0001|                            SENATE BILL 72
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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|                          BEN D. ALTAMIRANO  
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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 MUNICIPAL AND COUNTY LOCAL
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0012|     OPTION GROSS RECEIPTS TAXES FOR ECONOMIC DEVELOPMENT PURPOSES;
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0013|     AUTHORIZING THE ISSUANCE OF REVENUE BONDS; AMENDING AND
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0014|     ENACTING SECTIONS OF THE NMSA 1978.
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0015|     
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0016|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0017|          Section 1.  A new section of the Municipal Local Option
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0018|     Gross Receipts Taxes Act is enacted to read:
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0019|          "[<u>NEW MATERIAL</u>] MUNICIPAL ECONOMIC DEVELOPMENT GROSS
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0020|     RECEIPTS TAX--AUTHORITY TO IMPOSE RATE.--
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0021|               A.  The majority of the members of the governing
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0022|     body of a municipality that has a population of less than one
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0023|     hundred thousand according to the most recent federal
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0024|     decennial census and that has adopted an economic development
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0025|     plan pursuant to the Local Economic Development Act may enact
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<center>- 1 -</center>

0001|     an ordinance imposing an excise tax on any person engaging in
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0002|     business in the municipality for the privilege of engaging in
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0003|     business.  A tax imposed pursuant to this section shall be
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0004|     imposed by the enactment of one or more ordinances, each
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0005|     imposing any number of one-eighth of one percent increments,
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0006|     but the total tax imposed by all ordinances shall not exceed
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0007|     an aggregate rate of one-half of one percent of the gross
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0008|     receipts of a person engaging in business.
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0009|               B.  An ordinance imposing a municipal economic
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0010|     gross receipts tax may limit the length of time that the
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0011|     economic development gross receipts tax may be imposed, but in
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0012|     no instance shall the economic development gross receipts tax
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0013|     be imposed for less than five years.
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0014|               C.  The tax imposed pursuant to Subsection A of
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0015|     this section may be referred to as the "municipal economic
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0016|     development gross receipts tax".
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0017|               D.  The governing body of a municipality, at the
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0018|     time of enacting an ordinance imposing the tax authorized in
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0019|     Subsection A of this section, shall dedicate the revenue for
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0020|     the purpose of:
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0021|                    (1)  paying economic development gross
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0022|     receipts tax revenue bonds issued pursuant to Chapter 3,
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0023|     Article 31 NMSA 1978;
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0024|                    (2)  furthering or implementing economic
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0025|     development plans and projects as defined in the Local
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<center>- 2 -</center>

0001|     Economic Development Act; and
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0002|                    (3)  advertising, publicizing, promoting or
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0003|     administering an economic development plan adopted by a
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0004|     governing body pursuant to the Local Economic Development Act
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0005|     and in accordance with law; provided that a municipality shall
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0006|     not use more than twenty-five percent of the revenue collected
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0007|     for such promotional and administrative purposes.
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0008|               E.  The limitations on spending for promotional and
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0009|     administrative purposes contained in Subsection D of this
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0010|     section shall not apply to expenditures for professional
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0011|     service contracts entered into by a municipality pursuant to
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0012|     the Local Economic Development Act.
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0013|               F.  An election shall be called on the question of
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0014|     approval or disapproval of an ordinance enacted pursuant to
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0015|     Subsection A of this section or an ordinance amending such an
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0016|     ordinance.  The ordinance shall not be effective until it is
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0017|     approved by a majority of the voters voting on the question at
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0018|     an election to be held pursuant to the provisions of a home
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0019|     rule charter or on a date set by the governing body and
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0020|     pursuant to the provisions of the Municipal Election Code
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0021|     governing special elections.  The ballot shall clearly state
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0022|     the purpose to which the revenue shall be dedicated and
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0023|     specify whether the municipality intends to pledge the revenue
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0024|     to payment of revenue bonds.  The ballot shall provide for
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0025|     voting for or against the following propositions substantially
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<center>- 3 -</center>

0001|     as follows:  "Shall the (city, town, village or H class
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0002|     county) of __________, New Mexico adopt a municipal economic
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0003|     development gross receipts tax at the rate of _____ percent
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0004|     for the purpose of __________ in accordance with Ordinance No.
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0005|     _____ adopted on (date) __________?", and, if appropriate,
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0006|     "Shall the (city, town, village or H class county) of
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0007|     __________, New Mexico issue and sell economic development
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0008|     gross receipts tax revenue bonds in a principal amount not to
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0009|     exceed $__________ for the purpose of ________________ in
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0010|     accordance with Ordinance No. _____ adopted on (date)
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0011|     __________?".  Revenue so dedicated shall be used by the
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0012|     municipality for that purpose until all revenue has been
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0013|     expended; provided that a subsequent ordinance may be adopted
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0014|     to change the purpose to which the revenue is dedicated to
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0015|     another purpose authorized in Subsection D of this section.
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0016|               G.  If at an election called pursuant to Subsection
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0017|     F of this section a majority of the voters voting on the
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0018|     question approves the ordinance imposing the tax, then the
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0019|     ordinance shall become effective in accordance with the
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0020|     provisions of the Municipal Local Option Gross Receipts Taxes
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0021|     Act.  If at such an election a majority of the registered
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0022|     voters voting on the question disapproves the ordinance, then
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0023|     the ordinance imposing the tax shall be deemed repealed, and
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0024|     the question of imposing any increment of the municipal
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0025|     economic development gross receipts tax authorized in this
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<center>- 4 -</center>

0001|     section shall not be considered again by the governing body
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0002|     for a period of one year from the date of the election.
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0003|               H.  Any law that imposes or authorizes the
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0004|     imposition of a municipal economic development gross receipts
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0005|     tax or that affects the municipal economic development gross
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0006|     receipts tax or any law supplemental to or otherwise
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0007|     pertaining to the tax shall not be repealed or amended or
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0008|     otherwise directly or indirectly modified in such a manner as
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0009|     to impair adversely any outstanding revenue bonds that may be
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0010|     secured by a pledge of the municipal economic development
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0011|     gross receipts tax unless such outstanding revenue bonds have
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0012|     been discharged in full or provision has been fully made for
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0013|     their discharge."
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0014|          Section 2.  A new section of the County Local Option
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0015|     Gross Receipts Taxes Act is enacted to read:
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0016|          "[<u>NEW MATERIAL</u>]  COUNTY ECONOMIC DEVELOPMENT GROSS
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0017|     RECEIPTS TAX--AUTHORITY TO IMPOSE RATE.--
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0018|               A.  The majority of the members of a governing body
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0019|     of a county that has a population of less than one hundred
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0020|     fifty thousand according to the most recent federal decennial
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0021|     census and that has adopted an economic development plan
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0022|     pursuant to the Local Economic Development Act may enact an
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0023|     ordinance imposing an excise tax on any person engaging in
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0024|     business in the county area for the privilege of engaging in
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0025|     business.  A tax imposed pursuant to this section shall be
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<center>- 5 -</center>

