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AN ACT

RELATING TO SPECIAL DISTRICTS; ENACTING THE REGIONAL SPACEPORT

DISTRICT ACT; AUTHORIZING THE CREATION OF REGIONAL SPACEPORT

DISTRICTS; PROVIDING FOR THE POWERS AND DUTIES OF REGIONAL

SPACEPORT DISTRICTS; PROVIDING FOR THE POWERS AND

RESPONSIBILITIES OF THE BOARD OF DIRECTORS; PROVIDING FOR

COUNTY AND MUNICIPAL REGIONAL SPACEPORT GROSS RECEIPTS TAXES;

AMENDING THE SPACEPORT DEVELOPMENT ACT.

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

Section 1. SHORT TITLE.--Sections 1 through 13 of this

act may be cited as the "Regional Spaceport District Act".

Section 2. PURPOSES.--The purposes of the Regional

Spaceport District Act are to:

A. serve the public by providing for the

development of a southwest regional spaceport;

B. allow multi-jurisdictional cooperation in the

creation of a southwest regional spaceport;

C. provide for the promotion of the southwest

regional spaceport; and

D. foster tourism in the cities and counties

comprising the district.

Section 3. DEFINITIONS.--As used in the Regional

Spaceport District Act:

A. "authority" means the spaceport authority

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created pursuant to the Spaceport Development Act;

B. "board" means the board of directors of a

district;

C. "bond" means a revenue bond issued by the

authority on behalf of a district;

D. "combination" means two or more governmental

units that exercise joint authority;

E. "district" means a regional spaceport district

that is a political subdivision of the state created pursuant

to the Regional Spaceport District Act;

F. "governmental unit" means the state, a county

or a municipality of the state or an Indian nation, tribe or

pueblo located within the boundaries of the state;

G. "project" means any land, building or other

improvements acquired as part of a spaceport or associated

with a spaceport or to aid commerce in connection with a

spaceport and all real and personal property deemed necessary

in connection with the spaceport;

H. "revenues" means municipal regional spaceport

gross receipts tax revenues and county regional spaceport

gross receipts tax revenues; and

I. "spaceport" means any facility in New Mexico at

which space vehicles may be launched or landed, including all

facilities and support infrastructure related to launch,

landing or payload processing.

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Section 4. CREATION OF DISTRICT.--

A. A combination may create a regional spaceport

district by contract. Upon the issuance by the authority of a

certificate stating that the district has been duly organized

according to the provisions of the Regional Spaceport District

Act, the district may exercise the functions conferred by the

provisions of that act. The authority shall issue the

certificate within thirty days of the filing with the

authority of a copy of a contract that fulfills all the

requirements set forth in this section and a copy of the

bylaws and operating procedures of the district. The

authority shall cause the certificate to be recorded in each

county having territory included in the boundaries of the

district. Upon issuance of the certificate by the authority,

the district shall constitute a separate political subdivision

of the state and shall have all of the duties, privileges,

immunities, rights, liabilities and disabilities of a

political subdivision.

B. A contract establishing a district shall

specify the:

(1) name and purpose of the district;

(2) establishment and organization of the

board in which all legislative power of the district is

vested;

(3) manner of the appointment, term of

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service and qualifications, if any, of the directors and the

procedure for filling vacancies;

(4) officers of the district, the manner of

their appointment and their duties;

(5) voting requirements for action by the

board;

(6) provisions for the distribution,

disposition or division of the assets of the district;

(7) term of the contract and the method by

which it may be terminated or rescinded, but the contract

shall not be terminated or rescinded so long as the authority

has bonds outstanding;

(8) provisions for amendment of the

contract;

(9) limitations on the powers granted by the

Regional Spaceport District Act that may be exercised by the

district; and

(10) conditions required when adding or

deleting parties to the contract.

C. A governmental unit shall not enter into a

contract establishing a district without holding at least

three public hearings in addition to other requirements

imposed by law for public notice. The governmental unit shall

give notice of the time, place and purpose of the public

hearing by publication in a newspaper of general circulation

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in the governmental unit at least ten days prior to the date

of the public hearing.

