SENATE BILL 438

47th legislature - STATE OF NEW MEXICO - first session, 2005

INTRODUCED BY

James G. Taylor

AN ACT

RELATING TO PRIVATE ACTIVITY BONDS; PROVIDING FOR THE ASSESSMENT AND COLLECTION OF APPLICATION, ALLOCATION AND EXTENSION FEES.

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

     Section 1. Section 6-20-5 NMSA 1978 (being Laws 1988, Chapter 46, Section 5) is amended to read:

     "6-20-5. REQUEST FOR ALLOCATION.--A request for allocation may be submitted to the board at any time and shall consist of the following:

          A. a letter from the issuing authority or, in the case of a project, a letter from bond counsel for the issuing authority or the user stating the amount of the state ceiling requested in dollars;

          B. in the case of a project, a copy of the inducement resolution, certified by an official of the issuing authority, and a statement of bond counsel for the issuing authority or the user that the bonds to be issued are private activity bonds;

          C. with respect to a request submitted on or after July 1 in any calendar year, in the case of a project, a project plan containing the following, if applicable:

                (1) a description of the project and its specific location;

                (2) the estimated number of jobs, both construction and permanent, [which] that can be filled by persons who are residents of the state at the time of submission of the request for allocation;

                (3) the [present] current use or conditions of the project site;

                (4) the maximum amount of the bonds to be issued;

                (5) a proposed starting date and estimated completion date of the construction project;

                (6) information relating to the feasibility of the proposed project, showing that the project will generate revenues and cash flow sufficient to make payments under the lease or installment sale agreement;

                (7) the amount and source of private capital [which] that will be used for the project in addition to bond financing;

                (8) conceptual site plans for the project and a map locating the project area;

                (9) in the case of qualified residential rental projects, so-called multifamily housing, an explanation of why the housing needs of individuals whose income will make them eligible under Section 142(d) of the code are not being met by existing multifamily housing;

                (10) any other information [which] that the user believes will aid the board in considering the request for allocation; and

                (11) any other information specifically requested by the board;

          D. in the case of a project, a commitment letter from the proposed purchaser or underwriter of the bonds; [and]

          E. in the case of a mortgage credit certificate election, a letter from the issuing authority stating that a qualified mortgage credit certificate program has been adopted by the issuing authority; and

          F. such applicable application, allocation and extension fees as are required by rule of the board."

     Section 2. Section 6-20-11 NMSA 1978 (being Laws 1988, Chapter 46, Section 11) is amended to read:

     "6-20-11. ADMINISTRATIVE DUTIES OF THE BOARD.--The board:           A. shall maintain the official state records pertaining to the state ceiling, requests for allocation submitted, requests for carryforward election allocations submitted, allocations issued, carryforward election allocations issued, confirmations submitted and any other records required for administration of the Private Activity Bond Act [The board];

          B. may issue, on behalf of the governor, any certification required by the code or the regulations setting forth information concerning the state ceiling and Section 146 of the code; and

          C. may, by rule, require reasonable application, allocation and extension fees to be paid by the issuing authority. Application and extension fees collected by the board shall be deposited in the general fund. Allocation fees shall be held by the board in a liability suspense account and after a determination has been made by the board that the allocation has been used for the intended purpose, may, at the discretion of the board, be refunded in whole or in part to the applicant. Otherwise, the allocation fees shall be deposited in the general fund."

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