0001| HOUSE BILL 344
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0002| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003| INTRODUCED BY
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0004| J. "ANDY" KISSNER
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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 FINANCING OF HIGHWAY PROJECTS; AUTHORIZING THE
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0012| GOVERNOR TO IMPOSE A HIGHWAY BONDING GASOLINE TAX UNDER
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0013| CERTAIN CONDITIONS; INCREASING THE BONDING AUTHORITY OF THE
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0014| STATE HIGHWAY COMMISSION AND AUTHORIZING ISSUANCE OF STATE
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0015| HIGHWAY BONDS FOR FIVE CONSTRUCTION PROJECTS; LIMITING THE USE
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0016| OF STATE ROAD REVENUES; AMENDING AND ENACTING SECTIONS OF THE
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0017| NMSA 1978.
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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. Section 7-1-6.7 NMSA 1978 (being Laws 1994,
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0021| Chapter 5, Section 2, as amended by Laws 1995, Chapter 6,
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0022| Section 1 and also by Laws 1995, Chapter 36, Section 1) is
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0023| amended to read:
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0024| "7-1-6.7. DISTRIBUTIONS--STATE AVIATION FUND.--
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0025| A. A distribution pursuant to Section 7-1-6.1 NMSA
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0001| 1978 shall be made to the state aviation fund in an amount
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0002| equal to three and fifty-nine hundredths percent of the gross
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0003| receipts attributable to the sale of fuel specially prepared
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0004| and sold for use in turboprop or jet-type engines as
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0005| determined by the department.
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0006| B. A distribution pursuant to Section 7-1-6.1 NMSA
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0007| 1978 shall be made to the state aviation fund in an amount
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0008| equal to twenty-six hundredths of one percent of [gasoline
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taxes] the net receipts, exclusive of penalties and
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0010| interest, [collected pursuant to the Gasoline Tax Act]
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0011| attributable to the gasoline tax."
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0012| Section 2. Section 7-1-6.9 NMSA 1978 (being Laws 1991,
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0013| Chapter 9, Section 11, as amended) is amended to read:
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0014| "7-1-6.9. DISTRIBUTION OF GASOLINE TAXES TO
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0015| MUNICIPALITIES AND COUNTIES.--
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0016| A. A distribution pursuant to Section 7-1-6.1 NMSA
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0017| 1978 shall be made in an amount equal to ten and thirty-eight
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0018| hundredths percent of the net receipts [attributable to the
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taxes], exclusive of penalties and interest, [imposed by the
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Gasoline Tax Act] attributable to the gasoline tax.
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0021| B. The amount determined in Subsection A of this
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0022| section shall be distributed as follows:
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0023| (1) ninety percent of the amount shall be
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0024| paid to the treasurers of municipalities and H class counties
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0025| in the proportion that the taxable motor fuel sales in each of
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0001| the municipalities and H class counties bears to the aggregate
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0002| taxable motor fuel sales in all of these municipalities and H
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0003| class counties; and
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0004| (2) ten percent of the amount shall be paid
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0005| to the treasurers of the counties, including H class counties,
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0006| in the proportion that the taxable motor fuel sales outside of
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0007| incorporated municipalities in each of the counties bears to
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0008| the aggregate taxable motor fuel sales outside of incorporated
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0009| municipalities in all of the counties.
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0010| C. This distribution shall be paid into the
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0011| municipal treasury or county general fund for general purposes
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0012| or for any special purposes designated by the governing body
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0013| of the municipality or county. Any municipality or H class
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0014| county that has created or that creates a "street improvement
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0015| fund" to which gasoline tax revenues or distributions are
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0016| irrevocably pledged under Sections 3-34-1 through 3-34-4 NMSA
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0017| 1978 or that has pledged all or a portion of gasoline tax
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0018| revenues or distributions to the payment of bonds shall
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0019| receive its proportion of the distribution of revenues under
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0020| this section impressed with and subject to these pledges."
