SENATE JUDICIARY COMMITTEE SUBSTITUTE FOR

SENATE BILL 435

51st legislature - STATE OF NEW MEXICO - first session, 2013

AN ACT

RELATING TO MUNICIPALITIES; PROVIDING AVENUES TO DISINCORPORATION OTHER THAN BY PETITION; PROVIDING FOR ELECTIONS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 3-4-1 NMSA 1978 (being Laws 1965, Chapter 300, Section 14-4-1, as amended) is amended to read:

     "3-4-1. DISINCORPORATION--PETITION--NOTICE OF ELECTION.--

          A. The board of county commissioners of the county in which a municipality that may be subject to disincorporation is situated shall adopt an election resolution within fourteen days calling for a special election to be held within the municipality on the question of disincorporating the municipality if:

                (1) it is certified as valid that one-fourth of the registered voters of a municipality [petition] have petitioned the board of county commissioners of the county [wherein] in which the municipality is situated to disincorporate the municipality [the board of county commissioners shall, within fourteen days after the petition has been certified as valid, adopt an election resolution calling for a special election to be held within the municipality on the question of disincorporating the municipality] by special election;

                (2) the governing body of the municipality adopts a resolution calling for a special election on the question of disincorporating the municipality; or

                (3) the secretary of finance and administration and the state auditor request in writing that the board of county commissioners adopt a resolution calling for a special election on the question of disincorporating the municipality. 

          B. At the top of each page of a disincorporation petition, the following heading shall be printed in substantially the following form:

"PETITION TO DISINCORPORATE THE MUNICIPALITY OF. . . . . .

     We, the undersigned registered voters of the municipality of ......, pursuant to Section 3-4-1 NMSA 1978, petition the board of county commissioners of ...... county to conduct a special election on the question of disincorporating the municipality of ......

    Date     Name--Printed     Address            Usual

             As Registered     As Registered     Signature.".

        C. The day for holding the election shall not be less than fifty days [nor] or more than sixty days after the board of county commissioners adopts the election resolution.

         [B.] D. Notice of the election shall be published as required for special elections as set forth in the Municipal Election Code."

    SECTION 2. Section 3-4-7 NMSA 1978 (being Laws 1965, Chapter 300, Section 14-4-7) is amended to read:

    "3-4-7. DISINCORPORATION--[CARE OF PROPERTY--MANAGER] DISPOSITION OF PROPERTY AND FUNDS.--If a municipality is disincorporated, all assets of the disincorporated municipality shall become the property of the board of county commissioners [shall assume control of all property belonging to the disincorporated municipality and shall employ a qualified person to manage and operate the property and to collect all charges due from the operation of such property. He shall execute a bond to the county in an amount determined by the board of county commissioners, conditioned that he will faithfully perform his duties and will promptly pay all money he receives to the county treasurer monthly on the first day of each month. The bond shall be executed by him and a surety company authorized to do business in the state. The premium on the bond shall be paid by the board of county commissioners from municipal funds if any; if none, from county funds] of the county in which the disincorporated municipality is located."

    SECTION 3. Section 3-4-8 NMSA 1978 (being Laws 1965, Chapter 300, Section 14-4-8) is amended to read:

    "3-4-8. INCOME FROM [PROPERTY] ASSETS OF A DISINCORPORATED MUNICIPALITY.--Money received from the operation [of property] and management of a disincorporated [municipality] municipality's assets shall be used by the board of county commissioners in the following priority:

         A. to pay [employees engaged in] for the operation, maintenance, repair and protection of the [property] assets;

         B. to pay the interest on the bonded indebtedness of the municipality;

         C. to purchase or redeem bonded indebtedness of the municipality; and

         D. after all bonded indebtedness has been paid [to support the public schools that existed within the boundary of the municipality at the time of its disincorporation] for governmental operations and services of the county, as determined by the board of county commissioners."

    SECTION 4. Section 3-4-9 NMSA 1978 (being Laws 1965, Chapter 300, Section 14-4-9) is amended to read:

    "3-4-9. DISINCORPORATION--INSUFFICIENT INCOME TO PAY OBLIGATIONS--LEVY OF TAX--DUTY VESTED IN BOARD OF COUNTY COMMISSIONERS.--If insufficient money is received from the operation and management of the [property] assets of [the] a disincorporated municipality to pay the obligations in the order designated in Subsections A, B and C of Section [14-4-8 New Mexico Statutes Annotated, 1953 Compilation] 3-4-8 NMSA 1978, the board of county commissioners shall levy a tax on all taxable property within the boundary of the municipality at the time of its disincorporation. This tax shall be sufficient to pay the obligations incurred in the operation, maintenance, repair and protection of the [property] assets of the disincorporated municipality and to comply with the terms and conditions of the evidences of the bonded indebtedness of the disincorporated municipality. The board of county commissioners shall, without charge, perform the duties of the governing body of the disincorporated municipality to satisfy the terms of the bonds, obligations or contracts of the disincorporated municipality."

    SECTION 5. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2013.

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