SB 566 — LEGISLATIVE AUTHORIZATION OF TIDD BONDS

"property tax increment bonds" means bonds r i = r t e w d issued by a district in accordance with the Tax Increment for mDevelopment aAct, nthe opledged drevenue mfor :which is a property tax increment;

bS. e d s º o t n = .211383.5 s k m e - 6 - e a n e d r e l u [ A d Development Act, the pledged revenue for which is a property tax increment;

[R.] S.

"Public improvements" [include ] includes:

(2) drainage and flood control systems, SB 566 including collection, transport, storage, treatment, Page 6 dispersal, effluent use and discharge;

(3) water systems for domestic, commercial, office, hotel or motel, industrial, irrigation, municipal or h fire protection purposes, including production, collection, g o storage, treatment, transport, delivery, connection and t hr g e i k dispersal;

h r i s (4) highways, streets, roadways, bridges, h , t, crossing structures and parking facilities, including all areas e u g e b l for vehicular use for travel, ingress, egress and parking;

e e h n d d i = = o h (5) trails and areas for pedestrian, l ] b ,d i a º e equestrian, bicycle or other non-motor vehicle use for travel, r i = r t e w d ingress, egress and parking;

m(6) apedestrian nand otransit dfacilities, mparks, :recreational facilities and open space areas for the use of members of the public for entertainment, assembly and recreation;

b e d s º o t n = .211383.5 s k m e - 7 - e a n e d r e l u [ A d (6) pedestrian and transit facilities, parks, recreational facilities and open space areas for the use of members of the public for entertainment, assembly and recreation;

SB 566 (11) lighting systems;

Page 7 (12) cable or other telecommunications lines and related equipment;

h (14) school sites and facilities with the g o consent of the governing board of the public school district t hr g e i k for which the facility is to be acquired, constructed or h r i s renovated;

h , t, (15) library and other public educational or e u g e b l cultural facilities;

e e h n d d i = = o h (16) equipment, vehicles, furnishings and l ] b ,d i a º e other personal property related to the items listed in this r i = r t e w d subsection;

m(17) ainspection, nconstruction omanagement, dplanning mand :program management and other professional services costs incidental to the project;

b e d s º o t n = .211383.5 s k m e - 8 - e a n e d r e l u [ A d (17) inspection, construction management, planning and program management and other professional services costs incidental to the project;

[S.T.

]"resident T.qualified elector" means a person who resides within the boundaries of a tax increment development district or proposed tax increment development district and who is qualified to vote in the general elections held in the SB 566 state pursuant to Section 1-1-4 NMSA 1978;

"residentPage qualified8 elector"U. means a person who resides within the boundaries of a tax increment development district or proposed tax increment development district and who is qualified to vote in the general elections held in the state pursuant to Section 1-1-4 NMSA 1978;

[T."state gross receipts tax" means the gross receipts tax imposed pursuant to the Gross Receipts and Compensating Tax Act, but does not include that portion distributed to municipalities pursuant to Sections 7-1-6.4 and 7-1-6.46 NMSA 1978 or to counties pursuant to Section 7-1-6.47 NMSA 1978;

]V. U.

"state"sustainable grossdevelopment" receipts tax" means theland grossdevelopment receiptsthat taxachieves imposedsustainable pursuanteconomic toand thesocial Grossgoals Receiptsin andways Compensatingthat Taxcan Act,be butsupported doesfor notthe includelong thatterm portionby distributedconserving toresources, municipalitiesprotecting pursuantthe toenvironment Sections 7-1-6.4 and 7-1-6.46ensuring NMSAhuman 1978health orand towelfare countiesusing pursuantmixed-use, topedestrian-oriented, Sectionmultimodal 7-1-6.47land huse NMSAplanning; 1978;

gW. o [U.

]"tax V.increment development area" means the land included within the boundaries of a tax increment development district;

"sustainableX. development" means land t hr g e i k development that achieves sustainable economic and social goals h r i s in ways that can be supported for the long term by conserving h , t, resources, protecting the environment and ensuring human health e u g e b l and welfare using mixed-use, pedestrian-oriented, multimodal e e h n d d i = = o h land use planning;

l ] b ,d i a º e [V.

