SB 72 — ELECTRIC GENERATION PROJECT REQUIREMENTS

SENATE BILL 72 55TH LEGISLATURE -STATEOFNEWMEXICO-- STATEOFNEWMEXICO- FIRST SESSION, 2021 INTRODUCED BY Steven P.

Neville 6This 8document 10may ANincorporate ACTamendments RELATINGproposed TOby INDUSTRIALa REVENUEcommittee, BONDS;but not yet adopted, as well as amendments that have been adopted during the current legislative session.

CHANGINGThe THEdocument METHODis FORa DETERMININGtool ANto ANNUALshow IN-LIEUamendments TAXin PAYMENTcontext FORand ANcannot ELECTRICbe GENERATIONused ORfor TRANSMISSIONthe FACILITYpurpose PROJECT;of adding amendments to legislation.

PROVIDINGh FORAN THEACT SHARINGg OFo IN-LIEURELATING TAXTO PAYMENTSINDUSTRIAL AMONGREVENUE CERTAINBONDS; SCHOOL DISTRICTS;

CLARIFYINGCHANGING THATTHE CERTAINMETHOD PAYMENTSFOR TOt THEhr STATEg FORe ANi ELECTRICk TRANSMISSIONDETERMINING PROJECTAN SHALLANNUAL BEIN-LIEU MADETAX BYPAYMENT THEFOR PERSONAN PROPOSINGELECTRIC THEh er ti 17s ELECTRICGENERATION OR TRANSMISSION FACILITY PROJECT;

PROVIDING FOR THE h , t, SHARING OF IN-LIEU TAX PAYMENTS AMONG CERTAIN SCHOOL DISTRICTS;

e u g e b l e e h CLARIFYING THAT CERTAIN PAYMENTS TO THE STATE FOR AN ELECTRIC n d d i = = o h TRANSMISSION PROJECT SHALL BE MADE BY THE PERSON PROPOSING THE l ] b ,d i a º e ELECTRIC TRANSMISSION PROJECT;

wr li n d 18 = =r 19t ae lw BEd ITm ENACTEDa BYn THEo LEGISLATUREd OFm THE: STATE OF NEW MEXICO:

ib e d s º o t n = .218990.2AIC March 12, 2021 (9:37am) s k m e e a n e d r 20e SECTIONl 1.u [ A d BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SectionSECTION 3-32-61. NMSA 1978 (being Laws 1965, a t m m 21 Chapter 300, Section 14-31-3, as amended) is amended to read:

dSection r3-32-6 eNMSA 221978 "3-32-6.(being Laws 1965, Chapter 300, Section 14-31-3, as amended) is amended to read:

ADDITIONAL"3-32-6. POWERS CONFERRED ON MUNICIPALITIES.-- c e s k 23 In addition to any other powers that it may now have, a e a n b 24 municipality shall have the following powers:

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

toA. acquire, whether by construction, purchase, .218990.2 gift or lease, one or more projects that shall be located within this state and may be located within or without the municipality or partially within or partially without the municipality, but which shall not be located more than fifteen miles outside of the corporate limits of the municipality;

to acquire, whether by construction, purchase, gift or lease, one or more projects that shall be located within this state and may be located within or without the municipality or partially within or partially without the municipality, but which shall not be located more than fifteen miles outside of the corporate limits of the municipality;

(1) urban transit buses qualifying as a project pursuant to Subsection B of Section 3-32-3 NMSA 1978 need not be continuously located within this state, but the commercial enterprise using the urban transit buses for leasing h shall meet the location requirement of this subsection;

and u » r t h (2) a municipality shall not acquire any g e l i electricity generation or transmission facility project unless h r i s the school [district in which the project is located will h , e h t u g receive the same amount, or greater, of annual in-lieu tax e b l e e , gh payments as would have been received in property taxes for the en td 17d i = = o h fully developed project had the project not been acquired] w l n] db 18,d i a º r e r = districts within the municipality in which the project is =t =e 19w d m a ln o located receive annual in-lieu tax payments;

provided that the id a e r 20 annual in-lieu tax payments required by this paragraph shall a t m m: 21 be:

db r e 22t (a)º payableo tot then school= districts.218990.2AIC forMarch c12, e2021 (9:37am) s k 23m thee period- the2 municipality- ownse anda leasesn e d r e l u [ A d annual in-lieu tax payments required by this paragraph HENRCº, unless otherwise provided for in the project;Energy Transition Act,»HENRC shall be:

e(a) apayable n b 24 (b) in an aggregate amount equal to the u [ amount received by the municipality multiplied by the .218990.2 - 2 - percentage determined by dividing the average of the operating, capital improvement and bond mills imposed by the school districts infor the municipalityperiod as of the datemunicipality ofowns issuanceand ofleases the bondsproject; by the average of the mills imposed by all entities levying taxes on property in the municipality as of such date;

(b) in an aggregate amount equal to the 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 the municipality STBTCºand state debt service mills»STBTC 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;

and h (d) not be less than the amount due to u » r the school districts in the tax year immediately preceding the t h g e l i issuance of the bonds from the property included in a project, h r i s had such project not been created;

h , e h B.

to sell or lease or otherwise dispose of any or t u g e b l e e , gh all of its projects upon such terms and conditions as the n d d i = = o h governing body may deem advisable and as shall not conflict l ] b ,d i a º r with the provisions of the Industrial Revenue Bond Act;

e r = t 17e w d m a n o C.

to issue revenue bonds for the purpose of w l n d 18m defraying: the cost of acquiring by construction and purchase, = = 19 a l or either, any project and to secure the payment of such bonds, i a e r 20 all as provided in the Industrial Revenue Bond Act.

