0001| SENATE BILL 250
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0002| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003| INTRODUCED BY
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0004| JOSEPH A. FIDEL
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0005|
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0006|
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0007|
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0008|
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0009|
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0010| AN ACT
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0011| RELATING TO COUNTIES; AMENDING THE COUNTY IMPROVEMENT DISTRICT
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0012| ACT TO PROVIDE FOR GENERAL OBLIGATION BOND FINANCING; AMENDING
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0013| AND ENACTING SECTIONS OF THE NMSA 1978.
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0014|
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0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0016| Section 1. Section 4-55A-1 NMSA 1978 (being Laws 1980,
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0017| Chapter 91, Section 1) is amended to read:
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0018| "4-55A-1. SHORT TITLE. [This act] Chapter 4, Article
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0019| 55A NMSA 1978 may be cited as the "County Improvement
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0020| District Act"."
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0021| Section 2. Section 4-55A-2 NMSA 1978 (being Laws 1980,
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0022| Chapter 91, Section 2, as amended by Laws 1991, Chapter 17,
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0023| Section 3 and also by Laws 1991, Chapter 199, Section 31) is
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0024| amended to read:
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0025| "4-55A-2. IMPROVEMENT DISTRICT--DEFINITIONS.--As used in
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0001| the County Improvement District Act:
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0002| A. "adjustment of assessment" means the adjustment
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0003| in the estimated maximum benefit or assessment resulting from
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0004| the division of the property to be assessed or assessed into
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0005| smaller tracts or parcels or the combining of smaller parcels
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0006| into one or more larger parcels or the changing of the
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0007| configuration or legal description of such parcels.
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0008| "Adjustment of assessment" may also include the real location
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0009| of the assessment lien, without loss of priority, among
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0010| parcels under single ownership that are subject to the
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0011| assessment lien in order to permit the removal of the lien
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0012| from one or more parcels where adequate security for the lien
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0013| is demonstrated by the assessed parcels under such single
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0014| ownership or provided by the owner;
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0015| B. "board" means the board of county
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0016| commissioners;
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0017| C. "construct" or "construction" means to plan,
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0018| design, engineer, construct, reconstruct, install, extend,
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0019| better, alter, build, rebuild, improve, purchase or otherwise
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0020| acquire any project authorized in the County Improvement
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0021| District Act;
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0022| D. "county" means any county except an H class
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0023| county;
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0024| E. "engineer" means any person who is a
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0025| professional engineer licensed to practice in New Mexico and
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0001| who is a permanent employee of the county or employed by the
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0002| county in connection with an improvement;
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0003| F. "improvement" means any one or any combination
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0004| of projects in one or more locations authorized in the County
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0005| Improvement District Act;
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0006| G. "improvement district" means one or more
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0007| streets or one or more public grounds or one or more locations
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0008| wherein the improvement is to be constructed and one or more
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0009| tracts or parcels of land to be assessed or upon which an
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0010| improvement district property tax will be imposed to pay for
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0011| the cost of the improvement; and
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0012| H. "premature subdivision" means a subdivision
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0013| that has been platted and sold into multiple private ownership
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0014| prior to installation or financial guarantee of all required
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0015| improvements for land development. Such subdivisions contain
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0016| one or more of the following developmental inadequacies under
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0017| current local government standards and requirements:
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0018| (l) inadequate street right-of-way or street
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0019| access control;
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0020| (2) a lack of drainage easements of right-of-
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0021| way;
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0022| (3) a lack of adequate park, recreation or
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0023| open space area;
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0024| (4) a lack of an overall grading and drainage
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0025| plan; [and] or
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0001| (5) a lack of adequate subdivision grading
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0002| both on and off the public right-of-way."
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0003| Section 3. Section 4-55A-3 NMSA 1978 (being Laws 1980,
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0004| Chapter 91, Section 3, as amended) is amended to read:
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0005| "4-55A-3. IMPROVEMENT DISTRICT--AUTHORIZATION--
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0006| LIMITATION.--
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0007| A. Whenever the board determines that the creation
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0008| of an improvement district is necessary for the public safety,
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0009| health or welfare, the board may create an improvement
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0010| district for any one or any combination of projects authorized
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0011| in [Chapter 4, Article 55A NMSA 1978] the County
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0012| Improvement District Act by the:
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0013| (1) provisional order method; or
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0014| (2) petition method.
