SENATE CORPORATIONS AND TRANSPORTATION COMMITTEE SUBSTITUTE FOR

SENATE BILL 845

47th legislature - STATE OF NEW MEXICO - first session, 2005

AN ACT

RELATING TO TAXATION; PROVIDING FOR A CHANGE IN FINANCING PROCEDURES FOR METROPOLITAN REDEVELOPMENT PROJECTS USING CERTAIN PROPERTY TAX REVENUES; PROVIDING FOR VOTER APPROVAL OF THE ISSUANCE OF BONDS SECURED BY PROPERTY TAXES PURSUANT TO THE TAX INCREMENT LAW; REQUIRING THAT THOSE BONDS BE SOLD TO THE NEW MEXICO FINANCE AUTHORITY; PROVIDING ELECTION PROCEDURES FOR THE FORMATION OF DISTRICTS; PROVIDING FOR FINANCING OF METROPOLITAN REDEVELOPMENT PROJECTS BY THE ISSUANCE OF BONDS SECURED BY CERTAIN MUNICIPAL GROSS RECEIPTS TAX REVENUE INCREASES ATTRIBUTABLE TO CERTAIN DISTRICTS; CREATING A FUND; PROVIDING DISTRIBUTIONS; AMENDING, REPEALING AND ENACTING SECTIONS OF THE NMSA 1978; MAKING AN APPROPRIATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. Section 3-60A-3 NMSA 1978 (being Laws 1979, Chapter 391, Section 3) is amended to read:

     "3-60A-3. LEGISLATIVE INTENT.--

          A. It is the intent of the legislature by the passage of the Metropolitan Redevelopment Code to authorize [municipalities] districts to acquire, own, lease, improve and dispose of properties in a metropolitan redevelopment area to the end that such municipalities may be able to promote industry and develop trade or other economic activity by inducing profit or nonprofit corporations, federal governmental offices, hospitals and manufacturing, industrial, commercial or business enterprises to locate, expand or remain in such area, to mitigate the serious threat of extensive unemployment in a metropolitan redevelopment area and to secure and maintain a balanced and stable economy in an area declared to be a slum or blighted area.

          B. It is the further intent of the legislature to [authorize municipalities] promote the public health, welfare, convenience and prosperity by authorizing districts to acquire, own, lease, improve and dispose of properties so that:

                (1) adequate medical care, residential housing and facilities for the disposal of sewage and solid waste may be provided; [and]

                (2) industrial, manufacturing, commercial or business activities may [be begun or expanded] begin or expand in these areas;

                (3) [furnishing] water, energy and gas may be provided;

                (4) [more] adequate facilities for sports events and activities and recreation activities, conventions and trade shows may be provided;

                (5) [more] parking facilities or storage or training facilities may be provided; and

                (6) [more] adequate research, product-testing and administrative facilities may be provided [all of which promote the public health, welfare, safety, convenience and prosperity].

          C. It is [therefore] the [intention] intent of the legislature to vest municipalities or districts with all powers that may be necessary to enable them to accomplish [such] the purposes [which] enumerated in this section, and those powers shall [in all respects] be exercised for the benefit of the inhabitants of this state and municipalities of the state and of districts for the promotion of their health, safety, welfare, convenience and prosperity.

          D. It is not intended by the Metropolitan Redevelopment Code to:

                (1) authorize any [municipality] district to operate any manufacturing, industrial, commercial or business enterprise or any research, product-testing or administrative facilities of such enterprise [Nor is it the intent of that code to]; or

                (2) prohibit the operation by a municipality of residential housing facilities, health care facilities, sewage or solid waste disposal facilities or the furnishing of water, sports or recreation facilities, convention or trade show facilities, airports, public transportation facilities or operations, parking facilities or storage or training facilities by [any] a municipality."

     Section 2. Section 3-60A-4 NMSA 1978 (being Laws 1979, Chapter 391, Section 4, as amended) is amended to read:

     "3-60A-4. DEFINITIONS.--As used in the Metropolitan Redevelopment Code:

          A. "public body" means a municipality, board, commission, authority, district or [any] other political subdivision or public body of the state;

          B. "local governing body" means the city council, [or] city commission [of a city, the] or board of trustees of a [town or village] municipality; the council of an incorporated county; or the board of county commissioners of an H class county;

          C. "mayor" means the mayor or the chairman of the city commission or other officer or body having the duties customarily imposed on the head of a municipality;

          D. "municipality" means [any] an incorporated city, town or village, whether incorporated under general act, special act or special charter, an incorporated county or an H class county;

          E. "clerk" means the clerk or other official of [the] a municipality who is the chief custodian of the official records of the municipality;

          F. "federal government" includes the United States of America or [any] an agency or instrumentality, corporate or otherwise, of the United States;

          G. "state" means the state of New Mexico;

          H. "slum area" means an area within the area of operation in which there are numerous residential or nonresidential buildings, improvements and structures [whether residential or nonresidential, which, by reason of its dilapidation, deterioration, age, obsolescence] that are dilapidated, deteriorated, aged or obsolete or that have inadequate provision for ventilation, light, air or sanitation or the area lacks open spaces or has a high density of population or overcrowding or [the existence of] there exists in the area conditions that endanger life or property by fire or other causes, and the area is conducive to ill health, transmission of disease, infant mortality, juvenile delinquency or crime and is detrimental to the public health, safety, morals or welfare;

          I. "blighted area" means an area within the area of operation other than a slum area that [because of the presence of a substantial number of deteriorated or deteriorating structures, predominance of defective or inadequate street layout, faulty lot layout in relation to size, adequacy, accessibility or usefulness, insanitary or unsafe conditions, deterioration of site or other improvements, diversity of ownership, tax or special assessment delinquency exceeding the fair value of the land, defective or unusual conditions of title, improper subdivision or lack of adequate housing facilities in the area or obsolete or impractical planning and platting or an area where a significant number of commercial or mercantile businesses have closed or significantly reduced their operations due to the economic losses or loss of profit due to operating in the area, low levels of commercial or industrial activity or redevelopment or any combination of such factors] substantially impairs or arrests the sound growth and economic health and well-being of a municipality or locale within a municipality or an area that retards the provisions of housing accommodations or constitutes an economic or social burden and is a menace to the public health, safety, morals or welfare in its present condition and use because of the presence of a substantial number of deteriorated or deteriorating structures; predominance of defective or inadequate street layout; faulty lot layout in relation to size, adequacy, accessibility or usefulness; insanitary or unsafe conditions; deterioration of site or other improvements; diversity of ownership; tax or special assessment delinquency exceeding the fair value of the land; defective or unusual conditions of title; improper subdivision; lack of adequate housing facilities in the area; or obsolete or impractical planning and platting or an area where a significant number of commercial or mercantile businesses have closed or significantly reduced their operations due to the economic losses or loss of profit due to operating in the area, low levels of commercial or industrial activity or redevelopment or any combination of such factors;

          J. "metropolitan redevelopment project" or "project" means an activity, undertaking or series of activities or undertakings designed to eliminate slums or blighted areas in areas designated as metropolitan redevelopment areas and [that] the activity or undertaking conforms to an approved plan for the area for slum clearance and redevelopment, rehabilitation and conservation;

          K. "slum clearance and redevelopment" means the use of those powers authorized by the Metropolitan Redevelopment Code [for the purpose of eliminating] to eliminate slum areas and [undertaking] undertake activities authorized by the Metropolitan Redevelopment Code to rejuvenate or revitalize those areas so that the conditions that caused those areas to be designated slum areas are eliminated;

          L. "rehabilitation" or "conservation" means the restoration and renewal of a slum or blighted area or portion thereof in accordance with [any] an approved plan by use of powers granted by the Metropolitan Redevelopment Code;

          M. "metropolitan redevelopment area" means a slum area or a blighted area or a combination thereof that [the] a local governing body [so finds and declares and] designates as appropriate for a metropolitan redevelopment project;

          N. "metropolitan redevelopment plan" means a plan [as it exists from time to time] for one or more metropolitan redevelopment areas or for a metropolitan redevelopment project [which plan shall] that:

                (1) [seek] seeks to eliminate the problems created by a slum area or blighted area;

                (2) [conform] conforms to the general plan for the municipality as a whole; and

                (3) [be] is sufficient to indicate:

                     (a) the proposed activities to be carried out in the area, including [but not limited to] any proposals for land acquisition; [proposals for] demolition and removal of structures; redevelopment; [proposals for] improvements, rehabilitation and conservation; zoning and planning changes; land uses, maximum densities, building restrictions and requirements; and

                     (b) the plan's relationship to definite local objectives respecting land uses, improved traffic patterns and controls, public transportation, public utilities, recreational and community facilities, housing facilities, commercial activities or enterprises, industrial or manufacturing use and other public improvements;

          O. "real property" includes all lands, including improvements and fixtures [thereon] on those lands, and property of any nature appurtenant [thereto] to or used in connection [therewith] with those lands and every estate, interest, legal or equitable right [and] or use, [legal or equitable, therein] including terms for years and liens by way of judgment, mortgage or otherwise;

          P. "bonds" means any bonds, including refunding bonds, notes, interim certificates, certification of indebtedness, debentures [metropolitan redevelopment bonds] or other securities evidencing an obligation and issued under the provisions of the Metropolitan Redevelopment Code or other obligations;

          Q. "obligee" includes [any] a bondholder, agent or trustee for [any] a bondholder or lessor demising to the municipality or district property used in connection with a metropolitan redevelopment project or [any] an assignee [or assignees] of [such] a lessor's interest or any part thereof;

          R. "person" means [any] an individual, firm, partnership, corporation, company, association, joint stock association or body politic or the state or any political subdivision thereof and [shall further include] includes any trustee, receiver, assignee or other person acting in a similar representative capacity;

          S. "area of operation" means the area within the [corporate] limits of [the municipality] a district and the area outside of [the corporate] those limits but within five miles of such limits or otherwise on [municipally] district- owned property wherever located, except that it shall not include [any] an area that lies within the territorial boundaries of another municipality unless an ordinance has been adopted by the governing body of the other municipality declaring a need therefor;

          T. "board" or "commission" means a board, commission, department, division, office, body or other unit of the municipality designated by the local governing body to perform functions authorized by the Metropolitan Redevelopment Code as directed by the local governing body; [and]

          U. "public [officer] official" means [any] a person who is in charge of [any] a department or branch of government of [the] a municipality;

          V. "district" means a tax increment financing district formed pursuant to the Metropolitan Redevelopment Code;

          W. "district board" means the board of directors of a district;

          X. "tax increment bonds" means revenue bonds issued by a district pursuant to the Metropolitan Redevelopment Code to finance a metropolitan redevelopment project;

          Y. "qualified elector" means any person who is qualified to vote under the provisions of the constitution of New Mexico and the United States constitution; and

          Z. "voter" means any qualified elector who is registered under the provisions of the Election Code."

     Section 3. Section 3-60A-8 NMSA 1978 (being Laws 1979, Chapter 391, Section 8) is amended to read:

     "3-60A-8. DESIGNATION OF A METROPOLITAN REDEVELOPMENT AREA.--

          A. A municipality shall [not] prepare a metropolitan redevelopment plan for an area [unless] if the governing body has, by resolution, determined the area to be a slum area or a blighted area or a combination thereof and designated the area as appropriate for a metropolitan redevelopment project [which]. That resolution may be adopted only after the governing body [shall have] has caused to be published in a newspaper of general circulation within the area of operation of the municipality a notice [which shall contain] that contains a general description of the area and the date, time and place where the governing body shall hold a public hearing to consider the resolution and a notice that any interested party may appear and speak to the issue of the adoption of the resolution.

          B. [Such] Notice shall be published at least twice, and the last publication shall be not less than twenty days before the hearing. The owner of any real property affected by the resolution [shall have] has the right to file in the district court of the county within which the municipality is located, within twenty days after the adoption of the resolution, an action to set aside the determination made by the governing body of the municipality.

          [C. A municipality shall not acquire real property for a metropolitan redevelopment project unless the local governing body has approved a metropolitan redevelopment plan relating to the metropolitan redevelopment area in which the real property is located.]"

