HB 322

                                1  HOUSE BILL 322
                                2      57TH LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 2026
                                3  INTRODUCED BY
                                4  Cathrynn N. Brown
                                5
                                6
                                7
                                8
                                9
                                10  AN ACT
                                11   RELATING TO TRANSPORTATION; CREATING THE TRANSPORTATION TRUST
                                12   FUND AND THE TRANSPORTATION PROGRAM FUND; MAKING ANNUAL
                                13   DISTRIBUTIONS TO THE TRANSPORTATION PROGRAM FUND TO PROVIDE
                                14   MATCHING FUNDS FOR FEDERAL GRANTS; DISTRIBUTING A PORTION OF
                                15   GROSS RECEIPTS TAX REVENUE ATTRIBUTABLE TO THE SALE OF
                                16   ELECTRICITY TO THE TRANSPORTATION TRUST FUND; AMENDING
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                                17   DISTRIBUTIONS OF THE MOTOR VEHICLE EXCISE TAX; AMENDING CERTAIN
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                                18   SECTIONS OF LAWS 2021 THROUGH 2024 TO REQUIRE CERTAIN
                                19   UNEXPENDED GENERAL FUND CAPITAL OUTLAY APPROPRIATIONS TO REVERT
                                20   TO THE TRANSPORTATION TRUST FUND; MAKING AN APPROPRIATION.
                                21
                                22   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
                                23        SECTION 1.    [NEW MATERIAL] TRANSPORTATION TRUST FUND.--
                                24  A.   The "transportation trust fund" is created as a
                                25   nonreverting fund in the state treasury.     The fund consists of
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                                1    distributions, appropriations, gifts, grants and donations.
                                2    Income from investment of the fund shall be credited to the
                                3    fund.   Money in the fund shall be expended only as provided in
                                4    this section.
                                5  B.   The state investment officer, subject to the
                                6    approval of the state investment council and in consultation
                                7    with the state treasurer, shall invest money in the
                                8    transportation trust fund in accordance with the prudent
                                9    investor rule set forth in the Uniform Prudent Investor Act.
                                10  C.   The state investment officer shall submit an
                                11   annual report on the investments made pursuant to this section
                                12   no later than October 1 of each year to the legislative finance
                                13   committee, the state investment council, the revenue
                                14   stabilization and tax policy committee and any other
                                15   appropriate interim committees.
                                16  D.   On July 1, 2029 and each July 1 thereafter, a
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                                17   distribution shall be made from the transportation trust fund
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                                18   to the transportation program fund in an amount equal to five
                                19   percent of the average of the year-end market values of the
                                20   fund for the immediately preceding three calendar years.     If,
                                21   on July 1 of a year, the trust fund has been in effect for less
                                22   than three calendar years, the distribution shall be in an
                                23   amount equal to five percent of the average of the year-end
                                24   market values of the trust fund for the immediately preceding
                                25   number of calendar years that the trust fund has been in
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                                1    effect.
                                2  SECTION 2.   [NEW MATERIAL] TRANSPORTATION PROGRAM FUND.--
                                3    The "transportation program fund" is created in the state
                                4    treasury.     The fund consists of distributions, appropriations,
                                5    gifts, grants, donations and income from investment of the
                                6    fund.     The department of transportation shall administer the
                                7    fund.     Money in the fund is subject to appropriation by the
                                8    legislature to provide matching funds for federal grants for
                                9    transportation infrastructure projects authorized by the
                                10   legislature.      Expenditures from the fund shall be by warrant of
                                11   the secretary of finance and administration pursuant to
                                12   vouchers signed by the secretary of transportation or the
                                13   secretary's authorized representative.     Any unexpended balance
                                14   remaining at the end of a fiscal year shall revert to the
                                15   transportation trust fund.
