0001|                           SENATE BILL 352
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0002|     43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003|                            INTRODUCED BY
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0004|                          ROMAN M. MAES III
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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; AUTHORIZING MUNICIPAL AND COUNTY LOCAL
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0012|     OPTION CAPITAL IMPROVEMENTS GROSS RECEIPTS TAXES FOR USE
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0013|     SOLELY FOR PAYMENT OF PRINCIPAL AND INTEREST ON BONDS ISSUED
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0014|     FOR LOCAL CAPITAL IMPROVEMENT PURPOSES; REQUIRING VOTER
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0015|     APPROVAL OF THE TAXES.
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0016|     
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0017|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0018|          Section 1.  A new section of the Municipal Local Option
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0019|     Gross Receipts Taxes Act is enacted to read:
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0020|          "[<u>NEW MATERIAL</u>] MUNICIPAL CAPITAL IMPROVEMENTS GROSS
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0021|     RECEIPTS TAX--AUTHORITY TO IMPOSE RATE--USE OF FUNDS--
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0022|     ELECTION.--
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0023|               A.  The majority of the members of the governing
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0024|     body of a municipality may enact an ordinance imposing an
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0025|     excise tax at a rate not to exceed one-fourth of one percent
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<center>- 1 -</center>

0001|     of the gross receipts of any person engaging in business in
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0002|     the municipality for the privilege of engaging in business. 
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0003|     The tax may be imposed in any number of increments of
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0004|     one-sixteenth of one percent not to exceed an aggregate rate
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0005|     of one-fourth of one percent.
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0006|               B.  The tax imposed pursuant to Subsection A of
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0007|     this section may be referred to as the "municipal capital
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0008|     improvements gross receipts tax".
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0009|               C.  The governing body, at the time of enacting an
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0010|     ordinance imposing a rate of tax authorized in Subsection A of
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0011|     this section, shall dedicate the revenue only for the payment
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0012|     of principal of and interest on revenue bonds issued for
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0013|     municipal capital improvements.  The tax shall be imposed for
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0014|     the term of the bonds, and when the outstanding bonds have
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0015|     been paid in full the ordinance imposing the tax shall be
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0016|     repealed.  Municipal capital improvements gross receipts tax
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0017|     revenues collected after the bonds are paid in full and prior
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0018|     to the cessation of the tax shall be used by the municipality
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0019|     for capital improvements prescribed in the ordinance or
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0020|     resolution authorizing the bonds.  The governing body may
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0021|     enact subsequent ordinances imposing the tax, subject to the
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0022|     requirements of this section.
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0023|               D.  An ordinance imposing a municipal capital
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0024|     improvements gross receipts tax shall not go into effect until
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0025|     after an election is held and a majority of the voters of the
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<center>- 2 -</center>

0001|     municipality voting in the election votes in favor of imposing
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0002|     the tax.  The governing body shall adopt a resolution calling
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0003|     for an election within seventy-five days of the date the
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0004|     ordinance is adopted on the question of imposing the tax.  The
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0005|     question shall be submitted to the voters of the municipality
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0006|     as a separate question at a regular municipal election or at a
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0007|     special election called for that purpose by the governing
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0008|     body.  A special municipal election shall be called, conducted
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0009|     and canvassed as provided in the Municipal Election Code.  If
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0010|     a majority of the voters voting on the question approves the
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0011|     ordinance imposing the municipal capital improvements gross
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0012|     receipts tax, then the ordinance shall become effective in
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0013|     accordance with the provisions of the Municipal Local Option
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0014|     Gross Receipts Taxes Act.  If the question of imposing the
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0015|     municipal capital improvements gross receipts tax fails, the
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0016|     governing body shall not again propose the imposition of the
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0017|     tax for a period of one year from the date of the election.
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0018|               E.  A law that imposes or authorizes the imposition
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0019|     of a municipal capital improvements gross receipts tax, or a
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0020|     law supplemental to or otherwise pertaining to the tax, shall
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0021|     not be repealed or amended or otherwise directly or indirectly
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0022|     modified in such a manner as to impair adversely any
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0023|     outstanding revenue bonds that may be secured by a pledge of
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0024|     the municipal capital improvements gross receipts tax unless
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0025|     the outstanding revenue bonds have been discharged in full or
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<center>- 3 -</center>

0001|     provision has been fully made for their discharge."
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0002|          Section 2.  A new section of the County Local Option
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0003|     Gross Receipts Taxes Act is enacted to read:
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0004|          "[<u>NEW MATERIAL</u>] COUNTY CAPITAL IMPROVEMENTS GROSS
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0005|     RECEIPTS TAX--AUTHORITY TO IMPOSE RATE--USE OF FUNDS--
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0006|     ELECTION.--
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0007|               A.  The majority of the members of the governing
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0008|     body of a county may enact an ordinance imposing an excise tax
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0009|     at a rate not to exceed one-fourth of one percent of the gross
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0010|     receipts of any person engaging in business in the county area
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0011|     for the privilege of engaging in business.  The tax may be
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0012|     imposed in any number of increments of one-sixteenth of one
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0013|     percent not to exceed an aggregate rate of one-fourth of one
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0014|     percent.
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0015|               B.  The tax imposed pursuant to Subsection A of this
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0016|     section may be referred to as the "county capital improvements
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0017|     gross receipts tax".
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0018|               C.  The governing body, at the time of enacting an
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0019|     ordinance imposing a rate of tax authorized in Subsection A of
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0020|     this section, shall dedicate the revenue only for the payment
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0021|     of principal of and interest on revenue bonds issued for
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0022|     county capital improvements.  The tax shall be imposed for the
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0023|     term of the bonds, and when the outstanding bonds have been
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0024|     paid in full the ordinance imposing the tax shall be repealed. 
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0025|     County capital improvements gross receipts tax revenues
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<center>- 4 -</center>