] W.

"tax increment development area" means the r i = r t e w d land included within the boundaries of a tax increment m a n o d m :

b e d s º o t n = .211383.5 s k m e - 9 - e a n e d r e l u [ A d development district;

[W.] X.

[X.] Y.

[Y.] Z.

to support the creation of jobs, schools SB 566 and workforce housing;

and to generate tax revenue for the Page 9 provision of public improvements and may include:

h (2) demolition and removal of buildings and g o improvements and installation, construction or reconstruction t hr g e i k of streets, utilities, parks, playgrounds and improvements h r i s necessary to carry out the objectives of the Tax Increment for h , t, Development Act;

e u g e b l (3) installation, construction or e e h n d d i = = o h reconstruction of streets, water utilities, sewer utilities, l ] b ,d i a º e parks, playgrounds and other public improvements necessary to r i = r t e w d carry out the objectives of the Tax Increment for Development mAct; a n o d m :

b e d s º o t n = .211383.5 s k m e - 10 - e a n e d r e l u [ A d Act;

(6) borrowing to purchase land, buildings or infrastructure in an amount not to exceed the revenue stream SB 566 that may be derived from the gross receipts tax increment or Page 10 the property tax increment estimated to be received by a tax increment development district;

h [Z.] AA.

"taxing entity" means the governing body g o of a political subdivision of the state, the gross receipts tax t hr g e i k increment or property tax increment of which may be used for a h r i s tax increment development project;

and hBB. , t, [AA.

]"workforce BB.housing" means decent, safe and sanitary dwellings, apartments, single-family dwellings or other living accommodations that are affordable for persons or families earning less than eighty percent of the median income within the county in which the tax increment development project is located;

"workforceprovided housing"that meansan decent,owner- safeoccupied ehousing uunit gis eaffordable bto la andhousehold sanitaryif dwellings,the apartments,expected single-familysales dwellingsprice oris ereasonably eanticipated hto nresult din dmonthly ihousing =costs = o h other living accommodations that aredo affordablenot forexceed personsthirty-three or l ] b ,d i a º e families earning less than eighty percent of the medianhousehold's incomegross rmonthly iincome; = r t e w d within the county in which the tax increment development m a n o d m :

b e d s º o t n = .211383.5 s k m e - 11 - e a n e d r e l u [ A d project is located;

provided that an owner-occupied housing unit is affordable to a household if the expected sales price is reasonably anticipated to result in monthly housing costs that do not exceed thirty-three percent of the household's gross monthly income;

and (2) a renter-occupied housing unit is affordable to a household if the unit's monthly housing SB 566 costs, including rent and basic utility and energy costs, do Page 11 not exceed thirty-three percent of the household's gross monthly income." SECTION 2.

h "5-15-15.

TAX INCREMENT FINANCING--GROSS RECEIPTS TAX u » r INCREMENT TO SECURE BONDSBONDS.-- .-- t h g e A.

[Notwithstanding any law to the contrary, but in l i h r i s accordance with the provisions of the Tax Increment for h , e h Development Act] A tax increment development plan, as t u g e b l originally approved or as later modified, may contain a e e , gh n d d i = = o h provision that [agross portionreceipts oftax certainincrements ]collected grosswithin receiptsthe tax lincrement ]development barea ,dafter ithe aeffective ºdate rof incrementsapproval collectedof within the tax increment development areaplan emay rbe =dedicated tfor e w d after the effectivepurpose date of approvalsecuring ofgross thereceipts tax increment mbonds apursuant nto othe dTax mIncrement :for Development Act.

b r e t º o t n = .211383.5 s k m e - 12 - e a n e d r e l u [ A d development plan may be dedicated for the purpose of securing gross receipts tax increment bonds pursuant to the Tax Increment for Development Act.