0001|     imposed by the enactment of one or more ordinances, each
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0002|     imposing any number of one-eighth of one percent increments,
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0003|     but the total tax imposed by all ordinances shall not exceed
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0004|     an aggregate rate of one-half of one percent of the gross
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0005|     receipts of a person engaging in business.
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0006|               B.  An ordinance imposing a county economic
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0007|     development gross receipts tax may limit the length of time
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0008|     that the economic development gross receipts tax may be
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0009|     imposed, but in no instance may the county economic
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0010|     development gross receipts tax be imposed for less than five
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0011|     years.
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0012|               C.  The tax imposed pursuant to Subsection A of
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0013|     this section may be referred to as the "county economic
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0014|     development gross receipts tax".
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0015|               D.  The governing body of a county, at the time of
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0016|     enacting an ordinance imposing the rate of the tax authorized
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0017|     in Subsection A of this section, shall dedicate the revenue
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0018|     for the purpose of:
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0019|                    (1)  paying economic development gross
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0020|     receipts tax revenue bonds issued pursuant to Chapter 4,
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0021|     Article 62 NMSA 1978;
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0022|                    (2)  furthering or implementing economic
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0023|     development plans and projects as defined in the Local
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0024|     Economic Development Act; and
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0025|                    (3)  advertising, publicizing, promoting or
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<center>- 6 -</center>

0001|     administering an economic development plan adopted by a
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0002|     governing body pursuant to the Local Economic Development Act
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0003|     and in accordance with law; provided that a county shall not
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0004|     use more than twenty-five percent of the revenue collected for
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0005|     such promotional and administrative purposes.
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0006|               E.  The limitations on spending for promotional and
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0007|     administrative purposes contained in Subsection D of this
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0008|     section shall not apply to expenditures for professional
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0009|     service contracts entered into by a county pursuant to the
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0010|     Local Economic Development Act.
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0011|               F.  An election shall be called on the question of
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0012|     approval or disapproval of an ordinance enacted pursuant to 
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0013|     Subsection A of this section or an ordinance amending such an
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0014|     ordinance.  The ordinance shall not be effective until it is
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0015|     approved by a majority of voters voting on the question at a
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0016|     general election or at a special election called for that
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0017|     purpose by the governing body and held, conducted and
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0018|     canvassed in substantially the same manner as provided by law
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0019|     for general elections.  The ballot shall provide for voting
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0020|     for or against the following propositions substantially as
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0021|     follows:  "Shall the county of __________, New Mexico adopt a
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0022|     county local economic development gross receipts tax at the
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0023|     rate of _____ percent for the purpose of __________ in
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0024|     accordance with Ordinance No. _____ adopted on (date)
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0025|     __________?", and, if appropriate, "Shall the county of
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<center>- 7 -</center>

0001|     __________, New Mexico issue and sell economic development
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0002|     gross receipts tax revenue bonds in a principal amount not to
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0003|     exceed $___________ for the purpose of _______________ in
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0004|     accordance with Ordinance No. _____ adopted on (date)
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0005|     __________?".  Any revenue so dedicated shall be used by the
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0006|     county for that purpose until all revenue has been expended;
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0007|     provided that a subsequent ordinance may be adopted to change
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0008|     the purpose to which the revenue is dedicated to another
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0009|     purpose authorized in Subsection D of this section.
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0010|               G.  If at an election called pursuant to Subsection
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0011|     F of this section a majority of the voters voting on the
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0012|     question approves the ordinance imposing the tax, then the
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0013|     ordinance shall become effective in accordance with the
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0014|     provisions of the County Local Option Gross Receipts Taxes
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0015|     Act.  If at such an election a majority of the voters voting
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0016|     on the question disapproves the ordinance, then the ordinance
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0017|     imposing the tax shall be deemed repealed, and the question of
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0018|     imposing any increment of the county economic development
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0019|     gross receipts tax authorized in this section shall not be
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0020|     considered again by the governing body for a period of one
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0021|     year from the date of the election.
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0022|               H.  Any law that imposes or authorizes the
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0023|     imposition of a county economic development gross receipts tax
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0024|     or that affects the county economic development gross receipts
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0025|     tax or any law supplemental to or otherwise pertaining to the
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<center>- 8 -</center>

0001|     tax shall not be repealed or amended or otherwise directly or
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0002|     indirectly modified in such a manner as to impair adversely
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0003|     any outstanding revenue bonds that may be secured by a pledge
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0004|     of the economic development gross receipts tax unless such
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0005|     outstanding revenue bonds have been discharged in full or
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0006|     provision has been fully made for their discharge."
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0007|          Section 3.  Section 3-31-1 NMSA 1978 (being Laws 1973,
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0008|     Chapter 395, Section 3, as amended) is amended to read:
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0009|          "3-31-1.  REVENUE BONDS--AUTHORITY TO ISSUE--PLEDGE OF 
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0010|     REVENUES--LIMITATION ON TIME OF ISSUANCE.--In addition to any
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0011|     other law and constitutional home rule powers authorizing a
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0012|     municipality to issue revenue bonds, a municipality may issue
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0013|     revenue bonds pursuant to Chapter 3, Article 31 NMSA 1978 for
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0014|     the purposes specified in this section.  The term "pledged
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0015|     revenues", as used in Chapter 3, Article 31 NMSA 1978, means
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0016|     the revenues, net income or net revenues authorized to be
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0017|     pledged to the payment of particular revenue bonds as
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0018|     specifically provided in Subsections A through I of this
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0019|     section.
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0020|               A.  Utility revenue bonds may be issued for
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0021|     acquiring, extending, enlarging, bettering, repairing or
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0022|     otherwise improving a municipal utility or for any combination
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0023|     of the foregoing purposes.  The municipality may pledge
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0024|     irrevocably any or all of the net revenues from the operation
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0025|     of the municipal utility or of any one or more of <s>[any]</s>
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<center>- 9 -</center>

0001|     other such municipal utilities for payment of the interest on
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0002|     and principal of the revenue bonds.  These bonds are sometimes
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0003|     referred to in Chapter 3, Article 31 NMSA 1978 as "utility
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0004|     revenue bonds" or "utility bonds".
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0005|               B.  Joint utility revenue bonds may be issued for
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0006|     acquiring, extending, enlarging, bettering, repairing or
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0007|     otherwise improving joint water facilities, sewer facilities,
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0008|     gas facilities or electric facilities or for any combination
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0009|     of the foregoing purposes.  The municipality may pledge
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0010|     irrevocably any or all of the net revenues from the operation
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0011|     of these municipal utilities for the payment of the interest
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0012|     on and principal of the bonds.  These bonds are sometimes
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0013|     referred to in Chapter 3, Article 31 NMSA 1978 as "joint
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0014|     utility revenue bonds" or "joint utility bonds".
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0015|               C.  For the purposes of this subsection, "gross
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0016|     receipts tax revenue bonds" means gross receipts tax revenue
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0017|     bonds or sales tax revenue bonds.  Gross receipts tax revenue
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0018|     bonds may be issued for any one or more of the following
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0019|     purposes:
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0020|                    (1)  constructing, purchasing, furnishing,
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0021|     equipping, rehabilitating, making additions to or making
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0022|     improvements to one or more public buildings or purchasing or
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0023|     improving any ground relating thereto, including but not
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0024|     necessarily limited to acquiring and improving parking lots,
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0025|     or any combination of the foregoing;
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<center>- 10 -</center>

