SENATE BILL 75
52nd legislature - STATE OF NEW MEXICO - first session, 2015
INTRODUCED BY
Lee S. Cotter
AN ACT
RELATING TO FINANCE; REPEALING THE SPACEPORT AUTHORITY'S POWER TO ISSUE BONDS; LIMITING THE USE OF CERTAIN PROCEEDS OF THE COUNTY REGIONAL SPACEPORT GROSS RECEIPTS TAX.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 5-16-1 NMSA 1978 (being Laws 2006, Chapter 15, Section 1) is amended to read:
"5-16-1. SHORT TITLE.--[Sections 1 through 13 of this act] Chapter 5, Article 16 NMSA 1978 may be cited as the "Regional Spaceport District Act"."
SECTION 2. Section 5-16-5 NMSA 1978 (being Laws 2006, Chapter 15, Section 5) is amended to read:
"5-16-5. BOARD.--
A. All powers, privileges and duties vested in or imposed upon the district shall be exercised and performed by the board. The board may delegate its powers by resolution to an officer or agent of the board, with the exception of the following:
(1) adoption of board policies and procedures;
(2) initiation or continuation of legal action; and
(3) establishment of policies regarding the use of revenues. [and
(4) request to the authority to issue bonds.
B. Only an elected official may vote on resolutions regarding Paragraph (4) of Subsection A of this section.
C.] B. The board shall adopt rules to govern its conduct and provide meaningful opportunities for public input, which shall include standards and procedures for calling emergency meetings.
[D.] C. The board shall be composed of at least one director from each governmental unit that is a member of the district. A director shall be an elected official or the official's designee. A governmental unit shall not have a majority of membership on the board, unless there are three or fewer participating governmental units in the district.
[E.] D. A director of the board shall not vote on an issue when the director has a conflict of interest. A director of the board, officer of the board or employee of the board shall not:
(1) acquire a financial interest in a new or existing business venture or business property of any kind when the person believes or has reason to believe that the new financial interest will be directly affected by the official act;
(2) use confidential information acquired by virtue of the person's office or employment for the person's or another's private gain; or
(3) contract with the district without public notice and competitive bidding and full disclosure of the person's financial or other interest in the business that is party to the contract.
[F.] E. The attorney general shall investigate and prosecute, when appropriate, a complaint brought to the attorney general's attention involving a violation of Subsection [E] D of this section. Violation of the provisions of Subsection [E] D of this section by a director of the board, officer of the board or employee of the board is grounds for removal or suspension of the director or officer and dismissal, demotion or suspension of the employee.
[G.] F. In addition to all other powers conferred by the Regional Spaceport District Act, the board may:
(1) adopt bylaws;
(2) fix the time and place of meetings and the method of providing notice of the meetings;
(3) make and pass orders and resolutions necessary for the government and management of the affairs of the district and the execution of the powers vested in the district;
(4) adopt and use a seal; and
(5) appoint advisory committees and define the duties of the committees."
SECTION 3. Section 5-16-6 NMSA 1978 (being Laws 2006, Chapter 15, Section 6) is amended to read:
"5-16-6. POWERS OF THE DISTRICT.--
A. A district is a body politic and corporate. In addition to other powers granted to the district pursuant to the Regional Spaceport District Act, the district may:
(1) have perpetual existence, except as otherwise provided in the contract;
(2) sue and be sued;
(3) enter into contracts and agreements affecting the affairs of the district; and
[(4) pledge all or a portion of the revenues to the payment of bonds of the authority; and
(5)] (4) construct, in connection with the authority, a regional spaceport within the boundaries of the district.
B. After the creation of a district, the board may include property within or exclude property from the boundaries of the district in the manner provided in this section. Property shall not be included within the boundaries of the district unless it is within the boundaries of the members of the combination at the time of the inclusion. Prior to inclusion of property in or exclusion of property from the boundaries of the district, the board shall cause notice of the proposed inclusion or exclusion to be published in a newspaper of general circulation within the boundaries of the district and cause the notice to be mailed to the authority. The notice shall:
(1) describe the property to be included in or excluded from the boundaries of the district;
(2) specify the date, time and place at which the board shall hold a public hearing on the proposed inclusion or exclusion; provided that the date of the public hearing contained in the notice shall be not less than twenty days after publication of the notice; and
(3) state that persons having objections to the inclusion or exclusion may appear at the public hearing to object to the proposed inclusion or exclusion.