0001|     collected after the bonds are paid in full and prior to the
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0002|     cessation of the tax shall be used by the county for capital
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0003|     improvements prescribed in the ordinance or resolution
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0004|     authorizing the bonds.  The governing body may enact
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0005|     subsequent ordinances imposing the tax, subject to the
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0006|     requirements of this section.
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0007|               D.  An ordinance imposing a county capital
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0008|     improvements gross receipts tax shall not go into effect until
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0009|     after an election is held and a majority of the voters of the
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0010|     county area voting in the election votes in favor of imposing
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0011|     the tax.  The governing body shall adopt a resolution calling
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0012|     for an election within seventy-five days of the date the
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0013|     ordinance is adopted on the question of imposing the tax.  The
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0014|     question of whether to impose the tax shall be submitted to
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0015|     the voters of the county area at a general election or at a
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0016|     special election called by the governing body for that
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0017|     purpose.  A special election shall be called, conducted and
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0018|     canvassed in substantially the same manner as provided by law
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0019|     for general elections.  If a majority of the voters voting on
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0020|     the question approves the ordinance imposing the county
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0021|     capital improvements gross receipts tax, then the ordinance
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0022|     shall become effective in accordance with the provisions of
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0023|     the County Local Option Gross Receipts Taxes Act.  If the
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0024|     question of imposing the county capital improvements gross
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0025|     receipts tax fails, the governing body shall not again propose
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<center>- 5 -</center>

0001|     the imposition of the tax for a period of one year from the
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0002|     date of the election.
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0003|               E.  A law that imposes or authorizes the imposition
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0004|     of a county capital improvements gross receipts tax, or a law
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0005|     supplemental to or otherwise pertaining to the tax, shall not
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0006|     be repealed or amended or otherwise directly or indirectly
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0007|     modified in such a manner as to impair adversely any
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0008|     outstanding revenue bonds that may be secured by a pledge of
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0009|     the county capital improvements gross receipts tax unless the
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0010|     outstanding revenue bonds have been discharged in full or
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0011|     provision has been fully made for their discharge."
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0012|          Section 3.  Section 3-31-1 NMSA 1978 (being Laws 1973,
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0013|     Chapter 395, Section 3, as amended) is amended to read:
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0014|          "3-31-1.  REVENUE BONDS--AUTHORITY TO ISSUE--PLEDGE OF 
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0015|     REVENUES--LIMITATION ON TIME OF ISSUANCE.--In addition to any
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0016|     other law and constitutional home-rule powers authorizing a
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0017|     municipality to issue revenue bonds, a municipality may issue
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0018|     revenue bonds pursuant to Chapter 3, Article 31 NMSA 1978 for
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0019|     the purposes specified in this section.  The term "pledged
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0020|     revenues", as used in Chapter 3, Article 31 NMSA 1978, means
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0021|     the revenues, net income or net revenues authorized to be
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0022|     pledged to the payment of particular revenue bonds as
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0023|     specifically provided in Subsections A through I of this
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0024|     section.
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0025|               A.  Utility revenue bonds may be issued for
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<center>- 6 -</center>

0001|     acquiring, extending, enlarging, bettering, repairing or
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0002|     otherwise improving a municipal utility or for any combination
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0003|     of the foregoing purposes.  The municipality may pledge
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0004|     irrevocably any or all of the net revenues from the operation
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0005|     of the municipal utility or of any one or more of any other
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0006|     such municipal utilities for payment of the interest on and
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0007|     principal of the revenue bonds.  These bonds are sometimes
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0008|     referred to in Chapter 3, Article 31 NMSA 1978 as "utility
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0009|     revenue bonds" or "utility bonds".
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0010|               B.  Joint utility revenue bonds may be issued for
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0011|     acquiring, extending, enlarging, bettering, repairing or
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0012|     otherwise improving joint water facilities, sewer facilities,
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0013|     gas facilities or electric facilities or for any combination
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0014|     of the foregoing purposes.  The municipality may pledge
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0015|     irrevocably any or all of the net revenues from the operation
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0016|     of these municipal utilities for the payment of the interest
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0017|     on and principal of the bonds.  These bonds are sometimes
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0018|     referred to in Chapter 3, Article 31 NMSA 1978 as "joint
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0019|     utility revenue bonds" or "joint utility bonds".
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0020|               C.  For the purposes of this subsection, "gross
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0021|     receipts tax revenue bonds" means gross receipts tax revenue
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0022|     bonds or sales tax revenue bonds.  Gross receipts tax revenue
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0023|     bonds may be issued for any one or more of the following
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0024|     purposes:
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0025|                    (1)  constructing, purchasing, furnishing,
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<center>- 7 -</center>

