0001| HOUSE TRANSPORTATION COMMITTEE SUBSTITUTE FOR | 0002| HOUSE BILLS 1059, 595, 855, 1274 & 1332 | 0003| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0004| | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| | 0011| AN ACT | 0012| RELATING TO FINANCING OF HIGHWAY PROJECTS; INCREASING THE RATE | 0013| OF THE GASOLINE TAX AND THE SPECIAL FUEL EXCISE TAX; INCREASING | 0014| THE BONDING AUTHORITY OF THE STATE HIGHWAY COMMISSION FOR | 0015| CERTAIN HIGHWAY PROJECTS; AUTHORIZING THE PLEDGING OF TAXES, | 0016| FEES AND FEDERAL FUNDS IN THE STATE ROAD FUND TO THE PAYMENT OF | 0017| BONDS; AUTHORIZING VOLUNTARY COUNTY OR MUNICIPAL CONTRIBUTIONS | 0018| TO CERTAIN HIGHWAY PROJECTS; RESTRICTING THE USE OF THE STATE | 0019| ROAD FUND; IMPOSING AN ADMINISTRATIVE FEE; AMENDING AND | 0020| REPEALING SECTIONS OF THE NMSA 1978. | 0021| | 0022| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0023| Section 1. LEGISLATIVE FINDINGS--PURPOSE.-- | 0024| A. The legislature finds that there is high | 0025| unemployment and a lack of jobs in many areas of the state. | 0001| Further, the current effort by the federal government and the | 0002| state to reduce the number of individuals in need of welfare | 0003| makes it imperative to create not only more jobs, but good | 0004| jobs. Finally, the legislature finds that highway construction | 0005| projects can provide those jobs in many areas of the state and | 0006| at the same time make urgently needed road improvements that | 0007| will enhance and provide the infrastructure for economic | 0008| development efforts and purposes. | 0009| B. It is the purpose of this act to raise revenues | 0010| for the most urgent highway projects throughout the state, | 0011| provide good jobs for New Mexicans in many areas of the state, | 0012| assure the use of road revenues for highway projects and | 0013| enhance and meet economic development purposes and needs | 0014| throughout the state. | 0015| Section 2. Section 7-1-6.7 NMSA 1978 (being Laws 1994, | 0016| Chapter 5, Section 2, as amended by Laws 1995, Chapter 6, | 0017| Section 1 and also by Laws 1995, Chapter 36, Section 1) is | 0018| amended to read: | 0019| "7-1-6.7. DISTRIBUTIONS--STATE AVIATION FUND.-- | 0020| A. A distribution pursuant to Section 7-1-6.1 NMSA | 0021| 1978 shall be made to the state aviation fund in an amount | 0022| equal to three and fifty-nine hundredths percent of the gross | 0023| receipts attributable to the sale of fuel specially prepared | 0024| and sold for use in turboprop or jet-type engines as determined | 0025| by the department. | 0001| B. A distribution pursuant to Section 7-1-6.1 NMSA | 0002| 1978 shall be made to the state aviation fund in an amount | 0003| equal to [twenty-six hundredths of one percent] the following | 0004| percentages of gasoline taxes, exclusive of penalties and | 0005| interest, collected pursuant to the Gasoline Tax Act: | 0006| (1) from August 1, 1997 through July 31, 1998, | 0007| twenty-five hundredths of one percent; | 0008| (2) from August 1, 1998 through July 31, 1999, | 0009| twenty-three hundredths of one percent; | 0010| (3) from August 1, 1999 through July 31, 2000, | 0011| twenty-two hundredths of one percent; | 0012| (4) from August 1, 2000 through July 31, 2001, | 0013| twenty-one hundredths of one percent; and | 0014| (5) after July 31, 2001, two-tenths of one | 0015| percent." | 0016| Section 3. Section 7-1-6.8 NMSA 1978 (being Laws 1983, | 0017| Chapter 211, Section 13, as amended) is amended to read: | 0018| "7-1-6.8. DISTRIBUTION--MOTORBOAT FUEL TAX FUND.--A | 0019| distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made | 0020| to the motorboat fuel tax fund in an amount equal to [thirteen | 0021| hundredths of one percent] the following percentages of the net | 0022| receipts attributable to the gasoline tax: | 0023| A. from August 1, 1997 through July 31, 1998, twelve | 0024| hundredths of one percent; | 0025| B. from August 1, 1998 through July 31, 1999, twelve | 0001| hundredths of one percent; | 0002| C. from August 1, 1999 through July 31, 2000, eleven | 0003| hundredths of one percent; | 0004| D. from August 1, 2000 through July 31, 2001, one- | 0005| tenth of one percent; and | 0006| E. after July 31, 2001, one-tenth of one percent." | 0007| Section 4. Section 7-1-6.9 NMSA 1978 (being Laws 1991, | 0008| Chapter 9, Section 11, as amended) is amended to read: | 0009| "7-1-6.9. DISTRIBUTION OF GASOLINE TAXES TO MUNICIPALITIES | 0010| AND COUNTIES.