STATE HIGHWAY PROJECT BONDS

SB 2
Page 1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
AN ACT
RELATING TO THE FINANCING OF HIGHWAY PROJECTS; PROVIDING
ADDITIONAL BONDING AUTHORITY TO THE STATE TRANSPORTATION
COMMISSION FOR STATE HIGHWAY PROJECTS IDENTIFIED IN THE
STATEWIDE TRANSPORTATION IMPROVEMENT PROGRAM; REQUIRING THE
DEPARTMENT OF TRANSPORTATION TO INCLUDE A REPORT ON HIGHWAY
PROJECT SELECTION AND PRIORITIES FINANCED BY BONDS IN ITS
ANNUAL BUDGET REQUEST; INCREASING THE WEIGHT DISTANCE TAX FOR
MOTOR VEHICLES OTHER THAN BUSES; INCREASING REGISTRATION FEES
FOR PASSENGER VEHICLES; REQUIRING ADDITIONAL REGISTRATION
FEES FOR ELECTRIC AND PLUG-IN HYBRID ELECTRIC VEHICLES AND
DISTRIBUTING THE ADDITIONAL FEES TO THE STATE ROAD FUND;
ADJUSTING CERTAIN FORMULAIC DISTRIBUTIONS OF MOTOR VEHICLE
FEES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 7-15A-6 NMSA 1978 (being Laws 1988,
Chapter 73, Section 33, as amended) is amended to read:
"7-15A-6. TAX RATE FOR MOTOR VEHICLES OTHER THAN
BUSES--REDUCTION OF RATE FOR ONE-WAY HAULS.--
A. For on-highway operations of motor vehicles
other than buses, the weight distance tax shall be computed
in accordance with the following schedule:
Declared Gross Weight Tax Rate
(Gross Vehicle Weight) (Mills per Mile)
SB 2
Page 2
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26,001 to 28,000 14.86
28,001 to 30,000 16.04
30,001 to 32,000 17.24
32,001 to 34,000 18.41
34,001 to 36,000 19.60
36,001 to 38,000 20.78
38,001 to 40,000 22.59
40,001 to 42,000 24.37
42,001 to 44,000 26.14
44,001 to 46,000 27.93
46,001 to 48,000 29.71
48,001 to 50,000 31.50
50,001 to 52,000 33.28
52,001 to 54,000 35.05
54,001 to 56,000 36.84
56,001 to 58,000 38.64
58,001 to 60,000 40.41
60,001 to 62,000 42.17
62,001 to 64,000 43.98
64,001 to 66,000 45.77
66,001 to 68,000 47.53
68,001 to 70,000 49.30
70,001 to 72,000 51.11
72,001 to 74,000 53.00
74,001 to 76,000 54.96
SB 2
Page 3
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
76,001 to 78,000 56.98
78,001 and over 59.10.
B. All motor vehicles for which the tax is
computed under Subsection A of this section shall pay a tax
that is two-thirds of the tax computed under Subsection A of
this section if:
(1) the motor vehicle is customarily used
for one-way haul;
(2) forty-five percent or more of the
mileage traveled by the motor vehicle for a registration year
is mileage that is traveled empty of all load; and
(3) the registrant, owner or operator of the
vehicle attempting to qualify under this subsection has made
a sworn application to the department to be classified under
this subsection for a registration year and has given
whatever information is required by the department to
determine the eligibility of the vehicle to be classified
under this subsection and the vehicle has been so
classified."
