SB 383 — FLOOD RECOVERY BONDS & GROSS RECEIPTS

SENATEAN TAX,ACT BUSINESSRELATING ANDTO TRANSPORTATIONMUNICIPALITIES; COMMITTEE SUBSTITUTE FOR SENATE BILL 383 57TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 2025 This document may incorporate amendments proposed by a committee, but not yet adopted, as well as amendments that have been adopted during the current legislative session.

ThePROVIDING documentFOR isTHE aISSUANCE toolOF toFLOOD showRECOVERY amendmentsREVENUE inBONDS contextFOR andREBUILDING, cannotREPAIRING, beREPLACING usedAND forHARDENING theOF purposeMUNICIPAL ofPROPERTY addingDAMAGED amendmentsBY toA legislation.FLOOD;

hCREATING gA oMUNICIPAL ANFLOOD ACTRECOVERY tGROSS hrRECEIPTS gTAX eFOR iTHE kPAYMENT RELATINGOF TOFLOOD MUNICIPALITIES;RECOVERY REVENUE BONDS;

PROVIDING FOR THE ISSUANCE OF FLOOD h r i s RECOVERY REVENUE BONDS FOR REBUILDING, REPAIRING, REPLACING AND h , t, HARDENING OF MUNICIPAL PROPERTY DAMAGED BY A FLOOD;

CREATING A e u g e b l e e h MUNICIPAL FLOOD RECOVERY GROSS RECEIPTS TAX FOR THE PAYMENT OF n d d i = = o h FLOOD RECOVERY REVENUE BONDS;

l9 ] b ,d i a º e r i = r t e w d m a n o BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

dSECTION m1. :

b e d s º o t n = .231749.1AIC March 13, 2025 (2:29pm) s k m e e a n e d r e l u [ A d STBTC/SB 383 SECTION 1.

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 andSTBTC/SB h383 Page 1 and principal of the revenue bonds.

g o C.

Joint utility revenue bonds may be issued for t hr g e i k acquiring, extending, enlarging, bettering, repairing or h r i s otherwise improving joint water facilities, sewer facilities, h , t, gas facilities or electric facilities or for any combination of e u g e b l e e h the foregoing purposes.

The municipality may pledge n d d i = = o h irrevocably any or all of the net revenues from the operation l ] b ,d i a º e of these municipal utilities for the payment of the interest on r i = r t e w d m a n o and principal of the bonds.

dD. m :

b e d s º o t n = .231749.1AIC March 13, 2025 (2:29pm) s k m e - 2 - e a n e d r e l u [ A d STBTC/SB 383 D.

Revenues in excess STBTC/SB 383 Page 2 of the annual principal and h interest due on gross receipts tax revenue bonds secured by a g o pledge of gross receipts tax revenue may be accumulated in a t hr g e debt service reserve account.

The governing body of the i k h r i s municipality may appoint a commercial bank trust department to h , t, act as trustee of the gross receipts tax revenue and to e u g e b l administer the payment of principal of and interest on the e e h n d d i bonds.

= = o h l ] b ,d i a º e E.

Gasoline tax revenue bonds may be issued for rlaying ioff, =opening, rconstructing, treconstructing, eresurfacing, wmaintaining, dacquiring layingrights off,of opening,way, constructing,repairing reconstructing,and resurfacing,otherwise mimproving amunicipal nbuildings, oalleys, dstreets, mpublic :roads and bridges or any combination of the foregoing purposes.

b e d s º o t n = .231749.1AIC March 13, 2025 (2:29pm) s k m e - 3 - e a n e d r e l u [ A d STBTC/SB 383 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 net revenues from the operation of the STBTC/SB 383 Page 3 revenue-producing project for which the particular project revenue bonds are issued to h the payment of the interest on and principal of the project u » r revenue bonds.

The net revenues of any revenue-producing t h g e project may not be pledged to the project revenue bonds issued l i h r i s for a revenue-producing project that clearly is unrelated in h , e h nature;

but nothing in this subsection shall prevent the pledge t u g e b l to such project revenue bonds of any revenues received from e e , gh n d d i = = o h existing, future or disconnected facilities and equipment that l ] b ,d i a º r are related to and that may constitute a part of the particular e r = t e w d revenue-producing project.

A general determination by the mgoverning body that any facilities or equipment is reasonably related to and constitutes a npart oof da mspecified :revenue-producing project shall be conclusive if set forth in the proceedings authorizing the project revenue bonds.

b r e t º o t n = .231749.1AIC March 13, 2025 (2:29pm) s k m e - 4 - e a n e d r e l u [ A d STBTC/SB 383 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.

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 Page 4 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 h u » r to the bonds issued for a fire district project that clearly is t h g e unrelated in its purpose;

but nothing in this section prevents l i h r the pledge to such bonds of any revenues received from i s h , e h existing, future or disconnected facilities and equipment that t u g e b l are related to and that may constitute a part of the particular e e , gh n d d i fire district project.

A general determination by the = = o h l ] b ,d i a º r governing body of the municipality that any facilities or e r = t e w d equipment is reasonably related to and constitutes a part of a mspecified afire ndistrict oproject dshall mbe :conclusive if set forth in the proceedings authorizing the fire district bonds.

b r e t º o t n = .231749.1AIC March 13, 2025 (2:29pm) s k m e - 5 - e a n e d r e l u [ A d STBTC/SB 383 specified fire district project shall be conclusive if set forth in the proceedings authorizing the fire district bonds.

Flood recovery revenue bonds may be issued for rebuilding, repairing, replacing and hardening of municipal STBTC/SB 383 Page 5 property damaged by a flood.

h [I.] J.

Except for the purpose of refunding u » r previous revenue bond issues, no municipality may sell revenue t h g e bonds payable from pledged revenues after the expiration of two l i h r i s years from the date of the ordinance authorizing the issuance h , e h of the bonds or, for bonds to be issued and sold to the New t u g e b l Mexico finance authority as authorized in Subsection C of e e , gh n d d i = = o h Section 3-31-4 NMSA 1978, after the expiration of two years l ] b ,d i a º r from the date of the resolution authorizing the issuance of the e r = t e w d bonds.

However, any period of time during which a particular mrevenue abond nissue ois din mlitigation :shall not be counted in determining the expiration date of that issue." SECTION 2.

b r e t º o t n = .231749.1AIC March 13, 2025 (2:29pm) s k m e - 6 - e a n e d r e l u [ A d STBTC/SB 383 revenue bond issue is in litigation shall not be counted in determining the expiration date of that issue." SECTION 2.

"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-lease-purchase purchase agreement or other instrument evidencing an obligation of a municipality to make payments;

STBTC/SB 383 Page 6 B.

[B.] 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 h 1978;

gD. o [C.

]"gasoline D.tax revenue bonds" means the bonds authorized by Subsection E of Section 3-31-1 NMSA 1978;