0001| HOUSE BILL 871
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0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003| INTRODUCED BY
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0004| PAULINE K. GUBBELS
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0005|
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0006|
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0007|
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0008|
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0009|
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0010| AN ACT
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0011| RELATING TO PUBLIC SECURITIES; AMENDING SECTIONS OF THE NMSA
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0012| 1978.
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0013|
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0014| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0015| Section 1. Section 6-14-2 NMSA 1978 (being Laws 1970,
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0016| Chapter 10, Section 2, as amended) is amended to read:
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0017| "6-14-2. DEFINITIONS.--As used in the Public Securities
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0018| Act:
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0019| A. "net effective interest rate" means the interest
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0020| rate [based on the actual price paid to a public body for
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its] of public securities, [calculated to maturity
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according to standard tables of bond values] compounded
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0023| semiannually, necessary to discount the scheduled debt service
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0024| payments of principal and interest to the date of the public
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0025| securities and to the price paid to the public body for the
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0001| public securities, excluding any interest accrued to the date
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0002| of delivery and based upon a year with the same number of days
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0003| as the number of days for which interest is computed on the
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0004| public securities;
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0005| B. "public body" means this state or any
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0006| department, board, agency or instrumentality of the state, any
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0007| county, city, town, village, school district, other district,
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0008| educational institution or any other governmental agency or
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0009| political subdivision of the state; and
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0010| C. "public securities" means any bonds, notes,
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0011| warrants or other obligations now or hereafter authorized to be
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0012| issued by any public body pursuant to the provisions of any
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0013| general or special law enacted by the legislature, but does not
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0014| include bonds, notes, warrants or other obligations issued
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0015| pursuant to:
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0016| (1) the Industrial Revenue Bond Act;
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0017| (2) the County Improvement District Act;
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0018| (3) Sections 3-33-1 through 3-33-43 NMSA 1978;
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0019| (4) the Pollution Control Revenue Bond Act;
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0020| (5) the County Pollution Control Revenue Bond
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0021| Act;
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0022| (6) the County Industrial Revenue Bond Act;
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0023| (7) the Metropolitan Redevelopment Code;
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0024| (8) the Supplemental Municipal Gross Receipts
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0025| Tax Act;
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0001| (9) the Hospital Equipment Loan Act; or
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0002| (10) the New Mexico Finance Authority Act."
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0003| Section 2. Section 6-15-5 NMSA 1978 (being Laws 1929,
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0004| Chapter 201, Section 3, as amended) is amended to read:
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0005| "6-15-5. SALE OF BONDS.--
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0006| A. Except as provided in Subsection B of this
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0007| section, before any bonds issued by a municipal corporation are
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0008| offered for sale, the corporate authorities issuing the bonds
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0009| shall designate the maximum [rate of interest the bonds shall
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bear and shall designate the maximum] net effective interest
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0011| rate the bonds shall bear, which shall not exceed the maximum
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0012| permitted by the Public Securities Act. All the bonds shall be
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0013| sold at either public or negotiated sale [and] or
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0014| private sale to the state of New Mexico.
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0015| B. If sold at public sale, a notice calling for
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0016| bids for the purchase of the bonds shall be published once [a
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week for two consecutive weeks] in a newspaper having local
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0018| circulation or in any financial newspaper or periodical. The
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0019| notice shall specify a place and designate a day and hour
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0020| subsequent to the date of the publication when sealed bids
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0021| shall be received and publicly opened for the purchase of the
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0022| bonds. The notice shall specify the maximum [rate of interest
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the bonds shall bear, the maximum] net effective interest rate
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0024| permitted for the bonds and the maximum discount if a discount
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0025| is allowed by the governing body and shall require bidders to
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0001| submit a bid specifying the lowest rate [or rates] of
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0002| interest and any premium or discount if allowed by the
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0003| governing body at, above or below par at which the bidder will
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0004| purchase the bonds. The bonds shall be sold to the
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0005| responsible bidder making the best bid determined by the
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0006| municipal corporation as set forth in the notice, subject to
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0007| the right of the governing body to reject any and all bids and
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0008| readvertise or sell the bonds at negotiated sale or at private
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0009| sale to the state of New Mexico. All bids shall be sealed
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0010| [and] or sent by facsimile or other electronic transition to
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0011| the municipal corporation as set forth in the notice. Except
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0012| for the bid of the state of New Mexico if one is received,
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0013| all bids shall be accompanied by a deposit of not less than
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0014| two percent of the principal amount of the bonds, either in
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0015| the form of a financial surety bond or in cash or by cashier's
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0016| or treasurer's check of, or by certified check drawn on, a
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0017| solvent commercial bank or trust company in the United States,
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0018| which deposit shall be returned if the bid is not accepted.
