AN ACT
RELATING TO LOCAL GOVERNMENTS;
ENACTING THE CIVIC AND CONVENTION CENTER FUNDING ACT; AUTHORIZING CERTAIN LOCAL
GOVERNMENTAL ENTITIES TO IMPOSE A DAILY FEE ON THE USE OF LODGING FACILITIES;
AUTHORIZING QUALIFIED MUNICIPALITIES TO ISSUE BONDS; PROVIDING PENALTIES.
BE IT ENACTED BY THE LEGISLATURE OF
THE STATE OF NEW MEXICO:
Section 1. SHORT TITLE.--This act may be cited as the
"Civic and Convention Center Funding Act".
Section 2. DEFINITIONS.--As used in the Civic and
Convention Center Funding Act:
A. "convention center fee" means the
fee imposed by a local government entity pursuant to the Civic and Convention
Center Funding Act on vendees for the use of lodging facilities;
B. "county" means a county within
which a qualified municipality is located;
C. "local governmental entity" means a
qualified municipality or a county authorized by the Civic and Convention
Center Funding Act to impose convention center fees;
D. "lodging facility" means a hotel,
motel or motor hotel, a bed and breakfast facility, an inn, a resort or other
facility offering rooms for payment of rent or other consideration;
E. "qualified municipality" means an
incorporated municipality that has a population of more than fifty thousand but
less than seventy thousand according to the most recent federal decennial
census and that is located in a class A county;
F. "room" means a unit of a lodging
facility, such as a hotel room;
G. "vendee" means a person who rents
or pays consideration to a vendor for use of a room; and
H. "vendor" means a person or his
agent who furnishes rooms for occupancy for consideration.
Section 3. AUTHORIZED LOCAL GOVERNMENTAL ENTITIES.--The
following local governmental entities are authorized to impose a convention
center fee:
A. a qualified municipality if the governing
body of the qualified municipality has by resolution authorized the development
and construction of a civic and convention center within the qualified
municipality; and
B. a county, provided that:
(1) a qualified municipality within the county
has enacted an ordinance to impose a convention center fee; and
(2) the qualified municipality and the county
have entered into a joint powers agreement pursuant to the Joint Powers
Agreements Act to collect the revenue from the convention center fee and to
expend the revenue as required in the Civic and Convention Center Funding
Act.
Section 4. IMPOSITION OF CONVENTION CENTER FEE--USE OF
PROCEEDS.--
A. A local governmental entity that has met the
requirements of Section 3 of the Civic and Convention Center Funding Act may
impose by ordinance a fee on the use of a room at a lodging facility within the
local governmental entity; provided that a fee imposed by a county shall only
apply to lodging facilities located within twenty miles of the corporate limits
of the qualified municipality. The fee
may be referred to as the "convention center fee". The amount of the convention center fee shall
not exceed one percent of the gross room revenue for each day the room is
occupied by a vendee.
B. The convention center fee shall be imposed
only for the period necessary for payment of principal and interest on revenue
bonds issued to accomplish the purpose for which the revenue is dedicated, but
the period shall not exceed thirty years from the date of the ordinance
imposing the fee.
C. A local governmental entity shall not
decrease the convention center fee while revenue bonds to which the revenue of
the convention center fee is pledged remain outstanding.
D. A local governmental entity shall dedicate
the revenue from the convention center fee at the time that the ordinance
imposing the fee is enacted and limit the use of the revenue to the following:
(1) the design, construction, equipping,
furnishing, landscaping and other costs associated with the development of a
civic and convention center and adjoining parking garage located within the
qualified municipality;
(2) payments of principal, interest or prior
redemption premiums due in connection with and any other charges pertaining to
revenue bonds authorized by the Civic and Convention Center Funding Act; and
(3) costs of collecting and otherwise
administering the convention center fee; provided that administration costs
shall not be paid until all required payments on the revenue bonds issued
pursuant to the Civic and Convention Center Funding Act are made and that no
more than ten percent of the revenue collected in any fiscal year shall be used
to pay administration costs.
