SB 474 — SCHOOL DISTRICT IN-LIEU-OF-TAXES PAYMENTS

SENATEAN BILLACT 474RELATING 56THTO LEGISLATURE-STATEOFNEWMEXICO-INDUSTRIAL FIRSTREVENUE SESSION,BONDS; 2023 INTRODUCED BY Benny Shendo, Jr.

ThisAMENDING documentTHE mayINDUSTRIAL incorporateREVENUE amendmentsBOND proposedACT byAND aTHE committee,COUNTY butINDUSTRIAL notREVENUE yetBOND adopted,ACT asREGARDING wellHOW asCERTAIN amendmentsPAYMENT-IN-LIEU-OF-TAXES thatPAYMENTS haveARE beenSHARED adoptedAMONG duringSCHOOL theDISTRICTS; current legislative session.

TheDECLARING documentAN isEMERGENCY. a tool to show amendments in context and cannot be used for the purpose of adding amendments to legislation.

h7 ANBE ACTIT gENACTED oBY tTHE hrLEGISLATURE RELATINGOF TOTHE INDUSTRIALSTATE REVENUEOF BONDS;NEW MEXICO:

AMENDINGSECTION THE1. INDUSTRIAL h te i k REVENUE BOND ACT AND THE COUNTY INDUSTRIAL REVENUE BOND ACT h r i s REGARDING HOW CERTAIN PAYMENT-IN-LIEU-OF-TAXES PAYMENTS ARE h , t, SHARED AMONG SCHOOL DISTRICTS SFC ;

DECLARINGSection AN3-32-6 EMERGENCYNMSA SFC1978 e(being uLaws g1965, eChapter b300, lSection e14-31-3, eas hamended) .is amended to read:

n d d ig = = o h l ] b ,d i a e BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

r i = r t e w d m a n o SECTION 1.

Section 3-32-6 NMSA 1978 (being Laws 1965, d m :

b e d s o t n = .224874.4AIC March 2, 2023 (5:01pm) s k m e e a n e d r e l u [ A d Chapter 300, Section 14-31-3, as amended) is amended to read:

ADDITIONAL POWERS CONFERRED ON MUNICIPALITIES.--MUNICIPALITIES.--In In addition to any other powers that it may now have, a municipality shall have the following powers:

and hSB 474 Page 1 (2) a municipality shall not acquire any g o t hr electricity generation or transmission facility project unless h te i k the school districts within the municipality in which the h r i s project is located receive annual in-lieu tax payments;

h , t, e u g provided that the annual in-lieu tax payments required by this e b l e e h paragraph shall be:

n d d ig = = o h (a) payable to the school districts for l ] b ,d i a e r i = r the period the municipality owns and leases the project;

t(b) ein wan daggregate mamount aequal nto othe (b)amount inreceived anby aggregatethe amountmunicipality equalmultiplied toby the dpercentage mdetermined :by dividing the average of mills imposed by the school districts within the municipality plus state debt service mills as of the date of issuance of the bonds by the average of the mills imposed by all entities levying taxes on property in the municipality as of such date;

b(c) edivided damong s o t n = .224874.4AIC March 2, 2023 (5:01pm) s k m e - 2 - e a n e d r e l u [ A d amount received by the municipality multiplied by the percentage determined by dividing the average of [the operating, capital improvement and bond] mills imposed by the school districts [in]located within the municipalitymunicipality, [and]if plusthere stateis debtmore servicethan millsone asschool ofdistrict thein datesuch ofmunicipality, issuanceand of the bondsin-lieu bypayment theshall averagebe ofallocated the mills imposed by all entities levying taxes on property in the municipality as offollows: such date;