0001|                    (2)  acquiring or improving municipal or
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0002|     public parking lots, structures or facilities or any
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0003|     combination of the foregoing;
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0004|                    (3)  purchasing, acquiring or rehabilitating
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0005|     fire-fighting equipment or any combination of the foregoing;
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0006|                    (4)  acquiring, extending, enlarging,
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0007|     bettering, repairing, otherwise improving or maintaining storm
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0008|     sewers and other drainage improvements, sanitary sewers,
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0009|     sewage treatment plants or water utilities, including but not
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0010|     necessarily limited to the acquisition of rights of way and
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0011|     water and water rights, or any combination of the foregoing;
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0012|                    (5)  reconstructing, resurfacing, maintaining,
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0013|     repairing or otherwise improving existing alleys, streets,
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0014|     roads or bridges or any combination of the foregoing or laying
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0015|     off, opening, constructing or otherwise acquiring new alleys,
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0016|     streets, roads or bridges or any combination of the foregoing,
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0017|     provided that any of the foregoing improvements may include
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0018|     but are not limited to the acquisition of rights of way;
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0019|                    (6)  purchasing, acquiring, constructing,
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0020|     making additions to, enlarging, bettering, extending or
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0021|     equipping any airport facilities or any combination of the
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0022|     foregoing, including without limitation the acquisition of
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0023|     land, easements or rights of way therefor;
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0024|                    (7)  purchasing or otherwise acquiring or
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0025|     clearing land or for purchasing, otherwise acquiring and
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<center>- 11 -</center>

0001|     beautifying land for open space;
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0002|                    (8)  acquiring, constructing, purchasing,
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0003|     equipping, furnishing, making additions to, renovating,
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0004|     rehabilitating, beautifying or otherwise improving public
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0005|     parks, public recreational buildings or other public
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0006|     recreational facilities or any combination of the foregoing;
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0007|     and
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0008|                    (9)  acquiring, constructing, extending,
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0009|     enlarging, bettering, repairing, otherwise improving or
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0010|     maintaining solid waste disposal equipment, equipment for
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0011|     operation and maintenance of sanitary landfills, sanitary
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0012|     landfills, solid waste facilities or any combination of the
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0013|     foregoing.
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0014|          The municipality may pledge irrevocably any or all of the
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0015|     gross receipts tax revenue received by the municipality
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0016|     pursuant to Section 7-1-6.4 <u>or</u> 7-1-6.12 <s>[or 7-19A-6]</s> NMSA
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0017|     1978 <s>[or pursuant to the Municipal Infrastructure Gross
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<s></s>0018| <s>    Receipts Tax Act]</s> to the payment of the interest on and
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0019|     principal of the gross receipts tax revenue bonds for any of
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0020|     the purposes authorized in this section or for specific
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0021|     purposes or for any area of municipal government services,
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0022|     including but not limited to those specified in Subsection
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0023|     <s>[B]</s> <u>C</u> of Section 7-19D-9 NMSA 1978, or for public purposes
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0024|     authorized by municipalities having constitutional home rule
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0025|     charters.  <s>[Any]</s> <u>A</u> law that imposes or authorizes the
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<center>- 12 -</center>

0001|     imposition of a municipal gross receipts tax or that affects
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0002|     the municipal gross receipts tax, or <s>[any]</s> <u>a</u> law
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0003|     supplemental thereto or otherwise appertaining thereto, shall
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0004|     not be repealed or amended or otherwise directly or indirectly
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0005|     modified in such a manner as to impair adversely any
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0006|     outstanding revenue bonds that may be secured by a pledge of
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0007|     such municipal gross receipts tax unless <s>[such]</s> <u>the</u>
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0008|     outstanding revenue bonds have been discharged in full or
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0009|     provision has been fully made therefor.
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0010|               D.  As used in this section, the term "public
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0011|     building" includes but is not limited to fire stations, police
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0012|     buildings, jails, libraries, museums, auditoriums, convention
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0013|     halls, hospitals, buildings for administrative offices, city
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0014|     halls and garages for housing, repairing and maintaining city
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0015|     vehicles and equipment.  As used in Chapter 3, Article 31 NMSA
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0016|     1978, the term "gross receipts tax revenue bonds" means the
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0017|     bonds authorized in Subsection C of this section, and the term

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0018|     "gross receipts tax revenue" means the amount of money
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0019|     distributed to the municipality as authorized by Section    
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0020|     7-1-6.4 NMSA 1978 or the amount of money transferred to the
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0021|     municipality as authorized by Section 7-1-6.12 NMSA 1978 for
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0022|     any municipal gross receipts tax imposed pursuant to <s>[Section
</s>    |
<s></s>0023| <s>    7-19-4]</s> <u>Sections 7-19D-9 and 7-19D-11</u> NMSA 1978.  As used
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0024|     in Chapter 3, Article 31 NMSA 1978, the term "bond" means any
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0025|     obligation of a municipality issued under Chapter 3, Article
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<center>- 13 -</center>

0001|     31 NMSA 1978, whether designated as a bond, note, loan,
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0002|     warrant, debenture, lease-purchase agreement or other
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0003|     instrument evidencing an obligation of a municipality to make
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0004|     payments.
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0005|               E.  Gasoline tax revenue bonds may be issued for
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0006|     laying off, opening, constructing, reconstructing,
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0007|     resurfacing, maintaining, acquiring rights of way, repairing
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0008|     and otherwise improving municipal buildings, alleys, streets,
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0009|     public roads and bridges or any combination of the foregoing
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0010|     purposes.  The municipality may pledge irrevocably any or all
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0011|     of the gasoline tax revenue received by the municipality to
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0012|     the payment of the interest on and principal of the gasoline
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0013|     tax revenue bonds.  As used in Chapter 3, Article 31 NMSA
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0014|     1978, "gasoline tax revenue bonds" means the bonds authorized
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0015|     in this subsection, and "gasoline tax revenue" means all or
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0016|     portions of the amounts of tax revenues distributed to
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0017|     municipalities pursuant to Sections 7-1-6.9 <s>[7-1-6.14]</s> and
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0018|     7-1-6.27 NMSA 1978, as from time to time amended and
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0019|     supplemented.
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0020|               F.  Project revenue bonds may be issued for
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0021|     acquiring, extending, enlarging, bettering, repairing,
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0022|     improving, constructing, purchasing, furnishing, equipping and
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0023|     rehabilitating any revenue producing project, including, where
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0024|     applicable, purchasing, otherwise acquiring or improving the
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0025|     ground therefor, including but not necessarily limited to
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<center>- 14 -</center>

0001|     acquiring and improving parking lots, or for any combination
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0002|     of the foregoing purposes.  The municipality may pledge
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0003|     irrevocably any or all of the net revenues from the operation
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0004|     of the revenue-producing project for which the particular
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0005|     project revenue bonds are issued to the payment of the
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0006|     interest on and principal of <s>[such]</s> <u>the</u> project revenue
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0007|     bonds.  The net revenues of any revenue-producing project may
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0008|     not be pledged to the project revenue bonds issued for <s>[any]</s>
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0009|     <u>a</u> revenue-producing project that clearly is unrelated in
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0010|     nature; but nothing in this subsection shall prevent the
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0011|     pledge to <s>[any of]</s> such project revenue bonds of any
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0012|     <s>[such]</s> revenues received from <s>[any]</s> existing, future or
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0013|     disconnected facilities and equipment that are related to and
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0014|     that may constitute a part of the particular revenue-producing
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0015|     project.  <s>[Any]</s> <u>A</u> general determination by the governing
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0016|     body that any facilities or equipment is reasonably related to
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0017|     and shall constitute a part of a specified revenue-producing
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0018|     project shall be conclusive if set forth in the proceedings
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0019|     authorizing such project revenue bonds.  As used in Chapter 3,
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0020|     Article 31 NMSA 1978:
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0021|                    (1)  "project revenue bonds" means the bonds
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0022|     authorized in this subsection; and
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0023|                    (2)  "project revenues" means the net revenues
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0024|     of revenue-producing projects that may be pledged to project
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0025|     revenue bonds pursuant to this subsection.
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<center>- 15 -</center>

