STBTC/SB 383
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AN ACT
RELATING TO MUNICIPALITIES; PROVIDING FOR THE ISSUANCE OF
FLOOD RECOVERY REVENUE BONDS FOR REBUILDING, REPAIRING,
REPLACING AND HARDENING OF MUNICIPAL PROPERTY DAMAGED BY A
FLOOD; CREATING A MUNICIPAL FLOOD RECOVERY GROSS RECEIPTS TAX
FOR THE PAYMENT OF FLOOD RECOVERY REVENUE BONDS; DECLARING AN
EMERGENCY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 3-31-1 NMSA 1978 (being Laws 1973,
Chapter 395, Section 3, as amended) is amended to read:
"3-31-1. REVENUE BONDS--AUTHORITY TO ISSUE--PLEDGE OF
REVENUES--LIMITATION ON TIME OF ISSUANCE.--
A. In addition to any other law and constitutional
home rule powers authorizing a municipality to issue revenue
bonds, a municipality may issue revenue bonds pursuant to
Chapter 3, Article 31 NMSA 1978 for the purposes specified
in this section.
B. Utility revenue bonds may be issued for
acquiring, extending, enlarging, bettering, repairing or
otherwise improving a municipal utility or for any
combination of the foregoing purposes. The municipality may
pledge irrevocably any or all of the net revenues from the
operation of the municipal utility or of any one or more of
other such municipal utilities for payment of the interest on STBTC/SB 383
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and principal of the revenue bonds.
C. Joint utility revenue bonds may be issued
for acquiring, extending, enlarging, bettering, repairing or
otherwise improving joint water facilities, sewer facilities,
gas facilities or electric facilities or for any combination
of the foregoing purposes. The municipality may pledge
irrevocably any or all of the net revenues from the operation
of these municipal utilities for the payment of the interest
on and principal of the bonds.
D. Gross receipts tax revenue bonds may be
issued for any municipal purpose. A municipality may pledge
irrevocably any or all of the gross receipts tax revenue
received by the municipality pursuant to Section 7-1-6.4
or 7-1-6.12 NMSA 1978 to the payment of the interest on and
principal of the gross receipts tax revenue bonds or for any
area of municipal government services. A law that imposes
or authorizes the imposition of a tax authorized by the
Municipal Local Option Gross Receipts and Compensating Taxes
Act or that affects the tax, or a law supplemental thereto
or otherwise appertaining thereto, shall not be repealed or
amended or otherwise directly or indirectly modified in such
a manner as to impair adversely any outstanding revenue
bonds that may be secured by a pledge of such tax unless the
outstanding revenue bonds have been discharged in full or
provision has been fully made therefor. Revenues in excess STBTC/SB 383
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of the annual principal and interest due on gross receipts
tax revenue bonds secured by a pledge of gross receipts tax
revenue may be accumulated in a debt service reserve account.
The governing body of the municipality may appoint a
commercial bank trust department to act as trustee of the
gross receipts tax revenue and to administer the payment of
principal of and interest on the bonds.
E. Gasoline tax revenue bonds may be issued for
laying off, opening, constructing, reconstructing,
resurfacing, maintaining, acquiring rights of way, repairing
and otherwise improving municipal buildings, alleys, streets,
public roads and bridges or any combination of the foregoing
purposes. The municipality may pledge irrevocably any or all
of the gasoline tax revenue received by the municipality to
the payment of the interest on and principal of the gasoline
tax revenue bonds.
F. Project revenue bonds may be issued for
acquiring, extending, enlarging, bettering, repairing,
improving, constructing, purchasing, furnishing, equipping
and rehabilitating any revenue-producing project, including,
where applicable, purchasing, otherwise acquiring or
improving the ground therefor, including acquiring and
improving parking lots, or for any combination of the
foregoing purposes. The municipality may pledge irrevocably
any or all of the net revenues from the operation of the STBTC/SB 383
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revenue-producing project for which the particular project
revenue bonds are issued to the payment of the interest on
and principal of the project revenue bonds. The net revenues
of any revenue-producing project may not be pledged to the
project revenue bonds issued for a revenue-producing project
that clearly is unrelated in nature; but nothing in this
subsection shall prevent the pledge to such project revenue
bonds of any revenues received from existing, future or
disconnected facilities and equipment that are related
to and that may constitute a part of the particular
revenue-producing project. A general determination
by the governing body that any facilities or equipment is
reasonably related to and constitutes a part of a specified
revenue-producing project shall be conclusive if set forth
in the proceedings authorizing the project revenue bonds.
