0001| HOUSE TAXATION AND REVENUE COMMITTEE SUBSTITUTE FOR | 0002| HOUSE BILL 669 | 0003| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0004| | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| | 0011| AN ACT | 0012| RELATING TO TRANSPORTATION; ENACTING THE REGIONAL TRANSIT | 0013| AUTHORITY ACT; AUTHORIZING THE CREATION OF REGIONAL TRANSIT | 0014| AUTHORITIES; PROVIDING THE POWERS AND DUTIES OF A REGIONAL | 0015| TRANSIT AUTHORITY; AUTHORIZING THE IMPOSITION OF A GROSS | 0016| RECEIPTS TAX; AUTHORIZING ISSUANCE OF REGIONAL TRANSIT REVENUE | 0017| BONDS; AMENDING AND ENACTING SECTIONS OF THE NMSA 1978. | 0018| | 0019| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0020| Section 1. [NEW MATERIAL] SHORT TITLE.--Sections 1 | 0021| through 27 of this act may be cited as the "Regional Transit | 0022| Authority Act". | 0023| Section 2. [NEW MATERIAL] PURPOSE.--The purpose of the | 0024| Regional Transit Authority Act is to: | 0025| A. serve the public welfare by providing for the | 0001| creation of a comprehensive network of safe, efficient and | 0002| affordable public transportation within a metropolitan area; | 0003| B. provide a public transit system to reduce the | 0004| congestion of single-occupancy motor vehicle passenger traffic | 0005| in a metropolitan area by providing transportation options for | 0006| residents; | 0007| C. decrease automobile accidents by reducing | 0008| traffic congestion on freeways and streets; | 0009| D. reduce noise and air pollution produced by motor | 0010| vehicles; and | 0011| E. provide residents with a choice of | 0012| transportation alternatives, so that seniors, youth, low-income | 0013| and mobility-impaired residents and others unable to drive or | 0014| to afford an automobile continue to have full access to the | 0015| goods, services and activities of the community. | 0016| Section 3. [NEW MATERIAL] DEFINITIONS.--As used in the | 0017| Regional Transit Authority Act: | 0018| A. "authority" means a regional transit authority | 0019| created pursuant to the provisions of the Regional Transit | 0020| Authority Act; | 0021| B. "board" means a regional transit authority | 0022| board; | 0023| C. "condemn" or "condemnation" means the | 0024| acquisition of property or an interest in property by a | 0025| regional transit authority through the exercise of the power of | 0001| eminent domain; | 0002| D. "department" means the taxation and revenue | 0003| department, the secretary of taxation and revenue or any employee | 0004| of the department exercising authority lawfully delegated to that | 0005| employee by the secretary; | 0006| E. "governing body" means the city council, city | 0007| commission, board of commissioners, board of trustees, board of | 0008| directors or other legislative body of a municipality or county in | 0009| which the legislative powers of the public body are vested; | 0010| F. "high-occupancy vehicle" means any vehicle carrying | 0011| more than one person, including buses, vans, cars and passenger | 0012| trains; | 0013| G. "metropolitan area" means an area consisting of at | 0014| least two contiguous counties, one of which has a principal city | 0015| with a population in excess of twenty thousand or has a principal | 0016| city with a population of no more than five thousand that | 0017| currently operates a public transit system; | 0018| H. "motor vehicle" means a self-propelled vehicle | 0019| suitable for operation on highways; | 0020| I. "municipality" means any incorporated city, town or | 0021| village, whether incorporated under general act, special act or | 0022| special charter; | 0023| J. "person" means an individual or any other legal | 0024| entity; | 0025| K. "principal city" means the city of largest | 0001| population within a metropolitan area; | 0002| L. "public transit system" means a public transit | 0003| network that transports passengers by means of high-occupancy | 0004| vehicles that is created and administered by an authority; and | 0005| M. "regional transit gross receipts tax" means the | 0006| gross receipts tax imposed pursuant to the Regional Transit | 0007| Authority Act. | 0008| Section 4. [NEW MATERIAL] CREATION OF TRANSIT AUTHORITY-- | 0009| NOTICE AND HEARING.-- | 0010| A. The governing body of a principal city in a | 0011| metropolitan area may institute proceedings to create an authority | 0012| in the manner prescribed in the Regional Transit Authority Act. | 0013| B. The proposed authority may consist of the principal | 0014| city and additional adjacent counties or municipalities in the | 0015| metropolitan area outside of the county where the principal city | 0016| is located, provided that the entirety of the territory of each | 0017| county or municipality is included. | 0018| C. Upon a finding that a metropolitan area lacks | 0019| adequate public transportation infrastructure, a majority of the | 0020| members of the governing body of the principal city may adopt a | 0021| resolution proposing to create an authority, determining the | 0022| territorial area of the proposed authority and fixing the time and | 0023| place that the governing body will conduct a public hearing on the | 0024| proposal. The governing body of the principal city shall not | 0025| adopt a resolution proposing creation of an authority without the | 0001| concurrence of a majority of the members of the governing body of | 0002| each county and municipality it proposes to include within that | 0003| area. | 0004| D. Notice of the time and place of the public hearing, | 0005| including a copy of the resolution setting out the territorial | 0006| area of the proposed authority, shall be sent by registered mail | 0007| to each governing body included in the proposed authority area. | 0008| Notice of the public hearing and a copy of the resolution shall be | 0009| published by each county and municipality once a week for two | 0010| consecutive weeks in at least one newspaper of general circulation | 0011| in the metropolitan area. The first publication shall be not less | 0012| than fifteen days prior to the date fixed for