0001| SENATE BILL 174 | 0002| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998 | 0003| INTRODUCED BY | 0004| LINDA M. LOPEZ | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO TRANSPORTATION; ENACTING THE REGIONAL TRANSIT | 0012| AUTHORITY ACT; AUTHORIZING THE CREATION OF REGIONAL TRANSIT | 0013| AUTHORITIES; PROVIDING THE POWERS AND DUTIES OF A REGIONAL | 0014| TRANSIT AUTHORITY; AUTHORIZING THE IMPOSITION OF THE REGIONAL | 0015| TRANSIT GROSS RECEIPTS TAX; AUTHORIZING ISSUANCE OF REVENUE | 0016| BONDS; AMENDING AND ENACTING SECTIONS OF THE NMSA 1978. | 0017| | 0018| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0019| Section 1. [NEW MATERIAL] SHORT TITLE.--Sections 1 | 0020| through 27 of this act may be cited as the "Regional Transit | 0021| Authority Act". | 0022| Section 2. [NEW MATERIAL] PURPOSE.--The purpose of the | 0023| Regional Transit Authority Act is to: | 0024| A. serve the public by providing for the creation | 0025| of a comprehensive network of safe, efficient and affordable | - 1 - 0001| public transportation within a metropolitan area; | 0002| B. provide a public transit system to reduce the | 0003| congestion of single-occupant motor vehicle traffic in a | 0004| metropolitan area by providing transportation options for | 0005| residents; | 0006| C. decrease automobile accidents by reducing | 0007| traffic congestion on freeways and streets; | 0008| D. reduce noise and air pollution produced by | 0009| motor vehicles; and | 0010| E. provide residents with a choice of | 0011| transportation alternatives so that seniors, youth, low-income | 0012| and mobility-impaired residents and others unable to drive or | 0013| to afford a motor vehicle continue to have full access to the | 0014| goods, services and activities of the community. | 0015| Section 3. [NEW MATERIAL] DEFINITIONS.--As used in the | 0016| Regional Transit Authority Act: | 0017| A. "authority" means a regional transit authority | 0018| created pursuant to the provisions of the Regional Transit | 0019| Authority Act; | 0020| B. "authority area" means the physical territory | 0021| of those municipalities and counties that are members of a | 0022| regional transit authority; | 0023| C. "board" means a regional transit authority | 0024| board; | 0025| D. "condemn" or "condemnation" means the | - 2 - 0001| acquisition of property or an interest in property by a | 0002| regional transit authority through the exercise of the power | 0003| of eminent domain; | 0004| E. "department" means the taxation and revenue | 0005| department, the secretary of taxation and revenue or any | 0006| employee of the department exercising authority lawfully | 0007| delegated to that employee by the secretary; | 0008| F. "governing body" means the city council, city | 0009| commission, board of commissioners, board of trustees, board | 0010| of directors or other legislative body of a municipality or | 0011| county in which the legislative powers of the public body are | 0012| vested; | 0013| G. "high-occupancy vehicle" means a motor vehicle | 0014| carrying more than one person, including buses, vans, cars and | 0015| passenger trains; | 0016| H. "metropolitan area" means an area consisting of | 0017| at least two contiguous counties, one of which has a principal | 0018| municipality with a population in excess of fifteen thousand | 0019| or has a principal municipality with a population of no more | 0020| than five thousand that currently operates a public transit | 0021| system; | 0022| I. "motor vehicle" means a self-propelled vehicle | 0023| suitable for operation on highways; | 0024| J. "municipality" means any incorporated city, | 0025| town or village, whether incorporated under general act, | - 3 - 0001| special act or special charter; | 0002| K. "person" means an individual or any other legal | 0003| entity; | 0004| L. "principal municipality" means the municipality | 0005| of largest population within a metropolitan area; | 0006| M. "public transit system" means a public transit | 0007| network that transports passengers by means of high-occupancy | 0008| vehicles that is created and administered by an authority and | 0009| that is eligible for federal transit administration funds; and | 0010| N. "regional transit gross receipts tax" means the | 0011| gross receipts tax imposed pursuant to the Regional Transit | 0012| Authority Act. | 0013| Section 4. [NEW MATERIAL] CREATION OF TRANSIT | 0014| AUTHORITY--NOTICE AND HEARING.-- | 0015| A. The governing body of the principal | 0016| municipality in a metropolitan area may institute proceedings | 0017| to create an authority in the manner prescribed in the | 0018| Regional Transit Authority Act. | 0019| B. The proposed authority shall consist of the | 0020| principal municipality and the entire territory of at least | 0021| one of the following: | 0022| (1) the county in which the principal | 0023| municipality is located; | 0024| (2) a county adjacent to the county in which | 0025| the principal municipality is located; | - 4 - 0001| (3) a municipality in the county where the | 0002| principal municipality is located; | 0003| (4) a municipality in a county adjacent to | 0004| the county in which the principal municipality is located; or | 0005| (5) a county or municipality in an adjoining | 0006| state, pursuant to a joint powers agreement. | 0007| C. Based on a finding that a metropolitan area | 0008| lacks adequate public transportation infrastructure and | 0009| services, the governing body of the principal municipality | 0010| may, by a majority vote, adopt a resolution proposing to | 0011| create an authority. The resolution shall include the | 0012| territorial area of the proposed authority and the time and | 0013| place of the public hearing on the proposal. | 0014| D. A copy of the resolution shall be sent by | 0015| registered mail to each governing body included in the | 0016| proposed authority area. Notice of the public hearing and a | 0017| copy of the resolution shall be published by each county and | 0018| municipality once a week for two consecutive weeks in at least | 0019| one newspaper of general