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0015| B. The board may adopt any ordinance or resolution
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0016| necessary or proper to accomplish the purposes of the County
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0017| Improvement District Act.
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0018| C. The improvement district shall include for the
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0019| purpose of assessment or imposition of an improvement
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0020| district property tax all the property [which] that the
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0021| board determines is benefited by the improvement authorized by
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0022| [Sections 4-55A-1 through 4-55A-39 NMSA 1978] the County
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0023| Improvement District Act, including property [utilized]
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0024| used for public, governmental, charitable or religious
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0025| purposes, except that of the United States or any agency,
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0001| instrumentality or corporation thereof in the absence of a
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0002| consent of congress, but shall not include any property within
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0003| the exterior boundaries of a municipality except as provided
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0004| in Section 4-55A-5 NMSA 1978 and for purposes of the
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0005| imposition of an improvement district, property tax shall not
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0006| include real property exempt from property taxation."
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0007| Section 4. Section 4-55A-10 NMSA 1978 (being Laws 1980,
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0008| Chapter 91, Section 10, as amended) is amended to read:
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0009| "4-55A-10. IMPROVEMENT DISTRICT--PETITION METHOD--
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0010| REQUIREMENTS--DISTRIBUTION OF COSTS--NOTICE OF HEARING.--
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0011| A. Whenever the owners of sixty-six and two-thirds
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0012| percent or more of the total assessed valuation of the
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0013| property [to be benefited] described in Subsection C of
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0014| Section 4-55A-3 NMSA 1978, but exclusive of any land owned by
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0015| the United States or the state of New Mexico, petition the
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0016| board in writing to create an improvement district and
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0017| construct the improvement described in the petition, the board
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0018| may:
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0019| (1) create the improvement district;
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0020| (2) select the type of material and method of
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0021| construction to be used; and
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0022| (3) proceed with the construction of the
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0023| improvement as authorized in Section 4-55A-14 NMSA 1978 after
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0024| complying with the requirements for a preliminary hearing
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0025| required in this section. A governing body of a municipality,
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0001| board of county commissioners or local board of education may
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0002| sign a petition seeking the improvement for any land under its
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0003| control. The submission of separate petitions for any one
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0004| improvement district within a six-month period shall be
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0005| considered as a single petition.
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0006| B. The board may:
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0007| (1) pay the cost of the improvement;
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0008| (2) assess the cost of the improvement
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0009| against the benefiting tracts or parcels of land; [or]
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0010| (3) pay part of the cost of the improvement
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0011| and assess part of the cost of the improvement against the
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0012| benefiting tracts or parcels of land; or
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0013| (4) impose an improvement district property
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0014| tax pursuant to the County Improvement District Act.
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0015| C. If any part or all of the cost of the
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0016| improvement sought to be constructed as authorized in this
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0017| section is to be assessed against the benefiting tracts or
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0018| parcels of land or paid for by the imposition of an
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0019| improvement district property tax, the board shall hold a
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0020| preliminary hearing on the proposed improvement district and
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0021| give notice of the preliminary hearing."
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0022| Section 5. Section 4-55A-11 NMSA 1978 (being Laws 1980,
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0023| Chapter 91, Section 11, as amended) is amended to read:
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0024| "4-55A-11. IMPROVEMENT DISTRICT--NOTICE OF PRELIMINARY
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0025| HEARING.--
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0001| A. The notice of the preliminary hearing required
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0002| in Section 4-55A-10 NMSA 1978 shall contain:
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0003| (1) the time and place when the board will
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0004| hold a preliminary hearing on the proposed improvement;
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0005| (2) the estimated cost of the improvement;
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0006| (3) the boundary of the improvement district;
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0007| (4) the route of the improvement by streets
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0008| or roads or location of the improvements;
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0009| (5) the location of the proposed improvement;
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0010| (6) a description of each property to be
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0011| assessed or against which an improvement district property
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0012| tax is to be imposed;
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0013| (7) the estimated amount of the assessment
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0014| against or property tax imposed upon each tract or parcel of
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0015| land; and
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0016| (8) the amount of the cost to be assumed by
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0017| the county, if any.
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0018| B. If the owners are found within the county, the
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0019| notices shall be personally served on them at least thirty
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0020| days prior to the day of the hearing. The notice shall also
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0021| be published in a newspaper published in the county once each
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0022| week for four successive weeks. The last publication shall be
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0023| at least three days before the day of the preliminary
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0024| hearing."
