0001| AN ACT | 0002| RELATING TO TRANSPORTATION; ABOLISHING THE STATE TRANSPORTATION | 0003| AUTHORITY; REPEALING THE RESOURCE TRANSPORTATION AND PASSENGER | 0004| TRANSPORTATION DEVELOPMENT ACT; PROVIDING FOR THE ISSUANCE OF | 0005| TRANSPORTATION BONDS BY THE STATE HIGHWAY COMMISSION; AUTHORIZING | 0006| THE STATE HIGHWAY COMMISSION TO ISSUE REFUNDING BONDS; PROVIDING | 0007| THE STATE HIGHWAY AND TRANSPORTATION DEPARTMENT WITH THE POWER | 0008| OF EMINENT DOMAIN FOR CERTAIN TRANSPORTATION PURPOSES; REPEALING | 0009| AND ENACTING SECTIONS OF THE NMSA 1978. | 0010| | 0011| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0012| Section 1. A new section of Chapter 67, Article 3 NMSA 1978 is enacted to read: | 0013| "STATE HIGHWAY AND TRANSPORTATION DEPARTMENT--POWER TO | 0014| ACQUIRE PROPERTY FOR TRANSPORTATION SYSTEMS--POWER OF EMINENT | 0015| DOMAIN.--The state highway and transportation department may: | 0016| A. acquire property by purchase, lease, donation, gift, bequest, devise or eminent | 0017| domain for the purpose of construction and operation of a transportation system; and | 0018| B. negotiate for the acquisition of property from any person, governmental entity, | 0019| Indian tribe or Indian pueblo for the construction and operation of a transportation system." | 0020| Section 2. A new section of Chapter 67, Article 3 NMSA 1978 is enacted to read: | 0021| "TRANSPORTATION BONDS.-- | 0022| A. The state highway commission may determine that interest or necessity | 0023| demands the issuance of revenue bonds to finance the development and construction of | 0024| transportation systems and may by resolution make and issue revenue bonds that shall be known | 0025| as "transportation bonds". The bonds shall be payable solely out of the net income to be derived | 0001| from the operation of the project, and the commission shall pledge irrevocably such income to | 0002| the payment of those bonds. The bonds shall not become a general obligation of the state or any | 0003| political subdivision of the state. | 0004| B. The proceeds from the sale of transportation bonds shall be used solely for the | 0005| purpose for which the bonds were issued. | 0006| C. Transportation bonds shall not be issued pursuant to this section unless the | 0007| state board of finance approves the issuance of the bonds, the principal amount of the bonds and | 0008| the maximum net effective interest rate on the bonds." | 0009| Section 3. A new section of Chapter 67, Article 3 NMSA 1978 is enacted to read: | 0010| "TRANSPORTATION BONDS--TERMS.--Transportation bonds issued by the state | 0011| highway commission: | 0012| A. shall be payable at such times as the commission may provide; | 0013| B. may be subject to prior redemption at the commission's option at such time | 0014| and upon such terms and conditions, with or without payment of premiums, as may be provided | 0015| in the resolution of the commission; | 0016| C. may mature at any time not exceeding fifty years after the date of issuance; | 0017| D. may be serial in form and maturity and may consist of one bond payable at one | 0018| time or in installments or may be in such other form as may be determined by the commission; | 0019| E. shall be sold for cash at, above or below par and at the effective interest rate | 0020| approved by the state board of finance; and | 0021| F. may be sold at a public or private sale." | 0022| Section 4. A new section of Chapter 67, Article 3 NMSA 1978 is enacted to read: | 0023| "REFUNDING BONDS.-- | 0024| A. Transportation bonds issued pursuant to the provisions of Section 2 of this act | 0025| that are outstanding may be refunded at any time by the state highway commission upon: | 0001| (1) the adoption of a resolution providing for the issuance of refunding | 0002| bonds; and | 0003| (2) the issuance of the refunding bonds in an amount the commission | 0004| determines is necessary to refund: | 0005| (a) the principal of the transportation bonds; | 0006| (b) all unpaid accrued and unaccrued interest on transportation | 0007| bonds to the normal maturity date or to selected prior redemption dates of the bonds; | 0008| (c) any redemption premiums; and | 0009| (d) all estimated costs, including any commission cost, incidental | 0010| to the issuance of the refunding bonds, as may be determined by the commission. | 0011| B. The principal amount of the refunding bonds may be equal to, less than or | 