the hearing. Copies | 0013| of the notice and resolution shall also be available upon request | 0014| to interested persons in the metropolitan area. | 0015| E. At the public hearing, representatives of | 0016| municipalities and counties in the metropolitan area and other | 0017| interested persons may present evidence for or against the | 0018| creation of the proposed authority and for or against the need for | 0019| construction or expansion of a public transit system in the | 0020| metropolitan area. | 0021| F. If, after hearing all evidence at the public | 0022| hearing, the governing body of the principal city finds that the | 0023| creation of an authority and the construction and operation of a | 0024| public transit system is necessary for the public health and | 0025| welfare and will benefit residents of the area, the governing body | 0001| shall adopt a resolution proposing creation of the authority | 0002| subject to approval by the voters at a confirmation election, | 0003| naming the authority, prescribing the territorial area of the | 0004| authority and providing for appointment of an interim board. | 0005| G. If, after hearing all evidence at the public | 0006| hearing, the governing body of the principal city finds that the | 0007| creation of the authority and the construction and operation of a | 0008| public transit system in the metropolitan area are not necessary | 0009| for the public health and welfare and would not benefit the | 0010| residents of the metropolitan area, it shall not create the | 0011| authority. | 0012| H. If the principal city adopts a resolution proposing | 0013| creation of an authority, it shall submit that resolution to each | 0014| governing body within the area of the proposed authority. Each | 0015| governing body included shall, within sixty days, approve or | 0016| disapprove by resolution their inclusion in the proposed | 0017| authority. Failure to adopt a resolution in favor of inclusion | 0018| shall result in that jurisdiction being excluded from the initial | 0019| confirmation election. | 0020| I. Nothing in the Regional Transit Authority Act shall | 0021| be construed to prevent or impair the operation of a public | 0022| transit system in existence prior to the passage of this act. | 0023| Section 5. [NEW MATERIAL] REGIONAL TRANSIT AUTHORITY BOARD- | 0024| -MEMBERSHIP AND TERMS OF OFFICE.-- | 0025| A. An interim board representing the governing bodies | 0001| that have approved, by resolution, their inclusion in the proposed | 0002| authority shall be appointed within thirty days following the | 0003| adoption of those resolutions. Interim board members shall serve | 0004| until January 1 of the year following the general election at | 0005| which the first regular board members are elected. The appointed | 0006| interim board members shall have the same proportional | 0007| representation as the elected regular board members, and shall | 0008| have the same powers and duties and be subject to the same | 0009| provisions of the Regional Transit Authority Act as regular board | 0010| members. Each interim board member serves at the pleasure of the | 0011| appointing governing body. | 0012| B. Regular board members shall be elected at a special | 0013| election held at the same time as the general election, with the | 0014| initial regular members being elected at a special election | 0015| conducted at the same time as the first general election after the | 0016| confirmation election provided for in Section 6 of the Regional | 0017| Transit Authority Act. Board members shall serve terms of four | 0018| years. Prior to the election of the permanent board, the interim | 0019| board shall determine by lot which half of the regular members | 0020| shall serve initial two- and four-year terms. After the first | 0021| election, all board members shall be elected for four-year terms. | 0022| C. A board shall consist of at least five members. If | 0023| a total of two counties and municipalities participate in an | 0024| authority, the principal city shall have three of the five board | 0025| members. If a total of three counties or municipalities vote to | 0001| participate in an authority, the principal city shall have one | 0002| more than the total number of board seats held by the other two | 0003| participants. If a total of four or more counties or | 0004| municipalities vote to join the authority, each participant shall | 0005| have at least one member. Each participant shall also have one | 0006| additional member if, based on the last two-year supplemental | 0007| federal decennial census, that participant has a population | 0008| between fifty thousand one and one hundred thousand residents or | 0009| two additional members if that participant has a population | 0010| between one hundred thousand one and one hundred fifty thousand | 0011| residents. No participant shall have a majority of the membership | 0012| on the board, unless there are only two participants. For | 0013| purposes of representation on the board, the population of | 0014| incorporated municipalities within a county shall not be counted | 0015| toward the population of the county. | 0016| D. Vacancies on the board shall be filled for the | 0017| remainder of the term in the manner provided for the original | 0018| appointment of the interim board. Upon expiration of the term of | 0019| office of each member of the board, a member may seek office for | 0020| the succeeding term. | 0021| E. Board members shall be reimbursed for per diem and | 0022| mileage as provided for public officers in the Per Diem and | 0023| Mileage Act. | 0024| F. Board members shall be residents and qualified | 0025| voters of the counties or municipalities that they represent. | 0001| G. Board members shall select annually from among | 0002| their membership a chairman, a vice chairman and a secretary, and | 0003| other officers as they deem necessary. No member of the board or | 0004| officer of the authority shall have pecuniary interest in or | 0005| benefit directly or indirectly from any contract or agreement to | 0006| which the authority is a party. | 0007| H. The board shall meet at least once a month for the | 0008| purpose of transacting the business of the authority. In addition | 0009| to regularly scheduled meetings, the chairman may call special | 0010| meetings as may be necessary upon written notice at least ten days | 0011| prior to the meeting. A majority of the members shall constitute | 0012| a quorum of the board for the purpose of conducting its business | 0013| and exercising its powers. | 0014| I. A member of the board may be removed from office | 0015| for nonfeasance, misfeasance or malfeasance in office by the | 0016| governing body that it represents, or by a majority of the | 0017| permanent board. | 0018| Section 6. [NEW MATERIAL] CONFIRMATION ELECTION.