D. Upon the approval of the governor and the

combination, the state may join in a contract creating a

district. The number of directors of the board to which the

state is entitled shall be established in the contract, but in

no case shall the state be entitled to less than one director.

The governor shall appoint, with the confirmation of the

senate, the director or directors representing the state on

the board for a term as established by the contract that

created the district.

Section 5. BOARD.--

A. All powers, privileges and duties vested in or

imposed upon the district shall be exercised and performed by

the board. The board may delegate its powers by resolution to

an officer or agent of the board, with the exception of the

following:

(1) adoption of board policies and

procedures;

(2) initiation or continuation of legal

action;

(3) establishment of policies regarding the

use of revenues; and

(4) request to the authority to issue bonds.

B. Only an elected official may vote on

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resolutions regarding Paragraph (4) of Subsection A of this

section.

C. The board shall adopt rules to govern its

conduct and provide meaningful opportunities for public input,

which shall include standards and procedures for calling

emergency meetings.

D. The board shall be composed of at least one

director from each governmental unit that is a member of the

district. A director shall be an elected official or the

official's designee. A governmental unit shall not have a

majority of membership on the board, unless there are three or

fewer participating governmental units in the district.

E. A director of the board shall not vote on an

issue when the director has a conflict of interest. A

director of the board, officer of the board or employee of the

board shall not:

(1) acquire a financial interest in a new or

existing business venture or business property of any kind

when the person believes or has reason to believe that the new

financial interest will be directly affected by the official

act;

(2) use confidential information acquired by

virtue of the person's office or employment for the person's

or another's private gain; or

(3) contract with the district without

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public notice and competitive bidding and full disclosure of

the person's financial or other interest in the business that

is party to the contract.

F. The attorney general shall investigate and

prosecute, when appropriate, a complaint brought to the

attorney general's attention involving a violation of

Subsection E of this section. Violation of the provisions of

Subsection E of this section by a director of the board,

officer of the board or employee of the board is grounds for

removal or suspension of the director or officer and

dismissal, demotion or suspension of the employee.

G. In addition to all other powers conferred by

the Regional Spaceport District Act, the board may:

(1) adopt bylaws;

(2) fix the time and place of meetings and

the method of providing notice of the meetings;

(3) make and pass orders and resolutions

necessary for the government and management of the affairs of

the district and the execution of the powers vested in the

district;

(4) adopt and use a seal; and

(5) appoint advisory committees and define

the duties of the committees.

Section 6. POWERS OF THE DISTRICT.--

A. A district is a body politic and corporate. In

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addition to other powers granted to the district pursuant to

the Regional Spaceport District Act, the district may:

(1) have perpetual existence, except as

otherwise provided in the contract;

(2) sue and be sued;

(3) enter into contracts and agreements

affecting the affairs of the district;

(4) pledge all or a portion of the revenues

to the payment of bonds of the authority; and

(5) construct, in connection with the

authority, a regional spaceport within the boundaries of the

district.

B. After the creation of a district, the board may

include property within or exclude property from the

boundaries of the district in the manner provided in this

section. Property shall not be included within the boundaries

of the district unless it is within the boundaries of the

members of the combination at the time of the inclusion.

Prior to inclusion of property in or exclusion of property

from the boundaries of the district, the board shall cause

notice of the proposed inclusion or exclusion to be published

in a newspaper of general circulation within the boundaries of

the district and cause the notice to be mailed to the

authority. The notice shall:

(1) describe the property to be included in

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or excluded from the boundaries of the district;

(2) specify the date, time and place at

which the board shall hold a public hearing on the proposed

inclusion or exclusion; provided that the date of the public

hearing contained in the notice shall be not less than twenty

days after publication of the notice; and

(3) state that persons having objections to

the inclusion or exclusion may appear at the public hearing to

object to the proposed inclusion or exclusion.

C. The board shall hear all objections to the

proposed inclusion or exclusion of property at the time and

place designated in the notice. The board, upon the

affirmative vote of two-thirds of the directors, may adopt a

resolution including or excluding all or a portion of the

property described in the notice. Upon the adoption of the

resolution, the property shall be included within or excluded

from the boundaries of the district as set forth in the

resolution. The board may adopt the resolution without

amending the district's enabling contract. The board shall

file the resolution with the authority, which shall cause the

resolution to be recorded in the real estate records of each

county having territory included in the boundaries of the

district.

