HB0262

HOUSE BILL 262

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

INTRODUCED BY

Patricia A. Lundstrom and Carlos R. Cisneros

FOR THE LEGISLATIVE FINANCE COMMITTEE

AN ACT

RELATING TO CAPITAL EXPENDITURES; PROVIDING ADDITIONAL REVENUE FOR THE STATE ROAD FUND AND THE LOCAL GOVERNMENTS ROAD FUND BY INCREASING THE GASOLINE TAX AND THE SPECIAL FUEL EXCISE TAX BEGINNING IN FISCAL YEAR 2016 AND THE MOTOR VEHICLE EXCISE TAX BEGINNING IN FISCAL YEAR 2019; INDEXING THE GASOLINE TAX AND SPECIAL FUEL EXCISE TAX TO INFLATION BEGINNING IN FISCAL YEAR 2017; AUTHORIZING THE ISSUANCE OF SEVERANCE TAX AND SUPPLEMENTAL SEVERANCE TAX BONDS IN CERTAIN FISCAL YEARS FOR TRANSPORTATION PROJECTS; REDUCING SUPPLEMENTAL SEVERANCE TAX BONDING CAPACITY FOR FISCAL YEAR 2021 AND SUBSEQUENT FISCAL YEARS; ADJUSTING THE MANNER IN WHICH THE CAPACITY FOR ISSUANCE OF SEVERANCE TAX AND SUPPLEMENTAL SEVERANCE TAX BONDS IS CALCULATED; REPEALING LAWS 2001, CHAPTER 37, SECTION 1; MAKING APPROPRIATIONS.

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

SECTION 1. Section 7-1-6.7 NMSA 1978 (being Laws 1994, Chapter 5, Section 2, as amended) is amended to read:

"7-1-6.7. DISTRIBUTIONS--STATE AVIATION FUND.--

A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state aviation fund in an amount equal to four and seventy-nine hundredths percent of the taxable gross receipts attributable to the sale of fuel specially prepared and sold for use in turboprop or jet-type engines as determined by the department.

B. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state aviation fund in an amount equal to [twenty-six hundredths percent of gasoline taxes, exclusive of penalties and interest, collected] the following percentages of the net receipts attributable to the taxes imposed pursuant to the Gasoline Tax Act:

(1) prior to July 1, 2015, twenty-six hundredths percent; and

(2) on and after July 1, 2015, twenty-three hundredths percent.

C. From July 1, 2013 through June 30, 2018, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state aviation fund in an amount equal to

forty-six thousandths percent of the net receipts attributable to the gross receipts tax distributable to the general fund.

D. A distribution pursuant to Section 7-1-6.1 NMSA

1978 shall be made to the state aviation fund from the net

receipts attributable to the gross receipts tax distributable

to the general fund in an amount equal to

[(1) eighty thousand dollars ($80,000) monthly from July 1, 2007 through June 30, 2008;

(2) one hundred sixty-seven thousand dollars

($167,000) monthly from July 1, 2008 through June 30, 2009; and

(3)] two hundred fifty thousand dollars

($250,000) [monthly after July 1, 2009]."

SECTION 2. Section 7-1-6.8 NMSA 1978 (being Laws 1983, Chapter 211, Section 13, as amended) is amended to read:

"7-1-6.8. DISTRIBUTION--MOTORBOAT FUEL TAX FUND.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the motorboat fuel tax fund in [an amount equal to thirteen-hundredths of one percent] the following percentages of the net receipts attributable to the gasoline tax:

A. prior to July 1, 2015, thirteen-hundredths percent; and

B. on and after July 1, 2015, twelve-hundredths percent."

SECTION 3. Section 7-1-6.9 NMSA 1978 (being Laws 1991, Chapter 9, Section 11, as amended) is amended to read:

"7-1-6.9. DISTRIBUTION OF GASOLINE TAXES TO MUNICIPALITIES AND COUNTIES.--

A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made in [an amount equal to ten and thirty-eight hundredths percent] the following percentages of the net receipts attributable to the taxes [exclusive of penalties and interest] imposed by the Gasoline Tax Act:

(1) prior to July 1, 2015, ten and thirty-eight hundredths percent; and

(2) on and after July 1, 2015, nine and twenty-nine hundredths percent.

