SB 246 — PUBLIC IMPROVEMENT DISTRICT ACT CHANGES

b r e t º o t n = .217424.5AIC February 17, 2020 (2:52pm) s k m e - 4 - e a n be 24d I.r e l u [ A d SCORC/SB 246 replaced by elected directors, which shall occur not later than six years after the date on which the resolution establishing the district is enacted, as provided in Section 5-11-9 NMSA 1978];

"election"I. means an election held in compliance u [ with the provisions of Sections 5-11-6 and 5-11-7 NMSA 1978 and .217424.5 - 4 - SCORC/SB 246 pursuant to the provisions of the Local Election Act;

"election" means an election held in compliance with the provisions of Sections 5-11-6 and 5-11-7 NMSA 1978 and pursuant to the provisions of the Local Election Act;

"Enhanced services" does not include the basic operation and maintenance related to infrastructure improvements financed by the district pursuant h u to the Public Improvement District Act;

» r t h K.

"general plan" means the general plan described g e l i in Section 5-11-3 NMSA 1978, as the plan may be amended from h r i s h , time to time;

e h t u g L.

"governing body" means the body or board that by e b l e e , gh law is constituted as the governing body of the municipality or en ed 17d i = = o h l ] b ,d county [in which ] ordering formation of the [public ei ea nº dr 18e r = improvement] district [is located];

=t =e lw ]d 19m M.a n o d m :

"municipality"b means an incorporated city, town a l r ie 20 or village, [or town] whether incorporated under general act, t eº ao t specialn act,= special.217424.5AIC charterFebruary or17, territorial2020 charter,(2:52pm) buts doesk m m 21 e d- not5 mean- e a combinedn citye andd county corporation, an r e 22l cu e[ rA cd 23SCORC/SB incorporated246 countyM. or a single urban government;

e"municipality" means an incorporated city, town or village, [or town] whether incorporated under general act, special act, special charter or territorial charter, but does not mean a ncombined bcity 24and N.county corporation, an incorporated county or a single urban government;

N.

u [ (1) the person who is listed as the owner of .217424.5 - 5 - SCORC/SB 246 real property in the district on the current property tax assessment roll in effect at the time that the action, proceeding, hearing or election has begun.

Where record title is held in more than one name, each owner may vote the number of fractions of acres represented by the owner's legal interest or proportionate h share of and in the lands within the district;

g o (2) the administrator or executor of an estate t hr g e i k holding record title to land within the district;

h r i s (3) the guardian of a minor or incompetent h , t, person holding record title to land within the district, e u g e b l e e h appointed and qualified under the laws of the state;

n d d i = = o h (4) an officer of a corporation holding record el e] 17b ,d i a º e title to land within the district, which officer has been er i = r t e nw d 18 authorized by resolution of the corporation's board of =m =a ln ]o 19d directorsm to: act with respect to such land;

ab le rd is 20º (5)o thet generaln partner= of.217424.5AIC aFebruary partnership17, t2020 (2:52pm) s k m e - 6 - e a tn holdinge recordd titler e l u [ A d SCORC/SB 246 directors to landact withinwith therespect district;to such land;

m(5) m 21 e d (6) the trusteegeneral partner of a trustpartnership holding record r e 22 c e r c 23 title to land within the district;

or(6) e a n b 24 (7) the managertrustee or member of a limitedtrust u [ liability company holding record title to land within the .217424.5district; - 6 - SCORC/SB 246 district who has been authorized to represent the company;

or (7) the manager or member of a limited liability company holding record title to land within the district who has been authorized to represent the company;

Such improvements include h g necessary or incidental work, whether newly constructed, o t hr renovated or existing, and all necessary or desirable g e i k h r appurtenances.

i s h (1) sanitary sewage systems, including , t, e u g collection, transport, storage, treatment, dispersal, effluent e b l e e h use and discharge;

n d d i = = o h l ] b ,d (2) drainage and flood control systems, ei a º e 17r i = r including collection, transport, diversion, storage, detention, et e nw d 18m retention,a dispersal,n useo andd discharge;m :

=b =e ld ]s 19º (3)o watert systemsn for= domestic,.217424.5AIC commercial,February a17, l2020 r(2:52pm) is 20k office,m hotele or- motel,7 industrial,- irrigation, municipal or t e a tn firee protectiond purposes,r includinge production,l collection,u m[ mA 21 e d storage,SCORC/SB treatment,246 transport,retention, delivery,dispersal, connectionuse and rdischarge; e 22 c e r c 23 dispersal;

e(3) awater nsystems bfor 24domestic, (4)commercial, highways,office, streets,hotel roadways,or bridges,motel, uindustrial, [irrigation, crossingmunicipal structuresor andfire parkingprotection facilities,purposes, including allproduction, areascollection, .217424.5storage, -treatment, 7transport, -delivery, SCORC/SBconnection 246 for vehicular use for travel, ingress, egress and parking;dispersal;

(4) highways, streets, roadways, bridges, crossing structures and parking facilities, including all areas for vehicular use for travel, ingress, egress and parking;

(7) landscaping, including earthworks, h structures, lakes and other water features, plants, trees and g o related water delivery systems;

t hr g e i k (8) public buildings, public safety facilities h r i s and fire protection and police facilities;

h , t, (9) electrical generation, transmission and e u g e b l e e h distribution facilities;

n d d i = = o h (10) natural gas distribution facilities;

l ] b ,d i a º e (11) lighting systems;

er i = r t e 17w d (12) cable or other telecommunications lines em ea n o d 18m and: related equipment;

=b e d s º o t n = l.217424.5AIC ]February 1917, (13)2020 traffic(2:52pm) controls systemsk andm devices,e - 8 - e a ln e d r ie 20l includingu signals,[ controls,A markingsd SCORC/SB 246 and signage;related equipment;

t(13) etraffic acontrol tsystems (14) school sites and facilitiesdevices, withincluding thesignals, mcontrols, mmarkings 21and esignage; d consent of the governing board of the public school district r e 22 c e r c 23 for which the site or facility is to be acquired, constructed e a n b 24 or renovated;

u(14) [school (15)sites library and otherfacilities with the consent of the governing board of the public educationalschool district for which the site or .217424.5facility -is 8to -be SCORC/SBacquired, 246constructed culturalor facilities;renovated;

(15) library and other public educational or cultural facilities;

(1) planning, design, engineering, h g construction, acquisition or installation of public o t hr infrastructure, including the costs of applications, impact g e i k h r fees and other fees, permits and approvals related to the i s h construction, acquisition or installation of such , t, e u g infrastructure;

e b l e e h (2) acquiring, converting, renovating or n d d i = = o h l ] b ,d improving existing facilities for public infrastructure, i a º e r i = r including facilities owned, leased or installed by an owner;

et e 17w (3)d acquiringm interestsa in real property or e e n o d 18m water: rights for public infrastructure, including interests of = = l ] 19 an owner;

ab le rd is 20º (4)o establishing,t maintainingn and= replenishing.217424.5AIC tFebruary 17, 2020 (2:52pm) s k m e - 9 - e a tn reservese d r e l u [ A d SCORC/SB 246 (3) acquiring interests in orderreal toproperty secureor paymentwater ofrights debtfor servicepublic oninfrastructure, bonds;including interests of an owner;

m(4) mestablishing, 21maintaining e d (5) funding and payingreplenishing fromreserves bondin proceedsorder rto esecure 22payment cof edebt rservice c 23 interest accruing on bondsbonds; for a period not to exceed three e a n b 24 years from their date of issuance;

u(5) [ (6) funding and paying from bond proceeds .217424.5interest -accruing 9on - SCORC/SB 246 fiscal, financial and legal consultant fees, trustee fees, discount fees, district formation and election costs and all costs of issuance of bonds issued pursuant to the Public Improvement District Act, including fees and costs for bonda counsel,period financialnot advisors,to consultantsexceed andthree underwriters,years costsfrom oftheir obtainingdate credit ratings, bond insurance premiums, fees for letters of creditissuance; and other credit enhancement costs and printing costs;

(7)(6) providingfunding forand paying from bond proceeds fiscal, financial and legal consultant fees, trustee fees, discount fees, district formation and election costs and all costs of issuance of bonds issued pursuant to the timelyPublic paymentImprovement District Act, including fees and costs for bond counsel, financial advisors, consultants and underwriters, costs of debtobtaining servicecredit onratings, bondsbond orinsurance otherpremiums, indebtednessfees for letters of thecredit district;and other credit enhancement costs h and printing costs;

(8)g refinancingo any(7) outstandingproviding bondsfor withthe newtimely bonds,payment includingof throughdebt thet formationhr ofg ae newi publick improvementservice on bonds or other indebtedness of the district;

andh (9)r incurringi expensess of(8) therefinancing districtany incidentoutstanding tobonds andwith reasonablynew necessaryh to, carryt, outbonds, including through the purposesformation specifiedof ina thisnew subsection;public e u g e b l e e h improvement district;

and n d d i = = o h (9) incurring expenses of the district l ] b ,d i a º e incident to and reasonably necessary to carry out the purposes r i = r t e 17w R.d specified in this subsection;

"relatedm entities"a means two or more entities e e n o d 18m that: are owned in an amount greater than fifty percent by the = = l ] 19 same person, either directly or through one or more persons;

b e d s º o t n = .217424.5AIC February 17, 2020 (2:52pm) s k m e - 10 - e a ln e d r ie 20l S.u [ A d SCORC/SB 246 R.

"special"related levy"entities" means atwo levyor imposedmore againstentities real t e a t property within a district that mayare beowned apportionedin accordingan toamount mgreater mthan 21fifty epercent dby direct or indirect benefits conferred upon affected real r e 22 c e r c 23 property, as well as acreage, front footage, the costsame ofperson, eeither adirectly nor bthrough 24one providing public infrastructure for affected real property, or umore [persons; other reasonable method, as determined by the governing body .217424.5 - 10 - SCORC/SB 246 [or district board, as applicable ];

S.

"special levy" means a levy imposed against real property within a district that may be apportioned according to direct or indirect benefits conferred upon affected real property, as well as acreage, front footage, the cost of providing public infrastructure for affected real property, or other reasonable method, as determined by the governing body [or district board, as applicable ];

RESOLUTION DECLARING INTENTION TO FORM h u DISTRICT.-- » r t h A.

If the public convenience and necessity require, g e l i and on presentation of an application required by Section [10 h r i s h , of this 2013 act] 5-11-2.1 NMSA 1978 that is supported by a e h t u g petition signed by the owners of at least twenty-five percent e b l e e , gh of the real property by assessed valuation proposed to be n d d i = = o h l ] b ,d included in the district, the governing body may adopt a i a º r e r = resolution declaring its intention to form a public improvement districtt to include contiguous or noncontiguous property, which e ew 17d shallm bea wholly within the corporate boundaries of the e e n o d 18m municipality: or county.

Ifb ther governinge bodyt failsº too actt =n = l.217424.5AIC ]February 1917, within2020 ninety(2:52pm) dayss followingk presentationm ofe a- petition11 to- ae l r i 20 create a publicn improvemente district,d ther petitione shalll beu t[ eA ad tSCORC/SB deemed246 district to haveinclude beencontiguous acceptedor bynoncontiguous theproperty, governing body, which shall mbe mwholly 21within ethe dcorporate adoptboundaries aof resolutionthe andmunicipality holdor acounty. public hearing pursuant to this r e 22 c e r c 23 section.

