SENATE FINANCE COMMITTEE SUBSTITUTE FOR
SENATE BILLS 95 & 131
53rd legislature - STATE OF NEW MEXICO - first session, 2017
AN ACT
RELATING TO TAXATION; INCREASING THE GASOLINE, SPECIAL FUEL AND MOTOR VEHICLE EXCISE TAXES; DISTRIBUTING THE REVENUE FROM THE INCREASES TO THE GASOLINE AND MOTOR VEHICLE EXCISE TAXES AND A PORTION OF THE INCREASE TO THE SPECIAL FUEL EXCISE TAX TO THE TAX STABILIZATION RESERVE UNTIL STATE RESERVE FUNDS REACH FIVE PERCENT, TO MUNICIPALITIES AND COUNTIES FOR MAINTENANCE AND REPAIR OF EXISTING TRANSPORTATION INFRASTRUCTURE AND TO THE STATE ROAD MAINTENANCE FUND; CREATING THE STATE ROAD MAINTENANCE FUND; SETTING THE PETROLEUM PRODUCTS LOADING FEE AT ONE HUNDRED FIFTY DOLLARS ($150) AND DISTRIBUTING A PORTION OF THE FEE TO THE TAX STABILIZATION RESERVE UNTIL STATE RESERVE FUNDS REACH FIVE PERCENT; CONFORMING SECTION 67-3-28.2 NMSA 1978 (BEING LAWS 1986, CHAPTER 20, SECTION 125, AS AMENDED).
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 7-1-6.7 NMSA 1978 (being Laws 1994, Chapter 5, Section 2, as amended) is amended to read:
"7-1-6.7. DISTRIBUTIONS--STATE AVIATION FUND.--
A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state aviation fund in an amount equal to four and seventy-nine hundredths percent of the taxable gross receipts attributable to the sale of fuel specially prepared and sold for use in turboprop or jet-type engines as determined by the department.
B. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state aviation fund in an amount equal to [twenty-six hundredths] one hundred sixty-four thousandths percent of gasoline taxes, exclusive of penalties and interest, collected pursuant to the Gasoline Tax Act.
C. From July 1, 2013 through June 30, 2021, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state aviation fund in an amount equal to forty-six thousandths percent of the net receipts attributable to the gross receipts tax distributable to the general fund.
D. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state aviation fund from the net receipts attributable to the gross receipts tax distributable to the general fund in an amount equal to
[(1) eighty thousand dollars ($80,000) monthly from July 1, 2007 through June 30, 2008;
(2) one hundred sixty-seven thousand dollars ($167,000) monthly from July 1, 2008 through June 30, 2009; and
(3)] two hundred fifty thousand dollars
($250,000) [monthly after July 1, 2009]."
SECTION 2. Section 7-1-6.8 NMSA 1978 (being Laws 1983, Chapter 211, Section 13, as amended) is amended to read:
"7-1-6.8. DISTRIBUTION--MOTORBOAT FUEL TAX FUND.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the motorboat fuel tax fund in an amount equal to [thirteen-hundredths of one] eighty-two thousandths percent of the net receipts attributable to the gasoline tax."
SECTION 3. Section 7-1-6.9 NMSA 1978 (being Laws 1991, Chapter 9, Section 11, as amended) is amended to read:
"7-1-6.9. DISTRIBUTION OF GASOLINE TAXES TO MUNICIPALITIES AND COUNTIES.--
A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made in an amount equal to [ten and thirty-eight hundredths] six and five hundred thirty-six thousandths percent of the net receipts attributable to the taxes, exclusive of penalties and interest, imposed by the Gasoline Tax Act.
B. [Except as provided in Subsection D of this section] The amount determined in Subsection A of this section shall be distributed as follows:
(1) ninety percent of the amount shall be paid to the treasurers of municipalities and H class counties in the proportion that the taxable motor fuel sales in each of the municipalities and H class counties bears to the aggregate taxable motor fuel sales in all of these municipalities and H class counties; and
(2) ten percent of the amount shall be paid to the treasurers of the counties, including H class counties, in the proportion that the taxable motor fuel sales outside of incorporated municipalities in each of the counties bears to the aggregate taxable motor fuel sales outside of incorporated municipalities in all of the counties.