SECTION 2. Section 66-6-2 NMSA 1978 (being Laws 1978,
Chapter 35, Section 337, as amended) is amended to read:
"66-6-2. PASSENGER VEHICLES--REGISTRATION FEES.--For
the registration of motor vehicles other than motorcycles,
trucks, buses and tractors, the division shall collect the
following fees for each twelve-month registration period:
SB 2
Page 4
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
A. for a vehicle whose gross factory shipping
weight is not more than two thousand pounds, thirty-three
dollars seventy-five cents ($33.75); provided, however, that
after five years of registration, calculated from the date
when the vehicle was first registered in this or another
state, the fee is twenty-six dollars twenty-five cents
($26.25);
B. for a vehicle whose gross factory shipping
weight is more than two thousand but not more than three
thousand pounds, forty-eight dollars seventy-five cents
($48.75); provided, however, that after five years of
registration, calculated from the date when the vehicle was
first registered in this or another state, the fee is
thirty-eight dollars seventy-five cents ($38.75);
C. for a vehicle whose gross factory shipping
weight is more than three thousand pounds, seventy dollars
($70.00); provided, however, that after five years of
registration, calculated from the date when the vehicle was
first registered in this or another state, the fee is
fifty-six dollars twenty-five cents ($56.25); and
D. for a vehicle registered pursuant to the
provisions of this section, a tire recycling fee of one
dollar fifty cents ($1.50)."
SECTION 3. A new section of the Motor Vehicle Code is
enacted to read:
SB 2
Page 5
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
"ADDITIONAL REGISTRATION FEE--ELECTRIC AND PLUG-IN
HYBRID ELECTRIC VEHICLES.--
A. For registration of vehicles subject to the
registration fees imposed by Section 66-6-2 NMSA 1978, there
is imposed an additional annual fee due at the time of
initial registration and subsequent registration renewals in
the following amounts for each twelve-month period that an
electric vehicle with a gross vehicle weight of twenty-six
thousand pounds or less is registered:
(1) beginning January 1, 2027 and prior to
January 1, 2028, seventy dollars ($70.00);
(2) beginning January 1, 2028 and prior to
January 1, 2029, eighty dollars ($80.00); and
(3) on and after January 1, 2029, ninety
dollars ($90.00).
B. For registration of vehicles subject to the
registration fees imposed by Section 66-6-2 NMSA 1978, there
is imposed an additional annual fee due at the time of
initial registration and subsequent registration renewals in
the following amounts for each twelve-month period that a
plug-in hybrid electric vehicle with a gross vehicle weight
of twenty-six thousand pounds or less is registered:
(1) beginning January 1, 2027 and prior to
January 1, 2028, thirty-five dollars ($35.00);
(2) beginning January 1, 2028 and prior to
SB 2
Page 6
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
January 1, 2029, forty dollars ($40.00); and
(3) on and after January 1, 2029, forty-five
dollars ($45.00).
C. All fees collected pursuant to this section
shall be paid to the state treasurer to the credit of the
motor vehicle suspense fund with distribution in accordance
with Section 66-6-23 NMSA 1978.
D. The division shall determine whether a motor
vehicle is an electric vehicle or a plug-in hybrid electric
vehicle based on the vehicle's fuel type or power train
classification as identified through the vehicle
identification number decoding process or other standardized
vehicle attribute data source used by the division."