If the governing body fails to act within ninety days following presentation of a petition to create a public improvement district, the petition shall be deemed to have been accepted by the governing body, which shall adopt a resolution and hold a public hearing pursuant to this section.

e a n b 24 (1) the area or areas to be included in the u [ district;

.217424.5 - 11 - SCORC/SB 246 (2) the purposes for which the district is to be formed;

(3) that a general plan for the district is on file with the clerk that includes a map depicting the boundaries of the district and the real property proposed to be included in the district, a general description of anticipated h improvements and their locations, general cost estimates, u » r proposed financing methods and anticipated tax levies, special t h g e levies or charges, and that may include possible alternatives, l i h r i s modifications or substitutions concerning locations, h , e h improvements, financing methods and other information provided t u g e b l in the general plan;

e e , gh n d d i = = o h (4) the rate, method of apportionment and l ] b ,d i a º r manner of collection of a special levy, if one is proposed, in e r = t e w d sufficient detail to enable each owner or resident within the districtm toa estimaten theo maximumd amountm of: the proposed levy;

eb r e 17t (5)º ao noticet ofn public= hearing.217424.5AIC inFebruary conformity17, 2020 (2:52pm) s k m e - 12 - e a n e d 18r withe l u [ A d SCORC/SB 246 district to estimate the requirementsmaximum amount of Sectionthe 5-11-4proposed NMSAlevy; 1978;

=(5) =a lnotice ]of 19public (6)hearing thein placeconformity wherewith written objections to the arequirements l r i 20 formation of theSection district5-11-4 mayNMSA be1978; filed by an owner;

t(6) e a t (7) that formation of the districtplace maywhere resultwritten mobjections m 21 e d in the levy of property taxes or the imposition of special r e 22 c e r c 23 levies to pay the costsformation of public infrastructure constructed by e a n b 24 the district and for their operation and maintenance and may ube [filed resultby inan theowner; assessment of fees or charges to pay the cost of .217424.5 - 12 - SCORC/SB 246 providing enhanced services;

(7) that formation of the district may result in the levy of property taxes or the imposition of special levies to pay the costs of public infrastructure constructed by the district and for their operation and maintenance and may result in the assessment of fees or charges to pay the cost of providing enhanced services;

and (9) whether the district board will be [governed by a district board comprised ] initially composed of the members of the governing body [ex officio ] or [comprised h g of] five directors [initially] appointed by the governing body.

o t hr B.

The resolution shall direct that a hearing on g e i k h r formation of the district be scheduled and that notice be i s h mailed and published as provided in Section 5-11-4 NMSA 1978.

, t, e u g C.

Before adopting a resolution pursuant to this e b l e e h section, a general plan for the district shall be filed with n d d i = = o h l ] b ,d the clerk." i a º e r i = r SECTION 3.

Section 5-11-6 NMSA 1978 (being Laws 2001, Chaptert 305,e Sectionw 6,d asm amended)a isn amendedo tod read:m :

b e d s º o t n = .217424.5AIC February 17, 2020 (2:52pm) s k m e - 13 - e a n e d r e l u [ A d SCORC/SB 246 Chapter 305, Section 6, as amended) is amended to read:

ORDER FORMING DISTRICT--[FORMATION e e 17 DETERMINATION] ELECTION PROCEDURES--FORMATION DETERMINATION.-- e e n d 18 A.

After the hearing, the governing body shall = = l ] 19 determine whether the district should be formed based upon the a l r i 20 interests, convenience or necessity of the owners, residents of t e a t the district and citizens of the municipality or county in m m 21 e d which the proposed district would be located.

If the governing r e 22 c e r c 23 body determines that the district should be formed, it shall e a n b 24 adopt a resolution ordering that the district be formed, u [ deleting any property determined not to be directly or .217424.5 - 13 - SCORC/SB 246 indirectly benefited by the district or modifying the general plan and then ordering that a formation determination be conducted and an election be held on the question whether to form the district.

A resolution ordering a formation of the district shall require the owners to authorize by determination h the issuance of general obligation bonds and that an election u » r be called to submit the question of imposing a property tax to t h g e pay debt service on the bonds pursuant to Section 5-11-19 NMSA l i h r i s 1978 to the qualified electors or declare that a special levy h , e h may be imposed in the district in compliance with Section t u g e b l 5-11-20 NMSA 1978 and set a maximum levy for each class of e e , gh n d d i = = o h property.

A resolution ordering a formation of the district l ] b ,d i a º r shall state that the district will be governed by a district boarde consistingr of= memberst ofe thew governingd bodyboard [exconsisting officio,of or,members upon determination of the governing body] or the five directors appointed [by the governing body ][ex pursuantofficio, tom Sectiona e e 17 5-11-9 NMSA 1978, and shall contain the names or titles of the e e n o d 18m five: initial directors [and the terms of office of each ].

Ifb =r e t º o t n = .217424.5AIC February 17, 2020 (2:52pm) s k m e - 14 - e a n e d r e l ]u 19[ A d SCORC/SB 246 or, upon determination of the governing body appoints] aor districtthe board,five itdirectors shallappointed appoint[by athe lgoverning rbody i] 20pursuant [a]to theSection initial5-11-9 treasurerNMSA 1978, and ashall clerkcontain fromthe names or titles of the appointedfive tinitial edirectors a[and tthe [members]terms directors.of office of each ].

mIf mthe 21governing ebody dappoints B.a district board, it shall appoint [a] the initial treasurer and a clerk from the appointed [members] directors.

Before submitting the question of formation of r e 22 c e r c 23 the district to the qualified electors of the proposed e a n b 24 district, a formation determination shall be conducted by the u [ governing body among the owners unless a petition is presented .217424.5 - 14 - SCORC/SB 246 to the governing body pursuant to Subsection F of Section 5-11-7 NMSA 1978.

[In the formation determination, each owner shall have the number of votes or portions of votes equal to the number of acres or portions of acres rounded upward to the nearest one-fifth of an acre owned by that owner in the submitted district.] C.

A formation or other determination shall not be a local election for purposes of the Local Election Act or a special election for purposes of the Special Election Act.

The governing body or the district board may establish local procedures for noticing, conducting and canvassing determinations, which may include determinations made by unanimous written approval of the owners in affidavits executed by the owners and confirmed in a review by the district board.

In a determination, each owner shall have one vote for each one-fifth of an acre located within the district rounded upward e e 17 to the nearest one-fifth of an acre.

e e n d 18 D.

Should the formation determination by the owners = = l ] 19 result in a three-fourths' majority vote in favor of formation, a l r i 20 the question shall also be submitted to a vote of the qualified t e a t electors of the proposed district.

The conduct of a formation m m 21 e d election by qualified electors shall meet the requirements of r e 22 c e r c 23 Section 5-11-7 NMSA 1978.

e a n b 24 E.

The right of the qualified electors to vote on u [ the question of formation of the district shall not be assigned .217424.5 - 15 - SCORC/SB 246 or delegated to the property owners, or related entities of the property owners, signing a petition submitted to the governing body for formation of a district." SECTION 4.

Section 5-11-7 NMSA 1978 (being Laws 2001, Chapter 305, Section 7, as amended) is amended to read:

"5-11-7.

NOTICE AND CONDUCT OF ELECTION--WAIVER.-- A.

[Any ] Except as otherwise provided by this section, an election by qualified electors pursuant to the Public Improvement District Act shall be a nonpartisan election called, conducted and canvassed pursuant to the provisions of the [Election Code ] Local Election Act.

InBefore additionsubmitting the question of formation of the district to thosethe mattersqualified requiredelectors forof noticethe asproposed provideddistrict, ina formation determination shall be conducted by the Localgoverning Electionbody Act,among the noticeowners unless a petition is presented to the governing body pursuant to Subsection F of electionSection shall5-11-7 state:NMSA 1978.

[In the formation determination, each owner shall have the number of votes or portions of votes equal to the number of acres or portions of acres rounded upward to the nearest one-fifth of an acre owned by that owner in the h g submitted district.] o t hr C.

A formation or other determination shall not be g e i k h r a local election for purposes of the Local Election Act or a i s h special election for purposes of the Special Election Act.

The , t, e u g governing body or the district board may establish local e b l e e h procedures for noticing, conducting and canvassing n d d i = = o h l ] b ,d determinations, which may include determinations made by i a º e r i = r unanimous written approval of the owners in affidavits executed t e w d m a n o d m :

b e d s º o t n = .217424.5AIC February 17, 2020 (2:52pm) s k m e - 15 - e a n e d r e l u [ A d SCORC/SB 246 by the owners and confirmed in a review by the district board.

In a determination, each owner shall have one vote for each one-fifth of an acre located within the district rounded upward to the nearest one-fifth of an acre.

D.

Should the formation determination by the owners result in a three-fourths' majority vote in favor of formation, the question shall also be submitted to a vote of the qualified electors of the proposed district.

The conduct of a formation election by qualified electors shall meet the requirements of Section 5-11-7 NMSA 1978.

E.

The right of the qualified electors to vote on the question of formation of the district shall not be assigned or delegated to the property owners, or related entities of the property owners, signing a petition submitted to the governing body for formation of a district." SECTION 4.

Section 5-11-7 NMSA 1978 (being Laws 2001, h Chapter 305, Section 7, as amended) is amended to read:

g o "5-11-7.

NOTICE AND CONDUCT OF ELECTION--WAIVER.-- t hr g e i k A.

[Any] Except as otherwise provided by this h r i s section, an election by qualified electors pursuant to the h , t, Public Improvement District Act shall be a nonpartisan election e u g e b l e e h called, conducted and canvassed pursuant to the provisions of n d d i = = o h the [Election Code ] Local Election Act.

l ] b ,d i a º e B.

In addition to those matters required for notice r i = r t e w d m a n o as provided in the Local Election Act, the notice of election d m :

b e d s º o t n = .217424.5AIC February 17, 2020 (2:52pm) s k m e - 16 - e a n e d r e l u [ A d SCORC/SB 246 shall state:

e e 17 (2) if the election is a bond election, the e e n d 18 amount of bonds to be authorized for the district, the maximum = = l ] 19 rate of interest to be paid on the bonds and the maximum term a l r i 20 of the bonds, not exceeding thirty years;

t e a t (3) if the election is a property tax levy m m 21 e d election pursuant to Section 5-11-19 NMSA 1978, the maximum tax r e 22 c e r c 23 rate per one thousand dollars ($1,000) of assessed valuation to e a n b 24 be imposed, the purposes for which the revenues raised will be u [ used and the existing maximum tax rate, if any;

.217424.5 - 16 - SCORC/SB 246 (4) that a general plan is on file with the clerk;

(5) the purposes for which the property taxes or the special levies will be imposed, and the revenues raised h u will be used, including a description of the public » r t h improvements to be financed with tax revenues, special levies, g e l i district revenues or bond proceeds;

and h r i s h , (6) that the imposition of property taxes or e h t u g special levies will result in a lien for the payment thereof on e b l e e , gh property within the district.

n d d i = = o h l ] b ,d [B.

The district board, or in the case of a formationi election,a theº governingr body,e shallr determine= theformation dateelection, of the electiongoverning bybody, passingshall adetermine resolution to place the ballott questione onw ad regularm local election or general election ballot or by adopting a proclamationn callingo ford am special: election.

b r e t º o t n = .217424.5AIC February 17, 2020 (2:52pm) s k m e - 17 C.- e a n e d r e l u [ A d SCORC/SB 246 date of the election by passing a resolution to place the ballot question on a regular local election or general election ballot or by adopting a proclamation calling for a special election.

Except as otherwise provided by this section, e e n d 18 the election shall comply with the Local Election Act.] = = l ] 19 C.