circulation in the metropolitan area. | 0020| The first publication shall be not less than fifteen days | 0021| prior to the date fixed for the hearing. Copies of the | 0022| resolution shall be made available upon request to interested | 0023| persons in the metropolitan area. | 0024| E. At the public hearing, representatives of | 0025| municipalities and counties in the metropolitan area and other | - 5 - 0001| interested persons may present evidence for or against the | 0002| creation of the proposed authority. | 0003| F. If, after hearing all evidence at the public | 0004| hearing, the governing body of the principal municipality | 0005| determines that the creation of an authority is necessary for | 0006| the public health and welfare, the governing body shall adopt | 0007| a resolution calling a confirmation election for the purpose | 0008| of submitting the proposed creation of an authority to the | 0009| voters. The ballot shall accurately describe the territorial | 0010| area to be included in the authority and authorize the | 0011| imposition of a regional transit authority gross receipts tax. | 0012| G. Each governing body included within the area of | 0013| the proposed authority shall, within sixty days of the public | 0014| hearing, approve or disapprove by resolution its inclusion. | 0015| Failure to adopt a resolution in favor of inclusion shall | 0016| result in that jurisdiction being excluded from the | 0017| confirmation election. At least one municipality or county in | 0018| addition to the principal municipality shall adopt a | 0019| resolution approving inclusion before a confirmation election | 0020| may be held. | 0021| H. If, after hearing all evidence at the public | 0022| hearing, the governing body of the principal municipality | 0023| determines that the creation of the authority is not necessary | 0024| for the public health and welfare, it shall not create the | 0025| authority, and the creation of an authority shall not be | - 6 - 0001| considered again for a period of at least one year. | 0002| I. Nothing in the Regional Transit Authority Act | 0003| shall be construed to prevent or impair the operation of a | 0004| public transit system in existence prior to the passage of | 0005| that act. | 0006| Section 5. [NEW MATERIAL] REGIONAL TRANSIT AUTHORITY | 0007| BOARD--MEMBERSHIP AND TERMS OF OFFICE.-- | 0008| A. An interim board representing the governing | 0009| bodies that have approved their inclusion in the proposed | 0010| authority shall be appointed within thirty days following the | 0011| adoption of those resolutions. Interim board members shall | 0012| serve until January 1 of the year following the general | 0013| election at which the first regular board members are elected. | 0014| The interim board shall have the same proportional | 0015| representation as the elected regular board and shall have the | 0016| same powers and duties as the regular board. Each interim | 0017| board member serves at the pleasure of the appointing | 0018| governing body. | 0019| B. The first regular board shall be elected at a | 0020| special election held concurrently with the general election | 0021| following the confirmation election provided for in Section 6 | 0022| of the Regional Transit Authority Act. At least sixty-three | 0023| days prior to the regular board election, the interim board | 0024| shall determine by lot from among its membership which half of | 0025| the regular board or, if the board consists of an odd number | - 7 - 0001| of members, which members shall serve initial two- and four- | 0002| year terms and shall notify the secretary of state of that | 0003| determination. Thereafter, board members shall serve terms of | 0004| four years. | 0005| C. A board shall consist of at least five members. | 0006| If a total of two counties or municipalities participate in an | 0007| authority, the principal municipality shall have three of the | 0008| five board members. If a total of three counties or | 0009| municipalities participate in an authority, the principal | 0010| municipality shall have one more than the total number of | 0011| board seats held by the other two participants. If a total of | 0012| four or more counties or municipalities participate in the | 0013| authority, each participant shall have at least one member. | 0014| Each participant shall have one additional member if, based on | 0015| the last two-year supplemental federal decennial census, that | 0016| participant has a population between fifty thousand one and | 0017| one hundred thousand residents or two additional members if | 0018| that participant has a population between one hundred thousand | 0019| one and one hundred fifty thousand residents. A municipality | 0020| or county shall have one additional member for each additional | 0021| fifty thousand residents, however, no participant shall have | 0022| majority membership on the board, unless there are three or | 0023| fewer participants. For purposes of representation on the | 0024| board, the population of incorporated municipalities within a | 0025| county shall not be counted toward the population of the | - 8 - 0001| county. | 0002| D. Vacancies on the board shall be filled for the | 0003| remainder of the term in the manner provided for the original | 0004| appointment of the interim board. Upon expiration of the term | 0005| of office of each member of the board, a member may seek | 0006| office for the succeeding term. | 0007| E. Board members shall be reimbursed for per diem | 0008| and mileage as provided for public officers in the Per Diem | 0009| and Mileage Act. | 0010| F. Board members shall be residents and qualified | 0011| voters of the counties or municipalities that they represent. | 0012| G. Board members shall select annually from among | 0013| their membership a chairman, a vice chairman, a secretary and | 0014| other officers as they deem necessary. No member of the board | 0015| or officer of the authority shall have pecuniary interest in | 0016| or benefit directly or indirectly from any contract or | 0017| agreement to which the authority is a party. | 0018| H. The board shall meet at least once a month for | 0019| the purpose of transacting the business of the authority. In | 0020| addition to regularly scheduled meetings, the chairman may | 0021| call special meetings as may be necessary upon written notice | 0022| at least ten days prior to the meeting. A majority of members | 0023| constitutes a quorum of the board for the purpose of | 0024| conducting its business and exercising its powers. | 0025| I. A member of the board may be removed from | - 9 - 0001| office for nonfeasance, misfeasance or malfeasance in office | 0002| by the governing body that it represents or by a majority of | 0003| the board. | 0004| Section 6. [NEW MATERIAL] CONFIRMATION ELECTION.