Section 7. BONDS.--A district may enter into contracts

with the authority pursuant to which the authority may issue

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bonds under the Spaceport Development Act for the purpose of

financing the planning, designing, engineering and

construction of a regional spaceport or spaceport-related

project. The district shall request that the authority issue

bonds pursuant to resolution of the board, and the bonds shall

be payable solely out of all or a specified portion of the

revenues as designated by the board.

Section 8. INVESTMENTS.--A board shall invest or

deposit funds in accordance with the prudent investor rule set

forth in the Uniform Prudent Investor Act. The board shall

employ the state investment council to invest the funds and

may pay reasonable compensation for investment management

services from the assets of the applicable funds. The board

shall keep accurate and complete records and accounts

concerning the investment portfolio.

Section 9. TAXATION.--

A district has no direct taxation authority.

Section 10. COOPERATIVE POWERS.--A district may

cooperate with a person to:

A. accept legitimate contributions or liens

securing obligations of the district from the person with

respect to the financing, planning, designing, engineering and

construction of a regional spaceport and, in connection with a

loan or advance, enter into contracts establishing the

repayment terms;

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B. enter into contracts regarding the financing,

planning, designing, engineering and construction of a

regional spaceport; and

C. enter into joint operating contracts with the

authority concerning the financing, planning, designing,

engineering and construction of a regional spaceport.

Section 11. NOTICE--OPPORTUNITY FOR COMMENT.--At least

seven business days prior to a regularly scheduled meeting,

the board shall make available to the public written or

electronic notice of the time and agenda of the meeting. The

board shall designate during each meeting a public comment

period and shall offer the public an opportunity to comment.

Section 12. ADDITION OR WITHDRAWAL OF TERRITORY BY A

DISTRICT.--

A. After the creation of a district, a

governmental unit adjacent to but not part of that district

may join the district and determine the territorial area to

become a part of that district. A two-thirds' affirmative

vote by the board shall be required before the governmental

unit may join the district.

B. A governmental unit that is a member of a

district may withdraw from the district by adopting a

resolution to withdraw. The governmental unit shall withdraw

its representative from the board. Real property owned by the

district within the boundaries of the withdrawing governmental

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unit shall remain the property of the district. The

provisions of withdrawal shall be negotiated and agreed to by

the board, the governmental unit and the authority.

Section 13. USE OF REVENUE BY GOVERNMENTAL UNITS.--Each

governmental unit that is a county or municipality and is a

member of a combination shall have enacted a municipal

regional spaceport gross receipts tax or a county regional

spaceport gross receipts tax prior to December 31, 2008. At

least seventy-five percent of the municipal regional spaceport

gross receipts tax or county regional spaceport gross receipts

tax revenues received by each governmental unit must be used

by the district for the financing, planning, designing,

engineering and construction of a regional spaceport. No more

than twenty-five percent of the municipal regional spaceport

gross receipts tax or county regional spaceport gross receipts

tax revenues may be used by the governmental unit enacting the

tax for spaceport-related projects as approved by resolution

of the governmental unit.

Section 14. A new section of the Municipal Local Option

Gross Receipts Taxes Act is enacted to read:

"MUNICIPAL REGIONAL SPACEPORT GROSS RECEIPTS TAX--

AUTHORITY TO IMPOSE--RATE--ELECTION REQUIRED.--

A. A majority of the members of the governing body

of a municipality that desires to become a member of a

regional spaceport district pursuant to the Regional Spaceport

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District Act shall impose by ordinance an excise tax at a rate

not to exceed one-half percent of the gross receipts of a

person engaging in business in the municipality for the

privilege of engaging in business. A tax imposed pursuant to

this section may be imposed by one or more ordinances, each

imposing any number of tax rate increments, but an increment

shall not be less than one-sixteenth percent of the gross

receipts of a person engaging in business in the municipality,

and the aggregate of all rates shall not exceed one-half

percent of the gross receipts of a person engaging in business

in the municipality. The tax may be referred to as the

"municipal regional spaceport gross receipts tax".

