SB 481 — STATE FAIRGROUNDS DISTRICT ACT

r i = r t e w d (8) pay a person for providing the district mwith aservices nor ofacilities; d m :

b e d s º o t n = .231343.10AIC March 17, 2025 (10:15am) s k m e - 6 - e a n e d r e l u [ A d STBTC/SB 481 with services or facilities;

STBTC/SB 481 Page 6 (13) borrow money and issue bonds for the purposes of the State Fairgrounds District Act;

(14) use public easements and rights of way in or across public property, roadways, highways, streets or other h thoroughfares and other public easements and rights of way of g o the district or a public entity;

t hr g e (15) alter the boundaries of the district to i k h r add land contiguous to the state fairgrounds that may be i s h , t, subsequently acquired by the district or another public body;

e u g e b l and e e h n d d i (16) exercise the rights and powers necessary = = o h l ] b ,d i a º e or incidental to or implied by the specific powers granted by r i = r t e w d this section." mSECTION a4. n o d m :

b e d s º o t n = .231343.10AIC March 17, 2025 (10:15am) s k m e - 7 - e a n e d r e l u [ A d STBTC/SB 481 SECTION 4.

"[NEW"STATE MATERIAL] STATE FAIRGROUNDS DISTRICT BOARD.-- A.

(2) SFCº a designee of»SFC the state senator representing the senate district inclusive of the district SFCºoror the senator's designee»SFCdesignee; ;

(3) SFCº a designee of»SFC the member of the house of representatives representing the house district inclusive of the district SFCºoror the member's designee»SFCdesignee; ;

STBTC/SB 481 Page 7 (4) the commissioner representing the commission district of the Bernalillo county board of county commissioners inclusive of the district;

(5) the city councilor representing the h council district inclusive of the district;

g o (6) the mayor of the city of Albuquerque;

and t hr g e i k (7) a designee of the governor, who shall be a h r i s community member.

h , t, B.

The director of the local government division of e u g e b l e e h the department of finance and administration or the director's n d d i = = o h designee shall serve as clerk and treasurer of the district.

l ] b ,d i a º e All meetings of the board shall be open meetings held in r i = r t e w d accordance with the Open Meetings Act, and the board shall keep mthe afollowing nrecords, owhich dshall mbe :open to the public:

b e d s º o t n = .231343.10AIC March 17, 2025 (10:15am) s k m e - 8 - e a n e d r e l u [ A d STBTC/SB 481 the following records, which shall be open to the public:

At the end of the initial and each subsequent six-year term, the board may hold an election of new STBTC/SB 481 Page 8 directors by majority vote of qualified electors in accordance with the Local Election Act.

The board shall separately account for all h revenues and indebtedness based on property tax, gross receipts g o tax and gaming tax distributed to the special fund of the state t hr g e fairgrounds district.

The board shall individually account for i k h r all property tax, gross receipts tax and gaming tax distributed i s h , t, to the special fund of the state fairgrounds district." e u g e b l SECTION 5.

A new section of Chapter 6 NMSA 1978 is e e h n d d i enacted to read:

="AUTHORITY = o h l ] b ,d i a º e "[NEW MATERIAL] AUTHORITY TO IMPOSE PROPERTY TAX r i = r t e w d LEVY.--The district may establish a property tax levy upon real mproperty alocated nwithin othe dboundaries mof :the district, with the following limitations:

b e d s º o t n = .231343.10AIC March 17, 2025 (10:15am) s k m e - 9 - e a n e d r e l u [ A d STBTC/SB 481 property located within the boundaries of the district, with the following limitations:

STBTC/SB 481 Page 9 B.

h"PROPERTY "[NEW MATERIAL ] PROPERTY TAX LEVY RESCISSION ELECTION.-- g o A.

A property tax levy imposed by the district may t hr g e i k be rescinded within the four-year period during which a h r i s property tax levy imposed by the district is effective if:

h , t, (1) thirty-three and one-third percent of the e u g e b l e e h number of persons who voted in the election for the imposition n d d i = = o h of that property tax levy sign a petition to rescind the l ] b ,d i a º e property tax levy;

and r i = r t e w d (2) each person who signs the petition is a mqualified aelector nof othe ddistrict. m :

b e d s º o t n = .231343.10AIC March 17, 2025 (10:15am) s k m e - 10 - e a n e d r e l u [ A d STBTC/SB 481 qualified elector of the district.

