HB 50 — AMENDING THE INDUSTRIAL REVENUE BOND ACT

HOUSE BILL 50 54TH LEGISLATURE - STATEOFNEWMEXICO- SECOND SESSION , 2020 INTRODUCED BY Nathan P.

Small This document incorporates amendments that have been adopted during the current legislative session.

The document is a tool to show the amendments in context and is not to be used for the purpose of amendments.

AMENDING THE INDUSTRIAL h REVENUE BOND ACT TO INCLUDE CERTAIN ELECTRIC TRANSMISSION g o FACILITIES AS ELIGIBLE PROJECTS;

AMENDING THE COUNTY INDUSTRIAL t hr g e i k REVENUE BOND ACT TO INCLUDE CERTAIN ELECTRIC TRANSMISSION h r i s FACILITIES AS ELIGIBLE PROJECTS;

REQUIRING PAYMENTS TO THE h , t, STATE FOR CERTAIN PROJECTSPROJECTS; Hfl1º ;

REQUIRING PAYMENTS TO SCHOOL e u g e b l e e h DISTRICTS FOR CERTAIN PROJECTS»Hfl1.PROJECTS.

n d d i = = o h l ] b ,d i a º e BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

r i = r t e w d m a n o SECTION 1.

Section 3-32-1 NMSA 1978 (being Laws 1965, dChapter m300, :Section 14-31-1, as amended by Laws 2002, Chapter 25, Section 1 and by Laws 2002, Chapter 37, Section 1) is amended to read:

b e d s º o t n = .216331.1AIC February 9, 2020 (12:55pm) s k m e e a n e d r e l u [ A d Chapter 300, Section 14-31-1, as amended by Laws 2002, Chapter 25, Section 1 and by Laws 2002, Chapter 37, Section 1) is amended to read:

"municipality" means [any ] a city, town or village in [the state of ] New Mexico;

"project" means any land and building or other improvements thereon, the acquisition by or for a New Mexico corporation of the assets or stock of an existing business or corporation located outside the state [of New Mexico ] to be relocated within HB 50/a Page 1 or near the municipality in the state [of New Mexico] and all real and personal properties deemed necessary h in connection therewith, whether or not now in existence, which g o t hr shall be suitable for use by the following or by any g e i k combination of two or more thereof:

h r i s (1) [any ] an industry for the manufacturing, h , t, processing or assembling of [any ] agricultural or manufactured e u g e b l e e h products;

n(2) da dcommercial ienterprise =in =storing, owarehousing, hdistributing (2)or [anyselling ]products aof commercialagriculture, enterprisemining inor storing,industry lbut ]does bnot ,dinclude i a ºfacility edesigned warehousing,for distributingthe orsale selling products of agriculture,goods ror icommodities =at rretail tor edistribution wto dthe mpublic aof nelectricity, ogas, miningwater or industrytelephone butor doesother notservices includecommonly [facilitiesclassified ]as apublic facilityutilities; d m :

b(3) ea dbusiness sin ºwhich oall tor npart =of .216331.1AICthe Februaryactivities 9,of 2020the (12:55pm)business sinvolve kthe msupplying eof -services 2to -the egeneral apublic nor eto dgovernmental ragencies eor lto ua [specific Aindustry dor designedcustomer forbut thedoes salenot ofinclude goodsan orestablishment commoditiesprimarily atengaged retailin or distribution to the publicsale of electricity,goods gas, water or telephonecommodities orat otherretail; services commonly classified as public utilities;

(3)(4) [any ] a businesswater indistribution which all or partirrigation ofsystem, theincluding activitieswithout oflimitation, thepumps, businessdistribution involvelines, thetransmission supplyinglines, oftowers, servicesdams toand thesimilar generalfacilities publicand orequipment, designed to governmentalprovide agencieswater or to a specificHB industry50/a orPage customer2 butvineyard does not include [establishments ] an establishment primarily engaged in the sale of goods or commoditieswinery; at retail;

(4)(5) [anyan ]electric ageneration water distribution or irrigationtransmission system,facility includingother withoutthan limitation,one pumps,for distributionwhich lines,both transmissionlocation lines,approval towers,and damsa andcertificate similarof facilitiesconvenience and equipment,necessity designedare required prior to providecommencing waterconstruction toor [anyoperation ]of athe vineyardfacility, orpursuant winery;to the Public Utility Act;

(5) [any ] an electric generation or h transmission facility other than one for which both location g o t hr approval and (6) a certificate501(c)(3) ofcorporation; convenience and necessity are g e i k required prior to commencing construction or operation of the h r i s facility, pursuant to the Public Utility Act [and Electric h , t, Utility Industry Restructuring Act of 1999];

andC. e u g e b l e e h (6) [any ] a 501(c)(3) corporation;

n"governing dbody" dmeans ithe =board =or obody hin C.which the legislative powers of the municipality are vested;