0001|     equipping, rehabilitating, making additions to or making
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0002|     improvements to one or more public buildings or purchasing or
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0003|     improving any ground relating thereto, including but not
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0004|     necessarily limited to acquiring and improving parking lots,
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0005|     or any combination of the foregoing;
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0006|                    (2)  acquiring or improving municipal or
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0007|     public parking lots, structures or facilities or any
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0008|     combination of the foregoing;
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0009|                    (3)  purchasing, acquiring or rehabilitating
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0010|     fire-fighting equipment or any combination of the foregoing;
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0011|                    (4)  acquiring, extending, enlarging,
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0012|     bettering, repairing, otherwise improving or maintaining storm
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0013|     sewers and other drainage improvements, sanitary sewers,
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0014|     sewage treatment plants or water utilities, including but not
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0015|     necessarily limited to the acquisition of rights of way and
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0016|     water and water rights, or any combination of the foregoing;
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0017|                    (5)  reconstructing, resurfacing, maintaining,
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0018|     repairing or otherwise improving existing alleys, streets,
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0019|     roads or bridges or any combination of the foregoing or laying
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0020|     off, opening, constructing or otherwise acquiring new alleys,
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0021|     streets, roads or bridges or any combination of the foregoing;
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0022|     provided that any of the foregoing improvements may include
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0023|     but are not limited to the acquisition of rights of way;
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0024|                    (6)  purchasing, acquiring, constructing,
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0025|     making additions to, enlarging, bettering, extending or
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0001|     equipping any airport facilities or any combination of the
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0002|     foregoing, including without limitation the acquisition of
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0003|     land, easements or rights of way therefor;
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0004|                    (7)  purchasing or otherwise acquiring or
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0005|     clearing land or for purchasing, otherwise acquiring and
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0006|     beautifying land for open space;
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0007|                    (8)  acquiring, constructing, purchasing,
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0008|     equipping, furnishing, making additions to, renovating,
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0009|     rehabilitating, beautifying or otherwise improving public
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0010|     parks, public recreational buildings or other public
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0011|     recreational facilities or any combination of the foregoing;
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0012|     and
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0013|                    (9)  acquiring, constructing, extending,
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0014|     enlarging, bettering, repairing, otherwise improving or
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0015|     maintaining solid waste disposal equipment, equipment for
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0016|     operation and maintenance of sanitary landfills, sanitary
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0017|     landfills, solid waste facilities or any combination of the
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0018|     foregoing.
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0019|          The municipality may pledge irrevocably any or all of the
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0020|     gross receipts tax revenue received by the municipality
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0021|     pursuant to Section 7-1-6.4 <u>or</u> 7-1-6.12 <s>[or 7-19A-6]</s> NMSA
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0022|     1978 <s>[or pursuant to the Municipal Infrastructure Gross
</s>    |
<s></s>0023| <s>    Receipts Tax Act]</s> to the payment of the interest on and
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0024|     principal of the gross receipts tax revenue bonds for any of
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0025|     the purposes authorized in this section or for specific
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0001|     purposes or for any area of municipal government services,
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0002|     including but not limited to those specified in Subsection
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0003|     <s>[B]</s> <u>C</u> of Section 7-19D-9 NMSA 1978, or for public purposes
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0004|     authorized by municipalities having constitutional home-rule
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0005|     charters.  Any law that imposes or authorizes the imposition
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0006|     of a municipal gross receipts tax or that affects the
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0007|     municipal gross receipts tax, or any law supplemental thereto
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0008|     or otherwise appertaining thereto, shall not be repealed or
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0009|     amended or otherwise directly or indirectly modified in such a
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0010|     manner as to impair adversely any outstanding revenue bonds
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0011|     that may be secured by a pledge of such municipal gross
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0012|     receipts tax unless <s>[such]</s> <u>the</u> outstanding revenue bonds
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0013|     have been discharged in full or provision has been fully made
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0014|     therefor.
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0015|               D.  As used in this section, the term "public
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0016|     building" includes but is not limited to fire stations, police
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0017|     buildings, jails, libraries, museums, auditoriums, convention
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0018|     halls, hospitals, buildings for administrative offices, city
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0019|     halls and garages for housing, repairing and maintaining city
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0020|     vehicles and equipment.  As used in Chapter 3, Article 31 NMSA
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0021|     1978, the term "gross receipts tax revenue bonds" means the
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0022|     bonds authorized in Subsection C of this section, and the term
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0023|     "gross receipts tax revenue" means the amount of money
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0024|     distributed to the municipality as authorized by Section
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0025|     7-1-6.4 NMSA 1978 or the amount of money transferred to the
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0001|     municipality as authorized by Section 7-1-6.12 NMSA 1978 for
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0002|     any municipal gross receipts tax imposed pursuant to <s>[Section
</s>    |
<s></s>0003| <s>    7-19-4]</s> <u>Sections 7-19D-9 and 7-19D-11</u> NMSA 1978.  As used
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0004|     in Chapter 3, Article 31 NMSA 1978, the term "bond" means any
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0005|     obligation of a municipality issued under Chapter 3, Article
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0006|     31 NMSA 1978, whether designated as a bond, note, loan,
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0007|     warrant, debenture, lease-purchase agreement or other
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0008|     instrument evidencing an obligation of a municipality to make
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0009|     payments.
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0010|               E.  Gasoline tax revenue bonds may be issued for
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0011|     laying off, opening, constructing, reconstructing,
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0012|     resurfacing, maintaining, acquiring rights of way, repairing
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0013|     and otherwise improving municipal buildings, alleys, streets,
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0014|     public roads and bridges or any combination of the foregoing
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0015|     purposes.  The municipality may pledge irrevocably any or all
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0016|     of the gasoline tax revenue received by the municipality to
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0017|     the payment of the interest on and principal of the gasoline
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0018|     tax revenue bonds.  As used in Chapter 3, Article 31 NMSA
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0019|     1978, "gasoline tax revenue bonds" means the bonds authorized
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0020|     in this subsection, and "gasoline tax revenue" means all or
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0021|     portions of the amounts of tax revenues distributed to
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0022|     municipalities pursuant to Sections 7-1-6.9 <s>[7-1-6.14]</s> and
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0023|     7-1-6.27 NMSA 1978, as from time to time amended and
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0024|     supplemented.
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0025|               F.  Project revenue bonds may be issued for
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0001|     acquiring, extending, enlarging, bettering, repairing,
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0002|     improving, constructing, purchasing, furnishing, equipping and
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0003|     rehabilitating any revenue producing project, including, where
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0004|     applicable, purchasing, otherwise acquiring or improving the
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0005|     ground therefor, including but not necessarily limited to
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0006|     acquiring and improving parking lots, or for any combination
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0007|     of the foregoing purposes.  The municipality may pledge
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0008|     irrevocably any or all of the net revenues from the operation
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0009|     of the revenue producing project for which the particular
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0010|     project revenue bonds are issued to the payment of the
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0011|     interest on and principal of <s>[such]</s> <u>the</u> project revenue
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0012|     bonds.  The net revenues of any revenue producing project may
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0013|     not be pledged to the project revenue bonds issued for any
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0014|     revenue producing project that clearly is unrelated in nature;
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0015|     but nothing in this subsection shall prevent the pledge to any
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0016|     of such project revenue bonds of any such revenues received
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0017|     from any existing, future or disconnected facilities and
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0018|     equipment that are related to and that may constitute a part
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0019|     of the particular revenue producing project.  Any general
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0020|     determination by the governing body that any facilities or
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0021|     equipment is reasonably related to and shall constitute a part
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0022|     of a specified revenue producing project shall be conclusive
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0023|     if set forth in the proceedings authorizing such project
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0024|     revenue bonds.  As used in Chapter 3, Article 31 NMSA 1978:
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0025|                    (1)  "project revenue bonds" means the bonds
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<center>- 12 -</center>

