SB 165 — MUNICIPAL REVENUE FOR BOND REPAYMENT

SENATEAN BILLACT 165RELATING 54THTO LEGISLATUREPUBLIC -FINANCE; STATE OF NEW MEXICO - FIRST SESSIO, 2019 INTRODUCED BY Clemente Sanchez and Jane E.

Powdrell-Culbert 6 ENDORSED BY THE NEW MEXICO FINANCE AUTHORITY OVERSIGHT COMMITTEE 10 AN ACT RELATING TO PUBLIC FINANCE;

145 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

e t 17 "3-31-8.

REVENUE BONDS--REFUNDING AUTHORIZATION-- w l n d 18 AUTHORITY TO MORTGAGE MUNICIPAL UTILITY.-- = = 19 A.

Any municipality having issued revenue bonds as a l i a e r 20 authorized in Sections 3-31-1 through 3-31-7 NMSA 1978 or a t m m 21 pursuant to any other laws enabling the governing body of any d r e 22 municipality having issued such revenue bonds payable only out c e s k 23 of the pledged revenue may issue refunding revenue bonds for e a n b 24 the purpose of refinancing, paying and discharging all or any u [ part of such outstanding bonds of any one or more or all .211608.1SA outstanding issues:

SB 165 Page 1 (3) for the purpose of modifying or eliminating restrictive contractual limitations pertaining to the issuance of additional bonds, otherwise concerning the outstanding bonds or to any facilities relating thereto;

The municipality may pledge irrevocably for the payment of interest and principal on refunding bonds the appropriate pledged revenues, which may be pledged to an e e 17 original issue of bonds as provided in Section 3-31-1 NMSA e e n d 18 1978, [Nothing in this section shall permit the pledge of the = = l ] 19 gross receipts tax revenue to the payment of bonds that refund a l r i 20 utility bonds, joint utility bonds or gasoline tax revenue t e a t bonds or the pledge of gasoline tax revenue to the payment of m m 21 e d r e 22 bonds that refund utility bonds, joint utility bonds or gross c e r c 23 receipts tax revenue bonds or the pledge of any revenues of any e a n b 24 utility or joint utility to the payment of bonds that refund u [ gross receipts tax revenue bonds or gasoline tax revenue bonds] .211608.1SA - 2 - and it may pledge revenues from one source to the payment of bonds that refund bonds payable from a different source of revenue.

In addition to pledging of utility revenues to the payment of the refunding revenue bonds that refund utility bonds or joint utility bonds as provided in Section 3-23-4 NMSA 1978, the municipality may grant by ordinance, or by resolution if the refunding revenue bonds are issued and sold to the New Mexico finance authority pursuant to Subsection C of Section 3-31-4 NMSA 1978, a mortgage of the municipal utility that has been solely financed by revenue bonds to the bondholder or a trustee for the benefit and security of the holders of the refunding revenue bonds." eSB e165 17Page 2 SECTION 2.

EFFECTIVE DATE.--The effective date of the e e n d 18 provisions of this act is July 1, 2019.

=SB =165 lPage ] 19 - 3 -4 a6 l8 r25 i 20 t e a t m m 21 e d r e 22 c e r c 23 e a n b 24 u [ .211608.1SA