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0021| Section 3. Section 7-13-3.1 NMSA 1978 (being Laws 1979,
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0022| Chapter 166, Section 7, as amended) is amended to read:
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0023| "7-13-3.1. GASOLINE INVENTORY TAX--IMPOSITION OF TAX--
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0024| DATE PAYMENT OF TAX DUE.--
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0025| A. A gasoline inventory tax is imposed measured by
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0001| the quantity of gallons of gasoline in the possession of a
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0002| distributor or wholesaler on the day [in] on which an
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0003| increase in the excise tax imposed by Section 7-13-3 NMSA 1978
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0004| or the initial imposition of or increase in the excise tax
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0005| imposed by Section 7-13-3.6 NMSA 1978 is effective. The
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0006| taxable event is the existence of an inventory in the
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0007| possession of a distributor or wholesaler on the day prior to
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0008| the day [in] on which an increase in the excise tax
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0009| imposed by Section 7-13-3 NMSA 1978 or the initial imposition
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0010| of or increase in the excise tax imposed by Section 7-13-3.6
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0011| NMSA 1978 is effective. The rate of the gasoline inventory
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0012| tax to apply on each gallon of gasoline held in inventory by a
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0013| distributor or wholesaler, as provided in Section 7-13-3.2
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0014| NMSA 1978, shall be the difference between the gasoline
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0015| [excise] tax rate or the highway bonding gasoline tax
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0016| rate, whichever is applicable, imposed on the day prior to the
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0017| day [in] on which the [gasoline excise] applicable tax
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0018| is increased or initially imposed subtracted from the
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0019| [gasoline excise] applicable tax rate imposed on the day
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0020| that the [gasoline excise] applicable tax rate increase
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0021| or imposition is effective, expressed in cents per gallon.
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0022| B. The gasoline inventory tax is to be paid to the
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0023| department on or before the twenty-fifth day of the month
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0024| following the month in which the taxable event occurs."
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0025| Section 4. Section 7-13-3.2 NMSA 1978 (being Laws 1979,
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0001| Chapter 166, Section 8, as amended) is amended to read:
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0002| "7-13-3.2. GASOLINE INVENTORIES.--
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0003| A. On the day prior to the day that the excise tax
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0004| imposed by Section 7-13-3 NMSA 1978 is increased or the
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0005| excise tax imposed by Section 7-13-3.6 NMSA 1978 is initially
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0006| imposed or increased, each distributor, wholesaler and
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0007| retailer shall take inventory of the gallons of gasoline on
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0008| hand.
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0009| B. Distributors and wholesalers shall report total
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0010| gallons of gasoline in inventory on the day prior to the day
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0011| that an increase in the gasoline tax rate or the initial
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0012| imposition or an increase in the highway bonding gasoline tax
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0013| rate is effective and pay any tax due imposed by Section
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0014| 7-13-3.1 NMSA 1978.
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0015| C. Retailers shall maintain a record of the total
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0016| gallons of gasoline in inventory on the day prior to the day
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0017| that an increase in the gasoline tax rate or the initial
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0018| imposition or an increase in the highway bonding gasoline tax
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0019| rate is effective and shall not increase the price of the
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0020| gasoline sold until the inventory is disposed of in the
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0021| ordinary course of business."
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0022| Section 5. A new section of the Gasoline Tax Act,
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0023| Section 7-13-3.6 NMSA 1978, is enacted to read:
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0024| "7-13-3.6. [NEW MATERIAL] IMPOSITION AND RATE OF
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0025| HIGHWAY BONDING GASOLINE TAX--LIMITATION.--
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0001| A. The governor is authorized, subject to the
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0002| limitations of this section, to impose for the privilege of
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0003| receiving gasoline in this state an excise tax at a rate not
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0004| to exceed five cents ($.05) per gallon of gasoline received in
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0005| New Mexico. The tax may be imposed in any number of one-cent
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0006| ($.01) increments and may be referred to as the "highway
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0007| bonding gasoline tax". The proceeds from the tax shall be
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0008| used only to secure or pay state highway bonds issued pursuant
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0009| to Paragraph (3) of Subsection C of Section 67-3-59.1 NMSA
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0010| 1978.
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0011| B. The governor may impose any increment of the
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0012| tax authorized by Subsection A of this section only upon a
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0013| finding that the tax increase is necessary because there are
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0014| insufficient revenues available in the state road fund to
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0015| pledge for the issuance of the amounts of state highway bonds
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0016| that:
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0017| (1) are authorized pursuant to Paragraph (3)
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0018| of Subsection C of Section 67-3-59.1 NMSA 1978; and
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0019| (2) are needed to fund statewide road
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0020| improvements that the state highway commission certifies are
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0021| necessary for purposes of safety, commerce and economic
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0022| development.