0001|     authorized in this subsection; and
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0002|                    (2)  "project revenues" means the net revenues
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0003|     of revenue producing projects that may be pledged to project
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0004|     revenue bonds pursuant to this subsection.
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0005|               G.  Fire district revenue bonds may be issued for
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0006|     acquiring, extending, enlarging, bettering, repairing,
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0007|     improving, constructing, purchasing, furnishing, equipping and
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0008|     rehabilitating any fire district project, including, where
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0009|     applicable, purchasing, otherwise acquiring or improving the
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0010|     ground therefor, or for any combination of the foregoing
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0011|     purposes.  The municipality may pledge irrevocably any or all
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0012|     of the revenues received by the fire district from the fire
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0013|     protection fund as provided in Sections 59A-53-1 through
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0014|     59A-53-17 NMSA 1978 and any or all of the revenues provided
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0015|     for the operation of the fire district project for which the
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0016|     particular bonds are issued to the payment of the interest on
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0017|     and principal of such bonds.  The revenues of any fire
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0018|     district project shall not be pledged to the bonds issued for
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0019|     any fire district project that clearly is unrelated in its
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0020|     purpose; but nothing in this section shall prevent the pledge
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0021|     to any such bonds of any such revenues received from any
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0022|     existing, future or disconnected facilities and equipment that
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0023|     are related to and that may constitute a part of the
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0024|     particular fire district project.  Any general determination
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0025|     by the governing body of the municipality that any facilities
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<center>- 13 -</center>

0001|     or equipment are reasonably related to and shall constitute a
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0002|     part of a specified fire district project shall be conclusive
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0003|     if set forth in the proceedings authorizing such fire district
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0004|     bonds.
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0005|               H.  Law enforcement protection revenue bonds may be
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0006|     issued for the repair and purchase of law enforcement
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0007|     apparatus and equipment that meet nationally recognized
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0008|     standards.  The municipality may pledge irrevocably any or all
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0009|     of the revenues received by the municipality from the law
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0010|     enforcement protection fund distributions pursuant to
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0011|     <s>[Sections 29-13-1 through 29-13-9 NMSA 1978]</s> <u>the Law
</u>    |
<u></u>0012| <u>    Enforcement Protection Fund Act</u> to the payment of the
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0013|     interest on and principal of the law enforcement protection
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0014|     revenue bonds.
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0015|               <u>I.  Municipal capital improvements gross receipts
</u>    |
<u></u>0016| <u>    tax revenue bonds may be issued for any municipal capital
</u>    |
<u></u>0017| <u>    improvement project authorized for gross receipts tax revenue
</u>    |
<u></u>0018| <u>    bonds pursuant to Subsection C of this section, subject to the
</u>    |
<u></u>0019| <u>    following provisions:
</u>    |
<u></u>0020| <u>    </u>              <u>(1)  the municipality shall pledge
</u>    |
<u></u>0021| <u>    irrevocably all of the revenue received from the municipal
</u>    |
<u></u>0022| <u>    capital improvements gross receipts tax and may pledge
</u>    |
<u></u>0023| <u>    irrevocably any or all of the gross receipts tax revenue
</u>    |
<u></u>0024| <u>    received by the municipality pursuant to Section 7-1-6.4 or 7-
</u>    |
<u></u>0025| <u>    1-6.12 NMSA 1978 to the payment of the interest on and
</u>    |
<center>- 14 -</center>

<u></u>0001| <u>    principal of the municipal capital improvements gross receipts
</u>    |
<u></u>0002| <u>    tax revenue bonds for any of the purposes authorized in this
</u>    |
<u></u>0003| <u>    subsection;
</u>    |
<u></u>0004| <u>    </u>              <u>(2)  municipal capital improvements gross
</u>    |
<u></u>0005| <u>    receipts tax revenues in excess of the annual principal and
</u>    |
<u></u>0006| <u>    interest due on bonds secured by a pledge of the tax may be
</u>    |
<u></u>0007| <u>    accumulated in a debt service reserve account until an amount
</u>    |
<u></u>0008| <u>    equal to the maximum amount permitted pursuant to the
</u>    |
<u></u>0009| <u>    provisions of the United States treasury regulations is
</u>    |
<u></u>0010| <u>    accumulated in the debt service reserve account.  After the
</u>    |
<u></u>0011| <u>    debt service reserve account requirements have been met, the
</u>    |
<u></u>0012| <u>    excess revenue shall be accumulated in an extraordinary
</u>    |
<u></u>0013| <u>    mandatory redemption fund and annually used to redeem the
</u>    |
<u></u>0014| <u>    bonds prior to their stated maturity date;
</u>    |
<u></u>0015| <u>    </u>              <u>(3)  a law that imposes or authorizes the
</u>    |
<u></u>0016| <u>    imposition of a municipal capital improvements gross receipts
</u>    |
<u></u>0017| <u>    tax, or a law supplemental to or otherwise pertaining to the
</u>    |
<u></u>0018| <u>    tax, shall not be repealed or amended or otherwise directly or
</u>    |
<u></u>0019| <u>    indirectly modified in such a manner as to impair adversely
</u>    |
<u></u>0020| <u>    any outstanding revenue bonds that may be secured by a pledge
</u>    |
<u></u>0021| <u>    of the municipal capital improvements gross receipts tax
</u>    |
<u></u>0022| <u>    unless the outstanding revenue bonds have been discharged in
</u>    |
<u></u>0023| <u>    full or provision has been fully made for their discharge;
</u>    |
<u></u>0024| <u>    </u>              <u>(4)  the governing body of the municipality
</u>    |
<u></u>0025| <u>    may appoint a commercial bank trust department to act as
</u>    |
<center>- 15 -</center>

