0001| SENATE BILL 250 | 0002| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998 | 0003| INTRODUCED BY | 0004| JOSEPH A. FIDEL | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO COUNTIES; AMENDING THE COUNTY IMPROVEMENT DISTRICT | 0012| ACT TO PROVIDE FOR GENERAL OBLIGATION BOND FINANCING; AMENDING | 0013| AND ENACTING SECTIONS OF THE NMSA 1978. | 0014| | 0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0016| Section 1. Section 4-55A-1 NMSA 1978 (being Laws 1980, | 0017| Chapter 91, Section 1) is amended to read: | 0018| "4-55A-1. SHORT TITLE. ~~[This act]~~ Chapter 4, Article | 0019| 55A NMSA 1978 may be cited as the "County Improvement | 0020| District Act"." | 0021| Section 2. Section 4-55A-2 NMSA 1978 (being Laws 1980, | 0022| Chapter 91, Section 2, as amended by Laws 1991, Chapter 17, | 0023| Section 3 and also by Laws 1991, Chapter 199, Section 31) is | 0024| amended to read: | 0025| "4-55A-2. IMPROVEMENT DISTRICT--DEFINITIONS.--As used in | - 1 - 0001| the County Improvement District Act: | 0002| A. "adjustment of assessment" means the adjustment | 0003| in the estimated maximum benefit or assessment resulting from | 0004| the division of the property to be assessed or assessed into | 0005| smaller tracts or parcels or the combining of smaller parcels | 0006| into one or more larger parcels or the changing of the | 0007| configuration or legal description of such parcels. | 0008| "Adjustment of assessment" may also include the real location | 0009| of the assessment lien, without loss of priority, among | 0010| parcels under single ownership that are subject to the | 0011| assessment lien in order to permit the removal of the lien | 0012| from one or more parcels where adequate security for the lien | 0013| is demonstrated by the assessed parcels under such single | 0014| ownership or provided by the owner; | 0015| B. "board" means the board of county | 0016| commissioners; | 0017| C. "construct" or "construction" means to plan, | 0018| design, engineer, construct, reconstruct, install, extend, | 0019| better, alter, build, rebuild, improve, purchase or otherwise | 0020| acquire any project authorized in the County Improvement | 0021| District Act; | 0022| D. "county" means any county except an H class | 0023| county; | 0024| E. "engineer" means any person who is a | 0025| professional engineer licensed to practice in New Mexico and | - 2 - 0001| who is a permanent employee of the county or employed by the | 0002| county in connection with an improvement; | 0003| F. "improvement" means any one or any combination | 0004| of projects in one or more locations authorized in the County | 0005| Improvement District Act; | 0006| G. "improvement district" means one or more | 0007| streets or one or more public grounds or one or more locations | 0008| wherein the improvement is to be constructed and one or more | 0009| tracts or parcels of land to be assessed or upon which an | 0010| improvement district property tax will be imposed to pay for | 0011| the cost of the improvement; and | 0012| H. "premature subdivision" means a subdivision | 0013| that has been platted and sold into multiple private ownership | 0014| prior to installation or financial guarantee of all required | 0015| improvements for land development. Such subdivisions contain | 0016| one or more of the following developmental inadequacies under | 0017| current local government standards and requirements: | 0018| (l) inadequate street right-of-way or street | 0019| access control; | 0020| (2) a lack of drainage easements of right-of- | 0021| way; | 0022| (3) a lack of adequate park, recreation or | 0023| open space area; | 0024| (4) a lack of an overall grading and drainage | 0025| plan; ~~[and]~~ or | - 3 - 0001| (5) a lack of adequate subdivision grading | 0002| both on and off the public right-of-way." | 0003| Section 3. Section 4-55A-3 NMSA 1978 (being Laws 1980, | 0004| Chapter 91, Section 3, as amended) is amended to read: | 0005| "4-55A-3. IMPROVEMENT DISTRICT--AUTHORIZATION-- | 0006| LIMITATION.-- | 0007| A. Whenever the board determines that the creation | 0008| of an improvement district is necessary for the public safety, | 0009| health or welfare, the board may create an improvement | 0010| district for any one or any combination of projects authorized | 0011| in ~~[Chapter 4, Article 55A NMSA 1978]~~ the County | 0012| Improvement District Act by the: | 0013| (1) provisional order method; or | 0014| (2) petition method. | 0015| B. The board may adopt any ordinance or resolution | 0016| necessary or proper to accomplish the purposes of the County | 0017| Improvement District Act. | 0018| C. The improvement district shall include for the | 0019| purpose of assessment or imposition of an improvement | 0020| district property tax all the property ~~[which]~~ that the | 0021| board determines is benefited by the improvement authorized by | 0022| ~~[Sections 4-55A-1 through 4-55A-39 NMSA 1978]~~ the County | 0023| Improvement District Act, including property ~~[utilized]~~ | 0024| used for public, governmental, charitable or religious | 0025| purposes, except that of the United States or any agency, | - 4 - 0001| instrumentality or corporation thereof in the absence of a | 0002| consent of congress, but shall not include any property within | 0003| the exterior boundaries of a municipality except as provided | 0004| in Section 4-55A-5 NMSA 1978 and for purposes of the | 0005| imposition of an improvement district, property tax shall not | 0006| include real property exempt from property taxation." | 0007| Section 4. Section 4-55A-10 NMSA 1978 (being Laws 1980, | 0008| Chapter 91, Section 10, as amended) is amended to read: | 0009| "4-55A-10. IMPROVEMENT DISTRICT--PETITION METHOD-- | 0010| REQUIREMENTS--DISTRIBUTION OF COSTS--NOTICE OF HEARING.-- | 0011| A. Whenever the owners of sixty-six and two-thirds | 0012| percent or more of the total assessed valuation of the | 0013| property ~~[to be benefited]~~ described in Subsection C of | 0014| Section 4-55A-3 NMSA 1978, but exclusive of any land owned by | 0015| the United States or the state of New Mexico, petition the | 0016| board in writing to create an improvement district and | 0017| construct the improvement described in the petition, the board | 0018| may: | 0019| (1) create the improvement district; | 0020| (2) select the type of material and method of | 0021| construction to be used; and | 0022| (3) proceed with the construction of the | 0023| improvement as authorized in Section 4-55A-14 NMSA 1978 after | 0024| complying with the requirements for a preliminary hearing | 0025| required in this section. A governing body of a municipality, | - 5 - 0001| board of county commissioners or local board of education may | 0002| sign a petition seeking the improvement for any land under its | 0003| control. The submission of separate petitions for any one | 0004| improvement district within a six-month period shall be | 0005| considered as a single petition. | 0006| B. The board may: | 0007| (1) pay the cost of the improvement; | 0008| (2) assess the cost of the improvement | 0009| against the benefiting tracts or parcels of land; ~~[or]~~ | 0010| (3) pay part of the cost of the improvement | 0011| and assess part of the cost of the improvement against the | 0012| benefiting tracts or parcels of land; or | 0013| (4) impose an improvement district property | 0014| tax pursuant to the County Improvement District Act. | 0015| C. If any part or all of the cost of the | 0016| improvement sought to be constructed as authorized in this | 0017| section is to be assessed against the benefiting tracts or | 0018| parcels of land or paid for by the imposition of an | 0019| improvement district property tax, the board shall hold a | 0020| preliminary hearing on the proposed improvement district and | 0021| give notice of the preliminary hearing." | 0022| Section 5. Section 4-55A-11 NMSA 1978 (being Laws 1980, | 0023| Chapter 91, Section 11, as amended) is amended to read: | 0024| "4-55A-11. IMPROVEMENT DISTRICT--NOTICE OF PRELIMINARY | 0025| HEARING.-- | - 6 - 0001| A. The notice of the preliminary hearing required | 0002| in Section 4-55A-10 NMSA 1978 shall contain: | 0003| (1) the time and place when the board will | 0004| hold a preliminary hearing on the proposed improvement; | 0005| (2) the estimated cost of the improvement; | 0006| (3) the boundary of the improvement district; | 0007| (4) the route of the improvement by streets | 0008| or roads or location of the improvements; | 0009| (5) the location of the proposed improvement; | 0010| (6) a description of each property to be | 0011| assessed or against which an improvement district property | 0012| tax is to be imposed; | 0013| (7) the estimated amount of the assessment | 0014| against or property tax imposed upon each tract or parcel of | 0015| land; and | 0016| (8) the amount of the cost to be assumed by | 0017| the county, if any. | 0018| B. If the owners are found within the county, the | 0019| notices shall be personally served on them at least thirty | 0020| days prior to the day of the hearing. The notice shall also | 0021| be published in a newspaper published in the county once each | 0022| week for four successive weeks. The last publication shall be | 0023| at least three days before the day of the preliminary | 0024| hearing." | 0025| Section 6. Section 4-55A-12 NMSA 1978 (being Laws 1980, | - 7 - 0001| Chapter 91, Section 12, as amended) is amended to read: | 0002| "4-55A-12. IMPROVEMENT DISTRICT--PRELIMINARY HEARING-- | 0003| PROTEST--ACTION OF THE BOARD--ACTION IN DISTRICT COURT.