-- | 0005| A. Within thirty days of its appointment, the | 0006| interim board shall adopt a resolution calling for a | 0007| confirmation election to be held no later than one hundred | 0008| eighty days from the date of that resolution. The | 0009| confirmation election shall be conducted by the county or | 0010| municipal clerk of each participating governing body to | 0011| determine whether a majority of the voters approves the | 0012| creation of an authority and the imposition of a regional | 0013| transit gross receipts tax to fund the creation of a regional | 0014| transit system. | 0015| B. The question submitted to the voters at the | 0016| confirmation election shall be: | 0017| "Shall the creation of the (name of the authority), | 0018| consisting of (names of counties and municipalities to be | 0019| included), be confirmed and shall the board of the authority | 0020| be authorized to impose a regional transit gross receipts tax, | 0021| in the amount of _______ percent of gross receipts not to | 0022| exceed one-half of one percent of the gross receipts on | 0023| persons engaging in business in the authority area, to fund a | 0024| public transit system and provide public transit services in | 0025| the metropolitan area? | - 10 - 0001| _____ Yes _____ No". | 0002| C. The election shall be conducted so that votes | 0003| are separately tabulated and canvassed in each county and | 0004| municipality where the election is held. | 0005| D. A resident of a municipality that is included | 0006| in the proposed authority shall vote only in the municipality | 0007| where he resides. | 0008| E. Those counties or municipalities where a | 0009| majority of the voters voting on the question votes against | 0010| the creation of the authority and the levy of the proposed tax | 0011| shall not become part of the authority. A municipality that | 0012| votes against the creation of the authority shall not become | 0013| part of the authority if the county in which that municipality | 0014| is located votes to join the authority. Those counties or | 0015| municipalities where a majority of the voters voting on the | 0016| question votes in favor of the creation of the authority and | 0017| the levy of the proposed tax shall remain part of the | 0018| authority, except as provided in Subsection F of this section. | 0019| F. If the vote is not favorable in the principal | 0020| municipality that initiated the confirmation election and in | 0021| at least one municipality or county, the interim board shall | 0022| be terminated, and the authority shall not be created. | 0023| G. The expense of calling and conducting the | 0024| confirmation election shall be borne by the principal | 0025| municipality. However, if the election confirms the creation | - 11 - 0001| of an authority, the authority shall reimburse the principal | 0002| municipality for all expenditures made in the course of | 0003| calling and conducting the election within twelve months after | 0004| the date on which collection of the tax for the authority | 0005| begins. | 0006| H. At any time after the confirmation election, | 0007| the board may again call an election to increase the regional | 0008| transit gross receipts tax levy for the purpose of expanding | 0009| transit services, subject to the provisions of the Regional | 0010| Transit Authority Act limiting the aggregate rate of the | 0011| regional transit gross receipts tax. The expense of calling | 0012| and conducting the election shall be borne by the authority. | 0013| If a majority of the voters voting on the question votes in | 0014| favor of the increase, that additional gross receipts tax | 0015| shall be imposed. If a majority of the voters votes against | 0016| the increase in the tax, the additional gross receipts tax | 0017| shall not be imposed, and the authority shall not again | 0018| propose to increase the tax for a period of at least two years | 0019| from the date of that election. | 0020| Section 7. [NEW MATERIAL] POWERS OF THE AUTHORITY.-- | 0021| A. An authority, when created and confirmed, shall | 0022| constitute a public body corporate and politic, exercising | 0023| governmental functions and having the power necessary to carry | 0024| out the purposes of the Regional Transit Authority Act. | 0025| B. An authority may sue and be sued in all courts | - 12 - 0001| of competent jurisdiction. | 0002| C. An authority may adopt and use a seal of the | 0003| authority. | 0004| D. An authority may fix the fiscal year for the | 0005| authority. | 0006| E. An authority may acquire property by grant, | 0007| purchase, gift, devise, lease or otherwise and may hold, use, | 0008| sell, lease or dispose of real and personal property as it | 0009| deems necessary for the full exercise of any of its powers | 0010| pursuant to the provisions of the Regional Transit Authority | 0011| Act. | 0012| F. An authority may acquire, construct, complete, | 0013| develop, own, operate and maintain a public transit system | 0014| within its boundaries and both within and without the | 0015| boundaries of municipalities. For the purpose of the system, | 0016| the authority shall have the right to use the streets, | 0017| highways and other public ways and, with permission of the | 0018| owner, to relocate or alter the construction of any street, | 0019| highway, other public way, electric and telephone lines and | 