0001| HOUSE BILL 871 | 0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0003| INTRODUCED BY | 0004| PAULINE K. GUBBELS | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO PUBLIC SECURITIES; AMENDING SECTIONS OF THE NMSA | 0012| 1978. | 0013| | 0014| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0015| Section 1. Section 6-14-2 NMSA 1978 (being Laws 1970, | 0016| Chapter 10, Section 2, as amended) is amended to read: | 0017| "6-14-2. DEFINITIONS.--As used in the Public Securities | 0018| Act: | 0019| A. "net effective interest rate" means the interest | 0020| rate [based on the actual price paid to a public body for | 0021| its] of public securities, [calculated to maturity | 0022| according to standard tables of bond values] compounded | 0023| semiannually, necessary to discount the scheduled debt service | 0024| payments of principal and interest to the date of the public | 0025| securities and to the price paid to the public body for the | 0001| public securities, excluding any interest accrued to the date | 0002| of delivery and based upon a year with the same number of days | 0003| as the number of days for which interest is computed on the | 0004| public securities; | 0005| B. "public body" means this state or any | 0006| department, board, agency or instrumentality of the state, any | 0007| county, city, town, village, school district, other district, | 0008| educational institution or any other governmental agency or | 0009| political subdivision of the state; and | 0010| C. "public securities" means any bonds, notes, | 0011| warrants or other obligations now or hereafter authorized to be | 0012| issued by any public body pursuant to the provisions of any | 0013| general or special law enacted by the legislature, but does not | 0014| include bonds, notes, warrants or other obligations issued | 0015| pursuant to: | 0016| (1) the Industrial Revenue Bond Act; | 0017| (2) the County Improvement District Act; | 0018| (3) Sections 3-33-1 through 3-33-43 NMSA 1978; | 0019| (4) the Pollution Control Revenue Bond Act; | 0020| (5) the County Pollution Control Revenue Bond | 0021| Act; | 0022| (6) the County Industrial Revenue Bond Act; | 0023| (7) the Metropolitan Redevelopment Code; | 0024| (8) the Supplemental Municipal Gross Receipts | 0025| Tax Act; | 0001| (9) the Hospital Equipment Loan Act; or | 0002| (10) the New Mexico Finance Authority Act." | 0003| Section 2. Section 6-15-5 NMSA 1978 (being Laws 1929, | 0004| Chapter 201, Section 3, as amended) is amended to read: | 0005| "6-15-5. SALE OF BONDS.-- | 0006| A. Except as provided in Subsection B of this | 0007| section, before any bonds issued by a municipal corporation are | 0008| offered for sale, the corporate authorities issuing the bonds | 0009| shall designate the maximum [rate of interest the bonds shall | 0010| bear and shall designate the maximum] net effective interest | 0011| rate the bonds shall bear, which shall not exceed the maximum | 0012| permitted by the Public Securities Act. All the bonds shall be | 0013| sold at either public or negotiated sale [and] or | 0014| private sale to the state of New Mexico. | 0015| B. If sold at public sale, a notice calling for | 0016| bids for the purchase of the bonds shall be published once [a | 0017| week for two consecutive weeks] in a newspaper having local | 0018| circulation or in any financial newspaper or periodical. The | 0019| notice shall specify a place and designate a day and hour | 0020| subsequent to the date of the publication when sealed bids | 0021| shall be received and publicly opened for the purchase of the | 0022| bonds. The notice shall specify the maximum [rate of interest | 0023| the bonds shall bear, the maximum] net effective interest rate | 0024| permitted for the bonds and the maximum discount if a discount | 0025| is allowed by the governing body and shall require bidders to | 0001| submit a bid specifying the lowest rate [or rates] of | 0002| interest and any premium or discount if allowed by the | 0003| governing body at, above or below par at which the bidder will | 0004| purchase the bonds. The bonds shall be sold to the | 0005| responsible bidder making the best bid determined by the | 0006| municipal