HOUSE FLOOR SUBSTITUTE FOR

HOUSE BILL 478

53rd legislature - STATE OF NEW MEXICO - first session, 2017

AN ACT

RELATING TO METROPOLITAN REDEVELOPMENT; AMENDING THE METROPOLITAN REDEVELOPMENT CODE; PROVIDING COUNTIES WITH POWERS AND DUTIES; REPLACING THE TERM "MUNICIPALITY" WITH THE TERM "LOCAL GOVERNMENT"; MAKING CONFORMING AND CLARIFYING CHANGES.

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

     SECTION 1. Section 3-60A-1 NMSA 1978 (being Laws 1979, Chapter 391, Section 1) is amended to read:

     "3-60A-1. SHORT TITLE.--[This act] Chapter 3, Article 60A NMSA 1978 may be cited as the "Metropolitan Redevelopment Code"."

     SECTION 2. Section 3-60A-2 NMSA 1978 (being Laws 1979, Chapter 391, Section 2, as amended by Laws 2007, Chapter 329, Section 3 and by Laws 2007, Chapter 330, Section 3) is amended to read:

     "3-60A-2. FINDINGS AND DECLARATIONS OF NECESSITY.--

          A. It is found and declared that there exist in [municipalities of] the state slum areas and blighted areas that constitute a serious and growing menace, injurious to the public health, safety, morals and welfare of the residents of the state; that the existence of these areas contributes substantially to the spread of disease and crime, constitutes an economic and social burden, substantially impairs or arrests the sound and orderly development of [municipalities] many areas of the state and retards the maintenance and expansion of necessary housing accommodations; that economic and commercial activities are lessened in those areas by the slum or blighted conditions, and the effects of these conditions include less employment in the area [and municipality], lower property values, less gross receipts tax revenue [for the state and municipalities] and reduces the use of buildings, residential dwellings and other facilities in the area that the prevention and elimination of slum areas and blighted areas and the prevention and elimination of conditions that impair [the] sound and orderly development [of municipalities] is a matter of state policy and concern in order that the state [and its municipalities] shall not continue to be endangered by these areas that contribute little to the tax income of the state and its [municipalities] local governments and that consume an excessive proportion of its revenues because of the extra services required for police, fire, accident, hospitalization or other forms of public protection, services and facilities.

          B. Certain slum areas and blighted areas or portions thereof may require land acquisition and clearance by [the municipality] local government, since prevailing conditions may make impracticable their reclamation or development; other areas or portions of the slum or blighted area may be suitable for conservation or rehabilitation efforts and the conditions and evils enumerated in Subsection A of this section may be eliminated, remedied or prevented by those efforts; and to the extent feasible, salvageable slum and blighted areas should be conserved and rehabilitated through voluntary action, the regulatory process and, when necessary, by government assistance.

          C. The powers conferred by the Metropolitan Redevelopment Code regarding the use of public money are for public uses or purposes for which public money may be expended. The individual benefits accruing to persons as the result of the powers conferred by the Metropolitan Redevelopment Code and projects conducted in accordance with its provisions are found and declared to be incidental to the objectives of that code and are far outweighed by the benefit to the public as a whole. Activities authorized and powers granted by the Metropolitan Redevelopment Code are hereby declared not to result in a donation or aid to any person, association or public or private organization or enterprise. The necessity for these provisions and the power is declared to be in the public interest as a matter of legislative determination.

          [D. The legislature finds that the problems of the large metropolitan areas are unique in this state because of the size and magnitude of the problems when such large numbers of people are affected. The legislature further finds and declares that the strategies and methods for solving these problems in the large metropolitan areas differ from those in the smaller cities and towns and villages of the state, and it is necessary to authorize those home rule metropolitan areas additional powers and flexibility because of the nature and size of their problems and because the governments of such metropolitan areas have sufficient staff to meet and deal with those problems. Further, these authorizations are merely explanations of the powers of home rule communities in these metropolitan areas that can be exercised under home rule authority notwithstanding any limitations contained in the Metropolitan Redevelopment Code.]"

     SECTION 3. Section 3-60A-3 NMSA 1978 (being Laws 1979, Chapter 391, Section 4, as amended by Laws 2007, Chapter 329, Section 4 and by Laws 2007, Chapter 330, Section 4) is amended to read:

     "3-60A-3. LEGISLATIVE INTENT.--

          A. It is the intent of the legislature by the passage of the Metropolitan Redevelopment Code to authorize [municipalities] local governments to acquire, own, lease, improve and dispose of properties in a designated metropolitan redevelopment area to the end that such [municipalities] local governments may be able to promote industry and develop trade or other economic activity by inducing profit or nonprofit corporations, federal governmental offices, hospitals and manufacturing, industrial, commercial or business enterprises to locate, expand or remain in such area, to mitigate the serious threat of extensive unemployment in a metropolitan redevelopment area and to secure and maintain a balanced and stable economy in an area declared to be a slum or blighted area.

          B. It is the further intent of the legislature to authorize [municipalities] local governments to acquire, own, lease, improve and dispose of properties so that adequate medical care, residential housing and facilities for the disposal of sewage and solid waste may be provided; and industrial, manufacturing, commercial or business activities may be begun or expanded in these areas; furnishing water, energy and gas may be provided; more adequate facilities for sports events and activities and recreation activities, conventions and trade shows may be provided; more parking facilities or storage or training facilities may be provided; and more adequate research, product-testing and administrative facilities may be provided, all of which promote the public health, welfare, safety, convenience and prosperity.

          C. It is, therefore, the intention of the legislature to vest [municipalities] local governments with all powers, other than the power of eminent domain, that may be necessary to enable them to accomplish such purposes, which powers shall in all respects be exercised for the benefit of the inhabitants of this state and [municipalities] within the jurisdiction of the local governments of the state for the promotion of their health, safety, welfare, convenience and prosperity.

          D. It is not intended by the Metropolitan Redevelopment Code to authorize any [municipality] local government to operate any manufacturing, industrial, commercial or business enterprise or any research, product-testing or administrative facilities of such enterprise. Nor is it the intent of that code to prohibit the operation [by a municipality] of residential housing facilities, health care facilities, sewage or solid waste disposal facilities or the furnishing of water, sports or recreation facilities, convention or trade show facilities, airports, public transportation facilities or operations, parking facilities or storage or training facilities by any [municipality] local government."

     SECTION 4. Section 3-60A-4 NMSA 1978 (being Laws 1979, Chapter 391, Section 4, as amended) is amended to read:

     "3-60A-4. DEFINITIONS.--As used in the Metropolitan Redevelopment Code:

          A. "public body" means a [municipality] local government, board, commission, authority, district or [any] other political subdivision or public body of the state;

          [B. "local governing body" means the city council, or city commission of a city, the board of trustees of a town or village; the council of an incorporated county; or the board of county commissioners of an H class county;

          C.] B. "mayor" means [the mayor or the chairman of the city commission or other officer or body having] the individual, including a chair or officer of a governing body, charged with the duties customarily imposed on the head of a [municipality] local government;

          [D. "municipality"] C. "local government" means [any] an incorporated city, town or village, whether incorporated under general act, special act or special charter, [an incorporated county] or [an H class] a county or, when the context requires, the governing body of an incorporated city, town or village or a county;

          [E.] D. "clerk" means the clerk or other official of [the municipality] a local government who is the chief custodian of the official records of the [municipality] local government;

          [F.] E. "federal government" [includes] means the United States of America or [any] an agency or instrumentality, corporate or otherwise, of the United States;

          [G. "state" means the state of New Mexico;

          H.] F. "slum area" means an area within the area of operation in which there are numerous residential or nonresidential buildings, improvements and structures [whether residential or nonresidential, which, by reason of its dilapidation, deterioration, age, obsolescence] that are dilapidated, deteriorated, aged or obsolete or that have inadequate provision for ventilation, light, air or sanitation or the area lacks open spaces or has a high density of population or overcrowding or [the existence of] there exist in the area conditions that endanger life or property by fire or other causes, and the area is conducive to ill health, transmission of disease, infant mortality, juvenile delinquency or crime and is detrimental to the public health, safety, morals or welfare;

          [I.] G. "blighted area" means an area within the area of operation other than a slum area that [because of the presence of a substantial number of deteriorated or deteriorating structures, predominance of defective or inadequate street layout, faulty lot layout in relation to size, adequacy, accessibility or usefulness, insanitary or unsafe conditions, deterioration of site or other improvements, diversity of ownership, tax or special assessment delinquency exceeding the fair value of the land, defective or unusual conditions of title, improper subdivision or lack of adequate housing facilities in the area or obsolete or impractical planning and platting or an area where a significant number of commercial or mercantile businesses have closed or significantly reduced their operations due to the economic losses or loss of profit due to operating in the area, low levels of commercial or industrial activity or redevelopment or any combination of such factors] substantially impairs or arrests the sound growth and economic health and well-being [of a municipality] within the jurisdiction of a local government or a locale within [a municipality] the jurisdiction of a local government because of the presence of a substantial number of deteriorated or deteriorating structures; a predominance of defective or inadequate street layout; faulty lot layout in relation to size, adequacy, accessibility or usefulness; insanitary or unsafe conditions; deterioration of site or other improvements; diversity of ownership; tax or special assessment delinquency exceeding the fair value of the land; defective or unusual conditions of title; improper subdivision; lack of adequate housing facilities in the area; or obsolete or impractical planning and platting or an area where a significant number of commercial or mercantile businesses have closed or significantly reduced their operations due to the economic losses or loss of profit due to operating in the area, low levels of commercial or industrial activity or redevelopment or any combination of such factors; or an area that retards the provisions of housing accommodations or constitutes an economic or social burden and is a menace to the public health, safety, morals or welfare in its present condition and use;

          [J.] H. "metropolitan redevelopment project" or "project" means an activity, undertaking or series of activities or undertakings designed to eliminate slums or blighted areas in areas designated as metropolitan redevelopment areas and [that] the activity or undertaking conforms to an approved plan for the area for slum clearance and redevelopment, rehabilitation and conservation;

          [K.] I. "slum clearance and redevelopment" means the use of those powers authorized by the Metropolitan Redevelopment Code [for the purpose of eliminating] to eliminate slum areas and [undertaking] undertake activities authorized by the Metropolitan Redevelopment Code to rejuvenate or revitalize those areas so that the conditions that caused those areas to be designated slum areas are eliminated;

          [L.] J. "rehabilitation" or "conservation" means the restoration and renewal of a slum or blighted area or portion thereof in accordance with [any] an approved plan by use of powers granted by the Metropolitan Redevelopment Code;

