SENATE BILL 394
53rd legislature - STATE OF NEW MEXICO - first session, 2017
INTRODUCED BY
Steven P. Neville
AN ACT
RELATING TO PUBLIC FINANCE; INCLUDING PROVISIONS FOR COUNTY INDUSTRIAL REVENUE BONDS WITHIN THE INDUSTRIAL REVENUE BOND ACT; CHANGING THE LIST OF PROJECTS THAT MAY BE FUNDED WITH INDUSTRIAL REVENUE BONDS; REQUIRING INDUSTRIAL REVENUE BOND FUNDED PROJECTS TO BE LOCATED ENTIRELY INSIDE CERTAIN BOUNDARIES OF ISSUING LOCAL GOVERNMENTS; PROVIDING FOR LOCAL GOVERNMENT CONTRIBUTIONS TOWARD CERTAIN PROJECTS, AS PERMITTED PURSUANT TO THE LOCAL ECONOMIC DEVELOPMENT ACT; AMENDING, REPEALING, ENACTING AND RECOMPILING SECTIONS OF THE NMSA 1978.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 3-32-2 NMSA 1978 (being Laws 1967, Chapter 84, Section 1, as amended by Laws 1997, Chapter 216, Section 1 and also by Laws 1997, Chapter 226, Section 1) is recompiled as Section 5-20-1 NMSA 1978 and is amended to read:
"5-20-1. SHORT TITLE.--[Chapter 3, Article 32 NMSA 1978] Chapter 5, Article 20 NMSA 1978 may be cited as the "Industrial Revenue Bond Act"."
SECTION 2. Section 3-32-1 NMSA 1978 (being Laws 1965, Chapter 300, Section 14-31-1, as amended by Laws 2002, Chapter 25, Section 1 and by Laws 2002, Chapter 37, Section 1) is recompiled as Section 5-20-2 NMSA 1978 and is amended to read:
"5-20-2. INDUSTRIAL REVENUE BOND ACT--DEFINITIONS.--Wherever used in the Industrial Revenue Bond Act unless a different meaning clearly appears in the context, the following terms whether used in the singular or plural shall be given the following respective interpretations:
A. "county" means a county organized or incorporated in New Mexico;
B. "governing body" means the board or body in which the legislative powers of a local government are vested;
[A.] C. "municipality" means [any] a city, town or village in [the state of] New Mexico;
[B.] D. "project" means any land and building or other improvements thereon, the acquisition by or for a New Mexico corporation of the assets or stock of an existing business or corporation located outside the state [of New Mexico] to be relocated within [or near the municipality] a local government in the state [of New Mexico] and all real and personal properties deemed necessary in connection therewith, whether or not now in existence, which shall be suitable for use by the following or by any combination of two or more thereof:
(1) [any] an industry for the manufacturing, processing or assembling of [any] agricultural or manufactured products;
(2) a commercial enterprise that has received a permit from the energy, minerals and natural resources department for a mine that has not been in operation prior to the issuance of bonds for the project for which the enterprise will be involved;
(3) a commercial enterprise that has received any necessary state permit from a refinery, treatment plant or processing plant of energy products that was not in operation prior to the issuance of bonds for the project for which the enterprise will be involved;
[(2) any] (4) a commercial enterprise in storing, warehousing, distributing or selling products of agriculture, mining or industry, but does not include [facilities] a facility designed for:
(a) the sale of goods or commodities at retail, except for a telecommunications sales enterprise that makes the majority of its sales to persons outside of New Mexico; or
(b) distribution to the public of electricity, gas, water or telephone or [other services] any other service commonly classified as a public [utilities] utility, except a water utility;
[(3) any] (5) a business in which all or part of the activities of the business involve the supplying of services to the general public or to governmental agencies or to a specific industry or customer but does not include [establishments] an establishment that is primarily engaged in the sale of goods or commodities at retail, except for a telecommunications sales enterprise that makes the majority of its sales to persons outside of New Mexico;