0020| properties, pipelines, conduits and other properties, whether | 0021| publicly or privately owned, if deemed necessary by the | 0022| authority in the construction, reconstruction, repair, | 0023| maintenance and operation of the system. Any damage that may | 0024| occur to the property shall be borne by the authority. | 0025| G. An authority may enter into contracts, leases | - 13 - 0001| and agreements with and accept grants and loans from the | 0002| federal government, its departments and agencies, the state | 0003| and any of its political subdivisions. A revenue bond | 0004| indenture may provide limitations upon the exercise of the | 0005| powers stated in this section, and the limitations shall apply | 0006| as long as any revenue bonds issued pursuant to this indenture | 0007| are outstanding and unpaid. | 0008| H. An authority may enter into a joint powers | 0009| agreement with a governing body of an adjoining state within a | 0010| metropolitan area. | 0011| I. An authority may impose, for the construction, | 0012| operation and maintenance of a public transit system, a gross | 0013| receipts tax on any person engaging in business in the | 0014| authority area, which shall not exceed an aggregate rate of | 0015| one-half of one percent. | 0016| J. An authority may sell, lease, convey or | 0017| otherwise dispose of any of its rights, interests or real or | 0018| personal properties or surplus material not needed for the | 0019| efficient operation and maintenance of the public transit | 0020| system. | 0021| K. An authority may lease the public transit | 0022| system or any part of the system or may contract for the use | 0023| or operation of the system by an operator. | 0024| L. An authority may enter into agreements with any | 0025| other public or private utility, communication system, common | - 14 - 0001| carrier or transportation system for the joint use of their | 0002| respective facilities or properties within the authority and | 0003| to establish routes, joint fares or transfer of passengers. | 0004| M. An authority shall establish and maintain | 0005| rates, fares, tolls, charges, rents or other compensation for | 0006| the use of the facilities of the public transit system | 0007| constructed, operated and maintained by the authority, which | 0008| shall be reasonable and nondiscriminatory, and shall, together | 0009| with the regional transit gross receipts tax and bonds issued | 0010| by the authority, be adequate to meet its financial | 0011| obligations. | 0012| N. An authority shall adopt rules governing the | 0013| use, operation and maintenance of the public transit system | 0014| and shall determine all routings. | 0015| O. An authority may contract with a governing body | 0016| to provide public transit services to an area outside the | 0017| boundaries of the authority. | 0018| P. An authority may acquire by purchase real | 0019| property and equipment necessary to develop a public transit | 0020| system, including station stops and complexes, maintenance and | 0021| operating facilities, transfer locations, bus stations and | 0022| stops, intermodal facilities and office buildings. | 0023| Q. An authority may borrow money, issue bonds and | 0024| enter into contracts and finance leasing. | 0025| R. An authority may invest funds of the authority | - 15 - 0001| in direct or indirect obligations of the United States, the | 0002| state or any of its political subdivisions. | 0003| Section 8. [NEW MATERIAL] POWER OF EMINENT DOMAIN.-- | 0004| The authority may exercise in the state the power of eminent | 0005| domain, within the authority and in the manner provided by law | 0006| for the condemnation of private property for public use, and | 0007| may take any property necessary to carry out the purposes of | 0008| the Regional Transit Authority Act. | 0009| Section 9. [NEW MATERIAL] ADDITION OR WITHDRAWAL OF | 0010| TERRITORY BY AN AUTHORITY.-- | 0011| A. After the creation of an authority, a governing | 0012| body adjacent to but not part of that authority may, by | 0013| resolution, propose to join the authority, determine the | 0014| territorial area to become a part of that authority and fix | 0015| the time and place of a public hearing on the proposal, as | 0016| provided for in Section 4 of the Regional Transit Authority | 0017| Act. If, after hearing all evidence at the public hearing, | 0018| the governing body determines that joining the authority is | 0019| necessary for the public health and welfare, the governing | 0020| body shall adopt a resolution calling a confirmation election | 0021| for the purpose of submitting the question of joining the | 0022| authority to the voters. If a majority of voters voting on | 0023| the question votes in favor of joining, the municipal or | 0024| county clerk shall certify the results of the election to the | 0025| board, and the area shall become a part of the authority. | - 16 - 0001| B. If a municipality that is a member of an | 0002| authority lawfully annexes additional territory that was not a | 0003| part of the authority at the time of its creation, the annexed | 0004| territory shall become part of the authority. | 0005| C. The governing body of a county or municipality | 0006| that is a member of an authority may withdraw from the | 0007| authority by adopting a resolution to submit to the voters the | 0008| question: "Should (name of county or municipality) withdraw | 0009| from the (name of authority)?". If a majority of voters | 0010| voting on the question votes in favor of withdrawal, the | 0011| municipal or county clerk shall certify the results of the | 0012| election to the board, and the membership of the governing | 0013| body in the authority shall cease. The regional transit gross | 0014| receipts tax shall continue to be imposed upon persons | 0015| conducting business within the area that withdrew until either | 0016| the bonds that are outstanding at the time of withdrawal are | 0017| paid in full or the withdrawing governing body negotiates an | 0018| agreement with the authority to provide funds sufficient to | 0019| pay its pro rata share of