TheExcept ballotas materialotherwise provided toby eachthis qualifiedsection, athe lelection rshall icomply 20with electorthe shallLocal include:Election Act.] C.

tThe eballot amaterial tprovided (1)to foreach aqualified formationelector election,shall aninclude: impartial m m 21 e d description of the district improvements contemplated and a r e 22 c e r c 23 brief description of arguments for and against the formation of e a n b 24 the district, if any;

u(1) [ (2) for ana electionformation concerningelection, the imposition .217424.5 - 17 - SCORC/SB 246 of property taxes, an impartial description of the taxesdistrict toimprovements becontemplated imposed,and thea methodbrief description of apportionment,arguments collectionfor and enforcementagainst and other details sufficient to enable each elector to determine the amountformation of taxthe itdistrict, willif beany; obligated to pay;

a(2) brieffor an election concerning the imposition of property taxes, an impartial description of argumentsthe fortaxes andto againstbe imposed, the impositionmethod of taxesapportionment, thatcollection areand enforcement and other details sufficient to enable each elector h to determine the subjectamount of thetax election,it ifwill any;be obligated to pay;

and a statementu that» ther impositionbrief description of propertyarguments taxesfor isand foragainst the provisionimposition oft certainh butg note necessarilyof alltaxes public infrastructure improvements and services that mayare bethe neededsubject orof desirable within the district,election, andif thatany; other taxes, levies or assessments by other governmental entities may be presented for approval by owners and qualified electors;

and (3)a forl ai formationh election,r i s statement that the ballot,imposition whichof shallproperty posetaxes is for the questionh to, bee votedh uponprovision asof "district,certain yes"but not necessarily all public t u g e b l infrastructure improvements and "district,services no"that may be needed or e e , gh n d d i = = o h desirable within the district, and forthat other taxes, levies or l ] b ,d i a bondº election,r "bonds,assessments yes"by other governmental entities may be presented for e r = t e w d approval by owners and "bonds,qualified no";electors;

forand m a propertyn taxo election,d ifm no: tax is in e e 17 place, "property tax, yes" and "property tax, no";

andb forr ane t º o t n = .217424.5AIC February 17, 2020 (2:52pm) s k m e - 18 - e a n e d 18r electione tol changeu an[ existingA maximumd orSCORC/SB eliminate246 an(3) existingfor =a =formation lelection, ]the 19ballot, tax,which "taxshall change,pose yes"the andquestion "taxto change,be no",voted specifyingupon theas a"district, lyes" rand i"district, 20no" typeand offor taxa tobond whichelection, the"bonds, proposedyes" changeand pertains."bonds, no";

tfor e a tproperty D.tax election, if no tax is in place, "property tax, yes" and "property tax, no";

Atand leastfor aan three-fourths'election majorityto ofchange thean votesexisting mmaximum mor 21eliminate ean dexisting casttax, by"tax qualifiedchange, electorsyes" atand the"tax electionchange, shallno", bespecifying required r e 22 c e r c 23 for formation, issuing the bondstype orof imposing [the] a property e a n b 24 tax [orto specialwhich levy] or changing the taxproposed [orchange specialpertains. levy].

uD. [ Failure of a required majority to vote in favor of the matter .217424.5 - 18 - SCORC/SB 246 submitted shall not prejudice the submission of the same or similar matters at a later election.

At least a three-fourths' majority of the votes cast by qualified electors at the election shall be required for formation, issuing the bonds or imposing [the] a property tax [or special levy] or changing the tax [or special levy].

Failure of a required majority to vote in favor of the matter submitted shall not prejudice the submission of the same or similar matters at a later election.

If a person listed on the assessment roll is no h u longer the owner of land in the district and the name of the » r t h successor owner becomes known to the governing body or the g e l i district board, as applicable, and is verified by recorded deed h r i s h , or other similar evidence of transfer of ownership, the e h t u g successor owner is deemed to be the owner for the purposes of e b l e e , gh the Public Improvement District Act.

n d d i = = o h l ] b ,d F.

Notwithstanding any other provision of the i a º r e r = Public Improvement District Act, if a petition for formation is signedt bye ownersw ofd allm ofa then lando ind them district: described in the petition and is approved by the municipality or county, the municipality or county may waive any or all requirements of posting, publication, mailing, notice, hearing and owner determination.

Onb receiptr ofe sucht aº petition,o andt aftern e= e.217424.5AIC 17February approval17, by2020 an(2:52pm) elections ofk qualifiedm electors,e if- any,19 the- e ea n e d 18r municipalitye orl countyu shall[ declareA thed districtSCORC/SB formed246 =signed =by lowners ]of 19all withoutof beingthe requiredland toin complythe withdistrict described in the provisionspetition ofand is approved by the amunicipality lor rcounty, ithe 20municipality Publicor Improvementcounty Districtmay Actwaive forany posting,or publication,all trequirements eof aposting, tpublication, mailing, notice, hearing orand owner determination.

mOn mreceipt 21of esuch da G.petition, and after approval by an election of qualified electors, if any, the municipality or county shall declare the district formed without being required to comply with the provisions of the Public Improvement District Act for posting, publication, mailing, notice, hearing or owner determination.

IfG. no person is registered to vote within the r e 22 c e r c 23 district or proposed district areas within [seventy ] sixty- e a n b 24 three days immediately preceding any scheduled election date, u [ the election required to be held pursuant to the Public .217424.5 - 19 - SCORC/SB 246 Improvement District Act shall be canceled and the determination made by the owners of land in the district or proposed district areas shall prevail.

UnderIf suchno circumstances,person whenis theregistered questionto isvote onwithin the formationdistrict ofor theproposed district,district theareas resultswithin of[seventy ] sixty- three days immediately preceding any scheduled election date, the formationelection determinationrequired ofto be held pursuant to the ownersPublic Improvement District Act shall prevail,be unlesscanceled and the formation determination wasmade waived by the governingowners bodyof pursuantland toin Subsectionthe Fdistrict ofor thish section.proposed district areas shall prevail.

ToUnder thesuch extentu allowable» byr thecircumstances, constitution of New Mexico, when the question is on anythe otherformation allowableof actionthe otherwiset requiringh ag votee ofdistrict, the qualifiedresults electors,of the ownersformation ordetermination of the l i h r i s owners ofshall prevail, unless the proposedformation districtdetermination areaswas shallh make, ae determination,h waived by the resultgoverning body pursuant to Subsection F of whichthis shallt prevail."u SECTIONg 5.e b l section.

To the extent allowable by the constitution of New e e , gh n d d i = = o h Mexico, when the question is on any other allowable action l ] b ,d i a º r otherwise requiring a vote of the qualified electors, the e r = t e w d owners or the owners of the proposed district areas shall make m a n o d m :

b r e t º o t n = .217424.5AIC February 17, 2020 (2:52pm) s k m e - 20 - e a n e d r e l u [ A d SCORC/SB 246 a determination, the result of which shall prevail." SECTION 5.

POSTING OF NOTICES.--For any election conducted pursuant to the Public Improvement District Act, in e e 17 addition to the notice requirements set forth in Section 5-11-7 e e n d 18 NMSA 1978, the [owners ] district board shall ensure that = = l ] 19 notices shall be posted in three conspicuous public places a l r i 20 within the boundaries of the district not less than twenty days t e a t before the first day for voting in the election." m m 21 e d SECTION 6.

Section 5-11-8 NMSA 1978 (being Laws 2001, r e 22 c e r c 23 Chapter 305, Section 8, as amended) is amended to read:

e a n b 24 "5-11-8.

FORMATION--DEBT LIMITATION.-- u [ A.

If [the formation of the ] a district is .217424.5 - 20 - SCORC/SB 246 [approved by at least a three-fourths' majority of the votes cast at the election] formed pursuant to Section 5-11-7 NMSA h g 1978, the governing body shall cause a copy of the resolution o t hr ordering formation of the district to be delivered to the g e i k h r county assessor and the county treasurer and shall be recorded i s h by the county clerk for the county in which the district is , t, e u g located and to the taxation and revenue department and the e b l e e h n d d i local government division of the department of finance and = = o h l ] b ,d administration.

A notice of the formation showing the number i a º e r i = r and date of the resolution and giving a description of the land includedt ine thew districtd shallm bea recordedn witho thed countym clerk.:

b e d s º o t n = .217424.5AIC February 17, 2020 (2:52pm) s k m e - 21 - e a n e d r e l u [ A d SCORC/SB 246 included in the district shall be recorded with the county clerk.

The amount of indebtedness evidenced by general obligation bonds issued e e 17 pursuant to Section 5-11-19 NMSA 1978, special levy bonds e e n d 18 issued pursuant to Section 5-11-20 NMSA 1978 and revenue bonds = = l ] 19 issued pursuant to Section 5-11-21 NMSA 1978 shall not exceed a l r i 20 the estimated cost of the public infrastructure improvements t e a t plus all costs connected with the public infrastructure m m 21 e d purposes and issuance and sale of bonds, including, without r e 22 c e r c 23 limitation, formation costs, credit enhancement and liquidity e a n b 24 support fees and costs.

The total aggregate outstanding amount u [ of bonds and any other indebtedness for which the full faith .217424.5 - 21 - SCORC/SB 246 and credit of the district are pledged shall not exceed sixty h percent of the market value of the real property and u » r improvements in the district after the public infrastructure t h g e improvements of the district are completed plus the value of l i h r i s the public infrastructure owned or to be acquired by the h , e h district with the proceeds of the bonds and shall not affect t u g e b l the general obligation bonding capacity of the municipality or e e , gh n d d i = = o h county in which the district is located.

l ] b ,d i a º r C.

Bonds issued by a district shall not be a generale obligationr of= thet state,e thew countyd orgeneral theobligation municipality in which the district is located and shall not pledge the full faith and credit of the state, the county or the municipality inm whicha then districto isd locatedm [irrespective: of whether the district board is governed by the governing body of the county or municipality in which the district is located].

b r e t º o t n = .217424.5AIC February 17, 2020 (2:52pm) s k m e - 22 - e a n e d r e l u [ A d SCORC/SB 246 in which the district is located and shall not pledge the full faith and credit of the state, the county or the municipality in which the district is located [irrespective of whether the district board is governed by the governing body of the county or municipality in which the district is located].

Following formation of the district, the e e 17 district board shall administer in a reasonable manner the e e n d 18 implementation of the general plan for the public = = l ] 19 infrastructure improvements of the district." a l r i 20 SECTION 7.

Section 5-11-9 NMSA 1978 (being Laws 2001, t e a t Chapter 305, Section 9, as amended) is amended to read:

m m 21 e d "5-11-9.

APPOINTMENT OF DIRECTORS--[QUALIFICATIONS ] r e 22 c e r c 23 TERMS--RESUMPTION OF GOVERNANCE BY GOVERNING BODY.-- e a n b 24 A.

The governing body, at its option, may u [ [authorize the appointment of a separate district board.

In .217424.5 - 22 - SCORC/SB 246 the case of an appointed district board, three of the appointed h g directors shall serve an initial term to expire following a o t hr regular local election and not to exceed six years.

Two of the g e i k h r appointed directors shall serve an initial term to expire i s h following a regular local election and not to exceed four , t, e u g years.

The resolution forming the district shall state which e b l e e h directors shall serve the longer terms and which shall serve n d d i = = o h l ] b ,d the shorter terms] appoint itself as the district board or i a º e r i = r appoint a separate district board consisting of five directors.

Thet appointede membersw ofd them districta boardn shallo served five-m year: terms.

b e d s º o t n = .217424.5AIC February 17, 2020 (2:52pm) s k m e - 23 - e a n e d r e l u [ A d SCORC/SB 246 The appointed members of the district board shall serve five- year terms.

e e 17 B.

At the end of [the appointed directors' terms ] e e n d 18 each five-year term , the governing body shall [resume = = l ] 19 governance of the district as its board either directly or a l r i 20 through the governing body's designees or, at the governing t e a t body's option, shall hold an election of new directors by m m 21 e d majority vote of the qualified electors or if the election is r e 22 c e r c 23 canceled pursuant to Subsection G of Section 5-11-7 NMSA 1978, e a n b 24 an owner's determination conducted by ballot shall decide the u [ new] appoint itself as the district board or shall appoint .217424.5h - 23 - SCORC/SB 246 directors pursuant to Subsection A of this sectionsection." ."g o SECTION 8.