SECTION 4. Section 66-6-23 NMSA 1978 (being Laws 1978,
Chapter 35, Section 358, as amended) is amended to read:
"66-6-23. DISPOSITION OF FEES.--
A. After the necessary disbursements for refunds
and other purposes have been made, the money remaining in the
motor vehicle suspense fund, except for remittances received
within the previous two months that are unidentified as to
source or disposition, shall be distributed as follows:
(1) to each municipality, county or fee
agent operating a motor vehicle field office:
(a) an amount equal to six dollars
($6.00) per driver's license and five dollars ($5.00) per
SB 2
Page 7
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
identification card or motor vehicle or motorboat
registration or title transaction performed;
(b) for each such agent determined by
the secretary pursuant to Section 66-2-16 NMSA 1978 to have
performed ten thousand or more transactions in the preceding
fiscal year, other than a class A county with a population
exceeding three hundred thousand or a municipality with a
population exceeding three hundred thousand that has been
designated as an agent pursuant to Section 66-2-14.1 NMSA
1978, an amount equal to one dollar ($1.00) in addition to
the amount distributed pursuant to Subparagraph (a) of this
paragraph for each driver's license, identification card,
motor vehicle registration, motorboat registration or title
transaction performed; and
(c) to each military installation
designated as a fee agent pursuant to Section 66-2-14.1 NMSA
1978, an amount equal to one dollar fifty cents ($1.50) in
addition to the amount distributed pursuant to Subparagraph
(a) of this paragraph for each administrative service fee
remitted by the military installation to the department
pursuant to Subsection A of Section 66-2-16 NMSA 1978;
(2) to each municipality or county, other
than a class A county with a population exceeding three
hundred thousand or a municipality with a population
exceeding three hundred thousand that has been designated as
SB 2
Page 8
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
an agent pursuant to Section 66-2-14.1 NMSA 1978, operating a
motor vehicle field office, an amount equal to one dollar
fifty cents ($1.50) for each administrative service fee
remitted by that county or municipality to the department
pursuant to the provisions of Subsection A of Section 66-2-16
NMSA 1978;
(3) to the state road fund:
(a) an amount equal to the fees
collected pursuant to Sections 66-7-413 and 66-7-413.4
NMSA 1978;
(b) an amount equal to the fee
collected pursuant to Section 66-3-417 NMSA 1978;
(c) the remainder of each driver's
license fee collected by the department employees from an
applicant to whom a license is granted after deducting from
the driver's license fee the amount of the distribution
authorized in Paragraph (1) of this subsection with respect
to that collected driver's license fee;
(d) an amount equal to fifty percent of
the fees collected pursuant to Section 66-6-19 NMSA 1978; and
(e) an amount equal to the fees
collected pursuant to Section 3 of this 2026 act;
(4) to the local governments road fund, the
amount of the fees collected pursuant to Subsection B of
Section 66-5-33.1 NMSA 1978 and the remainder of the fees
SB 2
Page 9
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
collected pursuant to Subsection A of Section 66-5-408 NMSA
1978;
(5) to the department:
(a) any amounts reimbursed to the
department pursuant to Subsection D of Section 66-2-14.1 NMSA
1978;
(b) an amount equal to two dollars
($2.00) of each motorcycle registration fee collected
pursuant to Section 66-6-1 NMSA 1978;
(c) an amount equal to the fees
provided for in Subsection D of Section 66-2-7 NMSA 1978,
Subsection E of Section 66-2-16 NMSA 1978, Subsections K and
L of Section 66-3-6 NMSA 1978 other than the administrative
fee, Subsection C of Section 66-5-44 NMSA 1978 and Subsection
B of Section 66-5-408 NMSA 1978;
(d) the amounts due to the department
for the manufacture and issuance of a special registration
plate collected pursuant to the section of law authorizing
the issuance of the specialty plate;
(e) an amount equal to the registration
fees collected pursuant to Section 66-6-6.1 NMSA 1978 for the
purposes of enforcing the provisions of the Mandatory
Financial Responsibility Act and for creating and maintaining
a multilanguage noncommercial driver's license testing
program; and after those purposes are met, the balance of the
SB 2
Page 10
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
registration fees shall be distributed to the department to
defray the costs of operating the division;
(f) an amount equal to fifty cents