Nob ar e t mº mo 21t municipalityn shall= have.218990.2AIC theMarch power12, to2021 operate(9:37am) anys projectk asm e - 3 - e a n e d r e 22l businessu [ A d defraying the cost of acquiring by construction and purchase, or ineither, any mannerproject exceptand to secure the payment of such bonds, all as lessor;provided in the Industrial Revenue Bond Act.

cNo emunicipality sshall khave 23the D.power to operate any project as a business or in any manner except as lessor;

toD. refinance one or more hospital or 501(c)(3) e a n b 24 corporation projects and to acquire any such hospital or u [ 501(c)(3) corporation project whether by construction, .218990.2 - 3 - purchase, gift or lease, which hospital or 501(c)(3) corporation project shall be located within this state and may be located within or without the municipality or partially within or partially without the municipality, but which shall not be located more than fifteen miles outside of the corporate limits of the municipality, and to issue revenue bonds to refinance and acquire a hospital or 501(c)(3) corporation project and to secure the payment of such bonds, all as provided in the Industrial Revenue Bond Act.

Ato 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 may be located within or without the municipality or partially within or partially without the municipality, but which shall not havebe located more than fifteen miles outside of the powercorporate limits of the municipality, and to operateissue revenue bonds to refinance and acquire a hospital or 501(c)(3) corporation project asand ato businesssecure orthe inpayment anyof mannersuch exceptbonds, all as lessor;h provided in the Industrial Revenue Bond Act.

andA E.municipality u » r shall not have the power to operate a hospital or 501(c)(3) t h g e l i corporation project as a business or in any manner except as h r i s lessor;

to refinance one or more projects of any private institution of higher education and toh acquire, anye suchh project,E. whether by construction, purchase, gift or lease;

providedto thatrefinance theone projector shallmore beprojects locatedof withinany thisprivate state e t 17u andg maye beb located within or without the municipality or w l ne d 18 partially within or partially without the municipality, but the = = 19 a l project shall not be located more than fifteen miles outside of i a e r, 20gh theinstitution corporate limits of thehigher municipality,education and to issue revenue a t m m 21 bonds to refinance and acquire any projectsuch ofn anyd private d ri e= 22= institutiono ofh higherproject, educationwhether andby toconstruction, securepurchase, thegift paymentor oflease; c e s k 23 such bonds.

Al municipality] shallb not,d havei thea powerº tor operateprovided ethat athe nproject bshall 24be alocated projectwithin ofthis astate privatee institutionr of= highert educatione asw ad um [a businessn oro inand anymay mannerbe exceptlocated aswithin lessor."or .218990.2without -the 4municipality -or SECTIONd 2.m :

b r e t º o t n = .218990.2AIC March 12, 2021 (9:37am) s k m e - 4 - e a n e d r e l u [ A d partially within or partially without the municipality, but the project shall not be located more than fifteen miles outside of the corporate limits of the municipality, and to issue revenue bonds to refinance and acquire any project of any private institution of higher education and to secure the payment of such bonds.

A municipality shall not have the power to operate a project of a private institution of higher education as a business or in any manner except as lessor." SECTION 2.

ELECTRIC TRANSMISSION PROJECTS--PAYMENTS TO THE STATE.--[The state shall receive]receive ] A person proposing an electric transmission facility project pursuant to Paragraph (2) of Subsection A of Section 3-32-6 NMSA 1978 shall pay to the state annual payments equal to five percent of the total amount of in-lieu tax payments [made by a person proposing an h electric transmission project] to be made in that calendar year u » r by such person to counties, municipalities and other local t h g e l i entities authorized to levy taxes on property, including in- h r i s lieu tax payments made to school districts pursuant to h , e h Paragraph (2) of Subsection A of Section 3-32-6 NMSA 1978, and t u g e b l e e , gh five percent of the value of any other consideration related to n d d i = = o h the project paid to local entities authorized to levy taxes on l ] b ,d i a º r property by a person proposing an electric transmission e r = t 17e w d m a n o project.

A copy of any agreement providing for such in-lieu w l n d 18m tax: payments shall be provided to the secretary of finance and = = 19 a l administration within thirty days of written approval of such i a e r 20 agreement by all of the parties.

Eachb annualr paymente tot theº ao t mn m= 21.218990.2AIC stateMarch shall12, be2021 made(9:37am) nos laterk thanm thee end- of5 each- fiscale yeara n e d r e 22l inu which[ in-lieuA d tax payments areshall madebe provided to localthe taxingsecretary cof efinance sand kadministration 23within entities.thirty days of written approval of such agreement by all of the parties.

Each annual payment to the state shall be made tono thelater departmentthan ethe aend n b 24 of financeeach andfiscal administrationyear forin depositwhich toin-lieu thetax generalpayments fund."are umade [to SECTIONlocal 3.taxing entities.