46th legislature - STATE OF NEW MEXICO - first session, 2003

RELATING TO FINANCING OF HIGHWAY PROJECTS; INCREASING CERTAIN FUEL TAXES; ADJUSTING DISTRIBUTIONS OF TAX PROCEEDS; AUTHORIZING THE ISSUANCE OF STATE HIGHWAY BONDS FOR VARIOUS HIGHWAY PROJECTS THROUGHOUT THE STATE; AMENDING SECTIONS OF THE NMSA 1978 AND REPEALING A SECTION OF LAWS 1995; MAKING APPROPRIATIONS.

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

Section 1. Section 7-1-6.7 NMSA 1978 (being Laws 1994, Chapter 5, Section 2, as amended) is amended to read:

"7-1-6.7. DISTRIBUTIONS--STATE AVIATION FUND.--

A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state aviation fund in an amount equal to three and fifty-nine hundredths percent of the gross receipts attributable to the sale of fuel specially prepared and sold for use in turboprop or jet-type engines as determined by the department.

B. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state aviation fund in an amount equal to [twenty-six hundredths of one percent] the following percentage of gasoline taxes, exclusive of penalties and interest, collected pursuant to the Gasoline Tax Act:

(1) prior to August 1, 2003, twenty-six hundredths of one percent;

(2) from August 1, 2003 through July 31, 2004, twenty-three hundredths of one percent;

(3) from August 1, 2004 through July 31, 2005, twenty-two hundredths of one percent;

(4) from August 1, 2005 through July 31, 2006, twenty-one hundredths of one percent; and

(5) after July 31, 2006, two-tenths of one percent.

C. From July 1, 2002 through June 30, 2007, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state aviation fund in an amount equal to forty-six thousandths of one percent of the net receipts attributable to the gross receipts tax distributable to the general fund."

Section 2. Section 7-1-6.8 NMSA 1978 (being Laws 1983, Chapter 211, Section 13, as amended) is amended to read:

"7-1-6.8. DISTRIBUTION--MOTORBOAT FUEL TAX FUND.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the motorboat fuel tax fund in an amount equal to [thirteen hundredths of one percent] the following percentage of the net receipts attributable to the gasoline tax:

A. prior to August 1, 2003, thirteen-hundredths of one percent;

B. from August 1, 2003 through July 31, 2004, twelve-hundredths of one percent;

C. from August 1, 2004 through July 31, 2005, eleven-hundredths of one percent;

D. from August 1, 2005 through July 31, 2006, eleven-hundredths of one percent; and

E. after July 31, 2006, one-tenth of one percent."

Section 3. Section 7-1-6.9 NMSA 1978 (being Laws 1991, Chapter 9, Section 11, as amended) is amended to read:

"7-1-6.9. DISTRIBUTION OF GASOLINE TAXES TO MUNICIPALITIES AND COUNTIES.--

A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made in an amount equal to [ten and thirty-eight hundredths percent] the following percentage of the net receipts attributable to the taxes, exclusive of penalties and interest, imposed by the Gasoline Tax Act:

(1) prior to August 1, 2003, ten and thirty-eight hundredths percent;

(2) from August 1, 2003 through July 31, 2004, nine and twenty-nine hundredths percent;

(3) from August 1, 2004 through July 31, 2005, eight and eighty-two hundredths percent;

(4) from August 1, 2005 through July 31, 2006, eight and four-tenths percent; and

(5) after July 31, 2006, eight and two-hundredths percent.

B. [Except as provided in Subsection D of this section] The amount determined in Subsection A of this section shall be distributed as follows:

(1) ninety percent of the amount shall be paid to the treasurers of municipalities and H class counties in the proportion that the taxable motor fuel sales in each of the municipalities and H class counties bears to the aggregate taxable motor fuel sales in all of these municipalities and H class counties; and

(2) ten percent of the amount shall be paid to the treasurers of the counties, including H class counties, in the proportion that the taxable motor fuel sales outside of incorporated municipalities in each of the counties bears to the aggregate taxable motor fuel sales outside of incorporated municipalities in all of the counties.