[(4) any] (6) a water distribution or irrigation system, including without limitation, pumps, distribution lines, transmission lines, towers, dams and similar facilities and equipment; [designed to provide water to any vineyard or winery;
(5) any] (7) an electric generation facility other than one for which both location approval and a certificate of convenience and necessity are required prior to commencing construction or operation of the facility, pursuant to the Public Utility Act; [and Electric Utility Industry Restructuring Act of 1999; and] or
[(6) any] (8) a 501(c)(3) corporation;
[C. "governing body" means the board or body in which the legislative powers of the municipality are vested;]
E. "local government" means a county or a municipality;
F. "mortgage" means a mortgage or a mortgage and deed of trust or the pledge and hypothecation of any assets as collateral security;
[D.] G. "property" means any land, improvements thereon, buildings and any improvements thereto, machinery and equipment of any and all kinds necessary to the project, operating capital and any other personal properties deemed necessary in connection with the project;
[E. "mortgage" means a mortgage or a mortgage and deed of trust or the pledge and hypothecation of any assets as collateral security;
F. "health care services" means the diagnosis or treatment of sick or injured persons or medical research and includes the ownership, operation, maintenance, leasing and disposition of health care facilities such as hospitals, clinics, laboratories, x-ray centers and pharmacies and, for any small municipality only, office facilities for physicians;
G.] H. "refinance a [hospital or] 501(c)(3) corporation project" means the issuance of bonds by a [municipality] local government and the use of all or substantially all of the proceeds to liquidate any obligations previously incurred to finance or aid in financing a project of [any nonprofit corporation engaged in health care services, including nursing homes, or of any] a 501(c)(3) corporation, which would constitute a project under the Industrial Revenue Bond Act had it been originally undertaken and financed by a municipality pursuant to the Industrial Revenue Bond Act; and
[H.] I. "501(c)(3) corporation" means a corporation that demonstrates to the taxation and revenue department that it has been granted exemption from the federal income tax as an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended or renumbered."
SECTION 3. Section 3-32-4 NMSA 1978 (being Laws 1965, Chapter 300, Section 14-31-2, as amended) is recompiled as Section 5-20-3 NMSA 1978 and is amended to read:
"5-20-3. LEGISLATIVE INTENT.--It is the intent of the legislature by the passage of [Sections 14-31-1 through 14-31-13 NMSA 1953] the Industrial Revenue Bond Act to authorize [municipalities] local governments to acquire, own, lease or sell projects for the purpose of promoting industry and trade other than retail trade, with the exception of certain telecommunications sales enterprises, by inducing manufacturing, industrial and commercial enterprises to locate or expand in this state, promoting the use of the agricultural products and natural resources of this state and promoting a sound and proper balance in this state between agriculture, commerce and industry. It is intended that each project be self-liquidating. It is further intended that the Industrial Revenue Bond Act authorize local governments to refinance 501(c)(3) corporation projects. It is not intended [hereby] to authorize any [municipality] local government itself to operate any manufacturing, industrial or commercial enterprise or a 501(c)(3) corporation project. [Sections 14-31-1 through 14-31-13 NMSA 1953 shall be liberally construed in conformity with the said intent.]"