the debt service on bonds previously | 0020| issued to finance capital improvements and to acquire | 0021| authority property lying within the bounds of the county or | 0022| municipality that withdrew but outside the new boundaries of | 0023| the authority. Real property owned by the authority within | 0024| the boundaries of a withdrawing governing body shall remain | 0025| the property of the authority. The provisions of withdrawal | - 17 - 0001| shall be negotiated and agreed to by the board, the governing | 0002| body and the department; however, a municipality with a | 0003| population of ten thousand or less shall not be obligated for | 0004| payment on outstanding bonds existing at the time of | 0005| withdrawal. | 0006| D. If the principal municipality votes to withdraw | 0007| from the authority, the authority shall cease to exist. The | 0008| regional transit gross receipts tax shall continue to be | 0009| imposed until the obligations of the authority are resolved to | 0010| the satisfaction of the department. | 0011| E. After a confirmation election, additional | 0012| elections to join or withdraw shall be paid for by the | 0013| governing body that initiates the election. | 0014| Section 10. [NEW MATERIAL] REGIONAL TRANSIT GROSS | 0015| RECEIPTS TAX--IMPOSITION--RATE AUTHORIZED.-- | 0016| A. After the voters have approved by confirmation | 0017| election the creation of the authority and the imposition of | 0018| the regional transit gross receipts tax, the interim authority | 0019| board shall, by resolution, impose a regional transit gross | 0020| receipts tax on any person engaging in business in the | 0021| authority area for the privilege of engaging in business. The | 0022| rate of the regional transit gross receipts tax shall not | 0023| exceed the lesser of one-half of one percent or a lower rate | 0024| approved by the voters either in the confirmation election, | 0025| or, if a subsequent election has been held pursuant to | - 18 - 0001| Subsection H of Section 6 of the Regional Transit Authority | 0002| Act, the amount from that election. The tax shall be known as | 0003| the "regional transit gross receipts tax". | 0004| B. The tax imposed pursuant to this section may be | 0005| imposed in one-sixteenth, one-eighth, one-fourth or one-half | 0006| of one percent increments or any number of such increments by | 0007| the enactment of one or more resolutions, but the total | 0008| regional transit gross receipts tax rate imposed by all | 0009| resolutions shall not exceed an aggregate rate of one-half of | 0010| one percent. | 0011| C. The board, at the time of enacting a resolution | 0012| imposing or changing the tax authorized in Subsection A of | 0013| this section, shall dedicate the revenue for the management, | 0014| construction or operation of the public transit system or for | 0015| specific public transit projects or services of the authority | 0016| pursuant to the Regional Transit Authority Act. | 0017| D. Any law that imposes or authorizes the | 0018| imposition of a regional transit gross receipts tax or that | 0019| affects that tax, or any law supplemental to or otherwise | 0020| pertaining to that tax, shall not be repealed or amended or | 0021| otherwise directly or indirectly modified in such a manner as | 0022| to impair adversely any outstanding regional transit revenue | 0023| bonds that may be secured by a pledge of that tax, unless | 0024| those outstanding revenue bonds have been discharged in full | 0025| or provisions have been fully made for the discharge. | - 19 - 0001| Section 11. [NEW MATERIAL] REGIONAL TRANSIT GROSS | 0002| RECEIPTS TAX--EFFECTIVE DATE OF RESOLUTION--COMPLIANCE WITH | 0003| GROSS RECEIPTS AND COMPENSATING TAX ACT AND REQUIREMENTS OF | 0004| DEPARTMENT--SUBMISSION OF COPY TO DEPARTMENT.-- | 0005| A. A resolution imposing, amending or repealing a | 0006| regional transit gross receipts tax or an increment of the tax | 0007| pursuant to the Regional Transit Authority Act shall be | 0008| effective on July 1 or January 1, whichever date occurs first, | 0009| after the expiration of at least three months from the date | 0010| the adopted resolution is mailed or delivered to the | 0011| department. The resolution shall include the effective date. | 0012| B. A resolution imposing a regional transit gross | 0013| receipts tax pursuant to the Regional Transit Authority Act | 0014| shall adopt by reference the same definitions and the same | 0015| provisions relating to exemptions and deductions as are | 0016| contained in the Gross Receipts and Compensating Tax Act then | 0017| in effect and as it may be amended from time to time. | 0018| C. The board shall impose the regional transit | 0019| gross receipts tax by adopting the model resolution with | 0020| respect to the tax furnished to the authority by the | 0021| department. A resolution that does not conform substantially | 0022| to the model resolution of the department is invalid. | 0023| D. A certified copy of the resolution imposing or | 0024| repealing a regional transit gross receipts tax authorized by | 0025| the Regional Transit Authority Act or changing the tax rate | - 20 - 0001| imposed shall be mailed or delivered to the department within | 0002| five days after the resolution is adopted. | 0003| Section 12. [NEW MATERIAL] REGIONAL TRANSIT GROSS | 0004| RECEIPTS TAX--SPECIFIC EXEMPTIONS.--No regional transit gross | 0005| receipts tax authorized by the Regional Transit Authority Act | 0006| shall be imposed on the gross receipts arising from | 0007| transporting persons or property for hire by railroad, motor | 0008| vehicle, air transportation or any other means from one point | 0009| within the authority to another point outside the authority, | 0010| nor shall the tax be imposed on direct satellite broadcasting | 0011| or on gross receipts that are exempt by federal law. | 0012| Section 13. [NEW MATERIAL] REGIONAL TRANSIT GROSS | 0013| RECEIPTS TAX--COLLECTION BY DEPARTMENT--TRANSFER OF PROCEEDS-- | 0014| DEDUCTION.