SENATE FINANCE COMMITTEE SUBSTITUTE FOR
SENATE BILL 614
46th legislature - STATE OF NEW MEXICO - second session, 2004
AN ACT
RELATING TO THE PUBLIC PEACE, HEALTH, SAFETY AND WELFARE; ENACTING THE MUNICIPAL EVENT CENTER FUNDING ACT; AUTHORIZING MUNICIPALITIES TO CHARGE FEES FOR USE OF A MUNICIPAL EVENT CENTER, TO COLLECT A SURCHARGE ON REVENUES ARISING FROM ACTIVITIES AT A MUNICIPAL EVENT CENTER AND TO ISSUE REVENUE BONDS; CREATING EXEMPTIONS FROM THE GROSS RECEIPTS TAX AND THE GOVERNMENTAL GROSS RECEIPTS TAX; DECLARING AN EMERGENCY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. [NEW MATERIAL] SHORT TITLE.--Sections 1 through 11 of this act may be cited as the "Municipal Event Center Funding Act".
Section 2. [NEW MATERIAL] FINDINGS AND PURPOSE.--
A. The legislature finds that:
(1) the costs of acquiring land for and of designing, purchasing, constructing, remodeling, rehabilitating, renovating, improving, equipping, furnishing, operating and maintaining municipal event centers have increased to a level that local financial resources are inadequate to meet all of the costs;
(2) functional and modern municipal event centers are essential in retaining and attracting cultural, educational, entertainment and sporting events to municipalities and the state and are essential for the economic development and prosperity of municipalities and the state; and
(3) even after utilizing local financial resources, municipalities need additional means to provide complete funding for functional and modern municipal event centers.
B. The purpose of the Municipal Event Center Funding Act is to provide an additional method of accessing the capital markets to meet the need for a complete funding package for functional and modern municipal event centers.
Section 3. [NEW MATERIAL] DEFINITIONS.--As used in the Municipal Event Center Funding Act:
A. "bonds" means revenue bonds issued by a municipality to pay for some or all of the costs of acquiring land for and designing, purchasing, constructing, remodeling, rehabilitating, renovating, improving, equipping and furnishing a municipal event center;
B. "chief executive officer" means the mayor or chief administrative officer of a municipality when designated in writing by the mayor to perform duties required by the Municipal Event Center Funding Act;
C. "debt service payments" means all payments of principal, interest, premiums, charges, expenses or other obligations required to be paid by a municipality for retirement of bonds;
D. "event center revenues" means rentals, receipts, fees or other charges paid to a municipality for the rights to use, operate or manage a municipal event center by any person, corporation or other entity;
E. "event center surcharge" means a surcharge to be included in each vendor contract on tickets, parking, souvenirs, concessions, programs, advertising, merchandise, corporate suites or boxes, broadcast rights and all other products or services sold at or related to the municipal event center or related to activities occurring at the municipal event center;
F. "governing body" means the council, commission or other group of elected officials of a municipality in which is vested the legislative authority of a municipality;
G. "municipal event center" means an event center providing seating for a minimum of four thousand people, including land, buildings and related improvements, primarily designed and intended for cultural, educational, entertainment and sporting events;
H. "municipality" means a political subdivision of the state, organized and operating under a home-rule charter or the Municipal Code;
I. "vendor" means every person, corporation, partnership or other entity, including a division or department of a municipality, providing products or services sold at or related to a municipal event center; and
J. "vendor contract" means a contract, agreement or other written arrangement between a municipality and a vendor pursuant to which the vendor provides products or services sold at or related to a municipal event center.
Section 4. [NEW MATERIAL] AUTHORIZATION OF SURCHARGE AND OTHER FEES--USE OF PROCEEDS.--
A. A municipality shall include an event center surcharge in each vendor contract and each vendor contract shall be signed by the chief executive officer.
B. The minimum amount of the event center surcharge established by a municipality shall be five percent and may be any higher percentage provided by ordinance adopted by the governing body.
C. A municipality may establish charges and fees deemed necessary by the governing body or the chief executive officer for the rights to use, operate or manage a municipal event center by any person, corporation or other entity.
D. Event center revenues and event center surcharge receipts may be used by a municipality for all or any portion of:
(1) debt service payments;
(2) costs of constructing, renovating, operating, maintaining or improving the municipal event center; or
(3) costs of collecting and otherwise administering the event center surcharge.
E. A municipality shall establish a fund for construction, renovation, operation, maintenance and improvement of a municipal event center for deposit of all event center revenues and event center surcharge receipts that exceed the required debt service payments, and all receipts deposited in that fund may be used for such purposes and may also be used for any other lawful purpose.
