HOUSE BILL 530

46th legislature - STATE OF NEW MEXICO - second session, 2004

INTRODUCED BY

Jose A. Campos

AN ACT

RELATING TO ECONOMIC DEVELOPMENT; AMENDING THE STATEWIDE ECONOMIC DEVELOPMENT FINANCE ACT TO INCLUDE A NOT-FOR-PROFIT CORPORATION WITHIN THE DEFINITION OF "ELIGIBLE ENTITY".

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. Section 6-25-3 NMSA 1978 (being Laws 2003, Chapter 349, Section 3) is amended to read:

     "6-25-3. DEFINITIONS.--As used in the Statewide Economic Development Finance Act:

          A. "authority" means the New Mexico finance authority;

          B. "department" means the economic development department;

          C. "economic development bonds" or "bonds" means bonds, notes or other instruments issued by the authority pursuant to the Statewide Economic Development Finance Act;

          D. "economic development goal" means the retention and expansion of existing business enterprises, the attraction of new business enterprises or the creation and promotion of an environment suitable for the support of start-up and emerging business enterprises within the state, whether the business enterprises are for-profit or not-for-profit;

          E. "eligible entity" means the person operating a project; "eligible entity" may include a not-for-profit corporation or a for-profit business enterprise, including a corporation, limited liability company, partnership or other entity, determined by the department to be engaged in a project enterprise that serves an economic development goal and is suitable for financing assistance;

           F. "financing assistance" means financing provided by the authority to eligible entities pursuant to the Statewide Economic Development Finance Act or the New Mexico Finance Authority Act that may be in the form of economic development bonds, loan participations or loan guarantees;

          G. "local school district" means a school district in which is located project property that has been or will be exempted from property taxes pursuant to the Statewide Economic Development Finance Act;

          H. "mortgage" means a mortgage, deed of trust or pledge of any assets as a collateral security;

          I. "opt-in agreement" means an agreement entered into between the department and a qualifying county, a school district and, if applicable, a qualifying municipality that provides for county, local school district and, if applicable, municipal approval of a project, subject to compliance with all local zoning, permitting and other land use regulations, and for payments in lieu of taxes to the qualifying county, local school district and, if applicable, qualifying municipality as provided by the Statewide Economic Development Finance Act;

          J. "payment in lieu of taxes" means the total annual payment, including any state in-lieu payment, paid as compensation for the tax impact of a project, in an amount negotiated and determined in the opt-in agreement between the department and the qualifying county, the local school district and, if applicable, the qualifying municipality, which payment shall be distributed to the county, municipality and local school district in the same proportion as property tax revenues are normally distributed to those recipients;

          K. "project" means the acquisition and use of land, buildings, other improvements and other project property for use by an eligible entity as:

                (1) industrial facilities;

                (2) commercial facilities, including facilities for wholesale sales and services;

                (3) health care facilities, including hospitals, clinics, laboratory facilities and related office facilities;

                (4) educational facilities, including schools;

                (5) arts and cultural facilities, including museums, theaters, arenas or assembly halls; and

                (6) recreational and tourism facilities, including parks, pools, trails, open space and equestrian facilities;

          L. "project property" means any land and improvements thereon, buildings and improvements thereto, machinery and equipment of all kinds necessary to the project, operating capital and other personal property deemed necessary in connection with the project;

          M. "qualifying municipality or county" means a municipality or county that enters into an opt-in agreement;

          N. "state in-lieu payment" means an annual payment, in an amount determined by the department, that will be distributed to a qualifying county, a local school district and, if applicable, a qualifying municipality in the same proportion as property tax revenues are normally distributed to those recipients; and

          O. "tax impact of a project" means the annual reduction in property tax revenue to affected property tax revenue recipients directly resulting from the conveyance of property to the department."