-- | 0004| A. At the preliminary hearing of the board on the | 0005| question of creating an improvement district as authorized in | 0006| Section 4-55A-10 NMSA 1978, any owner of a tract or parcel of | 0007| land to be assessed or upon which it is proposed to impose an | 0008| improvement district property tax may contest: | 0009| (1) the proposed assessment or tax; | 0010| (2) the regularity of the proceedings | 0011| relating to the improvement; | 0012| (3) the benefits of the improvement; or | 0013| (4) any other matter relating to the | 0014| improvement district. | 0015| B. The board shall not assess the tract or parcel | 0016| of land an amount greater than the actual benefit to the tract | 0017| or parcel of land by reason of the enhanced value of the tract | 0018| or parcel of land as a result of the improvement as | 0019| ascertained at the hearing. The board may allow a fair price, | 0020| based on its ~~[present]~~ current value, as a setoff against | 0021| any assessment against a tract or parcel of land if the owner | 0022| has improved the tract or parcel of land in such a manner that | 0023| the improvement may be made part of the proposed improvement. | 0024| C. At the hearing, the board may: | 0025| (1) correct any mistake or irregularity in | - 8 - 0001| any proceeding relating to the improvement; | 0002| (2) correct an assessment to be made | 0003| against any tract or parcel of land; | 0004| (3) in case of any invalidity, reassess the | 0005| cost of the improvement against a benefiting tract or parcel | 0006| of land; ~~[and]~~ or | 0007| (4) recess the hearing from time to time. | 0008| D. Within thirty days after the hearing, any owner | 0009| of a tract or parcel of land to be assessed, whether he | 0010| appeared at the hearing or not, may commence an action in | 0011| district court seeking an account of any error or invalidity | 0012| of the proceedings relating to the improvement district to set | 0013| aside or correct the assessment or any proceedings relating to | 0014| the improvement district. Thereafter, any owner or his heirs, | 0015| assigns, successors or personal representatives are | 0016| perpetually barred from any action or any defense of error or | 0017| invalidity in the proceedings or assessments. Where no owner | 0018| of a tract or parcel to be assessed has presented a protest | 0019| during the hearing and all owners of the property to be | 0020| assessed, upon conclusion of the hearing, submit written | 0021| statements in favor of the creation of the improvement | 0022| district for the types and character of improvements indicated | 0023| in the petition, such owners shall be deemed to have waived | 0024| their right to bring any action in district court seeking an | 0025| account of any error or invalidity of the proceedings relating | - 9 - 0001| to the improvement district or to set aside or correct the | 0002| assessment or any proceedings relating to the improvement | 0003| district." | 0004| Section 7. A new section of the County Improvement | 0005| District Act, Section 4-55A-12.1 NMSA 1978, is enacted to | 0006| read: | 0007| "4-55A-12.1. [NEW MATERIAL] IMPOSITION OF IMPROVEMENT | 0008| DISTRICT PROPERTY TAX--LIMITATIONS.-- | 0009| A. If in connection with the creation of the | 0010| improvement district the board determines that it is in the | 0011| best interest of the county to finance the district | 0012| improvements by the imposition of an improvement district | 0013| property tax and the issuance of improvement district general | 0014| obligation bonds, the board shall enact an ordinance making | 0015| the determination and provide in the ordinance the tax rate to | 0016| be imposed, the amount of the bonds to be issued to finance | 0017| the improvements and any other matters the board deems | 0018| necessary or appropriate. The board shall call an election | 0019| within the district for the purpose of authorizing the board | 0020| to issue general obligation bonds, the proceeds of the sale of | 0021| which shall be used for constructing the improvements for | 0022| which the district was created and to impose property taxes on | 0023| all taxable property within the district for the purpose of | 0024| paying the principal, debt service and other expenses | 0025| incidental to the issuance and sale of the bonds. The | - 10 - 0001| ordinance shall include a limitation on the rate of the | 0002| authorized imposition of not to exceed twenty dollars ($20.00) | 0003| per one thousand dollars ($1,000) of net taxable value of real | 0004| property in the district subject to property taxation. The | 0005| ordinance shall also include procedures for the conduct of the | 0006| election based upon the size of the improvement district and | 0007| the number of voters entitled to