0001|                         HOUSE BILL 475
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0002|     42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION,
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0003|     1996
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0004|                         INTRODUCED BY
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0005|                  ROBERTO "BOBBY" J. GONZALES
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0006|     
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0007|                                
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0008|     
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0009|     
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0010|     
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0011|                             AN ACT
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0012|     RELATING TO TAXATION; AMENDING THE LOCAL HOSPITAL GROSS RECEIPTS
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0013|     TAX ACT TO PROVIDE FOR THE PLEDGE OF OTHER COUNTY REVENUES FOR
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0014|     LOCAL HOSPITAL REVENUE BONDS; AUTHORIZING THE ISSUANCE OF
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0015|     REFUNDING BONDS; AMENDING AND ENACTING CERTAIN SECTIONS OF THE
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0016|     NMSA 1978; DECLARING AN EMERGENCY.
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0017|     
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0018|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0019|       Section 1.  Section 7-20C-2 NMSA 1978 (being Laws 1991,
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0020|     Chapter 176, Section 2, as amended) is amended to read:
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0021|       "7-20C-2.  DEFINITIONS.--As used in the Local Hospital
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0022|     Gross Receipts Tax Act:
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0023|            A.  "county" means:
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0024|                 (1)  a class B county having a population of
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0025|     less than twenty-five thousand according to the most recent
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0001|     federal decennial census and having a net taxable value for
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0002|     rate-setting purposes for the 1990 property tax year or any
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0003|     subsequent year of more than two hundred fifty million dollars
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0004|     ($250,000,000); 
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0005|                 (2)  a class B county having a population of
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0006|     less than forty-seven thousand but more than forty-four thousand
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0007|     according to the 1990 federal decennial census and having a net
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0008|     taxable value for rate-setting purposes for the 1992 property
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0009|     tax year of more than three hundred million dollars
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0010|     ($300,000,000) but less than six hundred million dollars
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0011|     ($600,000,000); or
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0012|                 (3)  a class B county <s>[in New Mexico]</s> having a
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0013|     population of less than ten thousand according to the most
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0014|     recent federal decennial census and having a net taxable value
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0015|     for rate-setting purposes for the 1990 property tax year or any
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0016|     subsequent year of more than one hundred million dollars
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0017|     ($100,000,000);
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0018|            B.  "department" means the taxation and revenue
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0019|     department, the secretary of taxation and revenue or any
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0020|     employee of the department exercising authority lawfully
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0021|     delegated to that employee by the secretary;
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0022|            <u>C.  "first one-eighth county gross receipts tax"
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<u></u>0023| <u>    means the first one-eighth of one percent increment of the
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<u></u>0024| <u>    county gross receipts tax imposed under the County Local Option
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<u></u>0025| <u>    Gross Receipts Taxes Act;</u>
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0001|            <s>[C.]</s> <u>D.</u>  "governing body" means the board of
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0002|     county commissioners of a county;
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0003|            <u>E.  "hospital facility revenues" means all or a
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<u></u>0004| <u>    portion of the net revenues of a hospital facility acquired,
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<u></u>0005| <u>    constructed or equipped pursuant to and operated in accordance
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<u></u>0006| <u>    with the Local Hospital Gross Receipts Tax Act</u>;
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0007|            <s>[D.]</s> <u>F.</u>  "local hospital gross receipts tax"
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0008|     means the tax authorized to be imposed under the Local Hospital
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0009|     Gross Receipts Tax Act;
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0010|            <s>[E.]</s> <u>G.</u>  "person" means an individual or any
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0011|     other legal entity; and
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0012|            <s>[F.]</s> <u>H.</u>  "state gross receipts tax" means the
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0013|     gross receipts tax imposed under the Gross Receipts and
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0014|     Compensating Tax Act."