     Section 4. Section 3-60A-10 NMSA 1978 (being Laws 1979, Chapter 391, Section 10) is amended to read:

     "3-60A-10. POWERS OF [MUNICIPALITY] MUNICIPALITIES AND DISTRICTS.--

          A. Every [municipality] district shall have all the powers necessary or convenient to carry out and effectuate the purposes and provisions of the Metropolitan Redevelopment Code, including but not necessarily limited to the following powers:

                [A.] (1) to undertake and carry out metropolitan redevelopment projects within its area of operation, including clearance and redevelopment, rehabilitation, conservation and development activities and programs; to make, enter into and execute contracts and other agreements and instruments necessary or convenient to the exercise of its powers under the Metropolitan Redevelopment [Law] Code; and to disseminate information regarding slum clearance, prevention of blight and the metropolitan redevelopment projects and areas;

                [B.] (2) to provide, arrange or contract for the furnishing or repair by any public or private person or agency for services, privileges, works, streets, roads, public utilities, public buildings or other facilities for or in connection with a metropolitan redevelopment project;

                (3) to, within its area of operation, install, acquire, construct, reconstruct, remodel, rehabilitate, maintain and operate streets, utilities, parks, buildings, playgrounds and public buildings, including but not limited to parking facilities, transportation centers, public safety buildings and other public improvements or facilities or improvements for public purposes, as may be required [by the municipality, the state or a political subdivision of the state];

                (4) to agree to any conditions that it may deem reasonable and appropriate [which] that are attached to federal financial assistance and imposed pursuant to federal law, including conditions relating to the determination of prevailing salaries or wages or compliance with federal and state labor standards, compliance with federal property acquisition policy and the provision of relocation assistance in accordance with federal law in the undertaking or carrying out of a metropolitan redevelopment project; and to include in any contract let in connection with the project provisions to fulfill any of these conditions as it may deem reasonable and appropriate; provided [however] that all purchases of personal property shall be in accordance with the [Public Purchases Act] Procurement Code;

                [C.] (5) within its area of operation, to inspect any building or property in any metropolitan redevelopment area in order to make surveys, appraisals, soundings or test borings and to obtain an order for this purpose from a court of competent jurisdiction in the event inspection is denied by the property owner or occupant to acquire, by purchase, lease, option, gift, grant, bequest, devise, eminent domain or otherwise, any real property or personal property for its administrative or project purposes, together with any improvements thereon and to hold, improve, clear or prepare for redevelopment any such property;

                (6) to mortgage, pledge, hypothecate or otherwise encumber or dispose of any real property;

                (7) to insure or provide for the insurance of any real or personal property or operations of the municipality against any risks or hazards, including the power to pay premiums on any such insurance; [and]

                (8) to enter into any contracts necessary to effectuate the purposes of the Metropolitan Redevelopment Code;

                [D.] (9) to invest any metropolitan redevelopment project funds held in reserve, sinking funds or other project funds which are not required for immediate disbursement in property or securities in which municipalities may legally invest funds subject to their control; to redeem bonds [as have been] issued pursuant to the Metropolitan Redevelopment Code at the redemption price established [therein] in the bonds or to purchase the bonds at less than redemption price [All]; provided that bonds so redeemed or purchased shall be canceled; and

                [E.] (10) to borrow or lend money [subject to those procedures and limitations as may be provided in the constitution of New Mexico or the Municipal Code] and to apply for and accept advances, loans, grants, contributions and any other form of financial assistance from the federal government, the state, the county or municipality in which the district lies or other public body or from any sources, public or private, for the purposes of the Metropolitan Redevelopment Code; and to give security as may be required and subject to the provisions and limitations of general law except as may otherwise be provided by the Metropolitan Redevelopment [Law] Code and to enter into and carry out contracts in connection therewith. A [municipality] district may include in any contract for financial assistance with the federal government for a metropolitan redevelopment project conditions imposed pursuant to federal law [which] that the [municipality] district may deem reasonable or appropriate and [which] that are not inconsistent with the purposes of the Metropolitan Redevelopment Code.

          [F. within its area of operation, to] B. A municipality is authorized to:

                (1) make all plans necessary for the carrying out of the purposes of the Metropolitan Redevelopment Code and to contract with any person, public or private, in making and carrying out such plans and to adopt or approve, modify and amend the plans [The plans], which may include: [without limitation

                     (1)] (a) a general plan for redevelopment of the metropolitan area as a whole;

                     [(2)] (b) redevelopment plans for specific areas;

                     [(3)] (c) plans for programs of voluntary or assisted repair and rehabilitation of buildings and improvements;

                     [(4)] (d) plans for the enforcement of state and local laws, codes and regulations relating to the use of land and the use and occupancy of buildings and improvements and to the compulsory repair, rehabilitation, demolition or removal of buildings and improvements; and

                     [(5)] (e) appraisals, title searches, surveys, studies and other preliminary plans and work necessary to prepare for the undertaking of metropolitan redevelopment projects;

               (2) [The municipality is authorized to]

develop, test and report methods and techniques and carry out demonstrations and other activities for the prevention and elimination of slums and urban blight and to pay for, accept and utilize grants of funds from the federal government for such purposes;

                [G. to] (3) prepare plans for the relocation of families displaced from a metropolitan redevelopment area to the extent essential for acquiring possession of and clearing the area or its parts or permit the carrying out of the metropolitan redevelopment project;

                [H. to] (4) appropriate under existing authority the funds and make expenditures necessary to carry out the purposes of the Metropolitan Redevelopment Code [and under existing authority to levy taxes and assessments for such purposes]; to close, vacate, plan or replan streets, roads, sidewalks, ways or other places; in accordance with applicable law or ordinances, to plan or replan, zone or rezone any part of the municipality or make exceptions from building regulations; and

                [to] (5) enter into [agreements] an agreement with a metropolitan redevelopment agency vested with metropolitan redevelopment project powers, which agreements may extend over any period, notwithstanding any provision or rule of law to the contrary, respecting action to be taken by such municipality pursuant to any of the powers granted by the Metropolitan Redevelopment [Law] Code.

          [I. within its area of operation, to organize, coordinate and direct the administration of the provisions of the Redevelopment Law as they apply to the municipality in order that the objective of remedying slum areas and blighted areas and preventing the causes of same within the municipality may be most effectively promoted and achieved and to establish any new office or offices of the municipality or to reorganize existing offices as necessary;

          J. to] C. A district is authorized to:

                (1) acquire real property [in addition to power elsewhere conferred herein], which is appropriate for the preservation or restoration of historic sites; the beautification of urban land; the conservation of open spaces, natural resources and scenic areas; the provision of recreational opportunities; or is to be used for public purposes; and

                [K. to] (2) engage in any or all of the following activities as part of a metropolitan redevelopment project:

                     [(1)] (a) acquisition, construction, reconstruction or installation of public works, facilities and site or other improvements, including but not limited to neighborhood facilities, senior citizen centers, historic properties, utilities, streets, street lights, water and sewer facilities, including connections for residential users, foundations and platforms for air-rights sites, pedestrian malls and walkways, parks, playgrounds and other recreation facilities, flood and drainage facilities, parking facilities, solid waste disposal facilities and fire protection or health facilities [which] that serve designated areas;

                     [(2)] (b) special projects directed to the removal of materials and architectural barriers [which] that restrict the mobility and accessibility of elderly and handicapped persons;

                     [(3)] (c) provision of public services in [the] a metropolitan redevelopment area [which] within the district that are not otherwise available in the area, including but not limited to the provisions of public services directed to the employment, economic development, crime prevention, child care, health, drug abuse, welfare or recreation needs of the people who reside in the metropolitan redevelopment area;

                     [(4)] (d) payment of the nonfederal share of any federal grant-in-aid program to [the] a municipality in which [will be a part of] a metropolitan redevelopment project is located;

                     [(5)] (e) if federal funds are used in the project, to provide for payment of relocation costs and assistance to individuals, families, businesses, organizations and farm operations displaced as a direct result of a metropolitan redevelopment project in accordance with applicable law governing such payment;

                     [(6)] (f) payment of reasonable administrative costs and carrying charges related to the planning and execution of plans and projects;

                     [(7)] (g) economic and marketing studies to determine the economic condition of an area and to determine the viability of certain economic ventures proposed for the metropolitan redevelopment area; and

                     [(8)] (h) issuance of tax increment bonds [grants or loans as authorized by] in accordance with the Metropolitan Redevelopment Code. [in accordance with the requirements of that code; and

                (9) grants to nonprofit corporations, local development corporations or entities organized under Section 301 (d) of the Small Business Investment Act of 1958 for the purposes of carrying out the provisions of the Metropolitan Redevelopment Code;

          L. provided that all] D. Payments made by the [municipality or, metropolitan redevelopment agency] district under the terms of a contract for reconstruction or rehabilitation of private property shall be made from a special fund created for that purpose and shall not be paid directly to [such] the property owner but shall instead be paid to the contractor by the [municipality, or agency] district from such fund upon proper authorization of the property owner and notification that the terms of the contract have been fulfilled. [However] All such rehabilitation contracts shall be between the property owner and the contractor after a sealed bidding procedure and award of contract approved by the [municipality] district has taken place.

          [M. the municipality] E. A district is empowered in a metropolitan redevelopment project, rehabilitation or conservation undertaking or activity to exercise the following powers in one or more metropolitan redevelopment areas to include the elimination and prevention of the development or spread of slums or blight and may involve slum clearance and redevelopment in any such area or rehabilitation or conservation in any such area or any combination or part thereof in accordance with a metropolitan redevelopment area plan and for undertakings or activities of a [municipality] district in any metropolitan redevelopment area to eliminate the conditions [which] that caused an area to be designated such an area and may include any or all of the following:

                (1) acquisition of real property within the metropolitan redevelopment area pursuant to any powers and for purposes enumerated in the Metropolitan Redevelopment Code;

                (2) clearing the land, grading the land and replatting the land in accordance with the metropolitan redevelopment plan adopted by the governing body of the municipality in which the district lies; installation, construction or reconstruction of roads, streets, gutters, sidewalks, storm drainage facilities, water lines or water supply installations, sewer lines and sewage disposal installations, steam, gas and electric lines and installations, airport facilities and construction of any other needed public facilities or buildings whether on or off the site if deemed necessary by the [local governing body] district board to prepare the land in the metropolitan redevelopment area for residential, commercial, industrial and public use in accordance with the metropolitan redevelopment plan; and

                (3) making the land available for development by private enterprise or public agencies, including sale, initial leasing, leasing or retention by the [municipality] district itself, at its fair market value for uses in accordance with the metropolitan redevelopment plan for the area.

          [N. the municipality] F. A district is empowered in a metropolitan redevelopment area to undertake slum clearance and redevelopment [which] that includes:

                (1) acquisition of a slum area or a blighted area or portion [thereof] of that area;

                (2) demolition and removal of buildings and improvements;

                (3) installation, construction, reconstruction, maintenance and operation of streets, utilities, storm drainage facilities, curbs and gutters, parks, playgrounds, single- or multi-family dwelling units, buildings, public buildings, including but not limited to parking facilities, transportation centers, safety buildings and other improvements, necessary for carrying out in the area the provisions of an approved plan for the area; and

                (4) making the real property available for development or redevelopment by private enterprise or public agencies, including sale, leasing or retention by the municipality or district itself, [as] at its fair value for uses in accordance with the metropolitan redevelopment area plan. [and

          O. the municipality] G. A district is empowered to engage in rehabilitation or conservation [which] that includes the restoration and renewal of a slum or blighted area or portion thereof in accordance with any approved plan, by:

                (1) carrying out plans for a program of voluntary or compulsory repair and rehabilitation of buildings or other improvements;

                (2) acquisition of real property and demolition or removal of buildings and improvements thereon where necessary to eliminate unhealthful, [unsanitary] insanitary or unsafe conditions, lessen or increase density, eliminate obsolete or other uses detrimental to the public welfare or to otherwise remove or prevent the spread of blight or deterioration or to provide land for needed public facilities;

                (3) installation, construction or reconstruction of streets, utilities, parks, playgrounds and other improvements necessary for carrying out in the area the provisions of the Metropolitan Redevelopment Code;

                (4) the disposition of any property acquired in such an area, including sale, leasing or retention by the municipality itself, for uses in accordance with such an approved plan;

                (5) acquisition of real property in the area which, under a metropolitan redevelopment plan, is to be repaired or rehabilitated;

                (6) repair or rehabilitation of structures within [the] a metropolitan redevelopment area;

                (7) power to resell repaired or rehabilitated property;

                (8) acquisition, without regard to any requirement that the area be a slum or blighted area, of air-rights in an area consisting principally of land on which is located a highway, railway, bridge or subway tracks or tunnel entrance or other similar facilities [which] that have a blighting influence on the surrounding area and over which air-rights sites are to be developed for the elimination of such blighting influences; and

                (9) with respect to a district, making loans or grants or authorizing the use of the proceeds of tax increment bonds issued pursuant to the Metropolitan Redevelopment Code for the purpose of repairing, remodeling, modifying or otherwise reconstructing a building [or buildings] located in the metropolitan redevelopment area. Such rehabilitation or conservation with use of funds expended by authority of the Metropolitan Redevelopment Code or by [metropolitan revenue] tax increment bonds authorized by that code shall be authorized only after the approval [by the local governing body] of the voters and property owners in the district proposed to issue tax increment bonds and after it has been determined that such expenditure is in accordance with the metropolitan redevelopment plan for that area."