                                16  SECTION 3.   A new section of the Tax Administration Act,
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                                17   Section 7-1-6.74 NMSA 1978, is enacted to read:
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                                18  "7-1-6.74.   [NEW MATERIAL] DISTRIBUTION--TRANSPORTATION
                                19   TRUST FUND.--A distribution pursuant to Section 7-1-6.1 NMSA
                                20   1978 shall be made to the transportation trust fund in an
                                21   amount equal to the following percentages of the taxable gross
                                22   receipts attributable to the sale of electricity:
                                23  A.   prior to July 1, 2032, one percent;
                                24  B.   on or after July 1, 2032 and prior to July 1,
                                25   2037, one and one-fourth percent;
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                                1  C.     on or after July 1, 2037 and prior to July 1,
                                2    2042, one and one-half percent;
                                3  D.     on or after July 1, 2042 and prior to July 1,
                                4    2047, one and three-fourths percent; and
                                5  E.     on or after July 1, 2047, two percent."
                                6  SECTION 4.    Section 7-14-10 NMSA 1978 (being Laws 1988,
                                7    Chapter 73, Section 20, as amended) is amended to read:
                                8  "7-14-10.    DISTRIBUTION OF PROCEEDS.--The receipts from
                                9    the tax and any associated interest and penalties shall be
                                10   deposited in the "motor vehicle suspense fund", hereby created
                                11   in the state treasury.       As of the end of each month, the net
                                12   receipts attributable to the tax and associated penalties and
                                13   interest shall be distributed as follows:
                                14  A.     prior to July 1, 2028:
                                15  (1)   thirty percent to the general fund;
                                16  (2)   thirty-five percent to the state road
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                                17   fund;
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                                18  (3)   fifteen percent to the transportation
                                19   project fund; and
                                20  (4)   twenty percent to the transportation trust
                                21   fund;
                                22  B.     on and after July 1, 2028, except as provided in
                                23   Subsection C of this section:
                                24  (1)   fifty percent to the state road fund;
                                25  (2)   twenty percent to the transportation
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                                1    project fund; and
                                2  (3)    thirty percent to the transportation trust
                                3    fund; and
                                4  C.   if gross receipts tax revenue in any twelve-
                                5    month period beginning July 1, 2031 and prior to July 1, 2042
                                6    is less than ninety percent of the gross receipts tax revenue
                                7    for the previous twelve-month period, as determined by the
                                8    department of finance and administration, then beginning July 1
                                9    following the determination:
                                10  [A.    fifty-nine and thirty-nine hundredths] (1)
                                11   fifty percent to the general fund;
                                12  [B.    twenty-one and eighty-six hundredths] (2)
                                13   twenty percent to the state road fund; [and
                                14  C.    eighteen and seventy-five hundredths] (3)
                                15   fifteen percent to the transportation project fund; and
                                16  (4)    fifteen percent to the transportation
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                                17   trust fund."
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                                18        SECTION 5.     Laws 2021, Chapter 138, Section 2 is amended
                                19   to read:
                                20        "SECTION 2.       GENERAL FUND APPROPRIATIONS--LIMITATIONS--
                                21   REVERSIONS.--
                                22  A.   Except as otherwise specifically provided by
                                23   law, the unexpended balance of an appropriation made in this
                                24   act from the general fund shall revert to the general fund:
                                25  (1)    no later than September 30 following:
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                                1  (a)   the end of fiscal year 2022 if the
                                2    project for which an appropriation was made has less than five
                                3    percent of the project's total appropriation amount subject to
                                4    a binding written agreement with a third party on that date;
                                5  (b)   the end of fiscal year 2023 for a
                                6    project for which an appropriation was made to purchase
                                7    vehicles, including emergency vehicles and other vehicles that
                                8    require special equipment; heavy equipment; books; educational
                                9    technology; or other equipment or furniture that is not related
                                10   to a more inclusive construction or renovation project; or
                                11  (c)   the end of fiscal year 2025 for a
                                12   project for which an appropriation was made related to an
                                13   inclusive construction or renovation project; or
                                14  (2)   within six months of completion of the
                                15   project for any other project for which an appropriation was
                                16   made, but no later than the end of fiscal year 2025.