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0025| Section 6. Section 4-55A-12 NMSA 1978 (being Laws 1980,
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0001| Chapter 91, Section 12, as amended) is amended to read:
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0002| "4-55A-12. IMPROVEMENT DISTRICT--PRELIMINARY HEARING--
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0003| PROTEST--ACTION OF THE BOARD--ACTION IN DISTRICT COURT.--
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0004| A. At the preliminary hearing of the board on the
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0005| question of creating an improvement district as authorized in
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0006| Section 4-55A-10 NMSA 1978, any owner of a tract or parcel of
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0007| land to be assessed or upon which it is proposed to impose an
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0008| improvement district property tax may contest:
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0009| (1) the proposed assessment or tax;
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0010| (2) the regularity of the proceedings
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0011| relating to the improvement;
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0012| (3) the benefits of the improvement; or
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0013| (4) any other matter relating to the
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0014| improvement district.
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0015| B. The board shall not assess the tract or parcel
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0016| of land an amount greater than the actual benefit to the tract
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0017| or parcel of land by reason of the enhanced value of the tract
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0018| or parcel of land as a result of the improvement as
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0019| ascertained at the hearing. The board may allow a fair price,
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0020| based on its [present] current value, as a setoff against
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0021| any assessment against a tract or parcel of land if the owner
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0022| has improved the tract or parcel of land in such a manner that
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0023| the improvement may be made part of the proposed improvement.
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0024| C. At the hearing, the board may:
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0025| (1) correct any mistake or irregularity in
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0001| any proceeding relating to the improvement;
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0002| (2) correct an assessment to be made
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0003| against any tract or parcel of land;
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0004| (3) in case of any invalidity, reassess the
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0005| cost of the improvement against a benefiting tract or parcel
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0006| of land; [and] or
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0007| (4) recess the hearing from time to time.
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0008| D. Within thirty days after the hearing, any owner
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0009| of a tract or parcel of land to be assessed, whether he
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0010| appeared at the hearing or not, may commence an action in
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0011| district court seeking an account of any error or invalidity
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0012| of the proceedings relating to the improvement district to set
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0013| aside or correct the assessment or any proceedings relating to
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0014| the improvement district. Thereafter, any owner or his heirs,
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0015| assigns, successors or personal representatives are
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0016| perpetually barred from any action or any defense of error or
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0017| invalidity in the proceedings or assessments. Where no owner
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0018| of a tract or parcel to be assessed has presented a protest
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0019| during the hearing and all owners of the property to be
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0020| assessed, upon conclusion of the hearing, submit written
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0021| statements in favor of the creation of the improvement
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0022| district for the types and character of improvements indicated
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0023| in the petition, such owners shall be deemed to have waived
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0024| their right to bring any action in district court seeking an
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0025| account of any error or invalidity of the proceedings relating
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0001| to the improvement district or to set aside or correct the
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0002| assessment or any proceedings relating to the improvement
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0003| district."
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0004| Section 7. A new section of the County Improvement
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0005| District Act, Section 4-55A-12.1 NMSA 1978, is enacted to
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0006| read:
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0007| "4-55A-12.1. [NEW MATERIAL] IMPOSITION OF IMPROVEMENT
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0008| DISTRICT PROPERTY TAX--LIMITATIONS.--
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0009| A. If in connection with the creation of the
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0010| improvement district the board determines that it is in the
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0011| best interest of the county to finance the district
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0012| improvements by the imposition of an improvement district
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0013| property tax and the issuance of improvement district general
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0014| obligation bonds, the board shall enact an ordinance making
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0015| the determination and provide in the ordinance the tax rate to
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0016| be imposed, the amount of the bonds to be issued to finance
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0017| the improvements and any other matters the board deems
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0018| necessary or appropriate. The board shall call an election
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0019| within the district for the purpose of authorizing the board
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0020| to issue general obligation bonds, the proceeds of the sale of
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0021| which shall be used for constructing the improvements for
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0022| which the district was created and to impose property taxes on
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0023| all taxable property within the district for the purpose of
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0024| paying the principal, debt service and other expenses
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0025| incidental to the issuance and sale of the bonds. The
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0001| ordinance shall include a limitation on the rate of the
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0002| authorized imposition of not to exceed twenty dollars ($20.00)
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0003| per one thousand dollars ($1,000) of net taxable value of real
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0004| property in the district subject to property taxation. The
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0005| ordinance shall also include procedures for the conduct of the
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0006| election based upon the size of the improvement district and
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0007| the number of voters entitled to vote.
