HOUSE BILL 795

49th legislature - STATE OF NEW MEXICO - first session, 2009

INTRODUCED BY

Roberto "Bobby" J. Gonzales

AN ACT

RELATING TO TRANSPORTATION FUNDING; REQUIRING A PERCENTAGE OF ANNUAL SEVERANCE TAX BONDING CAPACITY TO BE USED TO FUND TRANSPORTATION PROJECTS STATEWIDE BEGINNING IN 2010; MAKING AN APPROPRIATION.

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

     Section 1. A new section of the Severance Tax Bonding Act, Section 7-27-10.2 NMSA 1978, is enacted to read:

     "7-27-10.2. [NEW MATERIAL] AUTHORIZATION FOR SEVERANCE TAX BONDS--STATE ROAD FUND.--

          A. By January 15 of each year, the board of finance division of the department of finance and administration shall estimate the amount of bonding capacity available for severance tax bonds to be authorized by the legislature. The division shall authorize five percent of the estimated bonding capacity each year, and the legislature authorizes the state board of finance to issue severance tax bonds in the annually deducted amount for use by the department of transportation to fund road projects statewide.

          B. The department of transportation shall certify to the state board of finance the need for issuance of bonds for road projects. The state board of finance may issue and sell the bonds in the same manner as other severance tax bonds in an amount not to exceed the authorized amount provided for in Subsection A of this section. If necessary, the state board of finance shall take the appropriate steps to comply with the federal Internal Revenue Code of 1986, as amended. Proceeds from the sale of the bonds are appropriated to the state road fund in the state treasury.

          C. Money from the severance tax bonds provided for in this section shall not be used to pay indirect project costs. Any unexpended balance from proceeds of severance tax bonds issued for a project shall revert to the severance tax bonding fund within six months of completion of the project."

     Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is January 1, 2010.

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