0001|               G.  Fire district revenue bonds may be issued for
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0002|     acquiring, extending, enlarging, bettering, repairing,
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0003|     improving, constructing, purchasing, furnishing, equipping and
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0004|     rehabilitating any fire district project, including, where
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0005|     applicable, purchasing, otherwise acquiring or improving the
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0006|     ground therefor, or for any combination of the foregoing
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0007|     purposes.  The municipality may pledge irrevocably any or all
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0008|     of the revenues received by the fire district from the fire
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0009|     protection fund as provided in Sections 59A-53-1 through
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0010|     59A-53-17 NMSA 1978 and any or all of the revenues provided
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0011|     for the operation of the fire district project for which the
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0012|     particular bonds are issued to the payment of the interest on
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0013|     and principal of <s>[such]</s> <u>the</u> bonds.  The revenues of any
    |
0014|     fire district project shall not be pledged to the bonds issued
    |
0015|     for <s>[any]</s> <u>a</u> fire district project that clearly is
    |
0016|     unrelated in its purpose; but nothing in this section shall
    |
0017|     prevent the pledge to <s>[any]</s> such bonds of any <s>[such]</s>
    |
0018|     revenues received from <s>[any]</s> existing, future or
    |
0019|     disconnected facilities and equipment that are related to and
    |
0020|     that may constitute a part of the particular fire district
    |
0021|     project.  <s>[Any]</s> <u>A</u> general determination by the governing
    |
0022|     body of the municipality that any facilities or equipment are
    |
0023|     reasonably related to and shall constitute a part of a
    |
0024|     specified fire district project shall be conclusive if set
    |
0025|     forth in the proceedings authorizing such fire district bonds.
    |
<center>- 16 -</center>

0001|               H.  Law enforcement protection revenue bonds may be
    |
0002|     issued for the repair and purchase of law enforcement
    |
0003|     apparatus and equipment that meet nationally recognized
    |
0004|     standards.  The municipality may pledge irrevocably any or all
    |
0005|     of the revenues received by the municipality from the law
    |
0006|     enforcement protection fund distributions pursuant to Sections
    |
0007|     29-13-1 through 29-13-9 NMSA 1978 to the payment of the
    |
0008|     interest on and principal of the law enforcement protection
    |
0009|     revenue bonds.
    |
0010|               <u>I.  Economic development gross receipts tax
</u>    |
<u></u>0011| <u>    revenue bonds may be issued for the purpose of furthering
</u>    |
<u></u>0012| <u>    economic development projects as defined in the Local Economic
</u>    |
<u></u>0013| <u>    Development Act.  The municipality may pledge irrevocably any
</u>    |
<u></u>0014| <u>    or all of the revenue received from the municipal economic
</u>    |
<u></u>0015| <u>    development gross receipts tax to the payment of the interest
</u>    |
<u></u>0016| <u>    on and principal of the economic development gross receipts
</u>    |
<u></u>0017| <u>    tax revenue bonds for any of the purposes authorized in this
</u>    |
<u></u>0018| <u>    subsection.  A law that imposes or authorizes the imposition
</u>    |
<u></u>0019| <u>    of a municipal economic development gross receipts tax or that
</u>    |
<u></u>0020| <u>    affects the municipal economic development gross receipts tax,
</u>    |
<u></u>0021| <u>    or a law supplemental to or otherwise pertaining to the tax,
</u>    |
<u></u>0022| <u>    shall not be repealed or amended or otherwise directly or
</u>    |
<u></u>0023| <u>    indirectly modified in such a manner as to impair adversely
</u>    |
<u></u>0024| <u>    any outstanding revenue bonds that may be secured by a pledge
</u>    |
<u></u>0025| <u>    of the municipal economic development gross receipts tax
</u>    |
<center>- 17 -</center>

<u></u>0001| <u>    unless the outstanding revenue bonds have been discharged in
</u>    |
<u></u>0002| <u>    full or provision has been fully made for their discharge.  As
</u>    |
<u></u>0003| <u>    used in Chapter 3, Article 31 NMSA 1978, "economic development
</u>    |
<u></u>0004| <u>    gross receipts tax revenue bonds" means the bonds authorized
</u>    |
<u></u>0005| <u>    in this subsection, and "economic development gross receipts
</u>    |
<u></u>0006| <u>    tax revenue" means any or all of the revenue from the
</u>    |
<u></u>0007| <u>    municipal economic development gross receipts tax transferred
</u>    |
<u></u>0008| <u>    to the municipality pursuant to Section 7-1-6.12 NMSA 1978.</u>
    |
0009|               <s>[I.]</s> <u>J</u>.  Except for the purpose of refunding
    |
0010|     previous revenue bond issues, no municipality may sell revenue
    |
0011|     bonds payable from pledged revenues after the expiration of
    |
0012|     two years from the date of the ordinance authorizing the
    |
0013|     issuance of the bonds or, for bonds to be issued and sold to
    |
0014|     the New Mexico finance authority as authorized in Subsection C
    |
0015|     of Section 3-31-4 NMSA 1978, after the expiration of two years
    |
0016|     from the date of the resolution authorizing the issuance of
    |
0017|     the bonds.  However, any period of time during which a
    |
0018|     particular revenue bond issue is in litigation shall not be
    |
0019|     counted in determining the expiration date of that issue."
    |
0020|          Section 4.  Section 4-62-1 NMSA 1978 (being Laws 1992,
    |
0021|     Chapter 95, Section 1, as amended) is amended to read:
    |
0022|          "4-62-1.  REVENUE BONDS--AUTHORITY TO ISSUE--PLEDGE OF
    |
0023|     REVENUES--LIMITATION ON TIME OF ISSUANCE.--
    |
0024|               A.  In addition to any other law authorizing a
    |
0025|     county to issue revenue bonds, a county may issue revenue
    |
<center>- 18 -</center>

0001|     bonds pursuant to Chapter 4, Article 62 NMSA 1978 for the
    |
0002|     purposes specified in this section.  The term "pledged
    |
0003|     revenues", as used in Chapter 4, Article 62 NMSA 1978, means
    |
0004|     the revenues, net income or net revenues authorized to be
    |
0005|     pledged to the payment of particular revenue bonds as
    |
0006|     specifically provided in Subsections B through <s>[J]</s> <u>K</u> of
    |
0007|     this section.
    |
0008|               B.  Gross receipts tax revenue bonds may be issued
    |
0009|     for <s>[any]</s> one or more of the following purposes:
    |
0010|                    (1)  constructing, purchasing, furnishing,
    |
0011|     equipping, rehabilitating, making additions to or making
    |
0012|     improvements to one or more public buildings or purchasing or
    |
0013|     improving <s>[any]</s> ground relating thereto, including but not
    |
0014|     necessarily limited to acquiring and improving parking lots,
    |
0015|     or any combination of the foregoing;
    |
0016|                    (2)  acquiring or improving county or public
    |
0017|     parking lots, structures or facilities or any combination of
    |
0018|     the foregoing;
    |
0019|                    (3)  purchasing, acquiring or rehabilitating
    |
0020|     firefighting equipment or any combination of the foregoing;
    |
0021|                    (4)  acquiring, extending, enlarging,
    |
0022|     bettering, repairing, otherwise improving or maintaining storm
    |
0023|     sewers and other drainage improvements, sanitary sewers,
    |
0024|     sewage treatment plants or water utilities, including but not
    |
0025|     limited to the acquisition of rights of way and water and
    |
<center>- 19 -</center>

