HOUSE BILL 92

52nd legislature - STATE OF NEW MEXICO - first session, 2015

INTRODUCED BY

Larry A. Larrañaga

AN ACT

RELATING TO CAPITAL EXPENDITURES; CREATING A FUND; AUTHORIZING THE ISSUANCE OF SEVERANCE TAX BONDS FOR TRANSPORTATION PROJECTS; MAKING AN APPROPRIATION.

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

     SECTION 1. A new section of Chapter 67, Article 3 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] TRANSPORTATION PROJECTS IDENTIFIED-- ECONOMIC GROWTH AND ENERGY DEVELOPMENT TRANSPORTATION FUND--CREATED.--

          A. By August 1 of each year, the economic development department shall identify and create a list of projects within the statewide transportation improvement plan that are critical to local economic development or the development of energy mineral resources.

          B. The "economic growth and energy development transportation fund" is created in the state treasury. The fund shall be administered by the department of transportation and is appropriated for the purposes set out in this section. The department of transportation may establish procedures and adopt rules as required to administer the fund. The fund shall consist of money from the proceeds of the sale of severance tax bonds issued pursuant to Section 2 of this 2015 act and any other money appropriated, donated or otherwise accrued to 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 2024.

          C. The money in the economic growth and energy development transportation fund shall be used for the following purposes:

                (1) ninety-five percent of the funds shall be used for planning, design and construction of projects within the statewide transportation improvement plan identified by the economic development department pursuant to the provisions of Subsection A of this section; and

                (2) five percent of the funds shall be dedicated to support the acquisition of facilities and vehicles by county and municipal governments for public transportation programs."

     SECTION 2. [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 2020 in compliance with the Severance Tax Bonding Act in an amount not exceeding three hundred million dollars ($300,000,000) when the department of transportation certifies the need for the issuance of the bonds; provided that no more than sixty million dollars ($60,000,000) may be issued in any one fiscal year. The proceeds from the sale of the bonds are appropriated to the economic growth and energy development transportation fund pursuant to Section 1 of this 2015 act for the purposes of the fund. The state board of finance shall schedule the issuance and sale of bonds in the most expeditious and economical manner possible upon a finding by the board, based upon the certification from the department of transportation, that the proceeds of the bonds are needed and that construction on the projects will begin within a reasonable time after the bonds are sold. The state board of finance shall further take the appropriate steps necessary to comply with the federal Internal Revenue Code of 1986, as amended. Any unexpended or unencumbered balance remaining at the end of fiscal year 2024 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 2020, the authorization provided in this section shall expire.

     SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2015.

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