0001| HOUSE BILL 595
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0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003| INTRODUCED BY
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0004| LARRY A. LARRANAGA
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0005|
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0006|
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0007|
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0008|
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0009|
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0010| AN ACT
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0011| RELATING TO STATE HIGHWAY DEBENTURES; AUTHORIZING THE PLEDGING
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0012| OF TAXES, FEES AND FEDERAL FUNDS IN THE STATE ROAD FUND TO THE
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0013| PAYMENT OF REVENUE BONDS; INCREASING BONDING AUTHORIZATION
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0014| LIMITS OF THE STATE HIGHWAY COMMISSION; AMENDING A SECTION OF
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0015| THE NMSA 1978.
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0016|
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0017| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0018| Section 1. Section 67-3-59.1 NMSA 1978 (being Laws 1989,
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0019| Chapter 157, Section 1, as amended) is amended to read:
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0020| "67-3-59.1. STATE HIGHWAY DEBENTURES--ISSUANCE--LIMITS--
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0021| APPROVAL--COUPONS.--
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0022| A. In order to provide funds to finance state
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0023| highway projects, including state highway projects that are
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0024| required for the waste isolation pilot project and are eligible
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0025| for federal reimbursement or payment as authorized by federal
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0001| legislation, the state highway commission is authorized to
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0002| issue bonds from time to time, payable from federal funds, not
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0003| otherwise obligated, that are paid into the state road fund and
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0004| from the proceeds of the collection of [gasoline excise]
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0005| taxes and [motor vehicle registration] fees that are required
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0006| by law to be paid into the state road fund and not otherwise
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0007| pledged solely to the payment of outstanding bonds and
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0008| debentures. Bonds issued pursuant to this section shall be
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0009| paid solely from taxes, fees and federal funds deposited in the
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0010| state road fund and shall not constitute a general obligation
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0011| of the state.
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0012| B. The total aggregate outstanding principal amount
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0013| of bonds issued from time to time pursuant to this section,
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0014| secured by or payable from the [gasoline excise] taxes and
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0015| [motor vehicle registration] fees in the state road fund,
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0016| shall not [without additional authorization of the state
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legislature, exceed one hundred fifty million dollars
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($150,000,000) at any given time, subject to the following
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provisions:
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(1) the total aggregate outstanding principal
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amount of bonds issued for state highway projects that are
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required for the waste isolation pilot project and are eligible
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for federal reimbursement as authorized by federal legislation
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shall not exceed one hundred million dollars ($100,000,000);
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and
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(2) the total aggregate outstanding principal
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amount of bonds issued for state highway projects other than
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state highway projects that are required for the waste
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isolation pilot project and are eligible for federal
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reimbursement as authorized by federal legislation shall not
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exceed fifty million dollars ($50,000,000)] exceed an amount
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0007| that can be serviced with not more than fifty percent of the
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0008| annual deposits into the state road fund as determined by the
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0009| deposits during the preceding fiscal year.
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0010| C. The state highway commission may issue bonds to
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0011| refund other bonds issued pursuant to this section by exchange
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0012| or current or advance refunding.
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0013| D. Each series of bonds shall have a maturity of no
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0014| more than twenty-five years from the date of issuance. The
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0015| state highway commission shall determine all other terms,
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0016| covenants and conditions of the bonds; provided that the bonds
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0017| shall not be issued pursuant to this section unless the state
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0018| board of finance approves the issuance of the bonds and the
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0019| principal amount of and interest rate or maximum net effective
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0020| interest rate on the bonds.
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0021| E. The bonds shall be executed with the manual or
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0022| facsimile signatures of the chairman of the state highway
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0023| commission, countersigned by the state treasurer and attested
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0024| to by the secretary of the state highway commission, with the
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0025| seal of the state highway commission imprinted or otherwise
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0001| affixed to the bonds.
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0002| F. Proceeds of the bonds may be used to pay
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0003| expenses incurred in the preparation, issuance and sale of the
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0004| bonds and, together with the earnings on the proceeds of the
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0005| bonds, may be used to pay rebate, penalty, interest and other
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0006| obligations relating to the bonds and the proceeds of the bonds
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0007| under the federal Internal Revenue Code of 1986, as amended.
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0008| G. The bonds may be sold at public or private sale.
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0009| If sold at public sale, a notice of the time and place of sale
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0010| shall be published in a newspaper of general circulation in the
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0011| state, and in any other newspaper determined in the resolution
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0012| authorizing the issuance of the bonds, once each week for two
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0013| consecutive weeks prior to the date of sale. The bonds may be
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0014| purchased by the state treasurer or state investment officer.
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0015| H. This section is full authority for the issuance
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0016| and sale of the bonds, and the bonds shall not be invalid for
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0017| any irregularity or defect in the proceedings for their
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0018| issuance and sale and shall be incontestable in the hands of
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0019| bona fide purchasers or holders of the bond for value.
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0020| I. The bonds shall be legal investments for any
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0021| person or board charged with the investment of public funds and
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0022| may be accepted as security for any deposit of public money
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0023| and, with the interest thereon, are exempt from taxation by the
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0024| state and any political subdivision or agency of the state.
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0025| J. Upon the issuance of bonds pursuant to this
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0001| section after July 1, 1997, the state highway commission shall
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0002| establish a reserve to be funded in an amount equal to fifty
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0003| percent of the maximum aggregate debt service due in any year
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0004| on such bonds. The reserve fund requirement shall not apply to
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0005| bonds outstanding on July 1, 1997 or any reissue or refunding
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0006| of those bonds.
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0007| K. Any law authorizing the imposition or
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0008| distribution of taxes or fees paid into the state road fund or
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0009| that affects those taxes and fees shall not be amended or
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0010| repealed or otherwise directly or indirectly modified so as to
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0011| impair any outstanding bonds secured by a pledge of revenues
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0012| from those taxes and fees paid into the state road fund, unless
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0013| the bonds have been discharged in full or provisions have been
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0014| made for a full discharge. In addition, while any bonds issued
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0015| by the state highway commission pursuant to the provisions of
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0016| this section remain outstanding, the powers or duties of the
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0017| commission shall not be diminished or impaired in any manner
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0018| that will affect adversely the interests and rights of the
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0019| holder of such bonds."
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0020| - 5 -
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