0001| SENATE BILL 400
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0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003| INTRODUCED BY
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0004| DON KIDD
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0005|
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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| AN ACT
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0011| RELATING TO PRIVATE ACTIVITY BONDS; AMENDING THE PRIVATE
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0012| ACTIVITY BOND ACT TO ADD NEW ISSUING AUTHORITIES AND TO CHANGE
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0013| CERTAIN ALLOCATION PROVISIONS.
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0014|
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0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0016| Section 1. Section 6-20-2 NMSA 1978 (being Laws 1988,
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0017| Chapter 46, Section 2) is amended to read:
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0018| "6-20-2. DEFINITIONS.--
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0019| A. As used in the Private Activity Bond Act:
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0020| (1) "allocation" means an allocation of the
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0021| state ceiling issued by the board to an issuing authority to
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0022| issue private activity bonds;
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0023| (2) "allocation expiration date" means the
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0024| expiration date for issuance of private activity bonds or
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0025| making a mortgage credit certificate election set forth in the
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0001| board allocation, which shall be the earlier of [one hundred
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twenty] ninety days from the date of issuance of the
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0003| allocation or the bond issuance expiration date for the
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0004| calendar year of the allocation, [provided, however, that in
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the case of allocations issued pursuant to Subsection A or B of
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Section 3 of the Private Activity Bond Act, "allocation
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expiration date" means July 1 of the calendar year of the
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allocation] subject to extension pursuant to Section 6-20-10
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0009| NMSA 1978;
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0010| (3) "board" means the state board of finance;
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0011| (4) "bond counsel" means an attorney or a firm
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0012| of attorneys listed in the most recently available "directory
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0013| of municipal bond dealers of the United States", published by
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0014| the bond buyer and commonly known as the "red book", in the
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0015| section listing municipal bond attorneys of the United States,
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0016| or the successor publication thereto;
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0017| (5) "bond issuance expiration date" means the
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0018| date, not later than [December 26] the last business day of
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0019| a calendar year, selected annually by the board upon which all
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0020| unexpired allocations issued for the calendar year shall expire
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0021| except to the extent that any unexpired allocation has been
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0022| used by an issuing authority prior to such date to issue
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0023| private activity bonds or make a mortgage credit certificate
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0024| election;
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0025| (6) "carryforward election allocation" means
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0001| an allocation of the state ceiling issued by the board pursuant
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0002| to the Private Activity Bond Act which an issuing authority may
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0003| elect to treat as a carryforward under Section 146 of the code;
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0004| (7) "carryforward purpose" means:
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0005| (a) the purpose of issuing exempt
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0006| facility bonds;
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0007| (b) the purpose of issuing qualified
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0008| mortgage bonds or mortgage credit certificates;
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0009| (c) the purpose of issuing qualified
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0010| student loan bonds; and
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0011| (d) the purpose of issuing qualified
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0012| redevelopment bonds;
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0013| (8) "code" means the Internal Revenue Code of
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0014| 1986, as amended;
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0015| (9) "confirmation" means the confirmation of
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0016| bond issuance furnished to the board;
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0017| (10) "inducement resolution" means a
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0018| resolution expressing an intent to issue private activity bonds
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0019| for a project;
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0020| (11) "issuing authority" means the state,
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0021| state agencies, counties, [and] incorporated municipalities
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0022| and regional housing authorities and any agency, authority,
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0023| instrumentality, corporation or body that is authorized under
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0024| state law to issue private activity bonds on behalf of a
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0025| county, incorporated municipality or regional housing
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0001| authority;
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0002| (12) "mortgage credit certificate election"
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0003| means an election pursuant to Section 25(c)(2)(A)(ii) of the
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0004| code, by an issuing authority not to issue qualified mortgage
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0005| bonds which the issuing authority is otherwise authorized to
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0006| issue, in exchange for the authority under Section 25 of the
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0007| code to issue mortgage credit certificates in connection with a
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0008| qualified mortgage credit certificate within the meaning of
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0009| Section 25(c)(2) of the code;