vote. | 0008| B. If at the election described in Subsection A of | 0009| this section the property tax imposition and the issuance of | 0010| improvement district general obligation bonds are approved by | 0011| a majority of the voters voting on the issues, the board shall | 0012| impose the tax at a rate not to exceed the limitation in | 0013| Subsection A of this section and sufficient to pay the debt | 0014| service on the bonds and retire them at maturity. | 0015| C. Imposition and collection of the improvement | 0016| district property tax authorized in this section shall be made | 0017| at the same time and in the same manner as impositions and | 0018| collections of property taxes for use by counties are made. | 0019| D. Bonds issued by the board for payment of the | 0020| specified improvement district improvements shall be sold at a | 0021| price that does not result in a net effective interest rate | 0022| exceeding the maximum net effective interest rate permitted by | 0023| the Public Securities Act. The bonds may be sold at public or | 0024| private sale and may be in denominations that the board | 0025| determines. | - 11 - 0001| E. The form and terms of the bonds, including | 0002| provisions for their payment and redemption, shall be as | 0003| determined by the board. The bonds shall be executed in the | 0004| name of and on behalf of the improvement district. The bonds | 0005| may be executed and sealed in accordance with the provisions | 0006| of the Uniform Facsimile Signature of Public Officials Act. | 0007| F. To provide for the payment of the interest and | 0008| principal of the bonds issued and sold pursuant to this | 0009| section, the board shall annually impose a property tax on all | 0010| taxable property in the district in an amount sufficient to | 0011| produce a sum equal to the principal and interest on all bonds | 0012| as they mature subject to the limitation of Subsection A of | 0013| this section. | 0014| G. The bonds authorized in this section are | 0015| general obligation bonds of the district and the full faith | 0016| and credit of the district are pledged to the payment of the | 0017| bonds. The proceeds obtained from the issuance of the bonds | 0018| shall not be diverted or expended for any purposes other than | 0019| those provided in the County Improvement District Act. | 0020| H. All bonds issued by an improvement district | 0021| shall be fully negotiable and constitute negotiable | 0022| instruments within the meaning of and for all the purposes of | 0023| the Uniform Commercial Code. If lost or completely destroyed, | 0024| any bond may be reissued in the form and tenor of the lost or | 0025| destroyed bond upon the owner furnishing to the satisfaction | - 12 - 0001| of the board: | 0002| (1) proof of ownership; | 0003| (2) proof of loss or destruction; | 0004| (3) a surety bond in twice the face amount of | 0005| the bond and coupons; and | 0006| (4) payment of the cost of preparing and | 0007| issuing the new bond and coupons. | 0008| I. The board may in any proceedings authorizing | 0009| improvement district bonds provide for the initial issuance of | 0010| one or more bonds aggregating the amount of the entire issue | 0011| or may make provision for installment payments of the | 0012| principal amount of any bond as it may consider desirable. | 0013| J. The board may issue bonds to be denominated | 0014| refunding bonds, for the purpose of refunding any of the | 0015| general obligation bonded indebtedness of the district. | 0016| Whenever the board deems it expedient to issue refunding | 0017| bonds, it shall adopt a resolution setting out the facts | 0018| making the issuance of the refunding bonds necessary or | 0019| advisable, the determination of the necessity or advisability | 0020| by the board and the amount of refunding bonds that the board | 0021| deems necessary and advisable to issue. The resolution shall | 0022| fix the form of the bonds; the rate or rates of interest of | 0023| the bonds, but the net effective interest rate of the bonds | 0024| shall not exceed the maximum net effective interest rate | 0025| permitted by the Public Securities Act; the date of the | - 13 - 0001| refunding bonds; the denominations of the refunding bonds; the | 0002| maturity dates; and the place or places of payment within or | 0003| without the state of both principal and interest. Refunding | 0004| bonds when issued, except for bonds issued in book entry or | 0005| similar form without the delivery of physical securities, | 0006| shall be negotiable in form, shall bear the signature or the | 0007| facsimile signature of the chairman of the board and shall be | 0008| attested to by the secretary of the board. All refunding | 0009| bonds may be exchanged dollar for dollar for the bonds to be | 0010| refunded or they may be sold as directed by the board, and the | 0011| proceeds of the sale shall be applied only to the purpose for | 0012| which the bonds were issued and the payment of any incidental | 0013| expenses." | 0014| Section 8. Section 4-55A-20 NMSA 1978. (being Laws 1980, | 0015| Chapter 91, Section 20, as amended) is amended to read: | 0016| "4-55A-20. IMPROVEMENT DISTRICT--AUTHORITY TO ISSUE | 0017| BONDS OR ASSIGNABLE CERTIFICATES.