If the board verifies that the petition contains the requisite number of signatures by persons qualified to sign the petition pursuant to Subsection A of this section, the question of rescission of the property tax levy imposed by the district shall be placed STBTC/SB 481 Page 10 on the ballot for:

or (2) the next occurring regular local election or general election if that election is to be held within less h than one hundred twenty days.

g o C.

A petition for rescission of a property tax levy t hr g e imposed by the district may be submitted only once each year i k h r during the four-year period during which a property tax levy by i s h , t, the district is effective." e u g e b l SECTION 7.

A new section of Chapter 6 NMSA 1978 is e e h n d d i enacted to read:

="AUTHORIZATION = o h l ] b ,d i a º e "[NEW MATERIAL ] AUTHORIZATION OF ISSUANCE OF BONDS.-- r i = r t e w d A.

Subject to the provisions of Section 9 of the mState aFairgrounds nDistrict oAct, dthe mdistrict :may issue revenue bonds not to exceed five hundred million dollars ($500,000,000) in net proceeds for the purposes of the State Fairgrounds District Act.

b e d s º o t n = .231343.10AIC March 17, 2025 (10:15am) s k m e - 11 - e a n e d r e l u [ A d STBTC/SB 481 State Fairgrounds District Act, the district may issue revenue bonds not to exceed five hundred million dollars ($500,000,000) in net proceeds for the purposes of the State Fairgrounds District Act.

STBTC/SB 481 Page 11 B.

h (2) the state board of finance makes a g o determination that the proceeds of the bonds will be used for t hr g e i k projects in furtherance of the district development plan and in h r i s accordance with the State Fairgrounds District Act;

h , t, (3) the state board of finance makes a e u g e b l determination that the projects will generate sufficient e e h n d d i = = o h revenue to repay the bonds;

l ] b ,d i a º e (4) the New Mexico finance authority approves r i = r t e w d of the master indenture and any amendments to the master mindenture; a n o d m :

b e d s º o t n = .231343.10AIC March 17, 2025 (10:15am) s k m e - 12 - e a n e d r e l u [ A d STBTC/SB 481 indenture;

and STBTC/SB 481 Page 12 (2) payable only from properly pledged revenues, and each bond or loan shall state that it is payable solely from the properly pledged revenues and that the bondholders or lenders may not look to any other fund for the payment of the principal and interest of the bond or the loan.

(1) may have principal value, interest or any h part thereof payable at intervals or at maturity as may be g o determined by the board;

t hr g e (2) may be subject to a prior redemption at i k h r the district's option at a time and upon terms and conditions, i s h , t, with or without the payment of a premium, as determined by the e u g e b l board;

e e h n d d i (3) may mature at any time not more than = = o h l ] b ,d i a º e twenty-five years after the date that the first bonds are r i = r t e w d issued for the district;

m(4) amay nbe oserial din mform :and maturity, may consist of one bond payable at one time or in installments or may be in another form determined by the board;

b(5) eshall dbe ssold ºfor ocash tat, nabove =or .231343.10AICbelow Marchpar 17,and 2025at (10:15am)a sprice kthat mresults ein - 13 - e a nnet eeffective dinterest rrate ethat ldoes unot [exceed Athe dmaximum STBTC/SBpermitted 481by (4)the mayPublic beSecurities serialAct in form and maturity,the mayPublic consistSecurities ofSTBTC/SB one481 bondPage payable13 atShort-Term oneInterest timeRate orAct; in installments or may be in another form determined by the board;

(5) shall be sold for cash at, above or below par and at a price that results in a net effective interest rate that does not exceed the maximum permitted by the Public Securities Act and the Public Securities Short-Term Interest Rate Act;

"[NEW"REFUNDING MATERIAL ] REFUNDING BONDS.-- A.