-- | 0019| A. Within thirty days of its appointment, the interim | 0020| board shall adopt a resolution calling for a confirmation election | 0021| to be held no later than one hundred eighty days from the date of | 0022| the adoption of that resolution. The confirmation election shall | 0023| be conducted by the county or municipal clerk of each governing | 0024| body that has approved, by resolution, their inclusion in the | 0025| proposed authority. The election shall be held to determine | 0001| whether a majority of the voters approve the creation of an | 0002| authority and the imposition of a regional transit gross receipts | 0003| tax to fund the creation of a regional transit system. | 0004| B. The question submitted to the voters at the | 0005| confirmation election shall be: | 0006| "Shall the creation of the (name of the authority) , | 0007| consisting of (names of counties and municipalities to be | 0008| included), be confirmed and shall the board of the authority be | 0009| authorized to impose a regional transit gross receipts tax in the | 0010| amount of _______ percent of gross receipts not to exceed one- | 0011| fourth of one percent of the gross receipts on persons engaging in | 0012| business in the authority area, to fund a public transit system | 0013| and provide public transit services in the metropolitan area? | 0014| _____ Yes _____ No". | 0015| C. The election shall be conducted so that votes are | 0016| separately tabulated and canvassed in each county and municipality | 0017| where the election is held. | 0018| D. Those counties or municipalities in which a | 0019| majority of the voters voting on the question votes against the | 0020| confirmation of the creation of the authority and the levy of the | 0021| proposed tax shall not become part of the authority. A | 0022| municipality that votes against the creation of the authority and | 0023| the levy of the proposed tax shall not become part of the | 0024| authority if the county in which the municipality is located votes | 0025| to join the authority. Those counties or municipalities where a | 0001| majority of the voters voting on the question votes in favor of | 0002| the creation of the authority and the levy of the proposed tax | 0003| shall become part of the authority. | 0004| E. If the vote is not favorable in the principal city | 0005| that initiated the confirmation election, the authority shall not | 0006| be created. | 0007| F. The expense of calling and conducting the | 0008| confirmation election shall be borne by the principal city. | 0009| However, if the election results in the creation of an authority, | 0010| the authority shall reimburse the principal city for all | 0011| expenditures made in the course of calling and conducting the | 0012| election within twelve months after the date on which collection | 0013| of the tax for the authority begins. | 0014| G. At any time after the confirmation election, the | 0015| board may call an election to increase the gross receipts tax levy | 0016| for the purpose of expanding transit services, subject to the | 0017| provisions of the Regional Transit Authority Act limiting the | 0018| aggregate rate of the regional transit gross receipts tax. The | 0019| expense of calling and conducting the election shall be borne by | 0020| the authority. If a majority of the voters voting in the election | 0021| votes in favor of the increase, that additional gross receipts tax | 0022| shall be imposed. If a majority of the voters voting in the | 0023| election votes against the increase in the tax, the additional | 0024| gross receipts tax shall not be imposed, and the authority shall | 0025| not again propose to increase the tax for a period of at least two | 0001| years from the date of that election. | 0002| H. The dates on which the authority may be established | 0003| or additional counties and municipalities may join or withdraw | 0004| from an authority shall be January 1 or July 1 immediately | 0005| following the election. | 0006| Section 7. [NEW MATERIAL] POWERS OF THE AUTHORITY.-- | 0007| A. An authority, when created and confirmed, shall | 0008| constitute a public body corporate and politic, exercising | 0009| governmental functions, having the power necessary to carry out | 0010| the purposes of the Regional Transit Authority Act. | 0011| B. An authority may sue and be sued in all courts of | 0012| competent jurisdiction. | 0013| C. An authority may adopt and use a seal of the | 0014| authority. | 0015| D. An authority may fix the fiscal year for the | 0016| authority. | 0017| E. An authority may acquire property by grant, | 0018| purchase, gift, devise, lease or otherwise and may hold, use, | 0019| sell, lease or dispose of real and personal property as it deems | 0020| necessary for the full exercise of any of its powers pursuant to | 0021| the provisions of the Regional Transit Authority Act. | 0022| F. An authority may acquire, construct, complete, | 0023| develop, own, operate and maintain a public transit system within | 0024| its boundaries, and both within and without the boundaries of | 0025| municipalities. For the purpose of the system, the authority | 0001| shall have the right to use the streets, highways and other public | 0002| ways, and, with permission of the owner, to relocate or alter