[As to a district formed by a municipality, a portion of any of the following gross receipts tax increments may be paid by the state directly into a special fund of the district] A municipality may dedicate SFCºaa portion of»SFCof a gross receipts tax increment from any of the following taxes to pay the principal of, the interest on and any premium due in connection with [the bonds of, loans or advances to, or any indebtedness incurred by, whether funded, refunded, assumed or otherwise, the authority for financing or refinancing, in whole or in part] SFCºthe bonds of, loans or advances to, or any indebtedness incurred by, whether funded, refunded, assumed or otherwise, the authority for financing or refinancing, in whole or in part,»SFCpart, SFCºgross receipts tax increment bonds issued h to finance »SFC a tax increment development project within the u » r tax increment development areaarea: SFCº;

provided(1) thatmunicipal the t h g e l i municipality has adopted a resolution dedicating the gross h r i s receipts tax incrementauthorized forpursuant to the purposeMunicipal ofLocal securingOption grossGross hReceipts ,Taxes eSB h566 receiptsAct; tax increment bonds»SFC:

tPage u12 g(2) emunicipal benvironmental lservices e e , gh (1) municipal gross receipts tax authorized n d d i = = o h pursuant to the Municipal Local Option Gross Receipts Taxes l ] b ,d i a º r Act;

e r = t e w d m a n o (2) municipal environmental services gross d m :

b r e t º o t n = .211383.5 s k m e - 13 - e a n e d r e l u [ A d receipts tax authorized pursuant to the Municipal Local Option Gross Receipts Taxes Act;

and [(5)(5) municipalan regionalamount transitdistributed grossto receiptsmunicipalities tax authorized pursuant to theSections Municipal7-1-6.4 Localand Option7-1-6.46 GrossNMSA Receipts1978. Taxes Act;

(6)] (5) an amount distributed to municipalities pursuant to Sections 7-1-6.4 and 7-1-6.46 NMSA [and (7) the state gross receipts tax].

[As to a district formed by a county, all or a h portion of any of the following gross receipts tax increments u » r may be paid by the state directly into a special fund of the t h g e l i district] A county may dedicate SFCºaa portion of»SFCof a gross h r i s receipts tax increment from any of the following taxes to pay h , e h the principal of, the interest on and any premium due in t u g e b l e e , gh connection with [thethe bonds of, loans or advances to or any n d d i = = o h indebtedness incurred by, whether funded, refunded, assumed or l ] b ,d i a º r otherwise, the district for financing or refinancing, in whole e r = t e w d m a n o or in part]part, SFCºthea bondstax of,increment loansdevelopment orproject advanceswithin tothe ortax anyincrement ddevelopment marea: :

b r e t º o t n = .211383.5 s k m e - 14 - e a n e d r e l u [ A d indebtedness incurred by, whether funded, refunded, assumed or otherwise, the district for financing or refinancing, in whole or in part,»SFC SFCºgross receipts tax increment bonds issued to finance»SFC a tax increment development project within the tax increment development area SFCº;

provided that the county has adopted a resolution dedicating the gross receipts tax increment for the purpose of securing gross receipts tax increment bonds»SFC:

SB 566 (3) county infrastructure gross receipts tax Page 13 authorized pursuant to the County Local Option Gross Receipts Taxes Act;

h (4) county capital outlay gross receipts tax u » r authorized pursuant to the County Local Option Gross Receipts t h g e l i Taxes Act;

h r i s (5) county regional transit gross receipts tax h , e h authorized pursuant to the County Local Option Gross Receipts t u g e b l e e , gh Taxes Act;

and n d d i = = o h (6) the amount distributed to counties l ] b ,d i a º r pursuant to Section 7-1-6.47 NMSA 19781978. [and e r = t e w d m a n o (7) the state gross receipts tax].

dD. m :

bSubject rto ethe tprovisions ºof oSubsection tG nof =this .211383.5section, sthe kstate mboard eof -finance 15may -dedicate e a ngross ereceipts dtax rincrement eattributable lto uthe [state Agross dreceipts D.tax to pay the financing and refinancing costs, the principal of, the interest on and any premium due in connection with gross receipts tax increment bonds issued to finance a tax increment development project within the tax increment development area;

Subject to the provisions of Subsection G of this section, the state board of finance may dedicate a gross receipts tax increment attributable to the state gross receipts tax to pay SFCºthe financing and refinancing costs,»SFC the principal of, the interest on and any premium due in connection with gross receipts tax increment bonds issued to finance a tax increment development project within the tax increment development area;