corporation as set forth in the notice, subject to | 0007| the right of the governing body to reject any and all bids and | 0008| readvertise or sell the bonds at negotiated sale or at private | 0009| sale to the state of New Mexico. All bids shall be sealed | 0010| [and] or sent by facsimile or other electronic transition to | 0011| the municipal corporation as set forth in the notice. Except | 0012| for the bid of the state of New Mexico if one is received, | 0013| all bids shall be accompanied by a deposit of not less than | 0014| two percent of the principal amount of the bonds, either in | 0015| the form of a financial surety bond or in cash or by cashier's | 0016| or treasurer's check of, or by certified check drawn on, a | 0017| solvent commercial bank or trust company in the United States, | 0018| which deposit shall be returned if the bid is not accepted. | 0019| The financial surety bond or the long-term debt obligations of | 0020| the issuer, or person guarantying the obligations of the | 0021| issuer, of the financial surety bond shall be rated in one of | 0022| the top two rating categories of a nationally recognized rating | 0023| agency, without regard to any modification of the rating, and | 0024| the financial surety bond must be issued by an insurance | 0025| company licensed to issue such a bond in New Mexico. If the | 0001| successful bidder does not complete the purchase of the bonds | 0002| within thirty days following the acceptance of his bid or | 0003| within ten days after the bonds are made ready and are offered | 0004| by the municipal corporation for delivery, whichever is later, | 0005| the amount of his deposit shall be forfeited to the municipal | 0006| corporation issuing the bonds, and, in that event, the | 0007| governing body may accept the bid of the bidder making the next | 0008| best bid. If all bids are rejected, the governing body | 0009| [shall] may readvertise the bonds for sale in the same | 0010| manner as for the original advertisement or sell the bonds at | 0011| a negotiated sale or at private sale to the state of New | 0012| Mexico. If there are two or more equal bids and the bids are | 0013| the best bids received, the governing body shall determine | 0014| which bid shall be accepted. | 0015| [B. Bonds issued by a municipal corporation may be | 0016| sold to the state at private sale without advertisement] | 0017| C. Except as provided in this section, bonds to be | 0018| issued by a municipal corporation for various purposes may be | 0019| sold and issued as a single combined issue even though they may | 0020| have been authorized by separate votes at an election or | 0021| elections. Bonds authorized by any city, town or village for | 0022| the construction or purchase of a system for supplying water, a | 0023| sanitary sewer system or a storm sewer system may be combined | 0024| with each other and sold and issued as a single issue but may | 0025| not be combined with bonds to be issued for any other purpose | 0001| that may be subject to the debt limitation of Article 9, | 0002| Section 13 of the constitution of New Mexico." | 0003| Section 3. Section 6-15-9 NMSA 1978 (being Laws 1933, | 0004| Chapter 114, Section 1, as amended) is amended to read: | 0005| "6-15-9. BONDS AUTHORIZED AT ELECTION--TIME LIMIT ON | 0006| ISSUANCE--EXCEPTIONS.--No bonds shall be issued or sold by any | 0007| school district, county or municipality after the expiration of | 0008| three years from the date of [initiation of proceedings for] | 0009| the election authorizing the issue, except for the purpose of | 0010| refunding previous bond issues or in payment of judgments or if | 0011| the issuance of the bonds has been authorized at a regular | 0012| election for officers of any such school district, county or | 0013| municipality or, where authorized by statute, at a special | 0014| election held for that purpose [such]. The bonds may be | 0015| sold to the United States or to the state at private sale or | 0016| to another purchaser at a negotiated sale in any case in which | 0017| the state or other purchaser has made an offer to purchase | 0018| the bonds and the offer was accepted prior to the expiration of | 0019| the three-year period. Any period of time when the validity of | 0020| bonds or the election therefor is in litigation shall be | 0021| excluded from the three-year period." | 0022| Section 4. Section 6-15-10 NMSA 1978 (being Laws 1933, | 0023| Chapter 114, Section 2, as amended) is amended to read: | 0024| "6-15-10. UNISSUED BONDS AUTHORIZED AT ELECTION--WHEN | 0025| VOID--EXCEPTIONS.