0001|            HOUSE TRANSPORTATION COMMITTEE SUBSTITUTE FOR
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0002|                  HOUSE BILLS 179, 147, 286 and 344
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0003|     43rd legislature - STATE OF NEW MEXICO - second session, 1998
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0004|                                   
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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|     
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0011|                                AN ACT
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0012|     RELATING TO FINANCING OF HIGHWAY PROJECTS; INCREASING THE
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0013|     BONDING AUTHORITY OF THE STATE HIGHWAY COMMISSION FOR CERTAIN
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0014|     HIGHWAY PROJECTS; CHANGING THE DISTRIBUTION OF MOTOR VEHICLE
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0015|     EXCISE TAX REVENUES; CREATING THE LOCAL ROAD PROJECTS FUND;
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0016|     LIMITING THE USE OF STATE ROAD FUND REVENUES; AMENDING AND
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0017|     ENACTING SECTIONS OF THE NMSA 1978; MAKING AN APPROPRIATION.
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0018|     
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0019|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0020|          Section 1.  [NEW MATERIAL] LEGISLATIVE FINDINGS--
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0021|     PURPOSE.--
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0022|               A.  The legislature finds that there is high
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0023|     unemployment and a lack of jobs in many areas of the state. 
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0024|     Further, the current effort by the federal government and the
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0025|     state to reduce the number of individuals in need of welfare
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<center>- 1 -</center>0001|     makes it imperative to create not only more jobs, but good
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0002|     jobs.  Finally, the legislature finds that highway
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0003|     construction projects can provide those jobs in many areas of
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0004|     the state and at the same time make urgently needed road
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0005|     improvements that will enhance and support economic
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0006|     development efforts and purposes.
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0007|               B.  It is the purpose of this act to raise revenues
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0008|     for the most urgent highway projects throughout the state, to
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0009|     provide good jobs for New Mexicans in many areas of the state,
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0010|     to ensure the use of road revenues for highway projects and to
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0011|     enhance and meet economic development purposes and needs
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0012|     throughout the state.
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0013|          Section 2.  A new section of Chapter 67, Article 3 NMSA
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0014|     1978 is enacted to read:  
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0015|          "[NEW MATERIAL] LOCAL ROAD PROJECTS FUND CREATED--
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0016|     PURPOSE.--The "local road projects fund" is created in the
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0017|     state treasury and shall be administered by the state highway
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0018|     and transportation department.  The fund shall consist of
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0019|     motor vehicle excise tax revenues distributed to the fund and
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0020|     any other money deposited in or transferred, distributed or
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0021|     otherwise appropriated to the fund.  Money in the fund may be
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0022|     appropriated by the legislature for local municipal and county
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0023|     road projects.  Balances in the fund at the end of any fiscal
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0024|     year shall remain in the fund and be available for
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0025|     appropriation for local road projects in subsequent fiscal
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<center>- 2 -</center>0001|     years."
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0002|          Section 3.  Section 7-14-10 NMSA 1978 (being Laws 1988,
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0003|     Chapter 73, Section 20, as amended) is amended to read:
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0004|          "7-14-10.  DISTRIBUTION OF PROCEEDS.--The receipts from the
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0005|     tax and any associated interest and penalties shall be deposited
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0006|     in the "motor vehicle suspense fund", hereby created in the state
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0007|     treasury.  As of the end of each month, the net receipts
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0008|     attributable to the tax and associated penalties and interest
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0009|     shall be distributed [to the general fund] as follows:
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0010|               A.  prior to July 1, 1999, to the general fund;
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0011|               B.  from July 1, 1999 through June 30, 2000, two
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0012|     hundred thousand dollars ($200,000) to the local road projects
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0013|     fund and of the remainder, five-sixths to the general fund and
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0014|     one-sixth to the state road fund;
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0015|               C.  from July 1, 2000 through June 30, 2001, three
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0016|     hundred fifty thousand dollars ($350,000) to the local road
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0017|     projects fund and of the remainder, two-thirds to the general
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0018|     fund and one-third to the state road fund;
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0019|               D.  from July 1, 2001 through June 30, 2002, five
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0020|     hundred thousand dollars ($500,000) to the local road projects
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0021|     fund and of the remainder, one-half to the general fund and one-
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0022|     half to the state road fund;
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0023|               E.  from July 1, 2002 through June 30, 2004, six
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0024|     hundred fifty thousand dollars ($650,000) to the local road
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0025|     projects fund and of the remainder, one-third to the general fund
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<center>- 3 -</center>0001|     and two-thirds to the state road fund;
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0002|               F.  from July 1, 2004 through June 30, 2005, seven
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0003|     hundred fifty thousand dollars ($750,000) to the local road
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0004|     projects fund and of the remainder, one-sixth to the general fund
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0005|     and five-sixths to the state road fund; and
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0006|               G.  after June 30, 2005, eight hundred thirty-three
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0007|     thousand four hundred dollars ($833,400) to the local road
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0008|     projects fund and the remainder to the state road fund."