0012| greater than the principal amount of the bonds so refunded. | 0013| C. A refunding may be effected, whether the bonds to be refunded have then | 0014| matured or thereafter mature, either by sale of the refunding bonds and the application of the | 0015| proceeds thereof for the payment of the bonds to be refunded or by exchange of the refunding | 0016| bonds for the bonds to be refunded; provided that the bonds to be refunded shall not be canceled | 0017| without the consent of the holders to surrender their bonds for payment or exchange prior to the | 0018| date on which they are payable or if they are called for redemption prior to the date on which they | 0019| are by their terms subject to redemption. | 0020| D. The refunding bonds issued pursuant to this section shall be payable solely | 0021| from the revenues out of which transportation bonds may be payable or solely from those | 0022| amounts derived from an escrow as provided in this section, including amounts derived from the | 0023| investment of refunding bond proceeds and other legally available amounts also provided in this | 0024| section or from any combination of those sources. | 0025| E. Proceeds of refunding bonds shall either be applied immediately to the | 0001| retirement of the bonds being refunded or be placed in escrow in a commercial bank or trust | 0002| company that possesses and exercises trust powers. The escrowed proceeds may be invested in | 0003| short-term securities, long-term securities or both." | 0004| Section 5. A new section of Chapter 67, Article 3 NMSA 1978 is enacted to read: | 0005| "TRANSPORTATION BONDS ELIGIBLE FOR INVESTMENT.--Transportation bonds | 0006| issued by the state highway commission are securities in which public officers and public bodies | 0007| of this state and its political subdivisions and insurance companies, trust companies, banking | 0008| associations, | 0009| investment companies, executors, administrators, trustees and other fiduciaries may properly and | 0010| legally invest funds, including capital in their control or belonging to them. Such bonds are | 0011| securities that may properly and legally be deposited with and be received by a state or political | 0012| subdivision officer for which the deposit of bonds or obligations of the state is authorized by law. | 0013| No bonds shall be eligible for investment or deposit by or with the state or any of its political | 0014| subdivisions unless they have been rated AA or higher by an independent nationally recognized | 0015| bond rating service based solely on the security of the bonds as investments without resort to any | 0016| collateral guarantees." | 0017| Section 6. A new section of Chapter 67, Article 3 NMSA 1978 is enacted to read: | 0018| "TRANSPORTATION BONDS--EXEMPTION FROM TAXATION.--The construction, | 0019| operation and maintenance of a transportation project by the state highway commission shall | 0020| constitute the performance of an essential governmental function. As such, the income from the | 0021| transportation bonds issued pursuant to Chapter 67, Article 3 NMSA 1978 shall at all times be | 0022| free from taxation by the state and by its political subdivisions." | 0023| Section 7. A new section of Chapter 67, Article 3 NMSA 1978 is enacted to read: | 0024| "DEFINITION.--As used in Chapter 67, Article 3 NMSA 1978, "transportation system" | 0025| means facilities used for the transportation of natural resources, manufactured products or | 0001| passengers and includes communication and transportation structures and other facilities | 0002| necessary for the operation of the transportation facilities." | 0003| Section 8. TEMPORARY PROVISION--TRANSFER OF PERSONNEL, ASSETS | 0004| AND OBLIGATIONS.--On July 1, 1997: | 0005| A. all personnel, appropriations, money, records, property, equipment and | 0006| supplies of the state transportation authority shall be transferred to the state highway and | 0007| transportation department; and | 0008| B. all contracts, agreements and obligations of the state transportation authority | 0009| shall be binding and effective on the state highway and transportation department. | 0010| Section 9. REPEAL.--Sections 73-23-1 through 73-23-13 NMSA 1978 (being Laws | 0011| 1985 (1st. S.S.), Chapter 14, Sections 1 through 13, as amended) are repealed. | 0012| Section 10. EFFECTIVE DATE.--The effective date of the provisions of this act is | 0013| July 1, 1997. |