($.50) for each administrative fee remitted to the department
by a county or municipality operating a motor vehicle field
office pursuant to Subsection A of Section 66-2-16 NMSA 1978;
(g) an amount equal to one dollar
twenty-five cents ($1.25) for each administrative fee
collected by the department or any of its agents other than a
county or municipality operating a motor vehicle field office
pursuant to Subsection A of Section 66-2-16 NMSA 1978; and
(h) an amount equal to the royalties or
other consideration paid by commercial users of databases of
motor vehicle-related records of the department pursuant to
Subsection C of Section 14-3-15.1 NMSA 1978 for the purpose
of defraying the costs of maintaining databases of motor
vehicle-related records of the department; and after that
purpose is met, the balance of the royalties and other
consideration shall be distributed to the department to
defray the costs of operating the division or for use
pursuant to Subsection F of Section 66-6-13 NMSA 1978;
(6) to each New Mexico institution of higher
education, an amount equal to that part of the fees
distributed pursuant to Paragraph (2) of Subsection D of
Section 66-3-416 NMSA 1978 proportionate to the number of
SB 2
Page 11
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
special registration plates issued in the name of the
institution to all such special registration plates issued in
the name of all institutions;
(7) to the armed forces veterans license
fund, the amount to be distributed pursuant to Paragraph (2)
of Subsection E of Section 66-3-419 NMSA 1978;
(8) to the children's trust fund, the amount
to be distributed pursuant to Paragraph (2) of Subsection D
of Section 66-3-420 NMSA 1978;
(9) to the department of transportation, an
amount equal to the fees collected pursuant to Section
66-5-35 NMSA 1978;
(10) to the state equalization guarantee
distribution made annually pursuant to the general
appropriation act, an amount equal to one hundred percent of
the driver safety fee collected pursuant to Subsection D of
Section 66-5-44 NMSA 1978;
(11) to the motorcycle training fund, seven
dollars ($7.00) of each motorcycle registration fee collected
pursuant to Section 66-6-1 NMSA 1978;
(12) to the recycling and illegal dumping
fund:
(a) fifty cents ($.50) of the tire
recycling fee collected pursuant to the provisions of Section
66-6-1 NMSA 1978;
SB 2
Page 12
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
(b) fifty cents ($.50) of each of the
tire recycling fees collected pursuant to the provisions of
Sections 66-6-2 and 66-6-4 NMSA 1978; and
(c) twenty-five cents ($.25) of each of
the tire recycling fees collected pursuant to Sections 66-6-5
and 66-6-8 NMSA 1978;
(13) to the highway infrastructure fund:
(a) fifty cents ($.50) of the tire
recycling fee collected pursuant to the provisions of Section
66-6-1 NMSA 1978;
(b) one dollar ($1.00) of each of the
tire recycling fees collected pursuant to the provisions of
Sections 66-6-2 and 66-6-4 NMSA 1978; and
(c) twenty-five cents ($.25) of each of
the tire recycling fees collected pursuant to Sections 66-6-5
and 66-6-8 NMSA 1978;
(14) to each county, an amount equal to
fifty percent of the fees collected pursuant to Section
66-6-19 NMSA 1978 multiplied by a fraction, the numerator of
which is the total mileage of public roads maintained by the
county and the denominator of which is the total mileage of
public roads maintained by all counties in the state;
(15) to the litter control and
beautification fund, an amount equal to the fees collected
pursuant to Section 66-6-6.2 NMSA 1978;
SB 2
Page 13
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
(16) to the local government division of the
department of finance and administration, an amount equal to
the fees collected pursuant to Section 66-3-424.3 NMSA 1978
for distribution to each county to support animal control
spaying and neutering programs in an amount proportionate to
the number of residents of that county who have purchased pet
care special registration plates pursuant to Section
66-3-424.3 NMSA 1978; and
(17) to the Cumbres and Toltec scenic
railroad commission, twenty-five dollars ($25.00) collected
pursuant to the Cumbres and Toltec scenic railroad special
registration plate.
B. The balance, exclusive of unidentified
remittances, shall be distributed in accordance with Section
66-6-23.1 NMSA 1978.
C. If any of the paragraphs, subsections or
sections referred to in Subsection A of this section are
recompiled or otherwise redesignated without a corresponding
change to Subsection A of this section, the reference in
Subsection A of this section shall be construed to be the
recompiled or redesignated paragraph, subsection or section."