SECTION 4. Section 3-32-6 NMSA 1978 (being Laws 1965, Chapter 300, Section 14-31-3, as amended) is recompiled as Section 5-20-4 NMSA 1978 and is amended to read:
"5-20-4. ADDITIONAL POWERS CONFERRED ON [MUNICIPALITIES] LOCAL GOVERNMENTS.--In addition to any other powers that it may now have, a [municipality] local government shall have the following powers:
A. to acquire, whether by construction, purchase, gift or lease, one or more projects [that shall be located within this state and may be located within or without the municipality or partially within or partially without the municipality, but which shall not be located more than fifteen miles outside of the corporate limits of the municipality]; provided that:
[(1) urban transit buses qualifying as a project pursuant to Subsection B of Section 3-32-3 NMSA 1978 need not be continuously located within this state, but the commercial enterprise using the urban transit buses for leasing shall meet the location requirement of this subsection; and
(2)] (1) a [municipality] local government shall not acquire [any] an electricity generation facility project unless the acquisition is approved by the [local school] board of education of the school district in which [a] the project is located and the governing body, the [local school] board of education and the person proposing the project negotiate and determine the amount of an annual in-lieu tax payment to be made to the school district by the person proposing the project, for the period that the [municipality] local government owns and leases the project; [and] provided such approval shall not be unreasonably withheld;
(2) a project acquired by a municipality shall be entirely located within the boundaries of the municipality; and
(3) a project acquired by a county shall be entirely located within the county, but outside the boundaries of any incorporated municipality; provided that a class A county with a population of more than three hundred thousand according to the most recent federal decennial census may acquire projects anywhere in the county;
B. to sell or lease or otherwise dispose of any or all of its projects upon such terms and conditions as the governing body may deem advisable and as shall not conflict with the provisions of the Industrial Revenue Bond Act;
C. to issue revenue bonds for the purpose of defraying the cost of acquiring by construction and purchase, or either, any project and to secure the payment of such bonds, all as provided in the Industrial Revenue Bond Act. [No municipality] A local government shall not have the power to operate any project as a business or in any manner except as lessor; and
D. to refinance one or more [hospital or] 501(c)(3) corporation projects and to acquire any such [hospital or] 501(c)(3) corporation project whether by construction, purchase, gift or lease [which hospital or 501(c)(3) corporation project shall be located within this state and may be located within or without the municipality or partially within or partially without the municipality, but which shall not be located more than fifteen miles outside of the corporate limits of the municipality], and to issue revenue bonds to refinance and acquire a [hospital or] 501(c)(3) corporation project and to secure the payment of such bonds, all as provided in the Industrial Revenue Bond Act. A [municipality] local government shall not have the power to operate a [hospital or] 501(c)(3) corporation project as a business or in any manner except as a lessor [and
E. to refinance one or more projects of any private institution of higher education and to acquire any such project, whether by construction, purchase, gift or lease; provided that the project shall be located within this state and may be located within or without the municipality or partially within or partially without the municipality, but the project shall not be located more than fifteen miles outside of the corporate limits of the municipality, and to issue revenue bonds to refinance and acquire any project of any private institution of higher education and to secure the payment of such bonds. A municipality shall not have the power to operate a project of a private institution of higher education as a business or in any manner except as lessor]."
SECTION 5. Section 3-32-6.1 NMSA 1978 (being Laws 1997, Chapter 216, Section 2 and Laws 1997, Chapter 226, Section 2, as amended) is recompiled as Section 5-20-5 NMSA 1978 and is amended to read:
"5-20-5. NOTICE [TO COUNTY] OF INTENT TO ISSUE INDUSTRIAL REVENUE BONDS--MUNICIPALITIES.--
A. Prior to adopting an ordinance issuing industrial revenue bonds, [the] a municipality shall give notice to the board of county commissioners and the county assessor of each county in which the municipality lies of [its] the intent of the municipality to consider the matter. The board and the county assessor shall be notified at least thirty days prior to the meeting at which final action is to be taken so that comments can be transmitted to the municipality.
B. The board of county commissioners and the county assessor shall be able to forward their comments and [any] concerns to the city council, but [there is no] approval is not required from the board or the county assessor and they do not have veto over the proposed industrial revenue bond issuance.
C. The municipality and county shall jointly develop criteria for issuance of industrial revenue bonds by either government; provided, however, that industrial revenue bonds may be authorized and issued before development of the criteria is completed.
D. The municipality shall notify the board of county commissioners and the county assessor when an industrial revenue bond has matured, expired or been replaced by a refunding bond."
SECTION 6. Section 4-59-4.1 NMSA 1978 (being Laws 1997, Chapter 216, Section 4 and Laws 1997, Chapter 226, Section 4, as amended by Laws 2011, Chapter 80, Section 1 and by Laws 2011, Chapter 82, Section 1) is recompiled as Section 5-20-6 NMSA 1978 and is amended to read:
"5-20-6. NOTICE OF INTENT TO ISSUE INDUSTRIAL REVENUE BONDS--COUNTIES.--
A. Prior to adopting an ordinance issuing county industrial revenue bonds, a county shall give notice to the county assessor and any entity located within the county authorized to levy taxes on property in the county of its intent to consider the matter. The county assessor and entities authorized to levy taxes shall be notified by certified mail, return receipt requested, at least thirty calendar days prior to the meeting at which final action is to be taken so that comments can be transmitted to the county. The notice shall include the amount, the purpose and the time period of the proposed industrial revenue bonds.