          [M.] K. "metropolitan redevelopment area" means a slum area or a blighted area or a combination thereof that the local [governing body] government so finds and declares and designates as appropriate for a metropolitan redevelopment project;

          [N.] L. "metropolitan redevelopment plan" means a plan, as it exists from time to time, for one or more metropolitan redevelopment areas or for a metropolitan redevelopment project, which plan shall:

                (1) seek to eliminate the problems created by a slum area or blighted area;

                (2) conform to the general plan for the [municipality] local government as a whole; and

                (3) be sufficient to indicate the proposed activities to be carried out in the area, including [but not limited to] any proposals for land acquisition; proposals for demolition and removal of structures; redevelopment; proposals for improvements, rehabilitation and conservation; zoning and planning changes; land uses, maximum densities, building restrictions and requirements; and the plan's relationship to definite local objectives respecting land uses, improved traffic patterns and controls, public transportation, public utilities, recreational and community facilities, housing facilities, commercial activities or enterprises, industrial or manufacturing use and other public improvements;

          [O.] M. "real property" includes all lands, including improvements and fixtures thereon, and property of any nature appurtenant thereto or used in connection therewith and every estate, interest, right and use, legal or equitable, therein, including terms for years and liens by way of judgment, mortgage or otherwise;

          [P.] N. "bonds" means any bonds, including refunding bonds, notes, interim certificates, certification of indebtedness, debentures, metropolitan redevelopment bonds or other securities evidencing an obligation and issued under the provisions of the Metropolitan Redevelopment Code or other obligations;

          [Q.] O. "obligee" includes [any] a bondholder, agent or trustee for [any] a bondholder or lessor demising to the [municipality] local government property used in connection with a metropolitan redevelopment project or any assignee or assignees of such lessor's interest or any part thereof;

          [R.] P. "person" means [any] an individual, firm, partnership, corporation, company, association, joint stock association or body politic or the state or any political subdivision thereof and shall further include any trustee, receiver, assignee or other person acting in a similar representative capacity;

          [S.] Q. "area of operation" means [the] an area within [the corporate limits of the municipality and the area outside of the corporate limits but within five miles of such limits or otherwise on municipally owned property wherever located] a local government's jurisdiction, except that it shall not include [any] an area that lies within the [territorial boundaries] jurisdiction of another [municipality] local government unless an ordinance has been adopted by [the governing body of] the other [municipality] local government declaring a need therefor;

          [T.] R. "board" or "commission" means a board, commission, department, division, office, body or other unit of [the municipality] a local government designated by the local [governing body] government to perform functions authorized by the Metropolitan Redevelopment Code as directed by the local [governing body] government; [and

          U.] S. "public officer" means any person who is in charge of any department or branch of government of the [municipality] local government; and

          T. "fair value" means the negotiated price or value of an asset or liability agreed upon by a local government and a private entity."

     SECTION 5. Section 3-60A-6 NMSA 1978 (being Laws 1979, Chapter 391, Section 6) is amended to read:

     "3-60A-6. USE OF PRIVATE ENTERPRISE AND PUBLIC POWERS.--A [municipality] local government, to the greatest feasible extent, shall afford maximum opportunity for the rehabilitation or redevelopment of the metropolitan redevelopment areas by private enterprise. A [municipality] local government shall give consideration to this objective in exercising its powers provided by the Redevelopment Law, including the approval of metropolitan redevelopment plans consistent with the general plan for the [municipality] local government; the exercise of its zoning powers; the enforcement of other laws, codes and regulations relating to the use of land and the use and occupancy of buildings and improvements; [to] the disposition of any property acquired; and the provision of necessary public improvements."

     SECTION 6. Section 3-60A-7 NMSA 1978 (being Laws 1979, Chapter 391, Section 7) is amended to read:

     "3-60A-7. FINDING OF NECESSITY BY LOCAL GOVERNMENT.--No [municipality] local government shall exercise any of the powers conferred upon [municipalities] local governments by the Redevelopment Law until [after its local governing body shall have] the local government has adopted a resolution finding that:

          A. one or more slum areas or blighted areas exist in the [municipality] local government's jurisdiction; and

          B. the rehabilitation, conservation, slum clearance, redevelopment or development, or a combination thereof, of and in such area [or areas] is necessary in the interest of the public health, safety, morals or welfare of the residents of the [municipality] local government's jurisdiction."

     SECTION 7. Section 3-60A-8 NMSA 1978 (being Laws 1979, Chapter 391, Section 8) is amended to read:

     "3-60A-8. DESIGNATION OF A METROPOLITAN REDEVELOPMENT AREA.--

          A. A [municipality] local government shall not prepare a metropolitan redevelopment plan for an area unless the [governing body] local government has, by resolution, determined the area to be a slum area or a blighted area or a combination thereof and designated the area as appropriate for a metropolitan redevelopment project, which resolution may be adopted only after the [governing body shall have] local government has caused to be published in a newspaper of general circulation within the area of operation of the [municipality] local government a notice [which shall contain] that contains a general description of the area and the date, time and place where the [governing body] local government shall hold a public hearing to consider the resolution and a notice that any interested party may appear and speak to the issue of the adoption of the resolution.

          B. [Such] Notice shall be published at least twice, and the last publication shall be not less than twenty days before the hearing. The owner of any real property affected by the resolution [shall have] has the right to file in the district court of the county within which the [municipality] local government is located, within twenty days after the adoption of the resolution, an action to set aside the determination made by the [governing body of the municipality] local government.

          C. A [municipality] local government shall not acquire real property for a metropolitan redevelopment project unless the local [governing body] government has approved a metropolitan redevelopment plan relating to the metropolitan redevelopment area in which the real property is located."

     SECTION 8. Section 3-60A-9 NMSA 1978 (being Laws 1979, Chapter 391, Section 9) is amended to read:

     "3-60A-9. PREPARATION OF A METROPOLITAN REDEVELOPMENT PLAN.--

          A. When a [municipality] local government has complied with the provisions of the Redevelopment Law concerning public hearing and designation of an area as a metropolitan redevelopment area, it may prepare or cause to be prepared a metropolitan redevelopment plan; however, prior to final consideration of the plan by the local [governing body] government, the plan shall be the subject of at least one public hearing held by the mayor or [his] the mayor's designee or the [municipal] local government's planning commission, at which time comments from the public as a whole can be gathered and considered by the [municipality] local government in its preparation of the final plan. The local [governing body] government may hold a public hearing for purposes of approval of the proposed plan, as provided in Subsection B of this section, only after the hearing required by this subsection.

          B. The local [governing body] government shall hold a public hearing on a metropolitan redevelopment plan or substantial modification of an approved plan after public notice [thereof] by publication in a newspaper having a general circulation in the area of operation of the [municipality] local government. The notice shall describe the time, date, place and purpose of the hearing, shall generally identify the area covered by the plan and shall outline the general scope of the metropolitan redevelopment project under consideration. Prior to the public hearing on this matter, notice of the public hearing shall be mailed by first class mail to the owners of real property in the metropolitan redevelopment area. The mailing shall be to the owner's address as shown on the records of the county treasurer. If the notice by first class mail to the owner is returned undelivered, the [municipality] local government shall attempt to discover the owner's most recent address and shall remail the notice by certified mail, return receipt requested, to the address.

          C. Following the public hearing, the local [governing body] government may approve a metropolitan redevelopment plan if it finds that:

                (1) the proposed activities will aid in the elimination or prevention of slum or blight or the conditions [which] that lead to the development of slum or blight;

                (2) a feasible method is included in the plan to provide individuals and families who occupy residential dwellings in the metropolitan redevelopment area and who may be displaced by the proposed activities with decent, safe and sanitary dwelling accommodations within their means and without undue hardship to such individuals and families;

                (3) the plan conforms to the general plan for the [municipality as a whole] local government; and

                (4) the plan affords maximum opportunity consistent with the needs of the community for the rehabilitation or redevelopment of the area by private enterprise or persons and the objectives of the plan justify the proposed activities as public purposes and needs.

          D. A metropolitan redevelopment plan may be modified at any time; however, if the plan is modified after the lease or sale by the [municipality] local government of real property in the project area, the modification shall be subject to any rights at law or in equity a lessee or purchaser or [his] the lessee's or purchaser's successors in interest may be entitled to assert. Any proposed modification [which] that will substantially change the plan as previously approved by the local [governing body] government shall be subject to the requirements of this section, including the requirement of a public hearing, before it may be approved."

    SECTION 9. Section 3-60A-10 NMSA 1978 (being Laws 1979, Chapter 391, Section 10, as amended by Laws 2007, Chapter 329, Section 5 and by Laws 2007, Chapter 330, Section 5) is amended to read:

    "3-60A-10. POWERS OF [MUNICIPALITY] LOCAL GOVERNMENT.--A [municipality] local government shall have all the powers, other than the power of eminent domain, necessary or convenient to carry out and effectuate the purposes and provisions of the Metropolitan Redevelopment Code, including [but not necessarily limited to] the following powers:

         A. to undertake and carry out metropolitan redevelopment projects within its area of operation, including clearance and redevelopment, rehabilitation, conservation and development activities and programs; to make, enter into and execute contracts and other agreements and instruments necessary or convenient to the exercise of its powers under the Redevelopment Law; and to disseminate information regarding slum clearance, prevention of blight and the metropolitan redevelopment projects and areas;

         B. to provide, arrange or contract for the furnishing or repair by a public or private person or agency for services, privileges, works, streets, roads, public utilities, public buildings or other facilities for or in connection with a metropolitan redevelopment project; to, within its area of operation, install, acquire, construct, reconstruct, remodel, rehabilitate, maintain and operate streets, utilities, parks, buildings, playgrounds and public buildings, including but not limited to parking facilities, transportation centers, public safety buildings and other public improvements or facilities or improvements for public purposes, as may be required by the [municipality] local government, the state or a political subdivision of the state; to agree to conditions that it may deem reasonable and appropriate that are attached to federal financial assistance and imposed pursuant to federal law, including conditions relating to the determination of prevailing salaries or wages or compliance with federal and state labor standards, compliance with federal property acquisition policy and the provision of relocation assistance in accordance with federal law in the undertaking or carrying out of a metropolitan redevelopment project; and to include in a contract let in connection with the project provisions to fulfill these conditions as it may deem reasonable and appropriate; provided, however, that all purchases of personal property shall be in accordance with the Procurement Code;