SECTION 5. Section 66-6-23.1 NMSA 1978 (being Laws
1999, Chapter 49, Section 8, as amended) is amended to read:
"66-6-23.1. FORMULAIC DISTRIBUTION.--
A. The balance from Section 66-6-23 NMSA 1978
SB 2
Page 14
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
shall be transferred or distributed by the state treasurer on
or before the last day of the month next after its receipt,
as follows:
(1) seventy-nine and seventy-two hundredths
percent shall be distributed to the state road fund;
(2) six and eight-hundredths percent shall
be transferred to each county in the proportion, determined
by the department in accordance with Subsection B of this
section, that the registration fees for vehicles in that
county are to the total registration fees for vehicles in all
counties;
(3) six and eight-hundredths percent shall
be transferred to the counties, with each county receiving an
amount equal to the proportion, determined by the secretary
of transportation in accordance with Subsection D of this
section, that the mileage of public roads maintained by the
county is to the total mileage of public roads maintained by
all counties of the state. Amounts distributed to each
county in accordance with this paragraph shall be credited to
the respective county road fund and be used for the
improvement and maintenance of the public roads in the county
and to pay for the acquisition of rights of way and material
pits. For this purpose, the board of county commissioners of
each of the respective counties shall certify by April 1 of
each year to the secretary of transportation the total
SB 2
Page 15
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
mileage as of April 1 of that year; provided that in their
report, the boards of county commissioners shall identify
each of the public roads maintained by them by name, route
and location. By agreement and in cooperation with the
department of transportation, the boards of county
commissioners of the various counties may use or designate
any of the funds provided in this paragraph for a federal aid
program;
(4) three and twenty-five hundredths percent
shall be allocated among the counties in the proportion,
determined by the department in accordance with Subsection B
of this section, that the registration fees for vehicles in
that county are to the total registration fees for vehicles
in all counties. The amount allocated to each county shall
be transferred to the incorporated municipalities within the
county in the proportion, determined by the department of
finance and administration in accordance with Subsection C of
this section, that the sum of net taxable value, as that term
is defined in the Property Tax Code, plus the assessed value,
as that term is used in the Oil and Gas Ad Valorem Production
Tax Act and in the Oil and Gas Production Equipment Ad
Valorem Tax Act, determined for the incorporated municipality
is to the sum of net taxable value plus assessed value
determined for all incorporated municipalities within the
county. Amounts transferred to incorporated municipalities
SB 2
Page 16
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
pursuant to the provisions of this paragraph shall be used
for the construction, maintenance and repair of streets
within the municipality and for payment of paving assessments
against property owned by federal, county or municipal
governments. In a county in which there are no incorporated
municipalities, the amount allocated pursuant to this
paragraph shall be transferred to the county government road
fund and used in accordance with the provisions of Paragraph
(3) of this subsection; and
(5) four and eighty-seven hundredths percent
shall be allocated among the counties in the proportion,
determined by the department of finance and administration in
accordance with Subsection C of this section, that the
registration fees for vehicles in that county are to the
total registration fees for vehicles in all counties. The
amount allocated to each county shall be transferred to the
county and incorporated municipalities within the county in
the proportion, determined by the department of finance and
administration in accordance with Subsection B of this
section, that the computed taxes due for the county and each
incorporated municipality within the county bear to the total
computed taxes due for the county and incorporated
municipalities within the county. For the purposes of this
paragraph, the term "computed taxes due" for a jurisdiction
means the sum of the net taxable value, as that term is
SB 2
Page 17
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
defined in the Property Tax Code, plus the assessed value, as
that term is used in the Oil and Gas Ad Valorem Production
Tax Act and in the Oil and Gas Production Equipment Ad
Valorem Tax Act, for that jurisdiction multiplied by an
average of the rates for residential and nonresidential
property imposed for that jurisdiction pursuant to Subsection
B of Section 7-37-7 NMSA 1978.
B. To carry out the provisions of this section,
during the month of June of each year:
(1) the department shall determine and
certify to the department of finance and administration the
proportions that the department is required to determine
pursuant to Subsection A of this section using information
for the preceding calendar year on the number of vehicles
registered in each county based on the address of the owner
or place where the vehicle is principally located, the
registration fees for the vehicles registered in each county,
the total number of vehicles registered in the state and the
total registration fees for all vehicles registered in the
state; and
(2) the department of finance and
administration shall determine the proportions that the
department of finance and administration is required to
determine pursuant to this subsection based upon the net
taxable value, as that term is defined in the Property Tax
SB 2
Page 18
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Code, and the assessed value, as that term is used in the Oil
and Gas Ad Valorem Production Tax Act and the Oil and Gas
Production Equipment Ad Valorem Tax Act, for the preceding
tax year and the tax rates imposed pursuant to Subsection B
of Section 7-37-7 NMSA 1978 in the preceding September.