-- | 0018| A. To pay all or any part of the cost of the | 0019| improvement, including those items set out in Subsection C of | 0020| Section 4-55A-7 NMSA 1978, the board may proceed pursuant to | 0021| the provisions of Section 4-55A-12.1 NMSA 1978 or may issue | 0022| in the name of the county bonds in such form as the board may | 0023| determine or assignable certificates in an amount not | 0024| exceeding the total cost of the improvement and maturing not | 0025| more than twenty years from the date of issuance. If the | - 14 - 0001| bonds or assignable certificates recite that: | 0002| (1) the proceedings relating to making the | 0003| improvement and levying the assessments as provided in Section | 0004| 4-55A-18 NMSA 1978 or placing the preliminary lien as provided | 0005| in Section 4-55A-7 NMSA 1978 to pay for the improvement have | 0006| been done in compliance with law; and | 0007| (2) all prerequisites to the fixing of the | 0008| assessment lien or placing the preliminary lien against the | 0009| tract or parcel of land benefited by the improvement have been | 0010| performed, such recital shall be conclusive evidence of the | 0011| facts recited. | 0012| B. The assignable certificates shall: | 0013| (1) declare the liability of the owner of the | 0014| tract or parcel of land so assessed or the liability of the | 0015| tract or parcel of land so assessed for payment of the | 0016| assessment, interest and penalties; | 0017| (2) fix the terms and conditions of the | 0018| certificates; and | 0019| (3) accurately describe the tract or parcel | 0020| of land covered by the certificate. | 0021| C. The bonds shall: | 0022| (1) recite the terms and conditions for their | 0023| issuance; | 0024| (2) be payable from money collected from the | 0025| preliminary assessment lien authorized in Section 4-55A-7 NMSA | - 15 - 0001| 1978 and, if so payable, also payable from the proceeds of | 0002| bonds payable from the final assessment lien authorized in | 0003| Section 4-55A-18 NMSA 1978; or | 0004| (3) be payable from the money collected from | 0005| the assessments authorized in Section 4-55A-18 NMSA 1978; | 0006| provided that if assessments are made payable over more than | 0007| one period of time as permitted by Section 4-55A-19 NMSA 1978, | 0008| specified portions of the bonds may be payable from money | 0009| collected from those assessments payable over that period of | 0010| time that generally corresponds to the period of time over | 0011| which such specified portions of the bonds are payable; and | 0012| (4) bear a rate or rates of interest that | 0013| shall not exceed the rate of interest on the deferred | 0014| installments of the assessments or, if more than one rate of | 0015| interest is specified for assessments as permitted by Section | 0016| 4-55A-19 NMSA 1978, on that portion of the deferred | 0017| installments of assessments from which that specified portion | 0018| of the bonds may be payable. Payment of the bonds issued for | 0019| the construction of a project described in Subsection A of | 0020| Section 4-55A-4 NMSA 1978 may be supplemented from gasoline | 0021| tax and special fuel ~~[use]~~ excise tax distributed to the | 0022| county ~~[under Section 7-13-9 NMSA 1978]~~ pursuant to Section | 0023| 7-1-6.39 NMSA 1978 on or before a date not more than twelve | 0024| months after the last deferred installment of an assessment is | 0025| due from the owner of a tract or parcel of land so assessed. | - 16 - 0001| D. The bonds may be issued to the contractor in | 0002| payment for the construction of the improvement or may be | 0003| issued and sold: | 0004| (1) in payment of the county's proportion of | 0005| the cost of the improvement; | 0006| (2) in payment of the proportionate cost, if | 0007| the improvement is done in cooperation with another | 0008| governmental agency; | 0009| (3) in payment of the construction of the | 0010| improvement done under contract; or | 0011| (4) in reimbursement to the county, if the | 0012| county constructed the improvement with county-owned or | 0013| -leased equipment and county employees. | 0014| E. Bonds or assignable certificates may be sold at | 0015| a public or private sale at a discount." | 0016| Section 9. EFFECTIVE DATE.--The effective date of the | 0017| provisions of this act is July 1, 1998. | 0018| |