SENATE BILL 243
50th legislature - STATE OF NEW MEXICO - first session, 2011
INTRODUCED BY
Stephen H. Fischmann
AN ACT
RELATING TO TAX INCREMENT DEVELOPMENT DISTRICTS; INCREASING THE MINIMUM INITIAL INVESTMENT BY PROPERTY OWNERS WITHIN A DISTRICT; ADDING REQUIREMENTS FOR PROJECTS RECEIVING STATE GROSS RECEIPTS TAX FUNDING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 5-15-12 NMSA 1978 (being Laws 2006, Chapter 75, Section 12) is amended to read:
"5-15-12. DISTRICT POWERS--LIMITATIONS.--
A. In addition to other express or implied authority granted by law, a district shall have the power to:
(1) enter into contracts or expend money for any public purpose with respect to the district;
(2) enter into agreements with a municipality, county or other local government entity in connection with real property located within the district;
(3) enter into an intergovernmental agreement in accordance with the Joint Powers Agreements Act for the planning, design, inspection, ownership, control, maintenance, operation or repair of public infrastructure or the provision of enhanced services by the municipality or county in which the district lies or for any other purpose authorized by the Tax Increment for Development Act;
(4) sell, lease or otherwise dispose of district property if the sale, lease or conveyance is not a violation of the terms of any contract or bond covenant of the district;
(5) reimburse a municipality or county in which the tax increment development district is located for providing services within the tax increment development area;
(6) operate, maintain and repair public infrastructure until dedicated to the governing body;
(7) employ staff, counsel, advisors and consultants;
(8) reimburse a municipality or county in which the district is located for staff and consultant services and support facilities supplied by the municipality or county;
(9) accept gifts or grants and incur and repay loans for a public purpose;
(10) enter into an agreement with an owner concerning the advance of money by an owner for a public purpose or the granting of real property by the owner for a public purpose;
(11) levy property taxes in accordance with election requirements of the Tax Increment for Development Act for a public purpose on real property located in the district;
(12) pay the financial, legal and administrative costs of the district;
(13) enter into contracts, agreements and trust indentures to obtain credit enhancement or liquidity support for its bonds and process the issuance, registration, transfer and payment of its bonds and the disbursement and investment of proceeds of the bonds in accordance with the provisions for investment of funds by municipal treasurers;
(14) borrow money within the limits of the Tax Increment for Development Act to fund the construction, operation and maintenance of public improvements until dedicated to the governing body or for any other lawful public purposes related to the purposes of the Tax Increment for Development Act; and
(15) use public easements and rights of way in or across public property, roadways, highways, streets or other thoroughfares and other public easements and rights of way of the district, municipality or county.
B. Notwithstanding the provisions of the Procurement Code or local procurement requirements that may otherwise be applicable to the municipality or county in which the district is located, the district board may enter into contracts to carry out any of the tax increment development district's authorized powers, including the planning, design, engineering, financing, construction and acquisition of public improvements for the district, with a contractor, an owner or other person or entity, on such terms and with such persons as the district board determines to be appropriate.
C. A district shall not have the power of eminent domain for any purpose.
D. A casino shall not be located in a district, and a district shall not use the proceeds of property tax increment bonds or gross receipts tax increment bonds to finance public improvements for a casino.
E. Tax increment development projects funded in whole or in part by a gross receipts tax increment attributable to the imposition of the state gross receipts tax within a district shall:
(1) be permitted only in a district containing at least twenty private property owners having no corporate, family or other direct business affiliation, other than an interest in improving the district, and in which each property owner has an equal vote. State gross receipts tax increments shall be terminated whenever the number of unaffiliated property owners drops below twenty;
(2) be limited to redevelopment of public improvements and improvement of existing infrastructure for the purpose of urban renewal;
(3) fund only those improvements that will remain in the ownership of a local government or the state;
(4) be approved by the state board of finance; and
(5) be specifically authorized by law."
SECTION 2. Section 5-15-20 NMSA 1978 (being Laws 2006, Chapter 75, Section 20) is amended to read:
"5-15-20. GENERAL BONDING AUTHORITY OF A TAX INCREMENT DEVELOPMENT DISTRICT--OTHER LIMITATIONS.--
A. Except as otherwise provided in this section, a district board shall not issue bonds against either gross receipts tax increments or property tax increments without the express written authorization of the department of finance and administration, as evidenced by a letter signed by the secretary of finance and administration. A district formed and approved by a class A county or by a municipality within a class A county if the municipality has a population of more than sixty-five thousand persons, according to the most recent federal decennial census, is not required to obtain express written authorization of the department of finance and administration for the issuance of gross receipts tax increment bonds or property tax increment bonds.
B. Prior to the issuance of indebtedness evidenced by the gross receipts tax increment bonds or property tax increment bonds issued by a district pursuant to the Tax Increment for Development Act, the property owners within the district shall contribute a minimum of [twenty] forty percent of the initial public infrastructure costs, which may be reimbursed with proceeds of gross receipts tax increment or property tax increment bonds; unless the project to be financed with gross receipts tax increment bonds or property tax increment bonds is a metropolitan redevelopment project pursuant to the Metropolitan Redevelopment Code.
C. The amount of indebtedness evidenced by the gross receipts tax increment bonds or property tax increment bonds issued pursuant to the Tax Increment for Development Act shall not exceed the estimated cost of the public improvements plus all costs connected with the public infrastructure purposes and the issuance and sale of bonds, including, without limitation, formation costs, credit enhancement and liquidity support fees and costs.
D. The indebtedness evidenced by the gross receipts tax increment bonds or property tax increment bonds shall not affect the general obligation bonding capacity of the municipality or county in which the tax increment development district is located.
E. The indebtedness evidenced by the gross receipts tax increment bonds or property tax increment bonds shall be payable only from the special funds into which are deposited the gross receipts tax increments and property tax increments as set forth in the Tax Increment for Development Act.
F. Bonds issued by a tax increment development district shall not be a general obligation of the state, the county or the municipality in which the tax increment development district is located and shall not pledge the full faith and credit of the state, the county or the municipality in which the tax increment development district is located."
SECTION 3. TEMPORARY PROVISION--APPLICABILITY.--The provisions of this act do not apply to expenditure of bond proceeds from bonds issued prior to July 1, 2011.
SECTION 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2011.
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