HOUSE BILL 284
50th legislature - STATE OF NEW MEXICO - second session, 2012
INTRODUCED BY
Antonio "Moe" Maestas
AN ACT
RELATING TO PUBLIC FINANCES; CREATING THE NEW MEXICO FILMMAKERS REVOLVING FUND; AUTHORIZING THE NEW MEXICO FINANCE AUTHORITY TO ISSUE AND SELL NEW MEXICO FILMMAKERS REVOLVING FUND BONDS; AUTHORIZING THE NEW MEXICO FINANCE AUTHORITY TO MAKE LOANS FROM THE FUND.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of the Statewide Economic Development Finance Act is enacted to read:
"[NEW MATERIAL] NEW MEXICO FILMMAKERS REVOLVING FUND CREATED.--
A. The "New Mexico filmmakers revolving fund" is created within the authority. The New Mexico filmmakers revolving fund shall be administered by the authority as a separate account and may consist of such subaccounts as the authority deems necessary to carry out the purposes of that fund. The authority shall establish procedures for administering the New Mexico filmmakers revolving fund in accordance with the Statewide Economic Development Finance Act, collecting applications from New Mexico filmmakers pursuant to this section, forwarding applications to the advisory council established pursuant to Subsection D of this section and accepting or rejecting applications.
B. The purpose of the New Mexico filmmakers revolving fund is to provide loans or loan guarantees pursuant to Subsection E of this section for a film project that:
(1) has been designated as a candidate for financing by the New Mexico film division of the economic development department;
(2) has a workforce consisting of at least eighty percent New Mexico residents working in any capacity on the film;
(3) has at least eighty percent of its total payroll costs, including pension and health care contributions, paid to New Mexico residents;
(4) films at least ninety percent of the film project in the state; and
(5) has at least ninety percent of the postproduction work performed in the state.
C. The New Mexico film division of the economic development department shall adopt rules for designating a candidate for financing pursuant to this 2012 act based on the recommendations of the advisory council.
D. An advisory council consisting of New Mexico residents shall review applications received from the authority and make recommendations to the New Mexico film division of the economic development department about which applicants to consider as candidates for financing pursuant to this 2012 act. The governor shall appoint advisory council members to serve terms until successors are appointed, without per diem or other compensation, as follows:
(1) one representative of a union of film workers who is nominated by each union to serve a three-year term;
(2) one representative of a union of actors, film directors or screen writers who is nominated by each union to serve a three-year term;
(3) one local governmental film liaison from each United States congressional district in New Mexico to serve a two-year term;
(4) one person with expertise in film finance who is recommended by the director of the New Mexico film division of the economic development department to serve a three-year term;
(5) one person with expertise in bond issuance who is recommended by the director of the New Mexico film division of the economic development department to serve a three-year term; and
(6) one film producer with experience filming in New Mexico who is recommended by the director of the New Mexico film division of the economic development department to serve a two-year term.
E. Except as otherwise provided in the Statewide Economic Development Finance Act, money from payments of principal of, interest on and other fees or charges paid to the authority in connection with New Mexico filmmakers revolving fund bonds, loans, project revenue bonds purchased with money on deposit in that fund, loan participations, loan guarantees, appropriations, grants, gifts and bequest shall be deposited in the New Mexico filmmakers revolving fund.
F. Money in the New Mexico filmmakers revolving fund is appropriated to the authority to:
(1) pay the reasonably necessary administrative and other costs incurred by the authority in evaluating, processing, originating and servicing New Mexico filmmakers revolving fund bonds, loans, project revenue bonds, loan participations and loan guarantees;
(2) purchase loan participations for projects;
(3) make loans for projects;
(4) make loan guarantees for projects; and
(5) purchase project revenue bonds.
G. Money in the New Mexico filmmakers revolving fund that is not needed for immediate disbursement, including money held in reserve, may be deposited or invested in the same manner as other funds administered by the authority.
H. Money on deposit in the New Mexico filmmakers revolving fund may be designated as a reserve for New Mexico filmmakers revolving fund bonds issued and for financing assistance provided from that fund by the authority pursuant to the Statewide Economic Development Finance Act and the authority may covenant in any resolution or trust indenture to maintain and replenish the reserve from money deposited in that fund.
I. Money in the New Mexico filmmakers revolving fund may be used to purchase project revenue bonds issued by the authority pursuant to the Statewide Economic Development Finance Act, which are payable from any designated source of revenues or collateral. Purchasing and holding the bonds shall not result in cancellation or merger of the bonds, notwithstanding the fact that the authority as the issuer of the bonds is obligated to make the required debt service payments and the fund held by the authority is entitled to receive the required debt service payments."
SECTION 2. A new section of the Statewide Economic Development Finance Act is enacted to read:
"[NEW MATERIAL] NEW MEXICO FILMMAKERS REVOLVING FUND BONDS OF THE AUTHORITY--USE--SECURITY.--
A. The authority may issue and sell New Mexico filmmakers revolving fund bonds in principal amounts it determines necessary to provide sufficient money for film projects, as provided in Section 1 of this 2012 act, by:
(1) making loans;
(2) entering into loan participations;
(3) providing loan guarantees;
(4) purchasing project revenue bonds;
(5) paying, funding or refunding of the principal of or interest or redemption premiums on New Mexico filmmakers revolving fund bonds issued by the authority, whether the New Mexico filmmakers revolving fund bonds or interest to be paid, funded or refunded have or have not become due;
(6) establishing or increasing reserves or sinking funds to secure or to pay principal, premium, if any, or interest on New Mexico filmmakers revolving fund bonds; and (7) paying all other costs or expenses of the authority incident to and necessary or convenient to carry out its duties pursuant to the Statewide Economic Development Finance Act.