--In all cases where bond issues by the school | 0001| districts, counties or municipalities have been authorized by | 0002| special election and the bonds have not been issued and sold | 0003| within three years from the date of the [initiation of | 0004| proceedings for the] special election authorizing the proposed | 0005| issue, the proposed bond issue is void, except where issued for | 0006| refunding bonded debt or for payment of judgments against the | 0007| district, county or municipality and, except where the issuance | 0008| of the bonds has been authorized at a regular election for | 0009| officers of any school district, county or municipality or, | 0010| where authorized by statute, at a special election held for | 0011| those purposes. Such bonds may be sold to the United States or | 0012| to the state at private sale or to another purchaser at a | 0013| negotiated sale in any case in which the state or other | 0014| purchaser has made an offer to purchase the bonds and the | 0015| offer was accepted prior to the expiration of the three-year | 0016| period." | 0017| Section 5. Section 6-18-6 NMSA 1978 (being Laws 1983, | 0018| Chapter 161, Section 6) is amended to read: | 0019| "6-18-6. SHORT-TERM BONDS.--A public body may authorize | 0020| short-term bonds which provide for any or all of the following | 0021| in or pursuant to the bond legislation: | 0022| A. principal maturities may be for any one or more | 0023| periods of two years or less from the respective dates of | 0024| issuance; | 0025| B. interest may be payable on any one or more | 0001| dates, or at principal maturity; | 0002| C. interest may but need not be represented by | 0003| coupons; | 0004| D. the bonds may be in coupon form, in form | 0005| registered as to principal or registered as to both principal | 0006| and interest, or in book entry form, and provision may be made | 0007| for exchange of one form for another; | 0008| E. the bonds may be in form with stated interest or | 0009| in discount form without stated interest, or a combination | 0010| thereof; | 0011| F. the bond legislation may provide for the renewal | 0012| or refunding of such bonds, at or before maturity, by the | 0013| issuance or successive issuance of renewal or refunding bonds | 0014| under that bond legislation without necessity for further act | 0015| by the governing body, provided that the maturities of such | 0016| renewal or refunding bonds shall not exceed two years from | 0017| their respective dates of issuance [and no bonds may be issued | 0018| under authority of a bond legislation more than three years | 0019| following action of the governing body on that bond legislation | 0020| unless the governing body further acts to extend such | 0021| authorization within three years prior to the issuance of such | 0022| renewal bonds]. In the bond legislation approved by the | 0023| governing body, the governing body may authorize or direct one | 0024| or more officers of the public body to: | 0025| (1) fix the interest rate or rates for each | 0001| issue of bonds and renewal or refunding issues, subject to a | 0002| maximum rate or rates as a stated interest rate or net | 0003| effective interest rate, which maximum shall be set forth in | 0004| such bond legislation or determined from time to time in | 0005| accordance with a formula, index, data or procedure as provided | 0006| for in the bond legislation, provided that, whether or not such | 0007| a formula, index, data or procedure is provided for, bond | 0008| legislation with respect to indebtedness shall set forth stated | 0009| maximums of net effective interest rates; | 0010| (2) determine the discount for bonds with | 0011| stated interest and for bonds without stated interest, subject | 0012| to any limitations thereon provided in the bond legislation; | 