C. Except as provided in Subsection D of this section, this distribution shall be paid into a separate road fund in the municipal treasury or county road fund for expenditure only for construction, reconstruction, resurfacing or other improvement or maintenance of public roads, streets, alleys or bridges, including right-of-way and materials acquisition. Money distributed pursuant to this section may be used by a municipality or county to provide matching funds for projects subject to cooperative agreements entered into with the state highway and transportation department pursuant to Section 67-3-28 NMSA 1978. Any municipality or H class county that has created or that creates a "street improvement fund" to which gasoline tax revenues or distributions are irrevocably pledged under Sections 3-34-1 through 3-34-4 NMSA 1978 or that has pledged all or a portion of gasoline tax revenues or distributions to the payment of bonds shall receive its proportion of the distribution of revenues under this section impressed with and subject to these pledges.

D. This distribution may be paid into a separate road fund or the general fund of the municipality or county if the municipality has a population less than three thousand or the county has a population less than four thousand."

Section 4. Section 7-1-6.19 NMSA 1978 (being Laws 1991, Chapter 9, Section 15, as amended) is amended to read:

"7-1-6.19. DISTRIBUTION--COUNTY GOVERNMENT ROAD FUND CREATED.--

A. There is created in the state treasury the "county government road fund".

B. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the county government road fund in an amount equal to [five and seventy-six hundredths percent] the following percentage of the net receipts attributable to the gasoline tax:

(1) prior to August 1, 2003, five and seventy-six hundredths percent;

(2) from August 1, 2003 through July 31, 2004, five and fifteen-hundredths percent;

(3) from August 1, 2004 through July 31, 2005, four and nine-tenths percent;

(4) from August 1, 2005 through July 31, 2006, four and sixty-six hundredths percent; and

(5) after July 31, 2006, four and forty-five hundredths percent."

Section 5. Section 7-1-6.27 NMSA 1978 (being Laws 1991, Chapter 9, Section 20, as amended) is amended to read:

"7-1-6.27. DISTRIBUTION--MUNICIPAL ROADS.--

A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to municipalities for the purposes and amounts specified in this section in an aggregate amount equal to [five and seventy-six hundredths percent] the following percentage of the net receipts attributable to the gasoline tax:

(1) prior to August 1, 2003, five and seventy-six hundredths percent;

(2) from August 1, 2003 through July 31, 2004, five and fifteen-hundredths percent;

(3) from August 1, 2004 through July 31, 2005, four and nine-tenths percent;

(4) from August 1, 2005 through July 31, 2006, four and sixty-six hundredths percent; and

(5) after July 31, 2006, four and forty-five hundredths percent.

B. The distribution authorized in this section shall be used for the following purposes:

(1) reconstructing, resurfacing, maintaining, repairing or otherwise improving existing alleys, streets, roads or bridges, or any combination of the foregoing; or laying off, opening, constructing or otherwise acquiring new alleys, streets, roads or bridges, or any combination of the foregoing; provided that any of the foregoing improvements may include, but are not limited to, the acquisition of rights of way;

(2) to provide matching funds for projects subject to cooperative agreements with the state highway and transportation department pursuant to Section 67-3-28 NMSA 1978; and

(3) for expenses of purchasing, maintaining and operating transit operations and facilities, for the operation of a transit authority established by the Municipal Transit Law and for the operation of a vehicle emission inspection program. A municipality may engage in the business of the transportation of passengers and property within the political subdivision by whatever means the municipality may decide and may acquire cars, trucks, motor buses and other equipment necessary for operating the business. A municipality may acquire land, erect buildings and equip the buildings with all the necessary machinery and facilities for the operation, maintenance, modification, repair and storage of the cars, trucks, motor buses and other equipment needed. A municipality may do all things necessary for the acquisition and the conduct of the business of public transportation.

C. For the purposes of this section:

(1) "computed distribution amount" means the distribution amount calculated for a municipality for a month pursuant to Paragraph (2) of Subsection D of this section prior to any adjustments to the amount due to the provisions of Subsections E and F of this section;

(2) "floor amount" means four hundred seventeen dollars ($417);

(3) "floor municipality" means a municipality whose computed distribution amount is less than the floor amount; and

(4) "full distribution municipality" means a municipality whose population at the last federal decennial census was at least two hundred thousand.