B. [Except as provided in Subsection D of this section] The amount determined in Subsection A of this section shall be distributed as follows:

(1) ninety percent of the amount shall be paid to the treasurers of municipalities and H class counties in the proportion that the taxable motor fuel sales in each of the municipalities and H class counties bears to the aggregate taxable motor fuel sales in all of these municipalities and H class counties; and

(2) ten percent of the amount shall be paid to the treasurers of the counties, including H class counties, in the proportion that the taxable motor fuel sales outside of incorporated municipalities in each of the counties bears to the aggregate taxable motor fuel sales outside of incorporated municipalities in all of the counties.

C. Except as provided in Subsection D of this section, this distribution shall be paid into a separate road fund in the municipal treasury or county road fund for expenditure only for construction, reconstruction, resurfacing or other improvement or maintenance of public roads, streets, alleys or bridges, including right-of-way and materials acquisition. Money distributed pursuant to this section may be used by a municipality or county to provide matching funds for projects subject to cooperative agreements entered into with the [state highway and] department of transportation [department] pursuant to Section 67-3-28 NMSA 1978. Any municipality or H class county that has created or that creates a "street improvement fund" to which gasoline tax revenues or distributions are irrevocably pledged under Sections 3-34-1 through 3-34-4 NMSA 1978 or that has pledged all or a portion of gasoline tax revenues or distributions to the payment of bonds shall receive its proportion of the distribution of revenues under this section impressed with and subject to these pledges.

D. This distribution may be paid into a separate road fund or the general fund of the municipality or county if the municipality has a population less than three thousand or the county has a population less than four thousand."

SECTION 4. Section 7-1-6.10 NMSA 1978 (being Laws 1983, Chapter 211, Section 15, as amended) is amended to read:

"7-1-6.10. DISTRIBUTIONS--STATE ROAD FUND.--

A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state road fund in an amount equal to the net receipts attributable to the taxes, surcharges, penalties and interest imposed pursuant to the Gasoline Tax Act and to the taxes, surtaxes, fees, penalties and interest imposed pursuant to the Special Fuels Supplier Tax Act and the Alternative Fuel Tax Act less:

(1) the amount distributed to the state aviation fund pursuant to Subsection B of Section 7-1-6.7 NMSA 1978;

(2) the amount distributed to the motorboat fuel tax fund pursuant to Section 7-1-6.8 NMSA 1978;

(3) the amount distributed to municipalities and counties pursuant to Subsection A of Section 7-1-6.9 NMSA 1978;

(4) the amount distributed to the county government road fund pursuant to Section 7-1-6.19 NMSA 1978;

(5) the amount distributed to the local governments road fund pursuant to Section 7-1-6.39 NMSA 1978;

(6) the amount distributed to the municipalities pursuant to Section 7-1-6.27 NMSA 1978;

(7) the amount distributed to the municipal arterial program of the local governments road fund pursuant to Section 7-1-6.28 NMSA 1978;

(8) the amount distributed to a qualified tribe pursuant to [a gasoline tax sharing agreement entered into between the secretary of transportation and the qualified tribe pursuant to the provisions of] Section [67-3-8.1] 7-1-6.44 NMSA 1978; and

(9) the amount distributed to the general fund pursuant to Section 7-1-6.44 NMSA 1978.

B. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state road fund in an amount equal to the net receipts attributable to the taxes, interest and penalties from the Weight Distance Tax Act."

SECTION 5. Section 7-1-6.19 NMSA 1978 (being Laws 1991, Chapter 9, Section 15, as amended) is amended to read:

"7-1-6.19. DISTRIBUTION--COUNTY GOVERNMENT ROAD FUND CREATED.--

A. There is created in the state treasury the "county government road fund".

B. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the county government road fund in [an amount equal to five and seventy-six hundredths percent] the following percentages of the net receipts attributable to the gasoline tax:

(1) prior to July 1, 2015, five and seventy-six hundredths percent; and

(2) on and after July 1, 2015, five and fifteen-hundredths percent."