B. A governing body, at the time of enacting an

ordinance imposing a tax authorized in Subsection A of this

section, shall dedicate a minimum of seventy-five percent of

the revenue to a regional spaceport district for the

financing, planning, designing, engineering and construction

of a regional spaceport pursuant to the Regional Spaceport

District Act and may dedicate no more than twenty-five percent

of the revenue for spaceport-related projects as approved by

resolution of the governing body of the municipality.

C. An ordinance imposing a municipal regional

spaceport gross receipts tax shall not go into effect until

after an election is held and a majority of the voters of the

municipality voting in the election votes in favor of imposing

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the tax. The governing body shall adopt a resolution calling

for an election within seventy-five days of the date the

ordinance is adopted on the question of imposing the tax. The

question shall be submitted to the voters of the municipality

as a separate question at a regular municipal election or at a

special election called for that purpose by the governing

body. A special municipal election shall be called, conducted

and canvassed as provided in the Municipal Election Code. If

a majority of the voters voting on the question approves the

ordinance imposing the municipal regional spaceport gross

receipts tax, the ordinance shall become effective in

accordance with the provisions of the Municipal Local Option

Gross Receipts Taxes Act. If the question of imposing the

municipal regional spaceport gross receipts tax fails, the

governing body shall not again propose the imposition of an

increment of the tax for a period of one year from the date of

the election.

D. The governing body of a municipality imposing

the municipal regional spaceport gross receipts tax shall

transfer a minimum of seventy-five percent of all proceeds

from the tax to the regional spaceport district of which it is

a member for regional spaceport purposes in accordance with

the provisions of the Regional Spaceport District Act. The

governing body of a municipality imposing the municipal

regional spaceport gross receipts tax may retain no more than

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twenty-five percent of the municipal regional spaceport gross

receipts tax for spaceport-related projects as approved by

resolution of the governing body."

Section 15. A new section of the County Local Option

Gross Receipts Taxes Act is enacted to read:

"COUNTY REGIONAL SPACEPORT GROSS RECEIPTS TAX--AUTHORITY

TO IMPOSE--RATE--ELECTION REQUIRED.--

A. A majority of the members of the governing body

of a county that desires to become a member of a regional

spaceport district pursuant to the Regional Spaceport District

Act shall impose by ordinance an excise tax at a rate not to

exceed one-half percent of the gross receipts of a person

engaging in business in the district area of the county for

the privilege of engaging in business. A tax imposed pursuant

to this section may be imposed by one or more ordinances, each

imposing any number of tax rate increments, but an increment

shall not be less than one-sixteenth percent of the gross

receipts of a person engaging in business in the district area

of the county, and the aggregate of all rates shall not exceed

one-half percent of the gross receipts of a person engaging in

business in the district area of the county. The tax may be

referred to as the "county regional spaceport gross receipts

tax".

B. A governing body, at the time of enacting an

ordinance imposing the tax authorized in Subsection A of this

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section, shall dedicate a minimum of seventy-five percent of

the proceeds of the revenue to the regional spaceport district

for the financing, planning, designing and engineering and

construction of a spaceport or for projects or services of the

district pursuant to the Regional Spaceport District Act and

may dedicate no more than twenty-five percent of the revenue

for spaceport-related projects as approved by resolution of

the governing body of the county.

C. An ordinance imposing a county regional

spaceport gross receipts tax shall not go into effect until

after an election is held and a majority of the voters of the

district area of the county voting in the election votes in

favor of imposing the tax. The governing body shall adopt an

ordinance calling for an election within seventy-five days of

the date the resolution is adopted on the question of imposing

the tax. The question shall be submitted to the voters of the

district area of the county as a separate question at a

general election or at a special election called for that

purpose by the governing body. A special election shall be

called, conducted and canvassed substantially in the same

manner as provided by law for general elections. If a

majority of the voters voting on the question approves the

ordinance imposing the county regional spaceport gross

receipts tax, the ordinance shall become effective in

accordance with the provisions of the County Local Option

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Gross Receipts Taxes Act. If the question of imposing the

county regional spaceport gross receipts tax fails, the

governing body shall not again propose the imposition of an

increment of the tax for a period of one year from the date of

the election.