C. The board shall hear all objections to the proposed inclusion or exclusion of property at the time and place designated in the notice. The board, upon the affirmative vote of two-thirds of the directors, may adopt a resolution including or excluding all or a portion of the property described in the notice. Upon the adoption of the resolution, the property shall be included within or excluded from the boundaries of the district as set forth in the resolution. The board may adopt the resolution without amending the district's enabling contract. The board shall file the resolution with the authority, which shall cause the resolution to be recorded in the real estate records of each county having territory included in the boundaries of the district."
SECTION 4. Section 5-16-13 NMSA 1978 (being Laws 2006, Chapter 15, Section 13) is amended to read:
"5-16-13. USE OF REVENUE BY GOVERNMENTAL UNITS.--
A. Each governmental unit that is a county or municipality and is a member of a combination shall have enacted a municipal regional spaceport gross receipts tax or a county regional spaceport gross receipts tax prior to December 31, 2008.
B. At least seventy-five percent of the municipal regional spaceport gross receipts tax or county regional spaceport gross receipts tax revenues received by each governmental unit [must] shall be used by the district for the financing, planning, designing, engineering and construction of a regional spaceport; provided that the full amount of revenues of the county regional spaceport gross receipts tax that are received on or after July 1, 2015 pursuant to this subsection shall only be used, until the bonds are fully retired or discharged, to pay principal and interest on bonds issued prior to July 1, 2015 pursuant to the terms and conditions of the version of the Spaceport Development Act in effect on the date of issuance of those bonds or for acceleration of the payment of principal and interest on those bonds or to retire or discharge those bonds prior to their original term.
C. No more than twenty-five percent of the municipal regional spaceport gross receipts tax or county regional spaceport gross receipts tax revenues may be used by the governmental unit enacting the tax for spaceport-related projects as approved by resolution of the governmental unit."
SECTION 5. Section 7-19D-15 NMSA 1978 (being Laws 2006, Chapter 15, Section 14) is amended to read:
"7-19D-15. MUNICIPAL REGIONAL SPACEPORT GROSS RECEIPTS TAX--AUTHORITY TO IMPOSE--RATE--ELECTION REQUIRED.--
A. A majority of the members of the governing body of a municipality that desires to become a member of a regional spaceport district pursuant to the Regional Spaceport District Act shall impose by ordinance an excise tax at a rate not to exceed one-half percent of the gross receipts of a person engaging in business in the municipality for the privilege of engaging in business. A tax imposed pursuant to this section may be imposed by one or more ordinances, each imposing any number of tax rate increments, but an increment shall not be less than one-sixteenth percent of the gross receipts of a person engaging in business in the municipality, and the aggregate of all rates shall not exceed one-half percent of the gross receipts of a person engaging in business in the municipality. The tax may be referred to as the "municipal regional spaceport gross receipts tax".
B. A governing body, at the time of enacting an ordinance imposing a tax authorized in Subsection A of this section:
(1) shall dedicate a minimum of seventy-five percent of the revenue from the tax to a regional spaceport district for the financing, planning, designing, engineering and construction of a regional spaceport pursuant to the Regional Spaceport District Act; provided that the full amount of the proceeds of the revenue that are received pursuant to this paragraph on or after July 1, 2015 shall only be used, until the bonds are fully retired or discharged, to pay principal and interest on bonds issued prior to July 1, 2015 pursuant to the terms and conditions of the version of the Spaceport Development Act in effect on the date of issuance of those bonds or for acceleration of the payment of the principal and interest on those bonds or to retire or discharge those bonds prior to their original term; and
(2) may dedicate no more than twenty-five percent of the revenue for spaceport-related projects as approved by resolution of the governing body of the municipality.
C. An ordinance imposing a municipal regional spaceport gross receipts tax shall not go into effect until after an election is held and a majority of the voters of the municipality voting in the election votes in favor of imposing the tax. The governing body shall adopt a resolution calling for an election within seventy-five days of the date the ordinance is adopted on the question of imposing the tax. The question shall be submitted to the voters of the municipality as a separate question at a regular municipal election or at a special election called for that purpose by the governing body. A special municipal election shall be called, conducted and canvassed as provided in the Municipal Election Code. If a majority of the voters voting on the question approves the ordinance imposing the municipal regional spaceport gross receipts tax, the ordinance shall become effective in accordance with the provisions of the Municipal Local Option Gross Receipts Taxes Act. If the question of imposing the municipal regional spaceport gross receipts tax fails, the governing body shall not again propose the imposition of an increment of the tax for a period of one year from the date of the election.
