0001| AN ACT | 0002| RELATING TO TAXATION; AMENDING THE LOCAL HOSPITAL GROSS RECEIPTS | 0003| TAX ACT TO PROVIDE FOR THE PLEDGE OF OTHER COUNTY REVENUES FOR | 0004| LOCAL HOSPITAL REVENUE BONDS; AUTHORIZING THE ISSUANCE OF | 0005| REFUNDING BONDS; AMENDING AND ENACTING CERTAIN SECTIONS OF THE | 0006| NMSA 1978; DECLARING AN EMERGENCY. | 0007| | 0008| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: Section 1. Section 7-20C-2 NMSA 1978 (being Laws 1991, Chapter 176, Section 2, as | 0009| amended) is amended to read: | 0010| "7-20C-2. DEFINITIONS.--As used in the Local Hospital Gross Receipts Tax Act: | 0011| A. "county" means: | 0012| (1) a class B county having a population of less than twenty-five thousand | 0013| according to the most recent federal decennial census and having a net taxable value for rate-setting purposes for the 1990 property tax year or any subsequent year of more than two hundred | 0014| fifty million dollars ($250,000,000); | 0015| (2) a class B county having a population of less than forty-seven thousand | 0016| but more than forty-four thousand according to the 1990 federal decennial census and having a | 0017| net taxable value for rate-setting purposes for the 1992 property tax year of more than three | 0018| hundred million dollars ($300,000,000) but less than six hundred million dollars ($600,000,000); | 0019| or | 0020| (3) a class B county having a population of less than ten thousand | 0021| according to the most recent federal decennial census and having a net taxable value for rate-setting purposes for the 1990 property tax year or any subsequent year of more than one hundred | 0022| million dollars ($100,000,000); | 0023| B. "department" means the taxation and revenue department, the secretary of | 0024| taxation and revenue or any employee of the department exercising authority lawfully delegated | 0025| to that employee by the secretary; | 0001| C. "governing body" means the board of county commissioners of a county; | 0002| D. "hospital facility revenues" means all or a portion of the revenues derived | 0003| from a lease of a hospital facility acquired, constructed or equipped pursuant to and operated in | 0004| accordance with the Local Hospital Gross Receipts Tax Act; | 0005| E. "local hospital gross receipts tax" means the tax authorized to be imposed | 0006| under the Local Hospital Gross Receipts Tax Act; | 0007| F. "person" means an individual or any other legal entity; and | 0008| G. "state gross receipts tax" means the gross receipts tax imposed under the | 0009| Gross Receipts and Compensating Tax Act." | 0010| Section 2. Section 7-20C-9 NMSA 1978 (being Laws 1991, Chapter 176, Section 9, as | 0011| amended) is amended to read: | 0012| "7-20C-9. LOCAL HOSPITAL REVENUE BONDS--AUTHORITY TO ISSUE--PLEDGE OF REVENUES.-- | 0013| A. A county, other than a county described in Paragraph (2) of Subsection A of | 0014| Section 7-20C-2 NMSA 1978, may issue local hospital revenue bonds pursuant to the Local | 0015| Hospital Gross Receipts Tax Act for the purpose of acquiring land for and designing, | 0016| constructing, equipping and furnishing a county hospital facility to be operated by the county or | 0017| by another party pursuant to a lease with the county. | 0018| B. The county issuing the local hospital revenue bonds pursuant to the Local | 0019| Hospital Gross Receipts Tax Act shall pledge irrevocably all of the net receipts derived from the | 0020| imposition of the local hospital gross receipts tax and may pledge irrevocably any combination | 0021| of hospital facility revenues and any other revenues as necessary for the payment of principal | 0022| and interest on the revenue bonds." | 0023| Section 3. A new section of the Local Hospital Gross Receipts Tax Act is enacted to | 0024| read: | 0025| "REVENUE BONDS--REFUNDING AUTHORIZATION.-- | 0001| A. Any county having issued revenue bonds as authorized in the Local Hospital | 0002| Gross Receipts Tax Act may issue refunding revenue bonds pursuant to an ordinance adopted by | 0003| majority vote of the governing body for the purpose of refinancing, paying and discharging all | 0004| or any part of such outstanding revenue bonds of any one or more or all outstanding issues: | 0005| (1) for the acceleration, deceleration or other modification of the payment | 0006| of such obligations, including without limitation any capitalization of any interest thereon in | 0007| arrears or about to become due for any period not exceeding one year from the date of the | 0008| refunding bonds; | 0009| (2) for the purpose of reducing interest costs or effecting other | 0010| economies; | 0011| (3) for the purpose of modifying or eliminating restrictive contractual | 0012| limitations pertaining to the issuance of additional bonds, otherwise concerning the outstanding | 0013| bonds or to any facilities relating thereto; or | 0014| (4) for any combination of such purposes. | 0015| B. To pay the principal and interest on refunding bonds, the county may pledge | 0016| irrevocably revenues authorized to be pledged to revenue bonds issued pursuant to the Local | 0017| Hospital Gross Receipts Tax Act. | 0018| C. Bonds for refunding and bonds for any purpose permitted by the Local | 0019| Hospital Gross Receipts Tax Act may be issued separately or issued in combination in one series | 0020| or more." | 0021| Section 4. A new section of the Local Hospital Gross Receipts Tax Act is enacted to | 0022| read: | 0023| "REFUNDING BONDS--ESCROW--DETAIL.