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HB 559: SEVERANCE BONDS FOR HIGHWAY PROJECTS

An Act Relating To Highways; Authorizing The Issuance Of Severance Tax Bonds For Statewide Highway And Bridge Preservation, Rehabilitation And Reconstruction Projects That Will Enhance Safety And Economic Development; Allowing Maximum Use Of Federal Highway Administration Matching Funds; Making An Appropriation.

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MILD HB 559
SEVERANCE BONDS FOR HIGHWAY PROJECTS

Legislative URL:
HB 559 on nmlegis.gov
Emergency Clause:
No
Germane:
N/A
Location:
HWMC
Action:
[15] HTPWC/HAFC-HTPWC [28] DP-HAFC- w/drn - ref HWMC-HWMC API.
Issue(s):

Related Legislators

Bill Sponsor:

Related Documents

Downloads:
Introduced
HTPWC Committee Report
Fiscal Impact Report

Related Events

Upcoming:
Summary

This bill authorizes the State Board of Finance to issue and sell severance tax bonds in fiscal years 2016 through 2018 in an amount not exceeding a total of $180,000,000 when the Department of Transportation (NMDOT) certifies the need for the issuance of the bonds; provided that in each of fiscal years 2016, 2017 and 2018, no more than $60,000,000 in bonds may be issued.

Proceeds from the sale of the bonds are appropriated to the Department of Transportation for statewide highway and bridge preservation, rehabilitation and reconstruction projects identified by NMDOT in consultation with the Economic Development Department that will promote safety and local economic development and can be planned and brought to bid in each of fiscal year 2016, 2017 and 2018.

A potential benefit of this bill might be improvement of the state’s transportation infrastructure. A possible concern is that the state will be borrowing the funds against future income instead of generating current revenue sufficient to pay for the transportation projects.