0001|                           SENATE BILL 874
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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|                          JOHN ARTHUR SMITH
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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 TAXATION; CHANGING THE PURPOSES AND EXTENDING THE
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0012|     TIME PERIOD FOR WHICH THE COUNTY HOSPITAL EMERGENCY GROSS
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0013|     RECEIPTS TAX MAY BE IMPOSED; AMENDING SECTIONS OF THE NMSA
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0014|     1978.
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0015|     
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0016|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0017|          Section 1.  Section 4-62-1 NMSA 1978 (being Laws 1992,
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0018|     Chapter 95, Section 1, as amended) is amended to read:
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0019|          "4-62-1.  REVENUE BONDS--AUTHORITY TO ISSUE--PLEDGE OF
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0020|     REVENUES--LIMITATION ON TIME OF ISSUANCE.--
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0021|               A.  In addition to any other law authorizing a
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0022|     county to issue revenue bonds, a county may issue revenue bonds
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0023|     pursuant to Chapter 4, Article 62 NMSA 1978 for the purposes
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0024|     specified in this section.  The term "pledged revenues", as
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0025|     used in Chapter 4, Article 62 NMSA 1978, means the revenues,
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0001|     net income or net revenues authorized to be pledged to the
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0002|     payment of particular revenue bonds as specifically provided in
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0003|     Subsections B through <s>[I]</s> <u>J.</u> of this section.
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0004|               B.  Gross receipts tax revenue bonds may be issued
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0005|     for any one or more of the following purposes:
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0006|                    (1)  constructing, purchasing, furnishing,
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0007|     equipping, rehabilitating, making additions to or making
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0008|     improvements to one or more public buildings or purchasing or
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0009|     improving any ground relating thereto, including but not
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0010|     necessarily limited to acquiring and improving parking lots, or
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0011|     any combination of the foregoing;
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0012|                    (2)  acquiring or improving county or public
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0013|     parking lots, structures or facilities or any combination of
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0014|     the foregoing;
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0015|                    (3)  purchasing, acquiring or rehabilitating
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0016|     firefighting equipment or any combination of the foregoing;
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0017|                    (4)  acquiring, extending, enlarging,
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0018|     bettering, repairing, otherwise improving or maintaining storm
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0019|     sewers and other drainage improvements, sanitary sewers, sewage
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0020|     treatment plants or water utilities, including but not limited
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0021|     to the acquisition of rights of way and water and water rights,
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0022|     or any combination of the foregoing;
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0023|                    (5)  reconstructing, resurfacing, maintaining,
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0024|     repairing or otherwise improving existing alleys, streets,
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0025|     roads or bridges or any combination of the foregoing or laying
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0001|     off, opening, constructing or otherwise acquiring new alleys,
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0002|     streets, roads or bridges or any combination of the foregoing;
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0003|     provided that any of the foregoing improvements may include
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0004|     <s>[but are not limited to]</s> the acquisition of rights of way;
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0005|                    (6)  purchasing, acquiring, constructing,
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0006|     making additions to, enlarging, bettering, extending or
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0007|     equipping <s>[any]</s> airport facilities or any combination of the
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0008|     foregoing, including without limitation the acquisition of
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0009|     land, easements or rights of way;
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0010|                    (7)  purchasing or otherwise acquiring or
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0011|     clearing land or purchasing, otherwise acquiring and
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0012|     beautifying land for open space;
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0013|                    (8)  acquiring, constructing, purchasing,
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0014|     equipping, furnishing, making additions to, renovating,
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0015|     rehabilitating, beautifying or otherwise improving public
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0016|     parks, public recreational buildings or other public
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0017|     recreational facilities or any combination of the foregoing; or
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0018|                    (9)  acquiring, constructing, extending,
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0019|     enlarging, bettering, repairing or otherwise improving or
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0020|     maintaining solid waste disposal equipment, equipment for
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0021|     operation and maintenance of sanitary landfills, sanitary
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0022|     landfills, solid waste facilities or any combination of the
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0023|     foregoing.
