0001|                        SENATE BILL 215
    |
0002|     42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION,
    |
0003|     1996
    |
0004|                         INTRODUCED BY
    |
0005|                       JOSEPH J. CARRARO
    |
0006|     
    |
0007|                                
    |
0008|     
    |
0009|     
    |
0010|     
    |
0011|                             AN ACT
    |
0012|     RELATING TO TRANSPORTATION; ABOLISHING THE STATE TRANSPORTATION
    |
0013|     AUTHORITY; TRANSFERRING PERSONNEL, ASSETS AND OBLIGATIONS;
    |
0014|     REPEALING THE RESOURCE TRANSPORTATION AND PASSENGER
    |
0015|     TRANSPORTATION DEVELOPMENT ACT; AUTHORIZING THE STATE HIGHWAY
    |
0016|     COMMISSION TO ISSUE REVENUE BONDS AND REFUNDING BONDS; PROVIDING
    |
0017|     THE STATE HIGHWAY COMMISSION WITH THE POWER OF EMINENT DOMAIN;
    |
0018|     REPEALING AND ENACTING SECTIONS OF THE NMSA 1978.
    |
0019|     
    |
0020|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
    |
0021| Section 1.  A new section of Chapter 67, Article 3 NMSA
    |
0022|     1978 is enacted to read:
    |
0023|       "[<u>NEW MATERIAL</u>]  STATE HIGHWAY COMMISSION--POWERS OF
    |
0024|     EMINENT DOMAIN.--
    |
0025|            A.  The state highway commission shall have the power
    |
0001|     to acquire property by purchase, lease, gift or devise for the
    |
0002|     purposes of construction of transportation systems by a private
    |
0003|     entity.
    |
0004|            B.  The power to acquire property shall be construed
    |
0005|     broadly and shall include the power to acquire property for the
    |
0006|     construction and maintenance of communication and transportation
    |
0007|     structures and other facilities necessary for the operation of 
    |
0008|     transportation systems.
    |
0009|            C.  The state highway commission shall have the
    |
0010|     authority to negotiate for the acquisition of property from any
    |
0011|     person, governmental entity or Indian tribe or pueblo for the
    |
0012|     purpose of promoting the development of transportation and
    |
0013|     passenger transportation facilities."
    |
0014|       Section 2.  A new section of Chapter 67, Article 3 NMSA
    |
0015|     1978 is enacted to read:
    |
0016|       "[<u>NEW MATERIAL</u>]  TRANSPORTATION BONDS.--
    |
0017|            A. Whenever the state highway commission by
    |
0018|     resolution determines that interest or necessity demands the
    |
0019|     issuance of revenue bonds to finance the development and
    |
0020|     construction of transportation systems, it may, by resolution,
    |
0021|     make and issue state revenue bonds which shall be known as
    |
0022|     "transportation bonds".  Such bonds shall be payable solely out
    |
0023|     of the net income to be derived from the operation of the
    |
0024|     project and shall pledge, irrevocably, such income to the
    |
0025|     payment of those bonds.  The state board of finance may require
    |
0001|     such other guarantees as it deems necessary.  The bonds shall
    |
0002|     never become a general obligation of the state or any political
    |
0003|     subdivision.
    |
0004|            B.  The proceeds from the sale of transportation
    |
0005|     bonds shall be used solely for the purposes specified in the
    |
0006|     resolution and for which they were issued."
    |
0007|       Section 3.  A new section of Chapter 67, Article 3 NMSA
    |
0008|     1978 is enacted to read:
    |
0009|       "[<u>NEW MATERIAL</u>]  TRANSPORTATION BONDS--TERMS.--Transportation bonds issued by the state highway commission:
    |
0010|            A.  shall bear interest which at the time of
    |
0011|     commitment shall be equal to the market return on comparable
    |
0012|     investments but shall not be less than the average rate of
    |
0013|     interest or return on all the investments of the severance tax
    |
0014|     permanent fund for the immediately preceding fiscal year minus
    |
0015|     two percentage points previous to their issue;
    |
0016|            B.  shall be payable at such times as the commission
    |
0017|     may provide and shall be fully registered as to principal and
    |
0018|     interest;
    |
0019|            C.  may be subject to prior redemption at the
    |
0020|     commission's option at such time and upon such terms and
    |
0021|     conditions, with or without payment of premiums, as may be
    |
0022|     provided in the resolution of the commission;
    |
0023|            D.  may mature at any time not exceeding fifty years
    |
0024|     after the date of issuance;
    |
0025|            E.  may be serial in form and maturity and may
    |
0001|     consist of one bond payable at one time or in installments;
    |
0002|            F.  shall be sold for cash at, above or below par and
    |
0003|     at the effective interest rate permitted in this section; and
    |
0004|            G.  may be sold at a public or private sale."