     Section 5. Section 3-60A-12 NMSA 1978 (being Laws 1979, Chapter 391, Section 12) is amended to read:

     "3-60A-12. DISPOSAL OF PROPERTY.--

          A. A [municipality] district may sell, lease or otherwise transfer real property or any interest [therein] in real property acquired by it in a metropolitan redevelopment area and may enter into contracts with respect [thereto] to the real property for residential, commercial, industrial or other uses or for public use or may retain such property or interest for public use in accordance with the metropolitan redevelopment plan, subject to any covenants, conditions and restrictions, including covenants running with the land and including the incorporation by reference [therein] in the covenants of the provisions of a metropolitan redevelopment plan or any part thereof, as it may deem to be in the public interest or necessary to carry out the purposes of the metropolitan redevelopment plan. The purchasers or lessees and their successors and assigns shall be obligated to devote the real property only to the uses specified in the metropolitan redevelopment plan for a period of years as set out in the sale or lease agreement and may be obligated to comply with other requirements [which] that the municipality or district board may determine to be in the public interest, including the obligation to begin within a reasonable time any improvements on real property required by the metropolitan redevelopment plan. The real property or interest shall be sold, leased, otherwise transferred or retained at not less than its fair value for uses in accordance with the Metropolitan Redevelopment [Law] Code as determined by the governing body of the municipality, by the district or by the metropolitan redevelopment agency, if so authorized. In determining the fair value of real property for uses in accordance with the metropolitan redevelopment plan, a [municipality] district shall take into account and give consideration to the uses provided in the plan, the restrictions upon and the covenants, conditions and obligations assumed by the purchaser or lessee or by the [municipality] district retaining the property and the objectives of the plan for the prevention of and recurrence of slum or blighted areas. The [municipality] district in any instrument of conveyance to a private purchaser or lessee may provide that the purchaser or lessee shall be without power to sell, lease or otherwise transfer the real property without the prior written consent of the municipality until he has completed the construction of any and all improvements [which] that he has obligated himself to construct [thereon] on the real property. Real property acquired by a [municipality which] district that, in accordance with the provisions of the metropolitan redevelopment plan, is to be transferred shall be transferred consistent with the carrying out of the provisions of the plan. The inclusion in any contract or conveyance to a purchaser or lessee of covenants, restrictions or conditions, including the incorporation by reference [therein] in the covenants of the provisions of a metropolitan redevelopment plan or any part thereof, shall not prevent the filing of the contract or conveyance in the land records of the county in a manner as to afford actual or constructive notice thereof.

          B. A [municipality] district may dispose of real property in a metropolitan redevelopment area to private persons only in accordance with the procedures set out in this subsection. The [municipality] district shall, prior to entering into any agreement to convey title or an interest in real property, publish a public notice once each week for at least two consecutive weeks of the date, time and place it will receive proposals for the purchase, lease or rental, for development or redevelopment purposes, of the real property or interest [therein] in the real property it intends to dispose of. The public notice shall contain sufficient information to describe the location of the real property, the type of development sought or land use requirement and the selection criteria the [municipality] district will follow during review of proposals and shall state that details may be obtained at the office designated in the notice. The [municipality] district board shall consider all proposals submitted in accordance with the public notice and shall only accept proposals it deems in the public interest and meeting the objectives of the metropolitan redevelopment plan after considering the type of development, redevelopment or use proposed and the financial ability of the persons making [such] the proposals to carry them out.

          C. If after following the procedures set out in Subsection B of this section a [municipality] district receives no proposals or determines the [ones] proposals received are not in accordance with the call for proposals or do not meet the objectives of the Metropolitan Redevelopment Code, the municipality or district may reject any proposals received and then dispose of [such] the real property through reasonable negotiating procedures; provided, however, that negotiated sales, leases or transfers must be reported to the local governing body of the municipality in which the district lies and approved by [that] the local governing body before [such] the sale, lease or transfer may take effect.

          D. A [municipality] district may operate and maintain real property acquired in a metropolitan redevelopment area pending the disposition of the property for development or redevelopment without regard to the provisions of Subsection A of this section for any uses and purposes deemed desirable even though not in conformity with the Redevelopment Law."

     Section 6. Section 3-60A-13 NMSA 1978 (being Laws 1979, Chapter 391, Section 13, as amended) is amended to read:

     "3-60A-13. PROPERTY EXEMPT FROM TAXES AND FROM LEVY AND SALE BY VIRTUE OF AN EXECUTION.--

          A. All property of a [municipality] district, including funds, owned or held in fee simple by it for the purposes of the Metropolitan Redevelopment Code shall be exempt from levy and sale by virtue of an execution, and no execution or other judicial process shall issue against the property nor shall judgment against a municipality or district be a charge or lien upon the property; provided, however, that the provisions of this section shall not apply to or limit the right of obligees to pursue any remedies for the enforcement of any pledge or lien given pursuant to the Metropolitan Redevelopment [Law] Code by a [municipality] district on its rents, fees, grants, land or revenues from projects.

          B. The property of a [municipality] district acquired or held for the purposes of the Metropolitan Redevelopment Code is declared to be public property used for essential public and governmental purposes, and the property shall be exempt from property taxes or assessments of the municipality, the county, the state or any political subdivision thereof; provided that the exemption shall terminate when the municipality or district transfers its fee simple interest in the property to a purchaser that is not entitled to the exemption with respect to the property. [Nothing in] This subsection [authorizes] does not authorize an exemption or deduction from the imposition of the gross receipts and compensating taxes under the Gross Receipts and Compensating Tax Act on the gross receipts from the sale of property to or the use of property by a [municipality] district or any other person in connection with a metropolitan redevelopment project created under the Metropolitan Redevelopment Code." 

     Section 7. Section 3-60A-13.1 NMSA 1978 (being Laws 1985, Chapter 225, Section 2) is amended to read:

     "3-60A-13.1. PAYMENTS IN LIEU OF PROPERTY TAXES AND ASSESSMENTS.--

          A. If interests in project property are exempt from property taxation and assessments under Subsection B of Section 3-60A-13 NMSA 1978 or Section 7-36-3.1 NMSA 1978, then during the period extending from the date of acquisition of the property by the municipality or district through December 31 of the year in which the seventh anniversary of that acquisition date occurs, any lessee of the project property or owner of a substantial beneficial interest in the project property, in whose ownership the property would not be exempt from property taxation except for the exemption granted under Section 7-36-3.1 NMSA 1978, shall pay to the county treasurer annually, at the same time property tax payments are due under the Property Tax Code, an amount equal to the sum of:

                (1) general property taxes that would have been imposed under Subsection B of Section 7-37-7 NMSA 1978 had it not been exempt and had it been valued at the valuation for property taxation purposes that existed in the year immediately preceding the year of acquisition by the [municipality] district;

                (2) amounts that would have been imposed under Subsection C of Section 7-37-7 NMSA 1978 on the project property had it not been exempt and had it been valued at the valuation for property taxation purposes that existed in the year immediately preceding the year of acquisition by the [municipality] district; and

                (3) amounts that would have been imposed as benefit assessments on the project property had it not been exempt and had it been valued at the valuation for property taxation purposes that existed in the year immediately preceding the year of acquisition by the [municipality] district if those benefit assessments are authorized by law and are expressed in mills per dollar or dollars per thousand dollars of net taxable value of property, assessed value of property or similar terms.

          B. The county treasurer shall distribute all amounts collected under Subsection A of this section in the same manner as the amounts would have been distributed if they had been collected as taxes or assessments on nonexempt property.

          [C. The provisions of this section shall apply only to project property acquired by a municipality under the provisions of the Metropolitan Redevelopment Code on or after January 1, 1986.]" 

     Section 8. Section 3-60A-15 NMSA 1978 (being Laws 1979, Chapter 391, Section 15) is amended to read:

     "3-60A-15. EXERCISE OF POWERS IN CARRYING OUT PROJECTS.--[A. The] A local governing body or a district board may directly exercise [its metropolitan redevelopment project] powers [or it] obtained pursuant to the Metropolitan Redevelopment Code. A local governing body may, by ordinance if it determines such action to be in the public interest, elect to delegate the exercise of such powers to the metropolitan redevelopment agency created pursuant to the Metropolitan Redevelopment [Law] Code. If the local governing body so determines, the agency shall be vested with all of the powers in the same manner as though all the powers were conferred on the agency or authority instead of the municipality.

          [B. As used in this section, the term "redevelopment project powers" includes any rights, powers, functions and duties of a municipality authorized by the Redevelopment Law except the following, which are reserved to the local governing body; the power to:

                (1) declare an area to be a slum or a blighted area or combination thereof and to designate the area as appropriate for a redevelopment project;

                (2) approve or amend redevelopment plans;

                (3) approve a general plan for the municipality as a whole;

                (4) make findings of necessity prior to preparation of a plan as provided in the Redevelopment Law and the findings and determinations required prior to approval of a redevelopment plan or project as provided in the Redevelopment Law;

                (5) issue general obligation bonds and revenue bonds authorized in the Municipal Code;

                (6) approve loans or grants;

                (7) approve leases of more than one year's duration;

                (8) issue municipal redevelopment bonds;

                (9) appropriate funds to levy taxes and assessments; and

                (10) exercise the power of eminent domain.]"

     Section 9. Section 3-60A-17 NMSA 1978 (being Laws 1979, Chapter 391, Section 17) is amended to read:

     "3-60A-17. CONFLICT OF INTEREST--MISCONDUCT.--[A.] No public official or employee of a municipality or member of any board or commission [thereof] of a municipality; no district board member or employee of a district; and no commissioner or employee of a metropolitan redevelopment agency [which] that has been vested by a municipality with metropolitan redevelopment project powers by the Metropolitan Redevelopment [Law] Code shall voluntarily acquire any direct or indirect interest [direct or indirect] in [any such project of the municipality or in any contract or proposed contract in connection with such] a metropolitan redevelopment project. Where the acquisition is not voluntary, the interest acquired shall be immediately disclosed in writing to the local governing body or district, and [such] that disclosure shall be entered upon its minutes. If any [such] public official or employee of a municipality, commissioner of a metropolitan redevelopment agency, district board member or employee of a municipality, district or metropolitan redevelopment agency currently owns or controls or owned or controlled within the preceding two years any direct or indirect interest [direct or indirect] in [any] property, which [he] that person knows is included or planned to be included in a metropolitan redevelopment project, [he] the person shall immediately disclose [this] that fact in writing to the local governing body or district, and this disclosure shall be entered upon the minutes of the governing body or district, and [any such official, commissioner or employee] that person shall not participate in any action by the municipality or board or commission [thereof] of the municipality or the district board affecting [such] the property. [Any] A disclosure required to be made by this section to [the] a local governing body shall concurrently be made to a metropolitan redevelopment agency [which has been] vested with metropolitan redevelopment project powers by the municipality."

     Section 10. Section 3-60A-19 NMSA 1978 (being Laws 1979, Chapter 391, Section 19) is amended to read:

     "3-60A-19. TAX INCREMENT LAW--SHORT TITLE.--Sections [19 through 25 of the Metropolitan Redevelopment Code] 3-60A-19 through 3-60A-25 NMSA 1978 may be cited as the "Tax Increment Law"."

     Section 11. A new section of the Tax Increment Law is enacted to read:

     "[NEW MATERIAL] RESOLUTION DECLARING INTENTION TO FORM DISTRICT.--

          A. If the governing body approves a metropolitan redevelopment plan for a metropolitan redevelopment area within the governing body's municipality and, on presentation of a petition that, in accordance with the Tax Increment Law, is signed by ten or more business owners or five or more property owners whose businesses or properties are proposed to be included in a district that may be referred to as a "tax increment financing district", the governing body of a municipality may adopt a resolution declaring its intention to form a district to issue tax increment bonds to the New Mexico finance authority and that would be subject to tax increment procedures pursuant to the Metropolitan Redevelopment Code for the purpose of financing metropolitan redevelopment projects pursuant to the powers granted to the district pursuant to the Metropolitan Redevelopment Code. The resolution shall also state the municipality's intention to include in the district contiguous or noncontiguous property within an area in which the metropolitan redevelopment project proposed to be financed is located. A district shall be wholly within the corporate boundaries of a municipality. If the governing body fails to act within ninety days following presentation of a petition to create a district, the petition shall be deemed to have been accepted by the governing body, which shall adopt a resolution and hold a public hearing pursuant to this section. The resolution shall state:

                (1) the area to be included within a district;

                (2) a description of the metropolitan redevelopment project for which the district is proposed for formation and to which tax increment procedures pursuant to the Tax Increment Law are proposed to be applied;

                (3) a general description of the tax increment procedures that will be used to finance the metropolitan redevelopment project for which a district is formed;

                (4) a general plan for the district that is on file with the clerk that includes a map depicting the boundaries of the district;

                (5) a notice of public hearing in conformity with the requirements of the Tax Increment Law;

                (6) the place where written objections to the formation of the district may be filed by the owner;

                (7) that formation of the district may result in the use of tax increment procedures pursuant to the Tax Increment Law for the financing of the metropolitan redevelopment projects; and

                (8) whether the district will be governed by a district board comprised of the members of the governing body, ex officio, or comprised of five directors initially appointed by the governing body.