C. Except as provided in Subsection D of this section, this distribution shall be paid into a separate road fund in the municipal treasury or county road fund for expenditure only for construction, reconstruction, resurfacing or other improvement or maintenance of public roads, streets, alleys or bridges, including right-of-way and materials acquisition. Money distributed pursuant to this section may be used by a municipality or county to provide matching funds for projects subject to cooperative agreements entered into with the [state highway and] department of transportation [department] pursuant to Section 67-3-28 NMSA 1978. Any municipality or H class county that has created or that creates a "street improvement fund" to which gasoline tax revenues or distributions are irrevocably pledged under Sections 3-34-1 through 3-34-4 NMSA 1978 or that has pledged all or a portion of gasoline tax revenues or distributions to the payment of bonds shall receive its proportion of the distribution of revenues under this section impressed with and subject to these pledges.
D. This distribution may be paid into a separate road fund or the general fund of the municipality or county if the municipality has a population less than three thousand or the county has a population less than four thousand."
SECTION 4. Section 7-1-6.10 NMSA 1978 (being Laws 1983, Chapter 211, Section 15, as amended) is amended to read:
"7-1-6.10. DISTRIBUTIONS--STATE ROAD FUND.--
A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state road fund in an amount equal to the net receipts attributable to the taxes, surcharges, penalties and interest imposed pursuant to the Gasoline Tax Act and to the taxes, surtaxes, fees, penalties and interest imposed pursuant to the Special Fuels Supplier Tax Act and the Alternative Fuel Tax Act less:
(1) the amount distributed to the state aviation fund pursuant to Subsection B of Section 7-1-6.7 NMSA 1978;
(2) the amount distributed to the motorboat fuel tax fund pursuant to Section 7-1-6.8 NMSA 1978;
(3) the amount distributed to municipalities and counties pursuant to [Subsection A of] Section 7-1-6.9 NMSA 1978 and Section 11 of this 2017 act;
(4) the amount distributed to the county government road fund pursuant to Section 7-1-6.19 NMSA 1978;
(5) the amount distributed to the local governments road fund pursuant to Section 7-1-6.39 NMSA 1978;
(6) the amount distributed to the municipalities pursuant to Section 7-1-6.27 NMSA 1978;
(7) the amount distributed to the municipal arterial program of the local governments road fund pursuant to Section 7-1-6.28 NMSA 1978;
(8) the amount distributed to a qualified tribe pursuant to [a gasoline tax sharing agreement entered into between the secretary of transportation and the qualified tribe pursuant to the provisions] Subsection A of Section [67-3-8.1] 7-1-6.44 NMSA 1978; [and]
(9) the amount distributed to the general fund pursuant to Subsection B of Section 7-1-6.44 NMSA 1978;
(10) the amount distributed to the tax stabilization reserve pursuant to Section 10 of this 2017 act; and
(11) the amount distributed to the state road maintenance fund pursuant to Section 12 of this 2017 act.
B. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state road fund in an amount equal to the net receipts attributable to the taxes, interest and penalties from the Weight Distance Tax Act."
SECTION 5. Section 7-1-6.19 NMSA 1978 (being Laws 1991, Chapter 9, Section 15, as amended) is amended to read:
"7-1-6.19. DISTRIBUTION--COUNTY GOVERNMENT ROAD FUND CREATED.--
A. There is created in the state treasury the "county government road fund".
B. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the county government road fund in an amount equal to [five and seventy-six hundredths] three and six hundred twenty-seven thousandths percent of the net receipts attributable to the gasoline tax."
