HB 315: HIGHWAY DISTRICT PROJECT FUND

An Act Relating To Highways; Creating The Highway District Project Fund; Providing For A Distribution Of A Portion Of The Motor Vehicle Excise Tax To The Highway District Project Fund; Providing For Severance Tax Bonds For Highway Projects Impacted By Energy Development; Temporarily Redirecting Certain Local Governments Road Fund Money; Setting Requirements For The Funding Of Highway Projects Impacted By Energy Development; Making An Appropriation.

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MOD HB 315
HIGHWAY DISTRICT PROJECT FUND

Legislative URL:

HB 315 on nmlegis.gov

Emergency Clause:

No

Germane:

N/A

Location:

HTRC

Action:

[10] HTPWC/HTRC/HAFC-HTPWC [13] DP/a-HTRC API.

Issue(s):

Energy, Transportation

Related Legislators

Bill Sponsor:

Cathrynn Brown

Related Documents

Downloads:

Introduced
HTPWC Committee Report
Fiscal Impact Report

Summary

This piece of legislation creates the Highway District Project Fund. The bill states that the legislature finds that as a result of New Mexico being “in the midst of an oil and gas production boom bringing record earnings to the state and its institutions that depend on those earnings” the state and and local roads where energy development takes place due are deteriorating due to the heavy vehicles involved. It goes on to state the purpose of the act as providing:

“a fund for use by the department of transportation [NMDOT] and local governments dedicated to the maintenance, repair and rehabilitation of those highways and roads used by energy producers and necessary to energy production in New Mexico.”

The NMDOT will administer the Fund. A portion of the motor vehicle excise tax collected by the State will be distributed to the Fund so that by June of 2019 the Fund will have received $50 million. For receipts collected from July 1, 2014 through June 2019, distributions from the fund will be made only for projects in State Transportation Commission District 2 (the Permian Basin area in southeastern New Mexico) and District 5 (the San Juan Basin area in northwestern New Mexico).

This measure also authorizes the State Board of Finance to issue up to $30 million worth of severance tax bonds in fiscal years 2015 – 2017 for the same types of highway projects with the proceeds of the bonds being split between the Local Government Transportation Fund and the NMDOT for the same types of projects. It provides parameters for the use of those funds.

A benefit of this bill might be that New Mexico’s residents will have better roads to drive on in those areas that will benefit from the funding. A concern might be that the funding and road improvements may cause further development of the fossil fuel extraction industry in New Mexico rather than potentially encouraging expansion of New Mexico’s renewable energy resources.

A question might be why the energy industry does not pay for the road improvements given that its vehicles are causing the degradation? Another might be whether the funds would be better used to expand the State’s renewable energy industry?

Date of Summary:  2/5/2014

Outcome:

HB 315 died in the House Taxation and Revenue Committee.

Updated 7/31/14