HOUSE TAXATION AND REVENUE COMMITTEE SUBSTITUTE FOR

HOUSE BILL 241

51st legislature - STATE OF NEW MEXICO - second session, 2014

AN ACT

RELATING TO RAILROAD SERVICE; CREATING THE SOUTHWEST CHIEF RAIL SERVICE FUND; AUTHORIZING THE ISSUANCE OF SEVERANCE TAX BONDS FOR THE PURPOSES OF THE FUND; 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 is enacted to read:

     "[NEW MATERIAL] SEVERANCE TAX BONDS--PURPOSE FOR WHICH

ISSUED--APPROPRIATION OF PROCEEDS.--The state board of finance may issue and sell severance tax bonds in fiscal years 2016 through 2025 in compliance with the Severance Tax Bonding Act in an amount not exceeding a total of forty million dollars ($40,000,000) when the department of transportation certifies the need for the issuance of the bonds; provided that no more than four million dollars ($4,000,000) may be issued in any one fiscal year. The proceeds from the sale of the bonds are appropriated to the southwest chief rail service fund pursuant to Section 2 of this 2014 act for the purposes of the fund. 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 project has been developed sufficiently to justify the issuance and that the project can proceed to contract within a reasonable time. Certification for bonds to be issued under this section is contingent upon the secretary of transportation certifying that the interstate compact or agreement and the service agreement required pursuant to Section 2 of this 2014 act are in effect and that the other parties to those agreements are meeting their obligations. The state board of finance shall further take the appropriate steps necessary to comply with the Internal Revenue Code of 1986, as amended. Any unexpended or unencumbered balance remaining in the severance tax bond subaccount created pursuant to Subsection A of Section 2 of this 2014 act at the end of fiscal year 2029 shall revert to the severance tax bonding fund. If the department of transportation has not certified the need for the issuance of the bonds by the end of fiscal year 2025, the authorization provided in this section shall expire."

     SECTION 2. A new section of Chapter 67, Article 3 NMSA 1978 is enacted to read:  

     "[NEW MATERIAL] SOUTHWEST CHIEF RAIL SERVICE FUND--CREATED.--

          A. The "southwest chief rail service fund" is created in the state treasury. The fund shall be administered by the department and is appropriated to the department for the purposes set out in this section. The fund shall consist of funds from the proceeds of the sale of severance tax bonds issued pursuant to Section 1 of this 2014 act and other funds appropriated, donated or otherwise accruing to the fund, including income from investment of the fund. The state treasurer shall create a subaccount in the fund for proceeds from the sale of severance tax bonds. Balances in the fund from sources other than the proceeds from the sale of severance tax bonds shall not revert to any other fund at the end of a fiscal year. Balances in the severance tax bond subaccount shall revert to the severance tax bonding fund at the end of fiscal year 2029.

          B. Money in the fund shall be used solely for acquisition of rights of way or planning, design, engineering, construction or improvement of the railroad track and infrastructure within New Mexico used by the Amtrak southwest chief train from the state line to Albuquerque as identified in the southwest chief routing publication for route miles under review; provided that no funds shall be expended from the fund until the states of Colorado and Kansas establish similar funds for the corresponding southwest chief railroad track within their borders and the state has entered into a binding agreement with Amtrak and the states of Colorado and Kansas to maintain the southwest chief train service through fiscal year 2035. The department may begin negotiations for an interstate compact or other agreement between New Mexico, Colorado and Kansas pertaining to rail improvements from Albuquerque to Hutchison, Kansas, as identified in the southwest chief routing publication for route miles under review, the funding of those improvements and a service agreement with Amtrak and the Burlington northern Santa Fe railway. Any agreement is subject to legislative approval."

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