Section 5. EXEMPTIONS.--The convention center fee shall
not apply:
A. if a vendee:
(1) has been a permanent resident of the lodging facility
for a period of at least thirty consecutive days; or
(2) enters into or has entered into a written
agreement for a room at a lodging facility for a period of at least thirty
consecutive days;
B. if the consideration paid by a vendee is less
than two dollars ($2.00) a day;
C. to rooms at institutions of the federal
government, the state or any political subdivision thereof;
D. to rooms at religious, charitable,
educational or philanthropic institutions, including rooms at summer camps
operated by such institutions;
E. to clinics, hospitals or other medical
facilities;
F. to privately owned and operated convalescent
homes or homes for the aged, infirm, indigent or chronically ill; or
G. if the vendor does not offer at least three
rooms at its lodging facility. The
convention center fee shall be imposed on the lodging facilities of a vendor
that owns three or more lodging facilities within local governmental entities
that have imposed a convention center fee, regardless of the number of rooms
available for occupancy.
Section 6. COLLECTION OF CONVENTION CENTER FEE.--
A. A vendor providing rooms within a local
governmental entity that has imposed a convention center fee shall collect the
proceeds on behalf of the local governmental entity and shall act as a trustee
for the fees collected.
B. The convention center fee shall be collected
from vendees in accordance with the ordinance imposing the convention center
fee and shall be accounted for separately from the rent fixed by the vendor for
rooms.
Section 7. AUDIT OF VENDORS.--A local governmental
entity imposing a convention center fee shall include verification of the
collection of the correct convention center fee in any audit of a vendor
conducted pursuant to Section 3-38-17.1 NMSA 1978.
Section 8. FINANCIAL REPORTING.--The chief executive
officer of a local governmental entity imposing a convention center fee shall
report to the local government division of the department of finance and
administration on a quarterly basis any expenditure of convention center fee
funds.
Section 9. ENFORCEMENT.--
A. An action to enforce the Civic and Convention
Center Funding Act may be brought by:
(1) the attorney general or the district attorney
in the county of jurisdiction; or
(2) a vendor who is collecting the proceeds of a
convention center fee in the county of jurisdiction.
B. A district court may issue a writ of mandamus
or order an injunction or other appropriate remedy to enforce the provisions of
the Civic and Convention Center Funding Act.
C. The court shall award costs and reasonable
attorney fees to the prevailing party in a court action to enforce the
provisions of the Civic and Convention Center Funding Act.
Section 10. COLLECTION OF DELINQUENCIES.--
A. A local governmental entity shall by
ordinance provide that a vendor is liable for the payment of the proceeds of
convention center fees that the vendor failed to remit to the local
governmental entity. Failure of the
vendor to collect the fee is not cause for the local governmental entity to
forgive convention center fees due and owed by the vendor. The ordinance shall provide for a civil
penalty for each occurrence of failure to remit convention center fees in an
amount equal to the greater of ten percent of the amount that was not duly
remitted to the local governmental entity or one hundred dollars ($100).
B. The local governmental entity may bring an
action in the district court of the judicial district in which the local
governmental entity is located for collection of amounts due, including without
limitation, penalties on the amounts due on the unpaid principal at a rate not
exceeding one percent per month, the costs of collection and reasonable
attorney fees incurred in connection with the court action to collect the
unpaid convention center fees.
Section 11. LIEN FOR CONVENTION CENTER
FEE--PAYMENT--CERTIFICATE OF LIEN.--
A. The convention center fee assessed by a local
governmental entity constitutes a lien in favor of that local governmental
entity upon the personal and real property of the vendor providing lodging
facilities in that local governmental entity.
The lien may be enforced as provided in
Sections 3-36-1 through 3-36-7 NMSA
1978. Priority of the lien shall be
determined from the date of filing.
B. Under process or order of court, a person
shall not sell the property of a vendor without first ascertaining from the
clerk or treasurer of the local governmental entity in which the vendor is
located the amount of any convention center fees due. Convention center fees due the local
governmental entity shall be paid from the proceeds of the sale before payment
is made to the judgment creditor or any other person with a claim on the sale
proceeds.
C. The clerk or treasurer of the local governmental
entity shall furnish a certificate of lien to a person applying for a
certificate showing the amount of all liens in the records of the local
governmental entity against any vendor pursuant to the Civic and Convention
Center Funding Act.