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0023| C. The tax authorized to be imposed pursuant to
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0024| this section shall become effective only upon July 1 or
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0025| January 1, whichever date occurs first, after the expiration
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0001| of at least three months from the date the governor issues the
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0002| finding pursuant to Subsection B of this section."
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0003| Section 6. Section 7-13-5 NMSA 1978 (being Laws 1971,
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0004| Chapter 207, Section 5, as amended) is amended to read:
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0005| "7-13-5. TAX RETURNS--PAYMENT OF TAX.--Distributors
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0006| shall file gasoline tax and highway bonding gasoline tax
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0007| returns in form and content as prescribed by the secretary on
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0008| or before the twenty-fifth day of the month following the
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0009| month in which gasoline is received in New Mexico. Such
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0010| returns shall be accompanied by payment of the amount of
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0011| gasoline tax or highway bonding gasoline tax due."
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0012| Section 7. Section 7-13-13 NMSA 1978 (being Laws 1971,
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0013| Chapter 207, Section 12, as amended) is amended to read:
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0014| "7-13-13. PERMIT TO PURCHASE DYED GASOLINE AND APPLY FOR
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0015| REFUND OF [GASOLINE] TAX ON GASOLINE NOT USED IN MOTOR BOATS
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0016| OR IN MOTOR VEHICLES OPERATED ON HIGHWAYS OF THIS STATE.--
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0017| A. Each person who wishes to purchase gasoline
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0018| dyed in accordance with the provisions of Section 7-13-15 NMSA
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0019| 1978 and to claim a refund of gasoline tax and highway
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0020| bonding gasoline tax paid on such gasoline under the
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0021| provisions of Section 7-13-14 NMSA 1978 shall apply for and
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0022| obtain a permit to do so from the department. The application
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0023| for the permit shall be in form and content as prescribed by
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0024| the department.
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0025| B. The secretary may, upon notice and after
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0001| hearing, suspend the gasoline tax and highway bonding
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0002| gasoline tax refund permit of any person who makes any false
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0003| statement on an application for a permit or on a claim for
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0004| refund made under Section 7-13-14 NMSA 1978 who uses gasoline
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0005| dyed in accordance with Section 7-13-15 NMSA 1978 in a motor
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0006| boat or in a vehicle licensed to operate on the highways of
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0007| this state or who violates any other provision of the Gasoline
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0008| Tax Act. Such suspension may be, in the discretion of the
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0009| secretary, for a period of up to one year."
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0010| Section 8. Section 7-13-14 NMSA 1978 (being Laws 1971,
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0011| Chapter 207, Section 13, as amended) is amended to read:
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0012| "7-13-14. CLAIM FOR REFUND OF [GASOLINE] TAX PAID ON
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0013| GASOLINE NOT USED IN MOTOR BOATS OR IN MOTOR VEHICLES LICENSED
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0014| TO OPERATE ON HIGHWAYS OF THIS STATE.--Upon submission of
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0015| proof satisfactory to the department, the department shall
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0016| allow a claim for refund of gasoline tax and highway bonding
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0017| gasoline tax paid on dyed gasoline purchased and used within
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0018| six months prior to the filing of the claim by holders of
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0019| permits issued under Section 7-13-13 NMSA 1978. The
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0020| individual purchases of such gasoline, other than that to be
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0021| used as aviation fuel, must have been made in quantities of
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0022| fifty gallons or more. Purchasers of aviation fuel may
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0023| accumulate invoices to reach the minimum required for filing a
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0024| claim for refund. No claim for refund may be presented on
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0025| less than one hundred gallons so purchased. The secretary
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0001| may, by regulation, prescribe the documents necessary to
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0002| support a claim for refund and the invoice and sales procedure
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0003| to be followed by sellers and purchasers of gasoline not
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0004| intended to be used in motor boats or in motor vehicles
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0005| licensed to operate on the highways of this state by the motor
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0006| vehicle division of the department."
