SB 321 — COUNTY COURTHOUSE BONDING ACT

SENATE TAX, BUSINESS AND TRANSPORTATION COMMITTEE SUBSTITUTE FOR SENATE BILL 321 55TH LEGISLATURE -STATEOFNEWMEXICO- FIRST SESSION, 2021 INTRODUCED4 BY6 Ron8 Griggs10 andAN WilliamACT F.RELATING TO COURTS;

Burt 6 8 10 AN ACT RELATING TO COURTS;

[NEW MATERIAL] SHORT TITLE.--Sections 1 a t m m 21 through 76 of this act may be cited as the "County Courthouse d r e 22 Bonding Act".

[NEW MATERIAL] NEW MEXICO FINANCE AUTHORITY-- e a n b 24 BUILDING BONDS--PROCEEDS.--The New Mexico finance authority is u [ authorized to issue and sell revenue bonds, known as "county .219381.1.220364.1 STBTC/SB 321 courthouse tax revenue bonds", payable solely from the county courthouse bonding fund, in compliance with the County Courthouse Bonding Act for the purpose of remodeling, renovating or constructing courthouses, including the purchase of equipment and furnishings but excluding the purchase of land or buildings;

The fund shall consist of money w l n d 18 appropriated and transferred to the fund and gross receipts tax = = 19 a l revenues distributed to the fund pursuant to Section 8 of the a l i a e r 20 County Courthouse Bonding Act.

Money in the county courthouse bonding fund is u [ pledged for the payment of principal and interest on all county .219381.1.220364.1 - 2 - STBTC/SB 321 courthouse tax revenue bonds issued pursuant to the County Courthouse Bonding Act.

or w l n d 18 (2) a court of proper jurisdiction has ruled = = 19 a l that the county courthouse tax revenue bonds have been retired, a l i a e r 20 that no additional obligations of the county courthouse bonding a t m m 21 fund exist and that no additional expenditures from the fund d r e 22 are necessary.

The county courthouse tax revenue bonds issued e a n b 24 pursuant to the County Courthouse Bonding Act shall be payable u [ solely from the county courthouse bonding fund or, with the .219381.1.220364.1 - 3 - STBTC/SB 321 approval of the bondholders, such other special funds as may be provided by law and do not create an obligation or indebtedness of the state within the meaning of any constitutional provision.

[NEW MATERIAL] COURTHOUSE BONDS--FORM--BONDS--AGREEMENT EXECUTION.--OF THE STATE.-- A.

The Newstate Mexicodoes financehereby authority,pledge exceptto asand otherwiseagree specificallywith providedthe inholders of any bonds or notes issued under the County Courthouse Bonding Act,Act shallthat determinethe atstate itswill discretionnot thelimit terms,or covenantsalter andthe conditionsrights ofhereby countyvested courthousein taxthe revenueauthority bonds,to includingfulfill datethe terms of issue,any denominations,agreements maturities,made ratewith the holders thereof or ratesin ofany interest,way callimpair features,the callrights premiums,and agreements made with the holders thereof e t 17 registration,or refundabilityin any way impair the rights and otherremedies covenantsof coveringthose theholders w l n d 18 generaluntil andthe technicalbonds aspectsor ofnotes together with the issuanceinterest thereon, = = 19 with interest on any unpaid installments or interest, and all a l i a e r 20 costs and expenses in connection with any action or proceedings a t m m 21 by or on behalf of thethose bonds.holders, are fully met and discharged.

=d =r 19e 22 The New Mexico finance authority is authorized to include this c e s k 23 pledge and agreement of the state in any agreement with the e a ln B.b 24 holders of the bonds or notes.

Theu county[ courthouseB. tax revenue bonds shall be i a e r 20 in such form as the New Mexico finance authority may determine, a t m m 21 and successive issues shall be identified by alphabetical, d r e 22 numerical or other proper series designation.

cAny elaw sauthorizing kthe 23imposition, C.collection .220364.1 - 4 - STBTC/SB 321 or distribution from the net receipts attributable to the gross receipts tax imposed by the Gross Receipts and Compensating Tax Act or that affects the tax shall not be amended, repealed or otherwise directly or indirectly modified so as to impair or reduce debt service coverage for any outstanding revenue bonds that may be secured by a pledge of those tax revenues, unless the revenue bonds have been discharged in full or provisions have been made for a full discharge.