-- | 0011| A. A distribution pursuant to Section 7-1-6.1 NMSA | 0012| 1978 shall be made in an amount equal to [ten and thirty-eight | 0013| hundredths percent] the following percentages of the net receipts | 0014| attributable to the taxes, exclusive of penalties and interest, | 0015| imposed by the Gasoline Tax Act: | 0016| (1) from August 1, 1997 through July 31, 1998, | 0017| nine and eight-tenths percent; | 0018| (2) from August 1, 1998 through July 31, 1999, | 0019| nine and three-tenths percent; | 0020| (3) from August 1, 1999 through July 31, 2000, | 0021| eight and eighty-two hundredths percent; | 0022| (4) from August 1, 2000 through July 31, 2001, | 0023| eight and four-tenths percent; and | 0024| (5) after July 31, 2001, eight and two | 0025| hundredths percent. | 0001| B. The amount determined in Subsection A of this | 0002| section shall be distributed as follows: | 0003| (1) ninety percent of the amount shall be paid | 0004| to the treasurers of municipalities and H class counties in the | 0005| proportion that the taxable motor fuel sales in each of the | 0006| municipalities and H class counties bears to the aggregate taxable | 0007| motor fuel sales in all of these municipalities and H class | 0008| counties; and | 0009| (2) ten percent of the amount shall be paid to | 0010| the treasurers of the counties, including H class counties, in the | 0011| proportion that the taxable motor fuel sales outside of | 0012| incorporated municipalities in each of the counties bears to the | 0013| aggregate taxable motor fuel sales outside of incorporated | 0014| municipalities in all of the counties. | 0015| C. This distribution shall be paid into the municipal | 0016| treasury or county general fund for general purposes or for any | 0017| special purposes designated by the governing body of the | 0018| municipality or county. Any municipality or H class county that | 0019| has created or that creates a "street improvement fund" to which | 0020| gasoline tax revenues or distributions are irrevocably pledged | 0021| under Sections 3-34-1 through 3-34-4 NMSA 1978 or that has pledged | 0022| all or a portion of gasoline tax revenues or distributions to the | 0023| payment of bonds shall receive its proportion of the distribution | 0024| of revenues under this section impressed with and subject to these | 0025| pledges." | 0001| Section 5. Section 7-1-6.19 NMSA 1978 (being Laws 1991, | 0002| Chapter 9, Section 15, as amended) is amended to read: | 0003| "7-1-6.19. DISTRIBUTION--COUNTY GOVERNMENT ROAD FUND | 0004| CREATED.-- | 0005| A. There is created in the state treasury the "county | 0006| government road fund". | 0007| B. A distribution pursuant to Section 7-1-6.1 NMSA | 0008| 1978 shall be made to the county government road fund in an amount | 0009| equal to [five and seventy-six hundredths percent] the following | 0010| percentages of the net receipts attributable to the gasoline tax: | 0011| (1) from August 1, 1997 through July 31, 1998, | 0012| five and forty-four hundredths percent; | 0013| (2) from August 1, 1998 through July 31, 1999, | 0014| five and fifteen hundredths percent; | 0015| (3) from August 1, 1999 through July 31, 2000, | 0016| four and nine-tenths percent; | 0017| (4) from August 1, 2000 through July 31, 2001, | 0018| four and sixty-six hundredths percent; and | 0019| (5) after July 31, 2001, four and forty-five | 0020| hundredths percent." | 0021| Section 6. Section 7-1-6.27 NMSA 1978 (being Laws 1991, | 0022| Chapter 9, Section 20, as amended) is amended to read: | 0023| "7-1-6.27. DISTRIBUTION--MUNICIPAL ROADS.