SENATE BILL 321
55th legislature - STATE OF NEW MEXICO - first session, 2021
INTRODUCED BY
Ron Griggs and William F. Burt
AN ACT
RELATING TO COURTS; ENACTING THE COUNTY COURTHOUSE BONDING ACT; AUTHORIZING THE NEW MEXICO FINANCE AUTHORITY TO ISSUE COUNTY COURTHOUSE TAX REVENUE BONDS; CREATING THE COUNTY COURTHOUSE BONDING FUND; CREATING THE COUNTY COURTHOUSE GRANT FUND; PROVIDING FOR GRANTS TO CERTAIN COUNTIES FOR COURTHOUSE PROJECTS; PROVIDING A TAX DISTRIBUTION TO THE COUNTY COURTHOUSE BONDING FUND.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. [NEW MATERIAL] SHORT TITLE.--Sections 1 through 7 of this act may be cited as the "County Courthouse Bonding Act".
SECTION 2. [NEW MATERIAL] NEW MEXICO FINANCE AUTHORITY--BUILDING BONDS--PROCEEDS.--The New Mexico finance authority is authorized to issue and sell revenue bonds, known as "county courthouse tax revenue bonds", payable solely from the county courthouse bonding fund, in compliance with the County Courthouse Bonding Act for the purpose of remodeling, renovating or constructing courthouses, including the purchase of equipment and furnishings but excluding the purchase of land or buildings; provided that state funding shall be expended only for courtrooms and court-related facilities in counties that meet the requirements set by the authority pursuant to the County Courthouse Bonding Act. The net proceeds from the county courthouse tax revenue bonds shall be appropriated to the county courthouse grant fund.
SECTION 3. [NEW MATERIAL] COUNTY COURTHOUSE BONDING FUND--CREATED--MONEY IN THE FUND PLEDGED.--
A. The "county courthouse bonding fund" is created as a special fund within the New Mexico finance authority. The fund shall be administered by the New Mexico finance authority as a special account. The fund shall consist of money appropriated and transferred to the fund and gross receipts tax revenues distributed to the fund pursuant to Section 8 of the County Courthouse Bonding Act. Earnings of the fund shall be credited to the fund. Balances in the fund at the end of any fiscal year shall remain in the fund, except as provided in this section.
B. Money in the county courthouse bonding fund is pledged for the payment of principal and interest on all county courthouse tax revenue bonds issued pursuant to the County Courthouse Bonding Act. Money in the fund is appropriated to the New Mexico finance authority for the purpose of paying debt service on the county courthouse tax revenue bonds and the expenses incurred in the issuance, payment and administration of the bonds.
C. Any balance remaining in the county courthouse bonding fund shall be transferred to the general fund upon certification by the New Mexico finance authority that:
(1) the local government division of the department of finance and administration, the New Mexico finance authority and the administrative office of the courts have agreed that the county courthouse tax revenue bonds issued pursuant to the County Courthouse Bonding Act have been retired, that no additional obligations of the county courthouse bonding fund exist and that no additional expenditures from the fund are necessary; or
(2) a court of proper jurisdiction has ruled that the county courthouse tax revenue bonds have been retired, that no additional obligations of the county courthouse bonding fund exist and that no additional expenditures from the fund are necessary.
D. The county courthouse tax revenue bonds issued pursuant to the County Courthouse Bonding Act shall be payable solely from the county courthouse bonding fund or, with the approval of the bondholders, such other special funds as may be provided by law and do not create an obligation or indebtedness of the state within the meaning of any constitutional provision. No breach of any contractual obligation incurred pursuant to that act shall impose a pecuniary liability or a charge upon the general credit or taxing power of the state, and the bonds are not general obligations for which the state's full faith and credit are pledged.
SECTION 4. [NEW MATERIAL] COURTHOUSE BONDS--FORM--EXECUTION.--
A. The New Mexico finance authority, except as otherwise specifically provided in the County Courthouse Bonding Act, shall determine at its discretion the terms, covenants and conditions of county courthouse tax revenue bonds, including date of issue, denominations, maturities, rate or rates of interest, call features, call premiums, registration, refundability and other covenants covering the general and technical aspects of the issuance of the bonds.
B. The county courthouse tax revenue bonds shall be in such form as the New Mexico finance authority may determine, and successive issues shall be identified by alphabetical, numerical or other proper series designation.
