HOUSE TRANSPORTATION AND PUBLIC

 WORKS COMMITTEE SUBSTITUTE FOR

HOUSE BILL 92

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

AN ACT

RELATING TO CAPITAL EXPENDITURES; AUTHORIZING THE ISSUANCE OF SEVERANCE TAX BONDS FOR TRANSPORTATION PROJECTS; PROVIDING FOR DISTRIBUTION OF FUNDS TO THE DEPARTMENT OF TRANSPORTATION; MAKING AN APPROPRIATION.

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

     SECTION 1. 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 department of transportation for the purposes specified in Section 2 of this act. 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 and acquisitions designated pursuant to Section 2 of this act 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 2. DEPARTMENT OF TRANSPORTATION PROJECTS--SEVERANCE TAX BONDS--PROJECT ACQUISITION.--

          A. Pursuant to the provisions of Section 1 of this act, the proceeds of the sale of the bonds are appropriated to the department of transportation for the following purposes:

                (1) ninety-five percent of the funds shall be used for planning, design and construction of projects identified and certified by the department of transportation as necessary to improve safety and reduce fatalities, maintain or improve the condition of roadways and other transportation infrastructure, promote economic development or mitigate traffic congestion; 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. The department of transportation shall establish procedures for the distribution of these funds.

          B. The department of transportation may use a design-build project delivery system for projects over twenty-five million dollars ($25,000,000) for the planning, environmental clearance, design, acquisition of rights of way, new construction and reconstruction of projects.

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

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