    |
0005|       Section 4.  A new section of Chapter 67, Article 3 NMSA
    |
0006|     1978 is enacted to read:
    |
0007|       "[<u>NEW MATERIAL</u>]  REFUNDING BONDS.--
    |
0008|            A.  Transportation bonds issued pursuant to the
    |
0009|     provisions of Chapter 67, Article 3 NMSA 1978 that are
    |
0010|     outstanding may at any time and from time to time be refunded by
    |
0011|     the state highway commission upon the adoption of a resolution
    |
0012|     providing for such issuance and by the issuance of refunding
    |
0013|     bonds in such amount as the commission determines to refund the
    |
0014|     principal of the transportation bonds, all unpaid accrued and
    |
0015|     unaccrued interest thereon to the normal maturity date of such
    |
0016|     bonds or to selected prior redemption dates thereof, any
    |
0017|     redemption premiums, any commission and all estimated costs
    |
0018|     incidental to the issuance of such bonds and to such refunding
    |
0019|     as may be determined by the commission.
    |
0020|            B.  The principal amount of any such refunding bonds
    |
0021|     may be equal to, less than or greater than the principal amount
    |
0022|     of the bonds so refunded.
    |
0023|            C.  Any refunding may be effected, whether the bonds
    |
0024|     to be refunded have then matured or thereafter mature, either by
    |
0025|     sale of the refunding bonds and the application of the proceeds
    |
0001|     thereof for the payment of the bonds to be refunded or by
    |
0002|     exchange of the refunding bonds for the bonds to be refunded;
    |
0003|     provided that the bonds to be refunded shall not be canceled
    |
0004|     without the consent of the holders to surrender their bonds for
    |
0005|     payment or exchange prior to the date on which they are payable
    |
0006|     or if they are called for redemption prior to the date on which
    |
0007|     they are by their terms subject to redemption.
    |
0008|            D.  Any refunding bonds issued pursuant to this
    |
0009|     section shall be payable solely from the revenues out of which
    |
0010|     transportation bonds may be payable or solely from those amounts
    |
0011|     derived from an escrow as provided in this section, including
    |
0012|     amounts derived from the investment of refunding bond proceeds
    |
0013|     and other legally available amounts also provided in this
    |
0014|     section or from any combination of those sources.
    |
0015|            E.  Proceeds of refunding bonds shall either be
    |
0016|     applied immediately to the retirement of the bonds being
    |
0017|     refunded or be placed in escrow in a commercial bank or trust
    |
0018|     company that possesses and is exercising trust powers.
    |
0019|     Notwithstanding any statute to the contrary, such escrowed
    |
0020|     proceeds may be invested in short-term securities, long-term
    |
0021|     securities or both."