         C. within its area of operation, to inspect any building or property in a metropolitan redevelopment area in order to make surveys, appraisals, soundings or test borings and to obtain an order for this purpose from a court of competent jurisdiction in the event inspection is denied by the property owner or occupant; to acquire, by purchase, lease, option, gift, grant, bequest, devise or otherwise, any real property or personal property for its administrative or project purposes, together with any improvements thereon; to hold, improve, clear or prepare for redevelopment any such property; to mortgage, pledge, hypothecate or otherwise encumber or dispose of any real property; to insure or provide for the insurance of real or personal property or operations of the [municipality] local government against risks or hazards, including the power to pay premiums on that insurance; and to enter into contracts necessary to effectuate the purposes of the Metropolitan Redevelopment Code;

         D. to invest metropolitan redevelopment project funds held in reserve, sinking funds or other project funds that are not required for immediate disbursement in property or securities in which [municipalities] local governments may legally invest funds subject to their control; to redeem bonds as have been issued pursuant to the Metropolitan Redevelopment Code at the redemption price established in the bonds or to purchase the bonds at less than redemption price. Bonds so redeemed or purchased shall be canceled;

         E. to borrow or lend money subject to those procedures and limitations as may be provided in the constitution of New Mexico or [the Municipal Code] statutes and to apply for and accept advances, loans, grants, contributions and other forms of financial assistance from the federal government, the state, the county or other public body or from sources, public or private, for the purposes of the Metropolitan Redevelopment Code; and to give security as may be required and subject to the provisions and limitations of general law except as may otherwise be provided by the Redevelopment Law and to enter into and carry out contracts in connection with that law. A [municipality] local government may include in a contract for financial assistance with the federal government for a metropolitan redevelopment project conditions imposed pursuant to federal law that the [municipality] local government may deem reasonable or appropriate and that are not inconsistent with the purposes of the Metropolitan Redevelopment Code;

         F. within its area of operation, to make plans necessary for the carrying out of the purposes of the Metropolitan Redevelopment Code and to contract with any person, public or private, in making and carrying out such plans and to adopt or approve, modify and amend the plans. The plans may include without limitation:

             (1) a general plan for redevelopment of the metropolitan area as a whole;

             (2) redevelopment plans for specific areas;

             (3) plans for programs of voluntary or assisted repair and rehabilitation of buildings and improvements;

             (4) plans for the enforcement of state and local laws, codes and regulations relating to the use of land and the use and occupancy of buildings and improvements and to the compulsory repair, rehabilitation, demolition or removal of buildings and improvements; and

             (5) appraisals, title searches, surveys, studies and other preliminary plans and work necessary to prepare for the undertaking of metropolitan redevelopment projects;

         G. to develop, test and report methods and techniques and carry out demonstrations and other activities for the prevention and elimination of slums and [urban] blight and to pay for, accept and use grants of funds from the federal government for those purposes;

         H. to prepare plans for the relocation of families displaced from a metropolitan redevelopment area to the extent essential for acquiring possession of and clearing the area or its parts or permit the carrying out of the metropolitan redevelopment project;

         I. to appropriate under existing authority the funds and make expenditures necessary to carry out the purposes of the Metropolitan Redevelopment Code and under existing authority to levy taxes and assessments for such purposes; to close, vacate, plan or replan streets, roads, sidewalks, ways or other places; in accordance with applicable law or ordinances, to plan or replan, zone or rezone any part [of the municipality] within the jurisdiction of the local government or make exceptions from building regulations; and to enter into agreements with a metropolitan redevelopment agency vested with metropolitan redevelopment project powers, which agreements may extend over any period, notwithstanding any provision or rule of law to the contrary, respecting action to be taken by the [municipality] local government pursuant to the powers granted by the Redevelopment Law;

         J. within its area of operation, to organize, coordinate and direct the administration of the provisions of the Redevelopment Law as they apply to the [municipality] local government in order that the objective of remedying slum areas and blighted areas and preventing the causes of those areas within the [municipality] jurisdiction of the local government may be most effectively promoted and achieved and to establish any new office of the [municipality] local government or to reorganize existing offices as necessary;

         K. to acquire real property that is appropriate for the preservation or restoration of historic sites; the beautification of urban land; the conservation of open spaces, natural resources and scenic areas; or the provision of recreational opportunities; or that is to be used for public purposes;

         L. to engage in the following activities as part of a metropolitan redevelopment project:

             (1) acquisition, construction, reconstruction or installation of public works, facilities and site or other improvements, including but not limited to neighborhood facilities, senior citizen centers, historic properties, utilities, streets, street lights, water and sewer facilities, including connections for residential users, foundations and platforms for air-rights sites, pedestrian malls and walkways, parks, playgrounds and other recreation facilities, flood and drainage facilities, parking facilities, solid waste disposal facilities and fire protection or health facilities that serve designated areas;

             (2) special projects directed to the removal of materials and architectural barriers that restrict the mobility and accessibility of elderly and disabled persons;

             (3) provision of public services in the metropolitan redevelopment area that are not otherwise available in the area, including [but not limited to] the provisions of public services directed to the employment, economic development, crime prevention, child care, health, drug abuse, welfare or recreation needs of the people who reside in the metropolitan redevelopment area;

             (4) payment of the nonfederal share of any federal grant-in-aid program to the [municipality] local government that will be a part of a metropolitan redevelopment project;

             (5) if federal funds are used in the project to provide for payment of relocation costs and assistance to individuals, families, businesses, organizations and farm operations displaced as a direct result of a metropolitan redevelopment project in accordance with applicable law governing such payment;

             (6) payment of reasonable administrative costs and carrying charges related to the planning and execution of plans and projects;

             (7) economic and marketing studies to determine the economic condition of an area and to determine the viability of certain economic ventures proposed for the metropolitan redevelopment area;

             (8) issuance of bonds, grants or loans as authorized by the Metropolitan Redevelopment Code in accordance with the requirements of that code; and

             (9) grants to nonprofit corporations, local development corporations or entities organized under Section 301 (d) of the federal Small Business Investment Act of 1958 for the purposes of carrying out the provisions of the Metropolitan Redevelopment Code;

         M. if payments are to be made by the [municipality] local government or metropolitan redevelopment agency under the terms of a contract for reconstruction or rehabilitation of private property, payments shall be made from a special fund created for that purpose and shall not be paid directly to the property owner but shall instead be paid to the contractor by the [municipality] local government or agency from such fund upon proper authorization of the property owner and notification that the terms of the contract have been fulfilled. However, those rehabilitation contracts shall be between the property owner and the contractor after a sealed bidding procedure and award of contract approved by the [municipality] local government has taken place;

         N. in a metropolitan redevelopment project or rehabilitation or conservation undertaking or activity, to exercise the following powers in one or more metropolitan redevelopment areas to include the elimination and prevention of the development or spread of slums or blight and may involve slum clearance and redevelopment in that area or rehabilitation or conservation in that area or any combination or part of those areas in accordance with a metropolitan redevelopment plan and for undertakings or activities of a [municipality] local government in a metropolitan redevelopment area to eliminate the conditions that caused an area to be so designated and may include the following:

             (1) acquisition of real property within the metropolitan redevelopment area pursuant to any powers and for purposes enumerated in the Metropolitan Redevelopment Code;

             (2) clearing the land, grading the land and replatting the land in accordance with the metropolitan redevelopment plan; installation, construction or reconstruction of roads, streets, gutters, sidewalks, storm drainage facilities, water lines or water supply installations, sewer lines and sewage disposal installations, steam, gas and electric lines and installations, airport facilities and construction of any other needed public facilities or buildings whether on or off the site if deemed necessary by the local [governing body] government to prepare the land in the metropolitan redevelopment area for residential, commercial, industrial and public use in accordance with the metropolitan redevelopment plan; and

             (3) making the land available for development by private enterprise or public agencies, including sale, initial leasing, leasing or retention by the [municipality] local government itself, at its fair market value for uses in accordance with the metropolitan redevelopment plan for the area;

         O. the [municipality] local government is empowered in a metropolitan redevelopment area to undertake slum clearance and redevelopment that includes:

             (1) acquisition of a slum area or a blighted area or portion thereof;

             (2) demolition and removal of buildings and improvements;

             (3) installation, construction, reconstruction, maintenance and operation of streets, utilities, storm drainage facilities, curbs and gutters, parks, playgrounds, [single-] single-family or multifamily dwelling units, buildings, public buildings, including [but not limited to] parking facilities, transportation centers, safety buildings and other improvements, necessary for carrying out in the area the provisions of an approved plan for the area; and

             (4) making the real property available for development or redevelopment by private enterprise or public agencies, including sale, leasing or retention by the [municipality] local government itself, at its fair value for uses in accordance with the metropolitan redevelopment area plan; and

         P. to engage in rehabilitation or conservation that includes the restoration and renewal of a slum or blighted area or portion thereof in accordance with any approved plan, by:

             (1) carrying out plans for a program of voluntary or compulsory repair and rehabilitation of buildings or other improvements;

             (2) acquisition of real property and demolition or removal of buildings and improvements thereon where necessary to eliminate unhealthful, unsanitary or unsafe conditions, lessen or increase density, eliminate obsolete or other uses detrimental to the public welfare or to otherwise remove or prevent the spread of blight or deterioration or to provide land for needed public facilities;

             (3) installation, construction or reconstruction of streets, utilities, parks, playgrounds and other improvements necessary for carrying out in the area the provisions of the Metropolitan Redevelopment Code;

             (4) the disposition of any property acquired in such an area, including sale, leasing or retention by the [municipality] local government itself, for uses in accordance with such an approved plan;

             (5) acquisition of real property in the area [which] that, under a plan, is to be repaired or rehabilitated;

             (6) repair or rehabilitation of structures within the area;

             (7) power to resell repaired or rehabilitated property;

             (8) acquisition, without regard to any requirement that the area be a slum or blighted area, of air-rights in an area consisting principally of land on which is located a highway, railway, bridge or subway tracks or tunnel entrance or other similar facilities that have a blighting influence on the surrounding area and over which air-rights sites are to be developed for the elimination of such blighting influences; and

             (9) making loans or grants or authorizing the use of the proceeds of bonds issued pursuant to the Metropolitan Redevelopment Code for the purpose of repairing, remodeling, modifying or otherwise reconstructing a building or buildings located in the metropolitan redevelopment area. Such rehabilitation or conservation with use of funds expended by authority of the Metropolitan Redevelopment Code or by metropolitan revenue bonds authorized by that code shall be authorized only after approval by the local [governing body] government and after it has been determined that such expenditure is in accordance with the metropolitan redevelopment plan for that area."