Section 5-11-10 NMSA 1978 (being Laws 2001, t hr g e i k Chapter 305, Section 10) is amended to read:

h r i s "5-11-10.

POWERS OF A PUBLIC IMPROVEMENT DISTRICT h , t, BOARD.-- e u g e b l e e h A.

In addition to the powers otherwise granted to a n d d i = = o h district board pursuant to the Public Improvement District Act, l ] b ,d i a º e the district board, in implementing the general plan, may:

r i = r t e w d m a n o (1) enter into contracts and expend money for anyd publicm infrastructure: purpose with respect to the district;

b e d s º o t n = .217424.5AIC February 17, 2020 (2:52pm) s k m e - 24 - e a n e d r e l u [ A d SCORC/SB 246 any public infrastructure purpose with respect to the district;

(3) enter into intergovernmental agreements as provided in the Joint Powers Agreements Act for the planning, e e 17 design, inspection, ownership, control, maintenance, operation e e n d 18 or repair of public infrastructure or the provision of enhanced = = l ] 19 services by the municipality or the county in the district and a l r i 20 any other purpose authorized by the Public Improvement District t e a t Act;

m m 21 e d (4) sell, lease or otherwise dispose of r e 22 c e r c 23 district property if the sale, lease or conveyance is not a e a n b 24 violation of the terms of any contract or bond covenant of the u [ district;

.217424.5h -u 24 - SCORC/SB 246 (5) reimburse the municipality or county in » r t h which the district is located for providing enhanced services g e l i in the district;

h r i s h , (6) operate, maintain and repair public e h t u g infrastructure;

e b l e e , gh [(7) establish, impose and collect special n d d i = = o h l ] b ,d levies for the purposes of funding public infrastructure i a º r e r = improvements or enhanced services;

(8)]t (7)e employw staff,d counselm anda consultants;n o d m :

b r e t º o t n = .217424.5AIC February 17, 2020 (2:52pm) s k m e - 25 - e a n e d r e l u [ A d SCORC/SB 246 (8)] (7) employ staff, counsel and consultants;

e e 17 [(11)] (10) enter into agreements with owners e e n d 18 concerning the advance of money by owners for public = = l ] 19 infrastructure purposes or the granting of real property by the a l r i 20 owner for public infrastructure purposes;

t e a t [(12) levy property taxes ] (11) impose m m 21 e d [special levies or ] fees and charges for any public r e 22 c e r c 23 infrastructure purpose on any real property located in the e a n b 24 district and, in conjunction with the [levy ] imposition of such uh [ [taxes] fees and charges, set and collect administrative fees;

.217424.5g -o 25 - SCORC/SB 246 [(13)] (12) pay the financial, legal and t hr g e i k administrative costs of the district;

h r i s [(14)] (13) enter into contracts, agreements h , t, and trust indentures to obtain credit enhancement or liquidity e u g e b l e e h support for its bonds and process the issuance, registration, n d d i = = o h transfer and payment of its bonds and the disbursement and l ] b ,d i a º e investment of proceeds of the bonds;

[(15)]r (14)i with= ther consentt ofe thew governingd body[(15)] of(14) thewith municipality or county that formed the district,consent enter into agreements with persons outside of the districtgoverning tom providea enhancedn serviceso tod personsm and: property outside of the district;

[andb (16)]e (15)d uses publicº easementso andt rightsn of= way.217424.5AIC inFebruary or17, across2020 public(2:52pm) property,s roadways,k highways,m streetse or- other26 thoroughfares- ande othera publicn easementse andd rightsr ofe way,l whetheru in[ orA outd SCORC/SB 246 body of the geographicalmunicipality limitsor ofcounty that formed the edistrict, eenter 17into district,agreements with persons outside of the municipalitydistrict orto provide enhanced services to persons and property outside of the county;district;

and[and e(16)] e(15) nuse dpublic 18easements (16)and withinrights sixty days of deliveringway writtenin =or =across lpublic ]property, 19roadways, noticehighways, tostreets theor governingother bodythoroughfares thatand formedother thepublic district,easements exerciseand arights lof rway, iwhether 20in theor powerout of eminentthe domaingeographical aslimits providedof bythe lawdistrict, and to carry out t e a t the purposesmunicipality ofor the Publiccounty; Improvement District Act.

mand mSflº(16) 21within esixty ddays B.of delivering written notice to the governing body that formed the district, exercise the power of eminent domain as provided by law and to carry out the purposes of the Public Improvement District Act.»Sfl Sflº (16) exercise the power of eminent domain as provided by law and subject to the limitations of Subsection h u B of this section and the requirements of Subsection C of this » r t h section.

Publicg infrastructure improvements other than r e 22l ci eh r cB. 23 personalty may be located only in or on lands, easements or e a n b 24 rights of way owned by the state, a county, a municipality or u [ the district, whether in or out of the district, the .217424.5 - 26 - SCORC/SB 246 municipality or the county.

C.A district board may exercise the power of i s h , eminent domain on property located in a district solely for e h t u g purposes of carrying out the purposes of the Public Improvement e b l e e , gh n d d i District Act;

Anprovided agreementthat pursuantthe todistrict Paragraphboard's [(11)power ] (10) of Subsection= A= ofo thish sectionl may] includeb agreements,d toeminent repaydomain allshall ornot partexceed of such advances, fees and charges from the proceedspower of bondseminent ifdomain issuedi ora fromº advances,r feese andr charges= collectedheld fromby otherthe ownersgoverning orbody. users or those having a right to use any public infrastructure.

t e w d m a n o d m :

b r e t º o t n = .217424.5AIC February 17, 2020 (2:52pm) s k m e - 27 - e a n e d r e l u [ A d SCORC/SB 246 C.

If a district board determines to exercise the power of eminent domain on property within a district, the district board shall request the governing body to hold a hearing to determine whether the power of eminent domain should be exercised.

The request shall identify the location of the property on which the power will be exercised and the reason the power should be exercised.

Upon receipt of the request, the governing body shall promptly hold a hearing to determine whether the power of eminent domain should be exercised on the property identified in the request.

If the governing body determines the power should be exercised, the governing body shall, by resolution, approve the exercise of the power of eminent domain on the identified property and transmit a certified copy of the resolution to the district board.

Upon receipt of the certified copy of the resolution, the district board may proceed with exercising the power of eminent domain h g on the specified property.»Sfl o t hr Sflº B.»Sfl SflºD.»Sfl Public infrastructure g e i k improvements other than personalty may be located only in or on h r i s h lands, easements or rights of way owned by the state, a county, , t, e u g a municipality or the district, whether in or out of the e b l e e h district, the municipality or the county.

n d d i = = o h Sflº C.»Sfl SflºE.»Sfl An agreement pursuant to l ] b ,d i a º e r i = r Paragraph [(11)] (10) of Subsection A of this section may t e w d m a n o include agreements to repay all or part of such advances, fees d m :

b e d s º o t n = .217424.5AIC February 17, 2020 (2:52pm) s k m e - 28 - e a n e d r e l u [ A d SCORC/SB 246 and charges from the proceeds of bonds if issued or from advances, fees and charges collected from other owners or users or those having a right to use any public infrastructure.

Notwithstanding the provisions of the Procurement Code, or local procurement requirements that may otherwise be applicable to the municipality or county in which the district is located, the district board, whether appointed or composed of members of the governing body, ex officio, may enter into contracts to carry out any of the district's e e 17 authorized powers, including the planning, design, engineering, e e n d 18 financing, construction and acquisition of public improvements = = l ] 19 for the district, with a contractor, an owner or other person a l r i 20 or entity, on such terms and with such persons as the district th eu aboard determines to be appropriate.] SJCº"»SJC » r t h SJCºSflº D.»Sfl SflºF.»Sfl The district board determinesis g e l i subject to bethe appropriate.]"Procurement mCode, mor 21a local procurement code h r i s h , adopted by the governing body, as applicable, for public e dh t u g procurement."»SJC e b l e e , gh SECTION 9.

Section 5-11-19 NMSA 1978 (being Laws 2001, rn ed 22d ci e= r= co 23h l ] b ,d Chapter 305, Section 19, as amended) is repealed and a new ei a nº br 24e r = Section 5-11-19 NMSA 1978 is enacted to read:

ut [e "5-11-19.w d m a n o d m :

[NEWb MATERIALr ]e GENERALt OBLIGATIONº BONDS--o .217424.5t n = .217424.5AIC February 17, 2020 (2:52pm) s k m e - 2729 - SCORC/SBe 246a PROPERTYn TAXe LEVY.--d A.r e l u [ A d SCORC/SB 246 "5-11-19.

[NEW MATERIAL ] GENERAL OBLIGATION BONDS-- PROPERTY TAX LEVY.-- A.

Upon receipt of a request to call an election pursuant to Subsection A of this section, the governing body shall promptly hold a hearing to determine whether the election h should be called.

If the governing body determines an election eg eo 17 should be called, the governing body shall hold an election on et ehr ng de 18i k the question of imposing a property tax on property in the =h =r li ]s 19 district pursuant to Section 5-11-7 NMSA 1978.

If the required ah l, rt, i 20 majority votes in favor of the matter, the governing body te u g e ab tl e e h shall, subject to the limitation provided in Subsection C of mn md 21d ei d= = o h this section, levy and cause the property tax to be collected, rl e] 22b c,d ei ra cº 23e at the same time and in the same manner as other property taxes er ai n= br 24t e w d are levied and collected on taxable property in the district, um [a togethern witho anyd moneym from: the sources described in Section .217424.5 - 28 - SCORC/SB 246 5-11-17 NMSA 1978 to pay debt service on the bonds when due.

b e d s º o t n = .217424.5AIC February 17, 2020 (2:52pm) s k m e - 30 - e a n e d r e l u [ A d SCORC/SB 246 together with any money from the sources described in Section 5-11-17 NMSA 1978 to pay debt service on the bonds when due.

The h u proceeds of any foreclosure sale shall be deposited in the e» er 17t h special bond fund for payment of any obligations secured eg e nl di 18 thereby.

=h =r li ]s 19h , C.

All property taxes for the operation and ae lh rt iu 20g maintenance expenses of the district shall not exceed an amount te b l e ae t, gh equal to three dollars ($3.00) per one thousand dollars mn md 21d ei d= = o h l ] b ,d ($1,000) of net taxable value for all real and personal ri ea 22º cr e r c= 23 property in the district.

The rate of a property tax shall t e aw nd bm 24 remain in effect until increased or decreased at a subsequentn uo [d election;m :

providedb thatr upone presentationt ofº ao petitiont signedn .217424.5= -.217424.5AIC 29February -17, SCORC/SB2020 246(2:52pm) bys thek ownersm ofe a- majority31 of- thee property in the district, the governing body shall adopt a resolutionn toe reduced orr eliminatee thel portionu of[ theA propertyd tax,SCORC/SB beginning246 theremain nextin fiscaleffect year,until requiredincreased for one or moredecreased servicesat ora enhancedsubsequent serviceselection; specified in the petition.

provided that upon presentation of a petition signed by the owners of a majority of the property in the district, the governing body shall adopt a resolution to reduce or eliminate the portion of the property tax, beginning the next fiscal year, required for one or more services or enhanced services specified in the petition.

provided that the district board shall have determined by resolution that the principal amount of all district general obligation bonds currently outstanding and the district general obligation bonds proposed for issuance and sale shall not result in a total annual debt service that h exceeds five-tenths percent of the allowable base.

After the u » r bonds are issued, the district board shall enter in its minutes et eh 17g e a record of the bonds sold and their numbers and dates.

el ei nh dr 18i s E.

Bonds may be sold in a public offering or in a =h =, le ]h 19 negotiated sale.

at lu rg ie 20b l F.