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0024|          A county may pledge irrevocably any or all of the revenue
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0025|     from the first one-eighth of one percent increment of the
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0001|     county gross receipts tax for payment of principal and interest
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0002|     due in connection with, and other expenses related to, gross
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0003|     receipts tax revenue bonds for any of the purposes authorized
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0004|     in this section or specific purposes or for any area of county
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0005|     government services.  If the county gross receipts tax revenue
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0006|     from the first one-eighth of one percent increment of the
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0007|     county gross receipts tax is pledged for payment of principal
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0008|     and interest as authorized by this subsection, the pledge shall
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0009|     require the revenues received from that increment of the county
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0010|     gross receipts tax to be deposited into a special bond fund for
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0011|     payment of the principal, interest and expenses.  At the end of
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0012|     each fiscal year, any money remaining in the special bond fund

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0013|     after the annual obligations for the bonds are fully met may be
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0014|     transferred to any other fund of the county.
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0015|               C.  Fire protection revenue bonds may be issued for
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0016|     acquiring, extending, enlarging, bettering, repairing,
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0017|     improving, constructing, purchasing, furnishing, equipping or
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0018|     rehabilitating any independent fire district project or
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0019|     facilities, including, where applicable, purchasing, otherwise
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0020|     acquiring or improving the ground for the project or any
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0021|     combination of such purposes.  A county may pledge irrevocably
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0022|     any or all of the county fire protection excise tax revenue for
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0023|     payment of principal and interest due in connection with, and
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0024|     other expenses related to, fire protection revenue bonds. 
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0025|     These bonds may be referred to in Chapter 4, Article 62 NMSA
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0001|     1978 as "fire protection revenue bonds".
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0002|               D.  Environmental revenue bonds may be issued for
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0003|     the acquisition and construction of solid waste facilities,
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0004|     water facilities, wastewater facilities, sewer systems and
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0005|     related facilities.  A county may pledge irrevocably any or all
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0006|     of the county environmental services gross receipts tax revenue
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0007|     for payment of principal and interest due in connection with,
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0008|     and other expenses related to, environmental revenue bonds. 
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0009|     These bonds may be referred to in Chapter 4, Article 62 NMSA
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0010|     1978 as "environmental revenue bonds".
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0011|               E.  Gasoline tax revenue bonds may be issued for the
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0012|     acquisition of rights of way for and the construction,
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0013|     reconstruction, resurfacing, maintenance, repair or other
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0014|     improvement of county roads and bridges.  A county may pledge
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0015|     irrevocably any or all of the county gasoline tax revenue for
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0016|     payment of principal and interest due in connection with, and
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0017|     other expenses related to, county gasoline tax revenue bonds. 
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0018|     These bonds may be referred to in Chapter 4, Article 62 NMSA
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0019|     1978 as "gasoline tax revenue bonds".
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0020|               F.  Utility revenue bonds or joint utility revenue
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0021|     bonds may be issued for acquiring, extending, enlarging,
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0022|     bettering, repairing or otherwise improving water facilities,
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0023|     sewer facilities, gas facilities or electric facilities or for
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0024|     any combination of the foregoing purposes.  A county may pledge
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0025|     irrevocably any or all of the net revenues from the operation
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0001|     of the utility or joint utility for which the particular
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0002|     utility or joint utility bonds are issued to the payment of
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0003|     principal and interest due in connection with, and other
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0004|     expenses related to, utility or joint utility revenue bonds. 
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0005|     These bonds may be referred to in Chapter 4, Article 62 NMSA
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0006|     1978 as "utility revenue bonds" or "joint utility revenue
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0007|     bonds".