(1) Sflºbeginningbeginning July 1, 2029»Sfl2029 the increment from the SFCºstate»SFCstate gross receipts tax is no more than the Sflºlesseraverage average»Sfl of:

Sflºorand and»SFCSB 566 (b) the increment from county option hPage 14 gross receipts taxes dedicated by resolution by the county;

u » r SFCºand»SFC t h g e l i (2) the state board of finance has adopted a h r i s resolution dedicating an increment attributable to the state h , e h gross receipts tax for the purpose of securing gross receipts t u g e b l e e , gh tax increment bonds pursuant to Subsection G of this sectionsection; n d d i = = o h SFCº.

and»SFCand l(3) ] b ,d i a º r SFCº(3) the dedication shall be conditioned e r = t e w d m a n o on the gross receipts tax increment bonds being issued no later dthan mfour :years after the state board of finance has adopted the resolution dedicating the increment.

b r e t º o t n = .211383.5 s k m e - 16 - e a n e d r e l u [ A d than four years after the state board of finance has adopted the resolution dedicating the increment.»SFC [D.] E.

The gross receipts tax increment generated by the imposition of municipal or county [local ] option gross receipts taxes specified by statute for particular purposes may nonetheless be dedicated for the purposes of the Tax Increment for Development Act if intent to do so is set forth in the tax increment development plan approved by the governing body, if the purpose for which the increment is intended to be used is consistent with the purposes set forth in the statute authorizing the municipal or county [local ] option gross receipts tax.

[E.] F.

An imposition of a gross receipts tax increment attributable to [the imposition of ] a gross receipts tax by a taxing entity may be dedicated for the purpose of securing gross receipts tax increment bonds with the agreement h of the taxing entity, SB 566 evidenced by a resolution adopted by a g o t hr majority vote of that Page 15 taxing entity.

A taxing entity shall not g e i k agree to dedicate for the purposes of securing gross receipts h r i s tax increment bonds more than seventy-five percent of its gross h , t, receipts tax increment attributable to [the imposition of ] e u g e b l e e h gross receipts taxes by the taxing entity.

A resolution of the n d d i = = o h taxing entity to dedicate a gross receipts tax increment or to l ] b ,d i a º e increase the dedication of a gross receipts tax increment shall r i = r t e w d m a n o become effective only on January 1 or July 1 of the calendar dyear. m :

bG. e d s º o t n = .211383.5 s k m e - 17 - e a n e d r e l u [ A d year.

[F.The state board of finance shall condition a dedication of a gross receipts tax increment attributable to the state gross receipts tax on the approval required pursuant to Section 5-15-21 NMSA 1978 and that the initial gross receipts tax increment bonds issuance secured by a portion of the gross receipts tax increment attributable to the state gross receipts tax shall be issued no later than four years after the state board of finance has adopted the resolution making the dedication.

AnSubject impositionto ofthe alimitations grossprovided receiptsin taxSubsection incrementD attributableof tothis thesection, imposition of the state grossboard receiptsof taxfinance withinshall anot districtagree less the distributions made pursuant to Sectiondedicate 7-1-6.4more NMSAthan 1978seventy-five maypercent beof dedicated for the purpose of securing gross receipts tax increment bondsattributable withto the agreement of the state boardgross ofreceipts finance,tax evidencedwithin by a resolution adopted by a majority vote of the statedistrict. board of finance.] G.

The stateresolution board of finance shall condition a dedication of a gross receipts tax increment attributable to the state grossboard receipts tax on the approval required pursuant to Section 5-15-21 NMSA 1978 HflºSFCºand that the gross receipts tax increment bonds secured by a portion of thefinance state gross receipts tax shall bebecome issuedeffective noon laterJanuary than1 fouror yearsJuly after1 the state board of finance has adopted the resolutioncalendar makingyear thefollowing dedication»SFC»Hfl Hflºand that the initialnotification grossperiod hpursuant receipts tax increment bonds issuance secured by a portion of u » r the gross receipts tax increment attributable to theSection state5-15-27 tSB h566 gNMSA e1978 land i gross receipts tax shall befind issuedthat: no later than four years h r i s after the state board of finance has adopted the resolution h , e h making the dedication»Hfl.

