HOUSE BILL 42
56th legislature - STATE OF NEW MEXICO - second session, 2024
Dayan Hochman-Vigil and Michael Padilla and Joy Garratt
FOR THE TRANSPORTATION INFRASTRUCTURE REVENUE SUBCOMMITTEE
RELATING TO TRANSPORTATION; CREATING THE TRANSPORTATION TRUST FUND; PROVIDING FOR TRANSFERS FROM THE TRANSPORTATION TRUST FUND TO THE STATE ROAD FUND FOR CERTAIN PROJECTS PRIORITIZED BY THE DEPARTMENT OF TRANSPORTATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. [NEW MATERIAL] TRANSPORTATION TRUST FUND CREATED.--
A. The "transportation trust fund" is created as a nonreverting fund in the state treasury. The fund consists of distributions, appropriations, gifts, grants and donations. Income from investment of the fund shall be credited to the fund. Money in the fund shall be expended only as provided in this section.
B. The state investment officer, subject to the approval of the state investment council, shall invest money in the transportation trust fund:
(1) in accordance with the prudent investor rule set forth in the Uniform Prudent Investor Act; and
(2) in consultation with the state treasurer and the secretary of transportation.
C. The state investment officer shall report quarterly to the legislative finance committee and the state investment council on the investments made pursuant to this section. Annually, a report shall be submitted no later than October 1 each year to the legislative finance committee, the revenue stabilization and tax policy committee and any other appropriate interim committees.
D. Subject to the availability of funds, on July 1, 2027 and each July 1 thereafter, a transfer shall be made from the transportation trust fund to the state road fund in an amount equal to five percent of the average of the year-end market values of the transportation trust fund for the immediately preceding three calendar years. Money transferred pursuant to this subsection shall be expended only for approved projects prioritized by a cooperative and comprehensive process of the department of transportation that aligns with the department's long-range plans and addresses the multimodal needs of New Mexico's transportation customers.
E. In addition to the transfer pursuant to Subsection D of this section, money in the transportation trust fund may be:
(1) expended in the event that general fund balances, including all authorized revenues and transfers to the general fund and balances in the general fund operating reserve, the appropriation contingency fund, the tobacco settlement permanent fund, the state-support reserve fund and the tax stabilization reserve, will not meet the level of appropriations authorized from the general fund for a fiscal year. In that event, to avoid an unconstitutional deficit, the legislature may appropriate from the transportation trust fund to the general fund only the amount necessary to meet general fund appropriations for that fiscal year and only if the legislature has authorized transfers from the appropriation contingency fund, the general fund operating reserve, the tax stabilization reserve and the tobacco settlement permanent fund that exhaust those fund balances; or
(2) allocated by the department of transportation to the transit and rail division for approved, non-rail public transit projects in an amount that does not exceed one percent of the average of the year-end market values of the fund for the immediately preceding three calendar years.
SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2024.
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