B. All New Mexico filmmakers revolving fund bonds issued by the authority shall be payable solely from the New Mexico filmmakers revolving fund and the revenues, income and fees deposited in that fund, and the New Mexico filmmakers revolving fund bonds shall not create an obligation, debt or liability of the state. No breach of any pledge, obligation or agreement of the authority shall impose a pecuniary liability or a charge upon the general credit or taxing power of the state or any political subdivision of the state."
SECTION 3. Section 6-25-18 NMSA 1978 (being Laws 2005, Chapter 103, Section 15) is amended to read:
"6-25-18. ECONOMIC DEVELOPMENT REVOLVING FUND BONDS AND NEW MEXICO FILMMAKERS REVOLVING FUND BONDS--AUTHORIZATION FOR ISSUANCE--TERMS AND CONDITIONS.--
A. Economic development revolving fund bonds and New Mexico filmmakers revolving fund bonds of the authority shall be authorized by resolution of the authority and may be issued in one or more series. The economic development revolving fund bonds and the New Mexico filmmakers revolving fund bonds shall bear the dates, be in the form, be issued in the denominations, have terms and maturities, bear or accrete interest at rates and be payable and evidenced in the manner and times as the resolution of the authority or the trust agreement securing the economic development revolving fund bonds or the New Mexico filmmakers revolving fund bonds provides. The economic development revolving fund bonds or the New Mexico filmmakers revolving fund bonds may be redeemed with or without premiums prior to maturity, may be ranked or assigned priority status and may contain provisions not inconsistent with this subsection.
B. The economic development revolving fund bonds and the New Mexico filmmakers revolving fund bonds issued by the authority may be sold at any time at private or public sale at prices agreed upon by the authority.
C. Economic development revolving fund bonds or New Mexico filmmakers revolving fund bonds may be issued pursuant to the Statewide Economic Development Finance Act without obtaining the consent of any agency of the state and without any other proceeding or condition other than the proceedings or conditions specified in that act.
D. The economic development revolving fund bonds and the New Mexico filmmakers revolving fund bonds issued by the authority are negotiable instruments for all purposes of the Uniform Commercial Code.
E. Any resolution for the issuance of economic development revolving fund bonds or New Mexico filmmakers revolving fund bonds shall provide that each [economic development revolving fund] bond authorized shall recite that it is issued by the authority. The recital shall clearly state that the economic development revolving fund bonds or the New Mexico filmmakers revolving fund bonds are in full compliance with all of the provisions of the Statewide Economic Development Finance Act."
SECTION 4. Section 6-25-21 NMSA 1978 (being Laws 2005, Chapter 103, Section 18) is amended to read:
"6-25-21. REFUNDING BONDS.--The authority is authorized to issue economic development revolving fund bonds or New Mexico filmmakers revolving fund bonds for the purpose of refunding any economic development revolving fund bonds or New Mexico filmmakers revolving fund bonds then outstanding, including the payment of any redemption premiums and any interest accrued or to accrue to the date of redemption of the outstanding economic development revolving fund bonds or New Mexico filmmakers revolving fund bonds. Until the proceeds of the bonds issued for the purpose of refunding outstanding economic development revolving fund bonds or New Mexico filmmakers revolving fund bonds are applied to the purchase, retirement or redemption of the outstanding economic development revolving fund bonds or New Mexico filmmakers revolving fund bonds, the proceeds may be placed in escrow and be invested and reinvested. The interest, income and profits, if any, earned or realized on any such investment may also be applied to the payment of the outstanding economic development revolving fund bonds or New Mexico filmmakers revolving fund bonds to be refunded by purchase, retirement or redemption. After the terms of the escrow have been fully satisfied, any balance may be returned to the authority for use by it in any lawful manner. All such refunding bonds shall be issued and secured and shall be subject to the provisions of the Statewide Economic Development Finance Act in the same manner and to the same extent as any other bonds issued pursuant to that act."
SECTION 5. Section 6-25-22 NMSA 1978 (being Laws 2005, Chapter 103, Section 19) is amended to read:
"6-25-22. ECONOMIC DEVELOPMENT REVOLVING FUND, NEW MEXICO FILMMAKERS REVOLVING FUND AND PROJECT REVENUE BOND ANTICIPATION NOTES.--The authority is authorized to issue negotiable economic development revolving fund, New Mexico filmmakers revolving fund and project revenue bond anticipation notes and may renew the notes from time to time, but the maximum maturity of such notes, including renewals of such notes, shall not exceed ten years from the date of issue of the original notes. The notes shall be payable from any available money of the authority from payments made by an eligible entity or from the proceeds of sale of the bonds of the authority in anticipation of which such notes were issued. The notes may be issued for any purpose of the authority authorized by the Statewide Economic Development Finance Act. All such notes shall be issued and secured and shall be subject to the provisions of that act in the same manner and to the same extent as bonds issued pursuant to that act."
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