B. The county assessor and entities authorized to levy taxes shall be able to forward their comments and any concerns to the board of county commissioners, but there is no approval required from the county assessor or entities authorized to levy taxes and they do not have veto over the proposed county industrial revenue bond issuance.
C. The county and entities authorized to levy taxes shall jointly develop criteria for issuance of industrial revenue bonds; provided, however, that county industrial revenue bonds may be authorized and issued before development of the criteria is completed.
D. The county shall notify the board of county commissioners, the county assessor and any entity levying taxes on property in the county when an industrial revenue bond has matured, expired or been replaced by a refunding bond."
SECTION 7. Section 3-32-7 NMSA 1978 (being Laws 1965, Chapter 300, Section 14-31-4, as amended) is recompiled as Section 5-20-7 NMSA 1978 and is amended to read:
"5-20-7. BONDS ISSUED TO FINANCE PROJECTS.--
A. Bonds issued by a [municipality] local government under authority of the Industrial Revenue Bond Act shall not be the general obligation of the [municipality] local government within the meaning of Article 9, Sections 12 and 13 of the constitution of New Mexico. The bonds shall be payable solely out of the revenue derived from the projects for which the bonds are issued. Bonds and interest coupons, if any, issued under authority of the Industrial Revenue Bond Act shall never constitute an indebtedness of the [municipality] local government within the meaning of any state constitutional provision or statutory limitation and shall never constitute or give rise to a pecuniary liability of the [municipality] local government or a charge against its general credit or taxing powers, and such fact shall be plainly stated on the face of each bond.
B. The bonds may be executed and delivered at any time, and from time to time, may be in such form and denominations, may be of such tenor, may be in registered or bearer form either as to principal or interest or both, may be payable in such installments and at such time or times not exceeding thirty years from their date, may be payable at such place or places, may bear interest at such rate or rates payable at such place or places and evidenced in such manner and may contain such provisions not inconsistent with the Industrial Revenue Bond Act, all as shall be provided in the ordinance and proceedings of the governing body under which the bonds are authorized to be issued.
C. Bonds issued under the authority of the Industrial Revenue Bond Act may be sold at public or private sale in such manner and from time to time as may be determined by the governing body to be most advantageous, and the [municipality] issuing local government may pay all expenses, attorney, engineering and [architects'] architect fees, premiums and commissions that the governing body may deem necessary or advantageous in connection with the authorization, sale and issuance of the bonds.
D. Bonds issued under the authority of the Industrial Revenue Bond Act and all interest coupons applicable thereto, if any, shall be construed to be negotiable.
E. A bond shall not be issued by a municipality having a population of more than forty thousand according to the most recent decennial census to finance a project that is valued at eight million dollars ($8,000,000) or more unless an employer of the project:
(1) offers to its employees and their dependents health insurance coverage that is in compliance with the New Mexico Insurance Code or a comparable health benefits plan pursuant to the federal Employee Retirement Income Security Act of 1974; and
(2) contributes not less than fifty percent of the premium for the health care coverage for those employees who choose to enroll; provided that the fifty percent employer contribution shall not be a requirement for the dependent coverage that is offered."
SECTION 8. Section 3-32-8 NMSA 1978 (being Laws 1965, Chapter 300, Section 14-31-5) is recompiled as Section 5-20-8 NMSA 1978 and is amended to read:
"5-20-8. SECURITY FOR BONDS.--
A. The principal of and interest on any bonds issued under the authority of [Sections 14-31-1 through 14-31-13 New Mexico Statutes Annotated, 1953 Compilation] the Industrial Revenue Bond Act:
(1) shall be secured by a pledge of the revenues out of which such bonds shall be made payable;
(2) may be secured by a mortgage covering all or any part of the project from which the revenues so pledged may be derived; and
(3) may be secured by a pledge of the lease of such project.
