0001|                            HOUSE BILL 301
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0002|     43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003|                            INTRODUCED BY
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0004|                          R. DAVID PEDERSON
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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 TAXATION; AUTHORIZING IMPOSITION OF A LOCAL OPTION
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0012|     COUNTY GROSS RECEIPTS TAX FOR COUNTY JAIL AND JUVENILE
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0013|     DETENTION PURPOSES; REQUIRING VOTER APPROVAL OF THE TAX;
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0014|     AUTHORIZING ISSUANCE OF GROSS RECEIPTS TAX REVENUE BONDS;
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0015|     AMENDING AND ENACTING SECTIONS OF THE NMSA 1978.
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0016|     
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0017|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0018|          Section 1.  A new section of the County Local Option
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0019|     Gross Receipts Taxes Act is enacted to read:
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0020|          "[<u>NEW MATERIAL</u>] COUNTY JAIL AND JUVENILE DETENTION
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0021|     GROSS RECEIPTS TAX--AUTHORITY TO IMPOSE--USE OF PROCEEDS--
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0022|     REFERENDUM.--
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0023|               A.  The majority of the members of the governing
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0024|     body may enact an ordinance imposing an excise tax at a rate
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0025|     not to exceed one percent of the gross receipts of any person
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<center>- 1 -</center>

0001|     engaging in business in the county for the privilege of
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0002|     engaging in business.  A tax imposed pursuant to this section
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0003|     shall be imposed by the enactment of one or more ordinances,
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0004|     each imposing any number of one-fourth of one percent county
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0005|     gross receipts tax rate increments, but the total tax rate
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0006|     imposed by all ordinances shall not exceed an aggregate rate
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0007|     of one percent of the gross receipts of a person engaging in
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0008|     business.
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0009|               B.  The tax imposed pursuant to Subsection A of
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0010|     this section may be referred to as the "county jail and
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0011|     juvenile detention gross receipts tax".
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0012|               C.  At the time of enacting the ordinance imposing
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0013|     the tax authorized in this section, the governing body shall
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0014|     dedicate the revenue for specified county jail and juvenile
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0015|     detention purposes.  Such purposes may include planning,
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0016|     design, construction, equipping, maintenance or operation of a
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0017|     county jail or juvenile detention facility; planning,
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0018|     assessment, design or operation of a regional system of
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0019|     juvenile services, including secure detention and nonsecure
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0020|     alternatives, that serves multiple contiguous counties;
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0021|     planning, design, construction, maintenance or operation of
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0022|     multipurpose regional adult jails or juvenile detention
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0023|     facilities; housing of county prisoners or juvenile offenders
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0024|     in any county jail or detention facility; or substance abuse,
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0025|     mental health or other programs for county prisoners or other
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<center>- 2 -</center>

0001|     inmates in county jails or for juvenile offenders in county or
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0002|     regional detention facilities.
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0003|               D.  An ordinance enacted pursuant to this section
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0004|     shall not go into effect until after an election is held and a
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0005|     majority of the voters in the county voting in the election
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0006|     votes in favor of imposing the county jail and juvenile
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0007|     detention gross receipts tax.  The governing body shall adopt
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0008|     a resolution calling for an election within seventy-five days
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0009|     of the date the ordinance is adopted on the question of
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0010|     imposing the tax.  The question may be submitted to the voters
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0011|     of the county at a special election called for that purpose by
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0012|     the governing body or at a general election, if the election
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0013|     occurs within seventy-five days after the date of the
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0014|     resolution.  Any special election held shall be called,
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0015|     conducted and canvassed in substantially the same manner as
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0016|     provided by law for general elections.  If a majority of the
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0017|     voters voting on the question approves the imposition of a
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0018|     county jail and juvenile detention gross receipts tax, then
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0019|     the ordinance shall become effective in accordance with the
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0020|     provisions of the County Local Option Gross Receipts Taxes
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0021|     Act.  If the question of imposing a county jail and juvenile
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0022|     detention gross receipts tax fails, the governing body shall
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0023|     not again propose a county jail and juvenile detention gross
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0024|     receipts tax for a period of one year after the date of the
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0025|     election.
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<center>- 3 -</center>

0001|               E.  Any ordinance changing the rate or specified
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0002|     purpose of the county jail and juvenile detention gross
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0003|     receipts tax shall not go into effect until an election is
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0004|     called on the question pursuant to the provisions of
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0005|     Subsection D of this section.
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0006|               F.  Any law that imposes or authorizes the
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0007|     imposition of a county jail and juvenile detention gross
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0008|     receipts tax or that affects the county jail and juvenile
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0009|     detention gross receipts tax, or any law supplemental or
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0010|     pertaining to that tax, shall not be repealed or amended or
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0011|     otherwise directly or indirectly modified in such a manner as
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0012|     to impair adversely any outstanding revenue bonds that may be
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0013|     secured by a pledge of the county jail and juvenile detention
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0014|     gross receipts tax unless such outstanding revenue bonds have
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0015|     been discharged in full or provision has been fully made for
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0016|     such discharge."
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0017|          Section 2.  Section 4-62-1 NMSA 1978 (being Laws 1992,
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0018|     Chapter 95, Section 1, as amended) is amended to read:
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0019|          "4-62-1.  REVENUE BONDS--AUTHORITY TO ISSUE--PLEDGE OF
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0020|     REVENUES--LIMITATION ON TIME OF ISSUANCE.--
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0021|               A.  In addition to any other law authorizing a
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0022|     county to issue revenue bonds, a county may issue revenue
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0023|     bonds pursuant to Chapter 4, Article 62 NMSA 1978 for the
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0024|     purposes specified in this section.  The term "pledged
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0025|     revenues", as used in Chapter 4, Article 62 NMSA 1978, means
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<center>- 4 -</center>

0001|     the revenues, net income or net revenues authorized to be
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0002|     pledged to the payment of particular revenue bonds as
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0003|     specifically provided in Subsections B through <s>[J]</s> <u>K</u> of
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0004|     this section.
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0005|               B.  Gross receipts tax revenue bonds may be issued
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0006|     for <s>[any]</s> one or more of the following purposes:
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0007|                    (1)  constructing, purchasing, furnishing,
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0008|     equipping, rehabilitating, making additions to or making
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0009|     improvements to one or more public buildings or purchasing or
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0010|     improving <s>[any]</s> ground relating thereto, including but not
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0011|     necessarily limited to acquiring and improving parking lots,
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0012|     or any combination of the foregoing;
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0013|                    (2)  acquiring or improving county or public
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0014|     parking lots, structures or facilities or any combination of
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0015|     the foregoing;
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0016|                    (3)  purchasing, acquiring or rehabilitating
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0017|     firefighting equipment or any combination of the foregoing;
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0018|                    (4)  acquiring, extending, enlarging,
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0019|     bettering, repairing, otherwise improving or maintaining storm
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0020|     sewers and other drainage improvements, sanitary sewers,
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0021|     sewage treatment plants or water utilities, including but not
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0022|     limited to the acquisition of rights of way and water and
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0023|     water rights or any combination of the foregoing;
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0024|                    (5)  reconstructing, resurfacing, maintaining,
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0025|     repairing or otherwise improving existing alleys, streets,
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<center>- 5 -</center>

0001|     roads or bridges or any combination of the foregoing or laying
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0002|     off, opening, constructing or otherwise acquiring new alleys,
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0003|     streets, roads or bridges or any combination of the foregoing;
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0004|     provided that any of the foregoing improvements may include 
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0005|     the acquisition of rights of way;
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0006|                    (6)  purchasing, acquiring, constructing,
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0007|     making additions to, enlarging, bettering, extending or
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0008|     equipping airport facilities or any combination of the
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0009|     foregoing, including without limitation the acquisition of
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0010|     land, easements or rights of way;
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0011|                    (7)  purchasing or otherwise acquiring or
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0012|     clearing land or purchasing, otherwise acquiring and
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0013|     beautifying land for open space;
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0014|                    (8)  acquiring, constructing, purchasing,
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0015|     equipping, furnishing, making additions to, renovating,
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0016|     rehabilitating, beautifying or otherwise improving public
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0017|     parks, public recreational buildings or other public
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0018|     recreational facilities or any combination of the foregoing;
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0019|     or
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0020|                    (9)  acquiring, constructing, extending,
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0021|     enlarging, bettering, repairing or otherwise improving or
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0022|     maintaining solid waste disposal equipment, equipment for
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0023|     operation and maintenance of sanitary landfills, sanitary
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0024|     landfills, solid waste facilities or any combination of the
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0025|     foregoing.
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<center>- 6 -</center>