    SECTION 10. Section 3-60A-12 NMSA 1978 (being Laws 1979, Chapter 391, Section 12) is amended to read:

    "3-60A-12. DISPOSAL OF PROPERTY.--

         A. A [municipality] local government may sell, lease or otherwise transfer real property or any interest [therein] in real property acquired by it in a metropolitan redevelopment area and may enter into contracts with respect [thereto] to the real property for residential, commercial, industrial or other uses or for public use or may retain such property or interest for public use in accordance with the metropolitan redevelopment plan, subject to any covenants, conditions and restrictions, including covenants running with the land and including the incorporation by reference [therein] in the covenants of the provisions of a metropolitan redevelopment plan or any part thereof, as it may deem to be in the public interest or necessary to carry out the purposes of the metropolitan redevelopment plan. The purchasers or lessees and their successors and assigns shall be obligated to devote the real property only to the uses specified in the metropolitan redevelopment plan for a period of years as set out in the sale or lease agreement and may be obligated to comply with other requirements [which] that the [municipality] local government may determine to be in the public interest, including the obligation to begin within a reasonable time any improvements on real property required by the metropolitan redevelopment plan. The real property or interest shall be sold, leased, otherwise transferred or retained at not less than its fair value for uses in accordance with the Redevelopment Law as determined by the [governing body of the municipality] local government or by the metropolitan redevelopment agency, if so authorized. In determining the fair value of real property for uses in accordance with the metropolitan redevelopment plan, a [municipality] local government shall take into account and give consideration to the uses provided in the plan, the restrictions upon and the covenants, conditions and obligations assumed by the purchaser or lessee or by the [municipality] local government retaining the property and the objectives of the plan for the prevention of and recurrence of slum or blighted areas. The [municipality] local government in any instrument of conveyance to a private purchaser or lessee may provide that the purchaser or lessee shall be without power to sell, lease or otherwise transfer the real property without the prior written consent of the [municipality] local government until [he] the purchaser or lessee has completed the construction of any and all improvements [which he has] that the purchaser or lessee is obligated [himself] to construct [thereon] on the real property. Real property acquired by a [municipality which] local government that, in accordance with the provisions of the metropolitan redevelopment plan, is to be transferred shall be transferred consistent with the carrying out of the provisions of the plan. The inclusion in any contract or conveyance to a purchaser or lessee of covenants, restrictions or conditions, including the incorporation by reference [therein] in the covenants of the provisions of a metropolitan redevelopment plan or any part thereof, shall not prevent the filing of the contract or conveyance in the land records of the county in a manner as to afford actual or constructive notice thereof.

         B. A [municipality] local government may dispose of real property in a metropolitan redevelopment area to private persons only in accordance with the procedures set out in this subsection. The [municipality] local government shall, prior to entering into any agreement to convey title or an interest in real property, publish a public notice once each week for at least two consecutive weeks of the date, time and place it will receive proposals for the purchase, lease or rental, for development or redevelopment purposes, of the real property or interest [therein] in the real property it intends to dispose of. The public notice shall contain sufficient information to describe the location of the real property, the type of development sought or land use requirement and the selection criteria the [municipality] local government will follow during review of proposals and shall state that details may be obtained at the office designated in the notice. The [municipality] local government shall consider all proposals submitted in accordance with the public notice and shall only accept proposals it deems in the public interest and meeting the objectives of the metropolitan redevelopment plan after considering the type of development, redevelopment or use proposed and the financial ability of the persons making [such] the proposals to carry them out.

         C. If after following the procedures set out in Subsection B of this section a [municipality] local government receives no proposals or determines the ones received are not in accordance with the call for proposals or do not meet the objectives of the Metropolitan Redevelopment Code, the [municipality] local government may reject any proposals received and then dispose of [such] the real property through reasonable negotiating procedures; provided, however, that negotiated sales, leases or transfers must be reported to the [local governing body] local government and approved [by that body] before [such] the sale, lease or transfer may take effect.

         D. A [municipality] local government may operate and maintain real property acquired in a metropolitan redevelopment area pending the disposition of the property for development or redevelopment without regard to the provisions of Subsection A of this section for any uses and purposes deemed desirable even though not in conformity with the Redevelopment Law."

    SECTION 11. Section 3-60A-13 NMSA 1978 (being Laws 1979, Chapter 391, Section 13, as amended) is amended to read:

    "3-60A-13. PROPERTY EXEMPT FROM TAXES AND FROM LEVY AND SALE BY VIRTUE OF AN EXECUTION.--

         A. All property of a [municipality] local government, including funds, owned or held in fee simple by it for the purposes of the Metropolitan Redevelopment Code shall be exempt from levy and sale by virtue of an execution, and no execution or other judicial process shall issue against the property nor shall judgment against a [municipality] local government be a charge or lien upon the property; provided, however, that the provisions of this section shall not apply to or limit the right of obligees to pursue any remedies for the enforcement of any pledge or lien given pursuant to the Redevelopment Law by a [municipality] local government on its rents, fees, grants, land or revenues from projects.

         B. The property of a [municipality] local government acquired or held for the purposes of the Metropolitan Redevelopment Code is declared to be public property used for essential public and governmental purposes, and the property shall be exempt from property taxes or assessments of the [municipality] local government, the county, the state or any political subdivision thereof; provided that the exemption shall terminate when the [municipality] local government transfers its fee simple interest in the property to a purchaser that is not entitled to the exemption with respect to the property. Nothing in this subsection authorizes an exemption or deduction from the imposition of the gross receipts and compensating taxes under the Gross Receipts and Compensating Tax Act on the gross receipts from the sale of property to or the use of property by a [municipality] local government or any other person in connection with a metropolitan redevelopment project created under the Metropolitan Redevelopment Code."

    SECTION 12. Section 3-60A-13.1 NMSA 1978 (being Laws 1985, Chapter 225, Section 2) is amended to read:

    "3-60A-13.1. PAYMENTS IN LIEU OF PROPERTY TAXES AND ASSESSMENTS.--

         A. If interests in project property are exempt from property taxation and assessments under Subsection B of Section 3-60A-13 NMSA 1978 or Section 7-36-3.1 NMSA 1978, then during the period extending from the date of acquisition of the property by the [municipality] local government through December 31 of the year in which the seventh anniversary of that acquisition date occurs, any lessee of the project property or owner of a substantial beneficial interest in the project property, in whose ownership the property would not be exempt from property taxation except for the exemption granted under Section 7-36-3.1 NMSA 1978, shall pay to the county treasurer annually, at the same time property tax payments are due under the Property Tax Code, an amount equal to the sum of:

             (1) general property taxes that would have been imposed under Subsection B of Section 7-37-7 NMSA 1978 had it not been exempt and had it been valued at the valuation for property taxation purposes that existed in the year immediately preceding the year of acquisition by the [municipality] local government;

             (2) amounts that would have been imposed under Subsection C of Section 7-37-7 NMSA 1978 on the project property had it not been exempt and had it been valued at the valuation for property taxation purposes that existed in the year immediately preceding the year of acquisition by the [municipality] local government; and

             (3) amounts that would have been imposed as benefit assessments on the project property had it not been exempt and had it been valued at the valuation for property taxation purposes that existed in the year immediately preceding the year of acquisition by the [municipality] local government if those benefit assessments are authorized by law and are expressed in mills per dollar or dollars per thousand dollars of net taxable value of property, assessed value of property or similar terms.

         B. The county treasurer shall distribute all amounts collected under Subsection A of this section in the same manner as the amounts would have been distributed if they had been collected as taxes or assessments on nonexempt property.

         C. The provisions of this section shall apply only to project property acquired by a [municipality] local government under the provisions of the Metropolitan Redevelopment Code on or after January 1, 1986."

    SECTION 13. Section 3-60A-14 NMSA 1978 (being Laws 1979, Chapter 391, Section 14) is amended to read:

    "3-60A-14. COOPERATION BY PUBLIC BODIES.--

         A. For the purpose of aiding in the planning, undertaking or carrying out of a metropolitan redevelopment project located within the area in which it is authorized to act, any public body upon terms with or without consideration may:

             (1) dedicate, sell, convey or lease any of its interest in any property or grant easements, licenses or other rights or privileges [therein] in the property to a [municipality] local government;

             (2) incur the entire expense of any public improvements made by the public body in exercising the powers granted in this section;

             (3) do any and all things necessary to aid or cooperate in the planning or carrying out of a metropolitan redevelopment plan;

             (4) lend, grant or contribute funds to a [municipality] local government;

             (5) enter into agreements [which] that may extend over any period, notwithstanding any provision or rule of law to the contrary, with a [municipality] local government or other public body respecting action to be taken pursuant to any of the powers granted by the Redevelopment Law, including the furnishing of funds or other assistance in connection with metropolitan redevelopment; or

             (6) cause public buildings and public facilities, including parks, playgrounds, recreational, community, educational, transportation, water, sewer or drainage facilities or any other works [which] that it is otherwise empowered to undertake, to be furnished to the [municipality] local government; furnish, dedicate, close, vacate, pave, install, grade, regrade, plan or replan streets, roads, sidewalks, ways or other places; plan or replan, zone or rezone any part of the public property or make exceptions from building regulations; and cause administrative and other services to be furnished to the [municipality] local government.

    If at any time title to or possession of any redevelopment project is held by any public body or governmental agency, other than the [municipality] local government, which is authorized by law to engage in the undertaking, carrying out or administration of development projects, including the federal government, the provisions of the agreements referred to in this section shall inure to the benefit of and may be enforced by such public body or governmental agency. As used in this subsection, the term ["municipality"] "local government" includes a metropolitan redevelopment agency vested with metropolitan redevelopment project powers pursuant to the provisions of the Metropolitan Redevelopment Code.

         B. For the purpose of aiding in the planning, undertaking or carrying out of the metropolitan redevelopment project by a redevelopment agency hereunder, a [municipality] local government may, in addition to its other powers and upon such terms with or without consideration, perform any or all of the actions or things [which] that, by the provisions of Subsection A of this section, a public body is authorized to do or perform, including the furnishing of financial and other assistance.

         C. For the purposes of this section or for the purpose of aiding in the planning, undertaking or carrying out of a metropolitan redevelopment project of a [municipality] local government, the [municipality] local government may, in addition to any authority to issue bonds pursuant to the Redevelopment Bonding Law, issue and sell its general obligation or revenue bonds [authorized in the Municipal Code]. Any bonds issued by a [municipality] local government pursuant to this section shall be issued in the manner and within the limitations prescribed by the laws of this state for the issuance and authorization of bonds by [such municipality] the local government for public purposes generally."