B. The ordinance and proceedings under which [such] the bonds are authorized to be issued or any such mortgage may contain any [agreement] agreements and provisions customarily contained in instruments securing bonds, including without limiting the generality of the foregoing provisions respecting the fixing and collection of all revenues from any project covered by such proceedings or mortgage, the terms to be incorporated in the lease of [such] the project, the maintenance and insurance of [such] the project, the creation and maintenance of special funds from the revenues from [such] the project and the rights and remedies available in event of default to the bondholders or to the trustee under a mortgage, all as the governing body [shall deem] deems advisable and as [shall] are not [be] in conflict with the provisions of [Sections 14-31-1 through 14-31-13 New Mexico Statutes Annotated, 1953 Compilation; provided, however, that] the Industrial Revenue Bond Act.
C. In making any such agreements or provisions, a [municipality] local government shall not have the power to obligate itself except with respect to the project and the application of the revenues therefrom and shall not have the power to incur a pecuniary liability or a charge upon its general credit or against its taxing powers. The proceedings authorizing any bonds [hereunder] under the Industrial Revenue Bond Act and any mortgage securing [such] the bonds may provide the procedure and remedies in the event of default in payment of the principal of or the interest on [such] the bonds or in the performance of any agreement. No breach of any such agreement shall impose any pecuniary liability upon a [municipality] local government or any charge upon its general credit or against its taxing powers."
SECTION 9. Section 3-32-9 NMSA 1978 (being Laws 1965, Chapter 300, Section 14-31-6) is recompiled as Section 5-20-9 NMSA 1978 and is amended to read:
"5-20-9. REQUIREMENTS RESPECTING LEASE.--
A. Prior to the leasing of any project, the governing body must determine and find the following:
[A.] (1) the amount necessary in each year to pay the principal of and the interest on the bonds proposed to be issued to finance [such] the project; and
[B.] (2) the amount necessary to be paid each year into any reserve funds which the governing body may deem it advisable to establish in connection with the retirement of the proposed bonds and the maintenance of the project and, unless the terms under which the project is to be leased provide that the lessee shall maintain the project and carry all proper insurance with respect thereto, the estimated cost of maintaining the project in good repair and keeping it properly insured.
B. The determinations and findings of the governing body required to be made in [the preceding sentence] Subsection A of this section shall be set forth in the proceedings under which the proposed bonds are to be issued [and]. Prior to the issuance of [such] the bonds, the [municipality] local government shall lease or sell the project to a lessee or purchaser under an agreement conditioned upon completion of the project and providing for payment to the [municipality] local government of such rentals or payments as, upon the basis of such determinations and findings, will be sufficient:
(1) to pay the principal of and interest on the bonds issued to finance the project;
(2) to build up and maintain any reserve deemed by the governing body to be advisable in connection [therewith] with the project; and
(3) to pay the costs of maintaining the project in good repair and keeping it properly insured unless the agreement of lease obligates the lessee to pay for the maintenance and insurance of the project."
SECTION 10. Section 3-32-10 NMSA 1978 (being Laws 1965, Chapter 300, Section 14-31-7, as amended) is recompiled as Section 5-20-10 NMSA 1978 and is amended to read:
"5-20-10. REFUNDING BONDS.--
A. Any bonds issued [hereunder] under the Industrial Revenue Bond Act and at any time outstanding may, at any time and from time to time, be refunded by a [municipality] local government by the issuance of its refunding bonds, in such amount as the governing body may determine, to refund the principal of the bonds so to be refunded, all unpaid accrued and unaccrued interest thereon to the normal maturity date of such bonds or to selected prior redemption dates thereof, any redemption premiums, any commissions and all estimated costs incidental to the issuance of such bonds and to such refunding as may be determined by the governing body. The principal amount of any such refunding bonds may be equal to, less than or greater than the principal amount of the bonds to be so refunded. Any such refunding may be effected whether the bonds to be refunded [shall] have then matured or [shall] thereafter mature, either by sale of the refunding bonds and the application of the proceeds thereof for the payment of the bonds to be refunded thereby or by exchange of the refunding bonds for the bonds to be refunded thereby; provided that the holders of any bonds so to be refunded shall not be compelled without their consent to surrender their bonds for payment or exchange prior to the date on which they are payable or, if they are called for redemption, prior to the date on which they are by their terms subject to redemption. Any refunding bonds issued under the authority of [Sections 14-31-1 through 14-31-13 NMSA 1953] the Industrial Revenue Bond Act shall be payable solely from the revenues out of which other bonds issued under [Sections 14-31-1 through 14-31-13 NMSA 1953] that act may be payable or solely from those amounts derived from an escrow as [herein] provided in this section, including amounts derived from the investment of refunding bond proceeds and other legally available amounts also as [herein] provided in this section or from any combination of the foregoing sources, and shall be subject to the provisions contained in Section [14-31-4 NMSA 1953] 5-20-7 NMSA 1978 and may be secured in accordance with the provisions of Section [14-31-5 NMSA 1953] 5-20-8 NMSA 1978.