0001|     water rights or any combination of the foregoing;
    |
0002|                    (5)  reconstructing, resurfacing, maintaining,
    |
0003|     repairing or otherwise improving existing alleys, streets,
    |
0004|     roads or bridges or any combination of the foregoing or laying
    |
0005|     off, opening, constructing or otherwise acquiring new alleys,
    |
0006|     streets, roads or bridges or any combination of the foregoing;
    |
0007|     provided that any of the foregoing improvements may include 
    |
0008|     the acquisition of rights of way;
    |
0009|                    (6)  purchasing, acquiring, constructing,
    |
0010|     making additions to, enlarging, bettering, extending or
    |
0011|     equipping airport facilities or any combination of the
    |
0012|     foregoing, including without limitation the acquisition of
    |
0013|     land, easements or rights of way;
    |
0014|                    (7)  purchasing or otherwise acquiring or
    |
0015|     clearing land or purchasing, otherwise acquiring and
    |
0016|     beautifying land for open space;
    |
0017|                    (8)  acquiring, constructing, purchasing,
    |
0018|     equipping, furnishing, making additions to, renovating,
    |
0019|     rehabilitating, beautifying or otherwise improving public
    |
0020|     parks, public recreational buildings or other public
    |
0021|     recreational facilities or any combination of the foregoing;
    |
0022|     or
    |
0023|                    (9)  acquiring, constructing, extending,
    |
0024|     enlarging, bettering, repairing or otherwise improving or
    |
0025|     maintaining solid waste disposal equipment, equipment for
    |
<center>- 20 -</center>

0001|     operation and maintenance of sanitary landfills, sanitary
    |
0002|     landfills, solid waste facilities or any combination of the
    |
0003|     foregoing.
    |
0004|          A county may pledge irrevocably any or all of the revenue
    |
0005|     from the first one-eighth of one percent increment of the
    |
0006|     county gross receipts tax for payment of principal and
    |
0007|     interest due in connection with, and other expenses related
    |
0008|     to, gross receipts tax revenue bonds for any of the purposes
    |
0009|     authorized in this section or specific purposes or for any
    |
0010|     area of county government services.  If the county gross
    |
0011|     receipts tax revenue from the first one-eighth of one percent
    |
0012|     increment of the county gross receipts tax is pledged for
    |
0013|     payment of principal and interest as authorized by this
    |
0014|     subsection, the pledge shall require the revenues received
    |
0015|     from that increment of the county gross receipts tax to be
    |
0016|     deposited into a special bond fund for payment of the
    |
0017|     principal, interest and expenses.  At the end of each fiscal
    |
0018|     year, <s>[any]</s> money remaining in the special bond fund after
    |
0019|     the annual obligations for the bonds are fully met may be
    |
0020|     transferred to any other fund of the county.
    |
0021|               C.  Fire protection revenue bonds may be issued for
    |
0022|     acquiring, extending, enlarging, bettering, repairing,
    |
0023|     improving, constructing, purchasing, furnishing, equipping or
    |
0024|     rehabilitating any independent fire district project or
    |
0025|     facilities, including, where applicable, purchasing, otherwise
    |
<center>- 21 -</center>

0001|     acquiring or improving the ground for the project or any
    |
0002|     combination of such purposes.  A county may pledge irrevocably
    |
0003|     any or all of the county fire protection excise tax revenue
    |
0004|     for payment of principal and interest due in connection with,
    |
0005|     and other expenses related to, fire protection revenue bonds. 
    |
0006|     These bonds may be referred to in Chapter 4, Article 62 NMSA
    |
0007|     1978 as "fire protection revenue bonds".
    |
0008|               D.  Environmental revenue bonds may be issued for
    |
0009|     the acquisition and construction of solid waste facilities,
    |
0010|     water facilities, wastewater facilities, sewer systems and
    |
0011|     related facilities.  A county may pledge irrevocably any or
    |
0012|     all of the county environmental services gross receipts tax
    |
0013|     revenue for payment of principal and interest due in
    |
0014|     connection with, and other expenses related to, environmental
    |
0015|     revenue bonds.  These bonds may be referred to in Chapter 4,
    |
0016|     Article 62 NMSA 1978 as "environmental revenue bonds".
    |
0017|               E.  Gasoline tax revenue bonds may be issued for
    |
0018|     the acquisition of rights of way for and the construction,
    |
0019|     reconstruction, resurfacing, maintenance, repair or other
    |
0020|     improvement of county roads and bridges.  A county may pledge
    |
0021|     irrevocably any or all of the county gasoline tax revenue for
    |
0022|     payment of principal and interest due in connection with, and
    |
0023|     other expenses related to, county gasoline tax revenue bonds. 
    |
0024|     These bonds may be referred to in Chapter 4, Article 62 NMSA
    |
0025|     1978 as "gasoline tax revenue bonds".
    |
<center>- 22 -</center>

0001|               F.  Utility revenue bonds or joint utility revenue
    |
0002|     bonds may be issued for acquiring, extending, enlarging,
    |
0003|     bettering, repairing or otherwise improving water facilities,
    |
0004|     sewer facilities, gas facilities or electric facilities or for
    |
0005|     any combination of the foregoing purposes.  A county may
    |
0006|     pledge irrevocably any or all of the net revenues from the
    |
0007|     operation of the utility or joint utility for which the
    |
0008|     particular utility or joint utility bonds are issued to the
    |
0009|     payment of principal and interest due in connection with, and
    |
0010|     other expenses related to, utility or joint utility revenue
    |
0011|     bonds.  These bonds may be referred to in Chapter 4, Article
    |
0012|     62 NMSA 1978 as "utility revenue bonds" or "joint utility
    |
0013|     revenue bonds".
    |
0014|               G.  Project revenue bonds may be issued for
    |
0015|     acquiring, extending, enlarging, bettering, repairing,
    |
0016|     improving, constructing, purchasing, furnishing, equipping or
    |
0017|     rehabilitating any revenue-producing project, including, as
    |
0018|     applicable, purchasing, otherwise acquiring or improving the
    |
0019|     ground therefor and including but not limited to acquiring and
    |
0020|     improving parking lots, or may be issued for any combination
    |
0021|     of the foregoing purposes.  The county may pledge irrevocably
    |
0022|     any or all of the net revenues from the operation of the
    |
0023|     revenue-producing project for which the particular project
    |
0024|     revenue bonds are issued to the payment of the interest on and
    |
0025|     principal of the project revenue bonds.  The net revenues of
    |
<center>- 23 -</center>