-- | 0015| A. The department shall collect the regional | 0016| transit gross receipts tax imposed pursuant to the provisions | 0017| of the Regional Transit Authority Act in the same manner and | 0018| at the same time it collects the state gross receipts tax, | 0019| except as provided in Section 26 of that act. | 0020| B. The department may deduct an amount not to | 0021| exceed three percent of the regional transit gross receipts | 0022| tax collected pursuant to the provisions of the Regional | 0023| Transit Authority Act as a charge for the administrative costs | 0024| of collection. That amount shall be remitted to the state | 0025| treasurer for deposit in the state general fund each month. | - 21 - 0001| C. The department shall transfer to each authority | 0002| for which it is collecting a regional transit gross receipts | 0003| tax pursuant to the provisions of the Regional Transit | 0004| Authority Act the amount of the tax collected for that | 0005| authority, less any disbursement for administrative charges | 0006| made pursuant to Subsection B of this section, tax credits, | 0007| refunds and the payment of interest applicable to the tax. | 0008| The transfer to the authority shall be made within the month | 0009| following the month in which the tax is collected. | 0010| Section 14. [NEW MATERIAL] REGIONAL TRANSIT GROSS | 0011| RECEIPTS TAX--ADMINISTRATION AND ENFORCEMENT OF ACT.-- | 0012| A. The department shall interpret the provisions | 0013| of the Regional Transit Authority Act with respect to the | 0014| regional transit gross receipts tax authorized by that act. | 0015| B. The department shall administer and enforce the | 0016| collection of the regional transit gross receipts tax | 0017| authorized pursuant to the Regional Transit Authority Act, and | 0018| the Tax Administration Act applies to the administration and | 0019| enforcement of the regional transit gross receipts tax. | 0020| Section 15. [NEW MATERIAL] BONDS OF THE AUTHORITY-- | 0021| USE--SECURITY.-- | 0022| A. The authority may issue and sell revenue bonds | 0023| from time to time in principal amounts it considers necessary | 0024| to provide sufficient funds for any purpose of the Regional | 0025| Transit Authority Act, including: | - 22 - 0001| (1) the acquisition of real and personal | 0002| property whether by purchase or by exercising the power of | 0003| eminent domain; | 0004| (2) the purchase, construction, | 0005| reconstruction, repair, equipment, improvement or extension of | 0006| a public transit system; | 0007| (3) the payment, funding, refinancing or | 0008| refunding of the principal of or interest or redemption | 0009| premiums on bonds and other indebtedness issued or incurred by | 0010| the authority whether the bonds or interest to be paid, | 0011| funded, refinanced or refunded have or have not become due; | 0012| (4) the establishment or increase of reserves | 0013| or sinking funds to secure or to pay principal, premium, if | 0014| any, or interest on bonds and reserves relating to the | 0015| operation, maintenance and repair of a public transit system; | 0016| and | 0017| (5) all other costs or expenses of the | 0018| authority necessary or convenient to carry out its corporate | 0019| purposes and powers. | 0020| B. Except as provided in Subsection D of this | 0021| section, all bonds or other obligations issued by the | 0022| authority shall be obligations of the authority payable solely | 0023| from, and the authority is authorized to pledge, transfer and | 0024| assign for the payment of the bonds: | 0025| (1) all or part of the net receipts of the | - 23 - 0001| regional transit gross receipts tax that is dedicated for the | 0002| purpose for which the bonds are issued; | 0003| (2) any other revenue, income, money or funds | 0004| of the authority from any source available for the payment of | 0005| the bonds; or | 0006| (3) any grant, subsidy or contribution from | 0007| the United States or any of its agencies or instrumentalities | 0008| that may be used for the payment of bonds of the authority. | 0009| C. The bonds and other obligations of the | 0010| authority shall not create an obligation, debt or liability of | 0011| the state or any political subdivision of the state, including | 0012| any governing body included in the authority. No breach of | 0013| any pledge, obligation or agreement of the authority shall | 0014| impose a pecuniary liability or a charge upon the general | 0015| credit or taxing power of the state or any political | 0016| subdivision of the state, including any governing body | 0017| included in the authority. | 0018| D. Revenues received by a municipality with a | 0019| population of ten thousand or less, as determined by the last | 0020| supplemental federal decennial census, from the levy of the | 0021| regional transit gross receipts tax pursuant to the Regional | 0022| Transit Authority Act shall not be pledged for bonds issued by | 0023| an authority but may be used for the operation and maintenance | 0024| of the authority. | 0025| Section 16. [NEW MATERIAL] BONDS--AUTHORIZATION FOR | - 24 - 0001| ISSUANCE--TERMS AND CONDITIONS.-- | 0002| A. Bonds of the authority shall be authorized by | 0003| resolution of the board and may be issued in one or more | 0004| series. The bonds shall be issued in the denominations, and | 0005| have terms and maturities provided for in the resolution, and | 0006| shall otherwise bear the terms and conditions as specified in | 0007| the resolution. | 0008| B. The bonds issued by the authority may be sold | 0009| at any time at private or public sale at prices agreed upon by | 0010| the authority. The authority may contract with the New Mexico | 0011| finance authority for issuance of bonds for short-term | 0012| investment of funds. | 0013| C. Bonds may be issued pursuant to the Regional | 0014| Transit Authority Act without obtaining the consent of any | 0015| agency of the state and without any other proceeding or | 0016| condition other than the proceedings or conditions specified | 0017| in that act. | 0018| D. The bonds issued by the authority are | 0019| negotiable instruments for all purposes of the Uniform | 0020| Commercial Code, subject only to the provisions of the bonds | 0021| for registration. | 0022| Section 17. [NEW MATERIAL] TRUST AGREEMENTS--CREDIT | 0023| FACILITIES--RELATED DOCUMENTS.