    SECTION 14. Section 3-60A-15 NMSA 1978 (being Laws 1979, Chapter 391, Section 15, as amended by Laws 2007, Chapter 329, Section 6 and by Laws 2007, Chapter 330, Section 6) is amended to read:

    "3-60A-15. EXERCISE OF POWERS IN CARRYING OUT PROJECTS.--

         A. [The local governing body] A local government may directly exercise its metropolitan redevelopment project powers or it may, by ordinance if it determines such action to be in the public interest, elect to delegate the exercise of such powers to the metropolitan redevelopment agency created pursuant to the Redevelopment Law. If the local [governing body] government so determines, the agency shall be vested with all of the powers in the same manner as though all the powers were conferred on the agency or authority instead of the [municipality] local government.

         B. As used in this section, the term "redevelopment project powers" includes any rights, powers, functions and duties of a [municipality] local government authorized by the Redevelopment Law except the following, which are reserved to the local [governing body] government; the power to:

             (1) declare an area to be a slum or a blighted area or combination thereof and to designate the area as appropriate for a redevelopment project;

             (2) approve or amend redevelopment plans;

             (3) approve a general plan for the [municipality] local government as a whole;

             (4) make findings of necessity prior to preparation of a metropolitan redevelopment plan as provided in the Redevelopment Law and the findings and determinations required prior to approval of a metropolitan redevelopment plan or project as provided in the Redevelopment Law;

             (5) issue general obligation bonds and revenue bonds as authorized [in the Municipal Code] by law;

             (6) approve loans or grants;

             (7) approve leases of more than one year's duration;

             (8) issue [municipal] redevelopment bonds; and

             (9) appropriate funds and levy taxes and assessments."

    SECTION 15. Section 3-60A-16 NMSA 1978 (being Laws 1979, Chapter 391, Section 16) is amended to read:

    "3-60A-16. METROPOLITAN REDEVELOPMENT AGENCY.--

         A. There may be created in each [municipality] local government a public body to be known as the "metropolitan redevelopment agency". The metropolitan redevelopment agency shall not transact any business or exercise any powers until the local [governing body] government has adopted an ordinance creating a metropolitan redevelopment agency and has specified the powers and duties of the agency.

         B. When the metropolitan redevelopment agency has been authorized to transact business and exercise powers, the mayor, with the advice and consent of the local [governing body] government, shall appoint a board of commissioners of the redevelopment agency, which shall consist of five commissioners. The commissioners shall be initially appointed to serve staggered terms as follows from the date of their appointment:

             (1) two members for three-year terms;

             (2) two members for two-year terms; and

             (3) one member for a one-year term.

Thereafter, commissioners shall be appointed for terms of five years each.

         C. A commissioner shall receive no compensation for [his] services but shall be entitled to the necessary expenses, including traveling expenses, incurred in the discharge of [his] the commissioner's duties. Each commissioner shall hold office until [his] the commissioner's successor has been appointed and qualified. A certificate of the appointment or reappointment of any commissioner shall be filed with the clerk of the [municipality] local government, and the certificate shall be conclusive evidence of the due and proper appointment of the commissioner. A commissioner may be removed from office at any time by the mayor.

         D. The powers of a metropolitan redevelopment agency shall be exercised by the commissioners. A majority of the appointed commissioners [shall constitute] constitutes a quorum for the purpose of conducting business and exercising the powers of the agency and for all other purposes. Action may be taken by the agency upon a vote of a majority of the commissioners present at a lawful meeting, unless in any case the bylaws [shall] require a larger number. Any person may be appointed as commissioner if [he] the person resides within the area of operation of the agency, which shall be coterminous with the area of operation of the [municipality] local government, and is otherwise eligible for such appointment under the Redevelopment Law.

         E. The mayor shall designate a [chairman] chair and vice [chairman] chair from among the commissioners. The commission may employ and determine the qualifications, duties and compensation of an executive director, technical experts and such other agents and employees, permanent and temporary, as the metropolitan redevelopment agency may require. For such legal service as the agency may require, the commission may employ or retain for the agency legal counsel and a legal staff. A metropolitan redevelopment agency shall file annually with the local [governing body] government a report of its activities for the preceding fiscal year, which report shall include a complete financial statement setting forth its assets, liabilities, income and operating expenses as of the end of such fiscal year."

    SECTION 16. Section 3-60A-17 NMSA 1978 (being Laws 1979, Chapter 391, Section 17) is amended to read:

    "3-60A-17. CONFLICT OF INTEREST--MISCONDUCT.--[A.] No public official or employee of a [municipality] local government or member of any board or commission [thereof] of a local government and no commissioner or employee of a metropolitan redevelopment agency [which] that has been vested by a [municipality] local government with metropolitan redevelopment project powers by the Redevelopment Law shall voluntarily acquire any interest, direct or indirect, in any [such] metropolitan redevelopment project of the [municipality] local government or in any contract or proposed contract in connection with [such] the project. Where the acquisition is not voluntary, the interest acquired shall be immediately disclosed in writing to the local [governing body] government, and such disclosure shall be entered upon its minutes. If any such official, commissioner or employee currently owns or controls or owned or controlled within the preceding two years any interest, direct or indirect, in any property [which he] that the official, commissioner or employee knows is included or planned to be included in a metropolitan redevelopment project, [he] the official, commissioner or employee shall immediately disclose this fact in writing to the local [governing body] government, and this disclosure shall be entered upon the minutes of the [governing body] local government, and any such official, commissioner or employee shall not participate in any action by the [municipality or board or commission thereof] local government affecting [such] the property. Any disclosure required to be made by this section to the local [governing body] government shall concurrently be made to a metropolitan redevelopment agency [which] that has been vested with metropolitan redevelopment project powers by the [municipality] local government."

    SECTION 17. Section 3-60A-18 NMSA 1978 (being Laws 1979, Chapter 391, Section 18) is amended to read:

    "3-60A-18. OTHER POWERS.--

         A. Except as otherwise specifically set forth in Section [15 of the Redevelopment Law] 3-60A-15 NMSA 1978, the local [governing body] government may delegate its metropolitan redevelopment powers in the manner provided for delegation of powers in the Redevelopment Law to a metropolitan redevelopment agency [which] that shall be vested with such powers in the same manner as though the powers were conferred on the agency instead of the [municipality] local government.

         B. The local [governing body] government may, in the manner required by state law or municipal charter, provide for such ordinances, rules, regulations or by such other means it deems proper as are necessary to implement the Redevelopment Law. The [municipality] local government and the agency shall be empowered to exercise only those powers authorized by [this] the Redevelopment Law or otherwise provided by law. Nothing in [this] the Redevelopment Law shall be construed to authorize the [municipality] local government to operate an electric or gas utility."

    SECTION 18. Section 3-60A-19 NMSA 1978 (being Laws 1979, Chapter 391, Section 19) is amended to read:

    "3-60A-19. TAX INCREMENT LAW--SHORT TITLE.--Sections [19 through 25 of the Metropolitan Redevelopment Code] 3-60A-19 through 3-60A-24 NMSA 1978 may be cited as the "Tax Increment Law"."

    SECTION 19. Section 3-60A-20 NMSA 1978 (being Laws 1979, Chapter 391, Section 20) is amended to read:

    "3-60A-20. ALTERNATIVE METHOD OF FINANCING.--

         A. Effective for tax years beginning on or after January 1, 1980, the local [governing body of a municipality] government may elect by resolution to use the procedures set forth in the Tax Increment Law for financing metropolitan redevelopment projects. Such procedures may be used in addition to or in conjunction with other methods provided by law for financing such projects.

         B. The tax increment method, for the purpose of financing metropolitan redevelopment projects, is the dedication for further use in metropolitan redevelopment projects of that increase in property tax revenue directly resulting from the increased net taxable value of a parcel of property attributable to its rehabilitation, redevelopment or other improvement because of its inclusion within an urban renewal, community development or metropolitan redevelopment project."

    SECTION 20. Section 3-60A-21 NMSA 1978 (being Laws 1979, Chapter 391, Section 21, as amended) is amended to read:

    "3-60A-21. TAX INCREMENT PROCEDURES.--The procedures to be used in the tax increment method are:

         A. the local [governing body of the municipality] government shall, at the time after approval of a metropolitan redevelopment project, notify the county assessor and the taxation and revenue department of the taxable parcels of property within the project;

         B. upon receipt of notification pursuant to Subsection A of this section, the county assessor and the taxation and revenue department shall identify the parcels of property within the metropolitan redevelopment project within their respective jurisdictions and certify to the county treasurer the net taxable value of the property at the time of notification as the base value for the distribution of property tax revenues authorized by the Property Tax Code. If because of acquisition by the [municipality] local government the property becomes tax exempt, the county assessor and the taxation and revenue department shall note that fact on their respective records and so notify the county treasurer, but the county assessor, the taxation and revenue department and the county treasurer shall preserve a record of the net taxable value at the time of inclusion of the property within the metropolitan redevelopment project as the base value for the purpose of distribution of property tax revenues when the parcel again becomes taxable. The county assessor is not required by this section to preserve the new taxable value at the time of inclusion of the property within the metropolitan redevelopment project as the base value for the purposes of valuation of the property;

         C. if because of acquisition by the [municipality] local government the property becomes tax exempt, when the parcel again becomes taxable, the local [governing body of the municipality] government shall notify the county assessor and the taxation and revenue department of the parcels of property that because of their rehabilitation or other improvement are to be revalued for property tax purposes. A new taxable value of this property shall then be determined by the county assessor or by the taxation and revenue department if the property is within the valuation jurisdiction of that department. If no acquisition by the [municipality] local government occurs, improvement or rehabilitation of property subject to valuation by the assessor shall be reported to the assessor as required by the Property Tax Code, and the new taxable value shall be determined as of January 1 of the tax year following the year in which the improvement or rehabilitation is completed;

         D. current tax rates shall then be applied to the new taxable value. The amount by which the revenue received exceeds that which would have been received by application of the same rates to the base value before inclusion in the metropolitan redevelopment project shall be credited to the [municipality] local government and deposited in the metropolitan redevelopment fund. This transfer shall take place only after the county treasurer has been notified to apply the tax increment method to a specific property included in a metropolitan redevelopment area. Unless the entire metropolitan redevelopment area is specifically included by the [municipality] local government for purposes of tax increment financing, the payment by the county treasurer to the [municipality] local government shall be limited to those properties specifically included. The remaining revenue shall be distributed to participating units of government as authorized by the Property Tax Code; and

         E. the procedures and methods specified in this section shall be followed annually for a maximum period of twenty years following the date of notification of inclusion of property as coming under the transfer provisions of this section."