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0019| The financial surety bond or the long-term debt obligations of
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0020| the issuer, or person guarantying the obligations of the
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0021| issuer, of the financial surety bond shall be rated in one of
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0022| the top two rating categories of a nationally recognized rating
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0023| agency, without regard to any modification of the rating, and
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0024| the financial surety bond must be issued by an insurance
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0025| company licensed to issue such a bond in New Mexico. If the
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0001| successful bidder does not complete the purchase of the bonds
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0002| within thirty days following the acceptance of his bid or
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0003| within ten days after the bonds are made ready and are offered
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0004| by the municipal corporation for delivery, whichever is later,
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0005| the amount of his deposit shall be forfeited to the municipal
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0006| corporation issuing the bonds, and, in that event, the
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0007| governing body may accept the bid of the bidder making the next
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0008| best bid. If all bids are rejected, the governing body
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0009| [shall] may readvertise the bonds for sale in the same
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0010| manner as for the original advertisement or sell the bonds at
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0011| a negotiated sale or at private sale to the state of New
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0012| Mexico. If there are two or more equal bids and the bids are
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0013| the best bids received, the governing body shall determine
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0014| which bid shall be accepted.
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0015| [B. Bonds issued by a municipal corporation may be
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sold to the state at private sale without advertisement]
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0017| C. Except as provided in this section, bonds to be
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0018| issued by a municipal corporation for various purposes may be
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0019| sold and issued as a single combined issue even though they may
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0020| have been authorized by separate votes at an election or
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0021| elections. Bonds authorized by any city, town or village for
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0022| the construction or purchase of a system for supplying water, a
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0023| sanitary sewer system or a storm sewer system may be combined
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0024| with each other and sold and issued as a single issue but may
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0025| not be combined with bonds to be issued for any other purpose
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0001| that may be subject to the debt limitation of Article 9,
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0002| Section 13 of the constitution of New Mexico."
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0003| Section 3. Section 6-15-9 NMSA 1978 (being Laws 1933,
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0004| Chapter 114, Section 1, as amended) is amended to read:
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0005| "6-15-9. BONDS AUTHORIZED AT ELECTION--TIME LIMIT ON
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0006| ISSUANCE--EXCEPTIONS.--No bonds shall be issued or sold by any
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0007| school district, county or municipality after the expiration of
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0008| three years from the date of [initiation of proceedings for]
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0009| the election authorizing the issue, except for the purpose of
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0010| refunding previous bond issues or in payment of judgments or if
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0011| the issuance of the bonds has been authorized at a regular
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0012| election for officers of any such school district, county or
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0013| municipality or, where authorized by statute, at a special
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0014| election held for that purpose [such]. The bonds may be
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0015| sold to the United States or to the state at private sale or
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0016| to another purchaser at a negotiated sale in any case in which
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0017| the state or other purchaser has made an offer to purchase
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0018| the bonds and the offer was accepted prior to the expiration of
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0019| the three-year period. Any period of time when the validity of
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0020| bonds or the election therefor is in litigation shall be
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0021| excluded from the three-year period."