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0008|               G.  Project revenue bonds may be issued for
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0009|     acquiring, extending, enlarging, bettering, repairing,
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0010|     improving, constructing, purchasing, furnishing, equipping or
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0011|     rehabilitating any revenue-producing project, including, as
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0012|     applicable, purchasing, otherwise acquiring or improving the
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0013|     ground therefor and including but not limited to acquiring and
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0014|     improving parking lots, or may be issued for any combination of
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0015|     the foregoing purposes.  The county may pledge irrevocably any
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0016|     or all of the net revenues from the operation of the
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0017|     revenue-producing project for which the particular project
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0018|     revenue bonds are issued to the payment of the interest on and
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0019|     principal of the project revenue bonds.  The net revenues of
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0020|     any revenue-producing project may not be pledged to the project
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0021|     revenue bonds issued for any other revenue-producing project
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0022|     that is clearly unrelated in nature; but nothing in this
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0023|     subsection prevents the pledge to any of the project revenue
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0024|     bonds of any revenues received from any existing, future or
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0025|     disconnected facilities and equipment that are related to and
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0001|     that may constitute a part of the particular revenue-producing
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0002|     project. <s>[Any]</s> <u>A</u> general determination by the governing
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0003|     body that <s>[any]</s> facilities or equipment are reasonably
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0004|     related to and <s>[shall]</s> constitute a part of a specified
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0005|     revenue-producing project shall be conclusive if set forth in
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0006|     the proceedings authorizing the project revenue bonds.  As used
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0007|     in Chapter 4, Article 62 NMSA 1978:
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0008|                    (1)  "project revenue bonds" means the bonds
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0009|     authorized in this subsection; and
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0010|                    (2)  "project revenues" means the net revenues
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0011|     of revenue-producing projects that may be pledged to project
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0012|     revenue bonds pursuant to this subsection.
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0013|               H.  Fire district revenue bonds may be issued for
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0014|     acquiring, extending, enlarging, bettering, repairing,
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0015|     improving, constructing, purchasing, furnishing, equipping and
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0016|     rehabilitating any fire district project, including, where
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0017|     applicable, purchasing, otherwise acquiring or improving the
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0018|     ground therefor, or for any combination of the foregoing
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0019|     purposes.  The county may pledge irrevocably any or all of the
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0020|     revenues received by the fire district from the fire protection
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0021|     fund as provided in Sections 59A-53-1 through 59A-53-17 NMSA
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0022|     1978 and any or all of the revenues provided for the operation
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0023|     of the fire district project for which the particular bonds are
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0024|     issued to the payment of the interest on and principal of such
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0025|     bonds.  The revenues of <s>[any]</s> <u>a</u> fire district project shall
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0001|     not be pledged to the bonds issued for <s>[any]</s> <u>a</u> fire
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0002|     district project that clearly is unrelated in its purpose; but
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0003|     nothing in this section shall prevent the pledge to any of such
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0004|     bonds of any such revenues received from any existing, future
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0005|     or of disconnected facilities and equipment that are related to
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0006|     and that may constitute a part of the particular fire district
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0007|     project. <s>[Any]</s> <u>A</u> general determination by the governing
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0008|     body of the county that <s>[any]</s> facilities or equipment are
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0009|     reasonably related to and <s>[shall]</s> constitute a part of a
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0010|     specified fire district project shall be conclusive if set
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0011|     forth in the proceedings authorizing <s>[such]</s> <u>the</u> fire
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0012|     district bonds.
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0013|               I.  Law enforcement protection revenue bonds may be
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0014|     issued for the repair and purchase of law enforcement apparatus
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0015|     and equipment that meet nationally recognized standards.  The
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0016|     county may pledge irrevocably any or all of the revenues
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0017|     received by the county from the law enforcement protection fund
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0018|     distributions pursuant to Sections 29-13-1 through 29-13-9 NMSA
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0019|     1978 to the payment of the interest on and principal of the law
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0020|     enforcement protection revenue bonds.