0013| (3) fix the date of such bonds, which may be | 0014| stated in such bond legislation as the date or dates of issue | 0015| and which may be a date on or before the respective date or | 0016| dates of issuance; | 0017| (4) fix the maturity date or dates of such | 0018| bonds, which shall be within minimum and maximum periods | 0019| described in such bond legislation; and | 0020| (5) designate the denomination of such bonds, | 0021| subject to minimums and integral multiples of stated amounts | 0022| provided in such bond legislation; | 0023| G. the public body may contract with agents or | 0024| trustees for services in connection with the issuance, | 0025| transfer, exchange, registration, record keeping for and the | 0001| payment of such bonds and matters incidental thereto, and the | 0002| public body has authority to act under such contracts. Without | 0003| limiting the generality of the preceding sentence, such | 0004| contracts may provide: | 0005| (1) for the maintenance of a supply of bond | 0006| forms with the agent or trustee, which forms bear the facsimile | 0007| of all signatures of officers of the public body necessary for | 0008| the purpose and, if applicable, the facsimile of the seal of | 0009| the public body, contain blanks as to owner, date, maturity, | 0010| denomination, interest rates and original issue discount as | 0011| appropriate, and provide a form of authentication by the agent | 0012| or trustee upon issuance; | 0013| (2) for the officer or officers of the public | 0014| body, authorized by the governing body to do so, to direct the | 0015| agent or trustee with respect to the completion of such blanks | 0016| and the delivery of the bonds, by oral, electronic or written | 0017| communication prior to the authentication and delivery of such | 0018| bonds, and that any such oral or electronic communication | 0019| thereafter shall be confirmed in writing; and | 0020| (3) for the establishment with the agent or | 0021| trustee of funds, in trust, for payment of the principal of and | 0022| interest on the bonds and for payments by and on behalf of the | 0023| public body into such funds, including payments thereto from | 0024| the proceeds of renewal or refunding bonds; | 0025| H. the public body may contract with banks or | 0001| investment bankers, or others with appropriate capabilities, to | 0002| provide services, which may be on an exclusive basis, in the | 0003| placement of the bonds with purchasers, or to purchase the | 0004| bonds, or both, which contract may provide for all matters | 0005| incidental thereto and may be a negotiated contract; | 0006| I. the public body may covenant, in the bond | 0007| legislation, to the holders or owners of the bonds and to the | 0008| trustee, if any, for the benefit of such holders and owners, | 0009| that it will issue bonds to renew, or fund or refund, the bonds | 0010| and any accrued interest thereon, at or before maturity to the | 0011| extent not provided for from money otherwise available for the | 0012| purpose. In addition to other reductions permitted in the levy | 0013| of property taxes for principal or interest on indebtedness, | 0014| reduction may be made to the extent that principal or interest | 0015| thereon is to be covered by the proceeds of refunding or | 0016| renewal bonds; | 0017| J. in addition to the authority to issue bonds for | 0018| such purposes under the Public Securities Short-Term Interest | 0019| Rate Act, the public body may, to the extent not prohibited by | 0020| the bond legislation, retire or provide for the payment at any | 0021| time of the bonds authorized under that act by the issuance of | 0022| bonds under authority of any other law consistent with the | 0023| maturities and other terms authorized by such laws and without | 0024| impediment or other effect thereunder by reason of previously | 0025| having issued the bonds under the Public Securities Short-Term | 0001| Interest Rate Act, except as stated in Subsection B of Section | 0002| [10 of that act] 6-18-10 NMSA 1978; and | 0003| K. the provisions of Section [7 of the Public | 0004| Securities Short-Term Interest Rate Act] 6-18-7 NMSA 1978 | 0005| may be used with respect to