After issuing bonds in accordance with the State Fairgrounds District Act, the board may, subject to the provisions of Section 9 of the State Fairgrounds District Act, issue refunding bonds for the purpose of refinancing, paying h and discharging all or any part of outstanding bonds for the:

g o (1) acceleration, deceleration or other t hr g e i k modification of the payment of the outstanding bonds, h r i s including, without limitation, any capitalization of any h , t, interest on the outstanding bonds in arrears or about to become e u g e b l e e h due for any period not exceeding two years from the date of the n d d i = = o h refunding bonds;

l ] b ,d i a º e (2) purpose of reducing interest costs or r i = r t e w d effecting other economies;

or m(3) apurpose nof omodifying dor meliminating :restrictive contractual limitations:

b e d s º o t n = .231343.10AIC March 17, 2025 (10:15am) s k m e - 14 - e a n e d r e l u [ A d STBTC/SB 481 (3) purpose of modifying or eliminating restrictive contractual limitations:

or (b) concerning the outstanding bonds STBTC/SB 481 Page 14 or facilities relating to the outstanding bonds.

Bonds that are refunded shall be paid at maturity or on any permitted prior redemption date in the h amounts, at the time and places and, if called prior to g o maturity, in accordance with any applicable notice provisions, t hr g e all as provided in the proceedings authorizing the issuance of i k h r the refunded bonds or otherwise appertaining to them, except i s h , t, for any such bond that is voluntarily surrendered for exchange e u g e b l or payment by the holder or owner.

e e h n d d i E.

The principal amount of the refunding bonds may = = o h l ] b ,d i a º e exceed the principal amount of the refunded bonds and may also r i = r t e w d be less than or the same as the principal amount of the bonds mbeing arefunded nif oprovision dis mduly :and sufficiently made for the payment of the refunded bonds.

b e d s º o t n = .231343.10AIC March 17, 2025 (10:15am) s k m e - 15 - e a n e d r e l u [ A d STBTC/SB 481 being refunded if provision is duly and sufficiently made for the payment of the refunded bonds.

The proceeds of refunding bonds, including accrued interest and premiums appertaining to the sale of STBTC/SB 481 Page 15 refunding bonds, shall be immediately applied to the retirement of the bonds being refunded or placed in escrow in a commercial bank or trust company that possesses and exercises trust powers and that is a member of the federal deposit insurance corporation.

provided that the refunding bond proceeds, including premiums and accrued interest appertaining to a sale of refunding bonds, may be applied to the establishment and maintenance of a reserve fund and to the payment of expenses incidental to the refunding and the issuance of the refunding bonds, the principal of those h bonds and the interest of those bonds or both principal and u » r interest as the board determines.

This section does not t h g e require the establishment of an escrow if the refunded bonds l i h r i s and the amounts necessary to retire the refunded bonds within h , e h that time are deposited with the paying agent for the refunded t u g e b l bonds.

Any such escrow shall not necessarily be limited to e e , gh n d d i = = o h proceeds of refunding bonds but may include other money l ] b ,d i a º r available for its purpose.

Proceeds in escrow pending such use emay rbe =invested tor ereinvested win dbills, maycertificates beof investedindebtedness, notes or reinvestedbonds inthat bills,are direct obligations of, or the principal and interest of which obligations are unconditionally guaranteed by, the United States or in certificates of mdeposit aof nbanks othat dSTBTC/SB m481 :Page 16 are members of the federal deposit insurance corporation;

b r e t º o t n = .231343.10AIC March 17, 2025 (10:15am) s k m e - 16 - e a n e d r e l u [ A d STBTC/SB 481 indebtedness, notes or bonds that are direct obligations of, or the principal and interest of which obligations are unconditionally guaranteed by, the United States or in certificates of deposit of banks that are members of the federal deposit insurance corporation;

Such proceeds and investments in escrow, together with any interest or other income to be derived from any such investment, shall be in an amount at all times sufficient as to principal, interest, any prior redemption premium due and any charges of the escrow agent payable from the escrow to pay the bonds being refunded as they become due at their respective maturities or at any designated prior redemption date or dates h u in connection with which the prior redemption option shall be » r t h g e exercised.

A purchaser of a refunding bond issued is not l i h r responsible for the application of the proceeds by the district i s h , or any of its officers, agents or employees.

e h t u g e b l G.

Refunding bonds may bear additional terms and e e , gh n d d i provisions as determined by the board subject to the = = o h l ] b ,d limitations in the State Fairgrounds District Act relating to i a º r e r = t e w d original bond issues.

mH. a n o d m :

b r e t º o t n = .231343.10AIC March 17, 2025 (10:15am) s k m e - 17 - e a n e d r e l u [ A d STBTC/SB 481 H.

