SENATE BILL 238
53rd legislature - STATE OF NEW MEXICO - second session, 2018
INTRODUCED BY
Steven P. Neville
AN ACT
RELATING TO PUBLIC FINANCE; REQUIRING CERTAIN AGREEMENTS AND CERTIFICATIONS WITH RESPECT TO INDUSTRIAL REVENUE BOND-FUNDED PROJECTS ACQUIRED BY MUNICIPALITIES OR COUNTIES WITHIN CERTAIN BOUNDARIES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 3-32-6 NMSA 1978 (being Laws 1965, Chapter 300, Section 14-31-3, as amended) is amended to read:
"3-32-6. ADDITIONAL POWERS CONFERRED ON MUNICIPALITIES.--In addition to any other powers that it may now have, a municipality shall have the following powers:
A. to acquire, whether by construction, purchase, gift or lease, one or more projects [that shall be located within this state and may be located within or without the municipality or partially within or partially without the municipality, but which shall not be located more than fifteen miles outside of the corporate limits of the municipality]; provided that:
(1) urban transit buses qualifying as a project pursuant to Subsection B of Section 3-32-3 NMSA 1978 need not be continuously located within this state, but the commercial enterprise using the urban transit buses for leasing shall meet the location requirement of this subsection; [and]
(2) a municipality shall not acquire [any] an electricity generation facility project unless the acquisition is approved by the [local school] board of education of the school district in which [a] the project is located and the governing body, the [local school] board of education and the person proposing the project negotiate and determine [the amount of] an annual [in-lieu tax payment to be made] amount in lieu of taxes that the person will pay to the school district [by the person proposing the project] for the period that the municipality owns and leases the project, and provided such approval shall not be unreasonably withheld; and
(3) a municipality shall not acquire a project located outside the corporate limits of a municipality unless:
(a) the project is located entirely within an area that does not extend more than fifteen miles beyond the corporate limits of the municipality; and
(b) the governing body of each county within which the project is located certifies the project's compliance with that county's ordinances and enters into an agreement with the person proposing the project for: 1) an annual amount in lieu of taxes that the person will pay to the county for the period that the municipality owns and leases the project; or 2) other consideration that the person will provide to the county instead of an annual payment in lieu of taxes for the period that the municipality owns and leases the project;
B. to sell or lease or otherwise dispose of any or all of its projects upon such terms and conditions as the governing body may deem advisable and as shall not conflict with the provisions of the Industrial Revenue Bond Act;
C. to issue revenue bonds for the purpose of defraying the cost of acquiring by construction and purchase, or either, any project and to secure the payment of such bonds, all as provided in the Industrial Revenue Bond Act. [No] A municipality shall not have the power to operate [any] a project as a business or in any manner except as lessor;
D. to refinance one or more hospital or 501(c)(3) corporation projects and to acquire any such hospital or 501(c)(3) corporation project whether by construction, purchase, gift or lease [which hospital or 501(c)(3) corporation project shall be located within this state and may be located within or without the municipality or partially within or partially without the municipality, but which shall not be located more than fifteen miles outside of the corporate limits of the municipality], and to issue revenue bonds to refinance and acquire a hospital or 501(c)(3) corporation project and to secure the payment of such bonds, all as provided in the Industrial Revenue Bond Act. A municipality shall not have the power to operate a hospital or 501(c)(3) corporation project as a business or in any manner except as lessor; and
E. to refinance one or more projects of [any] a private institution of higher education and to acquire any such project, whether by construction, purchase, gift or lease; [provided that the project shall be located within this state and may be located within or without the municipality or partially within or partially without the municipality, but the project shall not be located more than fifteen miles outside of the corporate limits of the municipality, and] to issue revenue bonds to refinance and acquire [any] a project of [any] a private institution of higher education; and to secure the payment of such bonds. A municipality shall not have the power to operate a project of a private institution of higher education as a business or in any manner except as lessor."
