SENATE BILL 207

45th legislature - STATE OF NEW MEXICO - first session, 2001

INTRODUCED BY

Patrick H. Lyons







AN ACT

RELATING TO FINANCING OF HIGHWAY PROJECTS; PHASING IN THE DISTRIBUTION OF MOTOR VEHICLE EXCISE TAX REVENUES TO THE STATE ROAD FUND; AUTHORIZING THE ISSUANCE OF STATE HIGHWAY BONDS FOR VARIOUS HIGHWAY PROJECTS THROUGHOUT THE STATE; AMENDING AND ENACTING SECTIONS OF THE NMSA 1978; MAKING APPROPRIATIONS.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. 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] as follows:

A. for the period prior to July 1, 2002, one hundred percent to the general fund;

B. from July 1, 2002 through June 30, 2003, eighty percent to the general fund and twenty percent to the state road fund;

C. from July 1, 2003 through June 30, 2004, sixty percent to the general fund and forty percent to the state road fund;

D. from July 1, 2004 through June 30, 2005, forty percent to the general fund and sixty percent to the state road fund;

E. from July 1, 2005 through June 30, 2006, twenty percent to the general fund and eighty percent to the state road fund; and

F. after June 30, 2006, one hundred percent to the state road fund."

Section 2. Section 67-3-59.1 NMSA 1978 (being Laws 1989, Chapter 157, Section 1, as amended) is amended to read:

"67-3-59.1. STATE HIGHWAY DEBENTURES--ISSUANCE--LIMITS--APPROVAL--COUPONS.--

A. In order to provide funds to finance state highway projects, including state highway projects that are required for the waste isolation pilot project and are eligible for federal reimbursement or payment as authorized by federal legislation, the state highway commission is authorized, subject to the limitations of this section, to issue bonds from time to time, payable from federal funds not otherwise obligated that are paid into the state road fund, the proceeds of the collection of taxes and fees that are required by law to be paid into the state road fund and not otherwise pledged solely to the payment of outstanding bonds and debentures.

B. Except as provided in [Subsections C and D] Subsection C of this section, the total aggregate outstanding principal amount of bonds issued from time to time pursuant to this section, secured by or payable from federal funds not otherwise obligated that are paid into the state road fund and the proceeds from the collection of taxes and fees required by law to be paid into the state road fund, shall not, without additional authorization of the state legislature, exceed one hundred fifty million dollars ($150,000,000) at any given time, subject to the following provisions:

(1) the total aggregate outstanding principal amount of bonds issued for state highway projects that are required for the waste isolation pilot project and are eligible for federal reimbursement or payment as authorized by federal legislation shall not exceed one hundred million dollars ($100,000,000); and

(2) the total aggregate outstanding principal amount of bonds issued for state highway projects other than state highway projects that are required for the waste isolation pilot project and are eligible for federal reimbursement or payment as authorized by federal legislation shall not exceed fifty million dollars ($50,000,000).

C. Upon specific authorization and appropriation by the legislature, [and subject to the limitations of Subsection D of this section] an additional amount of bonds may be issued pursuant to this section for state highway projects, to be secured by or payable from taxes or fees required by law to be paid into the state road fund and federal funds not otherwise obligated that are paid into the state road fund, and, as applicable, taxes or fees required by law to be paid into the highway infrastructure fund, as follows:

(1) an aggregate outstanding principal amount of bonds, not to exceed six hundred twenty-four million dollars ($624,000,000), for major highway infrastructure projects for which the department has, prior to January 1, 1998, submitted or initiated the process of submitting a plan to the federal highway administration for innovative financing pursuant to 23 USCA Sections 122 and 307;

(2) an aggregate outstanding principal amount of bonds, not to exceed one hundred million dollars ($100,000,000), for state highway projects that are required for the waste isolation pilot project and are eligible for federal reimbursement; and

(3) an aggregate outstanding principal amount of bonds, not to exceed [four hundred million dollars ($400,000,000)] one billion seven hundred nine million eight hundred ninety thousand dollars ($1,709,890,000), for other state highway projects.