<u></u>0001| <u>    trustee of the proceeds of the tax and to administer the
</u>    |
<u></u>0002| <u>    payment of principal of and interest on the bonds and to
</u>    |
<u></u>0003| <u>    redeem the bonds from the excess revenues deposited in the
</u>    |
<u></u>0004| <u>    extraordinary mandatory redemption fund; and
</u>    |
<u></u>0005| <u>    </u>              <u>(5)  as used in Chapter 3, Article 31 NMSA
</u>    |
<u></u>0006| <u>    1978, "municipal capital improvements gross receipts tax
</u>    |
<u></u>0007| <u>    revenue bonds" means the bonds authorized in this subsection,
</u>    |
<u></u>0008| <u>    and "municipal capital improvements gross receipts tax
</u>    |
<u></u>0009| <u>    revenue" means all of the revenue from the municipal capital
</u>    |
<u></u>0010| <u>    improvements gross receipts tax transferred to the
</u>    |
<u></u>0011| <u>    municipality pursuant to Section 7-1-6.12 NMSA 1978.
</u>    |
<u></u>0012| <u>    </u>         <s>[I.]</s> <u>J.</u>  Except for the purpose of refunding
    |
0013|     previous revenue bond issues, no municipality may sell revenue
    |
0014|     bonds payable from pledged revenues after the expiration of
    |
0015|     two years from the date of the ordinance authorizing the
    |
0016|     issuance of the bonds or, for bonds to be issued and sold to
    |
0017|     the New Mexico finance authority as authorized in Subsection C
    |
0018|     of Section 3-31-4 NMSA 1978, after the expiration of two years
    |
0019|     from the date of the resolution authorizing the issuance of
    |
0020|     the bonds.  However, any period of time during which a
    |
0021|     particular revenue bond issue is in litigation shall not be
    |
0022|     counted in determining the expiration date of that issue." 
    |
0023|          Section 4.  Section 4-62-1 NMSA 1978 (being Laws 1992,
    |
0024|     Chapter 95, Section 1, as amended) is amended to read:
    |
0025|          "4-62-1.  REVENUE BONDS--AUTHORITY TO ISSUE--PLEDGE OF
    |
<center>- 16 -</center>

0001|     REVENUES--LIMITATION ON TIME OF ISSUANCE.--
    |
0002|               A.  In addition to any other law authorizing a
    |
0003|     county to issue revenue bonds, a county may issue revenue
    |
0004|     bonds pursuant to Chapter 4, Article 62 NMSA 1978 for the
    |
0005|     purposes specified in this section.  The term "pledged
    |
0006|     revenues", as used in Chapter 4, Article 62 NMSA 1978, means
    |
0007|     the revenues, net income or net revenues authorized to be
    |
0008|     pledged to the payment of particular revenue bonds as
    |
0009|     specifically provided in Subsections B through <s>[J]</s> <u>K</u> of
    |
0010|     this section.
    |
0011|               B.  Gross receipts tax revenue bonds may be issued
    |
0012|     for <s>[any]</s> one or more of the following purposes:
    |
0013|                    (1)  constructing, purchasing, furnishing,
    |
0014|     equipping, rehabilitating, making additions to or making
    |
0015|     improvements to one or more public buildings or purchasing or
    |
0016|     improving any ground relating thereto, including but not
    |
0017|     necessarily limited to acquiring and improving parking lots,
    |
0018|     or any combination of the foregoing;
    |
0019|                    (2)  acquiring or improving county or public
    |
0020|     parking lots, structures or facilities or any combination of
    |
0021|     the foregoing;
    |
0022|                    (3)  purchasing, acquiring or rehabilitating
    |
0023|     firefighting equipment or any combination of the foregoing;
    |
0024|                    (4)  acquiring, extending, enlarging,
    |
0025|     bettering, repairing, otherwise improving or maintaining storm
    |
<center>- 17 -</center>

0001|     sewers and other drainage improvements, sanitary sewers,
    |
0002|     sewage treatment plants or water utilities, including but not
    |
0003|     limited to the acquisition of rights of way and water and
    |
0004|     water rights or any combination of the foregoing;
    |
0005|                    (5)  reconstructing, resurfacing, maintaining,
    |
0006|     repairing or otherwise improving existing alleys, streets,
    |
0007|     roads or bridges or any combination of the foregoing or laying
    |
0008|     off, opening, constructing or otherwise acquiring new alleys,
    |
0009|     streets, roads or bridges or any combination of the foregoing;
    |
0010|     provided that any of the foregoing improvements may include 
    |
0011|     the acquisition of rights of way;
    |
0012|                    (6)  purchasing, acquiring, constructing,
    |
0013|     making additions to, enlarging, bettering, extending or
    |
0014|     equipping airport facilities or any combination of the
    |
0015|     foregoing, including without limitation the acquisition of
    |
0016|     land, easements or rights of way;
    |
0017|                    (7)  purchasing or otherwise acquiring or
    |
0018|     clearing land or purchasing, otherwise acquiring and
    |
0019|     beautifying land for open space;
    |
0020|                    (8)  acquiring, constructing, purchasing,
    |
0021|     equipping, furnishing, making additions to, renovating,
    |
0022|     rehabilitating, beautifying or otherwise improving public
    |
0023|     parks, public recreational buildings or other public
    |
0024|     recreational facilities or any combination of the foregoing;
    |
0025|     or
    |
<center>- 18 -</center>

