0001| SENATE BILL 317 | 0002| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998 | 0003| INTRODUCED BY | 0004| MANNY M. ARAGON | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO PROPERTY TAX REVENUES; REQUIRING THE APPROVAL OF | 0012| THE GOVERNING BODIES OF OTHER AFFECTED GOVERNMENTAL UNITS | 0013| BEFORE INDUSTRIAL REVENUE BONDS OR COUNTY INDUSTRIAL REVENUE | 0014| BONDS ARE ISSUED. | 0015| | 0016| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0017| Section 1. Section 3-32-1 NMSA 1978 (being Laws 1965, | 0018| Chapter 300, Section 14-31-1, as amended) is amended to read: | 0019| "3-32-1. INDUSTRIAL REVENUE BOND ACT--DEFINITIONS.-- | 0020| Wherever used in the Industrial Revenue Bond Act unless a | 0021| different meaning clearly appears in the context, the | 0022| following terms whether used in the singular or plural shall | 0023| be given the following respective interpretations: | 0024| A. "municipality" means any city, town or village | 0025| in the state of New Mexico; | - 1 - 0001| B. "project" means any land and building or other | 0002| improvements thereon, the acquisition by or for a New Mexico | 0003| corporation of the assets or stock of an existing business or | 0004| corporation located outside the state of New Mexico to be | 0005| relocated within or near the municipality in the state of New | 0006| Mexico and all real and personal properties deemed necessary | 0007| in connection therewith, whether or not now in existence, | 0008| which shall be suitable for use by the following or by any | 0009| combination of two or more thereof: | 0010| (1) any industry for the manufacturing, | 0011| processing or assembling of any agricultural or manufactured | 0012| products; | 0013| (2) any commercial enterprise in storing, | 0014| warehousing, distributing or selling products of agriculture, | 0015| mining or industry but does not include facilities designed | 0016| for the sale of goods or commodities at retail or distribution | 0017| to the public of electricity, gas, water or telephone or other | 0018| services commonly classified as public utilities; | 0019| (3) any business in which all or part of the | 0020| activities of such business involve the supplying of services | 0021| to the general public or to governmental agencies or to a | 0022| specific industry or customer but does not include | 0023| establishments primarily engaged in the sale of goods or | 0024| commodities at retail; and | 0025| (4) any water distribution or irrigation | - 2 - 0001| system, including without limitation, pumps, distribution | 0002| lines, transmission lines, towers, dams and similar facilities | 0003| and equipment, designed to provide water to any vineyard or | 0004| winery; | 0005| C. "governing body" means the board or body in | 0006| which the legislative powers of the municipality or other | 0007| governmental unit are vested; | 0008| D. "property" means any land, improvements | 0009| thereon, buildings and any improvements thereto, machinery and | 0010| equipment of any and all kinds necessary to the project, | 0011| operating capital and any other personal properties deemed | 0012| necessary in connection with the project; | 0013| E. "mortgage" means a mortgage or a mortgage and | 0014| deed of trust or the pledge and hypothecation of any assets as | 0015| collateral security; | 0016| F. "health care services" means the diagnosis or | 0017| treatment of sick or injured persons or medical research and | 0018| includes the ownership, operation, maintenance, leasing and | 0019| disposition of health care facilities such as hospitals, | 0020| clinics, laboratories, x-ray centers and pharmacies and, for | 0021| any small municipality only, includes office facilities for | 0022| physicians; ~~[and]~~ | 0023| G. "refinance a hospital project" means the | 0024| issuance of bonds by a municipality and the use of all or | 0025| substantially all of the proceeds to liquidate any obligations | - 3 - 0001| previously incurred to finance or aid in financing a project | 0002| of any nonprofit corporation engaged in health care services, | 0003| including nursing homes, which would constitute a project | 0004| under the Industrial Revenue Bond Act had it been originally | 0005| undertaken and financed by a municipality pursuant to the | 0006| Industrial Revenue Bond Act; and | 0007| H. "governmental unit" means a political | 0008| subdivision of the state." | 0009| Section 2. A new section of the Industrial Revenue | 0010| Bond Act is enacted to read: | 0011| "[NEW MATERIAL] APPROVAL OF OTHER GOVERNING BODIES | 0012| REQUIRED.