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0008| B. If at the election described in Subsection A of
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0009| this section the property tax imposition and the issuance of
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0010| improvement district general obligation bonds are approved by
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0011| a majority of the voters voting on the issues, the board shall
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0012| impose the tax at a rate not to exceed the limitation in
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0013| Subsection A of this section and sufficient to pay the debt
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0014| service on the bonds and retire them at maturity.
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0015| C. Imposition and collection of the improvement
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0016| district property tax authorized in this section shall be made
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0017| at the same time and in the same manner as impositions and
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0018| collections of property taxes for use by counties are made.
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0019| D. Bonds issued by the board for payment of the
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0020| specified improvement district improvements shall be sold at a
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0021| price that does not result in a net effective interest rate
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0022| exceeding the maximum net effective interest rate permitted by
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0023| the Public Securities Act. The bonds may be sold at public or
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0024| private sale and may be in denominations that the board
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0025| determines.
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0001| E. The form and terms of the bonds, including
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0002| provisions for their payment and redemption, shall be as
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0003| determined by the board. The bonds shall be executed in the
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0004| name of and on behalf of the improvement district. The bonds
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0005| may be executed and sealed in accordance with the provisions
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0006| of the Uniform Facsimile Signature of Public Officials Act.
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0007| F. To provide for the payment of the interest and
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0008| principal of the bonds issued and sold pursuant to this
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0009| section, the board shall annually impose a property tax on all
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0010| taxable property in the district in an amount sufficient to
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0011| produce a sum equal to the principal and interest on all bonds
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0012| as they mature subject to the limitation of Subsection A of
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0013| this section.
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0014| G. The bonds authorized in this section are
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0015| general obligation bonds of the district and the full faith
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0016| and credit of the district are pledged to the payment of the
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0017| bonds. The proceeds obtained from the issuance of the bonds
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0018| shall not be diverted or expended for any purposes other than
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0019| those provided in the County Improvement District Act.
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0020| H. All bonds issued by an improvement district
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0021| shall be fully negotiable and constitute negotiable
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0022| instruments within the meaning of and for all the purposes of
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0023| the Uniform Commercial Code. If lost or completely destroyed,
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0024| any bond may be reissued in the form and tenor of the lost or
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0025| destroyed bond upon the owner furnishing to the satisfaction
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0001| of the board:
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0002| (1) proof of ownership;
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0003| (2) proof of loss or destruction;
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0004| (3) a surety bond in twice the face amount of
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0005| the bond and coupons; and
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0006| (4) payment of the cost of preparing and
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0007| issuing the new bond and coupons.
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0008| I. The board may in any proceedings authorizing
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0009| improvement district bonds provide for the initial issuance of
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0010| one or more bonds aggregating the amount of the entire issue
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0011| or may make provision for installment payments of the
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0012| principal amount of any bond as it may consider desirable.
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0013| J. The board may issue bonds to be denominated
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0014| refunding bonds, for the purpose of refunding any of the
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0015| general obligation bonded indebtedness of the district.
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0016| Whenever the board deems it expedient to issue refunding
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0017| bonds, it shall adopt a resolution setting out the facts
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0018| making the issuance of the refunding bonds necessary or
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0019| advisable, the determination of the necessity or advisability
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0020| by the board and the amount of refunding bonds that the board
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0021| deems necessary and advisable to issue. The resolution shall
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0022| fix the form of the bonds; the rate or rates of interest of
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0023| the bonds, but the net effective interest rate of the bonds
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0024| shall not exceed the maximum net effective interest rate
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0025| permitted by the Public Securities Act; the date of the
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0001| refunding bonds; the denominations of the refunding bonds; the
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0002| maturity dates; and the place or places of payment within or
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0003| without the state of both principal and interest. Refunding
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0004| bonds when issued, except for bonds issued in book entry or
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0005| similar form without the delivery of physical securities,
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0006| shall be negotiable in form, shall bear the signature or the
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0007| facsimile signature of the chairman of the board and shall be
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0008| attested to by the secretary of the board. All refunding
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0009| bonds may be exchanged dollar for dollar for the bonds to be
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0010| refunded or they may be sold as directed by the board, and the
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0011| proceeds of the sale shall be applied only to the purpose for
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0012| which the bonds were issued and the payment of any incidental
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0013| expenses."