SECTION 6. Section 7-1-6.25 NMSA 1978 (being Laws 1988, Chapter 70, Section 9, as amended) is amended to read:
"7-1-6.25. DISTRIBUTION OF PETROLEUM PRODUCTS LOADING
FEE--CORRECTIVE ACTION FUND--LOCAL GOVERNMENTS ROAD FUND.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 of the net receipts attributable to the petroleum products loading fee shall be made to each of the following funds in the following amounts:
A. to the local governments road fund an amount equal to the net receipts attributable to a fee of forty dollars ($40.00) per load; [and]
B. an amount equal to the net receipts attributable to a fee of one hundred ten dollars ($110) per load to the tax stabilization reserve until the last distribution to the tax stabilization reserve is made pursuant to Section 10 of this 2017 act; and
C. one month after the last distribution is made to the tax stabilization reserve pursuant to Section 10 of this 2017 act, to the corrective action fund, the balance, if any, of the net receipts."
SECTION 7. Section 7-1-6.27 NMSA 1978 (being Laws 1991, Chapter 9, Section 20, as amended) is amended to read:
"7-1-6.27. DISTRIBUTION--MUNICIPAL ROADS.--
A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to municipalities for the purposes and amounts specified in this section in an aggregate amount equal to [five and seventy-six hundredths] three and six hundred twenty-seven thousandths percent of the net receipts attributable to the gasoline tax.
B. The distribution authorized in this section shall be used for the following purposes:
(1) reconstructing, resurfacing, maintaining, repairing or otherwise improving existing alleys, streets, roads or bridges, or any combination of the foregoing; or laying off, opening, constructing or otherwise acquiring new alleys, streets, roads or bridges, or any combination of the foregoing; provided that any of the foregoing improvements may include [but are not limited to] the acquisition of rights of way;
(2) to provide matching funds for projects subject to cooperative agreements with the [state highway and] department of transportation [department] pursuant to Section 67-3-28 NMSA 1978; and
(3) for expenses of purchasing, maintaining and operating transit operations and facilities, for the operation of a transit authority established by the Municipal Transit Law and for the operation of a vehicle emission inspection program. A municipality may engage in the business of the transportation of passengers and property within the political subdivision by whatever means the municipality may decide and may acquire cars, trucks, motor buses and other equipment necessary for operating the business. A municipality may acquire land, erect buildings and equip the buildings with all the necessary machinery and facilities for the operation, maintenance, modification, repair and storage of the cars, trucks, motor buses and other equipment needed. A municipality may do all things necessary for the acquisition and the conduct of the business of public transportation.
C. For the purposes of this section:
(1) "computed distribution amount" means the distribution amount calculated for a municipality for a month pursuant to Paragraph (2) of Subsection D of this section prior to any adjustments to the amount due to the provisions of Subsections E and F of this section;
(2) "floor amount" means four hundred seventeen dollars ($417);
(3) "floor municipality" means a municipality whose computed distribution amount is less than the floor amount; and
(4) "full distribution municipality" means a municipality whose population at the last federal decennial census was at least two hundred thousand.
D. Subject to the provisions of Subsections E and F of this section, each municipality shall be distributed a portion of the aggregate amount distributable under this section in an amount equal to the greater of:
(1) the floor amount; or
(2) eighty-five percent of the aggregate amount distributable under this section times a fraction, the numerator of which is the municipality's reported taxable gallons of gasoline for the immediately preceding state fiscal year and the denominator of which is the reported total taxable gallons for all municipalities for the same period.
E. Fifteen percent of the aggregate amount distributable under this section shall be referred to as the "redistribution amount". Beginning in August 1990, and each month thereafter, from the redistribution amount there shall be taken an amount sufficient to increase the computed distribution amount of every floor municipality to the floor amount. In the event that the redistribution amount is insufficient for this purpose, the computed distribution amount for each floor municipality shall be increased by an amount equal to the redistribution amount times a fraction, the numerator of which is the difference between the floor amount and the municipality's computed distribution amount and the denominator of which is the difference between the product of the floor amount multiplied by the number of floor municipalities and the total of the computed distribution amounts for all floor municipalities.
F. If a balance remains after the redistribution amount has been reduced pursuant to Subsection E of this section, there shall be added to the computed distribution amount of each municipality that is neither a full distribution municipality nor a floor municipality an amount that equals the balance of the redistribution amount times a fraction, the numerator of which is the computed distribution amount of the municipality and the denominator of which is the sum of the computed distribution amounts of all municipalities that are neither full distribution municipalities nor floor municipalities."