Section 5. [NEW MATERIAL] COLLECTION OF SURCHARGE--REMITTANCE TO THE MUNICIPALITY.--
A. Every vendor shall collect the event center surcharge on behalf of the municipality and shall act as a trustee for the surcharge.
B. The event center surcharge shall be collected by vendors from the users of products or services subject to the surcharge. Users shall be charged separately for the event center surcharge from the cost of the product or service subject to the surcharge or the vendor shall institute accounting controls or procedures sufficient to identify the amount of the surcharge owed to a municipality for each sale, transaction or exchange subject to the surcharge. All receipts from the event center surcharge shall be remitted by vendors to the treasurer of the municipality no later than the tenth day of the month following collection of the receipts.
C. The treasurer of a municipality shall deposit event center revenues and event center surcharge receipts in a separate account and shall act as trustee of the revenues and receipts on behalf of the bondholders so long as any bonds remain outstanding.
Section 6. [NEW MATERIAL] AUDITS.--A municipality shall provide by ordinance a method to either audit or otherwise ensure that vendors subject to the event center surcharge collect and remit to the treasurer of the municipality the full amount of the event center surcharge receipts due to the municipality.
Section 7. [NEW MATERIAL] ENFORCEMENT--PENALTIES.--
A. An action to enforce the imposition and collection of an event center surcharge by a vendor may be brought by a municipality.
B. A district court may issue an appropriate judgment, order or remedy to enforce the provisions of a vendor contract.
C. A judgment issued by a district court requiring event center surcharge receipts to be paid to the treasurer of a municipality by a vendor shall also award interest at a rate of twelve percent on past due amounts, attorney fees and costs to the municipality.
Section 8. [NEW MATERIAL] ISSUANCE OF BONDS.--
A. A municipality may issue bonds in accordance with the procedures set forth in Sections 3-31-1 through 3-31-12 NMSA 1978 to acquire land for and to design, purchase, construct, remodel, renovate, rehabilitate, improve, equip or furnish a municipal event center.
B. Bonds issued by a municipality may be secured by event center revenues, event center surcharge receipts or legally available gross receipts tax revenues distributed to a municipality pursuant to Section 7-1-6.4 or 7-1-6.12 NMSA 1978.
C. An action shall not be brought questioning the legality of the pledge of event center revenues, event center surcharge receipts or gross receipts tax revenues, the ordinance authorizing issuance of the bonds, the bonds, the proceedings, the event center surcharge to be included in each vendor contract or any other matter concerning the bonds after thirty days from the date of publication of the ordinance authorizing issuance of the bonds and pledging event center revenues, event center surcharge receipts or gross receipts tax revenues of a municipality to make the debt service payments.
D. The legislature or a municipality shall not repeal, amend or otherwise modify any law or ordinance that adversely affects or impairs an event center surcharge or any bonds secured by a pledge of event center revenues, event center surcharge receipts or gross receipts tax revenues, unless the bonds have been paid in full or provisions have been made for full payment.
Section 9. [NEW MATERIAL] CUMULATIVE AND COMPLETE AUTHORITY.--The Municipal Event Center Funding Act shall be deemed to provide an additional and alternative method for obtaining funding for a municipal event center, establishing an event center surcharge and completing the acts authorized in that act; shall be regarded as supplemental and additional to powers conferred by other laws of the state; and shall constitute full authority for the exercise of powers granted by that act, including the pledging of event center revenues, event center surcharge receipts or gross receipts tax revenues by a governing body to make debt service payments.
Section 10. [NEW MATERIAL] LIBERAL INTERPRETATION.--The Municipal Event Center Funding Act, being necessary for the welfare of the state and its inhabitants, shall be liberally construed to the effect of the purposes of the act.
Section 11. [NEW MATERIAL] SEVERABILITY.--If any part or application of the Municipal Event Center Funding Act is held invalid, the remainder of its application to other situations or persons shall not be affected.
Section 12. A new section of the Gross Receipts and Compensating Tax Act is enacted to read:
"[NEW MATERIAL] EXEMPTION--GROSS RECEIPTS TAX--GOVERNMENTAL GROSS RECEIPTS TAX--EVENT CENTER SURCHARGE.-- Exempted from the gross receipts tax and from the governmental gross receipts tax are the receipts from selling tickets, parking, souvenirs, concessions, programs, advertising, merchandise, corporate suites or boxes, broadcast rights and all other products or services sold at or related to a municipal event center or related to activities occurring at the municipal event center on which an event center surcharge is imposed pursuant to the Municipal Event Center Funding Act."
Section 13. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.
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