SECTION 6. Section 7-1-6.27 NMSA 1978 (being Laws 1991, Chapter 9, Section 20, as amended) is amended to read:

"7-1-6.27. DISTRIBUTION--MUNICIPAL ROADS.--

A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to municipalities for the purposes and amounts specified in this section in an aggregate amount equal to [five and seventy-six hundredths percent] the following percentages of the net receipts attributable to the gasoline tax:

(1) prior to July 1, 2015, five and seventy-six hundredths percent; and

(2) on and after July 1, 2015, five and fifteen-hundredths percent.

B. The distribution authorized in this section shall be used for the following purposes:

(1) reconstructing, resurfacing, maintaining, repairing or otherwise improving existing alleys, streets, roads or bridges, or any combination of the foregoing; or laying off, opening, constructing or otherwise acquiring new alleys, streets, roads or bridges, or any combination of the foregoing; provided that any of the foregoing improvements may include, but are not limited to, the acquisition of rights of way;

(2) to provide matching funds for projects subject to cooperative agreements with the [state highway and] department of transportation [department] pursuant to Section 67-3-28 NMSA 1978; and

(3) for expenses of purchasing, maintaining and operating transit operations and facilities, for the operation of a transit authority established by the Municipal Transit Law and for the operation of a vehicle emission inspection program. A municipality may engage in the business of the transportation of passengers and property within the political subdivision by whatever means the municipality may decide and may acquire cars, trucks, motor buses and other equipment necessary for operating the business. A municipality may acquire land, erect buildings and equip the buildings with all the necessary machinery and facilities for the operation, maintenance, modification, repair and storage of the cars, trucks, motor buses and other equipment needed. A municipality may do all things necessary for the acquisition and the conduct of the business of public transportation.

C. For the purposes of this section:

(1) "computed distribution amount" means the distribution amount calculated for a municipality for a month pursuant to Paragraph (2) of Subsection D of this section prior to any adjustments to the amount due to the provisions of Subsections E and F of this section;

(2) "floor amount" means four hundred seventeen dollars ($417);

(3) "floor municipality" means a municipality whose computed distribution amount is less than the floor amount; and

(4) "full distribution municipality" means a municipality whose population at the last federal decennial census was at least two hundred thousand.

D. Subject to the provisions of Subsections E and F of this section, each municipality shall be distributed a portion of the aggregate amount distributable under this section in an amount equal to the greater of:

(1) the floor amount; or

(2) eighty-five percent of the aggregate amount distributable under this section times a fraction, the numerator of which is the municipality's reported taxable gallons of gasoline for the immediately preceding state fiscal year and the denominator of which is the reported total taxable gallons for all municipalities for the same period.

E. Fifteen percent of the aggregate amount distributable under this section shall be referred to as the "redistribution amount". Beginning in August 1990, and each month thereafter, from the redistribution amount there shall be taken an amount sufficient to increase the computed distribution amount of every floor municipality to the floor amount. In the event that the redistribution amount is insufficient for this purpose, the computed distribution amount for each floor municipality shall be increased by an amount equal to the redistribution amount times a fraction, the numerator of which is the difference between the floor amount and the municipality's computed distribution amount and the denominator of which is the difference between the product of the floor amount multiplied by the number of floor municipalities and the total of the computed distribution amounts for all floor municipalities.

F. If a balance remains after the redistribution amount has been reduced pursuant to Subsection E of this section, there shall be added to the computed distribution amount of each municipality that is neither a full distribution municipality nor a floor municipality an amount that equals the balance of the redistribution amount times a fraction, the numerator of which is the computed distribution amount of the municipality and the denominator of which is the sum of the computed distribution amounts of all municipalities that are neither full distribution municipalities nor floor municipalities."