0001|                    (9)  acquiring, constructing, extending,
    |
0002|     enlarging, bettering, repairing or otherwise improving or
    |
0003|     maintaining solid waste disposal equipment, equipment for
    |
0004|     operation and maintenance of sanitary landfills, sanitary
    |
0005|     landfills, solid waste facilities or any combination of the
    |
0006|     foregoing.
    |
0007|          A county may pledge irrevocably any or all of the revenue
    |
0008|     from the first one-eighth of one percent increment of the
    |
0009|     county gross receipts tax for payment of principal and
    |
0010|     interest due in connection with, and other expenses related
    |
0011|     to, gross receipts tax revenue bonds for any of the purposes
    |
0012|     authorized in this section or specific purposes or for any
    |
0013|     area of county government services.  If the county gross
    |
0014|     receipts tax revenue from the first one-eighth of one percent
    |
0015|     increment of the county gross receipts tax is pledged for
    |
0016|     payment of principal and interest as authorized by this
    |
0017|     subsection, the pledge shall require the revenues received
    |
0018|     from that increment of the county gross receipts tax to be
    |
0019|     deposited into a special bond fund for payment of the
    |
0020|     principal, interest and expenses.  At the end of each fiscal
    |

0021|     year, any money remaining in the special bond fund after the
    |
0022|     annual obligations for the bonds are fully met may be
    |
0023|     transferred to any other fund of the county.
    |
0024|               C.  Fire protection revenue bonds may be issued for
    |
0025|     acquiring, extending, enlarging, bettering, repairing,
    |
<center>- 19 -</center>

0001|     improving, constructing, purchasing, furnishing, equipping or
    |
0002|     rehabilitating any independent fire district project or
    |
0003|     facilities, including, where applicable, purchasing, otherwise
    |
0004|     acquiring or improving the ground for the project or any
    |
0005|     combination of such purposes.  A county may pledge irrevocably
    |
0006|     any or all of the county fire protection excise tax revenue
    |
0007|     for payment of principal and interest due in connection with,
    |
0008|     and other expenses related to, fire protection revenue bonds. 
    |
0009|     These bonds may be referred to in Chapter 4, Article 62 NMSA
    |
0010|     1978 as "fire protection revenue bonds".
    |
0011|               D.  Environmental revenue bonds may be issued for
    |
0012|     the acquisition and construction of solid waste facilities,
    |
0013|     water facilities, wastewater facilities, sewer systems and
    |
0014|     related facilities.  A county may pledge irrevocably any or
    |
0015|     all of the county environmental services gross receipts tax
    |
0016|     revenue for payment of principal and interest due in
    |
0017|     connection with, and other expenses related to, environmental
    |
0018|     revenue bonds.  These bonds may be referred to in Chapter 4,
    |
0019|     Article 62 NMSA 1978 as "environmental revenue bonds".
    |
0020|               E.  Gasoline tax revenue bonds may be issued for the
    |
0021|     acquisition of rights of way for and the construction,
    |
0022|     reconstruction, resurfacing, maintenance, repair or other
    |
0023|     improvement of county roads and bridges.  A county may pledge
    |
0024|     irrevocably any or all of the county gasoline tax revenue for
    |
0025|     payment of principal and interest due in connection with, and
    |
<center>- 20 -</center>

0001|     other expenses related to, county gasoline tax revenue bonds. 
    |
0002|     These bonds may be referred to in Chapter 4, Article 62 NMSA
    |
0003|     1978 as "gasoline tax revenue bonds".
    |
0004|               F.  Utility revenue bonds or joint utility revenue
    |
0005|     bonds may be issued for acquiring, extending, enlarging,
    |
0006|     bettering, repairing or otherwise improving water facilities,
    |
0007|     sewer facilities, gas facilities or electric facilities or for
    |
0008|     any combination of the foregoing purposes.  A county may
    |
0009|     pledge irrevocably any or all of the net revenues from the
    |
0010|     operation of the utility or joint utility for which the
    |
0011|     particular utility or joint utility bonds are issued to the
    |
0012|     payment of principal and interest due in connection with, and
    |
0013|     other expenses related to, utility or joint utility revenue
    |
0014|     bonds.  These bonds may be referred to in Chapter 4, Article
    |
0015|     62 NMSA 1978 as "utility revenue bonds" or "joint utility
    |
0016|     revenue bonds".
    |
0017|               G.  Project revenue bonds may be issued for
    |
0018|     acquiring, extending, enlarging, bettering, repairing,
    |
0019|     improving, constructing, purchasing, furnishing, equipping or
    |
0020|     rehabilitating any revenue-producing project, including, as
    |
0021|     applicable, purchasing, otherwise acquiring or improving the
    |
0022|     ground therefor and including but not limited to acquiring and
    |
0023|     improving parking lots, or may be issued for any combination
    |
0024|     of the foregoing purposes.  The county may pledge irrevocably
    |
0025|     any or all of the net revenues from the operation of the
    |
<center>- 21 -</center>