Subject to the determination and election te e a, tgh n d d i = = o h provisions of this section, a district may issue general ml m] 21b e,d di a º r obligation bonds at such times and in such amounts as the r e 22r c= t e rw cd 23 district deems appropriate to carry out a project or projects em a n bo 24d inm phases.:

b r e t º o t n = .217424.5AIC February 17, 2020 (2:52pm) s k m e - 32 - e a n e d r e l u [ G.A d SCORC/SB 246 in phases.

PursuantG. to this section, the district may issue .217424.5 - 30 - SCORC/SB 246 and sell refunding bonds to refund general obligation bonds of the district authorized by the Public Improvement District Act.

Pursuant to this section, the district may issue and sell refunding bonds to refund general obligation bonds of the district authorized by the Public Improvement District Act.

A district board may determine that special levy bonds should be issued to provide money for any public h g infrastructure purpose consistent with the general plan.

If o t hr such determination is made, the district board shall request eg e 17i k h r the governing body to impose a special levy.

Included with the ei es nh d 18 request, the district board shall specify conditions under =, =t, le ]u 19g which the obligation to pay special levies may be prepaid and ae b l re ie 20h permanently satisfied.

tn ed ad ti = = o h l ] b ,d B.

Upon receipt of a request to impose a special mi ma 21º e dr i = r levy pursuant to Subsection A of this section, the governing rt e 22w cd em r c 23 body shall promptly hold a hearing to determine whether the e a n bo 24d specialm levy: should be imposed.

Ifb thee governingd bodys uº [o determinest then special= levy.217424.5AIC shouldFebruary be17, imposed,2020 the(2:52pm) governings .217424.5k -m 31e - SCORC/SB33 246- bodye shall, by resolution and subject to the limitations provided in Subsection D of this section, set a maximumn levye ford eachr classe ofl propertyu that[ mayA bed imposedSCORC/SB for246 debtbody serviceshall onpromptly specialhold levya bondshearing andto imposedetermine andwhether cause the special levy toshould be collected,imposed. at the same time and in the same manner as property taxes are levied and collected on all property within the district that may be subject to the levy, including all leased property or improvements to leased land, together with any other money lawfully available to pay debt service on the bonds when due, except to the extent that the district board has provided for other imposition, collection and foreclosure procedures in connection with special levies.

MoneyIf derivedthe fromgoverning body determines the impositionspecial levy should be imposed, the governing body shall, by resolution and subject to the limitations provided in Subsection D of this section, set a maximum levy for each class of property that may be imposed for debt service on special levy bonds and impose and cause the special levy whento be collected, at the same time and in the same manner as property taxes are levied and collected on all property within the district that ismay pledgedbe subject to pay the levy, including all leased property or improvements to leased land, together with any other money lawfully available to pay debt service on the bonds shallwhen bedue, keptexcept separatelyto fromthe extent that the district board has provided for other fundsimposition, ofcollection theand district.foreclosure procedures in connection with special levies.

SpecialMoney levyderived revenuesfrom notthe pledgedimposition toof paythe debtspecial servicelevy onwhen bondscollected maythat beis usedh epledged e 17 to pay other costs of the district,debt includingservice costson ofthe ebonds eshall nbe dkept 18u formation,» administration,r operationseparately andfrom maintenance,other servicefunds =of =the ldistrict. ] 19 or enhanced services.

aSpecial levy t h g e revenues not pledged to pay debt service on bonds may be used l i h r i 20s C.to pay other costs of the district, including costs of h , e h formation, administration, operation and maintenance, service t u g e b l or enhanced services.

Oncee approved by resolution of the governing t e a, tgh body,n thed rate of a special levy shall remain in effect until m m 21 e d increasedi or= decreased= byo resolutionh ofC. the governing body at a r e 22 c e r c 23 subsequent hearing.

UponOnce presentationapproved ofby aresolution petitionof signedthe bygoverning el a] n b 24,d thei owners of a majorityº ofr thebody, property in the district,rate theof ua [special governinglevy body shall adoptremain ain resolutioneffect tountil reducee orr eliminate= .217424.5t -e 32w -d SCORC/SBincreased 246or thedecreased portionby resolution of the specialgoverning levy,body beginningat thea nextm fiscala year,n requiredo ford onem or: more services or enhanced services specified in the petition.

b r e t º o t n = .217424.5AIC February 17, 2020 (2:52pm) s k m e - 34 - e a n e d r e l u [ A d SCORC/SB 246 subsequent hearing.

Upon presentation of a petition signed by the owners of a majority of the property in the district, the governing body shall adopt a resolution to reduce or eliminate the portion of the special levy, beginning the next fiscal year, required for one or more services or enhanced services specified in the petition.

(1) the amount of special levy that may be imposed shall not be increased over time by an amount exceeding two percent per year, except that the amount of special levy actually imposed may be increased by up to ten percent as a result of the delinquency or default by the owner of any other h u parcel within the district, but in no case shall the amount of » r t h the special levy imposed exceed the maximum special levy g e l i provided in the rate and method of apportionment;

eh er 17i s h , (2) the special levy shall be imposed for a e eh nt du 18g specified time period, after which no further special levy =e =b l ]e 19e , gh shall be imposed and collected, except that special levies an ld rd i 20= = o h l ] b ,d imposed solely to finance the cost of ongoing district ti a º r e ar t= services, maintenance or operations or enhanced services may be mt m 21 e w d leviedm whilea suchn services,o maintenanced orm operations: or r e 22 c e r c 23 enhanced services are continuing;

andb r e at nº bo 24t (3)n nothing= in.217424.5AIC thisFebruary subsection17, shall2020 preclude(2:52pm) us [k them establishmente of- different35 categories- ofe residentiala .217424.5n -e 33d -r SCORC/SBe 246l propertyu or[ changingA thed amountSCORC/SB of246 thelevied specialwhile leviessuch forservices, amaintenance parcelor whoseoperations size or useenhanced isservices changed.are continuing;

and (3) nothing in this subsection shall preclude the establishment of different categories of residential property or changing the amount of the special levies for a parcel whose size or use is changed.

The imposition of a special levy shall constitute a lien on the property within the district subject to the special levy, including property acquired by the state h or its political subdivisions after imposition of the special u » r levy, which shall be effective during the period in which the t h g e special levy is imposed and shall have priority co-equal to the l i h r i s lien of property taxes.

A special levy shall be subject to eh , e 17h foreclosure by the district at any time after six months et eu ng de 18b l following written notice of delinquency to the owner of the e e , gh n d d i = = lo ]h 19 real property to which the delinquency applies.

The lien shall a l r] b ,d i 20a º r include delinquencies, penalties and interest thereon at a rate e r = t e aw td not to exceed the maximum legal rate of interest per year and m m 21 e d penalties otherwise applicable for delinquent property taxes, r e 22 c e r c 23 the district's actual costs of foreclosure and any other costs e a n bo 24d ofm the: district resulting from the delinquency.

Allb rightsr ofe ut [º redemptiono applicablet ton property= sold.217424.5AIC inFebruary connection17, with2020 .217424.5(2:52pm) s k m e - 3436 - SCORC/SBe 246a propertyn taxe foreclosuresd pursuantr toe thel lawsu of[ thisA stated shallSCORC/SB apply246 topenalties otherwise applicable for delinquent property soldtaxes, followingthe district's actual costs of foreclosure and any other costs of athe specialdistrict levyresulting lien.from the delinquency.

All rights of redemption applicable to property sold in connection with property tax foreclosures pursuant to the laws of this state shall apply to property sold following foreclosure of a special levy lien.

Unless a local government has enacted an h u ordinance providing a greater limitation, no special levy bonds » r t h may be issued if at the time of issuance of such bonds the g e l i estimated total tax and assessment obligation for a class of h r i s h , property, including projected ad valorem taxes and special e eh 17t u g levies as provided in the feasibility study, exceeds one and e b l e ne d, 18gh ninety-five hundredths percent of the anticipated, average n d d i = = o h l ] 19b ,d market value of each class of property at the time of issuance i a lº r ie 20r = of a certificate of occupancy as determined by a member t e aw td appraiserm ofa then appraisalo institute.d m :

mb r e t º o t n = .217424.5AIC February 17, 2020 (2:52pm) s k m 21e - 37 - e a n e d H.r e l u [ A d SCORC/SB 246 appraiser of the appraisal institute.

SpecialH. levy bonds may be sold in a public r e 22 c e r c 23 offering or in a negotiated sale.

eSpecial levy bonds may be sold in a npublic boffering 24or I.in a negotiated sale.

NoI. holder of special levy bonds issued pursuant u [ to the Public Improvement District Act may compel any exercise .217424.5 - 35 - SCORC/SB 246 of the taxing power of the district, municipality or county to pay the bonds or the interest on the bonds.

No holder of special levy bonds issued pursuant to the Public Improvement District Act may compel any exercise of the taxing power of the district, municipality or county to pay the bonds or the interest on the bonds.

Pursuant to this section, the district may issue h and sell refunding bonds to refund any special levy bonds of g o the district authorized by the Public Improvement District Act.

t hr g e i k Refunding bonds issued pursuant to this section shall have a h r i s final maturity date no later than the final maturity date of h , t, the bonds being refunded." e u g e 17b l e e h SECTION 11.

Section 5-11-23 NMSA 1978 (being Laws 2001, e e n d 18d i = = o h Chapter 305, Section 23, as amended) is amended to read:

= = l ] 19b ,d i a º e "5-11-23.

[DISTRICT TAXES ] ANNUAL FINANCIAL a l r i 20= ESTIMATE--ANNUALr FINANCIALt ESTIMATEe ANDw BUDGET--CERTIFICATIONd tm e a tn TOo LOCALESTIMATE--ANNUAL GOVERNMENTFINANCIAL DIVISIONESTIMATE AND GOVERNINGBUDGET--CERTIFICATION BODYd .-- m m: 21 e d A.

[Allb propertye taxesd fors theº operationo andt rn e= 22.217424.5AIC cFebruary e17, r2020 c(2:52pm) 23s maintenancek expensesm ofe the- district38 shall- not exceed an amount e a n be 24d equalr toe threel dollars ($3.00) per one thousand dollars u [ ($1,000)A ofd net taxable value for all real and personal .217424.5 - 36 - SCORC/SB 246 propertyTO inLOCAL theGOVERNMENT district,DIVISION unlessAND aGOVERNING higherBODY rate.-- isA. approved by a vote of the qualified electors voting at an election conducted pursuant to the provisions of the Local Election Act not less than three years after the date of the formation of the district.

[All property taxes for the operation and maintenance expenses of the district shall not exceed an amount equal to three dollars ($3.00) per one thousand dollars ($1,000) of net taxable value for all real and personal property in the district, unless a higher rate is approved by a vote of the qualified electors voting at an election conducted pursuant to the provisions of the Local Election Act not less than three years after the date of the formation of the district.

Once approved at an election or, in the case of a special levy, by resolution of the district board, the maximum rate of a property tax shall remain in effect until increased or decreased at a subsequent election, and the maximum rate of a special levy shall remain in effect until increased or decreased by resolution of the district board at a h u subsequent hearing.

» r t h C.

If a maximum property tax rate is in effect, the g e l i district board, on petition of twenty-five percent of the h r i s h , qualified electors, or by the owners of twenty-five percent of e h t u g the land area of the district, shall call an election pursuant e b l e 17e , gh to the provisions of the Local Election Act to reduce the e e n d 18d i = = o h l ] b ,d maximum tax rate but not below the lesser of that rate =i =a lº ]r 19e r = determined by the district board to be necessary to maintain a l r i 20 the district's facilities and improvements where the tax was t e aw td authorized for operation and maintenance, or the actual rate m m 21 e d then in effect, but in no event shall the rate be reduced below r e 22 c e r c 23 the rate necessary to satisfy the district's obligations in e a n bo 24d connectionm with: any outstanding bonds issued pursuant to the u [ Public Improvement District Act.