0001|     any revenue-producing project may not be pledged to the
    |
0002|     project revenue bonds issued for any other revenue-producing
    |
0003|     project that is clearly unrelated in nature; but nothing in
    |
0004|     this subsection prevents the pledge to any of the project
    |
0005|     revenue bonds of <s>[any]</s> <u>the</u> revenues received from <s>[any]</s>
    |
0006|     existing, future or disconnected facilities and equipment that
    |
0007|     are related to and that may constitute a part of the
    |
0008|     particular revenue-producing project.  A general determination
    |
0009|     by the governing body that facilities or equipment are
    |
0010|     reasonably related to and constitute a part of a specified
    |
0011|     revenue-producing project shall be conclusive if set forth in
    |
0012|     the proceedings authorizing the project revenue bonds.  As
    |
0013|     used in Chapter 4, Article 62 NMSA 1978:
    |
0014|                    (1)  "project revenue bonds" means the bonds
    |
0015|     authorized in this subsection; and
    |
0016|                    (2)  "project revenues" means the net revenues
    |
0017|     of revenue-producing projects that may be pledged to project
    |
0018|     revenue bonds pursuant to this subsection.
    |
0019|               H.  Fire district revenue bonds may be issued for
    |
0020|     acquiring, extending, enlarging, bettering, repairing,
    |
0021|     improving, constructing, purchasing, furnishing, equipping and
    |
0022|     rehabilitating any fire district project, including, where
    |
0023|     applicable, purchasing, otherwise acquiring or improving the
    |
0024|     ground therefor, or for any combination of the foregoing
    |
0025|     purposes.  The county may pledge irrevocably any or all of the
    |
<center>- 24 -</center>

0001|     revenues received by the fire district from the fire
    |
0002|     protection fund as provided in Sections 59A-53-1 through
    |
0003|     59A-53-17 NMSA 1978 and any or all of the revenues provided
    |
0004|     for the operation of the fire district project for which the
    |
0005|     particular bonds are issued to the payment of the interest on
    |
0006|     and principal of <s>[such]</s> <u>the</u> bonds.  The revenues of a fire
    |
0007|     district project shall not be pledged to the bonds issued for
    |
0008|     a fire district project that clearly is unrelated in its
    |
0009|     purpose; but nothing in this section shall prevent the pledge
    |
0010|     to <s>[any of]</s> such bonds of <s>[any such]</s> revenues received
    |
0011|     from <s>[any]</s> existing, future or <s>[of]</s> disconnected
    |
0012|     facilities and equipment that are related to and that may
    |
0013|     constitute a part of the particular fire district project.  A
    |
0014|     general determination by the governing body of the county that
    |
0015|     facilities or equipment are reasonably related to and
    |
0016|     constitute a part of a specified fire district project shall
    |
0017|     be conclusive if set forth in the proceedings authorizing
    |
0018|     the fire district bonds.
    |
0019|               I.  Law enforcement protection revenue bonds may be
    |
0020|     issued for the repair and purchase of law enforcement
    |
0021|     apparatus and equipment that meet nationally recognized
    |
0022|     standards.  The county may pledge irrevocably any or all of
    |
0023|     the revenues received by the county from the law enforcement
    |
0024|     protection fund distributions pursuant to Sections 29-13-1
    |
0025|     through 29-13-9 NMSA 1978 to the payment of the interest on
    |
<center>- 25 -</center>

0001|     and principal of the law enforcement protection revenue bonds.
    |
0002|               J.  Hospital emergency gross receipts tax revenue
    |
0003|     bonds may be issued for acquisition, equipping, remodeling or
    |
0004|     improvement of a county hospital facility.  A county may
    |
0005|     pledge irrevocably, to the payment of the interest on and
    |
0006|     principal of the hospital emergency gross receipts tax revenue
    |
0007|     bonds, any or all of the revenues received by the county from
    |
0008|     a county hospital emergency gross receipts tax imposed
    |
0009|     pursuant to Section 7-20E-12.1 NMSA 1978 and dedicated to
    |
0010|     payment of bonds or a loan for acquisition, equipping,
    |
0011|     remodeling or improvement of a county hospital facility.
    |
0012|               <u>K.  Economic development gross receipts tax
</u>    |
<u></u>0013| <u>    revenue bonds may be issued for the purpose of furthering
</u>    |
<u></u>0014| <u>    economic development projects as defined in the Local Economic
</u>    |
<u></u>0015| <u>    Development Act.  A county may pledge irrevocably any or all
</u>    |
<u></u>0016| <u>    of the county economic development gross receipts tax to the
</u>    |
<u></u>0017| <u>    payment of the interest on and principal of the economic
</u>    |
<u></u>0018| <u>    development gross receipts tax revenue bonds for any of the
</u>    |
<u></u>0019| <u>    purposes authorized in this subsection.</u>
    |
0020|               <s>[K.]</s> <u>L</u>.  Except for the purpose of refunding
    |
0021|     previous revenue bond issues, no county may sell revenue bonds
    |
0022|     payable from pledged revenue after the expiration of two years
    |
0023|     from the date of the ordinance authorizing the issuance of the
    |
0024|     bonds or, for bonds to be issued and sold to the New Mexico
    |
0025|     finance authority as authorized in Subsection C of Section
    |
<center>- 26 -</center>

0001|     4-62-4 NMSA 1978, after the expiration of two years from the
    |
0002|     date of the resolution authorizing the issuance of the bonds. 
    |
0003|     However, any period of time during which a particular revenue
    |
0004|     bond issue is in litigation shall not be counted in
    |
0005|     determining the expiration date of that issue.
    |
0006|               <s>[L.]</s> <u>M</u>.  No bonds may be issued by a county,
    |
0007|     other than an H class county, a class B county as defined in
    |
0008|     Section 4-36-8 NMSA 1978 or a class A county as described in
    |
0009|     Section 4-36-10 NMSA 1978, to acquire, equip, extend, enlarge,
    |
0010|     better, repair or construct <s>[any]</s> <u>a</u> utility unless the
    |
0011|     utility is regulated by the New Mexico public utility
    |
0012|     commission pursuant to the Public Utility Act and the issuance
    |
0013|     of the bonds is approved by the commission.  For purposes of
    |
0014|     Chapter 4, Article 62 NMSA 1978, a "utility" includes but is
    |
0015|     not limited to <s>[any]</s> <u>a</u> water, wastewater, sewer, gas or
    |
0016|     electric utility or joint utility serving the public.  H class
    |
0017|     counties shall obtain New Mexico public utility commission
    |
0018|     approvals required by Section 3-23-3 NMSA 1978.
    |
0019|               <s>[M.]</s> <u>N</u>.  Any law that imposes or authorizes the
    |
0020|     imposition of a county gross receipts tax, a county
    |
0021|     environmental services gross receipts tax, <u></u>a county fire
    |
0022|     protection excise tax, <u>a county economic development gross
</u>    |
<u></u>0023| <u>    receipts tax,</u> the gasoline tax or the county hospital
    |
0024|     emergency gross receipts tax, or that affects any of those
    |
0025|     taxes, shall not be repealed or amended in such a manner as to
    |
<center>- 27 -</center>

0001|     impair <s>[any]</s> outstanding revenue bonds that are issued
    |
0002|     pursuant to Chapter 4, Article 62 NMSA 1978 and that may be
    |
0003|     secured by a pledge of those taxes unless the outstanding
    |
0004|     revenue bonds have been discharged in full or provision has
    |
0005|     been fully made therefor.
    |
0006|               <s>[N.]</s> <u>O</u>.  As used in this section:
    |
0007|                    <u>(1)  "county economic development gross
</u>    |
<u></u>0008| <u>    receipts tax revenue" means the revenue from the county
</u>    |
<u></u>0009| <u>    economic development gross receipts tax transferred to the
</u>    |
<u></u>0010| <u>    county pursuant to Section 7-1-6.13 NMSA 1978;</u>
    |
0011|                    <s>[(1)]</s> <u>(2)</u>  "county environmental services
    |
0012|     gross receipts tax revenue" means the revenue from the county
    |
0013|     environmental services gross receipts tax transferred to the
    |
0014|     county pursuant to Section 7-1-6.13 NMSA 1978;
    |
0015|                    <s>[(2)]</s> <u>(3)</u>  "county fire protection excise
    |
0016|     tax revenue" means the revenue from the county fire protection
    |
0017|     excise tax transferred to the county pursuant to Section
    |
0018|     7-1-6.13 NMSA 1978;
    |
0019|                    <s>[(3)]</s> <u>(4)</u>  "county gross receipts tax
    |
0020|     revenue" means the revenue attributable to the first one-
    |
0021|     eighth of one percent increment of the county gross receipts
    |
0022|     tax transferred to the county pursuant to Section 7-1-6.13
    |
0023|     NMSA 1978 and any distribution related to the first one-eighth
    |
0024|     of one percent made pursuant to Section 7-1-6.16 NMSA 1978;
    |
0025|                    <s>[(4)]</s> <u>(5)</u>  "gasoline tax revenue" means
    |
<center>- 28 -</center>