-- | 0024| A. The authority may enter into trust agreements | 0025| to better secure the payment of any bonds issued pursuant to | - 25 - 0001| the Regional Transit Authority Act with any corporate trustee | 0002| and provide in the trust agreements for the rights and | 0003| limitations on rights of the holders and owners of the bonds. | 0004| B. The authority may enter into credit facilities | 0005| to provide additional security for its bonds or for a primary | 0006| or contingent source of payment of or reimbursement for the | 0007| principal of or interest or any redemption premium on the | 0008| bonds, or for the purchase price upon a tender or call of the | 0009| bonds. The authority may enter into contracts for the | 0010| purchase or repurchase of its bonds. | 0011| C. The authority may enter into reimbursement | 0012| agreements, credit agreements, escrow agreements and other | 0013| contracts and agreements as are necessary or appropriate for | 0014| its bonds. | 0015| Section 18. [NEW MATERIAL] REFUNDING BONDS.--The | 0016| authority is authorized to issue its bonds for the purpose of | 0017| refunding any outstanding bonds, including the payment of any | 0018| redemption premiums and any interest accrued or to accrue to | 0019| the date of redemption of the outstanding bonds. Until the | 0020| proceeds of the refunding bonds are applied to the purchase or | 0021| retirement of the outstanding bonds or the redemption of the | 0022| outstanding bonds, the proceeds may be placed in escrow and be | 0023| invested and reinvested. The interest, income and profits, if | 0024| any, earned or realized on any such investment may, at the | 0025| discretion of the authority, also be applied to the payment of | - 26 - 0001| the outstanding bonds to be refunded. After the terms of any | 0002| escrow agreement have been satisfied, any balance remaining in | 0003| escrow, including investment earnings, may be returned to the | 0004| authority for use by it in any lawful manner. All refunding | 0005| bonds shall be issued and secured and shall be subject to the | 0006| provisions of the Regional Transit Authority Act in the same | 0007| manner and to the same extent as any other bonds issued | 0008| pursuant to the Regional Transit Authority Act. | 0009| Section 19. [NEW MATERIAL] PUBLICATION OF NOTICE-- | 0010| VALIDATION--LIMITATION OF ACTION.-- | 0011| A. After adoption of a resolution authorizing the | 0012| issuance of bonds, the authority shall publish notice of the | 0013| adoption of the resolution once in a newspaper of general | 0014| circulation in the area in which the authority is located. | 0015| B. After the passage of thirty days from the time | 0016| of publication, any action attacking the validity of the | 0017| proceedings or taken by the authority in the authorization and | 0018| issuance of the bonds described in the notice is perpetually | 0019| barred. | 0020| Section 20. [NEW MATERIAL] MANAGEMENT.-- | 0021| A. Responsibility for the construction, management | 0022| and operation of an authority and for control of the property | 0023| belonging to an authority shall be vested in its board. The | 0024| board may employ qualified persons deemed necessary by the | 0025| board to conduct the affairs of the authority, including a | - 27 - 0001| general manager, bookkeeper, auditor and engineer. | 0002| B. The board shall provide for an annual audit of | 0003| its affairs by an independent certified public accountant. | 0004| Section 21. [NEW MATERIAL] ANNUAL BUDGET.--Prior to | 0005| the beginning of a fiscal year, the board shall adopt an | 0006| annual operating budget that specifies major expenditures by | 0007| type and amount. The board shall furnish the local government | 0008| division of the department of finance and administration with | 0009| a copy of the budget for review and approval no later than | 0010| June 1 of each year. | 0011| Section 22. [NEW MATERIAL] RULES AND REGULATIONS.-- | 0012| A. The board may adopt and enforce reasonable | 0013| rules and regulations necessary to conduct its business, | 0014| including: | 0015| (1) securing and maintaining safety and | 0016| efficiency in the operation and maintenance of its facilities; | 0017| (2) governing the use of the authority's | 0018| facilities and services by the public and the payment of | 0019| fares; | 0020| (3) regulating privileges on any land, | 0021| easement, right of way or other property owned or controlled | 0022| by the authority; and | 0023| (4) employing qualified persons as necessary | 0024| to carry out the purpose of the Regional Transit Authority | 0025| Act. | - 28 - 0001| B. Regulations adopted by the board shall be | 0002| published once a week for two consecutive weeks in a newspaper | 0003| of general circulation in the area where the authority is | 0004| located. Rules and regulations shall become effective ten | 0005| days following the last publication. | 0006| Section 23. [NEW MATERIAL] CONTRACTS FOR CONSTRUCTION, | 0007| GOODS OR SERVICES.--The board shall establish purchasing | 0008| guidelines, including rules governing a competitive bid | 0009| process; provided that the board shall not secure a contract | 0010| that is not subject to competitive bidding requirements or | 0011| that is for the purchase of real property or for professional | 0012| services until an announcement that a contract is being | 0013| considered is posted in a prominent place in the main office | 0014| of the authority for at least two weeks before the contract is | 0015| awarded. | 0016| Section 24. [NEW MATERIAL] CONDUCT OF ELECTIONS.