-- | 0024| A. A distribution pursuant to Section 7-1-6.1 NMSA | 0025| 1978 shall be made to municipalities for the purposes and amounts | 0001| specified in this section in an aggregate amount equal to [five | 0002| and seventy-six hundredths percent] the following percentages of | 0003| the net receipts attributable to the gasoline tax: | 0004| (1) from August 1, 1997 through July 31, 1998, | 0005| five and forty-four hundredths percent; | 0006| (2) from August 1, 1998 through July 31, 1999, | 0007| five and fifteen hundredths percent; | 0008| (3) from August 1, 1999 through July 31, 2000, | 0009| four and nine-tenths percent; | 0010| (4) from August 1, 2000 through July 31, 2001, | 0011| four and sixty-six hundredths percent; and | 0012| (5) after July 31, 2001, four and forty-five | 0013| hundredths percent. | 0014| B. The distribution authorized in this section shall | 0015| be used for the following purposes: | 0016| (1) reconstructing, resurfacing, maintaining, | 0017| repairing or otherwise improving existing alleys, streets, roads | 0018| or bridges, or any combination of the foregoing; or laying off, | 0019| opening, constructing or otherwise acquiring new alleys, streets, | 0020| roads or bridges, or any combination of the foregoing; provided | 0021| that any of the foregoing improvements may include, but are not | 0022| limited to, the acquisition of rights of way; and | 0023| (2) for expenses of purchasing, maintaining and | 0024| operating transit operations and facilities, for the operation of | 0025| a transit authority established by the municipal transit law and | 0001| for the operation of a vehicle emission inspection program. A | 0002| municipality may engage in the business of the transportation of | 0003| passengers and property within the political subdivision by | 0004| whatever means the municipality may decide and may acquire cars, | 0005| trucks, motor buses and other equipment necessary for operating | 0006| the business. A municipality may acquire land, erect buildings | 0007| and equip the buildings with all the necessary machinery and | 0008| facilities for the operation, maintenance, modification, repair | 0009| and storage of the cars, trucks, motor buses and other equipment | 0010| needed. A municipality may do all things necessary for the | 0011| acquisition and the conduct of the business of public | 0012| transportation. | 0013| C. For the purposes of this section: | 0014| (1) "computed distribution amount" means the | 0015| distribution amount calculated for a municipality for a month | 0016| pursuant to Paragraph (2) of Subsection D of this section prior to | 0017| any adjustments to the amount due to the provisions of Subsections | 0018| E and F of this section; | 0019| (2) "floor amount" means four hundred seventeen | 0020| dollars ($417); | 0021| (3) "floor municipality" means a municipality | 0022| whose computed distribution amount is less than the floor amount; | 0023| and | 0024| (4) "full distribution municipality" means a | 0025| municipality whose population at the last federal decennial census | 0001| was at least two hundred thousand. | 0002| D. Subject to the provisions of Subsections E and F of | 0003| this section, each municipality shall be distributed a portion of | 0004| the aggregate amount distributable under this section in an amount | 0005| equal to the greater of: | 0006| (1) the floor amount; or | 0007| (2) eighty-five percent of the aggregate amount | 0008| distributable under this section times a fraction, the numerator | 0009| of which is the municipality's reported taxable gallons of | 0010| gasoline for the immediately preceding state fiscal year and the | 0011| denominator of which is the reported total taxable gallons for all | 0012| municipalities for the same period. | 0013| E. Fifteen percent of the aggregate amount | 0014| distributable under this section shall be referred to as the | 0015| "redistribution amount". Beginning in August 1990, and each month | 0016| thereafter, from the redistribution amount there shall be taken an | 0017| amount sufficient to increase the computed distribution amount of | 0018| every floor municipality to the floor amount. In the event that | 0019| the redistribution amount is insufficient for this purpose, the | 0020| computed distribution amount for each floor municipality shall be | 