B. Proceeds of refunding bonds shall either be applied immediately to the retirement of the bonds being refunded or be placed in escrow in a commercial bank or trust company [which] that possesses and is exercising trust powers. Notwithstanding any provision to the contrary in Section [14-31-8 NMSA 1953] 5-20-11 NMSA 1978 or in any other statute, such escrowed proceeds may be invested in short-term securities, long-term securities or both. Except to the extent inconsistent with the express terms of [Sections 14-31-1 through 14-31-13 NMSA 1953] the Industrial Revenue Bond Act, the ordinance and other proceedings under which the bonds to be so refunded were issued, including any mortgage or trust indenture given to secure the same, shall govern the establishment of any escrow in connection therewith and the investment or reinvestment of any escrowed proceeds."
SECTION 11. Section 3-32-11 NMSA 1978 (being Laws 1965, Chapter 300, Section 14-31-8) is recompiled as Section 5-20-11 NMSA 1978 and is amended to read:
"5-20-11. USE OF PROCEEDS FROM SALE OF BONDS.--The proceeds from the sale of any bonds issued under authority of [Sections 14-31-1 through 14-31-13 New Mexico Statutes Annotated, 1953 Compilation] the Industrial Revenue Bond Act shall be applied only for the purpose for which the bonds were issued; provided, however, that any accrued interest and premiums received in any such sale shall be applied to the payment of the principal of or the interest on the bonds sold; and provided, further, that if for any reason any portion of [such] the proceeds [shall] are not [be] needed for the purpose for which the bonds were issued, then such balance of [said] the proceeds shall be applied to the payment of the principal of or the interest on [said] the bonds; and provided, further, that any portion of the proceeds from the sale of [said] the bonds or any accrued interest and premium received in any such sale may, in the event the money will not be needed or cannot be effectively used to the advantage of the [municipality] local government for the purposes [herein] provided in this section, be invested in short-term, interest-bearing securities if such investment will not interfere with the use of [such] the funds for the primary purpose as [herein] provided in this section. The cost of acquiring any project shall be deemed to include the following:
A. the actual cost of the construction of any part of a project [which] that may be constructed, including [architect's, attorney's and engineer's fee] architect, attorney and engineer fees;
B. the purchase price of any part of a project that may be acquired by purchase;
C. the actual cost of the extension of any utility to the project site and all expenses in connection with the authorization, sale and issuance of the bonds to finance [such] the acquisition; and
D. the interest on [such] the bonds for a reasonable time prior to construction, during construction and for not exceeding six months after completion of construction."
SECTION 12. Section 3-32-12 NMSA 1978 (being Laws 1965, Chapter 300, Section 14-31-9, as amended) is recompiled as Section 5-20-12 NMSA 1978 and is amended to read:
"5-20-12. NO CONTRIBUTION BY [MUNICIPALITY] LOCAL GOVERNMENT.--[No municipality] Except as otherwise provided in the Local Economic Development Act, a local government shall not have the power to pay out of its general funds or otherwise contribute any part of the costs of acquiring a project and shall not have the power to use land already owned by the [municipality] local government or in which [the municipality] it has an equity, for construction thereon of a project or any part thereof, unless the [municipality] local government is fully reimbursed for the value of the land as may be determined by a current appraisal, or unless the city leases the land at an annual rental fee of not less than five percent of the appraised value. The entire cost of acquiring [any] a project must be paid out of the proceeds from the sale of bonds issued under the authority of [Sections 14-31-1 through 14-31-13 New Mexico Statutes Annotated, 1953 Compilation] the Industrial Revenue Bond Act; provided, however, that this provision shall not be construed to prevent a [municipality] local government from accepting donations of property to be used as a part of [any] a project or money to be used for defraying any part of the cost of [any] a project."