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0022| Section 4. Section 6-15-10 NMSA 1978 (being Laws 1933,
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0023| Chapter 114, Section 2, as amended) is amended to read:
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0024| "6-15-10. UNISSUED BONDS AUTHORIZED AT ELECTION--WHEN
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0025| VOID--EXCEPTIONS.--In all cases where bond issues by the school
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0001| districts, counties or municipalities have been authorized by
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0002| special election and the bonds have not been issued and sold
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0003| within three years from the date of the [initiation of
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proceedings for the] special election authorizing the proposed
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0005| issue, the proposed bond issue is void, except where issued for
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0006| refunding bonded debt or for payment of judgments against the
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0007| district, county or municipality and, except where the issuance
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0008| of the bonds has been authorized at a regular election for
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0009| officers of any school district, county or municipality or,
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0010| where authorized by statute, at a special election held for
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0011| those purposes. Such bonds may be sold to the United States or
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0012| to the state at private sale or to another purchaser at a
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0013| negotiated sale in any case in which the state or other
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0014| purchaser has made an offer to purchase the bonds and the
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0015| offer was accepted prior to the expiration of the three-year
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0016| period."
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0017| Section 5. Section 6-18-6 NMSA 1978 (being Laws 1983,
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0018| Chapter 161, Section 6) is amended to read:
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0019| "6-18-6. SHORT-TERM BONDS.--A public body may authorize
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0020| short-term bonds which provide for any or all of the following
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0021| in or pursuant to the bond legislation:
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0022| A. principal maturities may be for any one or more
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0023| periods of two years or less from the respective dates of
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0024| issuance;
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0025| B. interest may be payable on any one or more
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0001| dates, or at principal maturity;
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0002| C. interest may but need not be represented by
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0003| coupons;
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0004| D. the bonds may be in coupon form, in form
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0005| registered as to principal or registered as to both principal
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0006| and interest, or in book entry form, and provision may be made
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0007| for exchange of one form for another;
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0008| E. the bonds may be in form with stated interest or
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0009| in discount form without stated interest, or a combination
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0010| thereof;
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0011| F. the bond legislation may provide for the renewal
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0012| or refunding of such bonds, at or before maturity, by the
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0013| issuance or successive issuance of renewal or refunding bonds
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0014| under that bond legislation without necessity for further act
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0015| by the governing body, provided that the maturities of such
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0016| renewal or refunding bonds shall not exceed two years from
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0017| their respective dates of issuance [and no bonds may be issued
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under authority of a bond legislation more than three years
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following action of the governing body on that bond legislation
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unless the governing body further acts to extend such
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authorization within three years prior to the issuance of such
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renewal bonds]. In the bond legislation approved by the
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0023| governing body, the governing body may authorize or direct one
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0024| or more officers of the public body to:
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0025| (1) fix the interest rate or rates for each
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0001| issue of bonds and renewal or refunding issues, subject to a
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0002| maximum rate or rates as a stated interest rate or net
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0003| effective interest rate, which maximum shall be set forth in
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0004| such bond legislation or determined from time to time in
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0005| accordance with a formula, index, data or procedure as provided
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0006| for in the bond legislation, provided that, whether or not such
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0007| a formula, index, data or procedure is provided for, bond
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0008| legislation with respect to indebtedness shall set forth stated
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0009| maximums of net effective interest rates;
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0010| (2) determine the discount for bonds with
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0011| stated interest and for bonds without stated interest, subject
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0012| to any limitations thereon provided in the bond legislation;
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0013| (3) fix the date of such bonds, which may be
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0014| stated in such bond legislation as the date or dates of issue
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0015| and which may be a date on or before the respective date or
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0016| dates of issuance;
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0017| (4) fix the maturity date or dates of such
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0018| bonds, which shall be within minimum and maximum periods
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0019| described in such bond legislation; and
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0020| (5) designate the denomination of such bonds,
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0021| subject to minimums and integral multiples of stated amounts
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0022| provided in such bond legislation;
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0023| G. the public body may contract with agents or
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0024| trustees for services in connection with the issuance,
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0025| transfer, exchange, registration, record keeping for and the
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0001| payment of such bonds and matters incidental thereto, and the
