Bill > HB475

This bill creates a new Transportation Trust Fund in the New Mexico state treasury, which will be funded through various mechanisms including distributions from electricity sales taxes, motor vehicle excise taxes, and a direct appropriation of $400 million from the general fund. The fund will be managed by the state investment officer and invested according to the Prudent Investor Rule, with annual reporting required to legislative committees. Starting in July 2028, five percent of the fund's average market value will be transferred annually to the state road fund, specifically to provide matching funds for federal transportation infrastructure grants. The bill also allows the legislature to appropriate money from the Transportation Trust Fund to the general fund in emergency situations where other reserve funds have been exhausted, preventing a potential unconstitutional budget deficit. Additionally, the bill modifies how electricity and motor vehicle excise tax revenues are distributed, gradually increasing the percentage allocated to the Transportation Trust Fund over time, with percentages ranging from 1% to 2% for electricity tax distributions and changing motor vehicle excise tax allocation percentages between 2027 and 2041. The bill also includes provisions that cause unexpended general fund appropriations to revert to the Transportation Trust Fund under certain circumstances, providing an additional funding mechanism for the new fund.

Transportation and Infrastructure

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=475&year=25