.217424.5b r e t º o t n = .217424.5AIC February 17, 2020 (2:52pm) s k m e - 3739 - e a n e d r e l u [ A d SCORC/SB 246 D.the district's facilities and improvements where the tax was authorized for operation and maintenance, or the actual rate then in effect, but in no event shall the rate be reduced below the rate necessary to satisfy the district's obligations in connection with any outstanding bonds issued pursuant to the Public Improvement District Act.

IfD. a maximum special levy is in effect, the district board, on petition of twenty-five percent of the qualified electors, or by the owners of twenty-five percent of the land area of the district, shall hold a hearing to determine whether to reduce the maximum special levy but not below the lesser of that rate determined by the district board to be necessary to maintain the district's facilities and improvements, where the special levy was authorized for operation and maintenance, or the actual rate then in effect, but in no event shall the rate be reduced below the rate necessary to satisfy the district's obligations in connection with any outstanding bonds issued pursuant to the Public Improvement District Act.

E.If a maximum special levy is in effect, the district board, on petition of twenty-five percent of the qualified electors, or by the owners of twenty-five percent of the land area of the district, shall hold a hearing to determine whether to reduce the maximum special levy but not below the lesser of that rate determined by the district board to be necessary to maintain the district's facilities and improvements, where the special levy was authorized for operation and maintenance, or the actual rate then in effect, but in no event shall the rate be reduced below the rate h necessary to satisfy the district's obligations in connection u » r with any outstanding bonds issued pursuant to the Public t h g e Improvement District Act.

Upon presentation to the district board of a petition signed by the owners of a majority of the property in the district, the district board shall adopt a resolution to e e 17 reduce or eliminate the portion of the tax or special levy, e e n d 18 beginning the next fiscal year, required for one or more = = l ]i 19h servicesr ori enhanceds servicesE. specified in the petition.

Upon presentation to the district board of a h , e h petition signed by the owners of a majority of the property in t u g e b l rthe idistrict, 20the Signaturesdistrict onboard shall adopt a petitionresolution to e e , gh n d d i = = o h reduce or eliminate athe portion of the tax or tspecial elevy, l ] b ,d i a tº specialr levybeginning shallthe benext validfiscal year, required for aone periodor ofmore sixtye days.r = t e w d services or enhanced services specified in the petition.

m ma 21n eo d F.m :

Whenb levyingr propertye taxt orº imposingo at specialn r= .217424.5AIC February 17, 2020 (2:52pm) s k m e 22- c40 - e a n e d r ce 23l levy]u The[ districtA boardd shallSCORC/SB make246 annualSignatures statementson anda epetition to reduce or eliminate a ntax bor 24special estimateslevy of:shall be valid for a period of sixty days.

uF. [ (1) the operation and maintenance expenses of .217424.5 - 38 - SCORC/SB 246 the district;

When levying property tax or imposing a special levy] The district board shall make annual statements and estimates of:

(1) the operation and maintenance expenses of the district;

[all of which shall be provided for by the levy and collection of h g property taxes on the net taxable value of the real property in o t hr the district or by the imposition and collection of special g e i k h r levies.] i s h B.

The district board shall file the annual , t, e u g statements and estimates with the clerk.

The district board e b l e e h shall publish a notice of the filing of the estimate, shall en ed 17d i = = o h l ] b ,d hold [hearings ] a hearing on the portions of the estimate not ei a º e nr di 18= r relating to debt service on general obligation bonds or special =t =e lw ]d 19m levya bondsn ando shalld adoptm a: budget.

[Theb districte board,d ons aº lo rt in 20= or.217424.5AIC beforeFebruary the17, date2020 set(2:52pm) bys lawk form certifyinge the- annual41 budget- t e a tn of the municipality or county, shall fix, levy and assess the m m 21 e d amounts to be raised by property taxes or special levies of the r e 22l cu e[ rA cd 23SCORC/SB district246 and]levy ebonds aand nshall badopt 24a C.budget.

After[The the hearing, the district boardboard, shallon uor [before causethe certifieddate copiesset ofby thelaw [orderfor ]certifying the adoptedannual budget to be .217424.5 - 39 - SCORC/SB 246 delivered to the local government division of the departmentmunicipality ofor financecounty, andshall administrationfix, [All statutes relating to the levy and collectionassess of property taxes, including the collectionamounts ofto delinquentbe taxesraised andby sale of property for nonpayment of taxes, apply to district property taxes andor to special levies,levies exceptof to the extent that the district boardand] hasC. provided for other imposition, collection and foreclosure procedures in connection with special levies.] and to the governing body." SECTION 12.

SectionAfter 5-15-3the NMSAhearing, 1978the (beingdistrict Lawsboard 2006,shall Chaptercause 75,certified Sectioncopies 3,of asthe amended[order by] Lawsthe 2019,adopted Chapterbudget 212,to Sectionbe 199delivered to the local government division of the department of finance and alsoadministration by[All Lawsstatutes 2019,relating Chapterto 275,the Sectionlevy 1)and iscollection amendedof property taxes, including the collection of delinquent taxes and sale of property for nonpayment of taxes, apply to read:district property taxes and to special levies, except to the extent that the district board has provided for other imposition, collection and foreclosure procedures in connection with special levies.] and to the governing body." SECTION 12.

"5-15-3.Section 5-15-3 NMSA 1978 (being Laws 2006, h Chapter 75, Section 3, as amended by Laws 2019, Chapter 212, g o Section 199 and also by Laws 2019, Chapter 275, Section 1) is t hr g e i k amended to read:

DEFINITIONS.--Ash usedr ini thes Tax"5-15-3. Increment for Development Act:

A.DEFINITIONS.--As used in the Tax Increment for h , t, Development Act:

e u g e b l e e h A.

(1) the total amount of gross receipts taxes e e 17 collected within a [tax increment development ] district, as e e n d 18d estimatedi by the governing body that adopted a resolution to = = lo ]h 19(1) formthe thattotal district,amount inof consultationgross withreceipts thetaxes taxationl and] ab l,d r i 20a revenueº department,e incollected thewithin calendar year preceding the t e a t formation of the [tax increment development ] district or, when m m 21 e d an area is added to an existing district, theas amountr ofi gross= r et 22 c e rw cd 23m receipts taxes collected in the calendar year preceding the e a n bo 24estimated effective date of the modification of the tax increment u [ development plan and designated by the governing body tothat beadopted .217424.5a -resolution 40to -d SCORC/SBm 246: available as part of the gross receipts tax increment;

b e d s º o t n = .217424.5AIC February 17, 2020 (2:52pm) s k m e - 42 - e a n e d r e l u [ A d SCORC/SB 246 form that district, in consultation with the taxation and revenue department, in the calendar year preceding the formation of the [tax increment development ] district or, when an area is added to an existing district, the amount of gross receipts taxes collected in the calendar year preceding the effective date of the modification of the tax increment development plan and designated by the governing body to be available as part of the gross receipts tax increment;

(1) the portion of property taxes produced by the total of all property tax levied at the rate fixed each year by each governing body levying a property tax on the h u assessed value of taxable property within the tax increment » r t h development area last certified for the year ending immediately g e l i prior to the year in which a tax increment development plan is h r i s h , approved for the tax increment development area, or, when an e h t u g area is added to an existing tax increment development area, e b l e e , gh "base property taxes" means that portion of property taxes producedn byd thed totali of= all= propertyo taxh leviedl at] theb rate,d eproduced e 17 fixed each year by each governing body levying a property tax e e n d 18 upon the assessedtotal value of taxableall property within the tax =levied =at l ] 19 increment development area on the daterate ofi the modification of a lº r ie 20r the= taxfixed incrementeach developmentyear plan and designated by theeach t e a t governing body tolevying bea availableproperty astax partt ofe thew propertyd tax m ma 21n eo d increment;m :

andb r e 22t cº eo rt cn 23= (2).217424.5AIC anyFebruary amount17, of2020 property(2:52pm) taxess thatk wouldm e - 43 - e a n be 24d haver beene collectedl inu such[ yearA ifd anySCORC/SB applicable246 additionalupon uthe [assessed value of taxable property taxeswithin imposedthe aftertax thatincrement yeardevelopment hadarea beenon imposedthe indate thatof .217424.5the -modification 41of -the SCORC/SBtax 246increment year;development plan and designated by the governing body to be available as part of the property tax increment;

and (2) any amount of property taxes that would have been collected in such year if any applicable additional property taxes imposed after that year had been imposed in that year;

"county option gross receipts taxes" means gross receipts taxes imposed by counties pursuant to the County Local Option Gross Receipts and Compensating Taxes Act and designated by the governing body of the county to be available h as part of the gross receipts tax increment;

[D.]g E.o [D.

"district"] meansE. a tax increment development district formed for the purposes of carrying out tax increment development projects;

[E.]"district" F.means a tax increment t hr g e i k development district formed for the purposes of carrying out h r i s tax increment development projects;

"districth board", meanst, a[E. board formed in accordance with the provisions of the Tax Increment for Development Act to govern a [tax increment development ] district;

e] eF. 17 [F.] G.

"enhanced"district services"board" means public services e e n d 18 provided by a municipalityboard orformed countyin withine theu districtg ate ab = = l ]e 19e higherh levelaccordance orwith tothe aprovisions greaterof degreethe thanTax otherwiseIncrement availablefor ton ad ld r i 20= the= lando locatedh inDevelopment theAct districtto fromgovern the municipality or t e a t[tax county,increment includingdevelopment such] servicesl as] publicb safety,,d firei ma mº 21 e ddistrict; protection, street or sidewalk cleaning or landscape r e 22 c e r c 23 maintenance in public areas;

providedr thati "enhanced= services"r t e aw nd b[F. 24 does not include the basic operation and maintenance related to u [ infrastructure improvements financed by the district pursuant .217424.5 - 42 - SCORC/SB 246 to the Tax Increment for Development Act;

[G.]] H.G.

"enhanced services" means public services m a n o d m :

b e d s º o t n = .217424.5AIC February 17, 2020 (2:52pm) s k m e - 44 - e a n e d r e l u [ A d SCORC/SB 246 provided by a municipality or county within the district at a higher level or to a greater degree than otherwise available to the land located in the district from the municipality or county, including such services as public safety, fire protection, street or sidewalk cleaning or landscape maintenance in public areas;

provided that "enhanced services" does not include the basic operation and maintenance related to infrastructure improvements financed by the district pursuant to the Tax Increment for Development Act;

[G.

] H.

[H.][H. I.

"gross] receiptsI. tax increment" means the gross receipts taxes collected within a [tax increment development] district in excess of the base gross receipts taxes collected in the district;

[I.]"gross J.receipts tax increment" means the gross receipts taxes collected within a [tax increment development] district in excess of the base gross receipts h g taxes collected in the district;

"grosso receiptst taxhr increment[I. bonds" means bonds issued by a district in accordance with the Tax Increment for Development Act, the pledged revenue for which is a gross receipts tax increment;

[J.]] K.J.

"local"gross government"receipts tax increment bonds" means g e i k h r bonds issued by a municipalitydistrict orin county;accordance with the Tax Increment i s h for Development Act, the pledged revenue for which is a gross , t, e u g receipts tax increment;

[K.]e L.b l e e h [J.

"municipal option gross receipts taxes" e e 17 means those gross receipts taxes imposed by municipalities e e n d 18 pursuant to the Municipal Local Option Gross Receipts and = = l ] 19K. Compensating Taxes Act and designated by the governing body of a l r i 20 the municipality to be available as part of the gross receipts t e a t tax increment;

m"local mgovernment" 21means ea municipality or n d [L.]d M.i = = o h l ] b ,d county;

"municipality"i meansa anº incorporatede city, r ei 22= c e r c[K. 23 town or village, whether incorporated under general act, e a n b 24 special act, special charter or territorial charter, but does u [ not mean a combined city and county corporation, an .217424.5 - 43 - SCORC/SB 246 incorporated county or a single urban government ;

[M.]] N.L.