the | 0003| construction of any street, highway, other public way, electric | 0004| and telephone lines and properties, pipelines, conduits and other | 0005| properties, whether publicly or privately owned, if deemed | 0006| necessary by the authority in the construction, reconstruction, | 0007| repair, maintenance and operation of the system. Any damage that | 0008| may occur to the property shall be borne by the authority. | 0009| G. An authority may enter into agreements with any | 0010| other public or private utility, communication system, common | 0011| carrier or transportation system for the joint use of their | 0012| respective facilities or properties within the authority and to | 0013| establish routes, joint fares or transfer of passengers. | 0014| H. An authority may enter into contracts, leases and | 0015| agreements with and accept grants and loans from the federal | 0016| government, its departments and agencies, and the state and any of | 0017| its political subdivisions. A revenue bond indenture may provide | 0018| limitations upon the exercise of the powers stated in this | 0019| section, and the limitations shall apply as long as any revenue | 0020| bonds issued pursuant to this indenture are outstanding and | 0021| unpaid. | 0022| I. An authority may propose, for the construction, | 0023| operation and maintenance of a public transit system, the | 0024| imposition of a gross receipts tax on any person engaging in | 0025| business in the authority area, which shall not exceed an | 0001| aggregate rate of one-fourth of one percent. | 0002| J. An authority may sell, lease, convey or otherwise | 0003| dispose of any of its rights, interests or real or personal | 0004| properties or surplus material not needed for the efficient | 0005| operation and maintenance of the public transit system. | 0006| K. An authority may lease the public transit system or | 0007| any part of the system, or contract for the use or operation of | 0008| the system by an operator. | 0009| L. An authority shall establish and maintain rates, | 0010| fares, tolls, charges, rents or other compensation for the use of | 0011| the facilities of the public transit system constructed, operated | 0012| and maintained by the authority, which shall be reasonable and | 0013| nondiscriminatory, and shall, together with the regional transit | 0014| gross receipts tax and regional transit revenue bonds, be adequate | 0015| to meet its financial obligations. | 0016| M. An authority shall, by resolution, adopt rules | 0017| governing the use, operation and maintenance of the public transit | 0018| system and shall determine all routings whenever it is deemed | 0019| advisable by the authority. | 0020| N. An authority may contract with a governing body to | 0021| provide public transit services to any area outside the boundaries | 0022| of the authority. | 0023| O. An authority may acquire by purchase real property | 0024| and equipment necessary to develop a public transit system, | 0025| including station stops and complexes, maintenance and operating | 0001| facilities, transfer locations, bus stations and stops, internodal | 0002| facilities and office buildings. | 0003| P. An authority may borrow money, issue bonds and | 0004| enter into contracts and finance leasing. | 0005| Q. An authority may invest funds of the authority in | 0006| direct or indirect obligations of the United States, the state or | 0007| any of its political subdivisions. | 0008| Section 8. [NEW MATERIAL] POWER OF EMINENT DOMAIN.--The | 0009| authority may exercise in the state the power of eminent domain, | 0010| within the authority and in the manner provided by law for the | 0011| condemnation of private property for public use, and may take any | 0012| property necessary to carry out the purposes of the Regional | 0013| Transit Authority Act. | 0014| Section 9. [NEW MATERIAL] ADDITION OR WITHDRAWAL OF | 0015| TERRITORY BY AN AUTHORITY.-- | 0016| A. After the creation of the authority, a governing | 0017| body adjacent to but not part of the authority may, by resolution, | 0018| propose to join the authority, determine the territorial area to | 0019| become a part of that authority and fix the time and place that | 0020| the governing body will conduct a public hearing on the proposal, | 0021| as provided for in Section 4 of the Regional Transit Authority | 0022| Act. If a majority of voters voting on the question votes in | 0023| favor of the annexation, the municipal or county clerk shall | 0024| certify the results of the election to the board, and the area | 0025| shall become a part of the authority. | 0001| B. If a city or town that is a part of an authority | 0002| lawfully annexes additional territory that is not a part of the | 0003| authority, the annexed territory shall become a part of the | 0004| authority. | 0005| C. A county or municipality that is a part of the | 0006| authority can withdraw from the authority by submitting to the | 0007| voters the question: "Should (name of county or municipality) | 0008| withdraw from the (name of authority)?". If a majority of voters | 0009| voting on the question votes in favor of withdrawal, the municipal | 0010| or county clerk shall certify the results of the election to the | 0011| board and the county or municipality shall cease to be a member of | 0012| the authority and a board member from that county or municipality | 0013| shall cease to be a member of the board. The regional transit | 0014| gross receipts tax shall continue until either the bonds that are | 0015| outstanding at the time of withdrawal are paid in full, or the | 0016| county or municipality negotiates an agreement with the authority | 0017| to provide funds sufficient to pay its pro rata share of the debt | 0018| service on bonds previously issued to finance capital | 0019| improvements, and to acquire authority property lying within the | 0020| bounds of the county or municipality but outside the new | 0021| boundaries of the authority. Real property owned by the authority | 0022| that is within the boundaries of a withdrawing county or | 0023| municipality shall remain the property of the authority. The | 0024| provisions of withdrawal shall be negotiated and agreed to by the | 0025| board, the withdrawing governing body and the department; however, | 0001| a municipality with a population of ten thousand or less shall not | 0002| be obligated for payment on outstanding bonds existing at the time | 0003| of withdrawal. | 0004| D. After the initial confirmation election to | 0005| establish the authority, elections to join or withdraw shall be | 0006| paid for by the governing body that initiates the election. | 0007| Section 10. [NEW MATERIAL] STATION OR TERMINAL COMPLEXES.