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0021|               <u>J.  Hospital emergency gross receipts tax revenue
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<u></u>0022| <u>    bonds may be issued for acquisition, equipping, remodeling or
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<u></u>0023| <u>    improvement of a county hospital facility.  A county may pledge
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<u></u>0024| <u>    irrevocably, to the payment of the interest on and principal of
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<u></u>0025| <u>    the hospital emergency gross receipts tax revenue bonds, any or
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<u></u>0001| <u>    all of the revenues received by the county from a county
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<u></u>0002| <u>    hospital emergency gross receipts tax imposed pursuant to
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<u></u>0003| <u>    Section 7-20E-12.1 NMSA 1978 and dedicated to payment of bonds
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<u></u>0004| <u>    or a loan for acquisition, equipping, remodeling or improvement
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<u></u>0005| <u>    of a county hospital facility.</u>
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0006|               <s>[J.]</s> <u>K.</u>  Except for the purpose of refunding
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0007|     previous revenue bond issues, no county may sell revenue bonds
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0008|     payable from pledged revenue after the expiration of two years
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0009|     from the date of the ordinance authorizing the issuance of the
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0010|     bonds or, for bonds to be issued and sold to the New Mexico
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0011|     finance authority as authorized in Subsection C of Section
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0012|     4-62-4 NMSA 1978, after the expiration of two years from the
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0013|     date of the resolution authorizing the issuance of the bonds. 
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0014|     However, any period of time during which a particular revenue
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0015|     bond issue is in litigation shall not be counted in determining
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0016|     the expiration date of that issue.
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0017|               <s>[K.]</s> <u>L.</u>  No bonds may be issued by a county,
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0018|     other than an H class county, a class B county as defined in
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0019|     Section 4-36-8 NMSA 1978 or a class A county as described in
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0020|     Section 4-36-10 NMSA 1978, to acquire, equip, extend, enlarge,
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0021|     better, repair or construct any utility unless the utility is
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0022|     regulated by the New Mexico public utility commission pursuant
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0023|     to the Public Utility Act and the issuance of the bonds is
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0024|     approved by the commission.  For purposes of Chapter 4, Article
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0025|     62 NMSA 1978, a "utility" includes but is not limited to any
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0001|     water, wastewater, sewer, gas or electric utility or joint
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0002|     utility serving the public.  H class counties shall obtain New
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0003|     Mexico public utility commission approvals required by Section
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0004|     3-23-3 NMSA 1978.
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0005|               <s>[L.]</s> <u>M.</u>  Any law that imposes or authorizes the
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0006|     imposition of a county gross receipts tax, a county
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0007|     environmental services gross receipts tax, a county fire
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0008|     protection excise tax, <s>[or]</s> the gasoline tax <u>or the county
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<u></u>0009| <u>    hospital emergency gross receipts tax,</u> or that affects any of
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0010|     those taxes, shall not be repealed or amended in such a manner
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0011|     as to impair any outstanding revenue bonds that are issued
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0012|     pursuant to Chapter 4, Article 62 NMSA 1978 and that may be
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0013|     secured by a pledge of those taxes unless the outstanding
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0014|     revenue bonds have been discharged in full or provision has
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0015|     been fully made therefor.
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0016|               <s>[M.]</s> <u>N.</u>  As used in this section:
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0017|                    (1)  "county environmental services gross
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0018|     receipts tax revenue" means the revenue from the county
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0019|     environmental services gross receipts tax transferred to the
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0020|     county pursuant to Section 7-1-6.13 NMSA 1978;
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0021|                    (2)  "county fire protection excise tax
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0022|     revenue" means the revenue from the county fire protection
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0023|     excise tax transferred to the county pursuant to Section
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0024|     7-1-6.13 NMSA 1978;
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0025|                    (3)  "county gross receipts tax revenue" means
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0001|     the revenue attributable to the first one-eighth of one percent
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0002|     increment of the county gross receipts tax transferred to the
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0003|     county pursuant to Section 7-1-6.13 NMSA 1978 and any
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0004|     distribution related to the first one-eighth of one percent
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0005|     made pursuant to Section 7-1-6.16 NMSA 1978;
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0006|                    (4)  "gasoline tax revenue" means the revenue
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0007|     from that portion of the gasoline tax distributed to the county
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0008|     pursuant to Sections 7-1-6.9 and 7-1-6.26 NMSA 1978; and
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0009|                    (5)  "public building" includes but is not
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0010|     limited to fire stations, police buildings, jails, libraries,
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0011|     museums, auditoriums, convention halls, hospitals, buildings
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0012|     for administrative offices, courthouses and garages for
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0013|     housing, repairing and maintaining county vehicles and
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0014|     equipment.