          B. The resolution shall direct that a hearing on formation of the district be scheduled and the notice be mailed and published as provided in the Tax Increment Law.

          C. Before adopting a resolution pursuant to this section, a general plan for the metropolitan redevelopment project proposed to be financed by the proposed district shall be filed with the clerk of the municipality."

     Section 12. A new section of the Tax Increment Law is enacted to read:

     "[NEW MATERIAL] NOTICE AND PUBLIC HEARING.--

          A. The notice of public hearing to be held concerning the formation of a district pursuant to the Tax Increment Law shall be mailed by registered or certified United States mail, postage prepaid, to all registered voters in the proposed district at least thirty days prior to the date of the hearing. In addition, notice shall be published once each week for two successive weeks in a newspaper of general circulation in the municipality in which the proposed district lies. The last publication shall be at least three days before the date of the hearing. The notice shall comply with requirements of Subsections B and C of this section.

          B. The municipal clerk shall execute a notice, which shall read substantially as follows:

"To whom it may concern:

The governing body of the (municipality) of _____________, on (Date), adopted the attached resolution declaring its intention to form a metropolitan redevelopment district subject to property tax increment financing procedures for the purpose of financing a metropolitan redevelopment project through the issuance of tax increment bonds. A hearing on formation will be held on (Date), at (Time) at (Location).".

          C. A summary of the resolution declaring the governing body's intention to form the district shall be attached to the notice, and the municipal clerk shall cause a copy to be mailed to the registered voters in the district and to all other persons who have filed a written request for a copy of the notice within the six months preceding or at any time following the adoption of the resolution of intent to form the district. The municipal clerk shall also publish a copy of the notice and resolution summary at least twice in a newspaper of general circulation in the municipality in which the proposed district lies. The clerk shall execute an affidavit of mailing stating the date of mailing and the names and addresses of the persons to whom the notices and copies of the resolutions were mailed. The clerk shall obtain an affidavit from the newspaper in which the publication was made. The clerk shall cause both affidavits to be placed in the official records of the municipality. The affidavits are conclusive evidence of the mailing and publishing of notice. Notice shall not be held invalid for failure of delivery to the addressee."

     Section 13. A new section of the Tax Increment Law is enacted to read:

     "[NEW MATERIAL] ORDER FORMING DISTRICT--ELECTION.--

          A. When ten or more business owners comprising at least fifty-one percent of the total business owners in the proposed district or whenever five or more real property owners comprising at least fifty-one percent of the total real property owners in the proposed district, exclusive of multifamily dwellings or any real property owned by the United States or the state or any of its political subdivisions, petition the governing body in writing to create a district, the governing body shall determine whether the district should be formed based upon the interests, convenience or necessity of the residents of the district and the municipality in which the proposed district would be located. If the governing body determines that the district should be formed, it shall adopt a resolution ordering that an election be held on the question whether to form the district. A resolution ordering a formation of the district shall state that the district will be governed by a district board consisting of members of the governing body, ex officio, or, upon determination of the governing body, five directors appointed by the governing body, and shall contain the names of the five initial directors and the terms of office of each. If the governing body appoints a district board, it shall appoint a treasurer and a clerk from the appointed members.

          B. The conduct of a formation election shall meet the requirements of the Tax Increment Law."

     Section 14. A new section of the Tax Increment Law is enacted to read:

     "[NEW MATERIAL] NOTICE AND CONDUCT OF ELECTION.--

          A. An election for a formation of a district pursuant to the Tax Increment Law shall be a nonpartisan election called by posting notices in three public places within the boundaries of the district not less than twenty days before the election. Notice shall also be published in a newspaper of general circulation in the municipality, or, if there is no newspaper so circulated in the municipality, in a newspaper of general circulation in the county in which the municipality is located once a week for two consecutive weeks before the election. The notice shall state:

                (1) the place of holding the election and provisions for voting by mail, if any;

                (2) the hours during the day, not less than six, in which the polls will be open;

                (3) the boundaries of the proposed district; and

                (4) that a general plan is on file with the municipal clerk.

          B. The governing body shall determine the date of the election and the polling places for the election. The governing body may establish provisions for voting by mail.

          C. Voter lists shall be used to determine the qualified voters in a municipality. Each voter and qualified elector property owner within the municipality shall have one vote.

          D. Except as otherwise provided by this section, the election shall comply with the general election laws of this state. The ballot material provided to each voter shall include:

                (1) an impartial description of the metropolitan redevelopment project contemplated within the proposed district and a brief description of arguments for and against the formation of the district, if any; and

                (2) the ballot, which shall pose the question to be voted upon as "tax increment financing district, yes" and "tax increment financing district, no".

          E. The governing body may provide for the returns of the election to be made in person or by mail.

          F. Within thirty days after an election, the governing body shall meet and canvass the returns, determining the number of votes properly cast for and against the question. At least a three-fourths' majority of the votes cast by voters and qualified elector owners of property within the municipality in favor of the proposed district shall be required for formation of the district. The canvass may be continued for an additional period not to exceed thirty days at the election of the governing body for the purpose of completing the canvass. Failure of a majority to vote in favor of the matter submitted shall not prejudice the submission of the same or similar matters at a later election."

     Section 15. A new section of the Tax Increment Law is enacted to read:

     "[NEW MATERIAL] FORMATION.--

          A. If the formation of the district is approved by at least a three-fourths' majority of the votes cast by voters and qualified elector owners of property within the municipality in which the district lies, the governing body shall cause a copy of the resolution ordering formation of the district to be delivered to the taxation and revenue department and the local government division of the department of finance and administration.

          B. Except as otherwise provided in this section, a district shall be a political subdivision of the state, separate and apart from the municipality.

          C. Following formation of the district, the district board shall administer in a reasonable manner the implementation of the general plan for the metropolitan redevelopment project of the district."

     Section 16. A new section of the Tax Increment Law is enacted to read:

     "[NEW MATERIAL] APPOINTMENT OF DIRECTORS-- QUALIFICATIONS--TERMS--RESUMPTION OF GOVERNANCE BY GOVERNING BODY.--

          A. The governing body shall appoint a district board upon the formation of a district. In the case of an appointed district board, three of the appointed directors shall serve an initial term of six years. Two of the appointed directors shall serve an initial term of four years. The resolution forming the district shall state which directors shall serve four-year terms and which shall serve six-year terms. If a vacancy occurs on the district board because of death, resignation or inability of the director to discharge the duties of director, the governing body shall appoint a director to fill the vacancy, who shall hold office for the remainder of the unexpired term until his successor is appointed or elected.

          B. A director may be a director of more than one district.

          C. At the end of the appointed directors' initial term, the district shall hold an election of new directors by majority vote of the voters and property owners of the district."

     Section 17. A new section of the Tax Increment Law is enacted to read:

     "[NEW MATERIAL] POWERS OF A DISTRICT.--In addition to the powers otherwise granted to a district pursuant to the Metropolitan Redevelopment Code, the district board may:

          A. enter into contracts and expend money for a metropolitan redevelopment project within the district;

          B. enter into development agreements with municipalities, counties or other local government entities in connection with property located within the boundaries of the district;

          C. enter into intergovernmental agreements as provided in the Joint Powers Agreements Act for the planning, design, inspection, ownership, control, maintenance, operation or repair of infrastructure for a metropolitan redevelopment project or the provision of enhanced services by the municipality in the district and any other purpose authorized by the Metropolitan Redevelopment Code;

          D. sell, lease or otherwise dispose of district property if the sale, lease or conveyance is not a violation of the terms of any contract or bond covenant of the district;

          E. reimburse the municipality in which the district is located for providing enhanced services in the district;

          F. employ staff, counsel and consultants;

          G. reimburse the municipality in which the district is located for staff and consultant services and support facilities supplied by the municipality;

          H. accept gifts or grants and incur and repay loans for a metropolitan redevelopment project;

          I. pay the financial, legal and administrative costs of the district;

          J. issue tax increment bonds in accordance with the Metropolitan Redevelopment Code; and

          K. use public easements and rights of way in or across public property, roadways, highways, streets or other thoroughfares and other public easements and rights of way, whether in or out of the geographical limits of the district or the municipality."

     Section 18. A new section of the Tax Increment Law is enacted to read:

     "[NEW MATERIAL] RECORDS--BOARD OF DIRECTORS--OPEN MEETINGS.--

          A. The district shall keep the following records, which shall be open to public inspection:

                (1) minutes of all meetings of the district board;

                (2) all resolutions;

                (3) accounts showing all money received and disbursed;

                (4) the annual budget; and

                (5) all other records required to be maintained by law.

          B. The district board shall appoint a clerk and treasurer for the district."

     Section 19. A new section of the Tax Increment Law is enacted to read:

     "[NEW MATERIAL] OTHER DISTRICTS.--The formation of a district pursuant to the Tax Increment Law shall not prevent the subsequent establishment of similar districts."

     Section 20. A new section of the Tax Increment Law is enacted to read:

     "[NEW MATERIAL] RECORDING DOCUMENTS.--The district shall file and record with the county clerk the resolution ordering formation of the district and the general plan of the district."

     Section 21. A new section of the Tax Increment Law is enacted to read:

     "[NEW MATERIAL] DISSOLUTION OF DISTRICT.--The district shall be dissolved by the district board by a resolution of the district board upon a determination that each of the following conditions exist:

          A. the metropolitan redevelopment project for which the district was formed is complete or provision has been made for metropolitan redevelopment projects to be conveyed to the municipality in which the district is located;

          B. the district has no outstanding bond obligations issued to finance a metropolitan redevelopment project in the district; and

          C. all obligations of the district pursuant to any development agreement have been satisfied."

     Section 22. A new section of the Tax Increment Law is enacted to read:

     "[NEW MATERIAL] LIMITATION OF LIABILITY.--Neither any member of the board of directors of a district nor any person acting on behalf of the district, while acting within the scope of that person's authority, shall be subject to any personal liability for any action taken or omitted within that scope of authority."

     Section 23. Section 3-60A-20 NMSA 1978 (being Laws 1979, Chapter 391, Section 20) is amended to read:

     "3-60A-20. ALTERNATIVE METHOD OF FINANCING.--

          A. [Effective for tax years beginning on or after January 1, 1980 the local governing body of a municipality] After obtaining necessary approval pursuant to Section 3-60A-23 NMSA 1978, a district board may elect by resolution to use the procedures set forth in the Tax Increment Law for financing metropolitan redevelopment projects. Such procedures may be used in addition to or in conjunction with other methods provided by law for financing such projects.

          B. The tax increment method, for the purpose of financing metropolitan redevelopment projects, is the dedication for further use in metropolitan redevelopment projects of that increase in property tax revenue directly resulting from the increased net taxable value of a parcel of property attributable to its rehabilitation, redevelopment or other improvement because of its inclusion within an urban renewal, community development or metropolitan redevelopment project."

     Section 24. Section 3-60A-21 NMSA 1978 (being Laws 1979, Chapter 391, Section 21, as amended) is amended to read:

     "3-60A-21. TAX INCREMENT PROCEDURES.--The procedures to be used in the tax increment method are:

          A. the [local governing body of the municipality] district board shall, at the time [after] of approval by the voters and qualified elector property owners within the district of the issuance of tax increment bonds for a metropolitan redevelopment project, notify the county assessor and the taxation and revenue department of the taxable parcels of property within the [project] district;

          B. upon receipt of notification pursuant to Subsection A of this section, the county assessor and the taxation and revenue department shall identify the parcels of property within the [metropolitan redevelopment project within their respective jurisdictions] district and certify to the county treasurer the net taxable value of the property at the time of notification as the base value for the distribution of property tax revenues authorized by the Property Tax Code. If because of acquisition by the municipality in which the district lies the property becomes tax exempt, the county assessor and the taxation and revenue department shall note that fact on their respective records and so notify the county treasurer, but the county assessor, the taxation and revenue department and the county treasurer shall preserve a record of the net taxable value at the time of inclusion of the property within the [metropolitan redevelopment project] district as the base value for the purpose of distribution of property tax revenues when the parcel again becomes taxable. The county assessor is not required by this section to preserve the new taxable value at the time of inclusion of the property within the [metropolitan redevelopment project] district as the base value for the purposes of valuation of the property;

          C. if because of acquisition by the municipality in which the district lies the property becomes tax exempt, when the parcel again becomes taxable, the [local governing body of the municipality] district board shall notify the county assessor and the taxation and revenue department of the parcels of property that because of their rehabilitation or other improvement are to be revalued for property tax purposes. A new taxable value of this property shall then be determined by the county assessor or by the taxation and revenue department if the property is within the valuation jurisdiction of that department. If no acquisition by the municipality in which the district lies occurs, improvement or rehabilitation of property subject to valuation by the assessor shall be reported to the assessor as required by the Property Tax Code, and the new taxable value shall be determined as of January 1 of the tax year following the year in which the improvement or rehabilitation is completed;

          D. current tax rates shall then be applied to the new taxable value. The amount by which the revenue received exceeds that which would have been received by application of the same rates to the base value before inclusion in the [metropolitan redevelopment project] district shall be credited to the [municipality] district and deposited in the metropolitan redevelopment fund. This transfer shall take place only after the county treasurer has been notified to apply the tax increment method to a specific property included in [a metropolitan redevelopment area. Unless the entire metropolitan redevelopment area is specifically included by the municipality for purposes of tax increment financing, the payment by the county treasurer to the municipality shall be limited to those properties specifically included] the district. The remaining revenue shall be distributed to participating units of government as authorized by the Property Tax Code; and

          E. the procedures and methods specified in this section shall be followed annually for a maximum period of twenty years following the date of notification of inclusion of property as coming under the transfer provisions of this section."

     Section 25. Section 3-60A-22 NMSA 1978 (being Laws 1979, Chapter 391, Section 22) is amended to read:

     "3-60A-22. METROPOLITAN REDEVELOPMENT FUND--CREATION--DISBURSEMENT.--There is created a "metropolitan redevelopment fund" for purposes of the Metropolitan Redevelopment Code. Money in the metropolitan redevelopment fund [shall be disbursed] that is credited to a district is appropriated to the [municipality] district to be used [as other money is authorized to be used] in accordance with the Metropolitan Redevelopment Code."

     Section 26. Section 3-60A-23 NMSA 1978 (being Laws 1979, Chapter 391, Section 23, as amended) is amended to read:

     "3-60A-23. TAX INCREMENT METHOD APPROVAL.--The tax increment method shall be applicable only to [the units of government participating in property tax revenue derived from property within a metropolitan redevelopment project and approving the use of the tax increment method for that property and only to the extent of the approval. An approval may be restricted to certain types or sources of tax revenue] a district that is approved pursuant to the Tax Increment Law. The [local governing body of each municipality] district board shall request such approval for up to a twenty-year period for property included in the tax increment funding. [The governor or his authorized representative shall approve, partially approve or disapprove the use of the method for state government; the governing body of each other participating unit shall approve, partially approve or disapprove by ordinance or resolution the use of the method for their respective units.] At the request of a participating unit of government, made within ten days of receipt of the request by the [municipality] district, the [municipality] district shall make a presentation to the governor or [his] the governor's authorized representative and to the governing bodies of all participating units of government, which [presentation] shall include a description of the metropolitan redevelopment project to be funded by the issuance of tax increment bonds pursuant to the Metropolitan Redevelopment Code and the parcels in the project to which the tax increment method [will] is proposed to apply, and an estimate of the general effect of the project and the application of the tax increment method on property values and tax revenues. All participating units shall notify the [local governing body of the municipality] district board seeking approval within thirty days of receipt of the [municipality's request] district board's request. At the expiration of that time, the alternative method of financing set forth in this section shall be effective for a period of up to twenty tax years."

     Section 27. Section 3-60A-23.1 NMSA 1978 (being Laws 2000, Chapter 103, Section 4) is amended to read:

     "3-60A-23.1. TAX INCREMENT BONDS.--

          A. [For the purpose of financing metropolitan redevelopment projects, in whole or in part, a municipality may] A district shall issue tax increment bonds [or tax increment bond anticipation notes] that are payable from and secured by real property taxes, in whole or in part, allocated to the metropolitan redevelopment fund pursuant to the provisions of Sections 3-60A-21 and 3-60A-23 NMSA 1978. A district shall sell tax increment bonds that it issues to the New Mexico finance authority to finance a metropolitan redevelopment project in that district in accordance with the Metropolitan Redevelopment Code or the exercise of any power or authority delegated under the Metropolitan Redevelopment Code. The principal of, premium, if any, and interest on the bonds [or notes] shall be payable from and secured by a pledge of such revenues, and the [municipality] district shall irrevocably pledge all or part of such revenues to the payment of the bonds [or notes]. The revenues deposited in the metropolitan redevelopment fund or the designated part thereof may thereafter be used only for the payment of the principal of, premium, if any, and interest on the bonds [or notes], and a holder of the bonds [or notes] shall have a first lien against the revenues deposited in the metropolitan redevelopment fund or the designated part thereof for the payment of principal of, premium, if any, and interest on such bonds or notes. [To increase the security and marketability of the tax increment bonds or notes, the municipality may:

                (1) create a lien for the benefit of the bondholders on any public improvements or public works used solely by the metropolitan redevelopment project or portion of a project financed by the bonds or notes, or on the revenues of such improvements or works;

                (2) provide that the proceeds from the sale of real and personal property acquired with the proceeds from the sale of bonds or notes issued pursuant to the Tax Increment Law shall be deposited in the metropolitan redevelopment fund and used for the purposes of repayment of principal of, premium, if any, and interest on such bonds or notes; and

                (3) make covenants and do any and all acts not inconsistent with law as may be necessary, convenient or desirable in order to additionally secure the bonds or notes or make the bonds or notes more marketable in the exercise of the discretion of the local governing body.]

          B. Bonds [and notes] issued pursuant to this section [shall not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction shall not be] are not general obligations of [the] a municipality, shall be collectible only from the proper pledged revenues and shall not be subject to the provisions of any other law or charter relating to the authorization, issuance or sale of tax increment bonds or tax increment bond anticipation notes. Bonds [and notes] issued pursuant to the Tax Increment Law are declared to be issued for an essential public and governmental purpose and, together with interest [thereon], shall be exempted from [all] taxes by the state.

          C. The bonds [or notes shall be authorized by an ordinance of the municipality] shall be in such denominations, bear such date and mature [in the case of bonds] at such time not exceeding twenty years from their date [and in the case of notes, not exceeding five years from the date of the original note]; bear interest at a rate or have appreciated principal value not exceeding the maximum net effective interest rate permitted by the Public Securities Act; and be in such form, carry such registration privileges, be executed in such manner, be payable in such place within or without the state, be payable at intervals or at maturity and be subject to such terms of redemption as the authorizing [ordinance or supplemental] resolution [or resolutions] of the [municipality] district may provide.

          D. The bonds [or notes may] shall be sold to the New Mexico finance authority in one or more series at, below or above par, [at public or private sale] in [such] a manner and for [such] a price [as the municipality] determined by the district board, in its discretion [shall determine]; provided that the price at which the bonds [or notes] are sold shall not result in a net effective interest rate that exceeds the maximum permitted by the Public Securities Act. As an incidental expense of a metropolitan redevelopment project or portion thereof financed with the bonds [or notes], the [municipality] district in its discretion may employ financial and legal consultants with regard to the financing of the project.

          E. In case any of the [public officials of the municipality] district board members whose signatures appear on any bonds [or notes] issued pursuant to the Tax Increment Law shall cease to be [public officials] district board members before the delivery of the bonds [or notes], the signatures shall, nevertheless, be valid and sufficient for all purposes, the same as if the [officials] board members had remained in office until delivery. Any provision of law to the contrary notwithstanding, any bonds [or notes] issued pursuant to the Tax Increment Law shall be fully negotiable.

          F. [In any suit, action or proceeding involving the validity or enforceability of] Any tax increment bond [or note issued pursuant to the Tax Increment Law or the security therefor, any bond or note reciting in substance that it has been issued by the municipality] in connection with a metropolitan redevelopment project shall be conclusively deemed to have been issued for [such purpose] that project, and the project shall be conclusively deemed to have been planned, located and carried out in accordance with the provisions of the Metropolitan Redevelopment Code.

          G. The proceedings under which tax increment bonds or tax increment bond anticipation notes are authorized to be issued and any mortgage, deed of trust, trust indenture or other lien or security device on real and personal property given to secure the same may contain provisions customarily contained in instruments securing bonds and notes and constituting a covenant with the bondholders.

          H. A [municipality] district may issue tax increment bonds [or notes] pursuant to this section with the proceeds from the tax increment bonds or notes to be used as other money is authorized to be used in the Metropolitan Redevelopment Code.

          [I. The municipality shall have the power to issue renewal notes, to issue bonds to pay notes and whenever it deems refunding expedient, to refund any bonds by the issuance of new bonds, whether the bonds to be refunded have or have not matured, and to issue bonds partly to refund bonds then outstanding and partly for other purposes in connection with financing metropolitan redevelopment projects, in whole or in part. Refunding bonds issued pursuant to the Tax Increment Law to refund outstanding tax increment bonds shall be payable from real property tax revenues, out of which the bonds to be refunded thereby are payable or from other lawfully available revenues.

          J.] I. The proceeds from the sale of [any] tax increment bonds [or notes] shall be applied only for the purpose for which the bonds [or notes] were issued or for carrying out district or district board powers or duties and if, for any reason, any portion of the proceeds are not needed for [the purpose for which the bonds or notes were issued] such purposes, the unneeded portion of the proceeds shall be applied to the payment of the principal of or the interest on the bonds. [or notes

          K. The cost of financing a metropolitan redevelopment project shall be deemed to include the actual cost of acquiring a site and the cost of the construction of any part of a project, including architects' and engineers' fees, the purchase price of any part of a project that may be acquired by purchase and all expenses in connection with the authorization, sale and issuance of the bonds or notes to finance the acquisition, and any related costs incurred by the municipality.

          L.] J. No action shall be brought questioning the legality of any contract, mortgage, deed of trust, trust indenture or other lien or security device, proceeding or bonds [or notes] executed in connection with any project authorized by the Metropolitan Redevelopment Code on and after thirty days from the effective date of the ordinance authorizing the issuance of such bonds [or notes]."

     Section 28. A new section of the Tax Increment Law is enacted to read:

     "[NEW MATERIAL] TAX INCREMENT BONDS--VOTER APPROVAL--ELECTIONS.--

          A. Upon approving or obtaining approval for the tax increment method for a metropolitan redevelopment project pursuant to Section 3-60A-23 NMSA 1978 and electing by resolution to issue tax increment bonds for a metropolitan redevelopment project within its district, a district board shall submit to a vote of the voters of and qualified elector property owners within its district the question of issuing the tax increment bonds to fund the metropolitan redevelopment project. The election may be held at the same time as the regular municipal election or at any special election within the metropolitan redevelopment area held for that purpose.

          B. The district board shall give notice to voters and owners of property within the district proposed to issue tax increment bonds of the time and place of holding the election and the purpose for which the tax increment bonds are to be issued. A change in the location of a polling place after notice has been given shall not invalidate a tax increment bond election.

          C. The question shall state the purpose of the metropolitan redevelopment project for which the tax increment bonds are to be issued and the amount of the issue. If tax increment bonds are to be issued for more than one metropolitan redevelopment project, a separate question shall be submitted to the voters for the purpose of each metropolitan redevelopment project to be voted upon. The ballots shall contain words indicating the purpose of the metropolitan redevelopment project for which the tax increment bonds are to be issued and a place for a vote "For tax increment bonds" and "Against tax increment bonds" for each tax increment bond issue. The ballots shall be deposited in a separate ballot box unless voting machines are used.

          D. The vote upon each question proposing to issue tax increment bonds shall be canvassed as provided in the Municipal Election Code, and the municipal clerk of the municipality in which the district lies shall certify the results of the election and file the certificate of canvass in the official minute books of the district and of the municipality in which the district lies.

          E. If a majority of the voters and qualified elector property owners of the district votes in favor of the issuance of tax increment bonds, the district board may proceed to issue the tax increment bonds in accordance with the Metropolitan Redevelopment Code.

