HOUSE BILL 315
51st legislature - STATE OF NEW MEXICO - second session, 2014
INTRODUCED BY
Cathrynn N. Brown
AN ACT
RELATING TO HIGHWAYS; CREATING THE HIGHWAY DISTRICT PROJECT FUND; PROVIDING FOR A DISTRIBUTION OF A PORTION OF THE MOTOR VEHICLE EXCISE TAX TO THE HIGHWAY DISTRICT PROJECT FUND; PROVIDING FOR SEVERANCE TAX BONDS FOR HIGHWAY PROJECTS IMPACTED BY ENERGY DEVELOPMENT; TEMPORARILY REDIRECTING CERTAIN LOCAL GOVERNMENTS ROAD FUND MONEY; SETTING REQUIREMENTS FOR THE FUNDING OF HIGHWAY PROJECTS IMPACTED BY ENERGY DEVELOPMENT; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. [NEW MATERIAL] FINDINGS AND PURPOSE--HIGHWAY DISTRICT PROJECT FUND CREATED--APPROPRIATION--USE--
LIMITATION.--
A. The legislature finds that New Mexico, as the third-largest net energy supplier to the nation, is currently in the midst of an oil and gas production boom bringing record earnings to the state and its institutions that depend on those earnings but, at the same time, the increased use of heavy vehicles used in energy production is rapidly deteriorating state and local government highways and roads in those areas of the state where most of the energy production occurs.
B. The purpose of this 2014 act is to provide a fund for use by the department of transportation and local governments dedicated to the maintenance, repair and rehabilitation of those highways and roads used by energy producers and necessary to energy production in New Mexico.
C. The "highway district project fund" is created as a nonreverting fund in the state treasury. The fund consists of money from taxes distributed to the fund and earnings on investment of the fund. Money in the fund shall not be transferred to any other fund. The department of transportation shall administer the fund, and money in the fund is appropriated to the department of transportation for expenditures as provided in this section. Disbursements from the fund shall be by warrant of the secretary of finance and administration on vouchers signed by the secretary of transportation or the secretary of transportation's authorized representative.
D. For the period beginning July 1, 2014 and ending with the receipts collected for June 2019, distributions from the fund shall be expended only in state transportation commission districts 2 and 5, as described in Section 67-3-3 NMSA 1978, for projects on highways and roads that are frequently and consistently used by vehicles involved in the production of oil and gas in the state as certified by the secretary of transportation. Distributions from the fund may be used for cooperative agreements pursuant to Section 67-3-28 NMSA 1978 with local governments within state transportation commission districts 2 and 5.
SECTION 2. Section 7-14-10 NMSA 1978 (being Laws 1988, Chapter 73, Section 20, as amended) is amended to read:
"7-14-10. DISTRIBUTION OF PROCEEDS.--The receipts from the tax and any associated interest and penalties shall be deposited in the "motor vehicle suspense fund", hereby created in the state treasury. As of the end of each month, the net receipts attributable to the tax and associated penalties and interest shall be distributed to the general fund; except that beginning July 1, 2014 and ending with the receipts collected for June 2019, sufficient net receipts attributable to the tax, exclusive of penalties and interest, shall be distributed to the highway district project fund at the end of each month equal to one-sixtieth of the total amount to be distributed so that the aggregate total of the distributions from the motor vehicle suspense fund to the highway district project fund during that time period equals fifty million dollars ($50,000,000)."
SECTION 3. A new section of the Severance Tax Bonding Act is enacted to read:
"[NEW MATERIAL] AUTHORIZATION FOR SEVERANCE TAX BONDS FOR TRANSPORTATION INFRASTRUCTURE IMPACTED BY ENERGY PRODUCTION-- APPROPRIATION OF PROCEEDS.--
A. The state board of finance may issue and sell severance tax bonds in fiscal years 2015 through 2017 in compliance with the Severance Tax Bonding Act in an amount not exceeding a total of thirty million dollars ($30,000,000) when the department of transportation certifies the need for the issuance of the bonds; provided that in each of fiscal years 2015, 2016 and 2017, no more than ten million dollars ($10,000,000) in bonds shall be issued.
B. The state board of finance shall schedule the issuance and sale of the bonds in the most expeditious and economical manner possible upon a finding by the board that, based upon a certification from the secretary of transportation, the proceeds of the bonds are needed and that the projects can proceed to contract within a reasonable time. The state board of finance shall further take the appropriate steps necessary to comply with the federal Internal Revenue Code of 1986, as amended. The state board of finance may issue and sell the bonds in the same manner as other severance tax bonds in an amount not to exceed the authorized amount provided for in this section.
C. The proceeds from the sale of the bonds are appropriated as follows:
(1) fifty percent of the proceeds of the bonds issued in each fiscal year are appropriated to the local government transportation fund for distribution as approved by the department of transportation pursuant to Section 6-21-6.12 NMSA 1978 and authorization is specifically given for projects, as certified by the secretary of transportation, that maintain or rehabilitate local government highways and roads impacted by energy development in state transportation commission districts 2 and 5 as identified in Section 67-3-3 NMSA 1978; and
(2) fifty percent of the proceeds of the bonds issued in each fiscal year are appropriated to the department of transportation to maintain or rehabilitate state highways impacted by energy development in state transportation commission districts 2 and 5 as identified in Section 67-3-3 NMSA 1978.
D. Money from the severance tax bonds provided for in this section shall not be used to pay indirect costs. If the department of transportation has not certified the need for the issuance of the bonds by July 1, 2017, the authorization provided in this section shall expire."
