SENATE BILL 741
48th legislature - STATE OF NEW MEXICO - first session, 2007
INTRODUCED BY
Shannon Robinson
AN ACT
RELATING TO ECONOMIC DEVELOPMENT; AMENDING THE INDUSTRIAL REVENUE BOND ACT TO PROVIDE FOR ISSUANCE OF BONDS TO PROMOTE FILMMAKING; RECONCILING CONFLICTING AMENDMENTS TO THE SAME SECTION OF LAW BY REPEALING LAWS 2002, CHAPTER 25, SECTION 1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. 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 amended to read:
"3-32-1. 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. "municipality" means [any] a city, town or village in [the state of] New Mexico;
B. "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 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) [any] a commercial enterprise in storing, warehousing, distributing or selling products of agriculture, mining or industry but does not include [facilities] a facility designed for the sale of goods or commodities at retail or distribution to the public of electricity, gas, water or telephone or other services commonly classified as public utilities;
(3) [any] 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 primarily engaged in the sale of goods or commodities at retail;
(4) [any] 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] a vineyard or winery;
(5) [any] 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]
(6) [any] a 501(c)(3) corporation; and
(7) the production or postproduction of films, of which at least eighty percent of the employees are residents of New Mexico.
C. "governing body" means the board or body in which the legislative powers of the municipality are vested;
D. "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] service" 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. "refinance a hospital or 501(c)(3) corporation project" means the issuance of bonds by a municipality 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] a 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. "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 2. Section 3-32-4 NMSA 1978 (being Laws 1965, Chapter 300, Section 14-31-2, as amended) is amended to read:
"3-32-4. 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 to acquire, own, lease or sell projects for the purpose of promoting industry and trade other than retail trade by inducing manufacturing, industrial, filmmaking and other 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 not intended [hereby] to authorize any municipality itself to operate any manufacturing, filmmaking, industrial or commercial enterprise. [Sections 14-31-1 through 14-31-13 NMSA 1953] The Industrial Revenue Bond Act shall be liberally construed in conformity with the [said] intent set forth in this section."
Section 3. Section 3-32-8 NMSA 1978 (being Laws 1965, Chapter 300, Section 14-31-5) is amended to read:
"3-32-8. SECURITY FOR BONDS.--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 shall be secured by a pledge of the revenues out of which such bonds shall be made payable, may be secured by a mortgage covering all or any part of the project from which the revenues so pledged may be derived and may be secured by a pledge of the lease of such project or, if for a filmmaking project, by the prints, distribution or other contracts of the filmmaking enterprise. 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] the Industrial Revenue Bond Act; provided, however, that in making any such agreements or provisions, a municipality 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 or any charge upon its general credit or against its taxing powers."
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