D. Subject to the provisions of Subsections E and F of this section, each municipality shall be distributed a portion of the aggregate amount distributable under this section in an amount equal to the greater of:

(1) the floor amount; or

(2) eighty-five percent of the aggregate amount distributable under this section [times] multiplied by a fraction, the numerator of which is the municipality's reported taxable gallons of gasoline for the immediately preceding state fiscal year and the denominator of which is the reported total taxable gallons for all municipalities for the same period.

E. Fifteen percent of the aggregate amount distributable under this section shall be referred to as the "redistribution amount". Beginning in August 1990, and each month thereafter, from the redistribution amount there shall be taken an amount sufficient to increase the computed distribution amount of every floor municipality to the floor amount. In the event that the redistribution amount is insufficient for this purpose, the computed distribution amount for each floor municipality shall be increased by an amount equal to the redistribution amount [times] multiplied by a fraction, the numerator of which is the difference between the floor amount and the municipality's computed distribution amount and the denominator of which is the difference between the product of the floor amount multiplied by the number of floor municipalities and the total of the computed distribution amounts for all floor municipalities.

F. If a balance remains after the redistribution amount has been reduced pursuant to Subsection E of this section, there shall be added to the computed distribution amount of each municipality that is neither a full distribution municipality nor a floor municipality an amount that equals the balance of the redistribution amount [times] multiplied by a fraction, the numerator of which is the computed distribution amount of the municipality and the denominator of which is the sum of the computed distribution amounts of all municipalities that are neither full distribution municipalities nor floor municipalities."

Section 6. Section 7-1-6.28 NMSA 1978 (being Laws 1991, Chapter 9, Section 22, as amended) is amended to read:

"7-1-6.28. DISTRIBUTION--MUNICIPAL ARTERIAL PROGRAM OF LOCAL GOVERNMENTS ROAD FUND.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the municipal arterial program of the local governments road fund created in Section 67-3-28.2 NMSA 1978 in an amount equal to [one and forty-four hundredths percent] the following percentage of the net receipts attributable to the gasoline tax:

A. prior to August 1, 2003, one and forty-four hundredths percent;

B. from August 1, 2003 through July 31, 2004, one and twenty-nine hundredths percent;

C. from August 1, 2004 through July 31, 2005, one and twenty-two hundredths percent;

D. from August 1, 2005 through July 31, 2006, one and seventeen-hundredths percent; and

E. after July 31, 2006, one and eleven-hundredths percent."

Section 7. Section 7-1-6.39 NMSA 1978 (being Laws 1995, Chapter 6, Section 9) is amended to read:

"7-1-6.39. DISTRIBUTION OF SPECIAL FUEL EXCISE TAX TO LOCAL GOVERNMENTS ROAD FUND.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the local governments road fund in an amount equal to [eleven and eleven hundredths percent] the following percentage of the net receipts attributable to the taxes, exclusive of penalties and interest, from the special fuel excise tax imposed by the Special Fuels Supplier Tax Act:

A. prior to August 1, 2003, eleven and eleven-hundredths percent;

B. from August 1, 2003, through July 31, 2004, ten and fifty-three hundredths percent;

C. from August 1, 2004 through July 31, 2005, ten percent;

D. from August 1, 2005 through July 31, 2006, nine and fifty-two hundredths percent; and

E. after July 31, 2006, nine and nine-hundredths percent."

Section 8. Section 7-13-3 NMSA 1978 (being Laws 1971, Chapter 207, Section 3, as amended) is amended to read:

"7-13-3. IMPOSITION AND RATE OF TAX--DENOMINATION AS "GASOLINE TAX".--

A. For the privilege of receiving gasoline in this state, there is imposed an excise tax at a rate provided in Subsection B of this section on each gallon of gasoline

received in New Mexico.

