SENATE BILL 398

48th legislature - STATE OF NEW MEXICO - second session, 2008

INTRODUCED BY

Linda M. Lopez

AN ACT

RELATING TO FINANCE; AUTHORIZING THE ISSUANCE OF BONDS SECURED

BY A STATE GROSS RECEIPTS TAX INCREMENT FOR THE SUNCAL

TAX INCREMENT DEVELOPMENT PROJECT; PROHIBITING CERTAIN FUTURE

CAPITAL PROJECTS.

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

     Section 1. AUTHORIZATION OF ISSUANCE OF BONDS.--Pursuant to the provisions of Section 5-15-21 NMSA 1978, the legislature authorizes the issuance of bonds not to exceed six hundred twenty-nine million dollars ($629,000,000) in net proceeds as adjusted for inflation, secured by a gross receipts tax increment attributed to the imposition of the state gross

receipts tax for the SunCal tax increment development project, subject to:

          A. the determination that has been made by the New Mexico finance authority that the proceeds of the bonds issued pursuant to this authorization will be used for the SunCal tax increment development project in accordance with the development plan;

          B. the review by the New Mexico finance authority of the master indenture prior to issuance of any bonds; and

          C. the review by the New Mexico finance authority of any proposed amendments to the master indenture prior to the issuance of any bonds subsequent to such amendments.

     Section 2. DURATION OF AUTHORIZATION.--The duration of

the authorization for issuance of bonds in this act is unlimited, unless and until this act is repealed or modified

by the legislature.

     Section 3. CERTAIN CAPITAL PROJECTS PROHIBITED.--

          A. The legislature shall not approve or authorize

any capital outlay projects within a SunCal tax

increment development district during the period that any

bonds issued pursuant to Section 1 of this act are outstanding

for that specific district, except for those buildings or

facilities that are owned by the state or one of its agencies,

institutions or political subdivisions and that are:

                (1) public school buildings or facilities;

                (2) higher education buildings or

facilities;

                (3) cultural buildings or facilities;

                (4) buildings or facilities used for public

safety; or

                (5) buildings used for other public

purposes.

          B. Nothing in this section prohibits the

legislature from authorizing expenditures, pursuant to law,

for economic development projects within a specific SunCal tax increment development district for which any tax

increment development bonds are outstanding.

     Section 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2008.

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