    |
0022|       Section 5.  A new section of Chapter 67, Article 3 NMSA
    |
0023|     1978 is enacted to read: 
    |
0024|       "[<u>NEW MATERIAL</u>]  TRANSPORTATION BONDS ELIGIBLE FOR
    |
0025|     INVESTMENT.--Transportation bonds issued by the state highway
    |
0001|     commission are hereby made securities in which all public
    |
0002|     officers and public bodies of this state and its political
    |
0003|     subdivisions and all insurance companies, trust companies,
    |
0004|     banking associations, investment companies, executors,
    |
0005|     administrators, trustees and other fiduciaries may properly and
    |
0006|     legally invest funds, including capital in their control or
    |
0007|     belonging to them.  Such bonds are securities which may properly
    |
0008|     and legally be deposited with and be received by any state or
    |
0009|     political subdivision officer for which the deposit of bonds or
    |
0010|     obligations of the state is authorized by law.  The bonds may be
    |
0011|     deemed by the state highway commission, with the approval of the
    |
0012|     state board of finance, certificates of deposit for purposes of
    |
0013|     the investment of state money, in which case the commission
    |
0014|     shall be deemed a New Mexico savings and loan association for
    |
0015|     these purposes only; provided that the state board of finance
    |
0016|     may waive all collateralization and other requirements as long
    |
0017|     as it finds the bonds to be comparable in safety to other
    |
0018|     investments of state funds.  No bonds issued by the state
    |
0019|     highway commission shall be eligible for investment or deposit
    |
0020|     by or with the state or any of its political subdivisions unless
    |
0021|     they have been rated AA or higher by an independent nationally
    |
0022|     recognized bond rating service based solely on the security of
    |
0023|     the bonds as investments without resort to any collateral
    |
0024|     guarantees.  No bonds shall be eligible for investment or
    |
0025|     deposit by or with the state or any of its political
    |
0001|     subdivisions unless the state highway commission has filed with
    |
0002|     the legislative finance committee its decision to issue the
    |
0003|     bonds and all of its findings and reasons in support of the
    |
0004|     decision and one complete regular session of the legislature has
    |
0005|     intervened since the filing."
    |
0006|       Section 6.  A new section to Chapter 67, Article 3 NMSA
    |
0007|     1978 is enacted to read:
    |
0008|       "[<u>NEW MATERIAL</u>]  TRANSPORTATION BONDS--EXEMPTION FROM
    |
0009|     TAXATION.--The construction, operation and maintenance of any
    |
0010|     transportation project by the state highway commission will
    |
0011|     constitute the performance of an essential governmental
    |
0012|     function.  As such, any transportation bonds issued pursuant to
    |
0013|     Chapter 67, Article 3 NMSA 1978, their transfer and the income
    |
0014|     therefrom, including any profit made on the sale thereof, shall
    |
0015|     at all times be free from taxation by the state and by its
    |
0016|     political subdivisions."
    |
0017|       Section 7.  TEMPORARY PROVISION--TRANSFER OF PERSONNEL,
    |
0018|     ASSETS AND OBLIGATIONS.--On July 1, 1996:
    |
0019|            A.  all personnel, appropriations, money, records,
    |
0020|     property, equipment and supplies of the state transportation
    |
0021|     authority shall be transferred to the state highway and
    |
0022|     transportation department; and
    |
0023|            B.  all contracts, agreements and obligations of the
    |
0024|     state transportation authority shall be binding and effective on
    |
0025|     the state highway and transportation department.
    |
0001|       Section 8.  REPEAL.--Sections 73-23-1 through 73-23-13 NMSA
    |
0002|     1978 (being Laws 1985 (1st. S.S.), Chapter 14, Sections 1
    |
0003|     through 13, as amended) are repealed.
    |
0004|       Section 9.  EFFECTIVE DATE.--The effective date of the
    |
0005|     provisions of this act is July 1, 1996. 
    |
0006|                                    
    |
0007|   
    |
0008|                    FORTY-SECOND LEGISLATURE
    |
0009|                      SECOND SESSION, 1996
    |
0010|   
    |
0011|   
    |
0012|                                              JANUARY 24, 1996
    |
0013|   
    |
0014|   Mr. President:
    |
0015|   
    |
0016|     Your COMMITTEES' COMMITTEE, to whom has been referred
    |
0017|   
    |
0018|                           SENATE BILL 215
    |
0019|   
    |
0020|   has had it under consideration and finds same to be GERMANE, PURSUANT
    |
0021|   TO CONSTITUTIONAL PROVISIONS, and thence referred to the
    |
0022|   CORPORATIONS AND TRANSPORTATION COMMITTEE.
    |
0023|   
    |
0024|                              Respectfully submitted,
    |
0025|   
    |
0001|   
    |
0002|   
    |
0003|   
    |
0004|                              __________________________________
    |
0005|                              SENATOR MANNY M. ARAGON, Chairman 
    |
0006|   
    |
0007|   
    |
0008|   
    |
0009|   Adopted_______________________ Not Adopted_______________________
    |
0010|             (Chief Clerk)                        (Chief Clerk)
    |
0011|   
    |
0012|   
    |
0013|                     Date ________________________
    |
0014|   
    |
0015|   
    |
0016|   
    |
0017|   S0215CC1
    |