SECTION 7. Section 7-1-6.28 NMSA 1978 (being Laws 1991, Chapter 9, Section 22, as amended) is amended to read:

"7-1-6.28. DISTRIBUTION--MUNICIPAL ARTERIAL PROGRAM OF LOCAL GOVERNMENTS ROAD FUND.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the municipal arterial program of the local governments road fund created in Section 67-3-28.2 NMSA 1978 in an amount equal to [one and forty-four hundredths percent] the following percentages of the net receipts attributable to the gasoline tax:

A. prior to July 1, 2015, one and forty-four hundredths percent; and

B. on and after July 1, 2015, one and twenty-nine hundredths percent."

SECTION 8. Section 7-1-6.39 NMSA 1978 (being Laws 1995, Chapter 6, Section 9, as amended) is amended to read:

"7-1-6.39. DISTRIBUTION OF SPECIAL FUEL EXCISE TAX AND GASOLINE TAX TO LOCAL GOVERNMENTS ROAD FUND.--

A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the local governments road fund in [an amount equal to nine and fifty-two hundredths percent] the following percentages of the net receipts attributable to the [taxes, exclusive of penalties and interest, from the] special fuel excise tax [imposed by the Special Fuels Supplier Tax Act]:

(1) prior to July 1, 2015, nine and fifty-two hundredths percent; and

(2) on and after July 1, 2015, seventeen and thirty-nine hundredths percent.

B. On and after July 1, 2015, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the local governments road fund in an amount equal to ten and fifty-three hundredths percent of the net receipts attributable to the gasoline tax."

SECTION 9. Section 7-1-6.44 NMSA 1978 (being Laws 2003, Chapter 150, Section 2, as amended) is amended to read:

"7-1-6.44. DISTRIBUTION--GASOLINE TAX SHARING AGREEMENT.--

A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made by the department to each qualified tribe [in an amount equal to forty percent of the net receipts attributable to the gasoline tax paid to the department on two million five hundred thousand gallons of gasoline each month. The distribution to each qualified tribe shall be made] pursuant to a gasoline tax sharing agreement entered into by the department of transportation and the qualified tribe according to the provisions of Section 67-3-8.1 NMSA 1978.

B. From the balance remaining each month [from the gasoline tax revenue on two million five hundred thousand gallons of gasoline per qualified tribe] after distributions made pursuant to Subsection A of this section, a distribution of thirty-three thousand three hundred thirty-three dollars ($33,333) shall be made to the general fund.

C. The balance remaining after the distributions [from gasoline tax revenue from two million five hundred thousand gallons of gasoline per qualified tribe] pursuant to Subsections A and B of this section shall be distributed pursuant to Section 7-1-6.10 NMSA 1978.

D. As used in this section, "qualified tribe" means the Pueblo of Nambe or the Pueblo of Santo Domingo, as long as it owns one hundred percent of a registered Indian tribal distributor pursuant to the Gasoline Tax Act, that qualifies for a deduction pursuant to Subsection F of Section 7-13-4 NMSA 1978 and has entered into a gasoline tax sharing agreement pursuant to Section 67-3-8.1 NMSA 1978."

SECTION 10. Section 7-13-3 NMSA 1978 (being Laws 1971, Chapter 207, Section 3, as amended) is amended to read:

"7-13-3. IMPOSITION AND RATE OF TAX--DENOMINATION AS "GASOLINE TAX".--

A. For the privilege of receiving gasoline in this state, there is imposed an excise tax at a rate provided in Subsection B of this section on each gallon of gasoline received in New Mexico.

[B. The tax imposed by Subsection A of this section shall be seventeen cents ($.17) per gallon received in New Mexico.

C.] The tax imposed by this section may be called the "gasoline tax".

B. The rate of the gasoline tax shall be:

(1) prior to July 1, 2015, seventeen cents ($.17) per gallon received in New Mexico;

(2) beginning July 1, 2015 and prior to July 1, 2016, nineteen cents ($.19) per gallon received in New Mexico; and

(3) on and after July 1, 2016, the rate determined pursuant to Subsection C of this section.