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                                17  B.   Except for appropriations to the capital program
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                                18   fund, money from appropriations made in this act from the
                                19   general fund shall not be used to pay indirect project costs.
                                20  C.   Except as provided in Subsection D of this
                                21   section, the balance of an appropriation made from the general
                                22   fund shall revert in the time frame set forth in Subsection A
                                23   of this section to the capital projects fund.
                                24  D.   The balance of an appropriation made from the
                                25   general fund to the Indian affairs department or the aging and
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                                1    long-term services department for a project located on lands of
                                2    an Indian nation, tribe or pueblo shall revert in the time
                                3    frame set forth in Subsection A of this section to the tribal
                                4    infrastructure project fund.
                                5  E.   For the purposes of this section, "unexpended
                                6    balance" means the remainder of an appropriation after
                                7    reserving for unpaid costs and expenses subject to a binding
                                8    written agreement with a third party.
                                9  F.   Money that is appropriated from the general fund
                                10   pursuant to this act shall not be subject to a binding written
                                11   agreement with a third party prior to the authorized state
                                12   agency's approval to enter into that agreement.
                                13  G.   The unexpended balance of an appropriation made
                                14   in this act from the general fund that has not reverted on or
                                15   before the effective date of this 2026 act shall revert in the
                                16   time frame set forth in Subsection A of this section to the
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                                17   transportation trust fund."
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                                18  SECTION 6.    Laws 2022, Chapter 53, Section 2 is amended to
                                19   read:
                                20  "SECTION 2.    GENERAL FUND APPROPRIATIONS--LIMITATIONS--
                                21   REVERSIONS.--
                                22  A.   Except as otherwise specifically provided by
                                23   law, the unexpended balance of an appropriation made in this
                                24   act from the general fund shall revert to the general fund:
                                25  (1)   no later than September 30 following:
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                                1  (a)   the end of fiscal year 2023 if the
                                2    project for which an appropriation was made has less than five
                                3    percent of the project's total appropriation amount subject to
                                4    a binding written agreement with a third party on that date;
                                5  (b)   the end of fiscal year 2024 for a
                                6    project for which an appropriation was made to purchase
                                7    vehicles, including emergency vehicles and other vehicles that
                                8    require special equipment; heavy equipment; books; educational
                                9    technology; or other equipment or furniture that is not related
                                10   to a more inclusive construction or renovation project; or
                                11  (c)   the end of fiscal year 2026 for a
                                12   project for which an appropriation was made related to an
                                13   inclusive construction or renovation project; or
                                14  (2)   within six months of completion of the
                                15   project for any other project for which an appropriation was
                                16   made, but no later than the end of fiscal year 2026.
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                                17  B.   Money that is appropriated from the general fund
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                                18   pursuant to this act shall not be subject to a binding written
                                19   agreement with a third party prior to the authorized state
                                20   agency's approval to enter into that agreement.
                                21  C.   For the purposes of this section, "unexpended
                                22   balance" means the remainder of an appropriation after
                                23   reserving for unpaid costs and expenses subject to a binding
                                24   written agreement with a third party.
                                25  D.   The unexpended balance of an appropriation made
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                                1    in this act from the general fund that has not reverted on or
                                2    before the effective date of this 2026 act shall revert in the
                                3    time frame set forth in Subsection A of this section to the
                                4    transportation trust fund."
                                5  SECTION 7.    Laws 2023, Chapter 199, Section 1 is amended
                                6    to read:
                                7  "SECTION 1.    GENERAL FUND APPROPRIATIONS--LIMITATIONS--
                                8    REVERSIONS.--
                                9  A.   Except as otherwise specifically provided by
                                10   law, the unexpended balance of an appropriation made in this
                                11   act from the general fund shall revert to the general fund:
                                12  (1)   no later than September 30 following:
                                13  (a)   the end of fiscal year 2024 if the
                                14   project for which an appropriation was made has less than five
                                15   percent of the project's total appropriation amount subject to
                                16   a binding written agreement with a third party on that date;
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                                17  (b)   the end of fiscal year 2025 for a
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                                18   project for which an appropriation was made to purchase
                                19   vehicles, including emergency vehicles and other vehicles that
                                20   require special equipment; heavy equipment; books; educational
                                21   technology; or other equipment or furniture that is not related
                                22   to a more inclusive construction or renovation project; or
                                23  (c)   the end of fiscal year 2027 for a
                                24   project for which an appropriation was made related to an
                                25   inclusive construction or renovation project; or
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                                1  (2)   within six months of completion of the
                                2    project for any other project for which an appropriation was
                                3    made, but no later than the end of fiscal year 2027.