- | 0008| - | 0009| A. Before a station or terminal complex may be | 0010| included in the system, the board shall determine that the | 0011| proposed station or terminal complex will provide efficient and | 0012| economical public transit service, will reduce vehicular | 0013| congestion and air pollution in the metropolitan area and is | 0014| reasonably essential to the successful operation of the system. | 0015| B. A station or terminal complex shall include | 0016| adequate provisions to transfer passengers between the various | 0017| modes of transportation available to the complex. A proposed | 0018| station or terminal complex located within the city limits or | 0019| extraterritorial jurisdiction of a municipality shall first be | 0020| approved by the governing body of the municipality as to | 0021| conformity with the general plan of the municipality. | 0022| Section 11. [NEW MATERIAL] REGIONAL TRANSIT GROSS RECEIPTS | 0023| TAX--IMPOSITION--RATE AUTHORIZED.-- | 0024| A. Upon voter approval pursuant to the Regional | 0025| Transit Authority Act, the board may impose by resolution an | 0001| excise tax on any person engaging in business in the authority | 0002| area for the privilege of engaging in business, provided that | 0003| where a majority of voters in the county approves, by confirmation | 0004| election, their participation in the authority, the county clerk | 0005| shall not tax a municipality within that county that has not opted | 0006| to participate. The rate of the tax shall not exceed the rate | 0007| approved by the voters. The tax shall be referred to as the | 0008| "regional transit gross receipts tax". | 0009| B. A tax imposed pursuant to this section may be | 0010| imposed in one-sixteenth of one percent or one-eighth of one | 0011| percent or any number of such increments by the enactment of one | 0012| or more resolutions, but the total regional transit gross receipts | 0013| tax rate imposed by all resolutions shall not exceed an aggregate | 0014| rate of one-fourth of one percent of the gross receipts on a | 0015| person engaging in business in the authority area. | 0016| C. The board, at the time of enacting a resolution | 0017| imposing or changing the tax authorized in Subsection A of this | 0018| section, shall dedicate the revenue for the management, | 0019| construction or operation of the public transit system or for | 0020| specific public transit projects or services of the authority | 0021| pursuant to the Regional Transit Authority Act. | 0022| D. Any law that imposes or authorizes the imposition | 0023| of a regional transit gross receipts tax or that affects that tax, | 0024| or any law supplemental to or otherwise pertaining to that tax, | 0025| shall not be repealed or amended or otherwise directly or | 0001| indirectly modified in such a manner as to impair adversely any | 0002| outstanding regional transit revenue bonds that may be secured by | 0003| a pledge of that tax, unless those outstanding revenue bonds have | 0004| been discharged in full or provisions have been fully made for the | 0005| discharge. | 0006| Section 12. [NEW MATERIAL] REGIONAL TRANSIT GROSS RECEIPTS | 0007| TAX--EFFECTIVE DATE OF RESOLUTION--COMPLIANCE WITH GROSS RECEIPTS | 0008| AND COMPENSATING TAX ACT AND REQUIREMENTS OF DEPARTMENT-- | 0009| SUBMISSION OF COPY TO DEPARTMENT.-- | 0010| A. Unless another date is approved by the department, | 0011| a resolution imposing, amending or repealing a regional transit | 0012| gross receipts tax or an increment of the tax pursuant to the | 0013| Regional Transit Authority Act shall be effective on July 1 or | 0014| January 1, whichever date occurs first, after the expiration of at | 0015| least three months from the date the adopted resolution is mailed | 0016| or delivered to the department. The resolution shall include the | 0017| effective date. | 0018| B. A resolution imposing a regional transit gross | 0019| receipts tax pursuant to the Regional Transit Authority Act shall | 0020| adopt by reference the same definitions and the same provisions | 0021| relating to exemptions and deductions as are contained in the | 0022| Gross Receipts and Compensating Tax Act then in effect and as it | 0023| may be amended from time to time. | 0024| C. The board imposing the regional transit gross | 0025| receipts tax pursuant to the Regional Transit Authority Act shall | 0001| impose the tax by adopting the model resolution with respect to | 0002| the tax furnished to the authority by the department. A | 0003| resolution that does not conform substantially to the model | 0004| resolution of the department is invalid. | 0005| D. A certified copy of the resolution imposing or | 0006| repealing a regional transit gross receipts tax authorized under | 0007| the Regional Transit Authority Act or changing the tax rate | 0008| imposed shall be mailed or delivered to the department within five | 0009| days after the resolution is adopted. | 0010| Section 13. [NEW MATERIAL] REGIONAL TRANSIT GROSS RECEIPTS | 0011| TAX--SPECIFIC EXEMPTIONS.--No regional transit gross receipts tax | 0012| authorized under the Regional Transit Authority Act shall be | 0013| imposed on the gross receipts arising from transporting persons or | 0014| property for hire by railroad, motor vehicle, air transportation | 0015| or any other means from one point within the authority to another | 0016| point outside the authority, nor shall the tax be imposed on | 0017| direct satellite broadcasting or on gross receipts that are exempt | 0018| by federal law. | 0019| Section 14. [NEW MATERIAL] REGIONAL TRANSIT GROSS RECEIPTS | 0020| TAX--COLLECTION BY DEPARTMENT--TRANSFER OF PROCEEDS--DEDUCTION.