HOUSE TRANSPORTATION, PUBLIC WORKS AND CAPITAL IMPROVEMENTS COMMITTEE SUBSTITUTE FOR

HOUSE BILL 694

54th legislature - STATE OF NEW MEXICO - first session, 2019

AN ACT

RELATING TO THE PUBLIC PEACE, HEALTH, SAFETY AND WELFARE; PROVIDING DEFINITIONS; CREATING THE LOCAL GOVERNMENT TRANSPORTATION PROJECT FUND; PROVIDING FOR DISTRIBUTIONS FOR LOCAL GOVERNMENT TRANSPORTATION INFRASTRUCTURE 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] DEFINITIONS--LOCAL GOVERNMENT TRANSPORTATION PROJECT FUND CREATED--DISTRIBUTIONS.--

          A. As used in this section:

                (1) "fund" means the local government transportation project fund;

                (2) "local government" means a county or municipality;

                (3) "local government transportation project" means environmental and other studies, planning, design, construction and acquisition of rights of way necessary for the development of transportation infrastructure in a county or municipality;

                (4) "non-state money" means money that does not derive from revenue or interest into the state treasury or into a state fund; and

                (5) "transportation infrastructure" means highways, streets, roadways, bridges, crossing structures and parking facilities, including all areas for vehicular use for travel, ingress, egress and parking.

          B. The "local government transportation project fund" is created in the state treasury. The fund consists of appropriations, donations, interest from investment of the fund and other money distributed to the fund. The department shall administer the fund and may establish subaccounts for the fund as it deems necessary. Money in the fund is appropriated to the department for expenditure as provided in this section. Disbursements from the fund shall be made by warrant of the secretary of finance and administration pursuant to vouchers signed by the secretary of transportation or the secretary's designee. Money in the fund shall not revert at the end of a fiscal year. 

          C. Money in the fund may be used to make a grant to a local government for a local government transportation project that has been approved pursuant to Subsection D of this section for up to:

                (1) ninety-five percent of the total cost of a local government transportation project; provided that the local government has demonstrated an ability, and has contracted, to provide the remainder of the project costs in non-state money; or

                (2) one hundred percent of the total cost of a local government transportation project if a financial hardship qualification certificate is issued to the local government by the department of finance and administration and the level of hardship assistance is approved by the state transportation commission; provided that the local government has demonstrated an ability, and has contracted, to provide the remainder of the project costs in non-state money.

          D. By August 1, 2019 and by August 1 of each year thereafter, the secretary shall submit a proposed list of local government transportation projects identified by the department's metropolitan planning organization and regional transportation planning organization planning process to the state transportation commission. Subject to any direction by the legislature regarding distributions from the fund, such as minimum distributions by engineering districts or to rural or urbanized local governments, the commission shall approve a prioritized list of local government transportation projects for funding from the fund by September 1, 2019 and by September 1 of each year thereafter. The commission may approve subsequent changes to a priority list as it deems necessary.

          E. By November 30, 2019 and by November 30 of each year thereafter, the department shall provide a report to the appropriate interim legislative committee on the status of the fund, the status of the local government transportation projects for which grants have been made from the fund and the outstanding demand for assistance from the fund."

     SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2019.

- 4 -