"governingD. body" means the board or body in l ] b ,d i a º e which the legislative powers of the municipality are vested;

r"property" imeans =any rland, timprovements ethereon, wbuildings dand many aimprovements nthereto, omachinery D.and equipment of any and all kinds necessary to the project, operating capital and any other personal properties deemed necessary in connection with the project;

"property" means any land, improvements thereon, d m :

b e d s º o t n = .216331.1AIC February 9, 2020 (12:55pm) s k m e - 3 - e a n e d r e l u [ A d buildings and any improvements thereto, machinery and equipment of any and all kinds necessary to the project, operating capital and any other personal properties deemed necessary in connection with the project;

"health care [services ] service" means the diagnosis or treatment of sick or injured persons or medical research and includes the ownership, operation, maintenance, leasing and disposition of health care facilities such as hospitals, clinics, laboratories, x-ray centers and pharmacies and, for any small municipality only, office facilities for physicians;

"refinance a hospital or 501(c)(3) corporation HB 50/a Page 3 project" means the issuance of bonds by a municipality and the h use of all or substantially all of the proceeds to liquidate u » r any obligations previously incurred to finance or aid in t h g e l i financing a project of [any ] a nonprofit corporation engaged in h r i s health care services, including nursing homes, or of [any ] a h , e h 501(c)(3) corporation, which would constitute a project under t u g e b l e e , gh the Industrial Revenue Bond Act had it been originally n d d i = = o h undertaken and financed by a municipality pursuant to the l ] b ,d i a º r Industrial Revenue Bond Act;

and e r = t e w d m a n o H.

"501(c)(3) corporation" means a corporation that ddemonstrates mto :the taxation and revenue department that it has been granted exemption from the federal income tax as an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended or renumbered." SECTION 2.

b r e t º o t n = .216331.1AIC February 9, 2020 (12:55pm) s k m e - 4 - e a n e d r e l u [ A d demonstrates to the taxation and revenue department that it has been granted exemption from the federal income tax as an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended or renumbered." SECTION 2.

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

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 HB 50/a Page 4 municipality;

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

and t u g e b l e e , gh (2) a municipality shall not acquire any n d d i = = o h electricity generation or transmission facility project unless lthe ]school bdistrict ,din iwhich a º r Hfl1º the acquisitionproject is approvedlocated bywill receive the localsame schoolamount, boardor greater, of eannual rin-lieu =tax tpayments eas wwould dhave mbeen areceived nin oproperty thetaxes schoolfor districtthe infully whichdeveloped [a] the project ishad located and the dproject mnot :been acquired;

b r e t º o t n = .216331.1AIC February 9, 2020 (12:55pm) s k m e - 5 - e a n e d r e l u [ A d governing body, the local school board and the person proposing the project negotiate and determine the amount of an annual in- lieu tax payment to be made to the school district by the person proposing the project, for the period that the municipality owns and leases the project, and provided such approval shall not be unreasonably withheld;»Hfl1 Hfl1ºthe school district in which the project is located will receive the same amount, or greater, of annual in-lieu tax payments as would have been received in property taxes for the fully developed project had the project not been acquired;»Hfl1 B.

to issue revenue bonds for the purpose of defraying the cost of acquiring by construction and purchase, h or either, any project and to secure the payment of such bonds, u » r all as provided in the Industrial Revenue Bond Act.

No t h g e l i municipality shall have the power to operate any project as a h r i s business or in any manner except as lessor;

h , e h D.

to refinance one or more hospital or 501(c)(3) tHB u50/a gPage e5 b l e e , gh corporation projects and to acquire any such hospital or n501(c)(3) dcorporation dproject iwhether =by =construction, opurchase, hgift or lease, which hospital or 501(c)(3) corporation project whethershall bybe construction,located lwithin ]this bstate ,dand imay abe ºlocated rwithin purchase,or giftwithout the municipality or lease,partially within or partially without the municipality, but which hospitalshall ornot 501(c)(3)be elocated rmore =than tfifteen emiles woutside dof mthe corporate limits of the municipality, and to issue revenue bonds to refinance and acquire a nhospital oor 501(c)(3) corporation project shalland beto locatedsecure withinthe thispayment stateof andsuch maybonds, dall mas :provided in the Industrial Revenue Bond Act.

b r e t º o t n = .216331.1AIC February 9, 2020 (12:55pm) s k m e - 6 - e a n e d r e l u [ A d 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.