C. No later than April 30, 2016 and April 30 of each subsequent year, the department shall calculate the rate of gasoline tax to be imposed as of July 1 of that year. The rate of the gasoline tax per gallon shall be equal to the product, rounded down to the nearest whole cent, of nineteen cents ($.19) multiplied by a fraction with a numerator equal to the chained price index for the previous calendar year and a denominator equal to the chained price index for calendar year 2014; provided that the rate of the tax shall not be less than the rate imposed on July 1 of the previous year. As used in this subsection, "chained price index" means the chained price index for nonresidential construction in the consumer price index."

SECTION 11. Section 7-14-4 NMSA 1978 (being Laws 1988, Chapter 73, Section 14) is amended to read:

"7-14-4. DETERMINATION OF AMOUNT OF MOTOR VEHICLE EXCISE TAX.--

A. The rate of the motor vehicle excise tax is [three percent] as follows and is applied to the price paid for the vehicle:

(1) prior to July 1, 2018, three percent; and

(2) on and after July 1, 2018, four percent.

B. If the price paid does not represent the value of the vehicle in the condition that existed at the time it was acquired, the tax rate shall be applied to the reasonable value of the vehicle in such condition at such time. However, allowances granted for vehicle trade-ins may be deducted from the price paid or the reasonable value of the vehicle purchased."

SECTION 12. Section 7-14-10 NMSA 1978 (being Laws 1988, Chapter 73, Section 20, as amended) is amended to read:

"7-14-10. DISTRIBUTION OF PROCEEDS.--

A. The receipts from the tax and any associated interest and penalties shall be deposited in the "motor vehicle suspense fund", hereby created in the state treasury. B. Prior to July 1, 2018, as of the end of each month, the net receipts attributable to the tax and associated penalties and interest shall be distributed to the general fund.

C. On and after July 1, 2018, as of the end of each month, the net receipts attributable to:

(1) seventy-five percent of the tax and associated penalties and interest shall be distributed to the general fund; and

(2) twenty-five percent of the tax and associated penalties and interest shall be distributed to the state road fund."

SECTION 13. Section 7-16A-3 NMSA 1978 (being Laws 1992, Chapter 51, Section 3, as amended) is amended to read:

"7-16A-3. IMPOSITION AND RATE OF TAX--DENOMINATION AS SPECIAL FUEL EXCISE TAX.--

A. For the privilege of receiving or using special fuel in this state, there is imposed an excise tax at a rate provided in Subsection B of this section on each gallon of special fuel received in New Mexico.

[B. The tax imposed by Subsection A of this section shall be twenty-one cents ($.21) per gallon of special fuel received or used in New Mexico.

C.] The tax imposed by this section may be called the "special fuel excise tax".

B. The rate of the special fuel excise tax shall be:

(1) prior to July 1, 2015, twenty-one cents ($.21) per gallon of special fuel received or used in New Mexico;

(2) beginning July 1, 2015 and prior to July 1, 2016, twenty-three cents ($.23) per gallon of special fuel received or used in New Mexico; and

(3) on and after July 1, 2016, the rate determined pursuant to Subsection C of this section.

C. No later than April 30, 2016 and April 30 of each subsequent year, the department shall calculate the rate of special fuel excise tax to be imposed as of July 1 of that year. The rate of the special fuel excise tax per gallon shall be equal to the product, rounded down to the nearest whole cent, of twenty-three cents ($.23) multiplied by a fraction with a numerator equal to the chained price index for the previous calendar year and a denominator equal to the chained price index for calendar year 2014; provided that the rate of the tax shall not be less than the rate imposed on July 1 of the previous year. As used in this subsection, "chained price index" means the chained price index for nonresidential construction in the consumer price index."

SECTION 14. Section 7-27-12 NMSA 1978 (being Laws 1961, Chapter 5, Section 10, as amended by Laws 2001, Chapter 37, Section 1 and by Laws 2001, Chapter 338, Section 1) is amended to read:

"7-27-12. WHEN SEVERANCE TAX BONDS TO BE ISSUED.--

A. The state board of finance shall issue and sell all severance tax bonds when authorized to do so by any law that sets out the amount of the issue and the recipient of the money.

B. The state board of finance shall also issue and sell severance tax bonds authorized by Sections 72-14-36 through 72-14-42 NMSA 1978, and such authority as has been given to the interstate stream commission to issue and sell such bonds is transferred to the state board of finance. The state board of finance shall issue and sell all severance tax bonds only when so instructed by resolution of the governing body or by written direction from an authorized officer of the recipient of the bond money.