SECTION 8. Section 7-1-6.28 NMSA 1978 (being Laws 1991, Chapter 9, Section 22, as amended) is amended to read:
"7-1-6.28. DISTRIBUTION--MUNICIPAL ARTERIAL PROGRAM OF LOCAL GOVERNMENTS ROAD FUND.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the municipal arterial program of the local governments road fund created in Section 67-3-28.2 NMSA 1978 in an amount equal to [one and forty-four hundredths] nine hundred seven thousandths percent of the net receipts attributable to the gasoline tax."
SECTION 9. Section 7-1-6.39 NMSA 1978 (being Laws 1995, Chapter 6, Section 9, as amended) is amended to read:
"7-1-6.39. DISTRIBUTION OF SPECIAL FUEL EXCISE TAX TO LOCAL GOVERNMENTS ROAD FUND.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the local governments road fund in an amount equal to [nine and fifty-two] seven and sixty-nine hundredths percent of the net receipts attributable to the taxes, exclusive of penalties and interest, from the special fuel excise tax imposed by the Special Fuels Supplier Tax Act."
SECTION 10. A new section of the Tax Administration Act is enacted to read:
"[NEW MATERIAL] DISTRIBUTION--TAX STABILIZATION RESERVE.--
A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the tax stabilization reserve in an amount equal to eighteen and fifty-two hundredths percent of the net receipts attributable to the gasoline tax and in an amount equal to nine and sixty-one hundredths percent of the net receipts attributable to the special fuel excise tax until the month following a certification by the state board of finance to the secretary that the total amount in state reserve funds at the end of the prior fiscal year, according to the general fund financial summary that is prepared by the department of finance and administration in August of each year, was at least five percent of the total general fund appropriations for the prior fiscal year.
B. As used in this section, "state reserve funds" means the general fund operating reserve, the appropriation contingency fund, the tax stabilization reserve, the taxpayers divided fund and the tobacco settlement permanent fund."
SECTION 11. A new section of the Tax Administration Act is enacted to read:
"[NEW MATERIAL] ADDITIONAL DISTRIBUTION OF THE GASOLINE TAX AND THE SPECIAL FUEL EXCISE TAX TO MUNICIPALITIES AND COUNTIES.--
A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to municipalities and counties, subject to the requirements of Subsection B of this section, in the following amounts:
(1) prior to when the last distribution is made pursuant to Section 10 of this 2017 act:
(a) nine and two hundred fifty-six thousandths percent of the net receipts attributable to the gasoline tax; and
(b) two and eighty-nine hundredths percent of the net receipts attributable to the special fuel excise tax; and
(2) one month after the last distribution is made to the tax stabilization reserve pursuant to Section 10 of this 2017 act, in an amount equal to:
(a) eighteen and five hundred sixteen thousandths percent of the net receipts attributable to the gasoline tax; and
(b) seven and six hundred ninety-five thousandths percent of the net receipts attributable to the special fuel excise tax.
B. Except as provided in Subsection D of this section, this distribution shall be paid into a maintenance and repair road fund in the municipal treasury or county road fund for expenditure only for reconstruction, resurfacing or other improvement or maintenance of existing public roads, streets, alleys or bridges, including right-of-way and materials acquisition.
C. The amount determined in Subsection A of this section shall be distributed as follows:
(1) sixty-six and seven-tenths percent of the amount shall be paid to the treasurers of municipalities and H class counties in the proportion that the taxable motor fuel sales in each of the municipalities and H class counties bears to the aggregate taxable motor fuel sales in all of these municipalities and H class counties; and
(2) thirty-three and three-tenths percent of the amount shall be paid to the treasurers of the counties, including H class counties, in the proportion that the taxable motor fuel sales outside of incorporated municipalities in each of the counties bears to the aggregate taxable motor fuel sales outside of incorporated municipalities in all of the counties.
D. The distributions made pursuant to this section may be paid into a separate road fund or the general fund of the municipality or county if the municipality has a population less than three thousand or the county has a population less than four thousand.
