Summary:

 House Bill 145 (HB 145):  The act significantly amends existing statutes to increase the bonding authority of the State Transportation Commission, enabling it to finance a broader range of highway projects in New Mexico. 

 

Legislation Overview:

 House Bill 145 (HB 145):  The act authorizes the State Transportation Commission to issue an additional $1.5 billion in bonds for state highway projects. This amount is in addition to the previously authorized amounts, significantly expanding financial resources for highway infrastructure.

The bonds can finance various state highway projects, including those eligible for federal reimbursement or related to the Waste Isolation Pilot Project, showcasing a focus on both broad infrastructure needs and specific projects with federal backing.

The act provides explanations as shown in the following Subsections:

1.	Subsection C allows for specific bond amounts for different project categories, reflecting prioritized infrastructure projects and ensuring that funding aligns with strategic transportation goals.
2.	Subsection E outlines the additional $1.5 billion authority, stipulating that these funds are also secured by federal funds or state road fund taxes or fees.
3.	Subsections J & K detail the sale process, emphasizing transparency and competitive procedures for selling the bonds and procuring related financial services.
4.	Subsection L confirms the legal status of these bonds as investments and secures them as acceptable for public fund deposits, enhancing their marketability and security.
5.	Subsection M ensures that legislative changes do not impair outstanding bonds, protecting investors and the integrity of the bond issuance.
6.	Subsection N mandates the use of state lands for materials when practicable, promoting resource efficiency and benefiting state land trust beneficiaries.

The act offers financial flexibility by increasing the bonding limit; therefore, New Mexico can accelerate highway projects, potentially improving statewide transportation infrastructure more quickly.  Providing enhanced infrastructure can lead to economic benefits, including job creation during construction phases and improved efficiency in transportation that can benefit other sectors.  Legal safeguards and a clear outline of bond security and tax exemption status can make these bonds more attractive to investors, potentially lowering borrowing costs.

The State Transportation Commission needs to adjust its strategic planning and project prioritization to align with new funding capabilities.  While the commission has new bonding authority, the legislature retains oversight through the requirement of specific authorization for amounts exceeding the base limit.

Overall, this legislative act empowers New Mexico to significantly enhance and expedite its highway infrastructure projects, supported by a robust framework for bond issuance and financial management.  
 

Amendments:

 Amended on February 20, 2025 in HTPWC

HTPWCa/SB 145:  
 1.  On page 1, line 13, before the period, insert "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".
 2.  On page 4, line 17, after "projects", insert "identified in the statewide transportation improvement program".
 3.  On page 8, line 6, strike the closing quotation mark and between lines 6 and 7, insert:
 "P.  In the budget form submitted pursuant to Section 6-3-18 NMSA 1978, the department shall include a report on highway projects financed pursuant to this section.  The report shall include:
 (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 impacts; and department.
 (c)  an assessment of economic development
 (d)  other information deemed significant by the
(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."".