    SECTION 21. Section 3-60A-22 NMSA 1978 (being Laws 1979, Chapter 391, Section 22) is amended to read:

    "3-60A-22. METROPOLITAN REDEVELOPMENT FUND--CREATION--DISBURSEMENT.--There is created a "metropolitan redevelopment fund" for purposes of the Metropolitan Redevelopment Code. Money in the metropolitan redevelopment fund shall be disbursed to the [municipality] local government to be used as other money is authorized to be used in the Metropolitan Redevelopment Code."

    SECTION 22. Section 3-60A-23 NMSA 1978 (being Laws 1979, Chapter 391, Section 23, as amended) is amended to read:

    "3-60A-23. TAX INCREMENT FINANCING METHOD APPROVAL.--

         A. The property tax increment method shall be applicable only to the units of government participating in property tax revenue derived from [property within a metropolitan redevelopment project and approving the use of the tax increment method for that property and only to the extent of the approval. An approval may be restricted to certain types or sources of tax revenue.] the properties within the district.

         B. A local [governing body of each municipality] government shall request [such] an approval for up to a twenty-year period for property included in the tax increment funding. The governor or [his] the governor's authorized representative shall approve, partially approve or disapprove the use of the method for state government; the governing body of each other participating unit shall approve, partially approve or disapprove by ordinance or resolution the use of the method for their respective units.

         C. At the request of a participating unit of government, made within ten days of receipt of the request by the [municipality] local government, the [municipality] local government shall make a presentation to the governor or [his] the governor's authorized representative and to the governing bodies of all participating units of government, which presentation shall include a description of the metropolitan redevelopment project and the parcels in the project to which the tax increment method will apply, and an estimate of the general effect of the project and the application of the tax increment method on property values and tax revenues. All participating units shall notify the local [governing body of the municipality] government seeking approval within thirty days of receipt of the [municipality's] local government's request. At the expiration of that time, the alternative method of financing set forth in this section shall be effective for a period of up to twenty tax years."

    SECTION 23. Section 3-60A-23.1 NMSA 1978 (being Laws 2000, Chapter 103, Section 4) is amended to read:

    "3-60A-23.1. TAX INCREMENT BONDS.--

         A. For the purpose of financing metropolitan redevelopment projects, in whole or in part, a [municipality] local government may issue tax increment bonds or tax increment bond anticipation notes that are payable from and secured by real property taxes, in whole or in part, allocated to the metropolitan redevelopment fund pursuant to the provisions of Sections 3-60A-21 and 3-60A-23 NMSA 1978. The principal of, premium, if any, and interest on the bonds or notes shall be payable from and secured by a pledge of such revenues, and the [municipality] local government shall irrevocably pledge all or part of such revenues to the payment of the bonds or notes. The revenues deposited in the metropolitan redevelopment fund or the designated part thereof may thereafter be used only for the payment of the principal of, premium, if any, and interest on the bonds or notes, and a holder of the bonds or notes shall have a first lien against the revenues deposited in the metropolitan redevelopment fund or the designated part thereof for the payment of principal of, premium, if any, and interest on such bonds or notes. To increase the security and marketability of the tax increment bonds or notes, the [municipality] local government may:

             (1) create a lien for the benefit of the bondholders on any public improvements or public works used solely by the metropolitan redevelopment project or portion of a project financed by the bonds or notes, or on the revenues of such improvements or works;

             (2) provide that the proceeds from the sale of real and personal property acquired with the proceeds from the sale of bonds or notes issued pursuant to the Tax Increment Law shall be deposited in the metropolitan redevelopment fund and used for the purposes of repayment of principal of, premium, if any, and interest on such bonds or notes; and

             (3) make covenants and do any and all acts not inconsistent with law as may be necessary, convenient or desirable in order to additionally secure the bonds or notes or make the bonds or notes more marketable in the exercise of the discretion of the local [governing body] government.

         B. Bonds and notes issued pursuant to this section shall not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction, shall not be general obligations of the [municipality] local government, shall be collectible only from the proper pledged revenues and shall not be subject to the provisions of any other law or charter relating to the authorization, issuance or sale of tax increment bonds or tax increment bond anticipation notes. Bonds and notes issued pursuant to the Tax Increment Law are declared to be issued for an essential public and governmental purpose and, together with interest thereon, shall be exempted from all taxes by the state.

         C. The bonds or notes shall be authorized by an ordinance of the [municipality] local government; shall be in such denominations, bear such date and mature, in the case of bonds, at such time not exceeding twenty years from their date, and in the case of notes, not exceeding five years from the date of the original note; bear interest at a rate or have appreciated principal value not exceeding the maximum net effective interest rate permitted by the Public Securities Act; and be in such form, carry such registration privileges, be executed in such manner, be payable in such place within or without the state, be payable at intervals or at maturity and be subject to such terms of redemption as the authorizing ordinance or supplemental resolution [or resolutions] of the [municipality] local government may provide.

         D. The bonds or notes may be sold in one or more series at, below or above par, at public or private sale, in such manner and for such price as the [municipality] local government, in its discretion, shall determine; provided that the price at which the bonds or notes are sold shall not result in a net effective interest rate that exceeds the maximum permitted by the Public Securities Act. As an incidental expense of a metropolitan redevelopment project or portion thereof financed with the bonds or notes, the [municipality] local government in its discretion may employ financial and legal consultants with regard to the financing of the project.

         E. In case any of the public officials of the [municipality] local government whose signatures appear on any bonds or notes issued pursuant to the Tax Increment Law shall cease to be public officials before the delivery of the bonds or notes, the signatures shall, nevertheless, be valid and sufficient for all purposes, the same as if the officials had remained in office until delivery. Any provision of law to the contrary notwithstanding, any bonds or notes issued pursuant to the Tax Increment Law shall be fully negotiable.

         F. In any suit, action or proceeding involving the validity or enforceability of any bond or note issued pursuant to the Tax Increment Law or the security therefor, any bond or note reciting in substance that it has been issued by the [municipality] local government in connection with a metropolitan redevelopment project shall be conclusively deemed to have been issued for such purpose and the project shall be conclusively deemed to have been planned, located and carried out in accordance with the provisions of the Metropolitan Redevelopment Code.

         G. The proceedings under which tax increment bonds or tax increment bond anticipation notes are authorized to be issued and any mortgage, deed of trust, trust indenture or other lien or security device on real and personal property given to secure the same may contain provisions customarily contained in instruments securing bonds and notes and constituting a covenant with the bondholders.

         H. A [municipality] local government may issue bonds or notes pursuant to this section with the proceeds from the bonds or notes to be used as other money is authorized to be used in the Metropolitan Redevelopment Code.

         I. The [municipality] local government shall have the power to issue renewal notes, to issue bonds to pay notes and whenever it deems refunding expedient, to refund any bonds by the issuance of new bonds, whether the bonds to be refunded have or have not matured, and to issue bonds partly to refund bonds then outstanding and partly for other purposes in connection with financing metropolitan redevelopment projects, in whole or in part. Refunding bonds issued pursuant to the Tax Increment Law to refund outstanding tax increment bonds shall be payable from real property tax revenues, out of which the bonds to be refunded thereby are payable or from other lawfully available revenues.

         J. The proceeds from the sale of any bonds or notes shall be applied only for the purpose for which the bonds or notes were issued and if, for any reason, any portion of the proceeds are not needed for the purpose for which the bonds or notes were issued, the unneeded portion of the proceeds shall be applied to the payment of the principal of or the interest on the bonds or notes.

         K. The cost of financing a metropolitan redevelopment project shall be deemed to include the actual cost of acquiring a site and the cost of the construction of any part of a project, including architects' and engineers' fees, the purchase price of any part of a project that may be acquired by purchase and all expenses in connection with the authorization, sale and issuance of the bonds or notes to finance the acquisition, and any related costs incurred by the [municipality] local government.

         L. No action shall be brought questioning the legality of any contract, mortgage, deed of trust, trust indenture or other lien or security device, proceeding or bonds or notes executed in connection with any project authorized by the Metropolitan Redevelopment Code on and after thirty days from the effective date of the ordinance authorizing the issuance of such bonds or notes."

    SECTION 24. Section 3-60A-26 NMSA 1978 (being Laws 1979, Chapter 391, Section 26) is amended to read:

    "3-60A-26. REDEVELOPMENT BONDING LAW--SHORT TITLE.--Sections [26 through 46 of the Municipal Redevelopment Code] 3-60A-26 through 3-60A-46 NMSA 1978 may be cited as the "Redevelopment Bonding Law"."

    SECTION 25. Section 3-60A-27 NMSA 1978 (being Laws 1979, Chapter 391, Section 27) is amended to read:

    "3-60A-27. DEFINITIONS.--As used in the Redevelopment Bonding Law:

         [A. "revenue bonds" means bonds, notes or other securities evidencing an obligation and issued pursuant to the powers granted by the Metropolitan Redevelopment Code by a municipality for purposes authorized by that code;

         B.] A. "finance" or "financing" means the issuing of bonds by a [municipality] local government and the use of substantially all of the proceeds [therefrom] from the bonds pursuant to a financing agreement with the user to pay or to reimburse the user or its designee for the costs of the acquisition or construction of a project, whether these costs are incurred by the [municipality] local government, the user or a designee of the user; provided that title to or in the project may at all times remain in the user, and, in such case, the bonds of the [municipality] local government may be secured by mortgage or other lien upon the project or upon any other property of the user, or both, granted by the user or by a pledge of one or more notes, debentures, bonds or other secured or unsecured debt obligations of the user, as the governing body deems advisable, but no [municipality] local government shall be authorized hereby to pledge any of its property or to otherwise secure the payment of any bonds with its property, except that the [municipality] local government may pledge the property of the project or revenues [therefrom] from the project;

         [C.] B. "financing agreement" includes a lease, sublease, installment purchase agreement, rental agreement, option to purchase or any other agreement or any combination thereof entered into in connection with the financing of a project pursuant to the Metropolitan Redevelopment Code;

         [D.] C. "mortgage" means a deed of trust or any other security device for both real and personal property;

         [E.] D. "ordinance" means an ordinance of a [municipality] local government financing or refinancing an activity involving or affecting improvement or improvements;