SECTION 13. Section 3-32-13 NMSA 1978 (being Laws 1965, Chapter 300, Section 14-31-10) is recompiled as Section 5-20-13 NMSA 1978 and is amended to read:
"5-20-13. BONDS MADE LEGAL INVESTMENTS.--Bonds issued under the provisions of [Sections 14-31-1 through 14-31-13 New Mexico Statutes Annotated, 1953 Compilation] the Industrial Revenue Bond Act shall be legal investments for savings banks and insurance companies organized under the laws of this state."
SECTION 14. Section 3-32-14 NMSA 1978 (being Laws 1965, Chapter 300, Section 14-31-11) is recompiled as Section 5-20-14 NMSA 1978 and is amended to read:
"5-20-14. EXEMPTION FROM TAXATION.--The bonds authorized by [Sections 14-31-1 through 14-31-13 New Mexico Statutes Annotated, 1953 Compilation] the Industrial Revenue Bond Act and the income from [said] the bonds, all mortgages or other security instrument executed as security for [said] the bonds, all lease agreements made pursuant to the provisions [hereof] of the Industrial Revenue Bond Act and revenue derived from any lease or sale by the [municipality] local government thereof shall be exempt from all taxation by the state of New Mexico or any subdivision thereof."
SECTION 15. Section 3-32-15 NMSA 1978 (being Laws 1965, Chapter 300, Section 14-31-12) is recompiled as Section 5-20-15 NMSA 1978 and is amended to read:
"5-20-15. CONSTRUCTION OF ACT.--Neither [Sections 14-31-1 through 14-31-13 New Mexico Statutes Annotated, 1953 Compilation] the Industrial Revenue Bond Act nor anything [herein] contained in that act shall be construed as a restriction or limitation upon any powers [which] that a [municipality] local government might otherwise have under any laws of this state but shall be construed as cumulative; and [Sections 14-31-1 through 14-31-13 New Mexico Statutes Annotated, 1953 Compilation] the Industrial Revenue Bond Act shall not be construed as requiring an election by the voters of a [municipality] local government prior to the issuance of bonds [hereunder] under that act by [such municipality] the local government."
SECTION 16. Section 3-32-16 NMSA 1978 (being Laws 1965, Chapter 300, Section 14-31-13) is recompiled as Section 5-20-16 NMSA 1978 and is amended to read:
"5-20-16. NO NOTICE OR PUBLICATION REQUIRED.--No notice, consent or approval by any governmental body or public officer shall be required as a prerequisite to the sale or issuance of [any] bonds or the making of a mortgage under the authority of [Sections 14-31-1 through 14-31-13 New Mexico Statutes Annotated, 1953 Compilation] the Industrial Revenue Bond Act, except as provided in [these sections] that act."
SECTION 17. A new Section 5-20-17 NMSA 1978 is enacted to read:
"5-20-17. [NEW MATERIAL] LIBERAL INTERPRETATION.--The Industrial Revenue Bond Act shall be liberally construed to carry out its purpose."
SECTION 18. TEMPORARY PROVISION.--With respect to county industrial revenue bonds issued prior to July 1, 2017, the repeal of the provisions of Chapter 4, Article 59 NMSA 1978, as provided in Section 19 of this 2017 act, shall not be construed to impair any rights, duties or obligations arising pursuant to those provisions.
SECTION 19. REPEAL.--
A. Sections 3-32-3, 3-32-5 and 3-32-5.1 NMSA 1978 (being Laws 1967, Chapter 84, Sections 2 and 3 and Laws 1981, Chapter 45, Section 4, as amended) are repealed.
B. Sections 4-59-1 through 4-59-4 and 4-59-5 through 4-59-16 NMSA 1978 (being Laws 1975, Chapter 286, Sections 1 through 9, Laws 1992, Chapter 11, Section 2 and Laws 1975, Chapter 286, Sections 10 through 16, as amended) are repealed.
SECTION 20. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2017.
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