C. Except as provided in Subsection D of this section, proceeds from supplemental severance tax bonds shall be used only for public school capital outlay projects pursuant to the Public School Capital Outlay Act or the Public School Capital Improvements Act.

D. Proceeds from supplemental severance tax bonds issued pursuant to:

(1) Paragraph (2) of Subsection A of Section 19 of Chapter 6 of Laws 1999 (1st S.S.) shall be used for the purposes specified in that paragraph; and

(2) Section 18 of this 2015 act shall be used for the purposes specified in that section.

E. Except as provided in Subsection F of this section, the state board of finance shall issue and sell all supplemental severance tax bonds when so instructed by resolution of the public school capital outlay council pursuant to Section 7-27-12.2 NMSA 1978.

F. The state board of finance shall issue and sell supplemental severance tax bonds authorized by:

(1) Paragraph (2) of Subsection A of Section 19 of Chapter 6 of Laws 1999 (1st S.S.) when so instructed by resolution of the [commission on] higher education department; and

(2) Section 18 of this 2015 act when certified by the department of transportation."

SECTION 15. Section 7-27-12.2 NMSA 1978 (being Laws 2001, Chapter 338, Section 2, as amended) is amended to read:

"7-27-12.2. SUPPLEMENTAL SEVERANCE TAX BONDS--PUBLIC SCHOOL CAPITAL OUTLAY PROJECTS.--

A. The public school capital outlay council is authorized to certify by resolution that proceeds of supplemental severance tax bonds are needed for expenditures relating to public school capital outlay projects pursuant to the Public School Capital Outlay Act or for the state distribution for public school capital improvements pursuant to the Public School Capital Improvements Act. The resolution shall specify the total amount needed.

B. The state board of finance may issue and sell supplemental severance tax bonds in compliance with the Severance Tax Bonding Act when the public school capital outlay council certifies by resolution the need for the issuance of the bonds. The amount of the supplemental severance tax bonds sold pursuant to this section at each sale shall not exceed the lesser of the amount certified by the council or:

(1) for fiscal years 2016 through 2020, eighty-eight and nine-tenths percent of the amount that may be issued pursuant to the restrictions of Section 7-27-14 NMSA 1978; or

(2) for fiscal year 2021 and subsequent fiscal years, one hundred percent of the amount of supplemental severance tax bonds that may be issued pursuant to the restrictions of Section 7-27-14 NMSA 1978.

C. The state board of finance shall schedule the issuance and sale of the bonds in the most expeditious and economical manner possible.

D. The proceeds from the sale of the bonds are appropriated as follows:

(1) the amount certified by the secretary of public education as necessary to make the distribution pursuant to Section 22-25-9 NMSA 1978 is appropriated to the public school capital improvements fund for the purpose of carrying out the provisions of the Public School Capital Improvements Act; and

(2) the remainder of the proceeds is appropriated to the public school capital outlay fund for the purpose of carrying out the provisions of the Public School Capital Outlay Act."

SECTION 16. Section 7-27-14 NMSA 1978 (being Laws 1961, Chapter 5, Section 11, as amended) is amended to read:

"7-27-14. AMOUNT OF TAX--SECURITY FOR BONDS.--

A. The legislature shall provide for the continued assessment, levy, collection and deposit into the severance tax bonding fund of the tax or taxes upon natural resource products severed and saved from the soil of the state that, together with such other income as may be deposited to the fund, will be sufficient to produce an amount that is at least the amount necessary to meet annual debt service charges on all outstanding severance tax bonds and supplemental severance tax bonds.

B. Except as otherwise specifically provided by law, the state board of finance shall issue no severance tax bonds unless the aggregate amount of severance tax bonds outstanding, and including the issue proposed, can be serviced with not more than fifty percent of the annual deposits into the severance tax bonding fund, as determined by the lesser of the deposits during the preceding fiscal year or the deposits during the current fiscal year as estimated by the division.