C. By June 30 of each year, the department of
finance and administration shall determine the appropriate
percentage of money to be transferred to each county and
municipality for each purpose in accordance with Subsection A
of this section based upon the proportions determined by or
certified to the department of finance and administration.
The percentages determined shall be used to compute the
amounts to be transferred to the counties and municipalities
during the succeeding fiscal year.
D. The board of county commissioners of each of
the respective counties shall, by April 1 of every year,
certify reports to the secretary of transportation of the
total mileage of public roads maintained by each county as of
April 1 of every year; provided that in their reports, the
boards of county commissioners shall identify each of the
public roads maintained by them by name, route and location.
By July 1 of every year, the secretary of transportation
shall verify the reports of the counties and revise, if
necessary, the total mileage of public roads maintained by
each county. The mileage verified by the secretary of
SB 2
Page 19
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
transportation shall be the official mileage of public roads
maintained by each county. Distribution of amounts to a
county for road purposes shall be made in accordance with
this section.
E. If a county has not made the required mileage
certification pursuant to Section 67-3-28.3 NMSA 1978 by
April 1 of any year, the secretary of transportation shall
estimate the mileage maintained by those counties for the
purpose of making distribution to all counties, and the
amount calculated to be distributed each month to those
counties not certifying mileage shall be reduced by one-third
each month for that fiscal year, and that amount not
distributed to those counties shall be distributed equally to
all counties that have certified mileages."
SECTION 6. Section 67-3-59.1 NMSA 1978 (being Laws
1989, Chapter 157, Section 1, as amended) is amended to read:
"67-3-59.1. STATE HIGHWAY DEBENTURES--ISSUANCE--
LIMITS--APPROVAL--COUPONS.--
A. In order to provide funds to finance state
highway projects, including state highway projects that are
required for the waste isolation pilot project and are
eligible for federal reimbursement or payment as authorized
by federal legislation, the state transportation commission
is authorized, subject to the limitations of this section, to
issue bonds from time to time, payable from federal funds not
SB 2
Page 20
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
otherwise obligated that are paid into the state road fund
and the proceeds of the collection of taxes and fees that are
required by law to be paid into the state road fund and not
otherwise pledged solely to the payment of outstanding bonds
and debentures.
B. Except as provided in Subsections C, D and E of
this section, the total aggregate outstanding principal
amount of bonds issued from time to time pursuant to this
section, secured by or payable from federal funds not
otherwise obligated that are paid into the state road fund
and the proceeds from the collection of taxes and fees
required by law to be paid into the state road fund, shall
not, without additional authorization of the state
legislature, exceed one hundred fifty million dollars
($150,000,000) at any given time, subject to the following
provisions:
(1) the total aggregate outstanding
principal amount of bonds issued for state highway projects
that are required for the waste isolation pilot project and
are eligible for federal reimbursement or payment as
authorized by federal legislation shall not exceed one
hundred million dollars ($100,000,000); and
(2) the total aggregate outstanding
principal amount of bonds issued for state highway projects
other than state highway projects that are required for the
SB 2
Page 21
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
waste isolation pilot project and are eligible for federal
reimbursement or payment as authorized by federal legislation
shall not exceed fifty million dollars ($50,000,000).