"municipal option gross receipts taxes" t e w d m a n o d m :

b e d s º o t n = .217424.5AIC February 17, 2020 (2:52pm) s k m e - 45 - e a n e d r e l u [ A d SCORC/SB 246 means those gross receipts taxes imposed by municipalities pursuant to the Municipal Local Option Gross Receipts and Compensating Taxes Act and designated by the governing body of the municipality to be available as part of the gross receipts tax increment;

[L.

] M.

"municipality" means an incorporated city, town or village, whether incorporated under general act, special act, special charter or territorial charter, but does not mean a combined city and county corporation, an incorporated county or a single urban government;

[M.

] N.

h (3) that is:

g o (a) involved, directly or in a t hr g e i k supervisory capacity, with the production of:

h r i s provided that the majority of the revenue generated from the h , t, service is from sources outside the state;

or 2) tangible or e u g e b l e e h intangible personal property for sale;

or n d d i = = o h (b) held by an employee that is employed l ] b ,d i a º e at a regional, national or international headquarters operation r i = r t e w d or at an operation that primarily provides services for other em ea 17 operations of the qualifying entity that are located outside e e n o d 18m the: state;

andb =e =d ls ]º 19o (4)t thatn is= not.217424.5AIC directlyFebruary involved17, with2020 natural(2:52pm) as lk rm ie 20- resources46 extraction- or processing, on-site services where the t e a tn customer is present for the delivery of the service, retail, m m 21 e d construction or agriculture except for value-added processing r e 22l cu e[ rA cd 23SCORC/SB performed246 onoperations agriculturalof productsthe thatqualifying wouldentity thenthat beare soldlocated foroutside ethe astate; n b 24 wholesale or retail consumption;

uand [(4) [N.]that O.is not directly involved with natural resources extraction or processing, on-site services where the customer is present for the delivery of the service, retail, construction or agriculture except for value-added processing performed on agricultural products that would then be sold for wholesale or retail consumption;

"owner"[N. means a person owning real property .217424.5 - 44 - SCORC/SB 246 within the boundaries of a district;

[O.]] P.O.

"owner" means a person owning real property within the boundaries of a district;

[O.

] P.

[P.][P. Q.

] Q.

[Q.][Q. R.

"property] taxR. increment" means all property tax collected on real property within the designated tax increment development area that is in excess of the base property tax until termination of the district and distributed to the district in the same manner as distributions are made under the provisions of the Tax Administration Act;

[R.]"property S.tax increment" means all property h g tax collected on real property within the designated tax o t hr increment development area that is in excess of the base g e i k h r property tax until termination of the district and distributed i s h to the district in the same manner as distributions are made , t, e u g under the provisions of the Tax Administration Act;

"propertye taxb incrementl bonds"e meanse bondsh issued[R. by a district in accordance with the Tax Increment for Development Act, the pledged revenue for which is a property tax increment;

e] eS. 17 [S.] T.

"public"property improvements"tax meansincrement on-sitebonds" emeans ebonds n d 18d improvementsi and off-site improvements that directly or = = o h l ] 19b indirectly,d benefitissued by a [taxdistrict incrementin developmentaccordance ]with districtthe orTax aIncrement lfor r i 20 facilitate development within a taxº increment development area t e ar ti and= thatr areDevelopment dedicatedAct, to the [governingpledged bodyrevenue infor which theis ma mproperty 21t e w d districtm lies] state or a localn governmento ord otherm political: r e 22 c e r c 23 subdivision.

b e d s º o t n = .217424.5AIC February 17, 2020 (2:52pm) s k m e - 47 - e a n e d r e l u [ A d SCORC/SB 246 tax increment;

[S.

] T.

"public improvements" means on-site improvements and off-site improvements that directly or indirectly benefit a [tax increment development ] district or facilitate development within a tax increment development area and that are dedicated to the [governing body in which the district lies] state or a local government or other political subdivision.

e a n b 24 (1) sanitary sewage systems, including u [ collection, transport, treatment, dispersal, effluent use and .217424.5 - 45 - SCORC/SB 246 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 e e h for vehicular use for travel, ingress, egress and parking;

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;

(6)m pedestriana and transit facilities, parks, e e 17 recreational facilities and open space areas for the use of e e n o d 18m members: of the public for entertainment, assembly and = = l ] 19 recreation;

ab le rd is 20º (7)o landscaping,t includingn earthworks,= t.217424.5AIC February 17, 2020 (2:52pm) s k m e - 48 - e a tn structures,e plants,d treesr e l u [ A d SCORC/SB 246 (6) pedestrian and relatedtransit waterfacilities, deliveryparks, systems;recreational facilities and open space areas for the use of members of the public for entertainment, assembly and recreation;

m(7) mlandscaping, 21including eearthworks, dstructures, (8)plants, publictrees buildings, public safety facilities r e 22 c e r c 23 and firerelated protectionwater anddelivery policesystems; facilities;

e(8) apublic nbuildings, bpublic 24safety (9)facilities electricaland generation,fire transmissionprotection and upolice [ distribution facilities;

.217424.5(9) -electrical 46generation, -transmission SCORC/SBand 246 (10) natural gas distribution facilities;

(10) natural gas distribution facilities;

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

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

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

(17)b inspection,e constructiond management,s eº eo 17t planningn and= program.217424.5AIC managementFebruary and17, other2020 professional(2:52pm) servicess k m e - 49 - e a n e d 18r costse incidentall tou the[ project;A d SCORC/SB 246 subsection;

=(17) =inspection, lconstruction ]management, 19planning (18)and workforceprogram housing;management and other professional services costs incidental to the project;

and(18) aworkforce lhousing; r i 20 (19) any other improvement that the governing t e a t body determines to be for the use or benefit of the public;

mand m(19) 21any eother dimprovement [T.]that U.the governing body determines to be for the use or benefit of the public;

"state[T. gross receipts tax" means the gross r e 22 c e r c 23 receipts tax imposed pursuant to the Gross Receipts and e a n b 24 Compensating Tax Act, but does not include that portion u [ distributed to municipalities pursuant to Sections 7-1-6.4 and .217424.5 - 47 - SCORC/SB 246 7-1-6.46 NMSA 1978 or to counties pursuant to Section 7-1-6.47 NMSA 1978;

[U.]] V.U.

"sustainable"state development"gross receipts tax" means landthe developmentgross thatreceipts achievestax sustainableimposed economicpursuant andto socialthe goalsGross inReceipts waysand thatCompensating canTax beAct, supportedbut fordoes thenot longinclude termthat byportion conservingdistributed resources,to protectingmunicipalities thepursuant environmentto Sections 7-1-6.4 and ensuring7-1-6.46 humanNMSA health1978 andor welfareto usingcounties mixed-use,pursuant pedestrian-oriented,to multimodalSection land7-1-6.47 useNMSA planning;1978;

[V.][U. W.

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

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

"taxh incrementr developmenti district"s means[V. a district formed for the purposes of carrying out tax increment development projects;] X.

] W.

"tax increment development area" means the h , t, land included within the boundaries of a [tax increment e u g e b l e e h development] district;

n d d i = = o h [W.

"tax increment development district" means a l ] b ,d i a º e district formed for the purposes of carrying out tax increment r i = r t e w d development projects;] m a n o d m :

b e d s º o t n = .217424.5AIC February 17, 2020 (2:52pm) s k m e - 50 - e a n e d r e l u [ A d SCORC/SB 246 X.

e e 17 Y.

"tax increment development project" means e e n d 18 activities undertaken within a tax increment development area = = l ] 19 to enhance the sustainability of the local, regional or a l r i 20 statewide economy;

to support the creation of jobs, schools and t e a t workforce housing;

and to generate tax revenue for the m m 21 e d provision of public improvements and may include:

r e 22 c e r c 23 (1) acquisition of land within a designated e a n b 24 tax increment development area or a portion of that tax u [ increment development area;

.217424.5 - 48 - SCORC/SB 246 (2) demolition and removal of buildings and improvements and installation, construction or reconstruction of streets, utilities, parks, playgrounds and improvements necessary to carry out the objectives of the Tax Increment for Development Act;

h u (3) installation, construction or » r t h reconstruction of streets, water utilities, sewer utilities, g e l i parks, playgrounds and other public improvements necessary to h r i s h , carry out the objectives of the Tax Increment for Development e h t u g Act;

e b l e e , gh (4) disposition of property acquired or held n d d i = = o h l ] b ,d by a [tax increment development ] district as part of the i a º r e r = undertaking of a tax increment development project at the fair markett valuee ofw suchd propertym fora usesn ino accordanced withm the: Tax Increment for Development Act;

(5)b paymentsr fore professionalt servicesº eo et 17n contracts= necessary.217424.5AIC toFebruary implement17, a2020 tax(2:52pm) increments developmentk m e - 51 - e a n e d 18r plane orl project;u [ A d SCORC/SB 246 market value of such property for uses in accordance with the Tax Increment for Development Act;

=(5) =payments lfor ]professional 19services (6)contracts borrowingnecessary to purchaseimplement land, buildings or a l r i 20 infrastructure in an amount not to exceed the revenue stream t e a t that may be derived from the gross receipts tax increment ordevelopment mplan mor 21project; e d the property tax increment estimated to be received by a [tax r e 22 c e r c 23 increment development] district;

and(6) eborrowing ato npurchase bland, 24buildings (7)or grantsinfrastructure forin publican improvementsamount essentialnot uto [exceed tothe revenue stream that may be derived from the locationgross receipts tax increment or expansionthe ofproperty tax increment estimated to be received by a business;[tax increment development] district;

and .217424.5(7) -grants 49for -public SCORC/SBimprovements 246essential [Z.to the location or expansion of a business;

and [Z.

and h AA.] Z.

"workforce housing" means decent, safe and u » r sanitary dwellings, apartments, single-family dwellings or t h g e other living accommodations that are affordable for persons or l i h r i s families earning less than eighty percent of the median income h , e h within the county in which the tax increment development t u g e b l project is located;

provided that an owner-occupied housing e e , gh n d d i = = o h unit is affordable to a household if the expected sales price l ] b ,d i a º r is reasonably anticipated to result in monthly housing costs e r = t e w d that do not exceed thirty-three percent of the household's grossm monthlya income;n o d m :

b r e t º o t n = .217424.5AIC February 17, 2020 (2:52pm) s k m e - 52 - e a n e d r e l u [ A d SCORC/SB 246 gross monthly income;

(1) determination of mortgage amounts and payments is to be based on down payment rates and interest e e 17 rates generally available to lower- and moderate-income e e n d 18 households;

and = = l ] 19 (2) a renter-occupied housing unit is a l r i 20 affordable to a household if the unit's monthly housing costs, t e a t including rent and basic utility and energy costs, do not m m 21 e d exceed thirty-three percent of the household's gross monthly r e 22 c e r c 23 income." e a n b 24 SECTION 13.

Section 5-15-8 NMSA 1978 (being Laws 2006, u [ Chapter 75, Section 8, as amended) is amended to read:

.217424.5 - 50 - SCORC/SB 246 "5-15-8.

(1) formation of a new [tax increment h g development] district;

o t hr (2) [selection of a district board member ] g e i k h r modification of the boundaries of a tax increment development i s h area;

, t, e u g (3) [adoption ] the levy of a property tax e b l e e h [levy by a tax increment development district ] on property in n d d i = = o h l ] b ,d the district;

i a º e r i = r (4) use of property tax increment financing by t e w d m a [taxn incremento developmentd ]m district;:

b e d s º o t n = .217424.5AIC February 17, 2020 (2:52pm) s k m e - 53 - e a n e d r e l u [ A d SCORC/SB 246 a [tax increment development ] district;

A formation determination may be waived and a e e 17 [tax increment development ] district shall be formed upon the e e n d 18 governing body's adoption of a resolution to form a [tax = = l ] 19 increment development] district if a petition is presented to a a l r i 20 governing body in accordance with the Tax Increment for t e a t Development Act and if the petition contains the signatures of m m 21 e d all owners of the real property within the proposed tax r e 22 c e r c 23 increment development area and states that the owners waive the e a n b 24 right to a formation determination.

u [ C.