          F. Each voter and qualified elector property owner in the district shall have one vote."

     Section 29. Section 3-60A-27 NMSA 1978 (being Laws 1979, Chapter 391, Section 27) is amended to read:

     "3-60A-27. DEFINITIONS.--As used in the Redevelopment Bonding Law:

          [A. "revenue bonds" means bonds, notes or other securities evidencing an obligation and issued pursuant to the powers granted by the Metropolitan Redevelopment Code by a municipality for purposes authorized by that code;

          B.] A. "finance" or "financing" means the issuing of bonds by a [municipality] district and the use of substantially all of the proceeds [therefrom] from the bonds pursuant to a financing agreement with the user to pay or to reimburse the user or its designee for the costs of the acquisition or construction of a project, whether these costs are incurred by the [municipality] district, the user or a designee of the user; provided that title to or in the project may at all times remain in the user, and, in such case, the bonds of the [municipality] district may be secured by mortgage or other lien upon the project or upon any other property of the user or both granted by the user or by a pledge of one or more notes, debentures, bonds or other secured or unsecured debt obligations of the user as the [governing body] district board deems advisable, but [no municipality shall be] a district is not authorized [hereby] to pledge [any of] its property or to otherwise secure the payment of any bonds with its property, except that the [municipality] district may pledge the property of the project or revenues [therefrom] from the project;

          [C.] B. "financing agreement" includes a lease, sublease, installment purchase agreement, rental agreement, option to purchase or any other agreement or any combination thereof entered into in connection with the financing of a project pursuant to the Metropolitan Redevelopment Code;

          [D.] C. "mortgage" means a deed of trust or any other security device for both real and personal property;

          [E.] D. "ordinance" means an ordinance of a municipality financing or refinancing an activity involving or affecting improvement or improvements;

          [F. "project" means an activity which can be funded or refinanced by revenue bonds issued pursuant to the Redevelopment Bonding Law for the purpose of acquiring, improving, rehabilitating, conserving, financing, or refinancing, erecting or building new or improved facilities, on land, building or buildings or any other improvement or improvements, site or any other activity authorized by the Metropolitan Redevelopment Code for projects or activities located within the boundaries of a metropolitan redevelopment area. The revenue bonds may be used for the projects hereafter enumerated for any purpose or use in such project, except that no funds shall be used for inventories, raw materials or other working capital, whether or not in existence, suitable or used for or in connection with any of the following projects:

                (1) manufacturing, industrial, commercial or business enterprises, including without limitation enterprises engaged in storing, warehousing, distributing, selling or transporting any products of industry, commerce, manufacturing or business or any utility plant;

                (2) hospital, health-care or nursing-home facilities, including without limitation clinics and out-patient facilities and facilities for the training of hospital, health-care or nursing-home personnel;

                (3) residential facilities intended for use as the place of residence by the owners or intended occupants;

                (4) sewage or solid waste disposal facilities;

                (5) facilities for the furnishing of water, if available, on reasonable demand to members of the general public;

                (6) facilities for the furnishing of energy or gas;

                (7) sports and recreational facilities;

                (8) convention or trade show facilities; and

                (9) research, product testing and administrative facilities;

          G.] E. "state" means the state of New Mexico;

          [H.] F. "user" means one or more persons who enter into a financing agreement with a [municipality] district relating to a project, except that the user need not be the person actually occupying, operating or maintaining the project; and

          [I.] G. "utility plant" means [any] a facility used for or in connection with the generation, production, transmission or distribution of electricity; the production, manufacture, storage or distribution of gas; the transportation or conveyance of gas, oil or other fluid substance by pipeline; or the diverting, developing, pumping, impounding, distributing or furnishing of water."

     Section 30. Section 3-60A-28 NMSA 1978 (being Laws 1979, Chapter 391, Section 28) is amended to read:

     "3-60A-28. GENERAL POWERS.--[A.] In addition to any other powers, each [municipality] district has the following powers:

          [(1)] A. to acquire, whether by construction, purchase, gift, devise, lease or sublease, to improve and equip and to finance, sell, lease or otherwise dispose of one or more projects or part thereof. If a [municipality] district issues [revenue] tax increment bonds as provided by the Metropolitan Redevelopment Code to finance or acquire projects, such projects shall be located within the [municipality] district and within a metropolitan redevelopment area;

          [(2)] B. to enter into financing agreements with others for the purpose of providing revenues to pay the tax increment bonds [authorized by the Redevelopment Bonding Law]; to lease, sell or otherwise dispose of any or all of its projects to others for such revenues and upon such terms and conditions as the [local governing body] district board may deem advisable; and to grant options to renew any lease or other agreement with respect to the project and to grant options to buy any project at such price as the [local governing body] district board deems desirable;

          [(3)] C. to issue [revenue] tax increment bonds, after obtaining voter approval and meeting other requirements pursuant to the Metropolitan Redevelopment Act, for the purpose of defraying the cost of financing, acquiring, improving and equipping [any] a metropolitan redevelopment project within the district, including the payment of principal and interest on [such] the bonds for a period not to exceed three years and all other incidental expenses incurred in issuing [such] the bonds; and

          [(4)] D. to secure payment of [such] tax increment bonds as provided in the Redevelopment Bonding Law."

     Section 31. Section 3-60A-31 NMSA 1978 (being Laws 1979, Chapter 391, Section 31) is amended to read:

     "3-60A-31. [REVENUE] TAX INCREMENT BONDS--ISSUANCE--STATUS.--

          A. A [municipality] district may issue [revenue] tax increment bonds in connection with a financing agreement for the purposes of financing a metropolitan redevelopment project authorized by the provisions of the Redevelopment Bonding Law.

          B. A [revenue] tax increment bond shall be a limited obligation of the [municipality] district, the principal and interest of which shall be payable, subject to the mortgage provisions of the Redevelopment Bonding Law, solely out of the revenues derived from the financing, sale or leasing of the project with respect to which the bonds are issued.

          C. The [revenue] tax increment bond and interest coupons, if any, appurtenant thereto [shall never constitute] are not a debt [or indebtedness] of the district or of the municipality in which the district lies within the meaning of any provision or limitation of the [state] constitution of New Mexico, statutes of the state or a home rule charter of the municipality, and [such] that bond [shall] does not constitute [nor give rise to] a pecuniary liability of the district or of the municipality in which the district lies or a charge against its general credit or taxing powers. Such limitations shall be plainly stated on the face of each [such] tax increment bond."

     Section 32. Section 3-60A-34 NMSA 1978 (being Laws 1979, Chapter 391, Section 34) is amended to read:

     "3-60A-34. [REVENUE] TAX INCREMENT BONDS--TERMS OF PROCEEDINGS AND INSTRUMENTS.--[A.] The proceedings under which the [revenue] tax increment bonds are authorized to be issued and any mortgage or trust indenture given to secure the [same] bonds may contain [any] provisions customarily contained in instruments securing bonds and constituting a covenant with the bondholders, including [but not limited to]:

          [(1)] A. provisions respecting custody of the proceeds from the sale of the bonds, including their investment and reinvestment until used to defray the cost of the project;

          [(2)] B. provisions respecting the fixing and collection of revenues from the project;

          [(3)] C. the terms to be incorporated in the financing agreement and any mortgage or trust indenture for the project, including without limitation provision for subleasing;

          [(4)] D. the maintenance and insurance of the project;

          [(5)] E. the creation of funds and accounts into which any bond proceeds, revenues and income may be deposited or credited;

          [(6)] F. limitation on the purpose to which the proceeds of any bonds [then or thereafter to be] issued may be applied;

          [(7)] G. limitation on the issuance of additional bonds, the terms upon which additional bonds are issued and secured, the refunding of bonds and the replacement of bonds;

          [(8)] H. the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated;

          [(9)] I. vesting in a trustee such properties, rights, powers and duties in trust as the [municipality] district board determines and limiting the rights, duties and powers of [such] the trustees; and

          [(10)] J. the rights and remedies available in case of a default to the bondholders or to any trustee under the financing agreement, a mortgage or a trust indenture for the project."

     Section 33. Section 3-60A-35 NMSA 1978 (being Laws 1979, Chapter 391, Section 35) is amended to read:

     "3-60A-35. [REVENUE] TAX INCREMENT BONDS--INVESTMENTS AND BANK DEPOSITS.--

          A. [The municipality] A district that issues tax increment bonds may provide that proceeds from the sale of [revenue] the bonds and special funds from the revenues of the metropolitan redevelopment project for which the bonds are issued shall be invested and reinvested in such securities and other investments, whether or not any such investment or reinvestment is authorized under any other law of this state, as may be provided in the proceedings under which the bonds are authorized to be issued, including [but not limited to]:

                (1) bonds or other obligations of the United States;

                (2) bonds or other obligations, the payment of the principal and interest of which is unconditionally guaranteed by the United States;

                (3) obligations issued or guaranteed as to principal and interest by any agency or person controlled or supervised by and acting as an instrumentality of the United States pursuant to authority granted by the congress of the United States;

                (4) obligations issued or guaranteed by any state of the United States or any political subdivision of any such state;

                (5) prime commercial paper;

                (6) prime finance company paper;

                (7) [bankers] banker's acceptances drawn on and accepted by commercial banks;

                (8) repurchase agreements fully secured by obligations issued or guaranteed as to principal and interest by the United States or by any person controlled or supervised by and acting as an instrumentality of the United States pursuant to authority granted by the congress of the United States; and

                (9) certificates of deposit issued by commercial banks.

          B. The [municipality] district may [also] provide that the proceeds, funds or investments and the revenues payable under the financing agreement shall be received, held and disbursed by one or more banks or trust companies located within or without this state."

     Section 34. Section 3-60A-36 NMSA 1978 (being Laws 1979, Chapter 391, Section 36) is amended to read:

     "3-60A-36. [REVENUE] TAX INCREMENT BONDS--ACQUISITION OF PROJECT.--

          A. [The municipality] A district that issues tax increment bonds may also provide that

                [(1)] the metropolitan redevelopment project and improvements to be constructed, if any, shall be constructed by the [municipality] district, the user, the user's designee or any one or more of them on real estate owned by the [municipality] district, the user or the user's designee [as the case may be and

                (2) the bond proceeds shall be disbursed by the trustee bank or trust company during construction upon the estimate, order or certificate of the user or the user's designee].

          B. The metropolitan redevelopment project, if and to the extent constructed on real estate not owned by the district or the municipality in which the district lies, may be conveyed or leased or an easement therein granted to the district or to the municipality at any time."    

     Section 35. Section 3-60A-37 NMSA 1978 (being Laws 1979, Chapter 391, Section 37) is amended to read:

     "3-60A-37. [REVENUE] TAX INCREMENT BONDS--LIMITED OBLIGATION.--In making such agreements or provisions, a [municipality] district that issues tax increment bonds shall not obligate itself except with respect to the metropolitan redevelopment project for which the bonds are issued and the application of the revenues [therefrom] and [revenue] tax increment bond proceeds [therefor] from the project."

     Section 36. Section 3-60A-39 NMSA 1978 (being Laws 1979, Chapter 391, Section 39) is amended to read:

     "3-60A-39. [REVENUE] TAX INCREMENT BONDS--DETERMINATION OF REVENUE.--

          A. Prior to entering into a financing agreement for [the] a metropolitan redevelopment project and the issuance of [revenue] tax increment bonds in connection [therewith the local governing body] with the metropolitan redevelopment project, a district board shall determine:

                (1) the amount necessary in each year to pay the principal of and the interest on the first tax increment bonds proposed to be issued to finance [such] the project;

                (2) the amount necessary to be paid each year into any reserve funds [which] that the [governing body may deem] district board deems advisable to establish in connection with the retirement of the proposed bonds and the maintenance of the project; and

                (3) the estimated cost of maintaining the project in good repair and keeping it properly insured unless the terms under which the project is to be financed provide that the user shall maintain the project and carry all proper insurance with respect [thereto] to the project.

          B. The determination and findings of the [local governing body] district board required to be made by Subsection A of this section shall be set forth in the proceedings under which the proposed [revenue] tax increment bonds are to be issued; but the foregoing amounts need not be expressed in dollars and cents in the financing agreement and proceedings under which the tax increment bonds are authorized to be issued." 

     Section 37. Section 3-60A-40 NMSA 1978 (being Laws 1979, Chapter 391, Section 40) is amended to read:

     "3-60A-40. [REVENUE] TAX INCREMENT BONDS--FINANCING OF PROJECT.--Prior to the issuance of any [revenue] tax increment bonds authorized by the Redevelopment Bonding Law, the [municipality] district issuing the bonds shall enter into a financing agreement with respect to the metropolitan redevelopment project with a user providing for payment to the [municipality] district of such revenues as upon the basis of such determinations and findings will be sufficient to pay the principal of and interest on the bonds issued to finance the project, to build up and maintain any reserves deemed advisable by the [local governing body] district board in connection [therewith] with the project and to pay the costs of maintaining the project in good repair and keeping it properly insured unless the financing agreement obligates the user to pay for the maintenance of and insurance on the project." 

     Section 38. Section 3-60A-42 NMSA 1978 (being Laws 1979, Chapter 391, Section 42) is amended to read:

     "3-60A-42. [REVENUE] TAX INCREMENT BONDS--REFUNDING.--

          A. [Any revenue] Tax increment bonds issued [under] pursuant to the provisions of the Redevelopment Bonding Law and at any time outstanding may [at any time and from time to time] be refunded by a [municipality] district by the issuance of [its] refunding bonds in [such] an amount [as the governing body may deem] deemed necessary by the district board to refund the principal of the bonds [to be so refunded], any unpaid interest [thereon] on the bonds and any premiums and incidental expenses necessary to be paid in connection [therewith] with the bonds.

          B. [Any such refunding may be effected] Whether [the] tax increment bonds to be refunded have or have not matured [or shall thereafter mature], refunding may occur either by sale of the refunding bonds and the direct or indirect application of the proceeds [thereof, directly or indirectly] to the payment of the tax increment bonds to be refunded [thereby] or by exchange of the refunding bonds for the tax increment bonds to be refunded [thereby], but the holders of any bonds to be [so] refunded shall not be compelled, without their consent, to surrender their bonds for payment or exchange prior to the date on which they are payable by maturity date, option to redeem or otherwise or if they are called for redemption prior to the date on which they are by their terms subject to redemption by option or otherwise.