SubjectPage to16 the(1) limitations provided t u g e b l e e , gh in Subsection D of this section, the state board of finance nhas dreviewed dthe irequest =for =the ouse h shall not agree to dedicate more than seventy-five percent of l ] b ,d i a º r the gross receipts tax increment attributable to [the e r = t e w d m a n o imposition of] the state gross receipts taxtax; within the d m :

b(2) rbased eupon treview ºby othe tstate nboard =of .211383.5finance sof kthe mapplicable etax -increment 18development -plan, ethe dedication by the state board of finance of a nportion eof dthe rgross ereceipts ltax uincrement [within Athe ddistrict district.for use in meeting the required goals of the tax increment plan is reasonable and in the best interest of the state;

Theand resolution(3) ofbased upon the review by the state board of financefinance, shallthe becomeuse effectiveof [onlythe ]state ongross Januaryreceipts 1tax oris Julylikely 1to ofstimulate the calendarcreation yearof followingjobs, economic opportunities and general revenue for the notificationstate periodthrough pursuantthe toaddition Sectionof 5-15-27new NMSAbusinesses 1978to the state and shallthe findexpansion that:of existing businesses within the state;

(1)provided that, when reviewing the applicable tax increment development plan to create jobs and economic opportunities, the state board of finance hasshall reviewedprioritize thein requestits consideration net, new full-time economic base jobs that would not have occurred on a similar scale and time line but for the use of the state gross receipts tax;tax increment.

(2) based upon review by the state board of finance of the applicable tax increment development plan, the dedication by the state board of finance of [a portion of ] SFCº a portion of»SFC the gross receipts tax increment [attributable to the imposition of the state gross receipts tax] within the district for use in meeting the required goals of the tax increment plan is reasonable and in the best interest of the state;

and (3) based upon the review by the state board of finance, the use of the state gross receipts tax is likely h to stimulate the creation of jobs, economic opportunities and u » r general revenue for the state through the addition of new t h g e l i businesses to the state and the expansion of existing h r i s businesses within the state;

provided that, when reviewing the h , e h applicable tax increment development plan to create jobs and t u g e b l e e , gh economic opportunities, the state board of finance shall n d d i = = o h Hflºonly»Hfl SFCºconsider prioritize in its consideration»SFC l ] b ,d i a º r net, new full-time economic base jobs that would not have e r = t e w d m a n o occurred on a similar scale and time line but for the use of d m :

b r e t º o t n = .211383.5 s k m e - 19 - e a n e d r e l u [ A d the state gross receipts tax increment.

[G.]SB 566 H.

The governing body of the jurisdiction in which Page 17 a tax increment development district has been established shall timely notify the assessor of the county in which the district has been established, the taxation and revenue department and the local government division of the department of finance and administration when:

and h (3) the purposes of the district have g o t hr otherwise been achieved." g e i k SECTION 3.

A new Section 5-15-15.1 NMSA 1978 is enacted h r i s to read:

h , t, "5-15-15.1.

[NEW MATERIAL ] FILING FEE FOR EVALUATING USE e u g e b l e e h OF STATE GROSS RECEIPTS TAX INCREMENT.--Prior to approval of a ndedication dof da igross =receipts =tax oincrement hattributable dedicationto ofthe astate gross receipts tax incrementby attributablethe tostate lboard ]of bfinance ,dpursuant ito Section 5-15-15 NMSA 1978, a ºtax eincrement thedevelopment statedistrict grossshall receiptssubmit taxa byfiling fee to the state board of finance rto ipay =the rreasonable tcosts, eas wdetermined dby mthe adepartment nof ofinance pursuantand toadministration, Sectionof 5-15-15evaluating NMSAthe 1978,tax increment development plan and the district's requested use of a state gross receipts tax incrementSB d566 mincrement." :Page 18 SECTION 4.

b e d s º o t n = .211383.5 s k m e - 20 - e a n e d r e l u [ A d development district shall submit a filing fee to the state board of finance to pay the reasonable costs, as determined by the department of finance and administration, of evaluating the tax increment development plan and the district's requested use of a state gross receipts tax increment." SECTION 4.