County courthouse tax revenue bonds shall be e a n b 24 signed and attested by the secretary of the New Mexico finance u [ authority and shall be executed with the facsimile signature of .219381.1 - 4 - the chair of the New Mexico finance authority and the facsimile seal of the New Mexico finance authority, except for bonds issued in book entry or similar form without the delivery of physical securities.

Any interest coupons attached to the bonds shall bear the facsimile signature of the secretary of the New Mexico finance authority, which officer, by the execution of the bonds, shall adopt as the secretary's own signature the facsimile thereof appearing on the coupons.

Except for bonds issued in book entry or similar form without the delivery of physical securities, the Uniform Facsimile Signature of Public Officials Act shall apply, and the New Mexico finance authority shall determine the manual signature to be affixed on the bonds.

SECTION 5.

[NEW MATERIAL] PROCEDURE FOR SALE OF COURTHOUSE BONDS.-- A.

County courthouse tax revenue bonds shall be e t 17 sold by the New Mexico finance authority at such times and in w l n d 18 such manner as the authority may elect, either at private sale = = 19 a l for a negotiated price or to the highest bidder at public sale i a e r 20 for cash at not less than par and accrued interest.

a t m m 21 B.

In connection with any public sale of county d r e 22 courthouse tax revenue bonds, the New Mexico finance authority c e s k 23 shall publish a notice of the time and place of sale in a e a n b 24 newspaper of general circulation in the state and also in a u [ recognized financial journal outside the state.

Such .219381.1 - 5 - publication shall be made once each week for two consecutive weeks prior to the date fixed for such sale, the last publication to be two business days prior to the date of sale.

Such notice shall specify the amount, denomination, maturity and description of the bonds to be offered for sale and the place, day and hour at which sealed bids therefor shall be received.

All bids, except that of the state, shall be accompanied by a deposit of two percent of the principal amount of the bonds.

Deposits of unsuccessful bidders shall be returned upon rejection of the bid.

At the time and place specified in such notice, the New Mexico finance authority shall open the bids in public and shall award the bonds, or any part thereof, to the bidder or bidders offering the best price.

The New Mexico finance authority may reject any or all bids and readvertise.

The New Mexico finance authority may sellsecure athe e t 17 county courthouse tax revenue bondbonds issue,issued orpursuant anyto partthis thereof,section wby la npledge dof 18money toin the statepublic orproject torevolving onefund orwith morea investmentlien bankerspriority oron =the =money 19in athe lpublic institutionalproject investorsrevolving atfund privateas sale.determined by the authority.

i a e r 20 SECTION 6.5.

[NEW MATERIAL] FULL AUTHORITY FOR THE ISSUANCE a t m m 21 OF BONDS--BONDS AS LEGAL INVESTMENTS.-- d r e 22 A.

The County Courthouse Bonding Act shall, without c e st k17 23 reference to any other act of the legislature, be full ew al n bd 2418 authority for the issuance and sale of county courthouse tax u= [= 19 revenue bonds, which bonds shall have all the qualities of .219381.1a -l 6i -a e r 20 investment securities under the Uniform Commercial Code and a t m m 21 shall not be invalid for any irregularity or defect or be d r e 22 contestable in the hands of bona fide purchasers or holders c e s k 23 thereof for value.

e a n b 24 B.

County courthouse tax revenue bonds are legal u [ investments for the public project revolving fund created in .220364.1 - 5 - STBTC/SB 321 the New Mexico finance authority and any person or board charged with the investment of any public funds and are acceptable as security for any deposit of public money.

SECTION 7.6.

The following shall be deposited directly into e t 17 the county courthouse grant fund:

w l n d 18 (1) the net proceeds from the sale of bonds = = 19 a l issued pursuant to the County Courthouse Bonding Act;

i a e r 20 (2) money appropriated by the legislature to a t m m 21 implement the provisions of this section;

and d r e 22t 17 (3) any other public or private money cw el sn kd 2318 dedicated to the fund.

e= a= n19 b 24 C.

Money in the county courthouse grant fund is ua [l i a e r 20 appropriated to the authority to: