0001|                            HOUSE BILL 445
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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|                             JOE M. STELL
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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 PROPERTY TAX REVENUES; REQUIRING LOCAL GOVERNMENT
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0012|     ISSUERS OF INDUSTRIAL REVENUE BONDS TO PROVIDE TIMELY NOTICE
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0013|     OF THE BOND ISSUANCE TO ALL LOCAL PUBLIC BODIES WHOSE PROPERTY
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0014|     TAX BASE IS AFFECTED BY THE ISSUANCE; ALLOWING LOCAL PUBLIC
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0015|     BODIES TO COMMENT ON THE IMPACT OF THE BONDS; REQUIRING
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0016|     NEGOTIATION OF PAYMENTS IN LIEU OF TAXES FOR CERTAIN SCHOOL
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0017|     DISTRICTS WHOSE PROPERTY TAX BASE IS IMPACTED BY THE PROPOSED
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0018|     ISSUANCE OF INDUSTRIAL REVENUE BONDS. 
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0019|     
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0020|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0021|          Section 1.  A new section of the Industrial Revenue Bond
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0022|     Act is enacted to read:
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0023|          "[<u>NEW MATERIAL</u>] NOTIFICATION REQUIREMENT.--Every
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0024|     municipality that proposes to issue industrial revenue bonds
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0025|     for a project shall provide timely notice of the proposed
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0001|     issuance to all local public bodies with property taxing
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0002|     authority that will be affected by the issuance of the bonds. 
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0003|     Upon the request of a local public body, the municipality
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0004|     shall provide an opportunity for comment on the impact of the
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0005|     proposed bond issuance."
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0006|          Section 2.  A new section of the Industrial Revenue Bond
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0007|     Act is enacted to read:
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0008|          "[<u>NEW MATERIAL</u>] SCHOOL DISTRICT IMPACT--WHEN
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0009|     NEGOTIATION OF PAYMENT IN LIEU OF TAXES REQUIRED.--
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0010|               A.  Prior to issuing industrial revenue bonds, a
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0011|     municipality and the company proposing the project, upon a
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0012|     request from the local school board of a school district that
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0013|     has determined the bond issuance may have a significant impact
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0014|     on the district, shall determine the projected impact of the
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0015|     project on school district membership.  Any study necessary to
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0016|     develop this data shall be carried out as agreed upon by the
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0017|     municipality and the company, with any cost borne by the
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0018|     company requesting the bonds.
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0019|               B.  If the project is projected to result in an
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0020|     increase of more than fifteen percent in the school district's
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0021|     membership over a three-year period or if the local school
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0022|     board determines that the capital costs of meeting the
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0023|     projected growth with general obligation bonds would result in
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0024|     the school district exceeding seventy-five percent of its
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0025|     general obligation bonding capacity, then the municipality and
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0001|     the company shall negotiate a payment in lieu of taxes
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0002|     acceptable to the school district.  A majority of the members
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0003|     of the local school board of that school district may vote to
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0004|     waive the negotiation requirement."
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0005|          Section 3.  A new section of the County Industrial
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0006|     Revenue Bond Act is enacted to read:
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0007|          "[<u>NEW MATERIAL</u>] NOTIFICATION REQUIREMENT.--Every county
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0008|     that proposes to issue industrial revenue bonds for a project
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0009|     shall provide timely notice of the proposed issuance to all
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0010|     local public bodies with property taxing authority that will
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0011|     be affected by the issuance of the bonds.  Upon the request of
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0012|     a local public body, the county shall provide an opportunity
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0013|     for comment on the impact of the proposed bond issuance."
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0014|          Section 4.  A new section of the County Industrial
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0015|     Revenue Bond Act is enacted to read:
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0016|          "[<u>NEW MATERIAL</u>] SCHOOL DISTRICT IMPACT--WHEN
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0017|     NEGOTIATION OF PAYMENT IN LIEU OF TAXES REQUIRED.--
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0018|               A.  Prior to issuing industrial revenue bonds, a
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0019|     county and the company proposing the project, upon a request
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0020|     from the local school board of a school district that has
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0021|     determined the bond issuance may have a significant impact on
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0022|     the district, shall determine the projected impact of the
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0023|     project on school district membership.  Any study necessary to
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0024|     develop this data shall be carried out as agreed upon by the
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0025|     county and the company, with any cost borne by the company
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<center>- 3 -</center>

0001|     requesting the bonds.
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0002|               B.  If the project is projected to result in an
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0003|     increase of more than fifteen percent in the school district's
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0004|     membership over a three-year period or if the local school
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0005|     board determines that the capital costs of meeting the
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0006|     projected growth with general obligation bonds would result in
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0007|     the school district exceeding seventy-five percent of its
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0008|     general obligation bonding capacity, then the county and the
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0009|     company shall negotiate a payment in lieu of taxes acceptable
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0010|     to the school district.  A majority of the members of the
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0011|     local school board of that school district may vote to waive
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0012|     the negotiation requirement."
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0013|                                  
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0014|          
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