HOUSE BILL 303
54th legislature - STATE OF NEW MEXICO - second session, 2020
Angelica Rubio and Joanne J. Ferrary
RELATING TO LOCAL GOVERNMENT; AMENDING AND ENACTING SECTIONS OF THE RENEWABLE ENERGY FINANCING DISTRICT ACT; AUTHORIZING RENEWABLE ENERGY FINANCING TO OCCUR THROUGH RENEWABLE ENERGY IMPROVEMENT FINANCING INSTITUTIONS; DIRECTING THE FINANCIAL INSTITUTIONS DIVISION OF THE REGULATION AND LICENSING DEPARTMENT TO DEVELOP RULES TO CERTIFY ELIGIBLE FINANCING ENTITIES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 5-18-1 NMSA 1978 (being Laws 2009, Chapter 180, Section 1) is amended to read:
"5-18-1. SHORT TITLE.--[This act] Chapter 5, Article 18 NMSA 1978 may be cited as the "Renewable Energy Financing District Act"."
SECTION 2. Section 5-18-7 NMSA 1978 (being Laws 2009, Chapter 180, Section 7) is amended to read:
"5-18-7. SPECIAL ASSESSMENT--LIEN CREATED.--
A. The district board may impose a special assessment on property within the district to facilitate the financing of renewable energy improvements to the property. Financing may be provided through bond issuance or an entity that has been certified by the financial institutions division of the regulation and licensing department as a renewable energy improvement financing institution, pursuant to the provisions of Section 3 of this 2020 act. The special assessment shall be sufficient in the case of each property to pay the costs of the financing of the renewable energy improvements, including the costs of bond issuance, debt service and administrative costs of the district and the municipality or county in which the district is located.
B. The special assessment shall be levied and collected at the same time and in the same manner as property taxes are levied and collected, except to the extent that the district board has provided for other imposition and collection procedures. Money derived from the imposition of the special assessment shall be kept separately from other funds of the governing body.
C. A special assessment shall constitute a lien on the property, which shall be effective during the period in which the assessment is imposed and shall have priority over all other liens except liens for ad valorem property taxes.
D. The obligation to pay the special assessment may be prepaid and permanently satisfied, and the district board shall specify the conditions under which this may be achieved."
SECTION 3. A new section of the Renewable Energy Financing District Act is enacted to read:
"[NEW MATERIAL] RENEWABLE ENERGY IMPROVEMENT FINANCING INSTITUTION--CERTIFICATION OF QUALIFIED ENTITIES.--The financial institutions division of the regulation and licensing department shall promulgate rules for the certification of financial institutions or other entities as renewable energy improvement financing institutions. The rules shall ensure that a renewable energy improvement financing institution is a member institution of the federal deposit insurance corporation or the national credit union administration or is an entity that the financial institutions division finds meets generally accepted criteria for financial stability and soundness."
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