D. The governing body of a county imposing a

county regional spaceport gross receipts tax shall transfer a

minimum of seventy-five percent of all proceeds from the tax

to the regional spaceport district of which it is a member for

the purposes in accordance with the provisions of the Regional

Spaceport District Act. The governing body of a county

imposing a county regional spaceport gross receipts tax may

retain no more than twenty-five percent of the county regional

spaceport gross receipts tax for spaceport-related projects as

approved by the resolution of the governing body of the

county.

E. As used in this section, "district area of the

county" means that portion of a county that is outside the

boundaries of a municipality and that is within the boundaries

of a regional spaceport district of which the county is a

member; provided that if no municipality within the county has

imposed a municipal regional spaceport gross receipts tax,

"district area of the county" may mean the area within the

boundaries of the county that is within the boundaries of a

regional spaceport district of which the county is a member."

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Section 16. Section 58-31-3 NMSA 1978 (being Laws 2005,

Chapter 128, Section 3) is amended to read:

"58-31-3. DEFINITIONS.--As used in the Spaceport

Development Act:

A. "authority" means the spaceport authority;

B. "project" means any land, building or other

improvements acquired as part of a spaceport or associated

with a spaceport or to aid commerce in connection with a

spaceport and all real and personal property deemed necessary

in connection with the spaceport;

C. "revenue" means municipal regional spaceport

gross receipts tax and county regional spaceport gross

receipts tax revenue received from a regional spaceport

district, revenue generated by a project and any other legally

available funds of the authority;

D. "space vehicle" means a vehicle capable of

being flown in space or launching a payload into space; and

E. "spaceport" means a facility in New Mexico at

which space vehicles may be launched or landed, including all

facilities and support infrastructure related to launch,

landing or payload processing."

Section 17. Section 58-31-5 NMSA 1978 (being Laws 2005,

Chapter 128, Section 5) is amended to read:

"58-31-5. AUTHORITY POWERS AND DUTIES.--

A. The authority shall:

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(1) hire an executive director, who shall

employ the necessary professional, technical and clerical

staff to enable the authority to function efficiently and

shall direct the affairs and business of the authority,

subject to the direction of the authority;

(2) be located within fifty miles of a

southwest regional spaceport;

(3) advise the governor, the governor's

staff and the New Mexico finance authority oversight committee

on methods, proposals, programs and initiatives involving a

southwest regional spaceport that may further stimulate space-

related business and employment opportunities in New Mexico;

(4) initiate, develop, acquire, own,

construct, maintain and lease space-related projects;

(5) make and execute all contracts and other

instruments necessary or convenient to the exercise of its

powers and duties;

(6) create programs to expand high-

technology economic opportunities within New Mexico;

(7) create avenues of communication among

federal government agencies, the space industry, users of

space launch services and academia concerning space business;

(8) promote legislation that will further

the goals of the authority and development of space business;

(9) oversee and fund production of

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promotional literature related to the authority's goals;

(10) identify science and technology trends

that are significant to space enterprise and the state and act

as a clearinghouse for space enterprise issues and

information;

(11) coordinate and expedite the involvement

of the state executive branch's space-related development

efforts; and

(12) perform environmental, transportation,

communication, land use and other technical studies necessary

or advisable for projects and programs or to secure licensing

by appropriate United States agencies.

B. The authority may:

(1) advise and cooperate with

municipalities, counties, state agencies and organizations,

appropriate federal agencies and organizations and other

interested persons and groups;

(2) solicit and accept federal, state, local

and private grants of funds or property and financial or other

aid for the purpose of carrying out the provisions of the

Spaceport Development Act;

(3) adopt rules governing the manner in

which its business is transacted and the manner in which the

powers of the authority are exercised and its duties

performed;

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(4) operate spaceport facilities, including

acquisition of real property necessary for spaceport

facilities and the filing of necessary documents with

appropriate agencies;

(5) construct, purchase, accept donations of

or lease projects located within the state;