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0007| Section 9. Section 67-3-59.1 NMSA 1978 (being Laws 1989,
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0008| Chapter 157, Section 1, as amended) is amended to read:
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0009| "67-3-59.1. STATE HIGHWAY DEBENTURES--ISSUANCE--LIMITS--
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0010| APPROVAL--COUPONS.--
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0011| A. In order to provide funds to finance state
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0012| highway projects, including state highway projects that are
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0013| required for the waste isolation pilot project and are
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0014| eligible for federal reimbursement or payment as authorized
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0015| by federal legislation, the state highway commission is
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0016| authorized to issue bonds from time to time, payable from:
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0017| (1) federal funds not otherwise obligated
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0018| that are paid into the state road fund;
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0019| (2) contributions of a county or
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0020| municipality, if any, to the expense of a project as
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0021| determined by a cooperative agreement made pursuant to Section
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0022| 67-3-28 NMSA 1978 and deposited in the state road fund; and
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0023| (3) the proceeds of the collection of
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0024| [gasoline excise] taxes and [motor vehicle registration]
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0025| fees that are required by law to be paid into the state road
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0001| fund and not otherwise pledged solely to the payment of
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0002| outstanding bonds and debentures.
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0003| B. The total aggregate outstanding principal
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0004| amount of bonds issued from time to time pursuant to this
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0005| section, secured by or payable from [the gasoline excise
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taxes and motor vehicle registration fees] federal funds not
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0007| otherwise obligated that are paid into the state road fund,
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0008| county or municipal contributions deposited in the state road
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0009| fund pursuant to a cooperative agreement and the proceeds from
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0010| the collection of taxes and fees required by law to be paid
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0011| into the state road fund shall not, without additional
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0012| authorization of the state legislature, exceed [one hundred
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fifty million dollars ($150,000,000)] at any given time,
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0014| subject to the [following] provisions of Subsection C of
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0015| this section, the following amounts:
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0016| (1) prior to July 1, 1998, one hundred fifty
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0017| million dollars ($150,000,000);
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0018| (2) from July 1, 1998 through June 30, 1999,
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0019| five hundred million dollars ($500,000,000); and
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0020| (3) after June 30, 1999, one billion one
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0021| hundred million dollars ($1,100,000,000).
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0022| C. The total aggregate outstanding principal
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0023| amount of bonds authorized pursuant to Subsection B of this
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0024| section shall be subject to the following provisions:
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0025| (1) the total aggregate outstanding principal
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0001| amount of bonds issued for state highway projects that are
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0002| required for the waste isolation pilot project and are
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0003| eligible for federal reimbursement or payment as authorized
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0004| by federal legislation shall not exceed [one hundred million
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dollars ($100,000,000); and] two hundred million dollars
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0006| ($200,000,000);
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0007| (2) the total aggregate outstanding principal
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0008| amount of bonds issued for state highway projects other than
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0009| state highway projects that are required for the waste
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0010| isolation pilot project and are eligible for federal
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0011| reimbursement or payment as authorized by federal
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0012| legislation shall not exceed:
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0013| (a) prior to July 1, 1998, fifty
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0014| million 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, nine hundred
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0018| million dollars ($900,000,000); and
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0019| (3) the proceeds from the sale of bonds
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0020| issued after July 1, 1998 pursuant to the additional authority
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0021| added in Subparagraphs (b) and (c) of Paragraph (2) of this
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0022| subsection shall be used for planning, designing, engineering
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0023| and constructing and for acquiring rights of way for the
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0024| following projects:
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0025| (a) the reconstruction of the
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0001| interstate 40 and interstate 25 interchange in Albuquerque;
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0002| (b) the limited-access construction and
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0003| necessary interchanges for United States highway 70 from Las
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0004| Cruces east to White Sands missile range road;
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0005| (c) construction of the Santa Fe relief
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0006| route and required interchanges;
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0007| (d) improvement of United States
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0008| highway 84 and 285 from Santa Fe to Pojoaque; and
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0009| (e) the four-lane construction and
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0010| improvement of state highway 44 from Bernalillo to
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0011| Bloomfield.
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0012| [C.] D. The state highway commission may issue
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0013| bonds to refund other bonds issued pursuant to this section by
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0014| exchange or current or advance refunding.
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0015| [D.] E. Each series of bonds shall have a
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0016| maturity of no more than twenty-five years from the date of
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0017| issuance; provided that bonds issued after July 1, 1998
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0018| pursuant to Subparagraphs (b) and (c) of Paragraph (2) of
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0019| Subsection C of this section shall have a maturity of no more
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0020| than ten years from the date of issuance. The state highway
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0021| commission shall determine all other terms, covenants and
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0022| conditions of the bonds; provided that the bonds shall not be
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0023| issued pursuant to this section unless the state board of
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0024| finance approves the issuance of the bonds and the principal
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0025| amount of and interest rate or maximum net effective interest
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0001| rate on the bonds.