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0014| Section 8. Section 4-55A-20 NMSA 1978. (being Laws 1980,
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0015| Chapter 91, Section 20, as amended) is amended to read:
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0016| "4-55A-20. IMPROVEMENT DISTRICT--AUTHORITY TO ISSUE
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0017| BONDS OR ASSIGNABLE CERTIFICATES.--
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0018| A. To pay all or any part of the cost of the
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0019| improvement, including those items set out in Subsection C of
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0020| Section 4-55A-7 NMSA 1978, the board may proceed pursuant to
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0021| the provisions of Section 4-55A-12.1 NMSA 1978 or may issue
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0022| in the name of the county bonds in such form as the board may
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0023| determine or assignable certificates in an amount not
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0024| exceeding the total cost of the improvement and maturing not
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0025| more than twenty years from the date of issuance. If the
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0001| bonds or assignable certificates recite that:
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0002| (1) the proceedings relating to making the
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0003| improvement and levying the assessments as provided in Section
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0004| 4-55A-18 NMSA 1978 or placing the preliminary lien as provided
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0005| in Section 4-55A-7 NMSA 1978 to pay for the improvement have
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0006| been done in compliance with law; and
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0007| (2) all prerequisites to the fixing of the
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0008| assessment lien or placing the preliminary lien against the
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0009| tract or parcel of land benefited by the improvement have been
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0010| performed, such recital shall be conclusive evidence of the
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0011| facts recited.
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0012| B. The assignable certificates shall:
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0013| (1) declare the liability of the owner of the
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0014| tract or parcel of land so assessed or the liability of the
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0015| tract or parcel of land so assessed for payment of the
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0016| assessment, interest and penalties;
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0017| (2) fix the terms and conditions of the
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0018| certificates; and
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0019| (3) accurately describe the tract or parcel
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0020| of land covered by the certificate.
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0021| C. The bonds shall:
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0022| (1) recite the terms and conditions for their
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0023| issuance;
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0024| (2) be payable from money collected from the
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0025| preliminary assessment lien authorized in Section 4-55A-7 NMSA
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0001| 1978 and, if so payable, also payable from the proceeds of
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0002| bonds payable from the final assessment lien authorized in
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0003| Section 4-55A-18 NMSA 1978; or
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0004| (3) be payable from the money collected from
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0005| the assessments authorized in Section 4-55A-18 NMSA 1978;
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0006| provided that if assessments are made payable over more than
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0007| one period of time as permitted by Section 4-55A-19 NMSA 1978,
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0008| specified portions of the bonds may be payable from money
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0009| collected from those assessments payable over that period of
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0010| time that generally corresponds to the period of time over
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0011| which such specified portions of the bonds are payable; and
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0012| (4) bear a rate or rates of interest that
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0013| shall not exceed the rate of interest on the deferred
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0014| installments of the assessments or, if more than one rate of
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0015| interest is specified for assessments as permitted by Section
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0016| 4-55A-19 NMSA 1978, on that portion of the deferred
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0017| installments of assessments from which that specified portion
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0018| of the bonds may be payable. Payment of the bonds issued for
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0019| the construction of a project described in Subsection A of
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0020| Section 4-55A-4 NMSA 1978 may be supplemented from gasoline
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0021| tax and special fuel [use] excise tax distributed to the
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0022| county [under Section 7-13-9 NMSA 1978] pursuant to Section
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0023| 7-1-6.39 NMSA 1978 on or before a date not more than twelve
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0024| months after the last deferred installment of an assessment is
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0025| due from the owner of a tract or parcel of land so assessed.
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0001| D. The bonds may be issued to the contractor in
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0002| payment for the construction of the improvement or may be
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0003| issued and sold:
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0004| (1) in payment of the county's proportion of
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0005| the cost of the improvement;
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0006| (2) in payment of the proportionate cost, if
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0007| the improvement is done in cooperation with another
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0008| governmental agency;
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0009| (3) in payment of the construction of the
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0010| improvement done under contract; or
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0011| (4) in reimbursement to the county, if the
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0012| county constructed the improvement with county-owned or
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0013| -leased equipment and county employees.
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0014| E. Bonds or assignable certificates may be sold at
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0015| a public or private sale at a discount."
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0016| Section 9. EFFECTIVE DATE.--The effective date of the
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0017| provisions of this act is July 1, 1998.
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0018|
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