0001|          A county may pledge irrevocably any or all of the revenue
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0002|     from the first one-eighth of one percent increment of the
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0003|     county gross receipts tax for payment of principal and
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0004|     interest due in connection with, and other expenses related
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0005|     to, gross receipts tax revenue bonds for any of the purposes
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0006|     authorized in this section or specific purposes or for any
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0007|     area of county government services.  If the county gross
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0008|     receipts tax revenue from the first one-eighth of one percent
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0009|     increment of the county gross receipts tax is pledged for
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0010|     payment of principal and interest as authorized by this
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0011|     subsection, the pledge shall require the revenues received
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0012|     from that increment of the county gross receipts tax to be
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0013|     deposited into a special bond fund for payment of the
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0014|     principal, interest and expenses.  At the end of each fiscal
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0015|     year, <s>[any]</s> money remaining in the special bond fund after
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0016|     the annual obligations for the bonds are fully met may be
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0017|     transferred to any other fund of the county.
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0018|               C.  Fire protection revenue bonds may be issued for
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0019|     acquiring, extending, enlarging, bettering, repairing,
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0020|     improving, constructing, purchasing, furnishing, equipping or
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0021|     rehabilitating any independent fire district project or
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0022|     facilities, including, where applicable, purchasing, otherwise
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0023|     acquiring or improving the ground for the project or any
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0024|     combination of such purposes.  A county may pledge irrevocably
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0025|     any or all of the county fire protection excise tax revenue
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<center>- 7 -</center>

0001|     for payment of principal and interest due in connection with,
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0002|     and other expenses related to, fire protection revenue bonds. 
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0003|     These bonds may be referred to in Chapter 4, Article 62 NMSA
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0004|     1978 as "fire protection revenue bonds".
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0005|               D.  Environmental revenue bonds may be issued for
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0006|     the acquisition and construction of solid waste facilities,
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0007|     water facilities, wastewater facilities, sewer systems and
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0008|     related facilities.  A county may pledge irrevocably any or
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0009|     all of the county environmental services gross receipts tax
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0010|     revenue for payment of principal and interest due in
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0011|     connection with, and other expenses related to, environmental
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0012|     revenue bonds.  These bonds may be referred to in Chapter 4,
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0013|     Article 62 NMSA 1978 as "environmental revenue bonds".
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0014|               E.  Gasoline tax revenue bonds may be issued for
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0015|     the acquisition of rights of way for and the construction,
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0016|     reconstruction, resurfacing, maintenance, repair or other
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0017|     improvement of county roads and bridges.  A county may pledge
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0018|     irrevocably any or all of the county gasoline tax revenue for
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0019|     payment of principal and interest due in connection with, and
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0020|     other expenses related to, county gasoline tax revenue bonds. 
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0021|     These bonds may be referred to in Chapter 4, Article 62 NMSA
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0022|     1978 as "gasoline tax revenue bonds".
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0023|               F.  Utility revenue bonds or joint utility revenue
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0024|     bonds may be issued for acquiring, extending, enlarging,
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0025|     bettering, repairing or otherwise improving water facilities,
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<center>- 8 -</center>

0001|     sewer facilities, gas facilities or electric facilities or for
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0002|     any combination of the foregoing purposes.  A county may
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0003|     pledge irrevocably any or all of the net revenues from the
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0004|     operation of the utility or joint utility for which the
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0005|     particular utility or joint utility bonds are issued to the
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0006|     payment of principal and interest due in connection with, and
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0007|     other expenses related to, utility or joint utility revenue
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0008|     bonds.  These bonds may be referred to in Chapter 4, Article
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0009|     62 NMSA 1978 as "utility revenue bonds" or "joint utility
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0010|     revenue bonds".
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0011|               G.  Project revenue bonds may be issued for
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0012|     acquiring, extending, enlarging, bettering, repairing,
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0013|     improving, constructing, purchasing, furnishing, equipping or
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0014|     rehabilitating any revenue-producing project, including, as
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0015|     applicable, purchasing, otherwise acquiring or improving the
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0016|     ground therefor and including but not limited to acquiring and
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0017|     improving parking lots, or may be issued for any combination
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0018|     of the foregoing purposes.  The county may pledge irrevocably
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0019|     any or all of the net revenues from the operation of the
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0020|     revenue-producing project for which the particular project
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0021|     revenue bonds are issued to the payment of the interest on and
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0022|     principal of the project revenue bonds.  The net revenues of
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0023|     any revenue-producing project may not be pledged to the
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0024|     project revenue bonds issued for any other revenue-producing
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0025|     project that is clearly unrelated in nature; but nothing in
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<center>- 9 -</center>

0001|     this subsection prevents the pledge to any of the project
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0002|     revenue bonds of any revenues received from any existing,
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0003|     future or disconnected facilities and equipment that are
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0004|     related to and that may constitute a part of the particular
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0005|     revenue-producing project.  A general determination by the
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0006|     governing body that facilities or equipment are reasonably
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0007|     related to and constitute a part of a specified revenue-
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0008|     producing project shall be conclusive if set forth in the
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0009|     proceedings authorizing the project revenue bonds.  As used in
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0010|     Chapter 4, Article 62 NMSA 1978:
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0011|                    (1)  "project revenue bonds" means the bonds
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0012|     authorized in this subsection; and
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0013|                    (2)  "project revenues" means the net revenues
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0014|     of revenue-producing projects that may be pledged to project
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0015|     revenue bonds pursuant to this subsection.
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0016|               H.  Fire district revenue bonds may be issued for
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0017|     acquiring, extending, enlarging, bettering, repairing,
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0018|     improving, constructing, purchasing, furnishing, equipping and
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0019|     rehabilitating any fire district project, including, where
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0020|     applicable, purchasing, otherwise acquiring or improving the
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0021|     ground therefor, or for any combination of the foregoing
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0022|     purposes.  The county may pledge irrevocably any or all of the
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0023|     revenues received by the fire district from the fire
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0024|     protection fund as provided in Sections 59A-53-1 through
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0025|     59A-53-17 NMSA 1978 and any or all of the revenues provided
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<center>- 10 -</center>

0001|     for the operation of the fire district project for which the
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0002|     particular bonds are issued to the payment of the interest on
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0003|     and principal of such bonds.  The revenues of a fire district
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0004|     project shall not be pledged to the bonds issued for a fire
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0005|     district project that clearly is unrelated in its purpose; but
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0006|     nothing in this section shall prevent the pledge to any of
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0007|     such bonds of any such revenues received from any existing,
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0008|     future or <s>[of]</s> disconnected facilities and equipment that
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0009|     are related to and that may constitute a part of the
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0010|     particular fire district project.  A general determination by
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0011|     the governing body of the county that facilities or equipment
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0012|     are reasonably related to and constitute a part of a specified
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0013|     fire district project shall be conclusive if set forth in the
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0014|     proceedings authorizing the fire district bonds.
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0015|               I.  Law enforcement protection revenue bonds may be
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0016|     issued for the repair and purchase of law enforcement
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0017|     apparatus and equipment that meet nationally recognized
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0018|     standards.  The county may pledge irrevocably any or all of
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0019|     the revenues received by the county from the law enforcement
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0020|     protection fund distributions pursuant to Sections 29-13-1
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0021|     through 29-13-9 NMSA 1978 to the payment of the interest on
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0022|     and principal of the law enforcement protection revenue bonds.
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0023|               J.  Hospital emergency gross receipts tax revenue
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0024|     bonds may be issued for acquisition, equipping, remodeling or
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0025|     improvement of a county hospital facility.  A county may
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<center>- 11 -</center>

0001|     pledge irrevocably, to the payment of the interest on and
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0002|     principal of the hospital emergency gross receipts tax revenue
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0003|     bonds, any or all of the revenues received by the county from
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0004|     a county hospital emergency gross receipts tax imposed
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0005|     pursuant to Section 7-20E-12.1 NMSA 1978 and dedicated to
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0006|     payment of bonds or a loan for acquisition, equipping,
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0007|     remodeling or improvement of a county hospital facility.
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0008|               <u>K.  County corrections gross receipts tax revenue
</u>    |
<u></u>0009| <u>    bonds may be issued for the acquisition, design, construction,
</u>    |
<u></u>0010| <u>    equipping, renovation or improvement of county jails or
</u>    |
<u></u>0011| <u>    juvenile detention facilities, including regional facilities
</u>    |
<u></u>0012| <u>    to which the county is a party.  A county may pledge
</u>    |
<u></u>0013| <u>    irrevocably any or all of the county jail and juvenile
</u>    |
<u></u>0014| <u>    detention gross receipts tax revenue to the payment of the
</u>    |
<u></u>0015| <u>    interest on and principal of the county corrections gross
</u>    |
<u></u>0016| <u>    receipts tax revenue bonds for any of the purposes authorized
</u>    |
<u></u>0017| <u>    in this subsection.</u>
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0018|               <s>[K.]</s> <u>L.</u>  Except for the purpose of refunding
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0019|     previous revenue bond issues, no county may sell revenue bonds
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0020|     payable from pledged revenue after the expiration of two years
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0021|     from the date of the ordinance authorizing the issuance of the
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0022|     bonds or, for bonds to be issued and sold to the New Mexico
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0023|     finance authority as authorized in Subsection C of Section
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0024|     4-62-4 NMSA 1978, after the expiration of two years from the
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0025|     date of the resolution authorizing the issuance of the bonds. 
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<center>- 12 -</center>