E. Money from the distribution made pursuant to this section shall not be pledged for the payment of bonds or debentures or expended to pay the principal or interest of outstanding bonds or debentures."
SECTION 12. A new section of the Tax Administration Act is enacted to read:
"[NEW MATERIAL] DISTRIBUTION OF THE GASOLINE TAX AND THE SPECIAL FUEL EXCISE TAX--STATE ROAD MAINTENANCE FUND.--
A. The "state road maintenance fund" is created as a nonreverting fund in the state treasury. No income earned on the fund shall be transferred to another fund.
B. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the state road maintenance fund in the following amounts:
(1) prior to when the last distribution is made pursuant to Section 10 of this 2017 act:
(a) nine and two hundred fifty-six thousandths percent of the net receipts attributable to the gasoline tax; and
(b) two and eighty-nine hundredths percent of the net receipts attributable to the special fuel excise tax; and
(2) one month after the last distribution is made to the tax stabilization reserve pursuant to Section 10 of this 2017 act, in an amount equal to:
(a) eighteen and five hundred sixteen thousandths percent of the net receipts attributable to the gasoline tax; and
(b) seven and six hundred ninety-five thousandths percent of the net receipts attributable to the special fuel excise tax.
C. The department of transportation shall administer the fund, and money in the fund is subject to appropriation by the legislature only to the department of transportation for expenditure for reconstruction, resurfacing or other improvement or maintenance of existing public roads, streets, alleys or bridges, including right-of-way and materials acquisition.
D. Money in the fund shall not be pledged for the payment of bonds or debentures or expended to pay the principal or interest of outstanding bonds or debentures.
E. Money in the fund shall be disbursed on warrants signed by the secretary of finance and administration pursuant to vouchers signed by the secretary of transportation or the secretary's authorized representative."
SECTION 13. Section 7-13-3 NMSA 1978 (being Laws 1971, Chapter 207, Section 3, as amended) is amended to read:
"7-13-3. IMPOSITION AND RATE OF TAX--DENOMINATION AS "GASOLINE TAX".--
A. For the privilege of receiving gasoline in this state, there is imposed an excise tax at a rate provided in Subsection B of this section on each gallon of gasoline received in New Mexico.
B. The tax imposed by Subsection A of this section shall be [seventeen cents ($.17)] twenty-seven cents ($.27) per gallon received in New Mexico.
C. The tax imposed by this section may be called the "gasoline tax"."
SECTION 14. Section 7-13A-3 NMSA 1978 (being Laws 1990, Chapter 124, Section 16, as amended) is amended to read:
"7-13A-3. IMPOSITION AND RATE OF FEE--DENOMINATION AS "PETROLEUM PRODUCTS LOADING FEE".--
A. For the privilege of loading gasoline or special fuel from a rack at a refinery or pipeline terminal in this state into a cargo tank, there is imposed a fee on the distributor at a rate provided in Subsection [C] D of this section on each gallon of gasoline or special fuel loaded in New Mexico on which the petroleum products loading fee has not been previously paid.
B. For the privilege of importing gasoline or special fuel into this state for resale or consumption in this state there is imposed a fee determined as provided in Subsection [C] D of this section on each load of gasoline or special fuel imported into New Mexico for resale or consumption on which the petroleum products loading fee has not been previously paid. [For the purposes of this section, "load" means eight thousand gallons of gasoline or special fuel.]
C. To determine how many loads a person is to report under the provisions of this section, the person shall divide by eight thousand the total gallons of gasoline reported for the purposes of Section 7-13-3 NMSA 1978 as adjusted [under] pursuant to the provisions of Section 7-13-4 NMSA 1978 and the total gallons of special [fuels] fuel received in New Mexico less any gallons exempted under Section 7-13A-4 NMSA 1978. Loads shall be calculated to the nearest one-hundredth of a load.