B. The tax imposed by Subsection A of this section shall be [seventeen cents ($.17)] at the following rate per gallon received in New Mexico:

(1) prior to July 1, 2003, seventeen cents ($.17);

(2) from July 1, 2003 through June 30, 2004, nineteen cents ($.19);

(3) from July 1, 2004 through June 30, 2005, twenty cents ($.20);

(4) from July 1, 2005 through June 30, 2006, twenty-one cents ($.21); and

(5) after June 30, 2006, twenty-two cents ($.22).

C. The tax imposed by this section may be called the "gasoline tax"."

Section 9. Section 7-16A-3 NMSA 1978 (being Laws 1992, Chapter 51, Section 3, as amended) is amended to read:

"7-16A-3. IMPOSITION AND RATE OF TAX--DENOMINATION AS SPECIAL FUEL EXCISE TAX.--

A. For the privilege of receiving or using special fuel in this state, there is imposed an excise tax at a rate provided in Subsection B of this section on each gallon of special fuel received in New Mexico.

B. The tax imposed by Subsection A of this section shall be [eighteen cents ($.18)] at the following rate per gallon of special fuel received or used in New Mexico:

(1) prior to July 1, 2003, eighteen cents ($.18);

(2) from July 1, 2003 through June 30, 2004, nineteen cents ($.19);

(3) from July 1, 2004 through June 30, 2005, twenty cents ($.20);

(4) from July 1, 2005 through June 30, 2006, twenty-one cents ($.21); and

(5) after June 30, 2006, twenty-two cents ($.22).

C. The tax imposed by this section may be called the "special fuel excise tax"."

Section 10. 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] Subsection C 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)] nine hundred fifteen million six hundred sixty thousand dollars ($915,660,000), 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.] D. 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.] E. 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.] F. 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.] G. 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.] H. 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.] I. 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.] J. 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.] K. 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.] L. 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.] M. 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."

Section 11. STATE HIGHWAY BONDS--PURPOSES FOR WHICH ISSUED--APPROPRIATION OF PROCEEDS.--

A. The state transportation commission may issue and sell state highway bonds in compliance with the provisions of Section 67-3-59.1 NMSA 1978 in an amount not to exceed the total of the amounts authorized for purposes specified in this section when the commission determines the need for the issuance of the bonds. The state transportation commission shall schedule the issuance and sale of the bonds in the most expeditious and economic manner possible upon a finding by the commission that the project has been developed sufficiently to justify the issuance and that the project can proceed to contract within a reasonable time. The proceeds from the sale of the bonds are appropriated to the state highway and transportation department in the following amounts for the following purposes:

(1) one hundred twenty-nine million three hundred thousand dollars ($129,300,000) for improvement and widening of United States highway 666 to a four-lane highway from Tohatchi to Shiprock;

(2) one hundred eighty million dollars ($180,000,000) for improvement of United States highway 54 from Tularosa to Santa Rosa;

(3) fifty million dollars ($50,000,000) for reconstruction of the interstate 40 and Coors boulevard interchange in Albuquerque;

(4) seventy-six million three hundred sixty thousand dollars ($76,360,000) for improvement and widening of United States highway 62 and 180 to a four-lane highway from Carlsbad to the Texas state line; and

(5) one hundred twenty-five million dollars ($125,000,000) for improvement and widening United States highway 64 and 87 from two to four lanes between Raton and Clayton.

B. The appropriations of state highway bond proceeds in Subsection A of this section are in addition to the amounts of bonds authorized in Laws 1998, Chapter 84, Section 1 and Laws 1998, Chapter 85, Section 1, except that the amount authorized in Paragraph (1) of Subsection A of this section is the total amount authorized for the project that was originally authorized in Subsection G of Section 1 of Chapter 85 of Laws 1998.

C. For the purposes of this section, "improvement" or "reconstruction" includes planning, designing, engineering, construction and acquisition of rights of way.

Section 12. REPEAL.--Laws 1995, Chapter 6, Section 11 is repealed.

Section 13. APPLICABILITY.--The provisions of Sections 1 through 7 of this act apply to revenue received by the taxation and revenue department on or after August 1 of the applicable year.