NMSA 1978, § 7-27-12.4 — 7-27-12.4

Authorization for severance tax bonds for severance tax
transportation fund; appropriation of proceeds.

# A.

The state board of finance may issue and sell severance tax bonds in fiscal years
2007 through 2009 in compliance with the Severance Tax Bonding Act in an amount not
exceeding a total of one hundred fifty million dollars ($150,000,000) when the
department of transportation certifies the need for the issuance of the bonds; provided
that:
(1) in fiscal year 2007, no more than fifty million dollars ($50,000,000) in
bonds shall be issued; and
(2) in each of fiscal years 2008 and 2009, no more than the lesser of fifty
million dollars ($50,000,000) or twelve and one-half percent of severance tax bonding
capacity, as determined pursuant to Section 7-27-10.1 NMSA 1978, shall be issued.

# 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 authorized amount provided for in this
subsection.

# C.

The proceeds from the sale of the bonds are appropriated as follows:
(1) proceeds of the bonds issued in fiscal year 2007 are appropriated to the
local government transportation fund for distribution as directed by the department of
transportation for projects pursuant to Section 6-21-6.12 NMSA 1978;
(2) twenty percent of the proceeds of the bonds issued in fiscal years 2008
and 2009 are appropriated to the department of transportation to perform routine
maintenance on state highways;
(3) forty percent of the proceeds of the bonds issued in fiscal years 2008 and
2009 are appropriated to the local government transportation fund for distribution as
directed by the department of transportation for projects pursuant to Section 6-21-6.12
NMSA 1978; and
(4) forty percent of the proceeds of the bonds issued in fiscal years 2008 and
2009 are appropriated to the department of transportation for the purpose of completing
those projects authorized in Paragraphs (1) and (3) through (38) of Subsection A of
Laws 2003 (1st S.S.), Chapter 3, Section 27, provided that the department shall comply
with the requirements of Subsections C, D and E of Section 67-3-59.4 NMSA 1978.

# D.

Money from the severance tax bonds provided for in this section shall not be
used to pay indirect costs. If the department of transportation has not certified the need
for the issuance of the bonds by July 1, 2009, the authorization provided in this section
shall expire.