C. County courthouse tax revenue bonds shall be signed and attested by the secretary of the New Mexico finance authority and shall be executed with the facsimile signature of the chair of the New Mexico finance authority and the facsimile seal of the New Mexico finance authority, except for bonds issued in book entry or similar form without the delivery of physical securities. Any interest coupons attached to the bonds shall bear the facsimile signature of the secretary of the New Mexico finance authority, which officer, by the execution of the bonds, shall adopt as the secretary's own signature the facsimile thereof appearing on the coupons. Except for bonds issued in book entry or similar form without the delivery of physical securities, the Uniform Facsimile Signature of Public Officials Act shall apply, and the New Mexico finance authority shall determine the manual signature to be affixed on the bonds.
SECTION 5. [NEW MATERIAL] PROCEDURE FOR SALE OF COURTHOUSE BONDS.--
A. County courthouse tax revenue bonds shall be sold by the New Mexico finance authority at such times and in such manner as the authority may elect, either at private sale for a negotiated price or to the highest bidder at public sale for cash at not less than par and accrued interest.
B. In connection with any public sale of county courthouse tax revenue bonds, the New Mexico finance authority shall publish a notice of the time and place of sale in a newspaper of general circulation in the state and also in a recognized financial journal outside the state. Such publication shall be made once each week for two consecutive weeks prior to the date fixed for such sale, the last publication to be two business days prior to the date of sale. Such notice shall specify the amount, denomination, maturity and description of the bonds to be offered for sale and the place, day and hour at which sealed bids therefor shall be received. All bids, except that of the state, shall be accompanied by a deposit of two percent of the principal amount of the bonds. Deposits of unsuccessful bidders shall be returned upon rejection of the bid. At the time and place specified in such notice, the New Mexico finance authority shall open the bids in public and shall award the bonds, or any part thereof, to the bidder or bidders offering the best price. The New Mexico finance authority may reject any or all bids and readvertise.
C. The New Mexico finance authority may sell a county courthouse tax revenue bond issue, or any part thereof, to the state or to one or more investment bankers or institutional investors at private sale.
SECTION 6. [NEW MATERIAL] FULL AUTHORITY FOR THE ISSUANCE OF BONDS--BONDS AS LEGAL INVESTMENTS.--
A. The County Courthouse Bonding Act shall, without reference to any other act of the legislature, be full authority for the issuance and sale of county courthouse tax revenue bonds, which bonds shall have all the qualities of investment securities under the Uniform Commercial Code and shall not be invalid for any irregularity or defect or be contestable in the hands of bona fide purchasers or holders thereof for value.
B. County courthouse tax revenue bonds are legal investments for any person or board charged with the investment of any public funds and are acceptable as security for any deposit of public money.
SECTION 7. [NEW MATERIAL] COUNTY COURTHOUSE GRANT FUND--CREATION--ADMINISTRATION--PURPOSES.--
A. There is created in the New Mexico finance authority the "county courthouse grant fund", which shall be administered by the authority. The authority shall adopt, in accordance with the New Mexico Finance Authority Act, rules necessary to administer the fund.
B. The following shall be deposited directly into the county courthouse grant fund:
(1) the net proceeds from the sale of bonds issued pursuant to the County Courthouse Bonding Act;
(2) money appropriated by the legislature to implement the provisions of this section; and
(3) any other public or private money dedicated to the fund.
C. Money in the county courthouse grant fund is appropriated to the authority to:
(1) make grants to qualified counties to remodel, renovate or construct courthouses, including equipment and furnishings, but excluding the purchase of land or buildings; provided that the grant shall be expended only for courtrooms and court-related facilities; and
(2) administer the provisions of this section.
D. The authority shall adopt rules governing the terms and conditions of grants made from the county courthouse grant fund. Grants shall be made from the fund only if the qualified county provides matching funding for a proposed project, which shall be in an amount equal to the grant. Grants from the county courthouse grant fund shall be made only after the authority has determined that the financing for the complete project is cost-effective.
SECTION 8. A new section of the Tax Administration Act is enacted to read:
"[NEW MATERIAL] DISTRIBUTION--GROSS RECEIPTS TAX--
COUNTY COURTHOUSE BONDING FUND.--Beginning July 1, 2021 and continuing through June 30, 2026, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the county courthouse bonding fund in the amount of one million dollars ($1,000,000) from the net receipts attributable to the gross receipts tax imposed by the Gross Receipts and Compensating Tax Act."
SECTION 9. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2021.
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