46th legislature - STATE OF NEW MEXICO - first session, 2003
RELATING TO INDUSTRIAL REVENUE BONDS; PROVIDING CERTAIN NOTIFICATION REQUIREMENTS PRIOR TO ISSUANCE; PROVIDING FOR A MAXIMUM TWENTY-YEAR TERM; RESTRICTING, FOR BONDS ISSUED AFTER JANUARY 1, 2002, PROPERTY TAX EXEMPTIONS TO CERTAIN REAL PROPERTY INTERESTS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 3-32-6.1 NMSA 1978 (being Laws 1997, Chapter 216, Section 2 and also Laws 1997, Chapter 226, Section 2) is amended to read:
"3-32-6.1. [MUNICIPALITY OVER TWO HUNDRED THOUSAND]
NOTICE TO COUNTY.--
A. Prior to adopting an ordinance issuing
industrial revenue bonds [in a municipality with a population
in excess of two hundred thousand], the municipality shall give
notice to the [county] board of county commissioners and the
county assessor of its intent to consider the matter. The
[county] board and the county assessor shall be notified at
least [thirty] sixty days prior to the meeting at which final
action is to be taken so that comments can be transmitted [by
the county] to the municipality.
B. The [county] board of county commissioners and
the county assessor shall be able to forward [its] their
comments and any concerns to the city council, but there is no
approval required from the [county and the county does] board
or the county assessor and they do not have veto over the
proposed industrial revenue bond issuance.
C. The municipality and county shall jointly develop criteria for issuance of industrial revenue bonds by either government; provided, however, that industrial revenue bonds may be authorized and issued before development of the criteria is completed."
Section 2. Section 3-32-7 NMSA 1978 (being Laws 1965, Chapter 300, Section 14-31-4, as amended) is amended to read:
"3-32-7. BONDS ISSUED TO FINANCE PROJECTS.--Bonds issued
by a municipality under authority of the Industrial Revenue
Bond Act shall not be the general obligation of such
municipality within the meaning of Article 9, Sections 12 and
13 of the constitution of New Mexico. The bonds shall be
payable solely out of the revenue derived from the projects [to
finance] for which the bonds are issued. Bonds and interest
coupons, if any, issued under authority of the Industrial
Revenue Bond Act shall never constitute an indebtedness of the
municipality within the meaning of any state constitutional
provision or statutory limitation and shall never constitute or
give rise to a pecuniary liability of the municipality or a
charge against its general credit or taxing powers, and such
fact shall be plainly stated on the face of each bond. The
bonds may be executed and delivered at any time, and from time
to time, may be in such form and denominations, may be of such
tenor, may be in registered or bearer form either as to
principal or interest or both, may be payable in such
installments and at such time or times not exceeding [thirty]
twenty years from their date, may be payable at such place or
places, may bear interest at such rate or rates payable at such
place or places and evidenced in such manner and may contain
such provisions not inconsistent with the Industrial Revenue
Bond Act, all as shall be provided in the ordinance and
proceedings of the governing body whereunder the bonds are
authorized to be issued. Any bonds issued under the authority
of the Industrial Revenue Bond Act may be sold at public or
private sale in such manner and from time to time as may be
determined by the governing body to be most advantageous, and
the municipality may pay all expenses, [attorneys'] attorney,
engineering and architects' fees, premiums and commissions
[which] that the governing body may deem necessary or
advantageous in connection with the authorization, sale and
issuance of the bonds. All bonds issued under the authority of
the Industrial Revenue Bond Act and all interest coupons
applicable thereto, if any, shall be construed to be
negotiable."
Section 3. Section 4-59-4.1 NMSA 1978 (being Laws 1997, Chapter 216, Section 4 and also Laws 1997, Chapter 226, Section 4) is amended to read:
"4-59-4.1. CLASS A COUNTY--NOTICE TO MUNICIPALITY [OVER
TWO HUNDRED THOUSAND] AND COUNTY ASSESSOR.--
A. Prior to adopting an ordinance issuing county
industrial revenue bonds, a [class A] county shall give notice
to [a] the county assessor and the largest municipality [with a
population in excess of two hundred thousand] located within
the county of its intent to consider the matter. The county
assessor and the municipality shall be notified at least
[thirty] sixty days prior to the meeting at which final action
is to be taken so that comments can be transmitted [by the
municipality] to the county.