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0002| public body has authority to act under such contracts. Without
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0003| limiting the generality of the preceding sentence, such
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0004| contracts may provide:
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0005| (1) for the maintenance of a supply of bond
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0006| forms with the agent or trustee, which forms bear the facsimile
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0007| of all signatures of officers of the public body necessary for
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0008| the purpose and, if applicable, the facsimile of the seal of
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0009| the public body, contain blanks as to owner, date, maturity,
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0010| denomination, interest rates and original issue discount as
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0011| appropriate, and provide a form of authentication by the agent
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0012| or trustee upon issuance;
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0013| (2) for the officer or officers of the public
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0014| body, authorized by the governing body to do so, to direct the
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0015| agent or trustee with respect to the completion of such blanks
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0016| and the delivery of the bonds, by oral, electronic or written
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0017| communication prior to the authentication and delivery of such
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0018| bonds, and that any such oral or electronic communication
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0019| thereafter shall be confirmed in writing; and
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0020| (3) for the establishment with the agent or
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0021| trustee of funds, in trust, for payment of the principal of and
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0022| interest on the bonds and for payments by and on behalf of the
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0023| public body into such funds, including payments thereto from
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0024| the proceeds of renewal or refunding bonds;
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0025| H. the public body may contract with banks or
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0001| investment bankers, or others with appropriate capabilities, to
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0002| provide services, which may be on an exclusive basis, in the
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0003| placement of the bonds with purchasers, or to purchase the
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0004| bonds, or both, which contract may provide for all matters
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0005| incidental thereto and may be a negotiated contract;
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0006| I. the public body may covenant, in the bond
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0007| legislation, to the holders or owners of the bonds and to the
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0008| trustee, if any, for the benefit of such holders and owners,
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0009| that it will issue bonds to renew, or fund or refund, the bonds
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0010| and any accrued interest thereon, at or before maturity to the
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0011| extent not provided for from money otherwise available for the
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0012| purpose. In addition to other reductions permitted in the levy
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0013| of property taxes for principal or interest on indebtedness,
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0014| reduction may be made to the extent that principal or interest
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0015| thereon is to be covered by the proceeds of refunding or
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0016| renewal bonds;
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0017| J. in addition to the authority to issue bonds for
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0018| such purposes under the Public Securities Short-Term Interest
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0019| Rate Act, the public body may, to the extent not prohibited by
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0020| the bond legislation, retire or provide for the payment at any
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0021| time of the bonds authorized under that act by the issuance of
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0022| bonds under authority of any other law consistent with the
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0023| maturities and other terms authorized by such laws and without
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0024| impediment or other effect thereunder by reason of previously
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0025| having issued the bonds under the Public Securities Short-Term
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0001| Interest Rate Act, except as stated in Subsection B of Section
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0002| [10 of that act] 6-18-10 NMSA 1978; and
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0003| K. the provisions of Section [7 of the Public
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Securities Short-Term Interest Rate Act] 6-18-7 NMSA 1978
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0005| may be used with respect to any bonds issued pursuant to this
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0006| section."
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0007|
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0008| State of New Mexico
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0009| House of Representatives
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0010|
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0011| FORTY-THIRD LEGISLATURE
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0012| FIRST SESSION, 1997
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0013|
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0014|
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0015| February 27, 1997
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0016|
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0017|
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0018| Mr. Speaker:
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0019|
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0020| Your BUSINESS AND INDUSTRY COMMITTEE, to whom has
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0021| been referred
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0022|
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0023| HOUSE BILL 871
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0024|
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0025| has had it under consideration and reports same with
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0001| recommendation that it DO PASS, amended as follows:
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0002|
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0003| 1. On page 3, line 5, after "A.", strike the remainder of
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0004| the line, strike line 6 up to "any" and insert in lieu thereof
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0005| "Before".
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0006|
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0007| 2. On page 3, line 7, before "sale" insert "public".
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0008|
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0009| 3. On page 3, line 12, after "at" strike the remainder of
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0010| the line and insert in lieu thereof "public sale or if the bonds
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0011| cannot be sold at public sale, as provided in Subsection B of
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0012| this section, then the bonds may be sold at a negotiated sale or
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0013| private sale".