          C. All refunding bonds issued under authority of the Redevelopment Bonding Law to refund [revenue] tax increment bonds shall be payable solely from revenues out of which tax increment bonds to be refunded [thereby] are payable or from revenues out of which bonds of the same character may be made payable under the Redevelopment Bonding Law or any other law in effect at the time of the refunding."

     Section 39. Section 3-60A-43 NMSA 1978 (being Laws 1979, Chapter 391, Section 43) is amended to read:

     "3-60A-43. [REVENUE] TAX INCREMENT BONDS--APPLICATION OF PROCEEDS.--[A.] The proceeds from the sale of [any revenue] tax increment bonds shall be applied only for the purpose for which the bonds were issued, and, if for any reason any portion of such proceeds are not needed for the purpose for which the bonds were issued, such unneeded portion of the proceeds shall be applied to the payment of the principal of or the interest on the bonds.

          [B. The cost of acquiring any project shall be deemed to include the actual cost of acquiring a site and the cost of the construction of any part of a project which may be constructed, including architects' and engineers' fees, the purchase price of any part of a project that may be acquired by purchase and all expenses in connection with the authorization, sale and issuance of the bonds to finance such acquisition and any costs incurred by the municipality.]" 

     Section 40. Section 3-60A-44 NMSA 1978 (being Laws 1979, Chapter 391, Section 44) is amended to read:

     "3-60A-44. [NO PAYMENT BY MUNICIPALITY] METROPOLITAN REDEVELOPMENT PROJECT FUNDING--TAX INCREMENT BOND PROCEEDS--DONATIONS.--

          [A. No municipality or public body shall pay out of its general fund or otherwise contribute any part of the costs of acquiring a project and, unless specifically acquired for uses of the character described in the Redevelopment Bonding Law or unless the land is determined by the governing body to be no longer necessary for other municipal purposes or purposes of a public body, shall not use land already owned by the municipality or public body or in which the municipality, or public body has an equity for the construction thereon of a project or any part thereof.

          B.] The entire cost of [acquiring any] funding a metropolitan redevelopment project or carrying out district board powers or duties pursuant to the Metropolitan Redevelopment Code shall be paid out of the proceeds from the sale of the [revenue] tax increment bonds, but this provision shall not be construed to prevent a municipality, metropolitan redevelopment agency or [public body] district from accepting donations of property to be used as a part of any metropolitan redevelopment project or money to be used for defraying any part of the cost of any metropolitan redevelopment project."

     Section 41. Section 3-60A-45 NMSA 1978 (being Laws 1979, Chapter 391, Section 45) is amended to read:

     "3-60A-45. NO MUNICIPAL OPERATION.--[A.] When all principal of, interest on and any prior redemption premium due in connection with the revenue bonds issued for a project leased to a user have been paid in full and in the event the option to purchase or option to renew the lease, if any, contained in the lease has not been exercised as to all of the property contained in the project, the lease shall terminate, the district holding the property shall remit it to the municipality and the municipality shall sell such remaining property or devote the [same] property to municipal purposes other than manufacturing, commercial or industrial.

          [B. Any such sale which is not made pursuant to the exercise of an option to purchase by the user of a project shall be conducted in the same manner as is then provided by law governing the issuer's sale of surplus property.]" 

     Section 42. Section 3-60A-46 NMSA 1978 (being Laws 1979, Chapter 391, Section 46) is amended to read:

     "3-60A-46. LIMITATION OF ACTIONS.--No action shall be brought questioning the legality of any contract, financing agreement, mortgage, trust indenture, proceeding or tax increment bonds executed in connection with any metropolitan redevelopment project or improvements authorized by the [Redevelopment Bonding Law] Metropolitan Redevelopment Code on and after thirty days from the effective date of [the resolution or ordinance authorizing] approval of the issuance of [such] the bonds pursuant to the Metropolitan Redevelopment Code."

     Section 43. [NEW MATERIAL] SHORT TITLE.--Sections 43 through 61 of this act may be cited as the "Metropolitan Redevelopment Tax Act".

     Section 44. [NEW MATERIAL] DEFINITIONS.--As used in the Metropolitan Redevelopment Tax Act:

          A. "blighted area" means an area within the area of operation other than a slum area that substantially impairs or arrests the sound growth and economic health and well-being of a municipality or locale within a municipality or an area that retards the provisions of housing accommodations or constitutes an economic or social burden and is a menace to the public health, safety, morals or welfare in its present condition and use because of the presence of a substantial number of deteriorated or deteriorating structures; predominance of defective or inadequate street layout; faulty lot layout in relation to size, adequacy, accessibility or usefulness; insanitary or unsafe conditions; deterioration of site or other improvements; diversity of ownership; tax or special assessment delinquency exceeding the fair value of the land; defective or unusual conditions of title; improper subdivision; lack of adequate housing facilities in the area; or obsolete or impractical planning and platting or an area where a significant number of commercial or mercantile businesses have closed or significantly reduced their operations due to the economic losses or loss of profit due to operating in the area, low levels of commercial or industrial activity or redevelopment or any combination of such factors; 

          B. "department" means the taxation and revenue department, the secretary of taxation and revenue or any employee of the department exercising authority lawfully delegated to that employee by the secretary;

          C. "district" means a metropolitan redevelopment district formed pursuant to the Metropolitan Redevelopment Tax Act;

          D. "district board" means the board of directors of a district;

          E. "governing body" means the board or body in which the legislative powers of a municipality are vested;

          F. "metropolitan redevelopment project" means an activity or undertaking designed to eliminate a slum area or a blighted area;

          G. "municipality" means any incorporated city, town or village, whether incorporated under general act, special act or special charter, and an H-class county;

          H. "qualified elector" means any person who is qualified to voter under the provisions of the United States constitution;

          I. "slum area" means an area within the area of operation in which there are numerous residential or nonresidential buildings, improvements and structures that are dilapidated, deteriorated, aged or obsolete or that have inadequate provision for ventilation, light, air or sanitation or the area lacks open spaces, high density of population, overcrowding or the existence of conditions that endanger life or property by fire or other causes, and the area is conducive to ill health, transmission of disease, infant mortality, juvenile delinquency or crime and is detrimental to the public health, safety, morals and welfare; and

          J. "voter" means any qualified elector who is registered under the provisions of the Election Code.

     Section 45. [NEW MATERIAL] RESOLUTION DECLARING INTENTION TO FORM DISTRICT.--

          A. If the public convenience and necessity require, and on presentation of a petition signed by at least twenty-five percent of the voters proposed to be included in a district that may be referred to as a "metropolitan redevelopment district", the governing body of a municipality may adopt a resolution declaring its intention to finance a metropolitan redevelopment project within the municipality and to form a district that would be subject to the tax increment procedures set forth in the Metropolitan Redevelopment Tax Act for the purpose of financing that metropolitan redevelopment project. The resolution shall also state the municipality's intention to include in the district contiguous or noncontiguous property within an area in which the metropolitan redevelopment project proposed to be financed is located. A district shall be wholly within the corporate boundaries of the municipality. If the governing body fails to act within ninety days following presentation of a petition to create a district, the petition shall be deemed to have been accepted by the governing body, which shall adopt a resolution and hold a public hearing pursuant to this section. The resolution shall state:

                (1) the area to be included within a district;

                (2) a description of the metropolitan redevelopment project for which the district is proposed for formation and to which tax increment procedures pursuant to the Metropolitan Redevelopment Tax Act are proposed to be applied;

                (3) a general description of the tax increment procedures that will be used to finance the metropolitan redevelopment project for which a district is formed;

                (4) a general plan for the district that is on file with the clerk that includes a map depicting the boundaries of the district;

                (5) a notice of public hearing in conformity with the requirements of the Metropolitan Redevelopment Tax Act;

                (6) the place where written objections to the formation of the district may be filed by the owner;

                (7) that formation of the district may result in the use of tax increment procedures and the issuance of municipal gross receipts tax increment bonds pursuant to the Metropolitan Redevelopment Tax Act for the financing of the metropolitan redevelopment projects; and

                (8) whether the district will be governed by a district board comprised of the members of the governing body, ex officio, or comprised of five directors initially appointed by the governing body.

          B. The resolution shall direct that a hearing on formation of the district be scheduled and the notice be mailed and published as provided in the Metropolitan Redevelopment Tax Act.

          C. Before adopting a resolution pursuant to this section, a general plan for the metropolitan redevelopment project for which the formation of a district is proposed shall be filed with the clerk of the municipality.

     Section 46. [NEW MATERIAL] NOTICE AND PUBLIC HEARING.--

          A. The notice of public hearing to be held concerning the formation of a district pursuant to the Metropolitan Redevelopment Tax Act shall be mailed by registered or certified United States mail, postage prepaid, to all registered voters in the proposed district at least thirty days prior to the date of the hearing. In addition, notice shall be published once each week for two successive weeks in a newspaper of general circulation in the municipality in which the proposed district lies. The last publication shall be at least three days before the date of the hearing. The notice shall comply with requirements of Subsections B and C of this section.

          B. The municipal clerk shall execute a notice, which shall read substantially as follows:

"To whom it may concern:

The governing body of the (municipality) of _____________, on (Date), adopted the attached resolution declaring its intention to form a metropolitan redevelopment district subject to gross receipts tax increment financing procedures for the purpose of financing a metropolitan redevelopment project. A hearing on formation will be held on (Date), at (Time) at (Location).".

          C. A summary of the resolution declaring the governing body's intention to form the district shall be attached to the notice, and the municipal clerk shall cause a copy to be mailed to the registered voters in the district and to all other persons who have filed a written request for a copy of the notice within the six months preceding or at any time following the adoption of the resolution of intent to form the district. The municipal clerk shall also publish a copy of the notice and resolution summary at least twice in a newspaper of general circulation in the municipality in which the proposed district lies. The clerk shall execute an affidavit of mailing stating the date of mailing and the names and addresses of the persons to whom the notices and copies of the resolutions were mailed. The clerk shall obtain an affidavit from the newspaper in which the publication was made. The clerk shall cause both affidavits to be placed in the official records of the municipality. The affidavits are conclusive evidence of the mailing and publishing of notice. Notice shall not be held invalid for failure of delivery to the addressee.

     Section 47. [NEW MATERIAL] ORDER FORMING DISTRICT--ELECTION.--

          A. The governing body shall determine during July of a calendar year whether the district should be formed based upon the interests, convenience or necessity of the residents of the district and the municipality in which the proposed district would be located. If the governing body determines that the district should be formed, it shall adopt a resolution ordering that the district be formed and then ordering that an election be held on the question whether to form the district. A resolution ordering a formation of the district shall state that the district will be governed by a district board consisting of members of the governing body, ex officio, or, upon determination of the governing body, five directors appointed by the governing body, and shall contain the names of the five initial directors and the terms of office of each. If the governing body appoints a district board, it shall appoint a treasurer and a clerk from the appointed members.

          B. The conduct of a formation election shall meet the requirements of the Metropolitan Redevelopment Tax Act.

     Section 48. [NEW MATERIAL] NOTICE AND CONDUCT OF ELECTION.--

          A. An election for a formation of a district pursuant to the Metropolitan Redevelopment Tax Act shall be a nonpartisan election called by posting notices in three public places within the boundaries of the district not less than twenty days before the election. Notice shall also be published in a newspaper of general circulation in the municipality, or, if there is no newspaper so circulated in the municipality, in a newspaper of general circulation in the county in which the municipality is located once a week for two consecutive weeks before the election. The notice shall state:

                (1) the place of holding the election and provisions for voting by mail, if any;

                (2) the hours during the day, not less than six, in which the polls will be open;

                (3) the boundaries of the proposed district; and

                (4) that a general plan is on file with the municipal clerk.

          B. The governing body shall determine the date of the election and the polling places for the election. The governing body may establish provisions for voting by mail.

          C. Voter lists shall be used to determine the registered voters in a district.

          D. Except as otherwise provided by this section, the election shall comply with the general election laws of this state. The ballot material provided to each voter shall include:

                (1) an impartial description of the metropolitan redevelopment project contemplated within the proposed district and a brief description of arguments for and against the formation of the district, if any; and

                (2) the ballot, which shall pose the question to be voted upon as "metropolitan redevelopment district, yes" and "metropolitan redevelopment district, no".

          E. The governing body may provide for the returns of the election to be made in person or by mail.

          F. Within thirty days after an election, the governing body shall meet and canvass the returns, determining the number of votes properly cast for and against the question. At least a three-fourths' majority of the votes of registered voters in the district cast at the election shall be required for formation of the district. The canvass may be continued for an additional period not to exceed thirty days at the election of the governing body for the purpose of completing the canvass. Failure of a majority to vote in favor of the matter submitted shall not prejudice the submission of the same or similar matters at a later election.