0001|     the revenue from that portion of the gasoline tax distributed
    |
0002|     to the county pursuant to Sections 7-1-6.9 and 7-1-6.26 NMSA
    |
0003|     1978; and
    |
0004|                    <s>[(5)]</s> <u>(6)</u>  "public building" includes but
    |
0005|     is not limited to fire stations, police buildings, jails,
    |
0006|     libraries, museums, auditoriums, convention halls, hospitals,
    |
0007|     buildings for administrative offices, courthouses and garages
    |
0008|     for housing, repairing and maintaining county vehicles and
    |
0009|     equipment.
    |
0010|               <s>[O.]</s> <u>P</u>.  As used in Chapter 4, Article 62 NMSA
    |
0011|     1978, the term "bond" means any obligation of a county issued
    |
0012|     under Chapter 4, Article 62 NMSA 1978, whether designated as a
    |
0013|     bond, note, loan, warrant, debenture, lease-purchase agreement
    |
0014|     or other instrument evidencing an obligation of a county to
    |
0015|     make payments."
    |
0016|          Section 5.  Section 5-10-3 NMSA 1978 (being Laws 1993,
    |
0017|     Chapter 297, Section 3) is amended to read:
    |
0018|          "5-10-3.  DEFINITIONS.--As used in the Local Economic
    |
0019|     Development Act:
    |
0020|               A.  "department" means the economic development
    |
0021|     department;
    |
0022|               B.  "economic development project" or "project"
    |
0023|     means the provision of direct or indirect assistance to a
    |
0024|     qualifying business by a local or regional government and
    |
0025|     includes the purchase, lease, grant, construction,
    |
<center>- 29 -</center>

0001|     reconstruction, improvement or other acquisition or conveyance
    |
0002|     of land, buildings or other infrastructure; public works
    |
0003|     improvements essential to the location or expansion of a
    |
0004|     qualifying business; <s>[and]</s> payments for professional
    |
0005|     services contracts necessary for local or regional governments
    |
0006|     to implement a plan or project; <u>the provision of direct loans
</u>    |
<u></u>0007| <u>    or grants for land, buildings or infrastructure; loan
</u>    |
<u></u>0008| <u>    guarantees securing the cost of land, buildings or
</u>    |
<u></u>0009| <u>    infrastructure; grants for public works infrastructure
</u>    |
<u></u>0010| <u>    improvements essential to the location or expansion of a
</u>    |
<u></u>0011| <u>    qualifying business; purchase of land for a publicly held
</u>    |
<u></u>0012| <u>    industrial park; the construction of a building for use by a
</u>    |
<u></u>0013| <u>    qualifying business; purchase of real estate and options for
</u>    |
<u></u>0014| <u>    such purchases and renewals of options; and payment of a
</u>    |
<u></u>0015| <u>    portion of debt financing for land, buildings and
</u>    |
<u></u>0016| <u>    infrastructure;</u>
    |
0017|               C.  "governing body" means the city council or city
    |
0018|     commission of a city, the board of trustees of a town or
    |
0019|     village or the board of county commissioners of a county;
    |
0020|               D.  "local government" means a municipality or
    |
0021|     county;
    |
0022|               E.  "municipality" means any incorporated city,
    |
0023|     town or village;
    |
0024|               F.  "person" means an individual, corporation,
    |
0025|     association, partnership or other legal entity;
    |
<center>- 30 -</center>

0001|               G.  "qualifying entity" means a corporation,
    |
0002|     limited liability company, partnership, joint venture,
    |
0003|     syndicate, association or other person that is:
    |
0004|                    <u>(1)</u>  one or a combination of two or more of
    |
0005|     the following:
    |
0006|                         <s>[(1)]</s> <u>(a)</u>  an industry for the
    |
0007|     manufacturing, processing or assembling of <s>[any]</s>
    |
0008|     agricultural or manufactured products;
    |
0009|                         <s>[(2)]</s> <u>(b)</u>  a commercial enterprise
    |
0010|     for storing, warehousing, distributing or selling products of
    |
0011|     agriculture, mining or industry, but, other than as provided
    |
0012|     in <s>[Paragraph (5)]</s> <u>Subparagraph (e)</u> of this <s>[subsection]</s>
    |
0013|     <u>paragraph</u>, not including any enterprise for sale of goods or
    |
0014|     commodities at retail or for distribution to the public of
    |
0015|     electricity, gas, water or telephone or other services
    |
0016|     commonly classified as public utilities;
    |
0017|                         <s>[(3)]</s> <u>(c)</u>  a business in which all
    |
0018|     or part of the activities of the business involves the
    |
0019|     supplying of services to the general public or to governmental
    |
0020|     agencies or to a specific industry or customer, but, other
    |
0021|     than as provided in <s>[Paragraph (5)]</s> <u>Subparagraph (e)</u> of
    |
0022|     this <s>[subsection]</s> <u>paragraph</u>, not including businesses
    |
0023|     primarily engaged in the sale of goods or commodities at
    |
0024|     retail;
    |
0025|                         <s>[(4)]</s> <u>(d)</u>  an Indian tribe or pueblo
    |
<center>- 31 -</center>

0001|     or a federally chartered tribal corporation; or
    |
0002|                         <s>[(5)]</s> <u>(e)</u>  a telecommunications
    |
0003|     sales enterprise that makes the majority of its sales to
    |
0004|     persons outside New Mexico; <s>[and]</s> <u>or</u>
    |
0005|                    <u>(2)  located in a municipality or county with
</u>    |
<u></u>0006| <u>    a population of less than five thousand according to the most
</u>    |
<u></u>0007| <u>    recent federal decennial census and that is either an entity
</u>    |
<u></u>0008| <u>    that meets the criteria of Paragraph (1) of this subsection or
</u>    |
<u></u>0009| <u>    is primarily engaged in the sale of goods or commodities at
</u>    |
<u></u>0010| <u>    retail; and</u>
    |
0011|               H.  "regional government" means any combination of
    |
0012|     municipalities and counties that enter into a joint powers
    |
0013|     agreement to provide for economic development projects
    |
0014|     pursuant to a plan adopted by all parties to the joint powers
    |
0015|     agreement."
    |
0016|          Section 6.  Section 5-10-4 NMSA 1978 (being Laws 1993,
    |
0017|     Chapter 297, Section 4) is amended to read:
    |
0018|          "5-10-4.  ECONOMIC DEVELOPMENT PROJECTS--RESTRICTIONS ON
    |
0019|     PUBLIC EXPENDITURES OR PLEDGES OF CREDIT.--
    |
0020|               A.  No local or regional government shall provide
    |
0021|     public support for economic development projects as permitted
    |
0022|     pursuant to Article 9, Section 14 of the constitution of
    |
0023|     New Mexico except as provided in the Local Economic
    |
0024|     Development Act or as otherwise permitted by law.
    |
0025|               B.  The total amount of public money expended and
    |
<center>- 32 -</center>