C. The state board of finance shall issue no supplemental severance tax bonds with a term that extends beyond the fiscal year in which the bonds are issued unless the aggregate amount of severance tax bonds and supplemental severance tax bonds outstanding, and including the issue proposed, can be serviced with not more than sixty-two and

one-half percent of the annual deposits into the severance tax bonding fund, as determined by the lesser of the deposits during the preceding fiscal year or the deposits during the current fiscal year as estimated by the division.

D. Except as otherwise specifically provided by law, the state board of finance may issue supplemental severance tax bonds with a term that does not extend beyond the fiscal year in which they are issued if the debt service on such supplemental severance tax bonds when added to the debt service previously paid or scheduled to be paid during that fiscal year on severance tax bonds and supplemental severance tax bonds does not exceed [ninety-five percent] the following percentages of the lesser of the deposits into the severance tax bonding fund during the preceding fiscal year or the deposits into the severance tax bonding fund during the current fiscal year as estimated by the division:

(1) for fiscal years 2016 through 2020, ninety-five percent; and

(2) for fiscal year 2021 and subsequent fiscal years, ninety percent.

E. The provisions of this section shall not be modified by the terms of any severance tax bonds or supplemental severance tax bonds hereafter issued.

F. For the purposes of this section, "division" means the board of finance division of the department of finance and administration."

SECTION 17. A new section of the Severance Tax Bonding Act is enacted to read:

"[NEW MATERIAL] SEVERANCE TAX BONDS--TRANSPORTATION PROJECTS--APPROPRIATION OF PROCEEDS.--

A. For fiscal years 2015 through 2019, the department of transportation is authorized to certify that proceeds of severance tax bonds are needed for expenditures relating to transportation projects identified pursuant to this section. The certification shall specify the total amount needed.

B. In fiscal years 2015 through 2019, the state board of finance may issue and sell severance tax bonds, in compliance with the Severance Tax Bonding Act, in an amount not to exceed the lesser of ten percent of severance tax bonding capacity for each of those fiscal years, as determined pursuant to Section 7-27-10.1 NMSA 1978, or an aggregate principal amount of five hundred eighty-five million five hundred thousand dollars ($585,500,000), when the department of transportation certifies the need for the issuance of the bonds.

C. The state board of finance shall schedule the issuance and sale of the severance tax bonds as expeditiously and economically as possible upon a finding by the board that, based upon a certification from the department of transportation, the proceeds of the bonds are needed for projects identified pursuant to Subsection D of this section, that each project identified has been developed sufficiently to justify the issuance of the bonds and that a contract for the project can proceed within a reasonable time. The state board of finance shall further take the appropriate steps necessary to comply with the federal Internal Revenue Code of 1986, as amended. 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 B of this section.

D. The proceeds from the sale of severance tax bonds pursuant to this section are appropriated to the department of transportation in an amount not to exceed the following aggregate amounts for the following transportation projects:

(1) forty million dollars ($40,000,000) for the planning, design, reconstruction and improvement of New Mexico highway 136, between the Santa Teresa port of entry and McNutt road in Santa Teresa;

(2) thirty-five million dollars ($35,000,000) for the planning, design, reconstruction and improvement of New Mexico highway 1 from Mitchell Point to San Antonio;

(3) forty million dollars ($40,000,000) for the planning, design, construction and improvement of interstate 25 from mile post 0 to mile post 6;

(4) thirty million dollars ($30,000,000) for the planning, design, construction and improvement of United States highway 70 from mile post 148.8 to mile post 150.1;

(5) ninety million dollars ($90,000,000) for the planning, design, reconstruction and improvement of United States highway 82 from Artesia to Lovington;

(6) forty-one million five hundred thousand dollars ($41,500,000) for the planning, design, reconstruction and improvement of New Mexico highway 529 from mile post 0 to mile post 22;

(7) twenty-two million dollars ($22,000,000) for the planning, design, reconstruction and improvement of United States highway 285 from the Texas state line to Loving;

(8) twenty-one million dollars ($21,000,000) for the planning, design, reconstruction and improvement of United States highway 54 from mile post 119 to mile post 130;