(6) sell, lease or otherwise dispose of a

project upon terms and conditions acceptable to the authority

and in the best interests of the state;

(7) issue revenue bonds and borrow money for

the purpose of defraying the cost of acquiring a project by

purchase or construction and of securing the payment of the

bonds or repayment of a loan;

(8) enter into contracts with regional

spaceport districts and issue bonds on behalf of regional

spaceport districts for the purpose of financing the purchase,

construction, renovation, equipping or furnishing of a

regional spaceport or a spaceport-related project;

(9) refinance a project;

(10) contract with any competent private or

public organization or individual to assist in the fulfillment

of its duties;

(11) fix, alter, charge and collect tolls,

fees or rentals and impose any other charges for the use of or

for services rendered by any authority facility, program or

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service; and

(12) contract with regional spaceport

districts to receive municipal spaceport gross receipts tax

and county regional spaceport gross receipts tax revenues.

C. The authority shall not:

(1) incur debt as a general obligation of

the state or pledge the full faith and credit of the state to

repay debt; or

(2) expend funds or incur debt for the

improvement, maintenance, repair or addition to property

unless it is owned by the authority, the state or a political

subdivision of the state."

Section 18. Section 58-31-6 NMSA 1978 (being Laws 2005,

Chapter 128, Section 6) is amended to read:

"58-31-6. SPACEPORT AUTHORITY--BONDING AUTHORITY--POWER

TO ISSUE REVENUE BONDS.--

A. The authority may issue revenue bonds on its

own behalf or on behalf of a regional spaceport district, for

regional spaceport purposes and spaceport-related projects.

Revenue bonds so issued may be considered appropriate

investments for the severance tax permanent fund or collateral

for the deposit of public funds if the bonds are rated not

less than "A" by a national rating service and both the

principal and interest of the bonds are fully and

unconditionally guaranteed by a lease agreement executed by an

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agency of the United States government or by a corporation

organized and operating within the United States, that

corporation or the long-term debt of that corporation being

rated not less than "A" by a national rating service. All

bonds issued by the authority are legal and authorized

investments for banks, trust companies, savings and loan

associations and insurance companies.

B. The authority may pay from the bond proceeds

all expenses, premiums and commissions that the authority

deems necessary or advantageous in connection with the

authorization, sale and issuance of the bonds.

C. Authority revenue bonds:

(1) may have interest or appreciated

principal value or any part thereof payable at intervals

determined by the authority;

(2) may be subject to prior redemption or

mandatory redemption at the authority's option at the time and

upon such terms and conditions with or without the payment of

a premium as may be provided by resolution of the authority;

(3) may mature at any time not exceeding

twenty years after the date of issuance if secured by revenue

from the county or municipal regional spaceport gross receipts

tax or thirty years if secured by revenue from other sources;

(4) may be serial in form and maturity;

consist of one or more bonds payable at one time or in

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installments; or may be in such other form as determined by

the authority;

(5) may be in registered or bearer form or

in book-entry form through facilities of a securities

depository either as to principal or interest or both;

(6) shall be sold for cash at, above or

below par and at a price that results in a net effective

interest rate that conforms to the Public Securities Act; and

(7) may be sold at public or negotiated

sale.

D. Subject to the approval of the state board of

finance, the authority may enter into other financial

arrangements if it determines that the arrangements will

assist the authority."

Section 19. Section 58-31-11 NMSA 1978 (being Laws

2005, Chapter 128, Section 11) is amended to read:

"58-31-11. REQUIREMENTS RESPECTING RESOLUTION AND

LEASE.--

A. A resolution for the issuance of bonds shall

set forth the determinations and findings of the authority

required by this section.