(1) may have principal value, interest or any part thereof payable at intervals or at maturity, as STBTC/SB 481 Page 17 determined by the board;

h I.

At a regular or special meeting, the board may g o adopt a resolution by majority vote to authorize the issuance t hr g e i k of the refunding bonds." h r i s SECTION 9.

A new section of Chapter 6 NMSA 1978 is h , t, enacted to read:

e"TAX u g e b l e e h "[NEW MATERIAL] TAX MODIFICATIONS--BOND TERMS--TERMS--EXPIRATION.-- n d d i = = o h EXPIRATION.-- l ] b ,d i a º e A.

Nothing in the State Fairgrounds District Act r i = r t e w d shall prohibit the legislature from modifying any tax, mincluding aincreasing nor odecreasing da mtax. :

bThe eterms dand sconditions ºof oany tbond nissued =by .231343.10AICthe Marchdistrict 17,pursuant 2025to (10:15am)STBTC/SB s481 kPage m18 ethat -act 18shall -explicitly eprovide athat nthe erepayment dof rsuch ebonds, lincluding uinterest [and Aprincipal, dis STBTC/SBsubject 481to includingmodifications increasingto ortaxes decreasingimposed aby tax.the state.

The terms and conditions of any bond issued by the district pursuant to that act shall explicitly provide that the repayment of such bonds, including interest and principal, is subject to modifications to taxes imposed by the state.

"[NEW"DISTRICT MATERIAL] DISTRICT DEVELOPMENT PLAN.--The district shall prepare a district development plan that shall include:

h B.

the estimated time necessary to complete the g o district projects;

t hr g e C.

a description and the estimated cost of all i k h r projects and public improvements proposed for the district;

i s h , t, D.

whether it is proposed to use gross receipts tax e u g e b l bonds, gaming tax bonds or property tax bonds or some e e h n d d i combination to finance all or part of the projects and public = = o h l ] b ,d i a º e improvements;

r i = r t e w d E.

the estimated annual revenue to be generated by mthe adistrict ndevelopment oand dthe mportion :of that revenue to be allocated during the time necessary to complete the STBTC/SB 481 Page 19 payment of the projects;

b e d s º o t n = .231343.10AIC March 17, 2025 (10:15am) s k m e - 19 - e a n e d r e l u [ A d STBTC/SB 481 the district development and the portion of that revenue to be allocated during the time necessary to complete the payment of the projects;

and h K.

the amount and type of private investment in the g o district development." t hr g e i k SECTION 11.

A new section of Chapter 6 NMSA 1978 is h r i s enacted to read:

h , t, "[NEW MATERIAL ] EXEMPTION FROM TAXATION.--The bonds e u g e b l e e h authorized by the State Fairgrounds District Act and the income n d d i = = o h from the bonds or any other instrument executed as security for l ] b ,d i a º e the bonds shall be exempt from all taxation by the state or any r i = r t e w d political subdivision of the state." m a n o d m :

b e d s º o t n = .231343.10AIC March 17, 2025 (10:15am) s k m e - 20 - e a n e d r e l u [ A d STBTC/SB 481 SECTION 12.

"[NEW"EXEMPTION MATERIALFROM ]TAXATION.--The REPORTbonds REQUIRED.--Byauthorized Septemberby 1 of each year, beginning in 2025, the board shall report to the state board of finance and the legislative finance committee on the implementation of the State Fairgrounds District Act and expendituresthe toincome date,from the bonds issued,or debtany serviceother reserveinstrument fundsexecuted held,as progresssecurity madefor toward retiring the bonds,bonds estimatedshall capitalbe investmentexempt infrom theall district,taxation theby estimated total net new jobs and new full-time economic base jobs created in the districtstate andor theany totalpolitical revenuessubdivision distributedof to the districtstate." in each previous fiscal year." SECTION 13.12.

A new section of Chapter 6 NMSA 1978 is STBTC/SB 481 Page 20 enacted to read:

"REPORT REQUIRED.--By September 1 of each year, beginning in 2025, the board shall report to the state board of finance and the legislative finance committee on the implementation of the State Fairgrounds District Act and expenditures to date, bonds issued, debt service reserve funds held, progress made toward retiring the bonds, estimated capital investment in the district, the estimated total net new jobs and new full-time economic base jobs created in the district and the total revenues distributed to the district in each previous fiscal year." SECTION 13.