0021| increased by an amount equal to the redistribution amount times a | 0022| fraction, the numerator of which is the difference between the | 0023| floor amount and the municipality's computed distribution amount | 0024| and the denominator of which is the difference between the product | 0025| of the floor amount multiplied by the number of floor | 0001| municipalities and the total of the computed distribution amounts | 0002| for all floor municipalities. | 0003| F. If a balance remains after the redistribution | 0004| amount has been reduced pursuant to Subsection E of this section, | 0005| there shall be added to the computed distribution amount of each | 0006| municipality that is neither a full distribution municipality nor | 0007| a floor municipality an amount that equals the balance of the | 0008| redistribution amount times a fraction, the numerator of which is | 0009| the computed distribution amount of the municipality and the | 0010| denominator of which is the sum of the computed distribution | 0011| amounts of all municipalities that are neither full distribution | 0012| municipalities nor floor municipalities." | 0013| Section 7. Section 7-1-6.28 NMSA 1978 (being Laws 1991, | 0014| Chapter 9, Section 22, as amended) is amended to read: | 0015| "7-1-6.28. DISTRIBUTION--MUNICIPAL ARTERIAL PROGRAM OF | 0016| LOCAL GOVERNMENTS ROAD FUND.--A distribution pursuant to Section | 0017| 7-1-6.1 NMSA 1978 shall be made to the municipal arterial program | 0018| of the local governments road fund created in Section 67-3-28.2 | 0019| NMSA 1978 in an amount equal to [one and forty-four hundredths | 0020| percent] the following percentages of the net receipts | 0021| attributable to the gasoline tax: | 0022| A. from August 1, 1997 through July 31, 1998, one and | 0023| thirty-six hundredths percent; | 0024| B. from August 1, 1998 through July 31, 1999, one and | 0025| twenty-nine hundredths percent; | 0001| C. from August 1, 1999 through July 31, 2000, one and | 0002| twenty-two hundredths percent; | 0003| D. from August 1, 2000 through July 31, 2001, one and | 0004| seventeen hundredths percent; and | 0005| E. after July 31, 2001, one and eleven hundredths | 0006| percent." | 0007| Section 8. Section 7-1-6.39 NMSA 1978 (being Laws 1995, | 0008| Chapter 6, Section 9) is amended to read: | 0009| "7-1-6.39. DISTRIBUTION OF SPECIAL FUEL EXCISE TAX TO LOCAL | 0010| GOVERNMENTS ROAD FUND.--A distribution pursuant to Section 7-1-6.1 | 0011| NMSA 1978 shall be made to the local governments road fund in an | 0012| amount equal to [eleven and eleven hundredths percent] the | 0013| following percentages of the net receipts attributable to the | 0014| taxes, exclusive of penalties and interest, from the special fuel | 0015| excise tax imposed by the Special Fuels Supplier Tax Act: | 0016| A. from August 1, 1997 through July 31, 2000, ten and | 0017| fifty-three hundredths percent; and | 0018| B. after July 31, 2000, ten percent." | 0019| Section 9. Section 7-13-3 NMSA 1978 (being Laws 1971, | 0020| Chapter 207, Section 3, as amended) is amended to read: | 0021| "7-13-3. IMPOSITION AND RATE OF TAX--DENOMINATION AS | 0022| "GASOLINE TAX".-- | 0023| A. For the privilege of receiving gasoline in this | 0024| state, there is imposed an excise tax at a rate provided in | 0025| Subsection B of this section on each gallon of gasoline | 0001| received in New Mexico. | 0002| B. The tax imposed by Subsection A of this section | 0003| shall be [seventeen cents ($.17)] imposed at the following rates | 0004| per gallon received in New Mexico: | 0005| (1) from July 1, 1997 through June 30, 1998, | 0006| eighteen cents ($.18); | 0007| (2) from July 1, 1998 through June 30, 1999, | 0008| nineteen cents ($.19); | 0009| (3) from July 1, 1999 through June 30, 2000, | 0010| twenty cents ($.20); | 0011| (4) from July 1, 2000 through June 30, 2001, | 0012| twenty-one cents ($.21); and | 0013| (5) after June 30, 2001, twenty-two cents | 0014| ($.22). | 0015| C. The tax imposed by this section may be called the | 0016| "gasoline tax"." | 0017| Section 10. Section 7-16A-3 NMSA 1978 (being Laws 1992, | 0018| Chapter 51, Section 3, as amended) is amended to read: | 0019| "7-16A-3. IMPOSITION AND RATE OF TAX--DENOMINATION AS | 0020| SPECIAL FUEL EXCISE TAX.