         [F.] E. "project" means an activity [which] that can be funded or refinanced by revenue bonds issued pursuant to the Redevelopment Bonding Law for the purpose of acquiring, improving, rehabilitating, conserving, financing, or refinancing, erecting or building new or improved facilities, on land, building or buildings or any other improvement or improvements, site or any other activity authorized by the Metropolitan Redevelopment Code for projects or activities located within the boundaries of a metropolitan redevelopment area. The revenue bonds may be used for the projects hereafter enumerated for any purpose or use in such project, except that no funds shall be used for inventories, raw materials or other working capital, whether or not in existence, suitable or used for or in connection with any of the following projects:

             (1) manufacturing, industrial, commercial or business enterprises, including without limitation enterprises engaged in storing, warehousing, distributing, selling or transporting any products of industry, commerce, manufacturing or business or any utility plant;

             (2) hospital, health-care or nursing-home facilities, including without limitation clinics and out-patient facilities and facilities for the training of hospital, health-care or nursing-home personnel;

             (3) residential facilities intended for use as the place of residence by the owners or intended occupants;

             (4) sewage or solid waste disposal facilities;

             (5) facilities for the furnishing of water, if available, on reasonable demand to members of the general public;

             (6) facilities for the furnishing of energy or gas;

             (7) sports and recreational facilities;

             (8) convention or trade show facilities; and

             (9) research, product testing and administrative facilities;

         [G. "state" means the state of New Mexico;]

         F. "revenue bonds" means bonds, notes or other securities evidencing an obligation and issued pursuant to the powers granted by the Metropolitan Redevelopment Code by a local government for purposes authorized by that code;

         [H.] G. "user" means one or more persons who enter into a financing agreement with a [municipality] local government relating to a project, except that the user need not be the person actually occupying, operating or maintaining the project; and

         [I.] H. "utility plant" means any facility used for or in connection with the generation, production, transmission or distribution of electricity; the production, manufacture, storage or distribution of gas; the transportation or conveyance of gas, oil or other fluid substance by pipeline; or the diverting, developing, pumping, impounding, distributing or furnishing of water."

    SECTION 26. Section 3-60A-28 NMSA 1978 (being Laws 1979, Chapter 391, Section 28) is amended to read:

    "3-60A-28. GENERAL POWERS.--[A.] In addition to any other powers, each [municipality] local government has the following powers:

         [(1)] A. to acquire, whether by construction, purchase, gift, devise, lease or sublease, to improve and equip and to finance, sell, lease or otherwise dispose of one or more projects or part thereof. If a [municipality] local government issues revenue bonds as provided by the Metropolitan Redevelopment Code to finance or acquire projects, such projects shall be located within the [municipality] jurisdiction of the local government and within a metropolitan redevelopment area;

         [(2)] B. to enter into financing agreements with others for the purpose of providing revenues to pay the bonds authorized by the Redevelopment Bonding Law; to lease, sell or otherwise dispose of any or all of its projects to others for such revenues and upon such terms and conditions as the local [governing body] government may deem advisable; and to grant options to renew any lease or other agreement with respect to the project and to grant options to buy any project at such price as the local [governing body] government deems desirable;

         [(3)] C. to issue revenue bonds for the purpose of defraying the cost of financing, acquiring, improving and equipping any project, including the payment of principal and interest on [such] the bonds for a period not to exceed three years and all other incidental expenses incurred in issuing [such] the bonds; and

         [(4)] D. to secure payment of [such] revenue bonds as provided in the Redevelopment Bonding Law."

    SECTION 27. Section 3-60A-29 NMSA 1978 (being Laws 1979, Chapter 391, Section 29) is amended to read:

    "3-60A-29. REVENUE BONDS--ISSUANCE.--

         A. A [municipality] local government may issue revenue bonds from time to time in its discretion to finance the undertaking of any project authorized by the Redevelopment Bonding Law or the exercise of any power or authority delegated under the Metropolitan Redevelopment Code. These bonds shall be made payable as to both principal and interest solely from the income, proceeds, revenues and funds of the project [or projects].

         B. Bonds issued under this section shall not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction and shall not be subject to the provisions of any other law or charter relating to the authorization, issuance or sale of bonds. Bonds issued under the provisions of the Metropolitan Redevelopment Code are declared to be issued for an essential public and governmental purpose and, together with interest thereon and income thereon and income therefrom, shall be exempted from all taxes by the state [of New Mexico].

         C. Bonds issued under this section must be authorized by resolution of the local [governing body such] government. The bonds may be issued in one or more series and shall bear a date or dates, be payable upon demand or mature at a time or times, bear interest at a rate or rates not exceeding the legally authorized rate, be in a denomination or denominations, be in a form either coupon or registered, carry conversion or registration privileges, have rank or priority, be executed in a manner, be payable in a medium of payment, at a place or places, be subject to the terms of redemption with or without premium, be secured in a manner and have the other characteristics as may be provided by the resolution or trust indenture or mortgage issued pursuant [thereto] to the bonds.

         D. The revenue bonds or any portion thereof may be sold at not less than par at public sales held after notice published prior to the sale in a newspaper having a general circulation in the area of operation and in any other medium of publication as the [municipality] local government may determine or may be exchanged for other bonds on the basis of par; provided that the bonds may be sold to the federal government or to the state at private sale at not less than par, and, in the event less than all of the authorized principal amount of the bonds is sold to the federal government or to the state or to political subdivisions thereof, the balance may be sold at private sale at not less than par at an interest cost to the [municipality] local government of not to exceed the interest cost to the [municipality] local government of the portion of the bonds sold to the federal government.

         E. In case any of the public officials of the [municipality] local government whose signatures appear on any bonds or coupons issued under the [Redevelopment Law shall] Metropolitan Redevelopment Code cease to be public officials before the delivery of the bonds, the signatures shall, nevertheless, be valid and sufficient for all purposes, the same as if the officials had remained in office until delivery. Any provision of any law to the contrary notwithstanding, any bonds issued pursuant to the [Redevelopment Law] Metropolitan Redevelopment Code shall be fully negotiable.

         F. In any suit, action or proceeding involving the validity or enforceability of any bond issued under the [Redevelopment Law] Metropolitan Redevelopment Code or the security therefor, any bond reciting in substance that it has been issued by the [municipality] local government in connection with a metropolitan redevelopment project shall be conclusively deemed to have been issued for such purpose, and the project shall be conclusively deemed to have been planned, located and carried out in accordance with the provisions of the [Redevelopment Law] Metropolitan Redevelopment Code."

    SECTION 28. Section 3-60A-30 NMSA 1978 (being Laws 1979, Chapter 391, Section 30) is amended to read:

    "3-60A-30. BONDS AS LEGAL INVESTMENTS.--All banks, trust companies, bankers, building and loan associations, savings and loan associations, investment companies and other persons carrying on a banking or investment business; all insurance companies, insurance associations and other persons carrying on an insurance business; and all executors, administrators, curators, trustees and other fiduciaries may legally invest any sinking funds, money or other funds belonging to them or within their control in any bonds or other obligations issued by a [municipality] local government pursuant to the Metropolitan Redevelopment Code or by any agency vested with metropolitan redevelopment project powers under the Redevelopment Law; provided that the bonds and other obligations shall be secured by a pledge of property or revenues or combinations thereof which is of sufficient value to equal the principal and interest of such bonds at maturity. The bonds and other obligations shall be authorized security for all public deposits. Nothing contained in this section with regard to legal investments shall be construed as relieving any person of any duty of exercising reasonable care in selecting securities."

    SECTION 29. Section 3-60A-31 NMSA 1978 (being Laws 1979, Chapter 391, Section 31) is amended to read:

    "3-60A-31. REVENUE BONDS--ISSUANCE--STATUS.--

         A. A [municipality] local government may issue revenue bonds in connection with a financing agreement for the purposes of financing a project authorized by the provisions of the Redevelopment Bonding Law.

         B. A revenue bond shall be a limited obligation of the [municipality] local government, the principal and interest of which shall be payable, subject to the mortgage provisions of the Redevelopment Bonding Law, solely out of the revenues derived from the financing, sale or leasing of the project with respect to which the bonds are issued.

         C. The revenue bond and interest coupons, if any, appurtenant thereto shall never constitute a debt or indebtedness of the [municipality] local government within the meaning of any provision or limitation of the [state] constitution of New Mexico, statutes of the state or a home rule charter of the [municipality] local government, and such bond shall not constitute [nor] or give rise to a pecuniary liability of the [municipality] local government or a charge against its general credit or taxing powers. Such limitations shall be plainly stated on the face of each [such] bond."

    SECTION 30. Section 3-60A-32 NMSA 1978 (being Laws 1979, Chapter 391, Section 32) is amended to read:

    "3-60A-32. REVENUE BONDS--FORM AND TERMS.--

         A. Revenue bonds shall be authorized by ordinance of the [municipality] local government, shall be subject to such maximum net effective interest rate and shall be in such denominations, bear such date, mature at such time not exceeding forty years from their respective dates, bear such interest at a rate, be in such form, carry such registration privileges, be executed in such manner, be payable at such place within or without the state and be subject to such terms of redemption as the authorizing ordinance or supplemental resolution of the [municipality] local government may provide.

         B. The revenue bonds may be sold in one or more series at par or below or above par at public or private sale in such manner and for such price as the [municipality] local government in its discretion shall determine; but the [municipality] local government shall not sell [such] revenue bonds at a price such that the net effective interest rate of the issue of bonds exceeds the maximum net effective interest rate authorized. As an incidental expense of the project, the [municipality] local government in its discretion may employ financial and legal consultants in regard to the financing of the project."

    SECTION 31. Section 3-60A-33 NMSA 1978 (being Laws 1979, Chapter 391, Section 33) is amended to read:

    "3-60A-33. REVENUE BONDS--BOND SECURITY.--The principal of, the interest on and any prior redemption premiums due in connection with the revenue bonds shall be payable from, [secure] secured by a pledge of and constitute a lien on the revenues out of which [such] the bonds shall be made payable. In addition, they may be secured by a mortgage covering all or any part of the project or upon any other property of the user or both by a pledge of the revenues from or a financing agreement for [such] the project or both as the [governing body] local government in its discretion may determine; but no [municipality] local government shall be authorized [hereby] by the Redevelopment Bonding Law to pledge any of its property or to otherwise secure the payment of any bonds with its property, except that the [county or municipality] local government may pledge the property of the project or revenues [therefrom] from the project."

