SENATE BILL 253
56th legislature - STATE OF NEW MEXICO - second session, 2024
William E. Sharer
RELATING TO CAPITAL EXPENDITURES; AUTHORIZING THE ISSUANCE OF SEVERANCE TAX BONDS FOR A CERTAIN FREIGHT LINE PROJECT; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of the Severance Tax Bonding Act is enacted to read:
"[NEW MATERIAL] AUTHORIZATION FOR SEVERANCE TAX BONDS FOR A FREIGHT RAIL LINE--APPROPRIATION OF PROCEEDS.--
A. The state board of finance may issue and sell severance tax bonds in 2025 through 2029 for a freight rail line project in McKinley and San Juan counties in compliance with the Severance Tax Bonding Act in an amount not to exceed a total of one hundred million dollars ($100,000,000); provided that the department of transportation certifies the need for the issuance of the bonds and that federal matching funds have been or shall be provided for the project.
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 department 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 amount authorized pursuant to Subsection A of this section.
C. The proceeds from the sale of the bonds are appropriated to the department of transportation for the purpose of completing the project.
D. Money from the severance tax bonds provided for in this section shall not be used to pay indirect costs. Any unexpended balance from proceeds of severance tax bonds issued for the project shall revert to the severance tax bonding fund within six months of completion of the project. If the department of transportation has not certified the need for the issuance of the bonds by December 31, 2029, the authorization provided in this section shall expire."