0001|     revenue-producing project for which the particular project
    |
0002|     revenue bonds are issued to the payment of the interest on and
    |
0003|     principal of the project revenue bonds.  The net revenues of
    |
0004|     any revenue-producing project may not be pledged to the
    |
0005|     project revenue bonds issued for any other revenue-producing
    |
0006|     project that is clearly unrelated in nature; but nothing in
    |
0007|     this subsection prevents the pledge to any of the project
    |
0008|     revenue bonds of any revenues received from any existing,
    |
0009|     future or disconnected facilities and equipment that are
    |
0010|     related to and that may constitute a part of the particular
    |
0011|     revenue-producing project.  A general determination by the
    |
0012|     governing body that facilities or equipment are reasonably
    |
0013|     related to and constitute a part of a specified revenue-
    |
0014|     producing project shall be conclusive if set forth in the
    |
0015|     proceedings authorizing the project revenue bonds.  As used in
    |
0016|     Chapter 4, Article 62 NMSA 1978:
    |
0017|                    (1)  "project revenue bonds" means the bonds
    |
0018|     authorized in this subsection; and
    |
0019|                    (2)  "project revenues" means the net revenues
    |
0020|     of revenue-producing projects that may be pledged to project
    |
0021|     revenue bonds pursuant to this subsection.
    |
0022|               H.  Fire district revenue bonds may be issued for
    |
0023|     acquiring, extending, enlarging, bettering, repairing,
    |
0024|     improving, constructing, purchasing, furnishing, equipping and
    |
0025|     rehabilitating any fire district project, including, where
    |
<center>- 22 -</center>

0001|     applicable, purchasing, otherwise acquiring or improving the
    |
0002|     ground therefor, or for any combination of the foregoing
    |
0003|     purposes.  The county may pledge irrevocably any or all of the
    |
0004|     revenues received by the fire district from the fire
    |
0005|     protection fund as provided in Sections 59A-53-1 through
    |
0006|     59A-53-17 NMSA 1978 and any or all of the revenues provided
    |
0007|     for the operation of the fire district project for which the
    |
0008|     particular bonds are issued to the payment of the interest on
    |
0009|     and principal of such bonds.  The revenues of a fire district
    |
0010|     project shall not be pledged to the bonds issued for a fire
    |
0011|     district project that clearly is unrelated in its purpose; but
    |
0012|     nothing in this section shall prevent the pledge to any of
    |
0013|     such bonds of any such revenues received from any existing,
    |
0014|     future or <s>[of]</s> disconnected facilities and equipment that
    |
0015|     are related to and that may constitute a part of the
    |
0016|     particular fire district project.  A general determination by
    |
0017|     the governing body of the county that facilities or equipment
    |
0018|     are reasonably related to and constitute a part of a specified
    |
0019|     fire district project shall be conclusive if set forth in the
    |
0020|     proceedings authorizing the fire district bonds.
    |
0021|               I.  Law enforcement protection revenue bonds may be
    |
0022|     issued for the repair and purchase of law enforcement
    |
0023|     apparatus and equipment that meet nationally recognized
    |
0024|     standards.  The county may pledge irrevocably any or all of
    |
0025|     the revenues received by the county from the law enforcement
    |
<center>- 23 -</center>

0001|     protection fund distributions pursuant to <s>[Sections 29-13-1
</s>    |
<s></s>0002| <s>    through 29-13-9 NMSA 1978]</s> <u>the Law Enforcement Protection
</u>    |
<u></u>0003| <u>    Fund Act</u> to the payment of the interest on and principal of
    |
0004|     the law enforcement protection revenue bonds.
    |
0005|               J.  Hospital emergency gross receipts tax revenue
    |
0006|     bonds may be issued for acquisition, equipping, remodeling or
    |
0007|     improvement of a county hospital facility.  A county may
    |
0008|     pledge irrevocably, to the payment of the interest on and
    |
0009|     principal of the hospital emergency gross receipts tax revenue
    |
0010|     bonds, any or all of the revenues received by the county from
    |
0011|     a county hospital emergency gross receipts tax imposed
    |
0012|     pursuant to Section 7-20E-12.1 NMSA 1978 and dedicated to
    |
0013|     payment of bonds or a loan for acquisition, equipping,
    |
0014|     remodeling or improvement of a county hospital facility.
    |
0015|               <u>K.  County capital improvements gross receipts tax
</u>    |
<u></u>0016| <u>    revenue bonds may be issued for any county capital improvement
</u>    |
<u></u>0017| <u>    project authorized for gross receipts tax revenue bonds
</u>    |
<u></u>0018| <u>    pursuant to Subsection B of this section.  The county shall
</u>    |
<u></u>0019| <u>    pledge irrevocably all of the revenue received from the county
</u>    |
<u></u>0020| <u>    capital improvements gross receipts tax and may pledge
</u>    |
<u></u>0021| <u>    irrevocably any or all of the revenue from the first one-
</u>    |
<u></u>0022| <u>    eighth of one percent increment of the county gross receipts
</u>    |
<u></u>0023| <u>    tax to the payment of the interest on and principal of the
</u>    |
<u></u>0024| <u>    county capital improvements gross receipts tax revenue bonds
</u>    |
<u></u>0025| <u>    for any of the purposes authorized in this subsection.  County
</u>    |
<center>- 24 -</center>