-- | 0021| A. For the privilege of receiving or using special | 0022| fuel in this state, there is imposed an excise tax at a rate | 0023| provided in Subsection B of this section on each gallon of special | 0024| fuel received in New Mexico. | 0025| B. The tax imposed by Subsection A of this section | 0001| shall be [eighteen cents ($.18)] imposed at the following rates | 0002| per gallon of special fuel received or used in New Mexico: | 0003| (1) from July 1, 1997 through June 30, 2000, | 0004| nineteen cents ($.19); and | 0005| (2) after June 30, 2000, twenty cents ($.20). | 0006| C. The tax imposed by this section may be called the | 0007| "special fuel excise tax"." | 0008| Section 11. Section 67-3-59.1 NMSA 1978 (being Laws 1989, | 0009| Chapter 157, Section 1, as amended) is amended to read: | 0010| "67-3-59.1. STATE HIGHWAY DEBENTURES--ISSUANCE--LIMITS-- | 0011| APPROVAL--COUPONS.-- | 0012| A. In order to provide funds to finance state highway | 0013| projects, including state highway projects that are required for | 0014| the waste isolation pilot project and are eligible for federal | 0015| reimbursement or payment as authorized by federal legislation, the | 0016| state highway commission is authorized to issue bonds from time to | 0017| time, payable from: | 0018| (1) federal funds, not otherwise obligated, that | 0019| are paid into the state road fund; | 0020| (2) a county or municipality's contribution, if | 0021| any, to the expense of a project authorized in Paragraph (3) of | 0022| Subsection C of this section as determined by a cooperative | 0023| agreement made pursuant to Section 67-3-28 NMSA 1978, which | 0024| contribution shall be deposited in the state road fund; and | 0025| (3) the proceeds of the collection of [gasoline | 0001| excise] taxes and [motor vehicle registration] fees that are | 0002| required by law to be paid into the state road fund and not | 0003| otherwise pledged solely to the payment of outstanding bonds and | 0004| debentures. | 0005| B. The total aggregate outstanding principal amount of | 0006| bonds issued from time to time pursuant to this section, secured | 0007| by or payable from [the gasoline excise taxes and motor vehicle | 0008| registration fees] federal funds not otherwise obligated that are | 0009| paid into the state road fund, county or municipal contributions | 0010| deposited in the state road fund pursuant to a cooperative | 0011| agreement and the proceeds from the collection of taxes and fees | 0012| required by law to be paid into the state road fund, shall not, | 0013| without additional authorization of the state legislature, exceed | 0014| [one hundred fifty million dollars ($150,000,000)] at any given | 0015| time, subject to the [following] provisions of Subsection C of | 0016| this section, the following amounts: | 0017| (1) prior to July 1, 1998, three hundred million | 0018| dollars ($300,000,000); | 0019| (2) from July 1, 1998 through June 30, 1999, | 0020| four hundred million dollars ($400,000,000); and | 0021| (3) after June 30, 1999, one billion dollars | 0022| ($1,000,000,000). | 0023| C. The total aggregate outstanding principal amount of | 0024| bonds authorized pursuant to Subsection B of this section shall be | 0025| subject to the following provisions: | 0001| (1) the total aggregate outstanding principal | 0002| amount of bonds issued for state highway projects that are | 0003| required for the waste isolation pilot project and are eligible | 0004| for federal reimbursement or payment as authorized by federal | 0005| legislation shall not exceed one hundred million dollars | 0006| ($100,000,000); [and] | 0007| (2) the total aggregate outstanding principal | 0008| amount of bonds issued for state highway projects, other than | 0009| state highway projects that are required for the waste isolation | 0010| pilot project, and are eligible for federal reimbursement or | 0011| payment as authorized by federal legislation shall not exceed: | 0012| (a) prior to January 1, 1997, fifty