0001|     the value of credit pledged in the fiscal year in which that
    |
0002|     money is expended by a local government for economic
    |
0003|     development projects pursuant to Article 9, Section 14 of the
    |
0004|     constitution of New Mexico and the Local Economic Development
    |
0005|     Act shall not exceed five percent of the annual general fund
    |
0006|     expenditures of the local government in that fiscal year. 
    |
0007|     <u>The limits of this subsection shall not apply to:</u>
    |
0008|                    <u>(1)</u>  the value of any land or building
    |
0009|     contributed to any project pursuant to a project participation
    |
0010|     agreement <s>[shall not be subject to the limits of this
</s>    |
<s></s>0011| <s>    subsection]</s>;
    |
0012|                    <u>(2)  revenue generated through the imposition
</u>    |
<u></u>0013| <u>    of a municipal economic development gross receipts tax
</u>    |
<u></u>0014| <u>    pursuant to the Municipal Local Option Gross Receipts Taxes
</u>    |
<u></u>0015| <u>    Act;</u>
    |
0016|                    <u>(3)  revenue generated through the imposition
</u>    |
<u></u>0017| <u>    of a county economic development gross receipts tax pursuant
</u>    |
<u></u>0018| <u>    to the County Local Option Gross Receipts Taxes Act;</u>
    |
0019|                    <u>(4)  the proceeds of a revenue bond issue to
</u>    |
<u></u>0020| <u>    which municipal economic development gross receipts tax
</u>    |
<u></u>0021| <u>    revenue is pledged;
</u>    |
<u></u>0022| <u>                   (5)  the proceeds of a revenue bond issue to
</u>    |
<u></u>0023| <u>    which county economic development gross receipts tax revenue
</u>    |
<u></u>0024| <u>    is pledged; or
</u>    |
<u></u>0025| <u>                   (6)  funds donated by private entities to be
</u>    |
<center>- 33 -</center>

<u></u>0001| <u>    used for defraying the cost of a project.
</u>    |
<u></u>0002| <u>              C.  A regional or local government that generates
</u>    |
<u></u>0003| <u>    revenue for economic development projects to which the limits
</u>    |
<u></u>0004| <u>    of Subsection B of this section do not apply shall create an
</u>    |
<u></u>0005| <u>    economic development fund into which such revenues shall be
</u>    |
<u></u>0006| <u>    deposited.  The economic development fund and income from the
</u>    |
<u></u>0007| <u>    economic development fund shall be deposited as provided by
</u>    |
<u></u>0008| <u>    law.  Money in the economic development fund may be expended
</u>    |
<u></u>0009| <u>    only as provided in the Local Economic Development Act.</u>"
    |
0010|          Section 7.  Section 5-10-6 NMSA 1978 (being Laws 1993,
    |
0011|     Chapter 297, Section 6) is amended to read:
    |
0012|          "5-10-6.  ECONOMIC DEVELOPMENT PLAN--CONTENTS--
    |
0013|     PUBLICATION.--
    |
0014|               A.  Every local or regional government seeking to
    |
0015|     pursue economic development projects shall adopt an economic
    |
0016|     development plan or a comprehensive plan that includes an
    |
0017|     economic development component.  The plan may be specific to a
    |
0018|     single economic development goal or strategy or may include
    |
0019|     several goals or strategies.  Any plan or plan amendment shall
    |
0020|     be adopted by ordinance of the governing body of the local
    |
0021|     government or each local government of a regional government
    |
0022|     proposing the plan or plan amendment.
    |
0023|               B.  The economic development plan or the ordinance
    |
0024|     adopting the plan may:
    |
0025|                    (1)  describe the local or regional
    |
<center>- 34 -</center>

0001|     government's economic development and community goals and
    |
0002|     assign priority to and strategies for achieving those goals;
    |
0003|                    (2)  describe the types of qualifying entities
    |
0004|     and economic activities that will qualify for economic
    |
0005|     development projects;
    |
0006|                    (3)  describe the criteria to be used to
    |
0007|     determine eligibility of an economic development project and a
    |
0008|     qualifying entity to participate in an economic development
    |
0009|     project;
    |
0010|                    (4)  describe the manner in which a qualifying
    |
0011|     entity may submit an economic development project application,
    |
0012|     including the type of information required from the qualifying
    |
0013|     entity sufficient to ensure its solvency and ability to
    |
0014|     perform its contractual obligations, its commitment to remain
    |
0015|     in the community and its commitment to the stated economic
    |
0016|     development goals of the local or regional government;
    |
0017|                    (5)  describe the process the local or
    |
0018|     regional government will use to verify the information
    |
0019|     submitted on an economic development project application;
    |
0020|                    (6)  if an economic development project is
    |
0021|     determined to be unsuccessful or if a qualifying entity seeks
    |
0022|     to leave the area, describe the methods the local or regional
    |
0023|     government will use to terminate its economic assistance and
    |
0024|     recoup its investment;
    |
0025|                    (7)  identify revenue sources, <s>[other than]</s>
    |
<center>- 35 -</center>

0001|     <u>including</u> those of the local or regional government, <s>[which
</s>    |
<s></s>0002| <s>    must]</s> <u>that will</u> be used to support economic development
    |
0003|     projects;
    |
0004|                    (8)  identify other resources the local or
    |
0005|     regional government is prepared to offer qualifying
    |
0006|     <s>[businesses]</s> <u>entities</u>, including specific land or
    |
0007|     buildings it is willing to lease, sell or grant a qualifying
    |
0008|     <s>[business]</s> <u>entity</u>; community infrastructure it is willing
    |
0009|     to build, extend or expand, including roads, water, sewers or
    |
0010|     other utilities; and professional services contracts by local
    |
0011|     or regional governments necessary to provide these resources;
    |
0012|                    (9)  detail the minimum benefit the local or
    |
0013|     regional government requires from a qualifying entity,
    |
0014|     including the number and types of jobs to be created; the
    |
0015|     proposed payroll; repayment of loans, if any; purchase by the
    |
0016|     qualifying <s>[basic business]</s> <u>entity</u> of local or regional
    |
0017|     government-provided land, buildings or infrastructure; the
    |
0018|     public to private investment ratio; and direct local tax base
    |
0019|     expansion;
    |
0020|                    (10)  describe the safeguards of public
    |
0021|     resources that will be ensured, including specific ways the
    |
0022|     local or regional government can recover any costs, land,
    |
0023|     buildings or other thing of value if a qualifying entity
    |
0024|     ceases operation, relocates or otherwise defaults or reneges
    |
0025|     on its contractual or implied obligations to the local or
    |
<center>- 36 -</center>

0001|     regional government; and
    |
0002|                    (11)  if a regional government, describe the
    |
0003|     joint powers agreement, including whether it can be terminated
    |
0004|     and, if so, how the contractual or other obligations, risks
    |
0005|     and any property will be assigned or divided among the local
    |
0006|     governments who are party to the agreement.
    |
0007|               C.  The economic development plan shall be printed
    |
0008|     and made available to the residents within the local or
    |
0009|     regional government area."
    |
0010|                              
    |