-- | 0013| A. No industrial revenue bonds shall be issued | 0014| without the approval of the governing body of each | 0015| governmental unit that has imposed a property tax that would | 0016| be applicable to the project if not acquired by the | 0017| municipality. | 0018| B. A governing body shall approve the issuance of | 0019| the industrial revenue bonds if: | 0020| (1) it determines that the benefits derived | 0021| by the governmental unit from the project will outweigh any | 0022| loss in property tax revenue; or | 0023| (2) the governing body has entered into an | 0024| agreement with the operator of the project under which the | 0025| operator agrees to make a payment or provide a beneficial | - 4 - 0001| service to the governmental unit in lieu of taxes." | 0002| Section 3. Section 4-59-2 NMSA 1978 (being Laws 1975, | 0003| Chapter 286, Section 2, as amended) is amended to read: | 0004| "4-59-2. DEFINITIONS.--As used in the County Industrial | 0005| Revenue Bond Act, unless the context clearly indicates | 0006| otherwise: | 0007| A. "commission" means the governing body of a | 0008| county; | 0009| B. "county" means those counties organized or | 0010| incorporated in New Mexico; | 0011| C. "health care services" means the diagnosis or | 0012| treatment of sick or injured persons or medical research and | 0013| includes the ownership, operation, maintenance, leasing and | 0014| disposition of health care facilities, such as hospitals, | 0015| clinics, laboratories, x-ray centers and pharmacies; | 0016| D. "mortgage" means a mortgage or a mortgage and | 0017| deed of trust or the pledge and hypothecation of any assets as | 0018| collateral security; | 0019| E. "project" means any land and building or other | 0020| improvements thereon, the acquisition by or for a New Mexico | 0021| corporation of the assets or stock of an existing business or | 0022| corporation located outside the state to be relocated within a | 0023| county, but not within the boundaries of any incorporated | 0024| municipality, in the state, and all real and personal | 0025| properties deemed necessary in connection therewith, whether | - 5 - 0001| or not now in existence, which shall be suitable for use by | 0002| the following or by any combination of two or more thereof: | 0003| (1) any industry for the manufacturing, | 0004| processing or assembling of any agricultural or manufactured | 0005| products; | 0006| (2) any commercial enterprise in storing, | 0007| warehousing, distributing or selling products of agriculture, | 0008| mining or industry, but does not include facilities designed | 0009| for the sale or distribution to the public of electricity, | 0010| gas, telephone or other services commonly classified as public | 0011| utilities, except for water utilities; | 0012| (3) any business in which all or part of the | 0013| activities of such business involve the supplying of services | 0014| to the general public or to governmental agencies or to a | 0015| specific industry or customer; | 0016| (4) any nonprofit corporation engaged in | 0017| health care services; | 0018| (5) any mass transit or other transportation | 0019| activity involving the movement of passengers, any industrial | 0020| park, any office headquarters and any research facility; and | 0021| (6) any water distribution or irrigation | 0022| system, including without limitation, pumps, distribution | 0023| lines, transmission lines, towers, dams and similar facilities | 0024| and equipment; ~~[and]~~ | 0025| F. "property" means any land, improvements | - 6 - 0001| thereon, buildings and any improvements thereto, machinery and | 0002| equipment of any and all kinds necessary to the project, | 0003| operating capital and any other personal properties deemed | 0004| necessary in connection with the project; and | 0005| G. "governmental unit" means a political | 0006| subdivision of the state." | 0007| Section 4. A new section of the County Industrial | 0008| Revenue Bond Act is enacted to read: | 0009| "[NEW MATERIAL] APPROVAL OF OTHER GOVERNING BODIES | 0010| REQUIRED.-- | 0011| A. No county industrial revenue bonds shall be | 0012| issued without the approval of the governing body of each | 0013| governmental unit that has imposed a property tax that would | 0014| be applicable to the project if not acquired by the county. | 0015| B. A governing body shall approve the issuance of | 0016| the county industrial revenue bonds if: | 0017| (1) it determines that the benefits derived | 0018| by the governmental unit from the project will outweigh any | 0019| loss in property tax revenue; or | 0020| (2) the governing body has entered into an | 0021| agreement with the operator of the project under which the | 0022| operator agrees to make a payment or provide a beneficial | 0023| service to the governmental unit in lieu of taxes." | 0024| Section 5. REPEAL.--Sections 3-32-6.1 and 4-59-4.1 NMSA | 0025| 1978 (being Laws 1997, Chapter 216, Sections 2 and 4 and Laws | - 7 - 0001| 1997, Chapter 226, Sections 2 and 4) are repealed. | 0002| |