-- | 0021| A. The department shall collect the regional transit | 0022| gross receipts tax imposed pursuant to the provisions of the | 0023| Regional Transit Authority Act in the same manner and at the same | 0024| time it collects the state gross receipts tax. | 0025| B. The department may deduct an amount not to exceed | 0001| three percent of the regional transit gross receipts tax collected | 0002| under the provisions of the Regional Transit Authority Act as a | 0003| charge for the administrative costs of collection. That amount | 0004| shall be remitted to the state treasurer for deposit in the state | 0005| general fund each month. | 0006| C. The department shall transfer to each authority for | 0007| which it is collecting a regional transit gross receipts tax | 0008| pursuant to the provisions of the Regional Transit Authority Act | 0009| the amount of the tax collected for that authority, less any | 0010| disbursement for administrative charges made pursuant to | 0011| Subsection B of this section, tax credits, refunds and the payment | 0012| of interest applicable to the tax. The transfer to the authority | 0013| shall be made within the month following the month in which the | 0014| tax is collected. | 0015| Section 15. [NEW MATERIAL] REGIONAL TRANSIT GROSS RECEIPTS | 0016| TAX--ADMINISTRATION AND ENFORCEMENT OF ACT.-- | 0017| A. The department shall interpret the provisions of | 0018| the Regional Transit Authority Act with respect to the regional | 0019| transit gross receipts tax authorized under that act. | 0020| B. The department shall administer and enforce the | 0021| collection of the regional transit gross receipts tax authorized | 0022| pursuant to the Regional Transit Authority Act, and the Tax | 0023| Administration Act applies to the administration and enforcement | 0024| of the regional transit gross receipts tax. | 0025| Section 16. [NEW MATERIAL] BONDS OF THE AUTHORITY--USE-- | 0001| SECURITY.-- | 0002| A. The authority may issue and sell revenue bonds from | 0003| time to time in principal amounts it considers necessary to | 0004| provide sufficient funds for any purpose of the Regional Transit | 0005| Authority Act, including: | 0006| (1) the acquisition of real and personal | 0007| property whether by purchase or by exercising the power of eminent | 0008| domain; | 0009| (2) the purchase, construction, reconstruction, | 0010| repair, equipping, improvement or extension of a public transit | 0011| system; | 0012| (3) the payment, funding, refinancing or | 0013| refunding of the principal of or interest or redemption premiums | 0014| on bonds and other indebtedness issued or incurred by the | 0015| authority whether the bonds or interest to be paid, funded, | 0016| refinanced or refunded have or have not become due; | 0017| (4) the establishment or increase of reserves or | 0018| sinking funds to secure or to pay principal, premium, if any, or | 0019| interest on bonds and reserves relating to the operation, | 0020| maintenance and repair of a public transit system; and | 0021| (5) all other costs or expenses of the authority | 0022| necessary or convenient to carry out its corporate purposes and | 0023| powers. | 0024| B. Except as provided in Subsection D of this section, | 0025| all bonds or other obligations issued by the authority shall be | 0001| obligations of the authority payable solely from, and the | 0002| authority is authorized to pledge, transfer and assign for the | 0003| payment of the bonds: | 0004| (1) all or part of the net receipts of the | 0005| regional transit gross receipts tax that is dedicated for the | 0006| purpose for which the bonds are issued; | 0007| (2) any other revenue, income, money or funds of | 0008| the authority from any source available for the payment of the | 0009| bonds; or | 0010| (3) any grant, subsidy or contribution from the | 0011| United States or any of its agencies or instrumentalities that may | 0012| be used for the payment of bonds of the authority. | 0013| C. The bonds and other obligations of the authority | 0014| shall not create an obligation, debt or liability of the state or | 0015| any political subdivision of the state, including any governing | 0016| body included in the authority. No breach of any pledge, | 0017| obligation or agreement of the authority shall impose a pecuniary | 0018| liability or a charge upon the general credit or taxing power of | 0019| the state or any political subdivision of the state, including any | 0020| governing body included in the authority. | 0021| D. Revenues received by a municipality with a | 0022| population of ten thousand or less, as determined by the last | 0023| federal decennial census, from the levy of the gross receipts tax | 0024| pursuant to the Regional Transit Authority Act shall not be | 0025| pledged for bonds issued by an authority, but may be used for the | 0001| operation and maintenance of the authority. | 0002| Section 17. [NEW MATERIAL] BONDS--AUTHORIZATION FOR | 0003| ISSUANCE--TERMS AND CONDITIONS.-- | 0004| A. Bonds of the authority shall be authorized by | 0005| resolution of the board and may be issued in one or more series. | 0006| The bonds shall bear the dates, be in the form, be issued in the | 0007| denominations, have terms and maturities, bear interest at fixed | 0008| or variable rates or have appreciated principal, be payable in the | 0009| manner and at the times, be redeemed with or without premiums | 0010| prior to maturity, be ranked or assigned priority status and have | 0011| such other terms as the resolution of the authority or the trust | 0012| agreement or other document securing the bonds provides. | 0013| B. The bonds issued by the authority may be sold at | 0014| any time at private or public sale at prices agreed upon by the | 0015| authority. The authority may contract with the New Mexico finance | 0016| authority for issuance of bonds for short-term investment of | 0017| funds. | 0018| C. Bonds may be issued pursuant to the Regional | 0019| Transit Authority Act without obtaining the consent of any agency | 0020| of the state and without any other proceeding or condition other | 0021| than the proceedings or conditions specified in that act. | 0022| D. The bonds issued by the authority are negotiable | 0023| instruments for all purposes of the Uniform Commercial Code, | 0024| subject only to the provisions of the bonds for registration. | 0025| Section 18. [NEW MATERIAL] TRUST AGREEMENTS--CREDIT | 0001| FACILITIES--RELATED DOCUMENTS.