-- | 0024| A. Refunding bonds issued pursuant to the provisions of the Local Hospital | 0025| Gross Receipts Tax Act shall be authorized by ordinance. Any revenue bonds that are refunded | 0001| under the provisions of this section shall be paid at maturity or on any permitted prior | 0002| redemption date in the amounts, at the time and places, and if called prior to maturity, in | 0003| accordance with any applicable notice provisions, all as provided in the proceedings authorizing | 0004| the issuance of the refunded bonds or otherwise appertaining thereto, except for any such bond | 0005| that is voluntarily surrendered for exchange or payment by the holder or owner. | 0006| B. Provision shall be made for paying the bonds refunded at the time or places | 0007| provided in Subsection A of this section. The principal amount of the refunding bonds may | 0008| exceed, be less than or be the same as the principal amount of the bonds being refunded as long | 0009| as provision is duly and sufficiently made for the payment of the refunded bonds. | 0010| C. The proceeds of refunding bonds, including any accrued interest and premium | 0011| appertaining to the sale of refunding bonds, shall either be immediately applied to the retirement | 0012| of the bonds being refunded or be placed in escrow in a commercial bank or trust company that | 0013| possesses and is exercising trust powers and that is a member of the federal deposit insurance | 0014| corporation, to be applied to the payment of the principal of, interest on and any prior | 0015| redemption premium due in connection with the bonds being refunded; provided that such | 0016| refunding bond proceeds, including any accrued interest and any premium appertaining to a sale | 0017| of refunding bonds, may be applied to the establishment and maintenance of a reserve fund and | 0018| to the payment of expenses incidental to the refunding and the issuance of the refunding bonds, | 0019| the interest on the refunding bonds and the principal of the refunding bonds or both interest and | 0020| principal as the county may determine. Nothing in this section requires the establishment of an | 0021| escrow if the refunded bonds become due and payable within one year from the date of the | 0022| refunding bonds and if the amounts necessary to retire the refunded bonds within that time are | 0023| deposited with the paying agent for the refunded bonds. Any such escrow shall not necessarily | 0024| be limited to proceeds of refunding bonds but may include other money available to retire the | 0025| refunded bonds. Any proceeds in escrow pending such use may be invested in bills, certificates | 0001| of indebtedness, notes or bonds that are direct obligations of, or the principal and interest of | 0002| which obligations are unconditionally guaranteed by the United States of America or in | 0003| certificates of deposit of banks that are members of the federal deposit insurance corporation, the | 0004| par value of which certificates of deposit is collateralized by a pledge of obligations of, or the | 0005| payment of which is unconditionally guaranteed by, the United States of America, the par value | 0006| of which obligations is at least seventy-five percent of the par value of the certificates of deposit. | 0007| Such proceeds and investments in escrow together with any interest or other income to be | 0008| derived from any such investment shall be in an amount at all times sufficient as to principal, | 0009| interest, any prior redemption premium due and any charges of the escrow agent payable | 0010| therefrom to pay the bonds being refunded as they become due at their respective maturities or | 0011| due at any designated prior redemption date or dates in connection with which the county shall | 0012| exercise a prior redemption option. Any purchaser of any refunding bond issued pursuant to the | 0013| provisions of the Local Hospital Gross Receipts Tax Act is in no manner responsible for the | 0014| application of the proceeds thereof by the county or any of its officers, agents or employees. | 0015| D. Refunding bonds may be sold at a public or negotiated sale and may bear such | 0016| additional terms and provisions as may be determined by the county subject to the limitations in | 0017| the Local Hospital Gross Receipts Tax Act. The terms, provisions and authorization of the | 0018| refunding bonds are not subject to the provisions of any other statute, provided that the Public | 0019| Securities Limitation of Action Act shall be fully applicable to the issuance of refunding bonds." | 0020| Section 5. EMERGENCY.--It is necessary for the public peace, health and safety | 0021| that this act take effect immediately. | 0022| |