D. Subject to the provisions of Subsection B of this section, the governing body of a municipality imposing the municipal regional spaceport gross receipts tax shall transfer a minimum of seventy-five percent of all proceeds from the tax to the regional spaceport district of which it is a member for regional spaceport purposes in accordance with the provisions of the Regional Spaceport District Act. The governing body of a municipality imposing the municipal regional spaceport gross receipts tax may retain no more than twenty-five percent of the municipal regional spaceport gross receipts tax for spaceport-related projects as approved by resolution of the governing body."
SECTION 6. Section 7-20E-25 NMSA 1978 (being Laws 2006, Chapter 15, Section 15) is amended to read:
"7-20E-25. COUNTY REGIONAL SPACEPORT GROSS RECEIPTS TAX--AUTHORITY TO IMPOSE--RATE--ELECTION REQUIRED.--
A. A majority of the members of the governing body of a county that desires to become a member of a regional spaceport district pursuant to the Regional Spaceport District Act shall impose by ordinance an excise tax at a rate not to exceed one-half percent of the gross receipts of a person engaging in business in the district area of the county for the privilege of engaging in business. A tax imposed pursuant to this section may be imposed by one or more ordinances, each imposing any number of tax rate increments, but an increment shall not be less than one-sixteenth percent of the gross receipts of a person engaging in business in the district area of the county, and the aggregate of all rates shall not exceed one-half percent of the gross receipts of a person engaging in business in the district area of the county. The tax may be referred to as the "county regional spaceport gross receipts tax".
B. A governing body, at the time of enacting an ordinance imposing the tax authorized in Subsection A of this section:
(1) shall dedicate a minimum of seventy-five percent of the proceeds of the revenue from the tax to the regional spaceport district for the financing, planning, designing and engineering and construction of a spaceport or for projects or services of the district pursuant to the Regional Spaceport District Act; provided that the full amount of the proceeds of the revenue that are received pursuant to this paragraph on or after July 1, 2015 shall only be used, until the bonds are fully retired or discharged, to pay principal and interest on bonds issued prior to July 1, 2015 pursuant to the terms and conditions of the version of the Spaceport Development Act in effect on the date of issuance of those bonds or for acceleration of the payment of principal and interest on those bonds or to retire or discharge those bonds prior to their original term; and
(2) may dedicate no more than twenty-five percent of the revenue for spaceport-related projects as approved by resolution of the governing body of the county.
C. An ordinance imposing a county regional spaceport gross receipts tax shall not go into effect until after an election is held and a majority of the voters of the district area of the county voting in the election votes in favor of imposing the tax. The governing body shall adopt an ordinance calling for an election within seventy-five days of the date the resolution is adopted on the question of imposing the tax. The question shall be submitted to the voters of the district area of the county as a separate question at a general election or at a special election called for that purpose by the governing body. A special election shall be called, conducted and canvassed substantially in the same manner as provided by law for general elections. If a majority of the voters voting on the question approves the ordinance imposing the county regional spaceport gross receipts tax, the ordinance shall become effective in accordance with the provisions of the County Local Option Gross Receipts Taxes Act. If the question of imposing the county regional spaceport gross receipts tax fails, the governing body shall not again propose the imposition of an increment of the tax for a period of one year from the date of the election.
D. Subject to the provisions of Subsection B of this section, the governing body of a county imposing a county regional spaceport gross receipts tax shall transfer a minimum of seventy-five percent of all proceeds from the tax to the regional spaceport district of which it is a member for the purposes in accordance with the provisions of the Regional Spaceport District Act. The governing body of a county imposing a county regional spaceport gross receipts tax may retain no more than twenty-five percent of the county regional spaceport gross receipts tax for spaceport-related projects as approved by the resolution of the governing body of the county.
E. As used in this section, "district area of the county" means that portion of a county that is outside the boundaries of a municipality and that is within the boundaries of a regional spaceport district of which the county is a member; provided that if no municipality within the county has imposed a municipal regional spaceport gross receipts tax, "district area of the county" may mean the area within the boundaries of the county that is within the boundaries of a regional spaceport district of which the county is a member."