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0015|       Section 2.  Section 7-20C-9 NMSA 1978 (being Laws 1991,
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0016|     Chapter 176, Section 9, as amended) is amended to read:
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0017|       "7-20C-9.  LOCAL HOSPITAL REVENUE BONDS--AUTHORITY TO
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0018|     ISSUE--PLEDGE OF REVENUES.--
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0019|            A.  A county, other than a county described in
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0020|     Paragraph (2) of <u>Subsection A of</u> Section 7-20C-2 NMSA 1978,
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0021|     may issue local hospital revenue bonds pursuant to the Local
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0022|     Hospital Gross Receipts Tax Act for the purpose of acquiring
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0023|     land for and designing, constructing, equipping and furnishing a
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0024|     county hospital facility to be operated by the county or by
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0025|     another party pursuant to a lease with the county.
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0001|            B.  The county issuing the local hospital revenue
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0002|     bonds pursuant to the Local Hospital Gross Receipts Tax Act
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0003|     shall pledge irrevocably all of the net receipts derived from
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0004|     the imposition of the local hospital gross receipts tax and <u>may
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<u></u>0005| <u>    pledge irrevocably any combination of the first one-eighth
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<u></u>0006| <u>    county gross receipts tax, hospital facility revenues and</u> any
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0007|     other revenues as necessary for the payment of principal and
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0008|     interest on the revenue bonds."
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0009|       Section 3.  A new section of the Local Hospital Gross
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0010|     Receipts Tax Act is enacted to read:
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0011|       "[<u>NEW MATERIAL</u>]  REVENUE BONDS--REFUNDING AUTHORIZATION.--
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0012|            A.  Any county having issued revenue bonds as
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0013|     authorized in the Local Hospital Gross Receipts Tax Act may
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0014|     issue refunding revenue bonds pursuant to an ordinance adopted
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0015|     by majority vote of the governing body for the purpose of
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0016|     refinancing, paying and discharging all or any part of such
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0017|     outstanding revenue bonds of any one or more or all outstanding
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0018|     issues: 
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0019|                 (1)  for the acceleration, deceleration or other
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0020|     modification of the payment of such obligations, including
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0021|     without limitation any capitalization of any interest thereon in
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0022|     arrears or about to become due for any period not exceeding one
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0023|     year from the date of the refunding bonds; 
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0024|                 (2)  for the purpose of reducing interest costs
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0025|     or effecting other economies; 
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0001|                 (3)  for the purpose of modifying or eliminating
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0002|     restrictive contractual limitations pertaining to the issuance
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0003|     of additional bonds, otherwise concerning the outstanding bonds
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0004|     or to any facilities relating thereto; or 
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0005|                 (4)  for any combination of such purposes. 
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0006|            B.  To pay the principal and interest on refunding
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0007|     bonds, the county may pledge irrevocably revenues authorized to
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0008|     be pledged to revenue bonds issued pursuant to the Local
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0009|     Hospital Gross Receipts Tax Act. 
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0010|            C.  Bonds for refunding and bonds for any purpose
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0011|     permitted by the Local Hospital Gross Receipts Tax Act may be
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0012|     issued separately or issued in combination in one series or
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0013|     more."
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0014|       Section 4.  A new section of the Local Hospital Gross
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0015|     Receipts Tax Act is enacted to read: 
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0016|       "[<u>NEW MATERIAL</u>]  REFUNDING BONDS--ESCROW--DETAIL.--
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0017|            A.  Refunding bonds issued pursuant to the provisions
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0018|     of the Local Hospital Gross Receipts Tax Act shall be authorized
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0019|     by ordinance.  Any revenue bonds that are refunded under the
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0020|     provisions of this section shall be paid at maturity or on any
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0021|     permitted prior redemption date in the amounts, at the time and
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0022|     places, and if called prior to maturity, in accordance with any
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0023|     applicable notice provisions, all as provided in the proceedings
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0024|     authorizing the issuance of the refunded bonds or otherwise
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0025|     appertaining thereto, except for any such bond that is
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0001|     voluntarily surrendered for exchange or payment by the holder or
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0002|     owner. 