    SECTION 32. Section 3-60A-34 NMSA 1978 (being Laws 1979, Chapter 391, Section 34) is amended to read:

    "3-60A-34. REVENUE BONDS--TERMS OF PROCEEDINGS AND INSTRUMENTS.--[A.] The proceedings under which the revenue bonds are authorized to be issued and any mortgage or trust indenture given to secure the [same] bonds may contain any provisions customarily contained in instruments securing bonds and constituting a covenant with the bondholders, including but not limited to:

         [(1)] A. provisions respecting custody of the proceeds from the sale of the bonds, including their investment and reinvestment until used to defray the cost of the project;

         [(2)] B. provisions respecting the fixing and collection of revenues from the project;

         [(3)] C. the terms to be incorporated in the financing agreement and any mortgage or trust indenture for the project, including without limitation provision for subleasing;

         [(4)] D. the maintenance and insurance of the project;

         [(5)] E. the creation of funds and accounts into which any bond proceeds, revenues and income may be deposited or credited;

         [(6)] F. limitation on the purpose to which the proceeds of any bonds then or thereafter to be issued may be applied;

         [(7)] G. limitation on the issuance of additional bonds, the terms upon which additional bonds are issued and secured, the refunding of bonds and the replacement of bonds;

         [(8)] H. the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated;

         [(9)] I. vesting in a trustee such properties, rights, powers and duties in trust as the [municipality] local government determines and limiting the rights, duties and powers of [such] the trustees; and

         [(10)] J. the rights and remedies available in case of a default to the bondholders or to any trustee under the financing agreement, a mortgage or a trust indenture for the project."

    SECTION 33. Section 3-60A-35 NMSA 1978 (being Laws 1979, Chapter 391, Section 35) is amended to read:

    "3-60A-35. REVENUE BONDS--INVESTMENTS AND BANK DEPOSITS.--

         A. The [municipality] local government may provide that proceeds from the sale of revenue bonds and special funds from the revenues of the project shall be invested and reinvested in such securities and other investments, whether or not any such investment or reinvestment is authorized under any other law of this state, as may be provided in the proceedings under which the bonds are authorized to be issued, including but not limited to:

             (1) bonds or other obligations of the United States;

             (2) bonds or other obligations, the payment of the principal and interest of which is unconditionally guaranteed by the United States;

             (3) obligations issued or guaranteed as to principal and interest by any agency or person controlled or supervised by and acting as an instrumentality of the United States pursuant to authority granted by the congress of the United States;

             (4) obligations issued or guaranteed by any state of the United States or any political subdivision of any such state;

             (5) prime commercial paper;

             (6) prime finance company paper;

             (7) [bankers] banker's acceptances drawn on and accepted by commercial banks;

             (8) repurchase agreements fully secured by obligations issued or guaranteed as to principal and interest by the United States or by any person controlled or supervised by and acting as an instrumentality of the United States pursuant to authority granted by the congress of the United States; and

             (9) certificates of deposit issued by commercial banks.

         B. The [municipality] local government may also provide that the proceeds, funds or investments and the revenues payable under the financing agreement shall be received, held and disbursed by one or more banks or trust companies located within or without this state."

    SECTION 34. Section 3-60A-36 NMSA 1978 (being Laws 1979, Chapter 391, Section 36) is amended to read:

    "3-60A-36. REVENUE BONDS--ACQUISITION OF PROJECT.--

         A. The [municipality] local government may also provide that:

             (1) the project and improvements to be constructed, if any, shall be constructed by the [municipality] local government, the user, the user's designee or any one or more of them on real estate owned by the [municipality] local government, the user or the user's designee, as the case may be; and

             (2) the bond proceeds shall be disbursed by the trustee bank or trust company during construction upon the estimate, order or certificate of the user or the user's designee.

         B. The project, if and to the extent constructed on real estate not owned by the [municipality] local government, may be conveyed or leased or an easement therein granted to the [municipality] local government at any time."

    SECTION 35. Section 3-60A-37 NMSA 1978 (being Laws 1979, Chapter 391, Section 37) is amended to read:

    "3-60A-37. REVENUE BONDS--LIMITED OBLIGATION.--In making such agreements or provisions, a [municipality] local government shall not obligate itself except with respect to the project and the application of the revenues [therefrom] and revenue bond proceeds [therefor] from the project."

    SECTION 36. Section 3-60A-39 NMSA 1978 (being Laws 1979, Chapter 391, Section 39) is amended to read:

    "3-60A-39. REVENUE BONDS--DETERMINATION OF REVENUE.--

         A. Prior to entering into a financing agreement for the project and the issuance of revenue bonds in connection [therewith] with the project, the local [governing body] government shall determine:

             (1) the amount necessary in each year to pay the principal of and the interest on the first bonds proposed to be issued to finance such project;

             (2) the amount necessary to be paid each year into any reserve funds which the [governing body] local government may deem advisable to establish in connection with the retirement of the proposed bonds and the maintenance of the project; and

             (3) the estimated cost of maintaining the project in good repair and keeping it properly insured unless the terms under which the project is to be financed provide that the user shall maintain the project and carry all proper insurance with respect [thereto] to the project.

         B. The determination and findings of the local [governing body] government required to be made by Subsection A of this section shall be set forth in the proceedings under which the proposed revenue bonds are to be issued; but the foregoing amounts need not be expressed in dollars and cents in the financing agreement and proceedings under which the bonds are authorized to be issued."

    SECTION 37. Section 3-60A-40 NMSA 1978 (being Laws 1979, Chapter 391, Section 40) is amended to read:

    "3-60A-40. REVENUE BONDS--FINANCING OF PROJECT.--Prior to the issuance of any revenue bonds authorized by the Redevelopment Bonding Law, the [municipality] local government shall enter into a financing agreement with respect to the project with a user providing for payment to the [municipality] local government of such revenues as upon the basis of such determinations and findings will be sufficient to pay the principal of and interest on the bonds issued to finance the project, to build up and maintain any reserves deemed advisable by the local [governing body] government in connection [therewith] with the project and to pay the costs of maintaining the project in good repair and keeping it properly insured unless the financing agreement obligates the user to pay for the maintenance of and insurance on the project."

    SECTION 38. Section 3-60A-41 NMSA 1978 (being Laws 1979, Chapter 391, Section 41) is amended to read:

    "3-60A-41. OPTION TO PURCHASE.--

         A. A lease may grant the user of a project an option to purchase all or a part of the project at a stipulated purchase price or at a price to be determined upon appraisal as is provided in the lease.

         B. The option may be exercised at such time as the lease may provide.

         C. The [municipality] local government and the user may agree and provide in the lease that all or a part of the rentals paid by the user prior to and at the time of the exercise of [such] the option shall be applied toward the purchase price and shall be in full or partial satisfaction [thereof] of the purchase price."

    SECTION 39. Section 3-60A-42 NMSA 1978 (being Laws 1979, Chapter 391, Section 42) is amended to read:

    "3-60A-42. REVENUE BONDS--REFUNDING.--

         A. Any revenue bonds issued under the provisions of the Redevelopment Bonding Law 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] local government may deem necessary to refund the principal of the bonds to be so refunded, any unpaid interest [thereon] on the bonds and any premiums and incidental expenses necessary to be paid in connection [therewith] with the bonds.

         B. Any such refunding may be effected, whether the bonds to be refunded have matured or shall thereafter mature, either by sale of the refunding bonds and the application of the proceeds [thereof], directly or indirectly, to the payment of the bonds to be refunded [thereby] or by exchange of the refunding bonds for the bonds to be refunded [thereby], but the holders of any bonds to be so 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 by maturity date, option to redeem or otherwise or if they are called for redemption prior to the date on which they are by their terms subject to redemption by option or otherwise.

         C. All refunding bonds issued under authority of the Redevelopment Bonding Law to refund revenue bonds shall be payable solely from revenues out of which bonds to be refunded thereby are payable or from revenues out of which bonds of the same character may be made payable under the Redevelopment Bonding Law or any other law in effect at the time of the refunding."

    SECTION 40. Section 3-60A-43 NMSA 1978 (being Laws 1979, Chapter 391, Section 43) is amended to read:

    "3-60A-43. REVENUE BONDS--APPLICATION OF PROCEEDS.--

         A. The proceeds from the sale of any revenue bonds shall be applied only for the purpose for which the bonds were issued, and, if for any reason any portion of such proceeds are not needed for the purpose for which the bonds were issued, such unneeded portion of the proceeds shall be applied to the payment of the principal of or the interest on the bonds.

         B. The cost of acquiring any project shall be deemed to include the actual cost of acquiring a site and the cost of the construction of any part of a project which may be constructed, including architects' and engineers' fees, the purchase price of any part of a project that may be acquired by purchase and all expenses in connection with the authorization, sale and issuance of the bonds to finance such acquisition and any costs incurred by the [municipality] local government."

          SECTION 41. Section 3-60A-44 NMSA 1978 (being Laws 1979, Chapter 391, Section 44) is amended to read:

    "3-60A-44. NO PAYMENT BY [MUNICIPALITY] LOCAL GOVERNMENT.--

         A. No [municipality] local government or public body shall pay out of its general fund or otherwise contribute any part of the costs of acquiring a project and, unless specifically acquired for uses of the character described in the Redevelopment Bonding Law or unless the land is determined by the governing body to be no longer necessary for other municipal purposes or purposes of a public body, shall not use land already owned by the [municipality] local government or public body or in which the [municipality] local government or public body has an equity for the construction thereon of a project or any part thereof.

         B. The entire cost of acquiring any project shall be paid out of the proceeds from the sale of the revenue bonds, but this provision shall not be construed to prevent a [municipality] local government or public body from accepting donations of property to be used as a part of any project or money to be used for defraying any part of the cost of any project."

    SECTION 42. Section 3-60A-45 NMSA 1978 (being Laws 1979, Chapter 391, Section 45) is amended to read:

    "3-60A-45. NO [MUNICIPAL] LOCAL GOVERNMENT OPERATION.--

         A. When all principal of, interest on and any prior redemption premium due in connection with the revenue bonds issued for a project leased to a user have been paid in full and in the event the option to purchase or option to renew the lease, if any, contained in the lease has not been exercised as to all of the property contained in the project, the lease shall terminate, and the [municipality] local government shall sell such remaining property or devote the [same] property to [municipal] local government purposes other than manufacturing, commercial or industrial.

         B. Any such sale which is not made pursuant to the exercise of an option to purchase by the user of a project shall be conducted in the same manner as is then provided by law governing the issuer's sale of surplus property."

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