SECTION 2. Section 4-59-2 NMSA 1978 (being Laws 1975, Chapter 286, Section 2, as amended) is amended to read:
"4-59-2. DEFINITIONS.--As used in the County Industrial Revenue Bond Act, unless the context clearly indicates otherwise:
A. "commission" means the governing body of a county;
B. "county" means a county organized or incorporated in New Mexico;
C. "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;
D. "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;
E. "mortgage" means a mortgage or a mortgage and deed of trust or the pledge and hypothecation of any assets as collateral security;
F. "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 a county but, except as provided in [Paragraph (1) of] Subsection A of Section 4-59-4 NMSA 1978, not within the boundaries of [any] an incorporated municipality in the state, and all real and personal properties deemed necessary in connection therewith, whether or not now in existence, [which] that shall be suitable for 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 that has received a permit from the energy, minerals and natural resources department for a mine that has not been in operation prior to the issuance of bonds for the project for which the enterprise will be involved;
(3) a commercial enterprise that has received any necessary state permit for a refinery, treatment plant or processing plant of energy products that was not in operation prior to the issuance of bonds for the project for which the enterprise will be involved;
(4) 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 or distribution to the public of electricity, gas, telephone or other services commonly classified as public utilities, except for:
(a) water utilities; and
(b) any electric generation facility other than one for which both location approval and a certificate of convenience and necessity are required prior to commencing construction or operation of the facility, pursuant to the Public Utility Act;
(5) 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;
(6) a nonprofit corporation engaged in health care services;
(7) a mass transit or other transportation activity involving the movement of passengers, an industrial park, an office headquarters and a research facility;
(8) a water distribution or irrigation system, including without limitation, pumps, distribution lines, transmission lines, towers, dams and similar facilities and equipment; and
(9) a 501(c)(3) corporation; and
G. "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."
SECTION 3. Section 4-59-4 NMSA 1978 (being Laws 1975, Chapter 286, Section 4, as amended) is amended to read:
"4-59-4. ADDITIONAL POWERS CONFERRED ON COUNTIES.--In addition to any other powers that it may now have, each county shall have the following powers:
A. to acquire, whether by construction, purchase, gift or lease, one or more projects, which shall be located within this state and shall be located within the county outside the boundaries of [any] an incorporated municipality; provided, however, that:
(1) a class A county with a population of [more than three] five hundred thousand or more, according to the most recent federal decennial census, may acquire a [projects] project located anywhere in the county; [and]
(2) a class A county with a population of less than five hundred thousand, according to the most recent federal decennial census, may acquire a project located within the boundaries of an incorporated municipality if the governing body of each municipality within which the project is located certifies the project's compliance with that municipality's ordinances and enters into an agreement with the person proposing the project for: 1) an annual amount in lieu of taxes that the person will pay to the municipality for the period that the county owns and leases the project; or 2) other consideration that the person will provide to the municipality instead of an annual payment in lieu of taxes for the period that the county owns and leases the project; and
[(2)] (3) a county shall not acquire [any] an electricity generation facility project unless the acquisition is approved by the [local school] board of education of the school district in which [a] the project is located and the board of county commissioners, the [local school] board of education and the person proposing the project negotiate and determine [the amount of] an annual [in-lieu tax payment to be made] amount in lieu of taxes that the person will pay to the school district [by the person proposing the project] for the period that the county owns and leases the project, and provided such approval shall not be unreasonably withheld;
B. to sell or lease or otherwise dispose of any or all of its projects upon such terms and conditions as the commission may deem advisable and as shall not conflict with the provisions of the County Industrial Revenue Bond Act; and
C. to issue revenue bonds for the purpose of defraying the cost of acquiring, by construction and purchase, or either, any project and to secure the payment of such bonds, all as provided in the County Industrial Revenue Bond Act. No county shall have the power to operate any project as a business or in any manner except as lessor thereof."
SECTION 4. SAVING CLAUSE.--The provisions of this 2018 act do not apply to a project for which a notice of intent to consider an ordinance issuing industrial revenue bonds has been issued prior to July 1, 2018 pursuant to Section 3-32-6.1 NMSA 1978 by a municipality with a population of less than one hundred fifty according to the most recent federal decennial census.
SECTION 5. APPLICABILITY.--Except as provided in Section 4 of this act, the provisions of this act apply to projects for which industrial revenue bonds are issued on or after July 1, 2018.
SECTION 6. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2018.
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