"[NEW"DISTRIBUTION--STATE MATERIAL ] DISTRIBUTION--STATE FAIRGROUNDS DISTRICT.-- A.

Beginning July 1, 2025, after a transfer is made h u » r pursuant to Section 7-1-6.13 NMSA 1978, a distribution shall be t h g e made by the department to a special fund of the state l i h r fairgrounds district in an amount equal to seventy-five percent i s h , of the net receipts attributable to the gross receipts tax from e h t u g e b l business locations within the state fairgrounds district.

e e , gh n d d i Except as provided in Subsection D of this section, the = = o h l ] b ,d distribution shall be made until the bonds issued pursuant to i a º r e r = t e w d the State Fairgrounds District Act are fully discharged or motherwise aprovided nfor oin dfull. m :

b r e t º o t n = .231343.10AIC March 17, 2025 (10:15am) s k m e - 21 - e a n e d r e l u [ A d STBTC/SB 481 otherwise provided for in full.

Beginning July 1, 2025, a distribution shall STBTC/SB 481 Page 21 be made by the department to a special fund of the state fairgrounds district in an amount equal to seventy-five percent of the net receipts attributable to the gaming tax from locations on the state fairgrounds district.

Immediately after approval of a proposed issuance of bonds by the state fairgrounds district pursuant to Section 7 of the State Fairgrounds District Act, the state h board of finance and the New Mexico finance authority shall g o notify the secretary of taxation and revenue.

Immediately t hr g e i k after issuing bonds pursuant to Section 7 of the State h r i s Fairgrounds District Act, the state fairgrounds district shall h , t, notify the secretary of taxation and revenue.

If, by June 30, e u g e b l 2029, the state board of finance and the New Mexico finance e e h n d d i = = o h authority have not approved of a proposed issuance of bonds or l ] b ,d i a º e the state fairgrounds district has not issued bonds:

r i = r t e w d (1) no further distributions shall be made;

mand a(2) nall omoney dfrom mdistributions :made prior STBTC/SB 481 Page 22 to June 30, 2029 pursuant to this section shall revert to the general fund.

b e d s º o t n = .231343.10AIC March 17, 2025 (10:15am) s k m e - 22 - e a n e d r e l u [ A d STBTC/SB 481 and (2) all money from distributions made prior to June 30, 2029 pursuant to this section shall revert to the general fund.

SHORT TITLE.--[ThisTITLE.--Chapter act ] Chapter 4, Article 53 NMSA 1978 may be cited as the "Special District Procedures Act"." h SECTION 15.

A new section of the Special District g o Procedures Act is enacted to read:

t"EXEMPTION.--The hr g e "[NEW MATERIAL] EXEMPTION.--The state fairgrounds district i k h r and the provisions of the State Fairgrounds District Act are i s h , t, exempt from the provisions of the Special District Procedures e u g e b l Act." e e h n d d i SECTION 16.

Section 4-54-1 NMSA 1978 (being Laws 1965, = = o h l ] b ,d i a º e Chapter 283, Section 1) is amended to read:

r i = r t e w d "4-54-1.

SHORT TITLE.--[ThisTITLE.--Chapter act ] Chapter 4, Article 54 mNMSA a1978 nmay obe dcited mas :the "Community Service District Act"." SECTION 17.

b e d s º o t n = .231343.10AIC March 17, 2025 (10:15am) s k m e - 23 - e a n e d r e l u [ A d STBTC/SB 481 NMSA 1978 may be cited as the "Community Service District Act"." SECTION 17.

"[NEWSTBTC/SB MATERIAL481 ]Page EXEMPTION.--The23 "EXEMPTION.--The state fairgrounds district and the provisions of the State Fairgrounds District Act are exempt from the provisions of the Community Service District Act." SECTION 18.

-STBTC/SB 246 -Page h24 u8 »25 r t h g e l i h r i s h , e h t u g e b l e e , gh n d d i = = o h l ] b ,d i a º r e r = t e w d m a n o d m :

b r e t º o t n = .231343.10AIC March 17, 2025 (10:15am) s k m e e a n e d r e l u [ A d