A district may issue gross receipts tax increment revenue bonds, the pledged revenue for which is a gross receipts tax increment dedicated in accordance with the provisions of the Tax Increment for Development Act, for any one or more of the purposes authorized by [the Tax Increment for Development] that act.

A district may pledge irrevocably [any or all h of] the revenue from a gross receipts tax increment received by u » r the district to the payment of the interest on and principal of t h g e l i the gross receipts tax increment bonds for any of the purposes h r i s authorized in the Tax Increment for Development Act.

A law h , e h that imposes or authorizes the imposition of a municipal or t u g e b l e e , gh county gross receipts tax or that affects the municipal or n d d i = = o h county gross receipts tax shall not be repealed, amended or l ] b ,d i a º r otherwise directly or indirectly modified in any manner to eadversely rimpair =any toutstanding egross wreceipts dtax mincrement abonds nthat omay adverselybe impairsecured by a pledge of any outstandingmunicipal or county option gross receipts tax incrementincrement, dunless mthose :outstanding bonds have been discharged in full or provision has been fully made for those bonds.

b r e t º o t n = .211383.5 s k m e - 21 - e a n e d r e l u [ A d bonds that may be secured by a pledge of any municipal or county option gross receipts tax increment, unless those outstanding bonds have been discharged in full or provision has been fully made for those bonds.

Revenues in excess of the annual principal and SB 566 interest due on gross receipts tax increment bonds secured by Page 19 a pledge of gross receipts tax increment revenue may be accumulated in a debt service reserve account.

(1) may have interest, principal value or any h part thereof payable at intervals or at maturity as may be u » r determined by the governing body;

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

n d d i = = o h (3) may mature at any time not exceeding l ] b ,d i a º r twenty-five years after the date of issuance;

e(4) rmay =be tserial ein wform dand mmaturity, amay nconsist oof (4)one bond payable at one time or in installments or may be serial in another form anddetermined maturity,by maythe ddistrict mboard; :

b(5) rshall ebe tsold ºfor ocash tat, nabove =or .211383.5below spar kand mat ea -price 22that -results ein a nnet eeffective dinterest rrate ethat ldoes unot [exceed Athe dmaximum consistpermitted ofby oneSB bond566 payablethe atPublic oneSecurities timeAct orand inthe installmentsPublic orSecurities mayPage be20 inShort-Term anotherInterest formRate determinedAct; by the district 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;

and (3) designates the sources of gross receipts h [taxes or portions ] increments thereof to be pledged to the g o t hr repayment of the gross receipts tax increment bonds." g e i k SECTION 5.

Section 5-15-20 NMSA 1978 (being Laws 2006, h r i s Chapter 75, Section 20) is amended to read:

h , t, "5-15-20.

GENERAL BONDING AUTHORITY OF A TAX INCREMENT e u g e b l e e h DEVELOPMENT DISTRICT--OTHER LIMITATIONS.-- n d d i = = o h A.

A district board shall not issue bonds against l ] b ,d i a º e gross receipts tax increments attributable to:

r i = r t e w d m a n o (1) the state gross receipts tax without:

d(a) mthe :state board of finance adopting a resolution dedicating a gross receipts tax increment attributable to the state gross receipts tax for the purpose of securing the gross receipts tax increment bonds pursuant SB 566 to Subsection G of Section 5-15-15 NMSA 1978;

band ePage d21 s(b) º o t n = .211383.5 s k m e - 23 - e a n e d r e l u [ A d (a) the stateapproval boardrequired ofby finance adopting a resolution dedicating a gross receipts tax increment attributable to the state gross receipts tax for the purpose of securing the gross receipts tax increment bonds pursuant to Subsection G of Section 5-15-155-15-21 NMSA 1978;

and (b)(2) a gross receipts tax imposed by a taxing entity without the approvalagreement requiredof the taxing entity as evidenced by a resolution adopted pursuant to Subsection B or C of Section 5-15-215-15-15 NMSA 1978;1978.

and (2) a gross receipts tax imposed by a taxing entity without the agreement of the taxing entity as evidenced by a resolution adopted pursuant to Subsection B Hflºor C»Hfl of Section 5-15-15 NMSA 1978.