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0009|          Section 4.  Section 67-3-59.1 NMSA 1978 (being Laws 1989,
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0010|     Chapter 157, Section 1, as amended) is amended to read:
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0011|          "67-3-59.1.  STATE HIGHWAY DEBENTURES--ISSUANCE--LIMITS--
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0012|     APPROVAL--COUPONS.--
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0013|               A.  In order to provide funds to finance state highway
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0014|     projects, including state highway projects that are required for
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0015|     the waste isolation pilot project and are eligible for federal
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0016|     reimbursement or payment as authorized by federal legislation,
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0017|     the state highway commission is authorized to issue bonds from
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0018|     time to time, payable from:
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0019|                    (1)  federal funds not otherwise obligated that
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0020|     are paid into the state road fund;
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0021|                    (2)  contributions of a county or municipality,
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0022|     if any, to the expense of a project as determined by a
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0023|     cooperative agreement made pursuant to Section 67-3-28 NMSA 1978
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0024|     and deposited in the state road fund; and
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0025|                    (3)  the proceeds of the collection of [gasoline
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<center>- 4 -</center>0001|     excise] taxes and [motor vehicle registration] fees that are
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0002|     required by law to be paid into the state road fund and not
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0003|     otherwise pledged solely to the payment of outstanding bonds and
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0004|     debentures.
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0005|               B.  The total aggregate outstanding principal amount
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0006|     of bonds issued from time to time pursuant to this section,
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0007|     secured by or payable from [the gasoline excise taxes and motor
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0008|     vehicle registration fees] federal funds not otherwise obligated
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0009|     that are paid into the state road fund, county or municipal
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0010|     contributions deposited in the state road fund pursuant to a
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0011|     cooperative agreement and the proceeds from the collection of
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0012|     taxes and fees required by law to be paid into the state road
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0013|     fund shall not, without additional authorization of the state
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0014|     legislature, exceed [one hundred fifty million dollars
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0015|     ($150,000,000)] at any given time, subject to the [following]
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0016|     provisions of Subsection C of this section, the following
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0017|     amounts:
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0018|                    (1)  prior to July 1, 1998, one hundred fifty
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0019|     million dollars ($150,000,000);
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0020|                    (2)  from July 1, 1998 through June 30, 1999,
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0021|     five hundred million dollars ($500,000,000); and
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0022|                    (3)  after June 30, 1999, one billion three
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0023|     hundred million dollars ($1,300,000,000).