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0015|               <s>[N.]</s> <u>O.</u>  As used in Chapter 4, Article 62 NMSA
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0016|     1978, the term "bond" means any obligation of a county issued
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0017|     under Chapter 4, Article 62 NMSA 1978, whether designated as a
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0018|     bond, note, loan, warrant, debenture, lease-purchase agreement
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0019|     or other instrument evidencing an obligation of a county to
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0020|     make payments."
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0021|          Section 2.  Section 7-20E-12.1 NMSA 1978 (being Laws 1994,
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0022|     Chapter 14, Section 1, as amended) is amended to read:
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0023|          "7-20E-12.1.  COUNTY HOSPITAL EMERGENCY GROSS RECEIPTS
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0024|     TAX--AUTHORITY TO IMPOSE--USE OF PROCEEDS.--
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0025|               A. <s>[The]</s> <u>A</u> majority of the members of <s>[the]</s>
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0001|     <u>a</u> governing body may enact an ordinance imposing an excise
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0002|     tax on any person engaging in business in the county for the
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0003|     privilege of engaging in business.  The rate of the tax shall
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0004|     be one-fourth of one percent of the gross receipts of the
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0005|     person engaging in business.  The tax shall be imposed for a
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0006|     period of not more than two years from the effective date of
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0007|     the ordinance imposing the tax.  The tax may be imposed for an
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0008|     additional period not to exceed three years from the date of
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0009|     the ordinance imposing the tax for that period. <u>On or after
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<u></u>0010| <u>    July 1, 1997, the tax may be imposed for an additional period
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<u></u>0011| <u>    necessary for payment of bonds or a loan for acquisition,
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<u></u>0012| <u>    equipping, remodeling or improvement of a county hospital
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<u></u>0013| <u>    facility, but the period shall not exceed twenty years from the
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<u></u>0014| <u>    effective date of the ordinance imposing the tax for that
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<u></u>0015| <u>    period.</u>
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0016|               B.  The tax imposed by this section may be referred
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0017|     to as the "county hospital emergency gross receipts tax".
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0018|               C.  At the time of enacting the ordinance imposing
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0019|     the tax authorized in this section:
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0020|                    <u>(1)  if the effective date of the tax is prior
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<u></u>0021| <u>    to July 1, 1997,</u> the governing body shall dedicate the revenue
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0022|     for current operations and maintenance of a hospital owned by
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0023|     the county or a hospital with whom the county has entered into
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0024|     a health care facilities contract; <u>provided that a majority of
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<u></u>0025| <u>    the members of a governing body may enact an ordinance to
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<u></u>0001| <u>    change the purposes for which the revenue from a previously
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<u></u>0002| <u>    imposed tax is dedicated and to dedicate that revenue during
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<u></u>0003| <u>    the remainder of the tax imposition period to payment of bonds
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<u></u>0004| <u>    or a loan for acquisition, equipping, remodeling or improvement
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<u></u>0005| <u>    of a county hospital facility; and
</u>    |
<u></u>0006| <u>                   (2)  if the effective date of the tax is on or
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<u></u>0007| <u>    after July 1, 1997, the governing body shall dedicate the
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<u></u>0008| <u>    revenue for the period of time the tax is imposed to payment of
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<u></u>0009| <u>    a bond or loan for acquisition, equipping, remodeling and
</u>    |
<u></u>0010| <u>    improvement of a county hospital facility</u>.
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0011|               D.  As used in this section, "county" means a
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0012|     class B county with a population of less than ten thousand
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0013|     according to the 1990 federal decennial census and with a net
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0014|     taxable value for rate-setting purposes for the 1993 property
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0015|     tax year in excess of one hundred million dollars
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0016|     ($100,000,000)."
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0017|          Section 3.  EFFECTIVE DATE.--The effective date of the
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0018|     provisions of this act is July 1, 1997.
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0019|                              
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