New Mexico § 67-3-59.1 - State highway debentures; issuance; limits; approval; coupons

§ 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 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 and D 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 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 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. The state transportation commission may issue bonds to refund other bonds issued

pursuant to this section by exchange or current or advance refunding. F. 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. G. The bonds shall be executed with the manual or facsimile signature of the chairman

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 imprinted or otherwise affixed to the bonds. H. 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. I. 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. J. This section is full authority for the issuance and sale of the bonds, and the

bonds shall not be invalid for 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. K. 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. L. 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. M. In contracting for state highway projects to be paid in whole or in part with proceeds

of bonds authorized by 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. N. 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.