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0024|               C.  The total aggregate outstanding principal amount
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0025|     of bonds authorized pursuant to Subsection B of this section
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<center>- 5 -</center>0001|     shall be subject to the following provisions:
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0002|                    (1)  the total aggregate outstanding principal
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0003|     amount of bonds issued for state highway projects that are
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0004|     required for the waste isolation pilot project and are eligible
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0005|     for federal reimbursement or payment as authorized by federal
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0006|     legislation shall not exceed [one hundred million dollars
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0007|     ($100,000,000); and] two hundred million dollars ($200,000,000);
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0008|                    (2)  the total aggregate outstanding principal
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0009|     amount of bonds issued for state highway projects other than
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0010|     state highway projects that are required for the waste isolation
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0011|     pilot project and are eligible for federal reimbursement or
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0012|     payment as authorized by federal legislation shall not exceed:
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0013|                         (a)  prior to July 1, 1998, fifty million
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0014|     dollars ($50,000,000);
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0015|                         (b)  from July 1, 1998 through June 30,
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0016|     1999, three hundred million dollars ($300,000,000); and
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0017|                         (c)  after June 30, 1999, one billion one
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0018|     hundred million dollars ($1,100,000,000); and
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0019|                    (3)  the proceeds from the sale of the bonds
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0020|     after July 1, 1998 using the additional authority added in
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0021|     Subparagraphs (b) and (c) of Paragraph (2) of this subsection
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0022|     shall be used for planning, designing, engineering and
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0023|     constructing and for acquiring rights of way for the following
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0024|     projects:
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0025|                         (a)  the four-lane construction and
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<center>- 6 -</center>0001|     improvement of state highway 44 from Bernalillo to Bloomfield;
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0002|                         (b)  the reconstruction of the interstate
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0003|     40 and interstate 25 interchange in Albuquerque;
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0004|                         (c)  the limited-access construction and
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0005|     necessary interchanges for United States highway 70 from Las
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0006|     Cruces east to White Sands Missile Range road;
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0007|                         (d)  construction of United States highway
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0008|     84/285 from Santa Fe to Pojoaque;
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0009|                         (e)  construction of the Santa Fe relief
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0010|     route and required interchanges;
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0011|                         (f)  four-lane construction of United
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0012|     States highway 70;
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0013|                         (g)  four-lane construction of United
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0014|     States highway 550 from Aztec to Colorado;
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0015|                         (h)  four-lane construction of United
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0016|     States highway 285 from Clines Corners to Carlsbad;
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0017|                         (i)  construction of a new east-west
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0018|     connecting route from state road 47 to interstate 25 south of Los
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0019|     Lunas;
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0020|                         (j)  construction of the Silver City relief
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0021|     route;
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0022|                         (k)  construction of the Alamogordo relief
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0023|     route;
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0024|                         (l)  construction of the Albuquerque
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0025|     northwest relief route;
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<center>- 7 -</center>0001|                         (m)  improvement of United States highway
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0002|     54;
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0003|                         (n)  improvement of United States highway
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0004|     666;
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0005|                         (o)  improvement of United States highway
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0006|     84 from Espanola through Hernandez;
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0007|                         (p)  four-lane construction of United
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0008|     States highway 285 from interstate 25 to Lamy;
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0009|                         (q)  four-lane construction of Sunland Park
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0010|     extension;
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0011|                         (r)  construction of the Taos relief route;
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0012|                         (s)  improvement of state highway 128 from
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0013|     the Texas state line to Carlsbad;
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0014|                         (t)  construction of the Albuquerque
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0015|     southwest relief route;
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0016|                         (u)  improvement of United States highway
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0017|     180 from Silver City to Deming;
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0018|                         (v)  four-lane construction of United
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0019|     States highway 62/180 from Carlsbad to Whites City; and
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0020|                         (w)  improvement of state highway 18
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0021|     between Eunice and Jal.
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0022|               [C.] D.  The state highway commission may issue bonds
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0023|     to refund other bonds issued pursuant to this section by exchange
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0024|     or current or advance refunding.
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0025|               [D.] E.  Each series of bonds shall have a maturity of
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<center>- 8 -</center>0001|     no more than twenty-five years from the date of issuance;
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0002|     provided that bonds issued after July 1, 1998 pursuant to
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0003|     Subparagraphs (b) and (c) of Paragraph (2) of Subsection C of
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0004|     this section shall have a maturity of no more than ten years from
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0005|     the date of issuance.  The state highway commission shall
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0006|     determine all other terms, covenants and conditions of the bonds;
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0007|     provided that the bonds shall not be issued pursuant to this
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0008|     section unless the state board of finance approves the issuance
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0009|     of the bonds and the principal amount of and interest rate or
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0010|     maximum net effective interest rate on the bonds.
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0011|               [E.] F.  The bonds shall be executed with the manual
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0012|     or facsimile [signatures] signature of the chairman of the state
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0013|     highway commission, countersigned by the state treasurer and
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0014|     attested to by the secretary of the state highway commission,
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0015|     with the seal of the state highway commission imprinted or
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0016|     otherwise affixed to the bonds.