C. Upon specific authorization and appropriation
by the legislature, and subject to the limitations of
Subsection D of this section, an additional amount of bonds
may be issued pursuant to this section for state highway
projects, to be secured by or payable from taxes or fees
required by law to be paid into the state road fund and
federal funds not otherwise obligated that are paid into the
state road fund, and, as applicable, taxes or fees required
by law to be paid into the highway infrastructure fund, as
follows:
(1) an aggregate outstanding principal
amount of bonds, not to exceed six hundred twenty-four
million dollars ($624,000,000), for major highway
infrastructure projects for which the department has, prior
to January 1, 1998, submitted or initiated the process of
submitting a plan to the federal highway administration for
innovative financing pursuant to 23 USCA Sections 122 and
307;
(2) an aggregate outstanding principal
amount of bonds, not to exceed one hundred million dollars
($100,000,000), for state highway projects that are required
for the waste isolation pilot project and are eligible for
SB 2
Page 22
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
federal reimbursement; and
(3) an aggregate outstanding principal
amount of bonds, not to exceed four hundred million dollars
($400,000,000), for other state highway projects.
D. The total amount of bonds that may be issued by
the state transportation commission for state highway
projects pursuant to Subsection C of this section shall not
exceed a total aggregate outstanding principal amount of:
(1) three hundred million dollars
($300,000,000) prior to July 1, 1999;
(2) six hundred million dollars
($600,000,000) from July 1, 1999 through June 30, 2000;
(3) nine hundred million dollars
($900,000,000) from July 1, 2000 through June 30, 2001; and
(4) one billion one hundred twenty-four
million dollars ($1,124,000,000) after June 30, 2001.
E. An additional one billion five hundred million
dollars ($1,500,000,000) of total bond proceeds may be issued
pursuant to this section for state highway projects
identified in the statewide transportation improvement
program to be secured by or payable from federal funds or
from taxes or fees not otherwise obligated and required by
law to be paid into the state road fund; provided that the
issuance of the bonds shall not cause the aggregate
outstanding principal amount of bonds issued by the state
SB 2
Page 23
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
transportation commission to exceed one billion one hundred
twenty-four million dollars ($1,124,000,000). Bond proceeds
issued pursuant to this subsection shall not be used,
directly or indirectly, to redeem, refund, defease or
otherwise retire any previously issued bonds or other debt
obligations of the state transportation commission. The
commission shall not issue bonds pursuant to this subsection
if the average issuance in every fiscal year for which the
bonds may be issued exceeds two hundred ninety million
dollars ($290,000,000), including a fiscal year in which no
bonds are issued; provided that the commission may issue
bonds in an amount up to two hundred twenty million dollars
($220,000,000) for fiscal year 2026 to secure associated
federal grant funding for projects; and provided further that
bonds issued by the commission shall not exceed a total of
one hundred thirty million dollars ($130,000,000) during the
December 2026 bond sale.
F. Beginning on January 1, 2027, for bonds issued
pursuant to Subsection E of this section, the department
shall provide the legislature with a list of the proposed
bond sales for that calendar year no later than the first day
of the regular session for that year. The list shall
include:
(1) for each project, the cost, readiness
and funding secured to date; and
SB 2
Page 24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
(2) up to three contingency projects
identified pursuant to Subsection E of this section that
could replace a proposed project in the event of an
unforeseen circumstance that would delay the bond sale on
that project. The department shall report to the
legislature, or the legislative finance committee if the
legislature is not in session, within two weeks of
determining that a contingency project will replace the
proposed project.
G. The state transportation commission may issue
bonds to refund other bonds issued pursuant to this section
by exchange or current or advance refunding.
H. Each series of bonds shall have a maturity of
no more than twenty-five years from the date of issuance.
The state transportation commission shall determine all other
terms, covenants and conditions of the bonds; provided that
the bonds shall not be issued pursuant to this section unless
the state board of finance approves the issuance of the bonds
and the principal amount of and interest rate or maximum net
effective interest rate on the bonds.
I. The bonds shall be executed with the manual or
facsimile signature of the chair of the state transportation
commission, countersigned by the state treasurer and attested
to by the secretary of the state transportation commission,
with the seal of the state transportation commission
SB 2
Page 25
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
imprinted or otherwise affixed to the bonds.