Except as otherwise provided in this section, a district board shall not issue bonds against either gross receipts tax increments or property tax increments without the express written authorization of the department of finance and administration, as evidenced by a letter signed by the h secretary of finance and administration.

A district formed and u » r approved by a class A county or by a municipality within a t h g e l i class A county if the municipality has a population of more h r i s than sixty-five thousand persons, according to the most recent h , e h federal decennial census, is not required to obtain express t u g e b l e e , gh written authorization of the department of finance and n d d i = = o h administration for the issuance of gross receipts tax increment l ] b ,d i a º r bonds or property tax increment bonds.

e r = t e w d m a n o [B.] C.

Prior to the issuance of indebtedness devidenced mby :the gross receipts tax increment bonds or property tax increment bonds issued by a district pursuant to the Tax Increment for Development Act, the property owners within the district shall contribute a minimum of twenty percent of the SB 566 initial public infrastructure costs, which may be reimbursed Page 22 with proceeds of gross receipts tax increment or property tax increment bonds;

b r e t º o t n = .211383.5 s k m e - 24 - e a n e d r e l u [ A d evidenced by the gross receipts tax increment bonds or property tax increment bonds issued by a district pursuant to the Tax Increment for Development Act, the property owners within the district shall contribute a minimum of twenty percent of the initial public infrastructure costs, which may be reimbursed with proceeds of gross receipts tax increment or property tax increment bonds;

[C.] D.

The amount of indebtedness evidenced by the gross receipts tax increment bonds or property tax increment bonds issued pursuant to the Tax Increment for Development Act shall not exceed the estimated cost of the public improvements plus all costs connected with the public infrastructure purposes and the issuance and sale of bonds, including, without h limitation, formation costs, credit enhancement and liquidity u » r support fees and costs.

t h g e l i [D.] E.

The indebtedness evidenced by the gross h r i s receipts tax increment bonds or property tax increment bonds h , e h shall not affect the general obligation bonding capacity of the t u g e b l e e , gh municipality or county in which the tax increment development n d d i = = o h district is located.

l ] b ,d i a º r [E.] F.

The indebtedness evidenced by the gross ereceipts rtax =increment tbonds eor wproperty dtax mincrement abonds nshall obe payable only from the special funds into which are deposited the gross receipts tax incrementincrements bondsand or property tax incrementincrements bondsas dset mforth :in the Tax Increment for Development Act.

bSB r566 eG. t º o t n = .211383.5 s k m e - 25 - e a n e d r e l u [ A d shall be payable only from the special funds into which are deposited the gross receipts tax increments and property tax increments as set forth in the Tax Increment for Development Act.

[F.]Bonds G.issued by a tax increment development Page 23 district shall not be a general obligation of the state, the county or the municipality in which the tax increment development district is located and shall not pledge the full faith and credit of the state, the county or the municipality in which the tax increment development district is located." SECTION 6.

Bonds issued by a tax increment development district shall not be a general obligation of the state, the county or the municipality in which the tax increment development district is located and shall not pledge the full faith and credit of the state, the county or the municipality in which the tax increment development district is located." SECTION 6.

In addition to all other requirements of the Tax Increment for Development Act, prior to a district board h issuing bonds that are issued in whole or in part against a u » r gross receipts tax increment attributable to the [imposition of t h g e l i the] state gross receipts tax within a district and before a h r i s distribution attributable to the state gross receipts tax is h , e h made pursuant to Section 7-1-6.54 NMSA 1978, [A.] the New t u g e b l e e , gh Mexico finance authority shall review the proposed issuance of n d d i = = o h the bonds and determine that the proceeds of the bonds will be l ] b ,d i a º r used for a tax increment development project in accordance with e r = t e w d m a n o the district's tax increment development plan and present the dproposed missuance :of the bonds to the legislature for approval.

b r e t º o t n = .211383.5 s k m e - 26 - e a n e d r e l u [ A d proposed issuance of the bonds to the legislature for approval [and ].

The issuance of the bonds and the maximum amount of bonds to be issued shall be specifically authorized SB 566 by law." SFCºPage 24 SECTION 7.

Section 5-15-25.3 NMSA 1978 (being Laws 2014, Chapter 11, Section 3) is amended to read:

"5-15-25.3.

