SENATE BILL 19

49th legislature - STATE OF NEW MEXICO - first session, 2009

INTRODUCED BY

Mary Kay Papen

AN ACT

RELATING TO PUBLIC FINANCE; AUTHORIZING THE ISSUANCE OF BONDS SECURED BY A STATE GROSS RECEIPTS TAX INCREMENT FOR THE LAS CRUCES DOWNTOWN TAX INCREMENT DEVELOPMENT PROJECT; SUBJECTING THE AUTHORIZATION TO CERTAIN CONDITIONS; LIMITING CERTAIN FUTURE CAPITAL PROJECTS.

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

     Section 1. AUTHORIZATION OF ISSUANCE OF BONDS.--

          A. Pursuant to the provisions of Section 5-15-21 NMSA 1978, the legislature authorizes the issuance of bonds not to exceed seven million two hundred fifty thousand dollars ($7,250,000) 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 Las Cruces downtown tax increment development project, subject to:

                (1) 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 benefit of or to facilitate development within the Las Cruces downtown tax increment development project in accordance with the tax increment development plan for that project;

                (2) the review by the New Mexico finance authority of the master indenture prior to issuance of any bonds;

                (3) 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;

                (4) the review by the New Mexico finance authority prior to the issuance of any bonds of any amendment to the tax increment development plan for the Las Cruces downtown tax increment development project that affects the projected revenues to be used to pay the bonds, use of the proceeds of the bonds or the issuance of the bonds; and

                (5) the review by the New Mexico finance authority of the plan of financing demonstrating at a minimum that:

                     (a) tax increment revenues shall not be used by the district for a period exceeding thirty years; and

                     (b) substantial improvements have been completed within the district prior to the issuance of bonds within the district.

          B. The documents and information required to be submitted to the New Mexico finance authority by this section prior to issuance of any bonds shall be reviewed by the New Mexico finance authority in connection with its consideration for a further determination by the New Mexico finance authority that the proceeds of the bonds will be used for that portion of the Las Cruces downtown tax increment development project that benefits or facilitates development within the district as described in the plan and as provided by the legislature.

     Section 2. DURATION OF AUTHORIZATION.--The duration of the authorization for issuance of bonds in this act is thirty years 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 the Las Cruces downtown 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 Las Cruces downtown 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, 2009.

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