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AN ACT

RELATING TO FINANCE; AMENDING THE NEW MEXICO FINANCE

AUTHORITY ACT TO ADD A REQUIREMENT FOR LEGISLATIVE APPROVAL

OF LOCAL TRANSPORTATION INFRASTRUCTURE FUND PROJECTS.

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

Section 1. Section 6-21-6.8 NMSA 1978 (being Laws 2005,

Chapter 262, Section 1) is amended to read:

"6-21-6.8. LOCAL TRANSPORTATION INFRASTRUCTURE FUND--

CREATION--PURPOSE--ADMINISTRATION.--

A. The "local transportation infrastructure fund"

is created within the authority. For the purposes of this

section, "fund" means the local transportation infrastructure

fund. The fund shall be administered by the authority as a

separate account, but may consist of subaccounts if the

authority deems them necessary to carry out the purposes of

the fund. The authority shall adopt rules in accordance with

the New Mexico Finance Authority Act necessary to administer

the fund.

B. The following shall be deposited directly into

the fund:

(1) beginning July 1, 2005, one-half of the

annual administrative fee received by the authority for

issuing state transportation bonds pursuant to Sections

67-3-59.3 and 67-3-59.4 NMSA 1978;

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(2) money from the payment of principal and

interest on loans and payments of principal and interest on

securities held by the authority for local transportation

projects;

(3) money appropriated by the legislature to

implement the provisions of this section; and

(4) other public or private money

appropriated, dedicated or allocated to the fund for the

purpose of financing local transportation projects.

C. For the purposes of this section, "local

transportation projects" means local transportation projects

of qualified entities authorized specifically by law as

provided in Subsection F of this section.

D. Money in the fund is appropriated to the

authority to pay the reasonable and necessary costs of

originating and servicing loans, grants or securities funded

by the fund and to make loans or grants and to purchase or

sell securities to assist qualified entities in financing

local transportation projects in accordance with the New

Mexico Finance Authority Act.

E. The authority may make grants from the fund to

qualified entities for local transportation projects when:

(1) a grant is not more than twenty-five

percent of the total project cost; and

(2) a qualified entity demonstrates that it

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has available or a binding commitment from another person to

make available for a project the portion of the total project

cost not provided by the grant. The qualified entity may

enter into a loan agreement or an agreement to sell the

qualified entity's securities with the authority, or the

qualified entity may use another source of money available

for the project, to provide the costs not covered by the

grant.

F. No later than December 15 of each year, the

secretary of transportation, using the department of

transportation's metropolitan planning organization and

regional planning organization planning process, shall submit

a prioritized list of local transportation projects to the

authority that the metropolitan planning organizations and

regional planning organizations have determined are

appropriate for grants or other funding support pursuant to

this section. The list of local transportation projects

shall be submitted to the legislature for specific

authorization by law. The authority shall act on local

transportation projects in the priority approved by the

legislature; provided that the authority, based on the

availability of money in the fund, may determine that a

qualified entity shall receive a grant or other funding

support for a project out of the order of priority it would

otherwise have had or that no grant or other funding support

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be provided for the project. The rules of the authority for

administration of the fund may set a maximum amount of grant

or other funding support for a local transportation project.

G. Money in the local transportation

infrastructure fund not needed for immediate disbursement,

including money held in reserve, may be deposited with the

state treasurer for short-term investment pursuant to Section

6-10-10.1 NMSA 1978 or may be invested in direct and general

obligations of or obligations fully and unconditionally

guaranteed by the United States, obligations issued by

agencies of the United States, obligations of this state or

any political subdivision of the state, interest-bearing time

deposits, commercial paper issued by corporations organized

and operating in the United States and rated "prime" quality

by a national rating service, other investments permitted by

Section 6-10-10 NMSA 1978 or as otherwise provided by the

trust indenture or bond resolution, if money is pledged for

or secures payment of bonds issued by the authority.

H. The authority shall establish fiscal controls

and accounting procedures that are sufficient to assure

proper accounting for local transportation infrastructure

fund payments, disbursements and balances."

Section 2. EFFECTIVE DATE.--The effective date of the

provisions of this act is September 1, 2007.