million | 0013| dollars ($50,000,000); | 0014| (b) from January 1, 1997 to July 1, 1998, | 0015| two hundred million dollars ($200,000,000); | 0016| (c) from July 1, 1998 through June 30, | 0017| 1999, three hundred million dollars ($300,000,000); and | 0018| (d) after June 30, 1999, nine hundred | 0019| million dollars ($900,000,000); and | 0020| (3) the proceeds from the sale of the bonds | 0021| after January 1, 1997 pursuant to Subparagraphs (b) through (d) of | 0022| Paragraph (2) of this subsection shall be used for planning, | 0023| designing, engineering, constructing and acquiring rights of way | 0024| for the following projects: | 0025| (a) the reconstruction of the interstate 40 | 0001| and interstate 25 interchange in Albuquerque; | 0002| (b) the limited-access construction and | 0003| necessary interchanges for United States highway 70 from Las | 0004| Cruces east to White Sands missile range road; | 0005| (c) the four-lane construction of United | 0006| States highway 70; | 0007| (d) construction of the Santa Fe relief | 0008| route and required interchanges; | 0009| (e) the four-lane construction and | 0010| improvement of state highway 44 from Bernalillo to Bloomfield; | 0011| (f) the four-lane construction of United | 0012| States highway 285 from Clines Corners to Carlsbad; | 0013| (g) construction of a new east/west | 0014| connecting route from state road 47 to interstate 25 south of Los | 0015| Lunas; | 0016| (h) improvement of United States highway 84 | 0017| and 285 from Santa Fe to Pojoaque; | 0018| (i) construction of the Silver City relief | 0019| route; | 0020| (j) construction of the Alamogordo relief | 0021| route; and | 0022| (k) construction of the Albuquerque | 0023| northwest relief route. | 0024| D. Included in the total aggregate of outstanding | 0025| principal amount of bonds authorized for issuance after January 1, | 0001| 1997 by the state highway commission for state highway projects in | 0002| Paragraph (3) of Subsection C of this section is authorization for | 0003| the state highway commission to issue an amount of bonds that the | 0004| commission, subject to the provisions of this section, determines | 0005| can be serviced with an amount approximately equal to the net | 0006| receipts attributable to two cents ($.02) of the gasoline tax | 0007| distributed by law into the state road fund. | 0008| [C.] E. The state highway commission may issue bonds | 0009| to refund other bonds issued pursuant to this section by exchange | 0010| or current or advance refunding; provided that bonds issued after | 0011| January 1, 1997 pursuant to Subparagraphs (b) through (d) of | 0012| Paragraph (2) of Subsection C and to Subsection D of this section | 0013| shall have a maturity of no more than ten years from the date of | 0014| issuance. | 0015| [D.] F. Each series of bonds shall have a maturity of | 0016| no more than twenty-five years from the date of issuance. The | 0017| state highway commission shall determine all other terms, | 0018| covenants and conditions of the bonds; provided that the bonds | 0019| shall not be issued pursuant to this section unless the state | 0020| board of finance approves the issuance of the bonds and the | 0021| principal amount of and interest rate or maximum net effective | 0022| interest rate on the bonds. | 0023| [E.] G. The bonds shall be executed with the manual or | 0024| facsimile signatures of the chairman of the state highway | 0025| commission, countersigned by the state treasurer and attested to | 0001| by the secretary of the state highway commission, with the seal of | 0002| the state highway commission imprinted or otherwise affixed to the | 0003| bonds. | 0004| [F.] H. Proceeds of the bonds may be used to pay | 0005| expenses incurred in the preparation, issuance and sale of the | 0006| bonds and, together with the earnings on the proceeds of the | 0007| bonds, may be used to pay rebate, penalty, interest and other | 0008| obligations relating to the bonds and the proceeds of the bonds | 0009| under the Internal Revenue Code of 1986, as amended. | 0010| [G.] I. The bonds may be sold at public or private | 0011| sale. If sold at public sale, a notice of the time and place of | 0012| sale shall be published in a newspaper of general circulation in | 0013| the state, and in any other newspaper determined in the resolution | 0014| authorizing the issuance of the bonds, once each week for two | 0015| consecutive weeks prior to the date of sale. The bonds may be | 0016| purchased by the state treasurer or state investment officer. | 0017| [H.] J. This section is full authority for the | 0018| issuance and sale of the bonds, and the bonds shall not be invalid | 0019| for any irregularity or defect in the proceedings for their | 0020| issuance and sale and shall be incontestable in the hands of bona | 0021| fide purchasers or holders of the bond for value. | 0022| [I.] K. The bonds shall be legal investments for any | 0023| person or board charged with the investment of public funds and | 0024| may be accepted as security for any deposit of public money and, | 0025| with the interest thereon, are exempt from taxation by the state | 0001| and any political subdivision or agency of the state. | 0002| L. Any law authorizing the imposition or distribution | 0003| of taxes or fees paid into the state road fund or that affects | 0004| those taxes and fees shall not be amended or repealed or otherwise | 0005| directly or indirectly modified so as to impair any outstanding | 0006| bonds secured by a pledge of revenues from those taxes and fees | 0007| paid into the state road fund, unless the bonds have been | 0008| discharged in full or provisions have been made for a full | 0009| discharge. In addition, while any bonds issued by the state | 0010| highway commission pursuant to the provisions of this section | 0011| remain outstanding, the powers or duties of the commission shall | 0012| not be diminished or impaired in any manner that will affect | 0013| adversely the interests and rights of the holder of such bonds. | 0014| M. Bonds issued pursuant to this section shall be paid | 0015| solely from federal funds not otherwise obligated, taxes and fees | 0016| and county and municipal contributions deposited into the state | 0017| road fund and shall not constitute a general obligation of the | 0018| state." | 0019| Section 12. Section 67-3-65 NMSA 1978 (being Laws 1973, | 0020| Chapter 145, Section 1, as amended) is amended to read: | 0021| "67-3-65. STATE ROAD FUND CREATED.-- | 0022| A. The "state road fund" is created within the state | 0023| treasury to which shall be credited all receipts authorized by law | 0024| to be paid into it. No income earned on the fund shall be | 0025| transferred to another fund. For the 1999 and subsequent fiscal | 0001| years, money in the state road fund after payment of the | 0002| administrative fee pursuant to Subsection B of this section shall | 0003| be used solely for highway and transportation programs and | 0004| purposes administered by the state highway and transportation | 0005| department. | 0006| B. For July 1998 and subsequent months, to defray the | 0007| costs of administering the collection of taxes and fees that | 0008| constitute the state road fund, an administrative fee of three | 0009| percent is imposed on revenues deposited in the state road fund. | 0010| The administrative fee shall be imposed on all revenues deposited | 0011| each month in the state road fund other than federal funds, bond | 0012| proceeds and county and municipal contributions pursuant to a | 0013| cooperative agreement. The department shall transmit the fee to | 0014| the state treasurer for deposit in the general fund no later than | 0015| the tenth day of the month following the month for which the fee | 0016| was calculated." | 0017| Section 13. REPEAL.--That version of Section 7-13-3 NMSA | 0018| 1978 (being Laws 1995, Chapter 6, Section 11) that is to become | 0019| effective July 1, 2003 is repealed. | 0020| Section 14. EFFECTIVE DATE.-- | 0021| A. The effective date of the provisions of Sections 2 | 0022| through 8 of this act is August 1, 1997. | 0023| B. The effective date of the provisions of Sections 9 | 0024| through 13 of this act is July 1, 1997. | 0025|  |