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0017|               [F.] G.  Proceeds of the bonds may be used to pay
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0018|     expenses incurred in the preparation, issuance and sale of the
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0019|     bonds and, together with the earnings on the proceeds of the
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0020|     bonds, may be used to pay rebate, penalty, interest and other
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0021|     obligations relating to the bonds and the proceeds of the bonds
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0022|     under the Internal Revenue Code of 1986, as amended.
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0023|               [G.] H.  The bonds may be sold at public or private
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0024|     sale or through the New Mexico finance authority.  If sold at
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0025|     public sale, a notice of the time and place of sale shall be
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<center>- 9 -</center>0001|     published in a newspaper of general circulation in the state, and
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0002|     in any other newspaper determined in the resolution authorizing
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0003|     the issuance of the bonds, once each week for two consecutive
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0004|     weeks prior to the date of sale.  The bonds may be purchased by
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0005|     the state treasurer or state investment officer.
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0006|               [H.] I.  This section is full authority for the
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0007|     issuance and sale of the bonds, and the bonds shall not be
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0008|     invalid for any irregularity or defect in the proceedings for
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0009|     their issuance and sale and shall be incontestable in the hands
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0010|     of bona fide purchasers or holders of the bond for value.
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0011|               [I.] J.  The bonds shall be legal investments for any
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0012|     person or board charged with the investment of public funds and
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0013|     may be accepted as security for any deposit of public money and,
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0014|     with the interest thereon, are exempt from taxation by the state
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0015|     and any political subdivision or agency of the state.
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0016|               K.  Any law authorizing the imposition or distribution
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0017|     of taxes or fees paid into the state road fund or that affects
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0018|     those taxes and fees shall not be amended or repealed or
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0019|     otherwise directly or indirectly modified so as to impair any
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0020|     outstanding bonds secured by a pledge of revenues from those
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0021|     taxes and fees paid into the state road fund, unless the bonds
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0022|     have been discharged in full or provisions have been made for a
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0023|     full discharge.  In addition, while any bonds issued by the state
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0024|     highway commission pursuant to the provisions of this section
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0025|     remain outstanding, the powers or duties of the commission shall
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<center>- 10 -</center>0001|     not be diminished or impaired in any manner that will affect
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0002|     adversely the interests and rights of the holder of such bonds.
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0003|               L.  Bonds issued pursuant to this section shall be
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0004|     paid solely from federal funds not otherwise obligated, taxes and
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0005|     fees and county and municipal contributions deposited into the
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0006|     state road fund and shall not constitute a general obligation of
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0007|     the state."
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0008|          Section 5.  Section 67-3-65 NMSA 1978 (being Laws 1973,
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0009|     Chapter 145, Section 1, as amended) is amended to read:
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0010|          "67-3-65.  STATE ROAD FUND CREATED--ADMINISTRATIVE FEE.--
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0011|               A.  The "state road fund" is created within the state
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0012|     treasury to which shall be credited all receipts authorized by
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0013|     law to be paid into it.  No income earned on the fund shall be
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0014|     transferred to another fund.  For fiscal year 2000 and subsequent
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0015|     fiscal years, money in the state road fund after payment of the
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0016|     administrative fee pursuant to Subsection B of this section shall
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0017|     be used solely for highway and transportation programs and
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0018|     purposes administered by the state highway and transportation
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0019|     department.
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0020|               B.  For July 1999 and subsequent months, to defray the
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0021|     costs of administering the collection of taxes and fees that
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0022|     constitute the state road fund, an administrative fee of three
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0023|     percent is imposed on revenues deposited in the state road fund.
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0024|     The administrative fee shall be imposed on all revenues deposited
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0025|     each month in the state road fund other than federal funds, bond
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<center>- 11 -</center>0001|     proceeds and county and municipal contributions pursuant to a
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0002|     cooperative agreement.  The department shall transmit the fee to
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0003|     the state treasurer for deposit in the general fund no later than
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0004|     the tenth day of the month following the month for which the fee
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0005|     was calculated."
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0006|          Section 6.  EFFECTIVE DATE.--The effective date of the
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0007|     provisions of this act is July 1, 1998.
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0008|                               
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