0001|     However, any period of time during which a particular revenue
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0002|     bond issue is in litigation shall not be counted in
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0003|     determining the expiration date of that issue.
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0004|               <s>[L.]</s> <u>M.</u>  No bonds may be issued by a county,
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0005|     other than an H class county, a class B county as defined in
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0006|     Section 4-36-8 NMSA 1978 or a class A county as described in
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0007|     Section 4-36-10 NMSA 1978, to acquire, equip, extend, enlarge,
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0008|     better, repair or construct <s>[any]</s> <u>a</u> utility unless the
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0009|     utility is regulated by the New Mexico public utility
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0010|     commission pursuant to the Public Utility Act and the issuance
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0011|     of the bonds is approved by the commission.  For purposes of
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0012|     Chapter 4, Article 62 NMSA 1978, a "utility" includes but is
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0013|     not limited to <s>[any]</s> <u>a</u> water, wastewater, sewer, gas or
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0014|     electric utility or joint utility serving the public.  H class
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0015|     counties shall obtain New Mexico public utility commission
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0016|     approvals required by Section 3-23-3 NMSA 1978.
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0017|               <s>[M.]</s> <u>N.</u>  Any law that imposes or authorizes the
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0018|     imposition of a county gross receipts tax, a county
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0019|     environmental services gross receipts tax, a county fire
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0020|     protection excise tax, the gasoline tax, <u>a county jail and
</u>    |
<u></u>0021| <u>    juvenile detention gross receipts tax</u> or the county hospital
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0022|     emergency gross receipts tax, or that affects any of those
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0023|     taxes, shall not be repealed or amended in such a manner as to
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0024|     impair <s>[any]</s> outstanding revenue bonds that are issued
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0025|     pursuant to Chapter 4, Article 62 NMSA 1978 and that may be
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<center>- 13 -</center>

0001|     secured by a pledge of those taxes unless the outstanding
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0002|     revenue bonds have been discharged in full or provision has
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0003|     been fully made therefor.
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0004|               <s>[N.]</s> <u>O.</u>  As used in this section:
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0005|                    <u>(1)  "county jail and juvenile detention
</u>    |
<u></u>0006| <u>    gross receipts tax revenue" means the revenue from the county
</u>    |
<u></u>0007| <u>    jail and juvenile detention gross receipts tax transferred to
</u>    |
<u></u>0008| <u>    the county pursuant to Section 7-1-6.13 NMSA 1978</u>;
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0009|                    <s>[(1)]</s> <u>(2)</u>  "county environmental services
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0010|     gross receipts tax revenue" means the revenue from the county
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0011|     environmental services gross receipts tax transferred to the
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0012|     county pursuant to Section 7-1-6.13 NMSA 1978;
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0013|                    <s>[(2)]</s> <u>(3)</u>  "county fire protection excise
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0014|     tax revenue" means the revenue from the county fire protection
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0015|     excise tax transferred to the county pursuant to Section
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0016|     7-1-6.13 NMSA 1978;
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0017|                    <s>[(3)]</s> <u>(4)</u>  "county gross receipts tax
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0018|     revenue" means the revenue attributable to the first one-
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0019|     eighth of one percent increment of the county gross receipts
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0020|     tax transferred to the county pursuant to Section 7-1-6.13
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0021|     NMSA 1978 and any distribution related to the first one-eighth
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0022|     of one percent made pursuant to Section 7-1-6.16 NMSA 1978;
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0023|                    <s>[(4)]</s> <u>(5)</u>  "gasoline tax revenue" means
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0024|     the revenue from that portion of the gasoline tax distributed
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0025|     to the county pursuant to Sections 7-1-6.9 and 7-1-6.26 NMSA
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<center>- 14 -</center>

0001|     1978; and
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0002|                    <s>[(5)]</s> <u>(6)</u>  "public building" includes but
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0003|     is not limited to fire stations, police buildings, jails,
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0004|     libraries, museums, auditoriums, convention halls, hospitals,
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0005|     buildings for administrative offices, courthouses and garages
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0006|     for housing, repairing and maintaining county vehicles and
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0007|     equipment.
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0008|               <s>[O.]</s> <u>P.</u>  As used in Chapter 4, Article 62 NMSA
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0009|     1978, the term "bond" means any obligation of a county issued
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0010|     under Chapter 4, Article 62 NMSA 1978, whether designated as a
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0011|     bond, note, loan, warrant, debenture, lease-purchase agreement
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0012|     or other instrument evidencing an obligation of a county to
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0013|     make payments."
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0014|                                  
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0015|          
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