SECTION 7. Section 58-31-1 NMSA 1978 (being Laws 2005, Chapter 128, Section 1) is amended to read:
"58-31-1. SHORT TITLE.--[This act] Chapter 58, Article 31 NMSA 1978 may be cited as the "Spaceport Development Act"."
SECTION 8. Section 58-31-5 NMSA 1978 (being Laws 2005, Chapter 128, Section 5, as amended) is amended to read:
"58-31-5. AUTHORITY POWERS AND DUTIES.--
A. The authority shall:
(1) hire an executive director, who shall employ the necessary professional, technical and clerical staff to enable the authority to function efficiently and shall direct the affairs and business of the authority, subject to the direction of the authority;
(2) be located within fifty miles of a southwest regional spaceport;
(3) advise the governor, the governor's staff and the New Mexico finance authority oversight committee on methods, proposals, programs and initiatives involving a southwest regional spaceport that may further stimulate space-related business and employment opportunities in New Mexico;
(4) initiate, develop, acquire, own, construct, maintain and lease space-related projects;
(5) make and execute all contracts and other instruments necessary or convenient to the exercise of its powers and duties;
(6) create programs to expand high-technology economic opportunities within New Mexico;
(7) create avenues of communication among federal government agencies, the space industry, users of space launch services and academia concerning space business;
(8) promote legislation that will further the goals of the authority and development of space business;
(9) oversee and fund production of promotional literature related to the authority's goals;
(10) identify science and technology trends that are significant to space enterprise and the state and act as a clearinghouse for space enterprise issues and information;
(11) coordinate and expedite the involvement of the state executive branch's space-related development efforts; and
(12) perform environmental, transportation, communication, land use and other technical studies necessary or advisable for projects and programs or to secure licensing by appropriate United States agencies.
B. The authority may:
(1) advise and cooperate with municipalities, counties, state agencies and organizations, appropriate federal agencies and organizations and other interested persons and groups;
(2) solicit and accept federal, state, local and private grants of funds or property and financial or other aid for the purpose of carrying out the provisions of the Spaceport Development Act;
(3) adopt rules governing the manner in which its business is transacted and the manner in which the powers of the authority are exercised and its duties performed;
(4) operate spaceport facilities, including acquisition of real property necessary for spaceport facilities and the filing of necessary documents with appropriate agencies;
(5) construct, purchase, accept donations of or lease projects located within the state;
(6) sell, lease or otherwise dispose of a project upon terms and conditions acceptable to the authority and in the best interests of the state;
[(7) issue revenue bonds and borrow money for the purpose of defraying the cost of acquiring a project by purchase or construction and of securing the payment of the bonds or repayment of a loan;
(8)] (7) enter into contracts with regional spaceport districts [and issue bonds on behalf of regional spaceport districts] for the purpose of financing the purchase, construction, renovation, equipping or furnishing of a regional spaceport or a spaceport-related project;
[(9)] (8) refinance a project;
[(10)] (9) contract with any competent private or public organization or individual to assist in the fulfillment of its duties;
[(11)] (10) fix, alter, charge and collect tolls, fees or rentals and impose any other charges for the use of or for services rendered by any authority facility, program or service; and
[(12)] (11) contract with regional spaceport districts to receive municipal spaceport gross receipts tax and county regional spaceport gross receipts tax revenues; provided that revenues received pursuant to this paragraph on or after July 1, 2015 shall only be used, until the bonds are fully retired or discharged, to pay principal and interest on bonds issued prior to July 1, 2015 pursuant to the terms and conditions of the version of the Spaceport Development Act in effect on the date of issuance of those bonds or for acceleration of the payment of principal and interest on those bonds or to retire or discharge those bonds prior to their original term.
C. The authority shall not:
(1) incur debt as a general obligation of the state or pledge the full faith and credit of the state to repay debt; or
(2) expend funds or incur debt for the improvement, maintenance, repair or addition to property unless it is owned by the authority, the state or a political subdivision of the state."
SECTION 9. REPEAL.--Sections 58-31-6 through 58-31-16 NMSA 1978 (being Laws 2005, Chapter 128, Sections 6 through 16, as amended) are repealed.
SECTION 10. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2015.
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