[C.] D. The fee imposed by this section [is and] may be referred to as the "petroleum products loading fee" and shall be:
(1) one hundred fifty dollars ($150) per load [or] until the last distribution to the tax stabilization reserve is made pursuant to Section 10 of this 2017 act; and
(2) one month after the last distribution to the tax stabilization reserve is made pursuant Section 10 of this 2017 act, whichever of the following applies:
[(1) in the event] (a) forty dollars ($40.00) per load if, as certified by the secretary of environment, [certifies that] the unobligated balance of the corrective action fund at the end of the prior fiscal year equals or exceeds eighteen million dollars ($18,000,000); [the fee shall be set at forty dollars ($40.00) per load
(2) in the event] (b) eighty dollars ($80.00) per load if, as certified by the secretary of environment, [certifies that] the unobligated balance of the corrective action fund at the end of the prior fiscal year exceeds twelve million dollars ($12,000,000) but is less than eighteen million dollars ($18,000,000); [the fee shall be set at eighty dollars ($80.00) per load;
(3) in the event] (c) one hundred twenty dollars ($120) per load if, as certified by the secretary of environment, [certifies that] the unobligated balance of the corrective action fund at the end of the prior fiscal year exceeds six million dollars ($6,000,000) but is less than twelve million dollars ($12,000,000); [the fee shall be set at one hundred twenty dollars ($120) per load; and
(4) in the event] or
(d) one hundred fifty dollars ($150) if, as certified by the secretary of environment, [certifies that] the unobligated balance of the corrective action fund at the end of the prior fiscal year is less than six million dollars ($6,000,000). [the fee shall be set at one hundred fifty dollars ($150) per load.
D.] E. The amount of the petroleum products loading fee [set] determined pursuant to Paragraph [(1)] (2) [(3) or (4)] of Subsection [C] D of this section shall be imposed on the first day of the month following expiration of ninety days after the end of the fiscal year for which the certification was made.
[E.] F. As used in this section, ["unobligated balance of the corrective action fund" means corrective action fund equity less all known or anticipated liabilities against the fund] "load" means eight thousand gallons of gasoline or special fuel."
SECTION 15. Section 7-14-4 NMSA 1978 (being Laws 1988, Chapter 73, Section 14) is amended to read:
"7-14-4. DETERMINATION OF AMOUNT OF MOTOR VEHICLE EXCISE TAX.--The rate of the motor vehicle excise tax is [three] four percent and is applied to the price paid for the vehicle. If the price paid does not represent the value of the vehicle in the condition that existed at the time it was acquired, the tax rate shall be applied to the reasonable value of the vehicle in such condition at such time. However, allowances granted for vehicle trade-ins may be deducted from the price paid or the reasonable value of the vehicle purchased."
SECTION 16. 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 as follows:
A. seventy-five percent to the general fund; and
B. twenty-five percent to the:
(1) tax stabilization reserve until the last distribution to the tax stabilization reserve is made pursuant to Section 10 of this 2017 act; and
(2) state road maintenance fund one month after the last distribution is made pursuant to Section 10 of this 2017 act."
SECTION 17. Section 7-16A-3 NMSA 1978 (being Laws 1992, Chapter 51, Section 3, as amended) is amended to read:
"7-16A-3. IMPOSITION AND RATE OF TAX--DENOMINATION AS SPECIAL FUEL EXCISE TAX.--
A. For the privilege of receiving or using special fuel in this state, there is imposed an excise tax at a rate provided in Subsection B of this section on each gallon of special fuel received in New Mexico.
B. The tax imposed by Subsection A of this section shall be [twenty-one cents ($.21)] twenty-six cents ($.26) per gallon of special fuel received or used in New Mexico.
C. The tax imposed by this section may be called the "special fuel excise tax"."
SECTION 18. 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 and amounts distributed pursuant to the municipal arterial program pursuant to Section 7-1-6.28 NMSA 1978, 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) thirty-three percent for agreements entered into with counties;
(b) forty-nine percent for agreements entered into with municipalities;
(c) fourteen percent for agreements entered into with school districts; and
(d) 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 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 19. APPLICABILITY.--The provisions of Section 16 of this act apply to receipts of the motor vehicle excise tax and any associated interest and penalties that are collected on and after July 1, 2017.
SECTION 20. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2017.
- 27 -