(c) [shared] divided among the school districts located within the municipality, [equally] if there is more than one school district in such municipality, and the in-lieu payment shall be allocated as follows:

and 3) ten percent allocated to the school districts in proportion to h the SB 474 Page 2 average of each school district's student membership u r pursuant to the Public School Code reported on the second and t h g te l i third reporting dates for the most recent school year for which h r i s data is available as of the date of issuance of the bonds;

and h , e h (d) [not be] for each individual school t u g e b l e e , g district located within the municipality, no less than the n d d i = = o h amount due to the school [districts] district in the tax year l ] b ,d i a r immediately preceding the issuance of the bonds from the e r = t e w d m a n o property included in a project, had such project not been dcreated; m :

b r e t o t n = .224874.4AIC March 2, 2023 (5:01pm) s k m e - 3 - e a n e d r e l u [ A d created;

to refinance one or more hospital or 501(c)(3) corporation projects and to acquire any such hospital or 501(c)(3) corporation project whether by construction, purchase, gift or lease, which hospital or 501(c)(3) corporation project shall be located within this state and maySB h474 Page 3 may be located within or without the municipality or partially g o t hr within or partially without the municipality, but which shall h te i k not be located more than fifteen miles outside of the corporate h r i s limits of the municipality, and to issue revenue bonds to h , t, e u g refinance and acquire a hospital or 501(c)(3) corporation e b l e e h project and to secure the payment of such bonds, all as n d d ig = = o h provided in the Industrial Revenue Bond Act.

A municipality l ] b ,d i a e r i = r shall not have the power to operate a hospital or 501(c)(3) t e w d m a n o corporation project as a business or in any manner except as dlessor; m :

b e d s o t n = .224874.4AIC March 2, 2023 (5:01pm) s k m e - 4 - e a n e d r e l u [ A d lessor;

hSB 474 Page 4 "4-59-4.

ADDITIONAL POWERS CONFERRED ON COUNTIES.--In g o t hr addition to any other powers that it may now have, each county h te i k shall have the following powers:

h r i s A.

to acquire, whether by construction, purchase, h , t, e u g gift or lease, one or more projects, which shall be located e b l e e h within this state and shall be located within the county n d d ig = = o h outside the boundaries of any incorporated municipality;

l ] b ,d i a e r i = r provided, however, that:

t e w d m a n o (1) a class A county with a population of more dthan mthree :hundred thousand may acquire projects located anywhere in the county;

b e d s o t n = .224874.4AIC March 2, 2023 (5:01pm) s k m e - 5 - e a n e d r e l u [ A d than three hundred thousand may acquire projects located anywhere in the county;

(b) in an aggregate amount equal to the amount received by the county multiplied by the percentage determined by dividing the average of all of the mills imposed by the school districts in the county, including the operating, capital improvement, building improvement, education technology and bond mills imposed by the school SB 474 Page 5 districts in the county [and] plus state debt service mills as of the date of issuance h of the bonds by the average of the mills imposed by all g o t hr entities levying taxes on property in the county as of such h te i k date;

h r i s (c) [shared] divided among the school h , t, e u g districts located within the county, [equally] and if there is e b l e e h more than one school district in such county, the in-lieu n d d ig = = o h payment shall be allocated as follows:

1) fifty percent l ] b ,d i a e r i = r allocated equally among all school districts in which the t e w d m a n o project is located;

2) forty percent allocated to the school ddistricts mwithin :the county in proportion to the area of each school district within the county;

b e d s o t n = .224874.4AIC March 2, 2023 (5:01pm) s k m e - 6 - e a n e d r e l u [ A d districts within the county in proportion to the area of each school district within the county;

and (d) [not be] for each individual school district located within the county, no less than the amount due to the school [districts] district in the tax year immediately preceding the issuance of the bonds from the property included in a project, had such project not been created;

to sell or lease or otherwise dispose of any or all of its projects upon such terms and conditions as the commission may deem advisable and as shall not conflict with SB 474 Page 6 the provisions of the County Industrial Revenue Bond Act;

and h C.

to issue revenue bonds for the purpose of g o t hr defraying the cost of acquiring, by construction and purchase h te i k or either, any project and to secure the payment of such bonds, h r i s all as provided in the County Industrial Revenue Bond Act.

No h , t, e u g county shall have the power to operate any project as a e b l e e h business or in any manner except as lessor thereof." n d d ig = = o h SFC SECTION 3.