-- | 0002| A. The authority may enter into trust agreements to | 0003| better secure the payment of any bonds issued pursuant to the | 0004| Regional Transit Authority Act with any corporate trustee and | 0005| provide in the trust agreements for the rights and limitations on | 0006| rights of the holders and owners of the bonds. | 0007| B. The authority may enter into credit facilities to | 0008| provide additional security for its bonds or for a primary or | 0009| contingent source of payment of or reimbursement for the principal | 0010| of or interest or any redemption premium on the bonds, or the | 0011| purchase price upon a tender or call of the bonds. The authority | 0012| may enter into contracts for the purchase or repurchase of its | 0013| bonds. | 0014| C. The authority may enter into reimbursement | 0015| agreements, credit agreements, escrow agreements and other | 0016| contracts and agreements as are necessary or appropriate for its | 0017| bonds. | 0018| Section 19. [NEW MATERIAL] REFUNDING BONDS.--The authority | 0019| is authorized to issue its bonds for the purpose of refunding any | 0020| outstanding bonds, including the payment of any redemption | 0021| premiums and any interest accrued or to accrue to the date of | 0022| redemption of the outstanding bonds. Until the proceeds of the | 0023| refunding bonds are applied to the purchase or retirement of the | 0024| outstanding bonds or the redemption of the outstanding bonds, the | 0025| proceeds may be placed in escrow and be invested and reinvested. | 0001| The interest, income and profits, if any, earned or realized on | 0002| any such investment may, in the discretion of the authority, also | 0003| be applied to the payment of the outstanding bonds to be refunded. | 0004| After the terms of any escrow agreement have been satisfied, any | 0005| balance remaining in escrow, including investments earnings, may | 0006| be returned to the authority for use by it in any lawful manner. | 0007| All refunding bonds shall be issued and secured and shall be | 0008| subject to the provisions of the Regional Transit Authority Act in | 0009| the same manner and to the same extent as any other bonds issued | 0010| pursuant to the Regional Transit Authority Act. | 0011| Section 20. [NEW MATERIAL] PUBLICATION OF NOTICE-- | 0012| VALIDATION--LIMITATION OF ACTION.-- | 0013| A. After adoption of a resolution authorizing the | 0014| issuance of bonds, the authority shall publish notice of the | 0015| adoption of the resolution once in a newspaper of general | 0016| circulation in the area in which the authority is located. | 0017| B. After the passage of thirty days from the time of | 0018| publication, any action attacking the validity of the proceedings | 0019| or taken by the authority in the authorization and issuance of the | 0020| bonds described in the notice is perpetually barred. | 0021| Section 21. [NEW MATERIAL] MANAGEMENT.-- | 0022| A. Responsibility for the construction, management and | 0023| operation of an authority and for control of the property | 0024| belonging to an authority shall be vested in its board. The board | 0025| may employ qualified persons deemed necessary by the board for the | 0001| conduct of the affairs of the authority, including a general | 0002| manager, bookkeeper, auditor and engineer. | 0003| B. The board shall provide for an annual audit of its | 0004| affairs by an independent certified public accountant. | 0005| Section 22. [NEW MATERIAL] ANNUAL BUDGET.--Prior to the | 0006| beginning of a fiscal year, the board shall adopt an annual | 0007| operating budget that specifies major expenditures by type and | 0008| amount. The board shall furnish the local government division of | 0009| the department of finance and administration with a copy of the | 0010| budget for review and approval no later than June 1 of each year. | 0011| Section 23. [NEW MATERIAL] RULES AND REGULATIONS.-- | 0012| A. The board may adopt and enforce reasonable rules | 0013| and regulations necessary to conduct its business, including: | 0014| (1) securing and maintaining safety and | 0015| efficiency in the operation and maintenance of its facilities; | 0016| (2) governing the use of the authority's | 0017| facilities and services by the public and the payment of fares; | 0018| (3) regulating privileges on any land, easement, | 0019| right of way or other property owned or controlled by the | 0020| authority; and | 0021| (4) employing qualified persons as necessary to | 0022| carry out the purpose of the Regional Transit Authority Act. | 0023| B. Regulations adopted by the board shall be published | 0024| once a week for two consecutive weeks in a newspaper of general | 0025| circulation in the area in which the authority is located. Rules | 0001| and regulations shall become effective ten days following the last | 0002| publication. | 0003| Section 24. [NEW MATERIAL] CONTRACTS FOR CONSTRUCTION, | 0004| GOODS OR SERVICES.--The board shall establish purchasing | 0005| guidelines, including rules governing a competitive bid process; | 0006| provided that the board shall not secure a contract that is not | 0007| subject to competitive bidding requirements or that is for the | 0008| purchase of real property or for professional services until an | 0009| announcement that a contract is being considered is posted in a | 0010| prominent place in the principal office of the authority for at | 0011| least two weeks before the contract is awarded. | 0012| Section 25. [NEW MATERIAL] CONDUCT OF ELECTIONS.