Section 12. ORDINANCE REQUIREMENTS.--The ordinance
imposing a convention center fee or any ordinance amending the imposition of a
convention center fee shall:
A. state:
(1) the rate of the convention center fee to be
imposed;
(2) the times, place and method for the payment
of the convention center fee proceeds to the local governmental entity;
(3) the accounts and other records to be
maintained in connection with the convention center fee;
(4) a procedure for making refunds and resolving
disputes relating to the convention center fee;
(5) the procedure for preservation and
destruction of records and for their inspection and investigation;
(6) vendor audit requirements;
(7) applicable civil and criminal penalties; and
(8) a procedure of liens, distraint and sales to
satisfy those liens; and
B. provide other rights, privileges, powers,
immunities and other details relating to the collection of the convention
center fee and the remittance of the proceeds to the local governmental entity.
Section 13. REVENUE BONDS.--
A. Revenue bonds may be issued at any time by a
qualified municipality that has imposed a convention center fee to defray wholly
or in part the costs authorized in Paragraph (1) of Subsection D of Section 4
of the Civic and Convention Center Funding Act.
The revenue bonds may be payable from and payment may be secured by a
pledge of and lien on the revenue derived from:
(1) the proceeds of the convention center fee of
the qualified municipality and the proceeds of the convention center fee of a
county that has entered into a joint powers agreement with the qualified
municipality to impose a convention center fee, the proceeds of which shall be
dedicated to the payment of revenue bonds for a civic and convention center in
the qualified municipality;
(2) a civic and convention center to which the
bonds pertain, after provision is made for the payment of the operation and
maintenance expenses of the civic and convention center;
(3) that portion of the proceeds of the occupancy
tax of the qualified municipality available for payment of revenue bonds
pursuant to Paragraph (1) of Subsection B of Section 3-38-23 NMSA 1978;
(4) any other legal available revenues of the
qualified municipality; or
(5) a combination of revenues from the sources
designated in Paragraphs (1) through (4) of this subsection.
B. The bonds shall bear interest at a rate or
rates as authorized in the Public Securities Act, and the first interest
payment may be for any period authorized in the Public Securities Act.
C. Except as otherwise provided in the Civic and
Convention Center Funding Act, revenue bonds authorized in that act shall be
issued in accordance with the provisions of Sections 3-31-2 through 3-31-6 NMSA
1978.
Section 14. REFUNDING BONDS.--
A. A qualified municipality having issued
revenue bonds as authorized in the Civic and Convention Center Funding Act may
issue refunding revenue bonds payable from pledged revenues authorized for the
payment of revenue bonds at the time of the refunding or at the time of the
issuance of the bonds being refunded as the governing body of the qualified
municipality may determine, notwithstanding that the revenue sources or the
pledge of such revenues or both are thereby modified.
B. Refunding bonds may be issued for the purpose
of refinancing, paying and discharging all or a part of outstanding bonds of
any one or more outstanding bond issues:
(1) for the acceleration, deceleration or other
modification of the payment of the obligations, including any capitalization of
any interest in arrears or about to become due for any period not exceeding one
year from the date of the refunding bonds;
(2) for the purpose of reducing interest costs or
effecting other economies;
(3) for the purpose of modifying or eliminating
restrictive contractual limitations pertaining to the issuance of additional
bonds or otherwise concerning the outstanding bonds; or
(4) for any combination of the purposes specified
in Paragraphs (1) through (3) of this subsection.
C. The interest on a bond refunded shall not be
increased to a rate in excess of the rate authorized in the Public Securities
Act and shall be paid as authorized in that act.
D. Refunding bonds for any other purpose
permitted by the Civic and Convention Center Funding Act may be issued
separately or issued in combination in one series or more.
E. Except as otherwise provided in the Civic and
Convention Center Funding Act, refunding bonds authorized in that act shall be
issued in accordance with the provisions of Sections 3-31-10 and 3-31-11 NMSA
1978.
Section 15. PENALTIES.--A local governmental entity shall
by ordinance provide for penalties by creating a misdemeanor and imposing a
fine of not more than five hundred dollars ($500) or imprisonment for not more
than ninety days or both for a violation by any person of the provisions of the
convention center fee ordinance for a failure to pay the fee or to remit the proceeds
thereof to the local governmental entity.
HB 876
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