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0003|            B.  Provision shall be made for paying the bonds
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0004|     refunded at the time or places provided in Subsection A of this
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0005|     section.  The principal amount of the refunding bonds may
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0006|     exceed, be less than or be the same as the principal amount of
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0007|     the bonds being refunded as long as provision is duly and
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0008|     sufficiently made for the payment of the refunded bonds.
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0009|            C.  The proceeds of refunding bonds, including any
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0010|     accrued interest and premium appertaining to the sale of
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0011|     refunding bonds, shall either be immediately applied to the
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0012|     retirement of the bonds being refunded or be placed in escrow in
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0013|     a commercial bank or trust company that possesses and is
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0014|     exercising trust powers and that is a member of the federal
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0015|     deposit insurance corporation, to be applied to the payment of
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0016|     the principal of, interest on and any prior redemption premium
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0017|     due in connection with the bonds being refunded; provided that
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0018|     such refunding bond proceeds, including any accrued interest and
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0019|     any premium appertaining to a sale of refunding bonds, may be
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0020|     applied to the establishment and maintenance of a reserve fund
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0021|     and to the payment of expenses incidental to the refunding and
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0022|     the issuance of the refunding bonds, the interest on the
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0023|     refunding bonds and the principal of the refunding bonds or both
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0024|     interest and principal as the county may determine.  Nothing in
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0025|     this section requires the establishment of an escrow if the
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0001|     refunded bonds become due and payable within one year from the
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0002|     date of the refunding bonds and if the amounts necessary to
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0003|     retire the refunded bonds within that time are deposited with
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0004|     the paying agent for the refunded bonds.  Any such escrow shall
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0005|     not necessarily be limited to proceeds of refunding bonds but
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0006|     may include other money available to retire the refunded bonds. 
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0007|     Any proceeds in escrow pending such use may be invested in
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0008|     bills, certificates of indebtedness, notes or bonds that are
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0009|     direct obligations of, or the principal and interest of which
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0010|     obligations are unconditionally guaranteed by the United States
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0011|     of America or in certificates of deposit of banks that are
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0012|     members of the federal deposit insurance corporation, the par
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0013|     value of which certificates of deposit is collateralized by a
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0014|     pledge of obligations of, or the payment of which is
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0015|     unconditionally guaranteed by, the United States of America, the
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0016|     par value of which obligations is at least seventy-five percent
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0017|     of the par value of the certificates of deposit.  Such proceeds
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0018|     and investments in escrow together with any interest or other
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0019|     income to be derived from any such investment shall be in an
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0020|     amount at all times sufficient as to principal, interest, any
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0021|     prior redemption premium due and any charges of the escrow agent
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0022|     payable therefrom to pay the bonds being refunded as they become
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0023|     due at their respective maturities or due at any designated
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0024|     prior redemption date or dates in connection with which the
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0025|     county shall exercise a prior redemption option.  Any purchaser
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0001|     of any refunding bond issued pursuant to the provisions of the
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0002|     Local Hospital Gross Receipts Tax Act is in no manner
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0003|     responsible for the application of the proceeds thereof by the
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0004|     county or any of its officers, agents or employees. 
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0005|            D.  Refunding bonds may be sold at a public or
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0006|     negotiated sale and may bear such additional terms and
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0007|     provisions as may be determined by the county subject to the
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0008|     limitations in the Local Hospital Gross Receipts Tax Act.  The
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0009|     terms, provisions and authorization of the refunding bonds are
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0010|     not subject to the provisions of any other statute, provided
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0011|     that the Public Securities Limitation of Action Act shall be
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0012|     fully applicable to the issuance of refunding bonds."
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0013|       Section 5.  EMERGENCY.--It is necessary for the public
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0014|     peace, health and safety that this act take effect immediately.
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0015|                              
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