BASE YEAR REVISION--EFFECT.--[A.] Upon notice of the approval of a revision of the base year used to determine a district's gross receipts tax increment, the district shall:

[(1) return to the taxation and revenue department any gross receipts tax increment credited to the period between the time that the revenue collection began and the end of the revised base year and distributed to the district;

(2)] A.

update the district tax increment h development plan to reflect the revision;

and u » r t h [(3)] B.

file with the clerk of the governing body g e l i that formed the district the revised tax increment development h r i s plan.

h , e h t u g [B.

Upon receipt of the revenue identified in e b l e e , gh Paragraph (1) of Subsection A of this section, the taxation and n d d i = = o h revenue department shall remit to the taxing entities that have l ] b ,d i a º r e r = dedicated a gross receipts tax increment to the district an t e w d m a n o d m :

b r e t º o t n = .211383.5 s k m e - 27 - e a n e d r e l u [ A d amount of that revenue in proportion to the amount of gross receipts tax increment attributable to their dedication.]"»SFC SECTION SFCº8 7»SFC.

If the state board of finance or a taxing entity approves a dedication or increase in the dedication of a [portion of a ] gross receipts tax increment to a district, the state board of finance or the taxing entity shall notify the taxation and revenue department of that approval at least one hundred twenty days before the effective date of the dedication or increase in the dedication;

provided that the effective date of the dedication Sflºbyby the state board of finance»Sflfinance is on or after the date the bonds are approved by the legislature pursuant to Section 5-15-21 NMSA 1978.

h B.

In regard to a dedication of a gross receipts u » r tax increment attributable to the state gross receipts tax, if t h g e l i the approval required pursuant to Section 5-15-21 NMSA 1978 has h r i s not occurred when the notice pursuant to Subsection A of this h , e h section is made, the state board of finance shall include in t u g e b l e e , gh the notice that legislative approval is needed prior to a n d d i = = o h distribution pursuant to Section 7-1-6.54 NMSA 1978 l ] b ,d i a º r attributable to the state gross receipts tax can be made.

Upon eapproval rpursuant =to tSection e5-15-21 wNMSA d1978, mthe astate nboard oof approvalfinance pursuantshall tonotify Sectionthe 5-15-21department NMSAof 1978, the stateSB board566 dapproval." mPage :25 SECTION 8.

b r e t º o t n = .211383.5 s k m e - 28 - e a n e d r e l u [ A d of finance shall notify the department of the approval." SECTION SFCº9 8»SFC.

"[NEW"REPORT MATERIAL ] REPORT REQUIRED.--On September 1 of each year, the district board of a district that receives a distribution of a gross receipts tax increment attributable to the state gross receipts tax shall submit a report to the state board of finance and the legislative finance committee that includes the 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 SFCº9. 10 9»SFC.

DISTRIBUTIONS--TAX INCREMENT DEVELOPMENT DISTRICTS.--A distribution [to] for a tax increment development h district shall be made by the department to a special fund of g o t hr the district, in accordance with a notice that is filed g e i k pursuant to [the Tax Increment for Development Act ] Section h r i s 5-15-27 NMSA 1978 with respect to a [taxing entity's] h , t, dedication of a [portion of a ] gross receipts tax increment, to e u g e b l e e h a special fund of the tax increment development district." n d d i = = o h Hflº SECTION 10.

APPLICABILITY.--The provisions of this l ] b ,d i a º e act shall not apply to dedications of gross receipts tax r i = r t e w d m a n o increments by the state board of finance made prior to the deffective mdate :of this act.

bSB e566 dSECTION s11. º o t n = .211383.5 s k m e - 29 - e a n e d r e l u [ A d effective date of this act.

SECTIONEFFECTIVE 11.DATE.--The effective date of the Page 26 provisions of this act is July 1, 2019.

EFFECTIVESB DATE.--The566 effectivePage date27 of3 the5 provisions7 of9 this25 act is July 1, 2019.»Hfl - 30 - » g o » r h t i k l i g t h s , e h t l i w l b l e e , g n d l h = = b , a l º d i a r e r = , a t e d m a n o d m :

b r e t º o t n = .211383.5 s k em e e a n e d r e l u [ A d