[D. The total amount of bonds that may be issued by the state highway commission for state highway projects pursuant to Subsection C of this section shall not exceed a total aggregate outstanding principal amount of:

(1) three hundred million dollars ($300,000,000) prior to July 1, 1999;

(2) six hundred million dollars ($600,000,000) from July 1, 1999 through June 30, 2000;

(3) nine hundred million dollars ($900,000,000) from July 1, 2000 through June 30, 2001; and

(4) one billion one hundred twenty-four million dollars ($1,124,000,000) after June 30, 2001.

E.] D. The state highway commission may issue bonds to refund other bonds issued pursuant to this section by exchange or current or advance refunding.

[F.] E. Each series of bonds shall have a maturity of no more than twenty-five years from the date of issuance. The state highway commission shall determine all other terms, covenants and conditions of the bonds; provided that the bonds shall not be issued pursuant to this section unless the state board of finance approves the issuance of the bonds and the principal amount of and interest rate or maximum net effective interest rate on the bonds.

[G.] F. The bonds shall be executed with the manual or facsimile signature of the chairman of the state highway commission, countersigned by the state treasurer and attested to by the secretary of the state highway commission, with the seal of the state highway commission imprinted or otherwise affixed to the bonds.

[H.] G. Proceeds of the bonds may be used to pay expenses incurred in the preparation, issuance and sale of the bonds and, together with the earnings on the proceeds of the bonds, may be used to pay rebate, penalty, interest and other obligations relating to the bonds and the proceeds of the bonds under the Internal Revenue Code of 1986, as amended.

[I.] H. The bonds may be sold at a public or negotiated sale at, above or below par or through the New Mexico finance authority. Any negotiated sale shall be made with one or more investment [banker] bankers whose services are obtained through a competitive proposal process. For any sale, the state highway commission or the New Mexico finance authority shall also procure the services of any financial advisor or bond counsel through a competitive proposal process. If sold at public sale, a notice of the time and place of sale shall be published in a newspaper of general circulation in the state, and in any other newspaper determined in the resolution authorizing the issuance of the bonds, once each week for two consecutive weeks prior to the date of sale. The bonds may be purchased by the state treasurer or state investment officer.

[J.] I. This section is full authority for the issuance and sale of the bonds, and the bonds shall not be invalid for any irregularity or defect in the proceedings for their issuance and sale and shall be incontestable in the hands of bona fide purchasers or holders of the bond for value.

[K.] J. The bonds shall be legal investments for any person or board charged with the investment of public funds and may be accepted as security for any deposit of public money and, with the interest thereon, are exempt from taxation by the state and any political subdivision or agency of the state.

[L.] K. Any law authorizing the imposition or distribution of taxes or fees paid into the state road fund or the highway infrastructure fund or that affects those taxes and fees shall not be amended or repealed or otherwise directly or indirectly modified so as to impair any outstanding bonds secured by a pledge of revenues from those taxes and fees paid into the state road fund or the highway infrastructure fund, unless the bonds have been discharged in full or provisions have been made for a full discharge. In addition, while any bonds issued by the state highway commission pursuant to the provisions of this section remain outstanding, the powers or duties of the commission shall not be diminished or impaired in any manner that will affect adversely the interests and rights of the holder of such bonds.

[M.] L. In contracting for state highway projects to be paid in whole or in part with proceeds of bonds authorized by this section, the department shall require that any sand, gravel, caliche or similar material needed for the project shall, if practicable, be mined from state lands. Each contract shall provide that the contractor notify the commissioner of public lands of the need for the material and that, through lease or purchase, the material shall be mined from state lands if:

(1) the material needed is available from state lands in the vicinity of the project;

(2) the commissioner determines that the lease or purchase is in the best interest of the state land trust beneficiaries; and

(3) the cost to the contractor for the material, including the costs of transportation, is competitive with other available material from non-state lands.

