New Mexico § 67-3-28.2 - Local governments road fund created; uses

§ 67-3-28.2. Local governments road fund created; uses

A. There is created in the state treasury the “local governments road fund” to be

administered by the department. All income received from investment of the fund shall be credited to the fund. No money in the fund shall be used by the department to administer any program,

and except as provided in Subsection E of this section, no entity receiving a distribution

pursuant to a program requiring matching funds shall use another distribution made

pursuant to this section to meet the match required. B. The department may use up to five hundred thousand dollars ($500,000) annually

from the local governments road fund, to purchase at fair market value, for municipalities,

counties and land grants-mercedes that can demonstrate financial hardship as determined

by the department, automotive, major road and miscellaneous equipment that would otherwise

be sold at auction by the department as unusable for department purposes. The department shall adopt rules setting the procedure to carry out the purposes

of this subsection. C. Except for the amounts in Subsections B and E of this section, money in the local

governments road fund shall be distributed in the following amounts for the specified

purposes: (1) forty-two percent for the cooperative agreements program, to be used solely for

the cooperative agreements entered into pursuant to Section 67-3-28 NMSA 1978 and in accordance with the match authorized pursuant to Section 67-3-32 NMSA 1978; provided, however, that distribution amounts made pursuant to this paragraph

in each year shall be based on the following allocations: (a) thirty-three percent for agreements entered into with counties; (b) forty-nine percent for agreements entered into with municipalities; (c) fourteen percent for agreements entered into with school districts; and (d) four percent for agreements entered into with other entities; (2) sixteen percent for the municipal arterial program, to be used solely for the

necessary project development, construction, reconstruction, improvement, maintenance,

repair and right-of-way and material acquisition of and for those streets that are

principal extensions of rural state highways and of other streets not on the state

highway system but that qualify under the designated criteria established by the department. In entering into agreements with municipalities to provide funds for any project

qualifying for the municipal arterial program, the department shall give preference

to municipalities that contribute an amount equal to at least twenty-five percent

of the project cost, including a contribution made through funding received pursuant

to Subsection E of this section; (3) sixteen percent for school bus routes, to be used solely for cooperative agreements

entered into pursuant to Section 67-3-28 NMSA 1978 and in accordance with the match authorized pursuant to Section 67-3-32 NMSA 1978 for acquiring rights of way and constructing, maintaining, repairing, improving and

paving school bus routes and public school parking lots; and (4) twenty-six percent for the county arterial program, to be used for project development,

construction, reconstruction, improvement, maintenance, repair and right-of-way and

material acquisition of and for county roads for which individual counties have prioritized

road projects. Prior to entering into any agreements for projects with the counties for the following

fiscal year, in June of each year the department shall determine and certify the amount

to which each county is entitled pursuant to the following schedule: Road Mileage Category Based on Number of Miles Maintained by a County: Entitlement to County: 400 miles or under $250 for each mile 401 to 800 miles $100,000 plus $200 for each mile over 400 miles 801 to 1,200 miles $180,000 plus $150 for each mile over 800 miles 1,201 to 1,600 miles $240,000 plus $100 for each mile over 1,200 miles Over 1,600 miles $300,000 plus $50 for each mile over 1,600 miles. If in any year there is an insufficient amount in the fund of the county arterial

program to certify the total amount to which all counties are entitled, the department

shall decrease the entitlement amount due to each county in the same proportion as

the insufficiency is to the total entitlements to all counties. Distribution of an entitlement amount and an agreement entered into with a county

for any of the purposes for which the money may be spent requires an amount from the

county equal to at least twenty-five percent of the entitlement. The county contribution may be made through funds received pursuant to Subsection

E of this section. Any uncommitted or unencumbered balance remaining in the county arterial program

fund at the end of a fiscal year shall be transferred to the cooperative agreements

program specified in Paragraph (1) of this subsection for additional funding of that

program in the next fiscal year. D. The department may transfer funds from the state road fund to the local governments

road fund to facilitate cash flow for the funding of these local governments road

projects. The administrator of the local governments road fund shall reimburse the state road

fund in a timely manner for any such transfers. E. The department may distribute up to one million dollars ($1,000,000) per calendar

year of the money in the local governments road fund to municipalities and counties

that can demonstrate financial hardship, for use as all or a portion of the municipality's

or county's matching fund requirements pursuant to this section. In order to qualify for matching funds under this subsection, a county or municipality

shall provide the department with a financial hardship qualification certificate issued

by the department of finance and administration.