-- | 0013| A. Notwithstanding initial elections necessary to | 0014| confirm the creation of an authority, board elections shall be | 0015| conducted at the time of the general election under the direction | 0016| of the municipal or county clerk and in accordance with the | 0017| provisions of the Election Code. | 0018| B. Notice of the election shall be given by | 0019| publication. | 0020| C. All polling places shall be within the area | 0021| included within the authority. | 0022| D. The secretary of the authority shall provide to | 0023| each municipal or county clerk supplies and assistance necessary | 0024| to conduct an election for membership on the board, as authorized | 0025| by the Regional Transit Authority Act. | 0001| Section 26. [NEW MATERIAL] EXEMPTION FROM TAXES.--The | 0002| property, revenues and income of an authority and the interest on | 0003| bonds issued by an authority shall be exempt from all taxes levied | 0004| by the state and its political subdivisions. | 0005| Section 27. [NEW MATERIAL] CONSTRUCTION OF ACT.--The | 0006| Regional Transit Authority Act shall be liberally construed to | 0007| carry out the purpose of that act. | 0008| Section 28. A new section of the Tax Administration Act is | 0009| enacted to read: | 0010| "[NEW MATERIAL] TRANSFER--REVENUES FROM REGIONAL TRANSIT | 0011| GROSS RECEIPTS TAXES.--A transfer pursuant to Section 7-1-6.1 NMSA | 0012| 1978 shall be made to each regional transit authority for which | 0013| the department is collecting a regional transit gross receipts tax | 0014| in an amount equal to the net receipts attributable to the | 0015| regional transit gross receipts tax imposed by that authority | 0016| pursuant to the Regional Transit Authority Act less any deductions | 0017| for administrative costs determined and made by the department | 0018| pursuant to the provisions of that act." | 0019| Section 29. Section 6-14-2 NMSA 1978 (being Laws 1970, | 0020| Chapter 10, Section 2, as amended) is amended to read: | 0021| "6-14-2. DEFINITIONS.--As used in the Public Securities | 0022| Act: | 0023| A. "net effective interest rate" means the interest | 0024| rate based on the actual price paid to a public body for its | 0025| public securities, calculated to maturity according to standard | 0001| tables of bond values; | 0002| B. "public body" means this state or any department, | 0003| board, agency or instrumentality of the state, any county, city, | 0004| town, village, school district, other district, educational | 0005| institution or any other governmental agency or political | 0006| subdivision of the state; and | 0007| C. "public securities" means any bonds, notes, | 0008| warrants or other obligations now or hereafter authorized to be | 0009| issued by any public body pursuant to the provisions of any | 0010| general or special law enacted by the legislature, but does not | 0011| include bonds, notes, warrants or other obligations issued | 0012| pursuant to: | 0013| (1) the Industrial Revenue Bond Act; | 0014| (2) the County Improvement District Act; | 0015| (3) Sections 3-33-1 through 3-33-43 NMSA 1978; | 0016| (4) the Pollution Control Revenue Bond Act; | 0017| (5) the County Pollution Control Revenue Bond | 0018| Act; | 0019| (6) the County Industrial Revenue Bond Act; | 0020| (7) the Metropolitan Redevelopment Code; | 0021| (8) the Supplemental Municipal Gross Receipts | 0022| Tax Act; | 0023| (9) the Regional Transit Authority Act; | 0024| [(9)] (10) the Hospital Equipment Loan Act; or | 0025| [(10)] (11) the New Mexico Finance Authority | 0001| Act." | 0002| Section 30. Section 6-18-4 NMSA 1978 (being Laws 1983, | 0003| Chapter 161, Section 4, as amended) is amended to read: | 0004| "6-18-4. DEFINITIONS.--As used in the Public Securities | 0005| Short-Term Interest Rate Act, unless the context otherwise | 0006| requires: | 0007| A. "bond" means any bond, debenture, note, refunding | 0008| or renewal bond or note, warrant or other security evidencing an | 0009| obligation authorized to be issued by a public body pursuant to | 0010| any provision of law of this state, including the Public | 0011| Securities Short-Term Interest Rate Act; | 0012| B. "governing body" means the city council or other | 0013| body or officer of a public body in which the legislative powers | 0014| are vested; | 0015| C. "indebtedness" means any debt evidenced by a bond | 0016| issued by a public body pursuant to any law of this state that | 0017| constitutes a debt for the purposes of Section 12 or 13 of Article | 0018| 9 of the constitution of New Mexico and the issuance of which must | 0019| be submitted to a vote of the qualified electors of the public | 0020| body pursuant to those sections and any bond issued for the | 0021| purpose of paying or refunding any such bond; | 0022| D. "bond legislation" means an ordinance or a | 0023| resolution or other appropriate enactment adopted by a governing | 0024| body [of a public body] providing for the authorization or sale of | 0025| bonds and any trust agreement, credit agreement, letter of credit, | 0001| reimbursement agreement or other credit facility, dealer | 0002| agreement, issuing or paying agent agreement, purchase commitment | 0003| agreement, escrow agreement, remarketing agreement, index agent | 0004| agreement or other agreement with respect to the bonds to which | 0005| the public body or trustee for the bonds is a party; and | 0006| E. "public body" means any municipality, any county, | 0007| any school district, any special district, any H class county | 0008| [located in New Mexico], the New Mexico hospital equipment loan | 0009| council, state institutions enumerated in Section 6-13-2 NMSA | 0010| 1978, the water quality control commission, the state board of | 0011| finance, the New Mexico finance authority, a regional transit | 0012| authority created pursuant to the Regional Transit Authority Act | 0013| or the state." | 0014| Section 31. EFFECTIVE DATE.--The effective date of the | 0015| provisions of this act is July 1, 1997. | 0016|  |