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0010| (13) "private activity bond" means:
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0011| (a) any bond or other obligation which
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0012| is a qualified private activity bond under Section 141 of the
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0013| code which is not excluded by Section 146(g), (h) and (i) of
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0014| the code or a bond or other obligation issued under Section
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0015| 1312 or 1313 of the Tax Reform Act of 1986; and
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0016| (b) the private activity portion of
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0017| government use bonds allocated by an issuing authority to an
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0018| issue under Section 141(b)(5) of the code;
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0019| (14) "project" means any facilities which can
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0020| be financed with private activity bonds which are not qualified
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0021| student loan bonds or qualified mortgage bonds;
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0022| (15) "qualified mortgage bond" means a bond or
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0023| obligation which is issued as part of a qualified mortgage
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0024| issue under Section 143 of the code;
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0025| (16) "qualified student loan bond" means any
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0001| bond issued as part of an issue of which the applicable
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0002| percentage or more of the net proceeds thereof are to be used
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0003| directly or indirectly to make or finance student loans under
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0004| programs identified by Section 144(b) of the code;
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0005| (17) "regulations" means the regulations
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0006| promulgated by the internal revenue service under the code [or
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under the Internal Revenue Code of 1954, as amended];
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0008| (18) "request for allocation" means the
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0009| request of an issuing authority pursuant to the Private
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0010| Activity Bond Act;
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0011| (19) "request for carryforward election
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0012| allocation" means the request of an issuing authority pursuant
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0013| to the Private Activity Bond Act;
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0014| (20) "state" means the state of New Mexico;
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0015| (21) "state agency" means the New Mexico
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0016| industrial and agricultural finance authority, the New Mexico
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0017| educational assistance foundation, the New Mexico mortgage
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0018| finance authority, the New Mexico finance authority, the
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0019| border authority and any other agency, authority,
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0020| instrumentality, corporation or body, now existing or hereafter
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0021| created, which under state law [can] is authorized to issue
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0022| private activity bonds on behalf of the state or any state
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0023| agency; provided, a regional housing authority shall not be
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0024| deemed to be a "state agency" for purposes of the Private
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0025| Activity Bond Act;
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0001| (22) "state ceiling" means, for any calendar
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0002| year, the greater of an amount equal to fifty dollars ($50.00)
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0003| multiplied by the state population as shown by the most recent
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0004| census estimate of the resident population of the state
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0005| released by the United States bureau of census before the
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0006| beginning of such calendar year or one hundred fifty million
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0007| dollars ($150,000,000) or such different amount as may be
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0008| provided by Section 146(d) of the code;
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0009| (23) "state private activity bond fund" means
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0010| the fund into which the unallocated and unused state ceiling is
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0011| set aside [on July 1] in each calendar year and from which
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0012| issuing authorities may receive carryforward election
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0013| allocations and allocations to fund the issuance of private
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0014| activity bonds and the making of mortgage credit certificate
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0015| elections; and
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0016| (24) "user" means the user of proceeds of
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0017| private activity bonds for a project.
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0018| B. The word "issue" or "issued", when used in the
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0019| context of an issuing authority issuing a private activity
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0020| bond, means the physical delivery of the evidences of
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0021| indebtedness in exchange for the amount of the purchase price.
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0022| C. References in the Private Activity Bond Act to
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0023| particular sections of the code or the regulations shall be
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0024| deemed also to refer to any successor or recodification
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0025| sections."
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0001| Section 2. Section 6-20-3 NMSA 1978 (being Laws 1988,
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0002| Chapter 46, Section 3) is amended to read:
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0003| "6-20-3. ALLOCATION OF STATE CEILING. [A. Until July 1
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in any calendar year, forty percent of the state ceiling for
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the calendar year shall be allocated to state agencies as a
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group; provided, however, that such allocation shall be made in
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accordance with directives, rules or regulations governing the
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distribution of allocations to be established by the board.