<u></u>0001| <u>    capital improvements gross receipts tax revenues in excess of
</u>    |
<u></u>0002| <u>    the annual principal and interest due on bonds secured by a
</u>    |
<u></u>0003| <u>    pledge of the tax may be accumulated in a debt service reserve
</u>    |
<u></u>0004| <u>    account until an amount equal to the maximum amount permitted
</u>    |
<u></u>0005| <u>    pursuant to the provisions of the United States treasury
</u>    |
<u></u>0006| <u>    regulations is accumulated in the debt service reserve
</u>    |
<u></u>0007| <u>    account.  After the debt service reserve account requirements
</u>    |
<u></u>0008| <u>    have been met, the excess revenue shall be accumulated in an
</u>    |
<u></u>0009| <u>    extraordinary mandatory redemption fund and annually used to
</u>    |
<u></u>0010| <u>    redeem the bonds prior to their stated maturity date.  The
</u>    |
<u></u>0011| <u>    governing body of the county may appoint a commercial bank
</u>    |
<u></u>0012| <u>    trust department to act as trustee of the proceeds of the tax
</u>    |
<u></u>0013| <u>    and to administer the payment of principal of and interest on
</u>    |
<u></u>0014| <u>    the bonds and redeem the bonds from the excess revenues
</u>    |
<u></u>0015| <u>    deposited in the extraordinary mandatory redemption fund.
</u>    |
<u></u>0016| <u>    </u>         <s>[K.]</s> <u>L.</u>  Except for the purpose of refunding
    |
0017|     previous revenue bond issues, no county may sell revenue bonds
    |
0018|     payable from pledged revenue after the expiration of two years
    |
0019|     from the date of the ordinance authorizing the issuance of the
    |
0020|     bonds or, for bonds to be issued and sold to the New Mexico
    |
0021|     finance authority as authorized in Subsection C of Section
    |
0022|     4-62-4 NMSA 1978, after the expiration of two years from the
    |
0023|     date of the resolution authorizing the issuance of the bonds. 
    |
0024|     However, any period of time during which a particular revenue
    |
0025|     bond issue is in litigation shall not be counted in
    |
<center>- 25 -</center>

0001|     determining the expiration date of that issue.
    |
0002|               <s>[L.]</s> <u>M.</u>  No bonds may be issued by a county,
    |
0003|     other than an H class county, a class B county as defined in
    |
0004|     Section 4-36-8 NMSA 1978 or a class A county as described in
    |
0005|     Section 4-36-10 NMSA 1978, to acquire, equip, extend, enlarge,
    |
0006|     better, repair or construct any utility unless the utility is
    |
0007|     regulated by the New Mexico public utility commission pursuant
    |
0008|     to the Public Utility Act and the issuance of the bonds is
    |
0009|     approved by the commission.  For purposes of Chapter 4,
    |
0010|     Article 62 NMSA 1978, a "utility" includes but is not limited
    |
0011|     to any water, wastewater, sewer, gas or electric utility or
    |
0012|     joint utility serving the public.  H class counties shall
    |
0013|     obtain New Mexico public utility commission approvals required
    |
0014|     by Section 3-23-3 NMSA 1978.
    |
0015|               <s>[M.]</s> <u>N.</u>  Any law that imposes or authorizes the
    |
0016|     imposition of a county gross receipts tax, <u>a county capital
</u>    |
<u></u>0017| <u>    improvements gross receipts tax</u>, a county environmental
    |
0018|     services gross receipts tax, a county fire protection excise
    |
0019|     tax, the gasoline tax or the county hospital emergency gross
    |
0020|     receipts tax, or that affects any of those taxes, shall not be
    |
0021|     repealed or amended in such a manner as to impair any
    |
0022|     outstanding revenue bonds that are issued pursuant to Chapter
    |
0023|     4, Article 62 NMSA 1978 and that may be secured by a pledge of
    |
0024|     those taxes unless the outstanding revenue bonds have been
    |
0025|     discharged in full or provision has been fully made therefor.
    |
<center>- 26 -</center>

0001|               <s>[N.]</s> <u>O.</u>  As used in this section:
    |
0002|                    <u>(1)  "county capital improvements gross
</u>    |
<u></u>0003| <u>    receipts tax revenue" means the revenue from the county
</u>    |
<u></u>0004| <u>    capital improvements gross receipts tax transferred to the
</u>    |
<u></u>0005| <u>    county pursuant to Section 7-1-6.13 NMSA 1978</u>;
    |
0006|                    <s>[(1)]</s> <u>(2)</u>  "county environmental services
    |
0007|     gross receipts tax revenue" means the revenue from the county
    |
0008|     environmental services gross receipts tax transferred to the
    |
0009|     county pursuant to Section 7-1-6.13 NMSA 1978;
    |
0010|                    <s>[(2)]</s> <u>(3)</u>  "county fire protection excise
    |
0011|     tax revenue" means the revenue from the county fire protection
    |
0012|     excise tax transferred to the county pursuant to Section
    |
0013|     7-1-6.13 NMSA 1978;
    |
0014|                    <s>[(3)]</s> <u>(4)</u>  "county gross receipts tax
    |
0015|     revenue" means the revenue attributable to the first one-
    |
0016|     eighth of one percent increment of the county gross receipts
    |
0017|     tax transferred to the county pursuant to Section 7-1-6.13
    |
0018|     NMSA 1978 and any distribution related to the first one-eighth
    |
0019|     of one percent made pursuant to Section 7-1-6.16 NMSA 1978;
    |
0020|                    <s>[(4)]</s> <u>(5)</u>  "gasoline tax revenue" means
    |
0021|     the revenue from that portion of the gasoline tax distributed
    |
0022|     to the county pursuant to Sections 7-1-6.9 and 7-1-6.26 NMSA
    |
0023|     1978; and
    |
0024|                    <s>[(5)]</s> <u>(6)</u>  "public building" includes but
    |
0025|     is not limited to fire stations, police buildings, jails,
    |
<center>- 27 -</center>

0001|     libraries, museums, auditoriums, convention halls, hospitals,
    |
0002|     buildings for administrative offices, courthouses and garages
    |
0003|     for housing, repairing and maintaining county vehicles and
    |
0004|     equipment.
    |
0005|               <s>[O.]</s> <u>P.</u>  As used in Chapter 4, Article 62 NMSA
    |
0006|     1978, the term "bond" means any obligation of a county issued
    |
0007|     under Chapter 4, Article 62 NMSA 1978, whether designated as a
    |
0008|     bond, note, loan, warrant, debenture, lease-purchase agreement
    |
0009|     or other instrument evidencing an obligation of a county to
    |
0010|     make payments."
    |
0011|                              
    |