J. Proceeds of the bonds may be used to pay
expenses incurred in the preparation, issuance and sale of
the bonds and, together with the earnings on the proceeds of
the bonds, may be used to pay rebate, penalty, interest and
other obligations relating to the bonds and the proceeds of
the bonds under the Internal Revenue Code of 1986, as
amended.
K. The bonds may be sold at a public or negotiated
sale at, above or below par or through the New Mexico finance
authority. A negotiated sale shall be made with one or more
investment bankers whose services are obtained through a
competitive proposal process. For any sale, the state
transportation commission or the New Mexico finance authority
shall also procure the services of any financial advisor or
bond counsel through a competitive proposal process. If sold
at public sale, a notice of the time and place of sale shall
be published in a newspaper of general circulation in the
state, and in any other newspaper determined in the
resolution authorizing the issuance of the bonds, once each
week for two consecutive weeks prior to the date of sale.
The bonds may be purchased by the state treasurer or state
investment officer.
L. This section is full authority for the issuance
and sale of the bonds, and the bonds shall not be invalid for
SB 2
Page 26
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
any irregularity or defect in the proceedings for their
issuance and sale and shall be incontestable in the hands of
bona fide purchasers or holders of the bond for value.
M. The bonds shall be legal investments for a
person or board charged with the investment of public funds
and may be accepted as security for a deposit of public money
and, with the interest thereon, are exempt from taxation by
the state and a political subdivision or agency of the state.
N. Any law authorizing the imposition or
distribution of taxes or fees paid into the state road fund
or the highway infrastructure fund or that affects those
taxes and fees shall not be amended or repealed or otherwise
directly or indirectly modified so as to impair outstanding
bonds secured by a pledge of revenues from those taxes and
fees paid into the state road fund or the highway
infrastructure fund, unless the bonds have been discharged in
full or provisions have been made for a full discharge. In
addition, while any bonds issued by the state transportation
commission pursuant to the provisions of this section remain
outstanding, the powers or duties of the commission shall not
be diminished or impaired in any manner that will affect
adversely the interests and rights of the holder of such
bonds.
O. In contracting for state highway projects to be
paid in whole or in part with proceeds of bonds authorized by
SB 2
Page 27
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
this section, the department shall require that any sand,
gravel, caliche or similar material needed for the project
shall, if practicable, be mined from state lands. Each
contract shall provide that the contractor notify the
commissioner of public lands of the need for the material and
that, through lease or purchase, the material shall be mined
from state lands if:
(1) the material needed is available from
state lands in the vicinity of the project;
(2) the commissioner determines that the
lease or purchase is in the best interest of the state land
trust beneficiaries; and
(3) the cost to the contractor for the
material, including the costs of transportation, is
competitive with other available material from non-state
lands.
P. Bonds issued pursuant to this section shall be
paid solely from federal funds not otherwise obligated and
taxes and fees deposited into the state road fund and, as
applicable, the highway infrastructure fund, and shall not
constitute a general obligation of the state.
Q. In the budget form submitted pursuant to
Section 6-3-18 NMSA 1978, the department shall include a
report on highway projects to be financed pursuant to this
section. The report shall include:
SB 2
Page 28
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
(1) justification for the selection and
priority ranking of each project, including:
(a) traffic counts, accident rates and
the expected improvements to traffic flow and health and
safety;
(b) the ranking of the pavement and
substructure conditions;
(c) an assessment of economic
development impacts; and
(d) other information deemed
significant by the department;
(2) the expected life of the proposed
project;
(3) the amount of revenue required to pay
the principal and interest of outstanding and proposed bonds
based on a five- and twenty-year forecast of the state road
fund; and
(4) the effect of the bond program on the
department's construction and maintenance program."
SECTION 7. EFFECTIVE DATES.--
A. The effective date of the provisions of
Sections 1, 2 and 5 of this act is July 1, 2026.
B. The effective date of the provisions of
Sections 3 and 4 of this act is January 1, 2027.