                                4  B.   Except for appropriations to the capital program
                                5    fund, money from appropriations made in this act shall not be
                                6    used to pay indirect project costs.
                                7  C.   Money that is appropriated from the general fund
                                8    pursuant to this act shall not be subject to a binding written
                                9    agreement with a third party prior to the authorized state
                                10   agency's approval to enter into that agreement.
                                11  D.   For the purposes of this section, "unexpended
                                12   balance" means the remainder of an appropriation after
                                13   reserving for unpaid costs and expenses subject to a binding
                                14   written agreement with a third party.
                                15  E.   The unexpended balance of an appropriation made
                                16   in this act from the general fund that has not reverted on or
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                                17   before the effective date of this 2026 act shall revert in the
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                                18   time frame set forth in Subsection A of this section to the
                                19   transportation trust fund."
                                20  SECTION 8.    Laws 2024, Chapter 66, Section 1 is amended to
                                21   read:
                                22  "SECTION 1.    GENERAL FUND APPROPRIATIONS--LIMITATIONS--
                                23   REVERSIONS.--
                                24  A.   Except as otherwise specifically provided by
                                25   law, the unexpended balance of an appropriation made in this
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                                1    act from the general fund shall revert to the general fund:
                                2  (1)   no later than September 30 following:
                                3  (a)   the end of fiscal year 2026 for a
                                4    project for which an appropriation was made to purchase
                                5    vehicles, including emergency vehicles and other vehicles that
                                6    require special equipment; heavy equipment; books; educational
                                7    technology; or other equipment or furniture that is not related
                                8    to a more inclusive construction or renovation project; or
                                9  (b)   the end of fiscal year 2028 for a
                                10   project for which an appropriation was made related to an
                                11   inclusive construction or renovation project; or
                                12  (2)   within six months of completion of the
                                13   project for any other project for which an appropriation was
                                14   made, but no later than the end of fiscal year 2028.
                                15  B.   The agencies named in this act shall certify to
                                16   the department of finance and administration that the money
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                                17   appropriated in this act is needed for the purposes specified
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                                18   in the applicable section of this act.     If an agency has not
                                19   certified the need for the appropriation for a particular
                                20   project by the end of fiscal year 2026, the authorization for
                                21   that project is void.
                                22  C.   Money that is appropriated from the general fund
                                23   pursuant to this act shall not be subject to a binding written
                                24   agreement with a third party prior to the authorized state
                                25   agency's approval to enter into that agreement.
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                                1  D.   For the purposes of this section, "unexpended
                                2    balance" means the remainder of an appropriation after
                                3    reserving for unpaid costs and expenses subject to a binding
                                4    written agreement with a third party.
                                5  E.   The unexpended balance of an appropriation made
                                6    in this act from the general fund that has not reverted on or
                                7    before the effective date of this 2026 act shall revert in the
                                8    time frame set forth in Subsection A of this section to the
                                9    transportation trust fund."
                                10  SECTION 9.    APPROPRIATION.--Four hundred million dollars
                                11   ($400,000,000) is appropriated from the general fund to the
                                12   transportation trust fund for expenditure in fiscal year 2027
                                13   and subsequent fiscal years to provide initial funding to the
                                14   fund.    Any unexpended balance remaining at the end of a fiscal
                                15   year shall not revert to the general fund.
                                16  SECTION 10.    EFFECTIVE DATE.--The effective date of the
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                                17   provisions of this act is July 1, 2026.
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