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AN ACT

PROVIDING FUNDING TO THE DEPARTMENT OF TRANSPORTATION FOR

CERTAIN ROAD PROJECTS ENUMERATED IN LAWS 2003 (S.S.), CHAPTER

3, SECTION 27; AUTHORIZING THE ISSUANCE OF SEVERANCE TAX

BONDS; MAKING APPROPRIATIONS; DECLARING AN EMERGENCY.

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

Section 1. SEVERANCE TAX BONDS--AUTHORIZATIONS--

LIMITATIONS--REVERSIONS--APPROPRIATION OF PROCEEDS.--

A. In addition to any authority provided to the

state board of finance to issue and sell severance tax bonds

in fiscal year 2009 provided in Laws 2007 (1st S.S.), Chapter

3, Section 1, the state board of finance may issue and sell

severance tax bonds in fiscal years 2009 through 2011 in

compliance with the Severance Tax Bonding Act in an amount not

to exceed one hundred fifty million dollars ($150,000,000);

provided that no more than seventy-five million dollars

($75,000,000) shall be issued in any single fiscal year

pursuant to this section. The state board of finance shall

schedule the issuance and sale of the bonds in the most

expeditious and economical manner possible upon a finding by

the board that the projects to be included in the sale have

been developed sufficiently to justify the issuance and that

the projects can proceed to contract within a reasonable time.

The state board of finance shall further take the appropriate

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steps necessary to comply with the Internal Revenue Code of

1986, as amended. Proceeds from the sale of the bonds are

appropriated to the department of transportation for projects

authorized in Paragraphs (1) and (3) through (37) of

Subsection A of Section 27 of Chapter 3 of Laws 2003 (S.S.);

provided that the department of transportation shall comply

with the requirements of Subsections C through E of Section

67-3-59.4 NMSA 1978.

B. The department of transportation shall certify

to the state board of finance when the money from the proceeds

of the severance tax bonds authorized in this section is

needed for the purposes specified in Paragraphs (1) and (3)

through (37) of Subsection A of Section 27 of Chapter 3 of

Laws 2003 (S.S.). If the department of transportation has not

certified the need for the issuance of the bonds provided for

in this section by the end of fiscal year 2011, the

authorization for the bonds provided in this section is void.

C. Before the department of transportation may

certify for the issuance of severance tax bonds, the projects

to be included in the sale must be developed sufficiently so

that the department reasonably expects to:

(1) incur within six months after the

applicable bonds have been issued substantial binding

obligations to third parties to expend at least five percent

of the bond proceeds for the projects; and

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(2) spend at least eighty-five percent of

the bond proceeds within three years after the applicable

bonds have been issued.

D. The unexpended balance from the proceeds of

severance tax bonds issued pursuant to this section shall

revert to the severance tax bonding fund no later than six

months after completion of the projects authorized in

Paragraphs (1) and (3) through (37) of Subsection A of Section

27 of Chapter 3 of Laws 2003 (S.S.), but no later than the end

of fiscal year 2013.

E. All remaining balances from the proceeds of

severance tax bonds issued pursuant to this section shall

revert to the severance tax bonding fund three months after

the reversion date established in Subsection D of this

section, whether or not any of the remaining balances are

subject to contractual obligations to third parties.

F. Money from severance tax bond proceeds provided

pursuant to this section shall not be used to pay indirect

project costs.

G. As used in this section, "unexpended balance"

means the remainder of an appropriation after reserving for

unpaid costs and expenses covered by binding written

obligations to third parties.

Section 2. GENERAL FUND APPROPRIATIONS--LIMITATIONS--

REVERSIONS.--

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A. As used in this section:

(1) "general fund consensus revenue

forecast" means the revenue estimates prepared by the career

economists of the department of finance and administration,

taxation and revenue department, department of transportation

and legislative finance committee;

(2) "reserves" means "reserves as a

percentage of current-year recurring appropriations"

established in the general fund financial summary released by

the department of finance and administration in conjunction

with the general fund consensus revenue forecast; and

(3) "unexpended balance" means the remainder

of an appropriation after reserving for unpaid costs and

expenses covered by binding written obligations to third

parties.

B. The following amounts are appropriated from the

general fund to the department of transportation for the

following purposes subject to the identified conditions

precedent:

(1) twenty-five million dollars

($25,000,000) for expenditure in fiscal years 2009 through

2013 for projects authorized in Paragraphs (1) and (3) through

(37) of Subsection A of Section 27 of Chapter 3 of Laws 2003

(S.S.); provided that the department of transportation shall

comply with the requirements of Subsections C through E of

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Section 67-3-59.4 NMSA 1978; and provided further that this

appropriation is contingent on either:

(a) the general fund consensus revenue

forecast released in December 2008 projecting sufficient

fiscal year 2009 revenue to create reserves at the end of

fiscal year 2009 of at least ten percent plus eighty-six

million five hundred thousand dollars ($86,500,000); or

(b) the general fund consensus revenue

forecast released in July 2009 projecting sufficient fiscal

year 2010 revenue to create reserves at the end of fiscal year

2010 of at least ten percent plus twenty-five million dollars

($25,000,000); and

(2) twenty-five million dollars

($25,000,000) for expenditure in fiscal years 2010 through

2013 for projects authorized in Paragraphs (1) and (3) through

(37) of Subsection A of Section 27 of Chapter 3 of Laws 2003

(S.S.); provided that the department of transportation shall

comply with the requirements of Subsections C through E of

Section 67-3-59.4 NMSA 1978; and provided further that this

appropriation is contingent on the general fund consensus

revenue forecast released in July 2009 projecting sufficient

fiscal year 2010 revenue to create reserves at the end of

fiscal year 2010 of at least ten percent plus:

(a) twenty-five million dollars

($25,000,000) if the contingency in the appropriation in

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Paragraph (1) of this subsection was met based on the December

2008 general fund consensus revenue forecast; or

(b) fifty million dollars ($50,000,000)

if the contingency in the appropriation in Paragraph (1) of

this subsection was not met based on the December 2008 general

fund consensus revenue forecast.

C. The unexpended balance of an appropriation made

in this section from the general fund shall revert within six

months of completion of the projects authorized in Paragraphs

(1) and (3) through (37) of Subsection A of Section 27 of

Chapter 3 of Laws 2003 (S.S.), but no later than the end of

fiscal year 2013.

D. All remaining balances from a general fund

appropriation made in this section shall revert three months

after the reversion date established in Subsection C of this

section, whether or not any of the remaining balances are

subject to contractual obligations to third parties.

E. Upon satisfaction of any conditions and

certification by the department of transportation that money

from a general fund appropriation made in this section is

needed for a purpose specified in the appropriation, the

secretary of finance and administration shall disburse that

amount of the appropriation for that purpose as necessary to

meet that need.

F. Money from appropriations made in this section

shall not be used to pay indirect project costs.

Section 3. EMERGENCY.--It is necessary for the public

peace, health and safety that this act take effect

immediately. HB 10

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