordance with rules adopted by the state racing commission. An amount not to exceed twenty percent of the interest earned on the balance of any fund consisting of money for purses distributed by racetrack gaming operator licensees pursuant to this subsection may be expended for the costs of administering the distributions. A racetrack gaming operator licensee shall spend no less than one-fourth of one percent of the net take of its gaming machines to fund or support programs for the treatment and assistance of compulsive gamblers.
F. A nonprofit gaming operator licensee shall distribute at least sixty percent of the balance of its net take, after payment of the gaming tax and any income taxes,
for charitable or educational purposes."
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] transportation 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 and
E 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] transportation 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 state transportation commission may issue bonds in 2005 with a maturity of no more than twelve years from the date of issuance, in an amount not to exceed twelve million dollars ($12,000,000) to improve Sunland Park drive in Dona Ana county, and the bonds shall be payable from a distribution of the gaming tax paid into the state road fund as provided in Section 60-2E-47 NMSA 1978 or from such other funds that are deposited in the state road fund for that purpose as provided in that section.
[E.] F. The state [highway] transportation
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] transportation 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]
transportation commission, countersigned by the state treasurer
and attested to by the secretary of the state [highway]
transportation commission, with the seal of the state [highway]
transportation 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] transportation 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] transportation 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 of public lands 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."