     Section 49. [NEW MATERIAL] FORMATION.--

          A. If the formation of the district is approved by at least a three-fourths' majority of the votes of registered voters in the district cast at the election, the governing body shall cause a copy of the resolution ordering formation of the district to be delivered to the department and the local government division of the department of finance and administration.

          B. Following formation of the district, the district board shall administer in a reasonable manner the implementation of the general plan for the metropolitan redevelopment project of the district.

     Section 50. [NEW MATERIAL] APPOINTMENT OF DIRECTORS-- QUALIFICATIONS--TERMS--RESUMPTION OF GOVERNANCE BY GOVERNING BODY.--

          A. The governing body, at its option, may authorize the appointment of a separate district board. In the case of an appointed district board, three of the appointed directors shall serve an initial term of six years. Two of the appointed directors shall serve an initial term of four years. The resolution forming the district shall state which directors shall serve four-year terms and which shall serve six-year terms. If a vacancy occurs on the district board because of death, resignation or inability of the director to discharge the duties of director, the governing body shall appoint a director to fill the vacancy, who shall hold office for the remainder of the unexpired term until his successor is appointed or elected.

          B. A director may be a director of more than one district.

          C. At the end of the appointed directors' initial term, the governing body shall resume governance of the district as its board or, at its option, shall hold an election of new directors by majority vote of the registered voters of the district.

     Section 51. [NEW MATERIAL] POWERS OF A DISTRICT BOARD.--

          A. In addition to the powers otherwise granted to a municipality pursuant to the Metropolitan Redevelopment Tax Act, the district board, in implementing a general plan pursuant to that act, may:

                (1) enter into contracts and expend money for a metropolitan redevelopment project within a district in the municipality;

                (2) enter into development agreements with municipalities, counties or other local government entities in connection with property located within the boundaries of the district;

                (3) enter into intergovernmental agreements as provided in the Joint Powers Agreements Act for the planning, design, inspection, ownership, control, maintenance, operation or repair of infrastructure for a metropolitan redevelopment project or the provision of enhanced services by the municipality in the district and any other purpose authorized by the Metropolitan Redevelopment Tax Act;

                (4) sell, lease or otherwise dispose of district property if the sale, lease or conveyance is not a violation of the terms of any contract or bond covenant of the municipality;

                (5) employ staff, counsel and consultants;

                (6) accept gifts or grants and incur and repay loans for a metropolitan redevelopment project;

                (7) pay financial, legal and administrative costs for a metropolitan redevelopment project; and

                (8) use public easements and rights of way in or across public property, roadways, highways, streets or other thoroughfares and other public easements and rights of way, whether in or out of the geographical limits of the district or the municipality.

          B. Notwithstanding the provisions of the Procurement Code, or local procurement requirements that may otherwise be applicable to the municipality in which the district is located, the district board, whether appointed or composed of members of the governing body, ex officio, may enter into contracts to carry out any of the district's authorized powers with a contractor or other person or entity, on such terms and with such persons as the district board determines to be appropriate.

     Section 52. [NEW MATERIAL] RECORDS--BOARD OF DIRECTORS--OPEN MEETINGS.--

          A. The district shall keep the following records, which shall be open to public inspection:

                (1) minutes of all meetings of the district board;

                (2) all resolutions;

                (3) accounts showing all money received and disbursed;

                (4) the annual budget; and

                (5) all other records required to be maintained by law.

          B. The district board shall appoint a clerk and treasurer for the district.

     Section 53. [NEW MATERIAL] OTHER DISTRICTS.--The formation of a district pursuant to the Metropolitan Redevelopment Tax Act shall not prevent the subsequent establishment of similar districts.

     Section 54. [NEW MATERIAL] RECORDING DOCUMENTS.--The municipality shall file and record with the county clerk the resolution ordering formation of the district, the general plan of the district and the canvass of any general obligation bond election.

     Section 55. [NEW MATERIAL] DISSOLUTION OF DISTRICT.--A district shall be dissolved by the governing body of the municipality in which the district board lies by a resolution of the governing body upon a determination that each of the following conditions exist:

          A. the metropolitan redevelopment project for which the district was formed is complete or provision has been made for metropolitan redevelopment projects to be conveyed to the municipality in which the district is located;

          B. the municipality has no outstanding bond obligations issued to finance a metropolitan redevelopment project in the district; and

          C. all obligations of the district pursuant to any development agreement have been satisfied.

     Section 56. [NEW MATERIAL] LIMITATION OF LIABILITY.--Neither any member of a district board nor any person acting on behalf of a district, while acting within the scope of that person's authority, shall be subject to any personal liability for any action taken or omitted within that scope of authority.

     Section 57. [NEW MATERIAL] CUMULATIVE AUTHORITY.--The Metropolitan Redevelopment Tax Act shall be regarded as supplemental and additional to powers conferred by other laws and shall not be regarded as in derogation of any existing powers.

     Section 58. [NEW MATERIAL] ALTERNATIVE METHOD OF FINANCING.--

          A. Effective for tax years beginning on or after January 1, 2006, the governing body may elect by ordinance to use the procedures set forth in the Metropolitan Redevelopment Tax Act for financing metropolitan redevelopment projects within districts within a municipality. Those procedures may be used in addition to, or in conjunction with, other methods provided by law for financing such projects.

          B. The tax increment method, for the purpose of financing metropolitan redevelopment projects, is the dedication for further use in metropolitan redevelopment projects of the increase in revenues to municipalities from the imposition of local option gross receipts taxes in districts within those municipalities and from distributions to those municipalities pursuant to Section 7-1-6.46 NMSA 1978 attributable to state gross receipts taxes collected within those districts.

     Section 59. [NEW MATERIAL] TAX INCREMENT PROCEDURES.--After the last day of the calendar year during which a municipality issues bonds for a metropolitan redevelopment project, and upon request by a municipality, the department shall certify to the municipality as a base revenue value the amount of gross receipts taxes that the department collected on behalf of the municipality pursuant to the Municipal Local Option Gross Receipts Taxes Act within a district during the calendar year preceding the issuance of bonds for the metropolitan redevelopment project and the amount distributed during the calendar year to the municipality pursuant to Section 7-1-6.46 NMSA 1978 attributable to state gross receipts taxes collected within that district. All applicable municipal gross receipts tax rates imposed pursuant to the Municipal Local Option Gross Receipts Taxes Act shall then be applied to the gross receipts that the department determines are collected in the district during the calendar year in which bonds are issued pursuant to the Metropolitan Redevelopment Tax Act, and that amount shall be added to the amount distributed to the municipality during that calendar year pursuant to Section 7-1-6.46 NMSA 1978, which is attributable to gross receipts collected within the same district. The amount by which that sum exceeds the base revenue value shall be credited to the district and deposited in the district redevelopment fund.

     Section 60. [NEW MATERIAL] DISTRICT REDEVELOPMENT FUND.--The "district redevelopment fund" is created in the state treasury. The fund shall consist of money deposited into the fund pursuant to the Metropolitan Redevelopment Tax Act. An amount equal to the amount of money in the fund credited to a district pursuant to the Metropolitan Redevelopment Tax Act shall be appropriated to the municipality in which the district lies for the payment of the principal of, premium, if any, and interest on municipal gross receipts tax increment bonds issued by the municipality for the financing of a metropolitan redevelopment project in that district. Disbursements from the fund shall be by warrant of the secretary of finance and administration upon vouchers signed by a director serving on the district board of that district. Money in the fund shall not revert to the general fund at the end of a fiscal year.

     Section 61. [NEW MATERIAL] MUNICIPAL GROSS RECEIPTS TAX INCREMENT BONDS--AUTHORITY TO ISSUE--PLEDGE OF REVENUES.--

          A. For the purpose of financing a metropolitan redevelopment project, in whole or in part, for a district within a municipality, that municipality may issue bonds, to be known as "municipal gross receipts tax increment bonds", that are payable from and secured by gross receipts taxes credited to a district within that municipality and deposited in the district redevelopment fund pursuant to the Metropolitan Redevelopment Tax Act. Those bonds shall be sold to the New Mexico finance authority. The principal of, premium, if any, and interest on the bonds shall be payable from and secured by a pledge of those revenues, and the municipality shall irrevocably pledge all or part of those revenues to the payment of the bonds. The revenues deposited in the district redevelopment fund or the designated part thereof may be used only for the payment of the principal of, premium, if any, and interest on the bonds, and a holder of the bonds shall have a lien against the revenues deposited in the district redevelopment fund or the designated part thereof for the payment of the principal of, premium, if any, and interest on such bonds. If the issuance of bonds pursuant to the Metropolitan Redevelopment Tax Act impairs the ability of a municipality to meet its principal or interest payment obligations for revenue bonds outstanding prior to July 1, 2005 that are secured by the pledge of all or part of the municipality's revenue from the distribution made to the municipality pursuant to Section 7-1-6.4 NMSA 1978, the amount distributed to the municipality pursuant to that section shall be increased by an amount sufficient to meet any required payment.

          B. Bonds issued pursuant to this section shall not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction, shall not be general obligations of the municipality, shall be collectible only from the proper pledged revenues and shall not be subject to the provisions of any other law or charter relating to the authorization, issuance or sale of tax increment bonds or tax increment bond anticipation notes. Bonds issued pursuant to the Metropolitan Redevelopment Tax Act are declared to be issued for an essential public and governmental purpose and, together with interest thereon, shall be exempted from all taxes by the state.

          C. The bonds shall be authorized by an ordinance of the municipality shall be in such denominations, bear such date and mature, at a time not exceeding twenty years from their date, bear interest at a rate or have appreciated principal value not exceeding the maximum net effective interest rate permitted by the Public Securities Act and be in such form, carry registration privileges, be executed in such manner, be payable in such place within or without the state, be payable at intervals or at maturity and be subject to such terms of redemption as the authorizing ordinance or supplemental ordinance or supplemental resolution of the municipality may provide.

          D. The bonds shall be sold to the New Mexico finance authority in one or more series at, below or above par, in a manner and for a price determined by the governing body in its discretion; provided that the price at which the bonds are sold shall not result in a net effective interest rate that exceeds the maximum permitted by the Public Securities Act. As an incidental expense of a metropolitan redevelopment project or portion of that project financed with the bonds, the municipality may employ financial and legal consultants with regard to financing the project.

          E. In case any of the public officials of the municipality whose signatures appear on any bonds issued pursuant to the Metropolitan Redevelopment Tax Act shall cease to be public officials before the delivery of the bonds or notes, the signatures shall be valid and sufficient for all purposes, the same as if the officials had remained in office until delivery. Any provision of law to the contrary notwithstanding, any bonds issued pursuant to the Metropolitan Redevelopment Tax Act shall be fully negotiable. 

          F. In any suit, action or proceeding involving the validity or enforceability of any bond issued pursuant to the Metropolitan Redevelopment Tax Act, any bond reciting in substance that it has been issued by the municipality in connection with a metropolitan redevelopment project shall be conclusively deemed to have been issued for that purpose.

          G. The proceedings under which bonds are authorized to be issued and any mortgage, deed of trust, trust indenture or other lien or security device on real and personal property given to secure the lien or security device may contain provisions customarily contained in instruments securing bonds and notes and constituting a covenant with the bondholders.

          H. The municipality shall have the power to issue renewal notes, to issue bonds and, whenever it deems refunding expedient, to refund any bonds by the issuance of new bonds, whether the bonds to be refunded have or have not matured, and to issue bonds partly to refund bonds then outstanding and partly for other purposes in connection with financing metropolitan redevelopment projects, in whole or in part. Refunding bonds issued pursuant to the Metropolitan Redevelopment Tax Act to refund outstanding tax increment bonds shall be payable from gross receipts tax revenues, out of which the bonds to be refunded thereby are payable from other lawfully available revenues.

          I. The proceeds from the sale of bonds issued pursuant to the Metropolitan Redevelopment Tax Act shall be applied only for the purpose for which the bonds were issued and if, for any reason, any portion of the proceeds are not needed for the purpose for which the bonds were issued, the unneeded portion of the proceeds shall be applied to the payment of the principal or the interest on the bonds.

          J. The cost of financing a metropolitan redevelopment project includes the actual cost of acquiring a site and the cost of the construction of any part of the metropolitan redevelopment project, including architects' and engineers' fees, the purchase price of any part of that project that may be acquired by purchase and all expenses in connection with the authorization, sale and issuance of the bonds to finance the acquisition, and any related costs incurred by the municipality.

     Section 62. REPEAL.--Sections 3-60A-29, 3-60A-30, 3-60A-32, 3-60A-33, 3-60A-38 and 3-60A-41 NMSA 1978 (being Laws 1979, Chapter 391, Sections 29, 30, 32, 33, 38 and 41) are repealed.

     Section 63. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2005.

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