any bonds issued pursuant to this | 0006| section." | 0007|  | 0008| State of New Mexico | 0009| House of Representatives | 0010| | 0011| FORTY-THIRD LEGISLATURE | 0012| FIRST SESSION, 1997 | 0013| | 0014| | 0015| February 27, 1997 | 0016| | 0017| | 0018| Mr. Speaker: | 0019| | 0020| Your BUSINESS AND INDUSTRY COMMITTEE, to whom has | 0021| been referred | 0022| | 0023| HOUSE BILL 871 | 0024| | 0025| has had it under consideration and reports same with | 0001| recommendation that it DO PASS, amended as follows: | 0002| | 0003| 1. On page 3, line 5, after "A.", strike the remainder of | 0004| the line, strike line 6 up to "any" and insert in lieu thereof | 0005| "Before". | 0006| | 0007| 2. On page 3, line 7, before "sale" insert "public". | 0008| | 0009| 3. On page 3, line 12, after "at" strike the remainder of | 0010| the line and insert in lieu thereof "public sale or if the bonds | 0011| cannot be sold at public sale, as provided in Subsection B of | 0012| this section, then the bonds may be sold at a negotiated sale or | 0013| private sale". | 0014| | 0015| 4. On page 3, line 13, before the period insert "or the | 0016| United States". | 0017| | 0018| 5. On page 3, line 16, before "in", insert "at least one | 0019| week prior to the date of the sale,". | 0020| | 0021| 6. On page 3, line 17, strike the underscored language. | 0022| | 0023| 7. On page 3, line 19, strike "sealed". | 0024| | 0025| | 0001| 8. On page 4, line 7, before the period insert "or the | 0002| United States". | 0003| | 0004| 9. On page 4, line 9, strike "transition" and insert in | 0005| lieu thereof "transmission". | 0006| | 0007| 10. On page 4, line 10, before "if" insert "or the United | 0008| States". | 0009| | 0010| 11. On page 5, line 9, before the period insert "or the | 0011| United States"., | 0012| | 0013| and thence referred to the APPROPRIATIONS AND FINANCE | 0014| COMMITTEE. | 0015| | 0016| | 0017| Respectfully submitted, | 0018| | 0019| | 0020| | 0021| | 0022| | 0023| | 0024| Fred Luna, Chairman | 0025| | 0001| | 0002| Adopted Not Adopted | 0003| (Chief Clerk) | 0004| (Chief Clerk) | 0005| | 0006| Date | 0007| | 0008| The roll call vote was 8 | 0009| For 0 Against | 0010| Yes: 8 | 0011| Excused: Alwin, Kissner, Lutz, Varela | 0012| Absent: Getty | 0013| | 0014| | 0015| .117869.1 | 0016| G:\BILLTEXT\BILLW_97\H0871 | 0017| | 0018| FORTY-THIRD LEGISLATURE | 0019| FIRST SESSION, 1997 | 0020| | 0021| | 0022| March 21, 1997 | 0023| | 0024| Mr. President: | 0025| | 0001| Your PUBLIC AFFAIRS COMMITTEE, to whom has been | 0002| referred | 0003| | 0004| HOUSE BILL 871, as amended | 0005| | 0006| has had it under consideration and reports same with | 0007| recommendation that it DO PASS, and thence referred to the | 0008| FINANCE COMMITTEE. | 0009| | 0010| Respectfully submitted, | 0011| | 0012| | 0013| | 0014| | 0015| __________________________________ | 0016| Shannon Robinson, Chairman | 0017| | 0018| | 0019| | 0020| Adopted_______________________ Not | 0021| Adopted_______________________ | 0022| (Chief Clerk) (Chief Clerk) | 0023| | 0024| | 0025| Date ________________________ | 0001| | 0002| | 0003| The roll call vote was 6 For 0 Against | 0004| Yes: 6 | 0005| No: 0 | 0006| Excused: Adair, Ingle, Smith | 0007| Absent: None | 0008| | 0009| | 0010| | 0011| | 0012| H0871PA1 | 0013| | 0014| FORTY-THIRD LEGISLATURE | 0015| FIRST SESSION, 1997 | 0016| | 0017| | 0018| March 22, 1997 | 0019| | 0020| Mr. President: | 0021| | 0022| Your FINANCE COMMITTEE, to whom has been referred | 0023| | 0024| HOUSE BILL 871, as amended | 0025| | 0001| has had it under consideration and reports same with | 0002| recommendation that it DO PASS. | 0003| | 0004| Respectfully submitted, | 0005| | 0006| | 0007| | 0008| | 0009| __________________________________ | 0010| Ben D. Altamirano, Chairman | 0011| | 0012| | 0013| | 0014| Adopted_______________________ Not | 0015| Adopted_______________________ | 0016| (Chief Clerk) (Chief Clerk) | 0017| | 0018| | 0019| | 0020| Date ________________________ | 0021| | 0022| | 0023| The roll call vote was 6 For 0 Against | 0024| Yes: 6 | 0025| No: None | 0001| Excused: Carraro, Eisenstadt, Ingle, Lyons, McKibben | 0002| Absent: None | 0003| | 0004| | 0005| H0871FC1 |