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B. Until July 1 in any calendar year, sixty percent
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of the state ceiling for the calendar year shall be allocated
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to issuing authorities that are not state agencies, as a group;
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provided, however, that such allocations shall be made in
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accordance with directives, rules or regulations governing the
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distribution of allocations to be established by the board.
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C. On July 1 of each calendar year, the amount of
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any allocation issued by the board pursuant to Subsection A or
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B of Section 3 of the Private Activity Bond Act shall expire
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and shall be automatically set aside into the state private
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activity bond fund, except to the extent that an allocation has
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been used by an issuing authority prior to July 1 to issue
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private activity bonds or to make a mortgage credit certificate
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election.
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D. From July 1 through December 31 in any calendar
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year, the board shall prescribe the allocation of the state
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ceiling.] In any calendar year, the board shall prescribe the
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0001| allocation of the state ceiling in accordance with directives,
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0002| rules or regulations governing the distribution of allocations
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0003| to be established by the board."
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0004| Section 3. Section 6-20-5 NMSA 1978 (being Laws 1988,
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0005| Chapter 46, Section 5) is amended to read:
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0006| "6-20-5. REQUEST FOR ALLOCATION.--A request for
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0007| allocation may be submitted to the board at any time and shall
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0008| consist of the following:
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0009| A. a letter from the issuing authority or, in the
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0010| case of a project, a letter from bond counsel for the issuing
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0011| authority or the user stating the amount of the state ceiling
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0012| requested in dollars;
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0013| B. in the case of a project, a copy of the
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0014| inducement resolution, certified by an official of the issuing
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0015| authority, and a statement of bond counsel for the issuing
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0016| authority or the user that the bonds to be issued are private
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0017| activity bonds;
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0018| C. with respect to a request submitted [on or
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after July 1] in any calendar year, in the case of a project,
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0020| a project plan containing the following, if applicable:
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0021| (1) a description of the project and its
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0022| specific location;
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0023| (2) the estimated number of jobs, both
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0024| construction and permanent, [which] that can be filled by
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0025| persons who are residents of the state at the time of
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0001| submission of the request for allocation;
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0002| (3) the [present] current use or
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0003| conditions of the project site;
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0004| (4) the maximum amount of the bonds to be
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0005| issued;
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0006| (5) a proposed starting date and estimated
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0007| completion date of the construction project;
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0008| (6) information relating to the feasibility of
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0009| the proposed project, showing that the project will generate
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0010| revenues and cash flow sufficient to make payments under the
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0011| lease or installment sale agreement;
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0012| (7) the amount and source of private capital
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0013| [which] that will be used for the project in addition to
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0014| bond financing;
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0015| (8) conceptual site plans for the project and
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0016| a map locating the project area;
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0017| (9) in the case of qualified residential
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0018| rental projects, so-called multifamily housing, an explanation
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0019| of why the housing needs of individuals whose income will make
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0020| them eligible under Section 142(d) of the code are not being
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0021| met by existing multifamily housing;
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0022| (10) any other information [which] that
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0023| the user believes will aid the board in considering the request
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0024| for allocation; and
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0025| (11) any other information specifically
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0001| requested by the board;
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0002| D. in the case of a project, a commitment letter
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0003| from the proposed purchaser or underwriter of the bonds; and
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0004| E. in the case of a mortgage credit certificate
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0005| election, a letter from the issuing authority stating that a
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0006| qualified mortgage credit certificate program has been adopted
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0007| by the issuing authority."
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0008| Section 4. Section 6-20-6 NMSA 1978 (being Laws 1988,
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0009| Chapter 46, Section 6) is amended to read:
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0010| "6-20-6. ALLOCATION.--After considering a request for
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0011| allocation, the board may within a reasonable time, as
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0012| determined by the board, issue an allocation [provided,
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however, that an allocation requested by an issuing authority
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pursuant to Subsection A or B of Section 3 of the Private
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Activity Bond Act shall be issued by the board within a reason-
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able time after a request for allocation is submitted to the
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board]. An allocation shall state the amount, in dollars, of
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0019| the state ceiling allocated and shall state the allocation
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0020| expiration date."