SECTION 4. Section 67-3-28.2 NMSA 1978 (being Laws 1986, Chapter 20, Section 125, as amended) is amended to read:
"67-3-28.2. LOCAL GOVERNMENTS ROAD FUND CREATED--
USES.--
A. There is created in the state treasury the "local governments road fund" to be administered by the department. All income received from investment of the fund shall be credited to the fund. No money in the fund shall be used by the department to administer any program, and except as provided in Subsection E of this section, no entity receiving a distribution pursuant to a program requiring matching funds shall use another distribution made pursuant to this section to meet the match required.
B. No more than five hundred thousand dollars ($500,000) annually from the local governments road fund shall be used by the department to purchase at fair market value, for municipalities and counties that can demonstrate financial hardship as determined by the department, automotive, major road and miscellaneous equipment that would otherwise be sold at auction by the department as unusable for department purposes. The department shall adopt rules setting the procedure to carry out the purposes of this subsection.
C. Except for the amounts in Subsections B and E of this section, money in the local governments road fund shall be distributed in the following amounts for the specified purposes:
(1) forty-two percent for the cooperative agreements program, to be used solely for the cooperative agreements entered into pursuant to Section 67-3-28 NMSA 1978 and in accordance with the match authorized pursuant to Section 67-3-32 NMSA 1978; provided, however, that distribution amounts made pursuant to this paragraph in each year shall be based on the following allocations:
(a) beginning July 1, 2014 and extending through June 30, 2019, thirty-three percent for agreements entered into with counties within state transportation commission districts 2 and 5 to address the maintenance of highways and roads that as certified by the secretary are deteriorating due to the impact of energy development and, provided further that, the provisions of Subsection E of this section and Section 67-3-32 NMSA 1978 shall not apply to this subparagraph;
(b) on and after July 1, 2019, thirty-three percent for agreements entered into with counties;
[(b)] (c) beginning July 1, 2014 and extending through June 30, 2019, forty-nine percent for agreements entered into with municipalities within state transportation commission districts 2 and 5 to address the maintenance of highways and roads that as certified by the secretary are deteriorating due to the impact of energy development and, provided further that, the provisions of Subsection E of this section and Section 67-3-32 NMSA 1978 shall not apply to this subparagraph;
(d) on and after July 1, 2019, forty-nine percent for agreements entered into with municipalities;
[(c)] (e) fourteen percent for agreements entered into with school districts; and
[(d)] (f) four percent for agreements entered into with other entities;
(2) sixteen percent for the municipal arterial program, to be used solely for the necessary project development, construction, reconstruction, improvement, maintenance, repair and right-of-way and material acquisition of and for those streets that are principal extensions of rural state highways and of other streets not on the state highway system but that qualify under the designated criteria established by the department. In entering into agreements with municipalities to provide funds for any project qualifying for the municipal arterial program, the department shall give preference to municipalities that contribute an amount equal to at least twenty-five percent of the project cost, including a contribution made through funding received pursuant to Subsection E of this section;
(3) sixteen percent for school bus routes, to be used solely for cooperative agreements entered into pursuant to Section 67-3-28 NMSA 1978 and in accordance with the match authorized pursuant to Section 67-3-32 NMSA 1978 for acquiring rights of way and constructing, maintaining, repairing, improving and paving school bus routes and public school parking lots; and
(4) twenty-six percent for the county arterial program, to be used for project development, construction, reconstruction, improvement, maintenance, repair and right-of-way and material acquisition of and for county roads for which individual counties have prioritized road projects. Prior to entering into any agreements for projects with the counties for the following fiscal year, in June of each year the department shall determine and certify the amount to which each county is entitled pursuant to the following schedule:
Road Mileage Category Based on
Number of Miles Maintained
By a County: Entitlement to County:
400 miles or under $250 for each mile
401 to 800 miles $100,000 plus $200 for each
mile over 400 miles
801 to 1,200 miles $180,000 plus $150 for each
mile over 800 miles
1,201 to 1,600 miles $240,000 plus $100 for each
mile over 1,200 miles
Over 1,600 miles $300,000 plus [$50] $50.00 for each mile over 1,600 miles.
If in any year there is an insufficient amount in the fund of the county arterial program to certify the total amount to which all counties are entitled, the department shall decrease the entitlement amount due to each county in the same proportion as the insufficiency is to the total entitlements to all counties. Distribution of an entitlement amount and an agreement entered into with a county for any of the purposes for which the money may be spent requires an amount from the county equal to at least twenty-five percent of the entitlement. The county contribution may be made through funds received pursuant to Subsection E of this section. Any uncommitted or unencumbered balance remaining in the county arterial program fund at the end of a fiscal year shall be transferred to the cooperative agreements program specified in Paragraph (1) of this subsection for additional funding of that program in the next fiscal year.
D. The department may transfer funds from the state road fund to the local governments road fund to facilitate cash flow for the funding of these local governments road projects. The administrator of the local governments road fund shall reimburse the state road fund in a timely manner for any such transfers.
E. The department may distribute up to one million dollars ($1,000,000) per calendar year of the money in the local governments road fund to municipalities and counties that can demonstrate financial hardship, for use as all or a portion of the municipality's or county's matching fund requirements pursuant to this section. In order to qualify for matching funds under this subsection, a county or municipality shall provide the department with a financial hardship qualification certificate issued by the department of finance and administration."
SECTION 5. APPLICABILITY.--The distributions pursuant to Section 2 of this act apply to receipts from the motor vehicle excise tax that are attributable to sales subject to that tax on July 1, 2014 through June 30, 2019.
SECTION 6. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2014.
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