B. Prior to approving a resolution for the

issuance of bonds or the closing of a loan for any project,

the authority shall determine and find that:

(1) the resolution is for the issuance of

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bonds and the principal and interest of the bonds to be issued

shall be fully secured by:

(a) a lease agreement or installment

sale agreement executed by an agency of the United States

government;

(b) a state or local public agency or

institution;

(c) a corporation organized and

operating within the United States;

(d) an irrevocable letter of credit

issued by a chartered financial institution approved for this

purpose by the state board of finance;

(e) a bond insurance policy issued by

an insurance company rated not less than "AA" by a national

rating service; or

(f) revenue received by the authority

pursuant to a contract entered into by and between the

authority and a regional spaceport district;

(2) revenues are available in an amount

necessary in each year to pay the principal of and interest on

the bonds proposed to be issued or the loan proposed to be

obtained to finance the project; and

(3) revenues are available in an amount

necessary to be paid each year into any reserve funds that the

authority may deem advisable to establish in connection with

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the retirement of the proposed bonds or the repayment of the

loan or the maintenance of the project.

C. Unless the terms under which the project is to

be leased or sold provide that the lessee or purchaser shall

maintain the project and carry all proper insurance with

respect to the project, the resolution shall set forth the

estimated cost of maintaining the project in good repair and

keeping it properly insured.

D. Prior to the issuance of the bonds or the

closing of the loan, the authority may lease or sell the

project to a lessee or purchaser under an agreement

conditioned upon completion of the project and providing for

payment to the authority of such rentals or payments as, upon

the basis of such determinations and findings pursuant to

provisions of this section, will be sufficient to:

(1) pay the principal of and interest on the

bonds issued or on the loan to be obtained to finance the

project;

(2) build up and maintain any reserve deemed

by the authority to be advisable in connection with the

financing of the project; and

(3) pay the costs of maintaining the project

in good repair and keep it properly insured, unless the

agreement of lease obligates the lessee to pay for the

maintenance and insurance of the project.

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E. With prior approval of the state board of

finance, the authority may borrow funds to purchase, lease,

acquire or develop water rights, a water system, a wastewater

collection and treatment system, a natural gas distribution

system, an electrical distribution system or other

infrastructure needed to support the project, provided that

the authority does not obligate itself or the state to any

debt or obligation that cannot be paid from funds derived from

the project.

F. Upon prior approval of the state board of

finance, the authority may obtain commitment from a financial

institution to borrow money, provided that closing of the loan

and disbursement of the proceeds is conditional upon

compliance with the requirements of the Spaceport Development

Act. Nothing in this section shall be deemed to authorize the

authority to incur any debt obligation of the authority in

connection with a loan commitment prior to the closing of the

loan."

Section 20. Section 58-31-17 NMSA 1978 (being Laws

2005, Chapter 128, Section 17) is amended to read:

"58-31-17. SPACEPORT AUTHORITY FUND CREATED.--

A. The "spaceport authority fund" is created in

the state treasury. Separate accounts within the fund may be

created for any project. Money in the fund is appropriated to

the authority for the purposes of carrying out the provisions

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of the Spaceport Development Act. Money in the fund shall not

revert at the end of a fiscal year.

B. Except as provided in this section, money

received by the authority shall be deposited in the fund,

including, but not limited to:

(1) the proceeds of bonds issued by the

authority or from a loan to the authority made pursuant to the

Spaceport Development Act;

(2) interest earned upon money in the fund;

(3) property or securities acquired through

the use of money belonging to the fund;

(4) all earnings of property or securities

acquired pursuant to Paragraph (3) of this subsection;

(5) all lease or rental payments received

from the authority from a project;

(6) all of the money received by the

authority from a public or private source; and

(7) fees, rents or other charges imposed and

collected by the authority.

C. Fees, rents or other charges imposed and

collected by the authority in excess of those imposed and

collected for an approved project and for all debt service and

reserves for the bonds that financed the project may be

expended only as appropriated pursuant to vouchers signed by

the executive director of the authority or the director's

designee pursuant to the Spaceport Development Act; provided

that, in the event the position of executive director is

vacant, vouchers may be signed by the chair of the authority.

D. Earnings on the balance in the fund shall be

credited to the fund. In addition, in the event that the

proceeds from the issuance of bonds or from money borrowed by

the authority are deposited in the state treasury, interest

earned on that money during the period commencing with the

deposit in the state treasury until actual transfer of the

money to the fund shall be credited to the fund.

E. All proceeds from issuing revenue bonds shall

be placed in such funds as shall be established in the

resolution of the authority authorizing the issuance of the

bonds." HB 473

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