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0002| [E.] F. The bonds shall be executed with the
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0003| manual or facsimile [signatures] signature of the chairman
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0004| of the state highway commission, countersigned by the state
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0005| treasurer and attested to by the secretary of the state
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0006| highway commission, with the seal of the state highway
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0007| commission imprinted or otherwise affixed to the bonds.
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0008| [F.] G. Proceeds of the bonds may be used to
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0009| pay expenses incurred in the preparation, issuance and sale of
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0010| the bonds and, together with the earnings on the proceeds of
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0011| the bonds, may be used to pay rebate, penalty, interest and
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0012| other obligations relating to the bonds and the proceeds of
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0013| the bonds under the Internal Revenue Code of 1986, as amended.
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0014| [G.] H. The bonds may be sold at public or
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0015| private sale or through the New Mexico finance authority.
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0016| If sold at public sale, a notice of the time and place of sale
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0017| shall be published in a newspaper of general circulation in
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0018| the state, and in any other newspaper determined in the
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0019| resolution authorizing the issuance of the bonds, once each
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0020| week for two consecutive weeks prior to the date of sale. The
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0021| bonds may be purchased by the state treasurer or state
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0022| investment officer.
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0023| [H.] I. This section is full authority for the
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0024| issuance and sale of the bonds, and the bonds shall not be
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0025| invalid for any irregularity or defect in the proceedings for
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0001| their issuance and sale and shall be incontestable in the
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0002| hands of bona fide purchasers or holders of the bond for
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0003| value.
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0004| [I.] J. The bonds shall be legal investments
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0005| for any person or board charged with the investment of public
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0006| funds and may be accepted as security for any deposit of
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0007| public money and, with the interest thereon, are exempt from
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0008| taxation by the state and any political subdivision or agency
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0009| of the state.
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0010| K. Any law authorizing the imposition or
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0011| distribution of taxes or fees paid into the state road fund or
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0012| that affects those taxes and fees shall not be amended or
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0013| repealed or otherwise directly or indirectly modified so as to
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0014| impair any outstanding bonds secured by a pledge of revenues
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0015| from those taxes and fees paid into the state road fund,
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0016| unless the bonds have been discharged in full or provisions
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0017| have been made for a full discharge. In addition, while any
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0018| bonds issued by the state highway commission pursuant to the
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0019| provisions of this section remain outstanding, the powers or
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0020| duties of the commission shall not be diminished or impaired
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0021| in any manner that will affect adversely the interests and
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0022| rights of the holder of such bonds.
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0023| L. Bonds issued pursuant to this section shall be
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0024| paid solely from federal funds not otherwise obligated, taxes
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0025| and fees and county and municipal contributions deposited into
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0001| the state road fund and shall not constitute a general
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0002| obligation of the state."
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0003| Section 10. Section 67-3-65 NMSA 1978 (being Laws 1973,
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0004| Chapter 145, Section 1, as amended) is amended to read:
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0005| "67-3-65. STATE ROAD FUND CREATED.--
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0006| A. The "state road fund" is created within the
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0007| state treasury to which shall be credited all receipts
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0008| authorized by law to be paid into it. No income earned on the
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0009| fund shall be transferred to another fund. For fiscal year
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0010| 2000 and subsequent fiscal years, money in the state road fund
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0011| after payment of the administrative fee pursuant to Subsection
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0012| B of this section shall be used solely for highway and
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0013| transportation programs and purposes administered by the state
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0014| highway and transportation department.
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0015| B. For July 1999 and subsequent months, to defray
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0016| the costs of administering the collection of taxes and fees
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0017| that constitute the state road fund, an administrative fee of
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0018| two and one-half percent is imposed on revenues deposited in
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0019| the state road fund. The administrative fee shall be imposed
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0020| on all revenues deposited each month in the state road fund
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0021| other than federal funds, bond proceeds and county and
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0022| municipal contributions pursuant to a cooperative agreement.
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0023| The department shall transmit the fee to the state treasurer
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0024| for deposit in the general fund no later than the tenth day of
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0025| the month following the month for which the fee was
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0001| calculated."
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0002| Section 11. EFFECTIVE DATE.--The effective date of the
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0003| provisions of this act is July 1, 1998.
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0004|
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