B. The county assessor and the municipality shall
be able to forward [its] their comments and any concerns to the
board of county commissioners, but there is no approval
required from the municipality or the county assessor and [the
municipality does] they do not have veto over the proposed
county industrial revenue bond issuance.
C. The county and the municipality shall jointly develop criteria for issuance of industrial revenue bonds by either government; provided, however, that county industrial revenue bonds may be authorized and issued before development of the criteria is completed."
Section 4. Section 4-59-5 NMSA 1978 (being Laws 1975, Chapter 286, Section 5, as amended) is amended to read:
"4-59-5. BONDS ISSUED TO FINANCE PROJECTS.--
A. Bonds issued by a county under authority of the County Industrial Revenue Bond Act shall not be the general obligation of such county within the meaning of Article 9, Sections 10 and 13 of the constitution of New Mexico. The bonds shall be payable solely out of the revenue derived from the projects for which the bonds are issued. Bonds and interest coupons, if any, issued under authority of the County Industrial Revenue Bond Act shall never constitute an indebtedness of the county within the meaning of any state constitutional provision or statutory limitation and shall never constitute or give rise to a pecuniary liability of the county or a charge against its general credit or taxing powers, and such fact shall be plainly stated on the face of each bond.
B. Such bonds may be executed and delivered at any
time, and from time to time, may be in such form and
denominations, may be of such tenor, may be in registered or
bearer form either as to principal or interest or both, may be
payable in such installments and at such time or times not
exceeding [thirty] twenty years from their date, may be payable
at such place or places, may bear interest at such rate payable
at such place or places and evidenced in such manner and may
contain such provisions not inconsistent with this section, all
as shall be provided in the ordinance and proceedings of the
governing body under which the bonds shall be authorized to be
issued.
C. Any bonds issued under the authority of the
County Industrial Revenue Bond Act may be sold at public or
private sale in such manner and from time to time as may be
determined by the commission to be most advantageous, and the
county may pay all expenses, [attorneys'] attorney, engineering
and architects' fees, premiums and commissions [which] that the
commission may deem necessary or advantageous in connection
with the authorization, sale and issuance of the bonds.
D. All bonds issued under the authority of the County Industrial Revenue Bond Act and all applicable interest coupons shall be construed to be negotiable."
Section 5. Section 7-36-3 NMSA 1978 (being Laws 1975, Chapter 218, Section 1, as amended) is amended to read:
"7-36-3. INDUSTRIAL REVENUE BOND AND POLLUTION CONTROL BOND PROJECT PROPERTY--TAX STATUS.--
A. Property interests of a lessee in project
property held under a lease from a county or a municipality
under authority of an industrial revenue bond or pollution
control revenue bond act are exempt from property taxation for
as long as there is an outstanding bonded indebtedness under
the terms of [the] revenue bonds outstanding on January 1, 2002
and issued for the acquisition of the project property, but in
no event for a period of more than thirty years from the date
of execution of the first lease of the project to the lessee by
the county or municipality.
B. Real property interests of a lessee in project property held under a lease from a county or a municipality under authority of an industrial revenue bond or pollution control revenue bond act are exempt from property taxation for as long as there is an outstanding bonded indebtedness under the terms of revenue bonds issued on or after January 1, 2002 for the acquisition of the project property, but in no event for a period of more than twenty years from the date of execution of the first lease of the project to the lessee by the county or municipality.
[B.] C. Property interests of a person, other than
a public utility, arising out of the purchase of a project,
authorized by the Industrial Revenue Bond Act, the County
Industrial Revenue Bond Act or the Pollution Control Revenue
Bond Act and acquired with the proceeds of revenue bonds issued
before January 1, 2002, are exempt from property taxation for
as long as the project purchaser remains liable to the project
seller for any part of the purchase price, but not to exceed
thirty years from the date of execution of the sale agreement.
D. Real property interests of a person, other than a public utility, arising out of the purchase of a project, authorized by the Industrial Revenue Bond Act, the County Industrial Revenue Bond Act or the Pollution Control Revenue Bond Act and acquired with the proceeds of revenue bonds issued on or after January 1, 2002, are exempt from property taxation for as long as the project purchaser remains liable to the project seller for any part of the purchase price, but not to exceed twenty years from the date of execution of the sale agreement.
[C.] E. The exemptions from property taxation under
[Subsections A and B of] this section are not cumulative."