[N.] M. Bonds issued pursuant to this section shall be paid solely from federal funds not otherwise obligated and taxes and fees deposited into the state road fund and, as applicable, the highway infrastructure fund, and shall not constitute a general obligation of the state."

Section 3. STATE HIGHWAY BONDS--PURPOSE FOR WHICH ISSUED--APPROPRIATION OF PROCEEDS.--

A. The state highway commission may issue and sell state highway bonds in compliance with the provisions of Section 67-3-59.1 NMSA 1978 in an amount not to exceed the total of the amounts authorized for purposes specified in this section when the commission determines the need for the issuance of the bonds. The state highway commission shall schedule the issuance and sale of the bonds in the most expeditious and economic manner possible upon a finding by the commission that the project has been developed sufficiently to justify the issuance and that the project can proceed to contract within a reasonable time. The proceeds from the sale of the bonds are appropriated to the state highway and transportation department in the following amounts for the following purposes:

(1) seventy-two million dollars ($72,000,000) for the four-lane construction of United States highway 180 from Silver City to Deming;

(2) fifty-three million five hundred sixty thousand dollars ($53,560,000) for the six-lane construction of interstate 10 from the interstate 25 interchange to the Texas state line;

(3) thirty-one million two hundred thousand dollars ($31,200,000) for the six-lane construction of interstate 25 from the tramway interchange to the United States highway 550 interchange;

(4) seventy-four million six hundred ninety thousand dollars ($74,690,000) for the four-lane construction of United States highway 666 from Sheep Springs to the Colorado state line;

(5) one hundred eighty-five million three hundred seventy thousand dollars ($185,370,000) for the four-lane construction of United States highways 64 and 87 from Raton to Clayton;

(6) eighty-eight million six hundred ten thousand dollars ($88,610,000) for construction of a new four-lane northwest loop highway from New Mexico 550 to interstate 40 near the rio puerco;

(7) seventy-nine million one hundred seventy thousand dollars ($79,170,000) for the four-lane construction of United States highway 285 from Clines Corners to Lamy;

(8) three hundred twenty-nine million ten thousand dollars ($329,010,000) for the four-lane construction of United States highway 54 from Tularosa to Santa Rosa;

(9) eighty-five million dollars ($85,000,000) for the four-lane construction of United States highway 54 from Tucumcari to the Texas state line;

(10) fifteen million two hundred forty thousand dollars ($15,240,000) for construction of New Mexico 404 from interstate 10 to United States highway 54;

(11) seventy-five million two hundred ten thousand dollars ($75,210,000) for the four-lane construction of United States highways 62 and 180 from Carlsbad to the Texas state line;

(12) forty-five million dollars ($45,000,000) for the four-lane construction of United States highway 285 from Carlsbad to the Texas state line;

(13) eleven million two hundred twenty thousand dollars ($11,220,000) for the four-lane construction of New Mexico 18 from Jal to the Texas state line;

(14) eighteen million dollars ($18,000,000) for a new east loop Espanola relief route;

(15) ninety-four million two hundred thousand dollars ($94,200,000) for the four-lane construction of United States highway 82 from Artesia to Lovington;

(16) twenty-five million four hundred thousand dollars ($25,400,000) for the six-lane construction of interstate 25 from New Mexico 47 to Cesar Chavez boulevard;

(17) twelve million ten thousand dollars ($12,010,000) for a new bypass route in Deming off interstate 10; and

(18) fifteen million dollars ($15,000,000) for a new Richards avenue interchange on interstate 25 in Santa Fe county.

B. The appropriations of state highway bond proceeds in Subsection A of this section are in addition to the amounts of bonds authorized in Laws 1998, Chapter 84, Section 1 and Laws 1998, Chapter 85, Section 1.

C. For the purposes of this section, "construction" includes planning, design, engineering, construction and acquisition of rights of way.

Section 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2001.

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