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AN ACT

RELATING TO ECONOMIC DEVELOPMENT; AMENDING THE INDUSTRIAL

REVENUE BOND ACT TO PROVIDE FOR ISSUANCE OF BONDS TO PROMOTE

FILMMAKING; RECONCILING CONFLICTING AMENDMENTS TO THE SAME

SECTION OF LAW BY REPEALING LAWS 2002, CHAPTER 25, SECTION 1.

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

Section 1. Section 3-32-1 NMSA 1978 (being Laws 1965,

Chapter 300, Section 14-31-1, as amended by Laws 2002,

Chapter 25, Section 1 and by Laws 2002, Chapter 37, Section

1) is amended to read:

"3-32-1. INDUSTRIAL REVENUE BOND ACT--DEFINITIONS.--

Wherever used in the Industrial Revenue Bond Act unless a

different meaning clearly appears in the context, the

following terms whether used in the singular or plural shall

be given the following respective interpretations:

A. "municipality" means a city, town or village in

New Mexico;

B. "project" means any land and building or other

improvements thereon, the acquisition by or for a New Mexico

corporation of the assets or stock of an existing business or

corporation located outside the state to be relocated within

or near the municipality in the state and all real and

personal properties deemed necessary in connection therewith,

whether or not now in existence, which shall be suitable for

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use by the following or by any combination of two or more

thereof:

(1) an industry for the manufacturing,

processing or assembling of agricultural or manufactured

products;

(2) a commercial enterprise in storing,

warehousing, distributing or selling products of agriculture,

mining or industry but does not include a facility designed

for the sale of goods or commodities at retail or

distribution to the public of electricity, gas, water or

telephone or other services commonly classified as public

utilities;

(3) a business in which all or part of the

activities of the business involve the supplying of services

to the general public or to governmental agencies or to a

specific industry or customer but does not include an

establishment primarily engaged in the sale of goods or

commodities at retail;

(4) a water distribution or irrigation

system, including without limitation, pumps, distribution

lines, transmission lines, towers, dams and similar

facilities and equipment, designed to provide water to a

vineyard or winery;

(5) an electric generation facility other

than one for which both location approval and a certificate

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of convenience and necessity are required prior to commencing

construction or operation of the facility, pursuant to the

Public Utility Act and Electric Utility Industry

Restructuring Act of 1999;

(6) a 501(c)(3) corporation; and

(7) the production or postproduction of

films, of which at least eighty percent of the employees are

residents of New Mexico.

C. "governing body" means the board or body in

which the legislative powers of the municipality are vested;

D. "property" means any land, improvements

thereon, buildings and any improvements thereto, machinery

and equipment of any and all kinds necessary to the project,

operating capital and any other personal properties deemed

necessary in connection with the project;

E. "mortgage" means a mortgage or a mortgage and

deed of trust or the pledge and hypothecation of any assets

as collateral security;

F. "health care service" means the diagnosis or

treatment of sick or injured persons or medical research and

includes the ownership, operation, maintenance, leasing and

disposition of health care facilities such as hospitals,

clinics, laboratories, x-ray centers and pharmacies and, for

any small municipality only, office facilities for

physicians;

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G. "refinance a hospital or 501(c)(3) corporation

project" means the issuance of bonds by a municipality and

the use of all or substantially all of the proceeds to

liquidate any obligations previously incurred to finance or

aid in financing a project of a nonprofit corporation engaged

in health care services, including nursing homes, or of a

501 (c)(3) corporation, which would constitute a project

under the Industrial Revenue Bond Act had it been originally

undertaken and financed by a municipality pursuant to the

Industrial Revenue Bond Act; and

H. "501(c)(3) corporation" means a corporation

that demonstrates to the taxation and revenue department that

it has been granted exemption from the federal income tax as

an organization described in Section 501(c)(3) of the

Internal Revenue Code of 1986, as amended or renumbered."

Section 2. Section 3-32-4 NMSA 1978 (being Laws 1965,

Chapter 300, Section 14-31-2, as amended) is amended to read:

"3-32-4. LEGISLATIVE INTENT.--It is the intent of the

legislature by the passage of the Industrial Revenue Bond Act

to authorize municipalities to acquire, own, lease or sell

projects for the purpose of promoting industry and trade

other than retail trade by inducing manufacturing,

industrial, filmmaking and other commercial enterprises to

locate or expand in this state, promoting the use of the

agricultural products and natural resources of this state and

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promoting a sound and proper balance in this state between

agriculture, commerce and industry. It is intended that each

project be self-liquidating. It is not intended to authorize

any municipality itself to operate any manufacturing,

filmmaking, industrial or commercial enterprise. The

Industrial Revenue Bond Act shall be liberally construed in

conformity with the intent set forth in this section."

Section 3. Section 3-32-8 NMSA 1978 (being Laws 1965,

Chapter 300, Section 14-31-5) is amended to read:

"3-32-8. SECURITY FOR BONDS.--The principal of and

interest on any bonds issued under the authority of the

Industrial Revenue Bond Act shall be secured by a pledge of

the revenues out of which such bonds shall be made payable,

may be secured by a mortgage covering all or any part of the

project from which the revenues so pledged may be derived and

may be secured by a pledge of the lease of such project or, if

for a filmmaking project, by the prints, distribution or other

contracts of the filmmaking enterprise. The ordinance and

proceedings under which the bonds are authorized to be issued

or any such mortgage may contain any agreements and provisions

customarily contained in instruments securing bonds, including

without limiting the generality of the foregoing provisions

respecting the fixing and collection of all revenues from any

project covered by such proceedings or mortgage, the terms to

be incorporated in the lease of the project, the maintenance

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and insurance of the project, the creation and maintenance of

special funds from the revenues from the project and the

rights and remedies available in event of default to the

bondholders or to the trustee under a mortgage, all as the

governing body deems advisable and as are not in conflict with

the provisions of the Industrial Revenue Bond Act; provided,

however, that in making any such agreements or provisions, a

municipality shall not have the power to obligate itself

except with respect to the project and the application of the

revenues therefrom and shall not have the power to incur a

pecuniary liability or a charge upon its general credit or

against its taxing powers. The proceedings authorizing any

bonds under the Industrial Revenue Bond Act and any mortgage

securing the bonds may provide the procedure and remedies in

the event of default in payment of the principal of or the

interest on the bonds or in the performance of any agreement.

No breach of any such agreement shall impose any pecuniary

liability upon a municipality or any charge upon its general

credit or against its taxing powers."