-- | 0017| A. Except for the initial election necessary to | 0018| confirm the creation of an authority, board elections shall be | 0019| conducted at the time of the general election under the | 0020| direction of the municipal or county clerk and in accordance | 0021| with the provisions of the Election Code. | 0022| B. Notice of the election shall be given by | 0023| publication. | 0024| C. All polling places shall be within the area | 0025| included within the authority. | - 29 - 0001| D. The secretary of the authority shall provide to | 0002| each municipal or county clerk supplies and assistance | 0003| necessary to conduct an election for membership on the board, | 0004| as authorized by the Regional Transit Authority Act. | 0005| Section 25. [NEW MATERIAL] EXEMPTION FROM TAXES.--The | 0006| property, revenues and income of an authority and the interest | 0007| on bonds issued by an authority shall be exempt from all taxes | 0008| levied by the state and its political subdivisions. | 0009| Section 26. [NEW MATERIAL] WHEN TAX NOT COLLECTED BY | 0010| DEPARTMENT.--If a regional transit authority gross receipts | 0011| tax has not been imposed by June 30, 2005, then the department | 0012| shall not collect or distribute a tax for a regional transit | 0013| authority created after that date. If a tax has been imposed | 0014| before that date, then this section shall not apply. | 0015| Section 27. [NEW MATERIAL] CONSTRUCTION OF ACT.--The | 0016| Regional Transit Authority Act shall be liberally construed to | 0017| carry out the purpose of that act. | 0018| Section 28. A new section of the Tax Administration Act | 0019| is enacted to read: | 0020| "[NEW MATERIAL] TRANSFER--REVENUES FROM REGIONAL | 0021| TRANSIT GROSS RECEIPTS TAXES.--A transfer pursuant to Section | 0022| 7-1-6.1 NMSA 1978 shall be made to each regional transit | 0023| authority for which the department is collecting a regional | 0024| transit gross receipts tax in an amount equal to the net | 0025| receipts attributable to the regional transit gross receipts | - 30 - 0001| tax imposed by that authority pursuant to the Regional Transit | 0002| Authority Act less any deductions for administrative costs | 0003| determined and made by the department pursuant to the | 0004| provisions of that act." | 0005| Section 29. Section 6-14-2 NMSA 1978 (being Laws 1970, | 0006| Chapter 10, Section 2, as amended) is amended to read: | 0007| "6-14-2. DEFINITIONS.--As used in the Public Securities | 0008| Act: | 0009| A. "net effective interest rate" means the | 0010| interest rate based on the actual price paid to a public body | 0011| for its public securities, calculated to maturity according to | 0012| standard tables of bond values; | 0013| B. "public body" means this state or any | 0014| department, board, agency or instrumentality of the state, any | 0015| county, city, town, village, school district, other district, | 0016| educational institution or any other governmental agency or | 0017| political subdivision of the state; and | 0018| C. "public securities" means any bonds, notes, | 0019| warrants or other obligations now or hereafter authorized to | 0020| be issued by any public body pursuant to the provisions of any | 0021| general or special law enacted by the legislature, but does | 0022| not include bonds, notes, warrants or other obligations issued | 0023| pursuant to: | 0024| (1) the Industrial Revenue Bond Act; | 0025| (2) the County Improvement District Act; | - 31 - 0001| (3) Sections 3-33-1 through 3-33-43 NMSA | 0002| 1978; | 0003| (4) the Pollution Control Revenue Bond Act; | 0004| (5) the County Pollution Control Revenue Bond | 0005| Act; | 0006| (6) the County Industrial Revenue Bond Act; | 0007| (7) the Metropolitan Redevelopment Code; | 0008| (8) the Supplemental Municipal Gross Receipts | 0009| Tax Act; | 0010| (9) the Regional Transit Authority Act; | 0011| ~~[(9)]~~ (10) the Hospital Equipment Loan | 0012| Act; or | 0013| ~~[(10)]~~ (11) the New Mexico Finance | 0014| Authority Act." | 0015| Section 30. Section 6-18-4 NMSA 1978 (being Laws 1983, | 0016| Chapter 161, Section 4, as amended) is amended to read: | 0017| "6-18-4. DEFINITIONS.--As used in the Public Securities | 0018| Short-Term Interest Rate Act, unless the context otherwise | 0019| requires: | 0020| A. "bond" means any bond, debenture, note, | 0021| refunding or renewal bond or note, warrant or other security | 0022| evidencing an obligation authorized to be issued by a public | 0023| body pursuant to any provision of law of this state, including | 0024| the Public Securities Short-Term Interest Rate Act; | 0025| B. "governing body" means the city council or | - 32 - 0001| other body or officer of a public body in which the | 0002| legislative powers are vested; | 0003| C. "indebtedness" means any debt evidenced by a | 0004| bond issued by a public body pursuant to any law of this state | 0005| that constitutes a debt for the purposes of Section 12 or 13 | 0006| of Article 9 of the constitution of New Mexico and the | 0007| issuance of which must be submitted to a vote of the qualified | 0008| electors of the public body pursuant to those sections and any | 0009| bond issued for the purpose of paying or refunding any such | 0010| bond; | 0011| D. "bond legislation" means an ordinance or a | 0012| resolution or other appropriate enactment adopted by a | 0013| governing body ~~[of a public body]~~ providing for the | 0014| authorization or sale of bonds and any trust agreement, credit | 0015| agreement, letter of credit, reimbursement agreement or other | 0016| credit facility, dealer agreement, issuing or paying agent | 0017| agreement, purchase commitment agreement, escrow agreement, | 0018| remarketing agreement, index agent agreement or other | 0019| agreement with respect to the bonds to which the public body | 0020| or trustee for the bonds is a party; and | 0021| E. "public body" means any municipality, any | 0022| county, any school district, any special district, any H class | 0023| county ~~[located in New Mexico]~~, the New Mexico hospital | 0024| equipment loan council, state institutions enumerated in | 0025| Section 6-13-2 NMSA 1978, the water quality control | - 33 - 0001| commission, the state board of finance, the New Mexico finance | 0002| authority, a regional transit authority created pursuant to | 0003| the Regional Transit Authority Act or the state." | 0004| Section 31. EFFECTIVE DATE.--The effective date of the | 0005| provisions of this act is July 1, 1998. | 0006| |