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0021| Section 5. Section 6-20-7 NMSA 1978 (being Laws 1988,
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0022| Chapter 46, Section 7) is amended to read:
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0023| "6-20-7. CARRYFORWARD ELECTION ALLOCATIONS.--An issuing
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0024| authority may submit to the board a request for carryforward
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0025| election allocation with respect to private activity bonds
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0001| proposed to be issued to finance bonds for a specified
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0002| carryforward purpose. The date for submission of such requests
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0003| shall be established by the board annually. A separate request
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0004| [must] shall be submitted for each carryforward purpose,
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0005| except that a request for carryforward election allocation with
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0006| respect to qualified student loan bonds or qualified mortgage
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0007| bonds may cover all proposed issuances of student loan bonds
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0008| and qualified mortgage bonds. Not later than [December 26]
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0009| the last business day of a calendar year [or the next busi-
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ness day if December 26 is a holiday], the board shall issue
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0012| carryforward election allocations in amounts determined by the
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0013| board, to the extent that sufficient amounts are available in
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0014| the state private activity bond fund and the requirements of
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0015| the Private Activity Bond Act are satisfied. A request for
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0016| carryforward election allocation shall contain the same
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0017| information and materials required to be included in a request
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0018| for allocation."
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0019|
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0020|
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0021| FORTY-THIRD LEGISLATURE
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0022| FIRST SESSION, 1997
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0023|
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0024|
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0025| February 11, 1997
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0001|
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0002| Mr. President:
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0003|
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0004| Your CORPORATIONS & TRANSPORTATION COMMITTEE, to
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0005| whom has been referred
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0006|
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0007| SENATE BILL 400
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0008|
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0009| has had it under consideration and reports same with
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0010| recommendation that it DO PASS, and thence referred to the
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0011| WAYS & MEANS COMMITTEE.
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0012|
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0013| Respectfully submitted,
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0014|
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0015|
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0016|
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0017|
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0018| __________________________________
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0019| Roman M. Maes, III, Chairman
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0020|
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0021|
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0022|
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0023| Adopted_______________________ Not
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0024| Adopted_______________________
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0025| (Chief Clerk) (Chief Clerk)
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0001|
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0002|
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0003| Date ________________________
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0004|
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0005|
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0006| The roll call vote was 7 For 0 Against
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0007| Yes: 7
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0008| No: None
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0009| Excused: Griego, Robinson, Wilson
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0010| Absent: None
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0011|
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0012|
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0013| S0400CT1
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0014|
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0015|
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0016|
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0017| FORTY-THIRD LEGISLATURE
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0018| FIRST SESSION, 1997
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0019|
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0020|
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0021| February 19, 1997
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0022|
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0023| Mr. President:
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0024|
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0025| Your WAYS AND MEANS COMMITTEE, to whom has been
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0001| referred
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0002|
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0003| SENATE BILL 400
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0004|
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0005| has had it under consideration and reports same with
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0006| recommendation that it DO PASS, and thence referred to the
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0007| FINANCE COMMITTEE.
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0008|
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0009| Respectfully submitted,
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0010|
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0011|
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0012|
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0013|
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0014| __________________________________
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0015| Carlos R. Cisneros, Chairman
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0016|
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0017|
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0018|
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0019| Adopted_______________________ Not
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0020| Adopted_______________________
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0021| (Chief Clerk) (Chief Clerk)
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0022|
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0023|
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0024| Date ________________________
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0025|
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0001|
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0002| The roll call vote was 7 For 0 Against
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0003| Yes: 7
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0004| No: 0
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0005| Excused: McSorley, Nava
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0006| Absent: None
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0007|
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0008|
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0009| S0400WM1
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0010|
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