A formation or other determination shall not be .217424.5 - 51 - SCORC/SB 246 a local election for purposes of the Local Election Act or a special election for purposes of the Special Election Act.

The governing body or district board may establish local procedures h for noticing, conducting and canvassing determinations, which g o may include determinations by unanimous written approval of the t hr g e i k owners in affidavits executed by the owners and confirmed in a h r i s review by the district board.

h , t, D.

Except as otherwise provided by this section , an e u g e b l e e h election by the qualified electors pursuant to the Tax n d d i = = o h Increment for Development Act shall be a nonpartisan election l ] b ,d i a º e called, conducted and canvassed pursuant to the provisions of r i = r t e w d the [Election Code ] Local Election Act.

E.m a n o d m :

b e d s º o t n = .217424.5AIC February 17, 2020 (2:52pm) s k m e - 54 - e a n e d r e l u [ A d SCORC/SB 246 E.

(1) if the election is a formation election, the boundaries of the proposed [tax increment development ] e e 17 district;

e e n d 18 (2) if the election is a bond election, the = = l ] 19 purpose for which the bonds are to be issued and the amount of a l r i 20 the issue;

t e a t (3) if the election is a property tax levy m m 21 e d election, the maximum tax rate per one thousand dollars r e 22 c e r c 23 ($1,000) of assessed valuation to be imposed, the purposes for e a n b 24 which the revenues raised will be used and the existing maximum u [ tax rate, if any;

.217424.5 - 52 - SCORC/SB 246 (4) that an approved tax increment development plan is on file with the clerk of the governing body;

(5) the purposes for which property taxes will h g be imposed and for which the revenues raised will be used, o t hr including a description of the public improvements to be g e i k h r financed with tax revenues, bond proceeds or other revenues of i s h the [tax increment development ] district;

and , t, e u g (6) that the imposition of property taxes will e b l e e h result in a lien for the payment on property within the n d d i = = o h l ] b ,d district.

i a º e r i = r F.

[The district board, or, in the case of a formationt election,e thew governingd body,m shalla determinen theo dated ofm the: election, which shall comply with the provisions of the Local Election Act.] The ballot material provided to each qualified [electors ] elector shall include:

(1)b fore ad formations election,º ano impartialt en e= 17.217424.5AIC descriptionFebruary of17, the2020 tax(2:52pm) increments developmentk planm ande - 55 - e a briefn e d r e nl u [ A d 18SCORC/SB description246 formation election, the governing body, shall determine the date of argumentsthe forelection, andwhich againstshall comply with the formationprovisions of the =Local =Election lAct.] ]The 19ballot [taxmaterial incrementprovided developmentto each qualified [electors ] district,elector ifshall any;include:

a(1) l r i 20 (2) for an election concerning the imposition t e a tformation ofelection, property taxes, an impartial description of the taxestax toincrement bedevelopment mplan mand 21a ebrief ddescription imposed, the method of apportionment,arguments collectionfor and ragainst e 22 c e r c 23 enforcement and other details sufficient to enable each e a n b 24 qualified elector to determine the amountformation of taxthe it[tax willincrement bedevelopment u] [district, obligatedif toany; pay;

a(2) brieffor descriptionan election concerning the imposition of argumentsproperty fortaxes, andan .217424.5impartial -description 53of -the SCORC/SBtaxes 246to againstbe imposed, the impositionmethod of taxesapportionment, thatcollection areand enforcement and other details sufficient to enable each qualified elector to determine the subjectamount of thetax election,it ifwill any;be obligated to pay;

and a statementbrief thatdescription the imposition of propertyarguments taxesfor isand foragainst the provisionimposition of certain,taxes but not necessarily all, public improvements that mayare bethe neededsubject orof desirable within the [taxelection, incrementif developmentany; ] district, and that other taxes, levies or assessments by other governmental entities may be presented for approval by owners and qualified electors;

(3)and fora anstatement electionthat concerning the useimposition of h property taxtaxes incrementis [financingfor ]the bonds,provision anof impartialcertain, descriptionbut ofnot theg estimatedo incrementnecessarily toall, public improvements that may be generatedneeded overor thet lifehr ofg thee projecti andk desirable within the nature[tax increment development ] district, and extenth ofr thei publics improvementsthat toother taxes, levies or assessments by other governmental h , t, entities may be constructedpresented [andfor maintainedapproval ]by usingowners suchand financing;qualified e u g e b l e e h electors;

n d d i = = o h (3) for an election concerning the use of l ] b ,d i a º e property tax increment [financing ] bonds, an impartial r i = r t e w d description of the estimated increment to be generated over the m a n o d m :

b e d s º o t n = .217424.5AIC February 17, 2020 (2:52pm) s k m e - 56 - e a n e d r e l u [ A d SCORC/SB 246 life of the project and the nature and extent of the public improvements to be constructed [and maintained ] using such financing;

e e 17 (5) for a property tax imposition election, e e n d 18 the question to be voted upon as "property tax, yes" and = = l ] 19 "property tax, no";

a l r i 20 (6) for an election to change an existing t e a t maximum tax or eliminate an existing tax, the question to be m m 21 e d voted upon as "tax change, yes" and "tax change, no" and shall r e 22 c e r c 23 specify the type of tax to which the proposed change pertains;

e a n b 24 and u [ (7) for an election concerning the use of .217424.5 - 54 - SCORC/SB 246 property tax increment bonds, the ballot shall pose the question to be voted upon as "bonds, yes" and "bonds, no".

h g G.

Failure of a majority to vote in favor of the o t hr matter submitted shall not prejudice the submission of the same g e i k h r or similar matters at a later election;

provided that an i s h election on the same question shall not be held within one year , t, e u g of the failure of a majority to vote in favor of that question.

e b l e e h H.

If a person transfers real property located in a n d d i = = o h l ] b ,d district and the name of the successor owner becomes known to i a º e r i = r the [governing body or the ] district board [as applicable] and ist verifiede byw recordedd deedm ora othern similaro evidenced ofm transfer: of ownership, the successor owner is deemed to be the owner of the real property for the purposes of the Tax Increment for Development Act.

b e d s º o t n = .217424.5AIC February 17, 2020 (2:52pm) s k m e - 57 - e a n e d r e l u [ A d SCORC/SB 246 is verified by recorded deed or other similar evidence of transfer of ownership, the successor owner is deemed to be the owner of the real property for the purposes of the Tax Increment for Development Act.

If there are no persons registered to vote within a district or proposed district areas within [seventy ] e e 17 sixty-three days immediately preceding a scheduled election e e n d 18 date, an election required to be held pursuant to the Tax = = l ] 19 Increment for Development Act shall be canceled and the a l r i 20 determination made by the owners of property within the t e a t district or proposed district areas shall prevail, unless an m m 21 e d election is otherwise required by the constitution of New r e 22 c e r c 23 Mexico or the determination was waived by the governing body e a n b 24 pursuant to Subsection B of this section.

In a determination , u [ each owner shall have [the number of votes or portion of votes .217424.5 - 55 - SCORC/SB 246 equal to the number of acres or portion of acresacres] ] one vote for h each one-fifth of an acre located in the district, rounded g o upward to the nearest one-fifth of an acre [owned in the t hr g e i k district by that owner]." h r i s SECTION 14.

Section 5-15-9 NMSA 1978 (being Laws 2006, h , t, Chapter 75, Section 9, as amended) is amended to read:

e u g e b l e e h "5-15-9.

FORMATION OF A DISTRICT.-- n d d i = = o h A.

If the formation of the [tax increment l ] b ,d i a º e development] district is approved in accordance with the provisionsr ofi Section= 5-15-8r NMSAt 1978,e thew governingd bodym shall deliver a copyn ofo theprovisions resolution ordering formation of theSection [tax5-15-8 incrementNMSA development1978, ] district to each of the followinggoverning personsbody ord entities:m :

b e d s º o t n = .217424.5AIC February 17, 2020 (2:52pm) s k m e - 58 - e a n e d r e l u [ A d SCORC/SB 246 shall deliver a copy of the resolution ordering formation of the [tax increment development ] district to each of the following persons or entities:

(2) the school district within which any e e 17 portion of the property located within a tax increment e e n d 18 development area lies;

= = l ] 19 [(3) any other taxing entities within which a l r i 20 any portion of the property located within a tax increment t e a t development area lies;

m m 21 e d (4)] (3) the taxation and revenue department;

r e 22 c e r c 23 [(5)] (4) the local government division of the e a n b 24 department of finance and administration;

and u [ [(6)] (5) the director of the legislative .217424.5 - 56 - SCORC/SB 246 finance committee.

h g B.

A notice of the formation showing the number and o t hr date of the resolution and giving a description of the land g e i k h r included in the district shall be recorded with the clerk of i s h the county in which the district is located.

, t, e u g C.

A [tax increment development ] district shall be e b l e e h a political subdivision of the state, separate and apart from a n d d i = = o h l ] b ,d municipality or county." i a º e r i = r SECTION 15.

Section 5-15-10 NMSA 1978 (being Laws 2006, Chaptert 75,e Sectionw 10,d asm amended)a isn amendedo tod read:m :

b e d s º o t n = .217424.5AIC February 17, 2020 (2:52pm) s k m e - 59 - e a n e d r e l u [ A d SCORC/SB 246 Chapter 75, Section 10, as amended) is amended to read:

The district shall be governed by the governing e e 17 body that adopted a resolution to form the district or by a e e n d 18 five-member board composed of four members appointed by that = = l ] 19 governing body;

provided, however, that the fifth member of the a l r i 20 five-member board is the secretary of finance and t e a t administration or the secretary's designee with full voting m m 21 e d privileges.

r e 22 c e r c 23 C.

[Two of the appointed directors shall serve an e a n b 24 initial term to expire following a regular local election and u [ not to exceed six years.

Two of the appointed directors shall .217424.5h - 57 - SCORC/SB 246 serve an initial term to expire following a regular local g o election and not to exceed four years.

The resolution forming t hr g e i k the district shall state which directors shall serve the longer h r i s terms and which shall serve the shorter terms] The members of h , t, the district board shall serve five-year terms.

At the end of e u g e b l e e h each five-year term, the governing body shall appoint itself as n d d i = = o h the district board or appoint five directors as provided in l ] b ,d i a º e Subsection B of this section.

r i = r t e w d D.

If a vacancy occurs on the district board becausem of the death, resignation or inability of the director to discharge the duties of the director, the governing body shall appoint a directorn too filld them vacancy,: and the director shall hold office for the remainder of the unexpired term until a successor is appointed [or elected ].

b e d s º o t n = .217424.5AIC February 17, 2020 (2:52pm) s k m e - 60 - e a n e d r e l u [ A d SCORC/SB 246 because of the death, resignation or inability of the director to discharge the duties of the director, the governing body shall appoint a director to fill the vacancy, and the director shall hold office for the remainder of the unexpired term until a successor is appointed [or elected ].

In the case of an appointed board of directors that is not the governing body, at the end of the appointed e e 17 directors' initial terms, the board shall hold an election of e e n d 18 new directors by majority vote of qualified electors in = = l ] 19 accordance with the Local Election Act and the Tax Increment a l r i 20 for Development Act.

If the election is canceled pursuant to t e a t Subsection I of Section 5-15-8 NMSA 1978, a determination by m m 21 e d the owners conducted by ballot shall select the new r e 22 c e r c 23 directors.]" e a n b 24 SECTION 16.

Section 5-15-12 NMSA 1978 (being Laws 2006, u [ Chapter 75, Section 12) is amended to read: