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AN ACT
RELATING TO FINANCE; AMENDING THE NEW MEXICO FINANCE
AUTHORITY ACT TO ADD A REQUIREMENT FOR LEGISLATIVE APPROVAL
OF LOCAL TRANSPORTATION INFRASTRUCTURE FUND PROJECTS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 6-21-6.8 NMSA 1978 (being Laws 2005,
Chapter 262, Section 1) is amended to read:
"6-21-6.8. LOCAL TRANSPORTATION INFRASTRUCTURE FUND--
CREATION--PURPOSE--ADMINISTRATION.--
A. The "local transportation infrastructure fund"
is created within the authority. For the purposes of this
section, "fund" means the local transportation infrastructure
fund. The fund shall be administered by the authority as a
separate account, but may consist of subaccounts if the
authority deems them necessary to carry out the purposes of
the fund. The authority shall adopt rules in accordance with
the New Mexico Finance Authority Act necessary to administer
the fund.
B. The following shall be deposited directly into
the fund:
(1) beginning July 1, 2005, one-half of the
annual administrative fee received by the authority for
issuing state transportation bonds pursuant to Sections
67-3-59.3 and 67-3-59.4 NMSA 1978;
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(2) money from the payment of principal and
interest on loans and payments of principal and interest on
securities held by the authority for local transportation
projects;
(3) money appropriated by the legislature to
implement the provisions of this section; and
(4) other public or private money
appropriated, dedicated or allocated to the fund for the
purpose of financing local transportation projects.
C. For the purposes of this section, "local
transportation projects" means local transportation projects
of qualified entities authorized specifically by law as
provided in Subsection F of this section.
D. Money in the fund is appropriated to the
authority to pay the reasonable and necessary costs of
originating and servicing loans, grants or securities funded
by the fund and to make loans or grants and to purchase or
sell securities to assist qualified entities in financing
local transportation projects in accordance with the New
Mexico Finance Authority Act.
E. The authority may make grants from the fund to
qualified entities for local transportation projects when:
(1) a grant is not more than twenty-five
percent of the total project cost; and
(2) a qualified entity demonstrates that it
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has available or a binding commitment from another person to
make available for a project the portion of the total project
cost not provided by the grant. The qualified entity may
enter into a loan agreement or an agreement to sell the
qualified entity's securities with the authority, or the
qualified entity may use another source of money available
for the project, to provide the costs not covered by the
grant.
F. No later than December 15 of each year, the
secretary of transportation, using the department of
transportation's metropolitan planning organization and
regional planning organization planning process, shall submit
a prioritized list of local transportation projects to the
authority that the metropolitan planning organizations and
regional planning organizations have determined are
appropriate for grants or other funding support pursuant to
this section. The list of local transportation projects
shall be submitted to the legislature for specific
authorization by law. The authority shall act on local
transportation projects in the priority approved by the
legislature; provided that the authority, based on the
availability of money in the fund, may determine that a
qualified entity shall receive a grant or other funding
support for a project out of the order of priority it would
otherwise have had or that no grant or other funding support
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be provided for the project. The rules of the authority for
administration of the fund may set a maximum amount of grant
or other funding support for a local transportation project.
G. Money in the local transportation
infrastructure fund not needed for immediate disbursement,
including money held in reserve, may be deposited with the
state treasurer for short-term investment pursuant to Section
6-10-10.1 NMSA 1978 or may be invested in direct and general
obligations of or obligations fully and unconditionally
guaranteed by the United States, obligations issued by
agencies of the United States, obligations of this state or
any political subdivision of the state, interest-bearing time
deposits, commercial paper issued by corporations organized
and operating in the United States and rated "prime" quality
by a national rating service, other investments permitted by
Section 6-10-10 NMSA 1978 or as otherwise provided by the
trust indenture or bond resolution, if money is pledged for
or secures payment of bonds issued by the authority.
H. The authority shall establish fiscal controls
and accounting procedures that are sufficient to assure
proper accounting for local transportation infrastructure
fund payments, disbursements and balances."
Section 2. EFFECTIVE DATE.--The effective date of the
provisions of this act is September 1, 2007.