(9) thirty million dollars ($30,000,000) for the planning, design, reconstruction and improvement of United States highway 54 from mile post 146 to mile post 163;

(10) thirty-seven million dollars ($37,000,000) for the planning, design, reconstruction and improvement of the interstate 25 and Rio Bravo boulevard interchange in Albuquerque;

(11) twenty-five million dollars ($25,000,000) for the planning, design, reconstruction and improvement of interstate 25 in Albuquerque, between the interstate 25 and Rio Bravo boulevard interchange and the interstate 25 and Isleta boulevard interchange;

(12) twenty-five million dollars ($25,000,000) for the replacement of a bridge over the Canadian river on United States highway 54 at mile post 325.3, including demolition, planning, design and construction;

(13) twenty-five million dollars ($25,000,000) for the planning, design, reconstruction and improvement of United States highway 64 from mile post 364.8 to mile post 391.7;

(14) fifty million dollars ($50,000,000) for the planning, design, reconstruction and improvement of United States highway 64 from mile post 56 to mile post 60;

(15) twenty-seven million dollars ($27,000,000) for the planning, design, reconstruction and improvement of New Mexico highway 68 from Espanola to Velarde;

(16) twelve million dollars ($12,000,000) for the planning, design, reconstruction and improvement of New Mexico highway 6 from interstate 40 to the boundary between state transportation districts 3 and 6;

(17) fifteen million dollars ($15,000,000) for the reconstruction and improvement of New Mexico highway 118 east of Gallup and within state transportation district 6; and

(18) twenty million dollars ($20,000,000) for the reconstruction and improvement of the portion of interstate 40 located within state transportation district 6.

E. Money from the severance tax bonds provided for in this section shall not be used to pay indirect costs. If the department of transportation has not certified the need for the issuance of bonds before July 1, 2019, the authorization provided in this section shall expire."

SECTION 18. A new section of the Severance Tax Bonding Act is enacted to read:

"[NEW MATERIAL] SUPPLEMENTAL SEVERANCE TAX BONDS--LOCAL GOVERNMENT TRANSPORTATION PROJECTS--APPROPRIATION OF PROCEEDS.--

A. For fiscal years 2016 through 2020, the department of transportation is authorized to certify that proceeds of supplemental severance tax bonds are needed for expenditures relating to local government transportation projects specifically authorized by the legislature.

B. The state board of finance may issue and sell supplemental severance tax bonds in fiscal years 2016 through 2020 in compliance with the Severance Tax Bonding Act when the department of transportation certifies the need for the issuance of the bonds, provided that in each of those fiscal years, the state board of finance shall issue no more than eleven and one-tenth percent of the amount of supplemental severance tax bonds that may be issued pursuant to Section 7-27-14 NMSA 1978.

C. The state board of finance shall schedule the issuance and sale of the supplemental severance tax bonds as expeditiously and economically as possible upon a finding by the board that, based upon a certification from the department of transportation, the proceeds of the bonds are needed for the identified projects, that each of the identified projects certified has been specifically authorized by the legislature pursuant to this section, that each project identified has been developed sufficiently to justify the issuance of the bonds and a contract for the project can proceed within a reasonable time. The state board of finance shall further take the appropriate steps necessary to comply with the federal Internal Revenue Code of 1986, as amended. The state board of finance may issue and sell the bonds in the same manner as other supplemental severance tax bonds in an amount not to exceed the authorized amount provided for in Subsection B of this section.

D. The proceeds from the sale of the bonds are appropriated to the department for transportation for distribution to local governments for transportation projects specifically authorized by the legislature for fiscal years 2016 through 2020.

E. Money from the supplemental severance tax bonds provided for in this section shall not be used to pay indirect costs. If the department of transportation has not certified the need for the issuance of the bonds before July 1, 2020, the authorization provided in this section shall expire.

F. As used in this section, "local government" means a municipality acting within its planning and platting jurisdiction, a county or an Indian nation, tribe or pueblo."

SECTION 19. REPEAL.--Laws 2001, Chapter 37, Section 1 is repealed.

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