G. Fire district revenue bonds may be issued for
acquiring, extending, enlarging, bettering, repairing,
improving, constructing, purchasing, furnishing, equipping
and rehabilitating any fire district project, including,
where applicable, purchasing, otherwise acquiring or
improving the ground therefor, or for any combination of the
foregoing purposes. The municipality may pledge irrevocably
any or all of the revenues received by the fire district from
the fire protection fund as provided in the Fire Protection
Fund Law and any or all of the revenues provided for the STBTC/SB 383
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operation of the fire district project for which the
particular bonds are issued to the payment of the interest
on and principal of the bonds. The revenues of any fire
district project shall not be pledged to the bonds issued
for a fire district project that clearly is unrelated in its
purpose; but nothing in this section prevents the pledge to
such bonds of any revenues received from existing, future or
disconnected facilities and equipment that are related to and
that may constitute a part of the particular fire district
project. A general determination by the governing body
of the municipality that any facilities or equipment is
reasonably related to and constitutes a part of a specified
fire district project shall be conclusive if set forth in the
proceedings authorizing the fire district bonds.
H. Law enforcement protection revenue bonds may
be issued for the repair and purchase of law enforcement
apparatus and equipment that meet nationally recognized
standards. The municipality may pledge irrevocably any or
all of the revenues received by the municipality from the law
enforcement protection fund distributions pursuant to the
Law Enforcement Protection Fund Act to the payment of the
interest on and principal of the law enforcement protection
revenue bonds.
I. Flood recovery revenue bonds may be issued for
rebuilding, repairing, replacing and hardening of municipal STBTC/SB 383
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property damaged by a flood. The municipality shall pledge
irrevocably all of the revenue received by the municipality
from the municipal flood recovery gross receipts tax to the
payment of the interest on and principal of the bonds.
J. Except for the purpose of refunding previous
revenue bond issues, no municipality may sell revenue bonds
payable from pledged revenues after the expiration of two
years from the date of the ordinance authorizing the issuance
of the bonds or, for bonds to be issued and sold to the
New Mexico finance authority as authorized in Subsection C
of Section 3-31-4 NMSA 1978, after the expiration of two
years from the date of the resolution authorizing the
issuance of the bonds. However, any period of time during
which a particular revenue bond issue is in litigation shall
not be counted in determining the expiration date of that
issue."
SECTION 2. Section 3-31-1.1 NMSA 1978 (being Laws 2019,
Chapter 274, Section 2) is amended to read:
"3-31-1.1. DEFINITIONS.--As used in Chapter 3,
Article 31 NMSA 1978:
A. "bond" means any obligation of a municipality
issued under Chapter 3, Article 31 NMSA 1978, whether
designated as a bond, note, loan, warrant, debenture,
lease-purchase agreement or other instrument evidencing an
obligation of a municipality to make payments; STBTC/SB 383
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B. "flood recovery revenue bonds" means the bonds
authorized by Subsection I of Section 3-31-1 NMSA 1978;
C. "gasoline tax revenue" means all or portions
of the amounts of tax revenues distributed to municipalities
pursuant to Sections 7-1-6.9 and 7-1-6.27 NMSA 1978;
D. "gasoline tax revenue bonds" means the bonds
authorized by Subsection E of Section 3-31-1 NMSA 1978;
E. "gross receipts tax revenue" means the
amount of money distributed to a municipality pursuant to
Section 7-1-6.4 NMSA 1978 and transferred to a municipality
pursuant to Section 7-1-6.12 NMSA 1978 for any municipal
gross receipts tax imposed pursuant to the Municipal Local
Option Gross Receipts and Compensating Taxes Act;
F. "gross receipts tax revenue bonds" means the
bonds authorized by Subsection D of Section 3-31-1 NMSA 1978;
G. "joint utility revenue bonds" or "joint
utility bonds" means the bonds authorized by Subsection C of
Section 3-31-1 NMSA 1978;
H. "pledged revenues" means the revenues, net
income or net revenues authorized to be pledged to the
payment of revenue bonds as specifically provided in
Chapter 3, Article 31 NMSA 1978;
I. "project revenue bonds" means the bonds
authorized by Subsection F of Section 3-31-1 NMSA 1978; and
J. "utility revenue bonds" or "utility bonds" STBTC/SB 383
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means the bonds authorized by Subsection B of Section 3-31-1
NMSA 1978."
SECTION 3. A new section of the Municipal Local Option
Gross Receipts and Compensating Taxes Act is enacted to read:
"MUNICIPAL FLOOD RECOVERY GROSS RECEIPTS TAX.--
A. The majority of the members of the governing
body of a municipality may impose by ordinance an excise tax
at a rate not to exceed three-eighths percent of the gross
receipts of a person engaging in business in the municipality
for the privilege of engaging in business. The tax may be
imposed in increments of one-thousandth percent not to exceed
an aggregate rate of three-eighths percent. The tax shall
be imposed until the flood recovery revenue bonds issued
pursuant to Section 3-31-1 NMSA 1978 are fully discharged or
otherwise provided for in full.
B. The tax imposed pursuant to this section may be
referred to as the "municipal flood recovery gross receipts
tax".
C. A governing body, at the time of enacting an
ordinance imposing a rate of tax authorized in Subsection A
of this section, shall dedicate the revenue only for
payment of flood recovery revenue bonds issued pursuant to
Section 3-31-1 NMSA 1978."
SECTION 4. EMERGENCY.--It is necessary for the
public peace, health and safety that this act take effect STBTC/SB 383
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immediately.