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0014|
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0015| 4. On page 3, line 13, before the period insert "or the
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0016| United States".
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0017|
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0018| 5. On page 3, line 16, before "in", insert "at least one
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0019| week prior to the date of the sale,".
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0020|
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0021| 6. On page 3, line 17, strike the underscored language.
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0022|
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0023| 7. On page 3, line 19, strike "sealed".
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0024|
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0025|
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0001| 8. On page 4, line 7, before the period insert "or the
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0002| United States".
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0003|
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0004| 9. On page 4, line 9, strike "transition" and insert in
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0005| lieu thereof "transmission".
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0006|
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0007| 10. On page 4, line 10, before "if" insert "or the United
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0008| States".
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0009|
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0010| 11. On page 5, line 9, before the period insert "or the
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0011| United States".,
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0012|
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0013| and thence referred to the APPROPRIATIONS AND FINANCE
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0014| COMMITTEE.
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0015|
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0016|
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0017| Respectfully submitted,
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0018|
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0019|
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0020|
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0021|
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0022|
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0023|
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0024| Fred Luna, Chairman
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0025|
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0001|
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0002| Adopted Not Adopted
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0003| (Chief Clerk)
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0004| (Chief Clerk)
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0005|
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0006| Date
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0007|
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0008| The roll call vote was 8
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0009| For 0 Against
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0010| Yes: 8
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0011| Excused: Alwin, Kissner, Lutz, Varela
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0012| Absent: Getty
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0013|
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0014|
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0015| .117869.1
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0016| G:\BILLTEXT\BILLW_97\H0871
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0017|
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0018| FORTY-THIRD LEGISLATURE
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0019| FIRST SESSION, 1997
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0020|
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0021|
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0022| March 21, 1997
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0023|
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0024| Mr. President:
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0025|
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0001| Your PUBLIC AFFAIRS COMMITTEE, to whom has been
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0002| referred
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0003|
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0004| HOUSE BILL 871, as amended
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0005|
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0006| has had it under consideration and reports same with
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0007| recommendation that it DO PASS, and thence referred to the
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0008| FINANCE COMMITTEE.
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0009|
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0010| Respectfully submitted,
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0011|
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0012|
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0013|
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0014|
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0015| __________________________________
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0016| Shannon Robinson, Chairman
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0017|
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0018|
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0019|
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0020| Adopted_______________________ Not
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0021| Adopted_______________________
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0022| (Chief Clerk) (Chief Clerk)
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0023|
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0024|
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0025| Date ________________________
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0001|
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0002|
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0003| The roll call vote was 6 For 0 Against
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0004| Yes: 6
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0005| No: 0
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0006| Excused: Adair, Ingle, Smith
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0007| Absent: None
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0008|
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0009|
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0010|
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0011|
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0012| H0871PA1
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0013|
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0014| FORTY-THIRD LEGISLATURE
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0015| FIRST SESSION, 1997
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0016|
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0017|
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0018| March 22, 1997
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0019|
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0020| Mr. President:
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0021|
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0022| Your FINANCE COMMITTEE, to whom has been referred
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0023|
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0024| HOUSE BILL 871, as amended
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0025|
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0001| has had it under consideration and reports same with
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0002| recommendation that it DO PASS.
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0003|
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0004| Respectfully submitted,
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0005|
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0006|
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0007|
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0008|
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0009| __________________________________
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0010| Ben D. Altamirano, Chairman
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0011|
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0012|
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0013|
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0014| Adopted_______________________ Not
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0015| Adopted_______________________
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0016| (Chief Clerk) (Chief Clerk)
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0017|
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0018|
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0019|
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0020| Date ________________________
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0021|
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0022|
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0023| The roll call vote was 6 For 0 Against
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0024| Yes: 6
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0025| No: None
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0001| Excused: Carraro, Eisenstadt, Ingle, Lyons, McKibben
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0002| Absent: None
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0003|
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0004|
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0005| H0871FC1
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