0001| HOUSE BILL 334
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0002| 42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION,
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0003| 1996
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0004| INTRODUCED BY
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0005| JERRY W. SANDEL
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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|
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0011| AN ACT
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0012| RELATING TO BONDS; DELETING THE REQUIREMENT THAT BID NOTICE FOR
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0013| SALE OF MUNICIPAL BONDS BE MAILED TO THE STATE INVESTMENT
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0014| COUNCIL AND THE STATE TREASURER.
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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. Section 6-15-5 NMSA 1978 (being Laws 1929,
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0018| Chapter 201, Section 3, as amended) is amended to read:
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0019| "6-15-5. SALE OF BONDS.--
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0020| A. Except as provided in Subsection B of this
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0021| section, before any bonds issued by a municipal corporation
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0022| [shall be] are offered for sale, the corporate authorities
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0023| issuing the bonds shall designate the maximum rate of interest
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0024| the bonds shall bear and shall designate the maximum net
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0025| effective interest rate which shall not exceed the maximum
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0001| permitted by the Public Securities Act [as hereafter amended
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and supplemented]. All the bonds shall be sold at public sale
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0003| and a notice calling for bids for the purchase of the bonds
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0004| shall be published once a week for two consecutive weeks in a
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0005| newspaper having local circulation. The notice shall specify a
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0006| place and designate a day and hour subsequent to the date of the
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0007| publication when sealed bids shall be received and publicly
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0008| opened for the purchase of the bonds. [A copy of the notice
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calling for bids shall, at least two weeks prior to the date
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fixed for the sale, be mailed to the state treasurer and the
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state investment council.] The notice shall specify the
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0012| maximum rate of interest the bonds shall bear, the maximum net
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0013| effective interest rate permitted for the bonds and the maximum
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0014| discount if a discount is allowed by the governing body and
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0015| shall require bidders to submit a bid specifying the lowest rate
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0016| or rates of interest and any premium or discount if allowed by
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0017| the governing body at, above or below par at which the bidder
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0018| will purchase the bonds. The bonds shall be sold to the bidder
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0019| making the best bid, subject to the right of the governing body
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0020| to reject any and all bids and readvertise. All bids shall be
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0021| sealed and, except the bid of New Mexico if one is received,
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0022| shall be accompanied by a deposit of not less than two percent
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0023| of the principal amount of the bonds, either in cash or by
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0024| cashier's or treasurer's check of, or by certified check drawn
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0025| on, a solvent commercial bank or trust company in the United
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0001| States, which deposit shall be returned if the bid is not
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0002| accepted. If the successful bidder [fails or neglects to]
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0003| does not complete the purchase of the bonds within thirty days
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0004| following the acceptance of his bid or within ten days after the
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0005| bonds are made ready and are offered by the municipal corpo-
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0006| ration for delivery, whichever is later, the amount of his
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0007| deposit shall be forfeited to the municipal corporation issuing
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0008| the bonds, and, in that event, the governing body may accept the
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0009| bid of the [one] bidder making the next best bid. If all
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0010| bids are rejected, the governing body shall readvertise the
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0011| bonds for sale in the same manner as for the original
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0012| advertisement. If there are two or more equal bids and the bids
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0013| are the best bids received, the governing body shall determine
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0014| which bid shall be accepted [provided that the].
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0015| B. Bonds [or any part thereof] issued by a
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0016| municipal corporation may be sold to the state at private sale
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0017| without advertisement.
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0018| C. Except as provided in this section, bonds to be
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0019| issued by a municipal corporation for various purposes may be
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0020| sold and issued as a single combined issue even though they may
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0021| have been authorized by separate votes at an election or
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0022| elections. Bonds authorized by any city, town or village for
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0023| the construction or purchase of a system for supplying water
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0024| [or of], a sanitary sewer system or [of] a storm sewer
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0025| system may be combined with each other and sold and issued as a
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0001| single issue but may not be combined with bonds to be issued for
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0002| any other purpose [which] that may be subject to the debt
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0003| limitation of [Section 13 of] Article 9, Section 13 of the
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0004| constitution of New Mexico."
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0005| Section 2. EFFECTIVE DATE.--The effective date of the
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0006| provisions of this act is July 1, 1996.
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0007| - 4 - State of New Mexico
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0008| House of Representatives
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0009|
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0010| FORTY-SECOND LEGISLATURE
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0011| SECOND SESSION, 1996
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0012|
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0013|
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0014| February 2, 1996
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0015|
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0016|
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0017| Mr. Speaker:
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0018|
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0019| Your TAXATION AND REVENUE COMMITTEE, to whom has
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0020| been referred
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0021|
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0022| HOUSE BILL 334
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0023|
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0024| has had it under consideration and reports same with
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0025| recommendation that it DO PASS.
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0001|
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0002| Respectfully submitted,
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0003|
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0004|
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0005|
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0006|
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0007| Jerry W. Sandel, Chairman
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0008|
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0009|
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0010| Adopted Not Adopted
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0011|
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0012| (Chief Clerk) (Chief Clerk)
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0013|
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0014| Date
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0015|
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0016| The roll call vote was 10 For 0 Against
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0017| Yes: 10
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0018| Excused: Gallegos, Gonzales, Lujan
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0019| Absent: None
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0020|
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0021|
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0022|
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0023| H0334TR1
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0024|
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0025| FORTY-SECOND LEGISLATURE
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0001| SECOND SESSION, 1996
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0002|
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0003|
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0004| February 12, 1996
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0005|
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0006| Mr. President:
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0007|
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0008| Your WAYS AND MEANS COMMITTEE, to whom has been
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0009| referred
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0010|
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0011| HOUSE BILL 334
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0012|
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0013| has had it under consideration and reports same with
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0014| recommendation that it DO PASS.
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0015|
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0016| Respectfully submitted,
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0017|
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0018|
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0019|
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0020| __________________________________
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0021| TITO D. CHAVEZ, Chairman
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0022|
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0023|
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0024|
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0025| Adopted_______________________ Not Adopted_______________________
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0001| (Chief Clerk) (Chief Clerk)
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0002|
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0003|
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0004|
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0005| Date ________________________
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0006|
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0007|
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0008| The roll call vote was 5 For 0 Against
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0009| Yes: 5
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0010| No: 0
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0011| Excused: Campos, Jennings, Romero
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0012| Absent: None
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0013|
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0014|
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0015| H0334WM1
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0016|
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