AN ACT
RELATING TO INDUSTRIAL REVENUE BONDS;
PROVIDING CERTAIN NOTIFICATION REQUIREMENTS PRIOR TO ISSUANCE; ALLOWING CERTAIN
COUNTIES TO ISSUE INDUSTRIAL REVENUE BONDS ANYWHERE WITHIN THE COUNTY; AMENDING
SECTIONS OF THE NMSA 1978.
BE IT ENACTED BY THE LEGISLATURE OF
THE STATE OF NEW MEXICO:
Section 1. Section 3-32-6.1 NMSA 1978 (being Laws 1997,
Chapter 216, Section 2 and also Laws 1997, Chapter 226, Section 2) is amended
to read:
"3-32-6.1. NOTICE TO COUNTY.--
A. Prior to adopting an ordinance issuing
industrial revenue bonds, the municipality shall give notice to the board of
county commissioners and the county assessor of its intent to consider the
matter. The board and the county
assessor shall be notified at least thirty days prior to the meeting at which
final action is to be taken so that comments can be transmitted to the
municipality.
B. The board of county commissioners and the
county assessor shall be able to forward their comments and any concerns to the
city council, but there is no approval required from the board or the county
assessor and they do not have veto over the proposed industrial revenue bond
issuance.
C. The municipality and county shall jointly
develop criteria for issuance of industrial revenue bonds by either government;
provided, however, that industrial revenue bonds may be authorized and issued
before development of the criteria is completed.
D. The municipality shall notify the board of
county commissioners and the county assessor when an industrial revenue bond
has matured, expired or been replaced by a refunding bond."
Section 2. Section 4-59-2 NMSA 1978 (being Laws 1975,
Chapter 286, Section 2, as amended by Laws 2002, Chapter 25, Section 4 and by
Laws 2002, Chapter 37, Section 4) is amended to read:
"4-59-2. DEFINITIONS.--As used in the County
Industrial Revenue Bond Act, unless the context clearly indicates otherwise:
A. "commission" means the governing
body of a county;
B. "county" means a county organized
or incorporated in New Mexico;
C. "501(c)(3) corporation" means a corporation
that demonstrates to the taxation and revenue department that it has been
granted exemption from the federal income tax as an organization described in
Section 501(c)(3) of the Internal Revenue Code of 1986, as amended or
renumbered;
D. "health care service" means the
diagnosis or treatment of sick or injured persons or medical research and
includes the ownership, operation, maintenance, leasing and disposition of
health care facilities, such as hospitals, clinics, laboratories, x-ray centers
and pharmacies;
E. "mortgage" means a mortgage or a
mortgage and deed of trust or the pledge and hypothecation of any assets as
collateral security;
F. "project" means any land and
building or other improvements thereon, the acquisition by or for a New Mexico
corporation of the assets or stock of an existing business or corporation
located outside the state to be relocated within a county but, except as
provided in Paragraph (1) of Subsection A of Section 4-59-4 NMSA 1978, not
within the boundaries of any incorporated municipality in the state, and all
real and personal properties deemed necessary in connection therewith, whether
or not now in existence, which shall be suitable for use by the following or by
any combination of two or more thereof:
(1) an industry for the manufacturing, processing
or assembling of agricultural or manufactured products;
(2) a commercial enterprise in storing,
warehousing, distributing or selling products of agriculture, mining or
industry, but does not include a facility designed for the sale or distribution
to the public of electricity, gas, telephone or other services commonly
classified as public utilities, except for:
(a) water utilities; and
(b) any electric generation facility other than
one for which both location approval and a certificate of convenience and
necessity are required prior to commencing construction or operation of the
facility, pursuant to the Public Utility Act and the Electric Utility Industry
Restructuring Act of 1999;
(3) a business in which all or part of the
activities of the business involve the supplying of services to the general
public or to governmental agencies or to a specific industry or customer;
(4) a nonprofit corporation engaged in health
care services;
(5) a mass transit or other transportation
activity involving the movement of passengers, an industrial park, an office
headquarters and a research facility;
(6) a water distribution or irrigation system,
including without limitation, pumps, distribution lines, transmission lines,
towers, dams and similar facilities and equipment; and
(7) a 501(c)(3) corporation; and
G. "property" means any land,
improvements thereon, buildings and any improvements thereto, machinery and
equipment of any and all kinds necessary to the project, operating capital and
any other personal properties deemed necessary in connection with the
project."
Section 3. Section 4-59-4 NMSA 1978 (being Laws 1975,
Chapter 286, Section 4, as amended) is amended to read:
"4-59-4. ADDITIONAL POWERS CONFERRED ON COUNTIES.--In
addition to any other powers that it may now have, each county shall have the following
powers:
A. to acquire, whether by construction,
purchase, gift or lease, one or more projects, which shall be located within
this state and shall be located within the county outside the boundaries of any
incorporated municipality; provided, however, that:
(1) a class A county with a population of more
than three hundred thousand may acquire projects located anywhere in the
county; and
(2) a county shall not acquire any electricity
generation facility project unless the acquisition is approved by the local
school board of the school district in which a project is located and the board
of county commissioners, the local school board and the person proposing the
project negotiate and determine the amount of an annual in-lieu tax payment to
be made to the school district by the person proposing the project, for the
period that the county owns and leases the project, and provided such approval
shall not be unreasonably withheld;
B. to sell or lease or otherwise dispose of any
or all of its projects upon such terms and conditions as the commission may
deem advisable and as shall not conflict with the provisions of the County
Industrial Revenue Bond Act; and
C. to issue revenue bonds for the purpose of
defraying the cost of acquiring, by construction and purchase or either, any
project and to secure the payment of such bonds, all as provided in the County
Industrial Revenue Bond Act. No county
shall have the power to operate any project as a business or in any manner
except as lessor thereof."
Section 4. Section 4-59-4.1 NMSA 1978 (being Laws 1997,
Chapter 216, Section 4 and also Laws 1997, Chapter 226, Section 4) is amended
to read:
"4-59-4.1. NOTICE TO MUNICIPALITY AND COUNTY
ASSESSOR.--
A. Prior to adopting an ordinance issuing county
industrial revenue bonds, a county shall give notice to the county assessor and
the largest municipality located within the county of its intent to consider
the matter. The county assessor and the
municipality shall be notified at least thirty days prior to the meeting at
which final action is to be taken so that comments can be transmitted to the
county.
B. The county assessor and the municipality
shall be able to forward their comments and any concerns to the board of county
commissioners, but there is no approval required from the municipality or the
county assessor and they do not have veto over the proposed county industrial
revenue bond issuance.
C. The county and the municipality shall jointly
develop criteria for issuance of industrial revenue bonds by either government;
provided, however, that county industrial revenue bonds may be authorized and
issued before development of the criteria is completed.
D. The county shall notify the board of county
commissioners and the county assessor when an industrial revenue bond has
matured, expired or been replaced by a refunding bond."
HB 419
Page 6