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SB 319: COUNTY IRB PROJECTS & COMPLAINT PROCESS

An Act Relating To Industrial Revenue Bonds; Including The Extraction Phase Of Mining Or Energy Development As A Suitable Industry For A Project; Including A Business That Supplies Housing As A Suitable Business For A Project; Allowing A Project Bond To Be Issued After A Complaint Has Been Filed Pursuant To Section 4-59-15 Nmsa 1978 (being Laws 1975, Chapter 236, Section 15) If The State Board Of Finance Does Not Make A Determination Within Sixty Days.

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MOD SB 319
COUNTY IRB PROJECTS & COMPLAINT PROCESS

Legislative URL:
SB 319 on nmlegis.gov
Emergency Clause:
Yes
Germane:
N/A
Location:
Signed
Action:
[3] SCORC/SJC/SFC-SCORC [4] DP-SJC [9] DP/a-SFC [25] DNP-CS/DP [27] PASSED/S (33-7) [28] HWMC [40] DP/a [41] PASSED/H (46-19) [48] s/cncrd SGND BY GOV (Apr. 9) Ch.120.
Issue(s):

Related Legislators

Bill Sponsor:

Related Documents

Downloads:
Introduced
SCORC Committee Report
SJC Committee Report
SFC Committee Report
SFC Committee Substitute
Final Senate Vote
HWMC Committee Report
Final House Vote
Fiscal Impact Report
Final Version
Summary

This bill amends the County Industrial Revenue Bond Act to include as an eligible project one that is suitable for use by:

  • an industry for the extractive phase of mining or energy development, including refining and processing; or
  • a business in which all or part of the activities of the business involve the supplying of housing to the general public or to governmental agencies or to a specific industry or customer.

 

And it provides that, in the event that a written complaint is filed that a proposed project would compete with such an existing business or enterprise located within the county or within five miles of the proposed project, the bonds in connection with the project may be issued if the State Board of Finance does not make a determination within 60 days after the complaint is filed by the existing business or enterprise.

 

On February 16th the Senate Judiciary Committee amended SB 319 to provide that in the event that a written complaint is filed as described above, the State Board of Finance is required to conduct a hearing and make a determination within 60 days after the complaint is filed as to whether the bond may be issued. The amendment deletes the provision for issuance of the bonds if the State Board of Finance fails to make such a determination.

 

The Senate Finance Committee Substitute for SB 319 amends the County Industrial Revenue Bond Act to include as an eligible project one that is suitable for use by for:

  • a mine that has not been in operation prior to the issuance of bonds for the project for which the enterprise will be involved; or a commercial enterprise that has received a permit from the Energy, Minerals and Natural Resources Department
  • a refinery, treatment plant or processing plant of energy products that was not in operation prior to the issuance of bonds for the project for which the enterprise will be involved.

 

If, within 15 days of the meeting at which an ordinance or resolution is adopted authorizing the issuance of bonds, a written complaint is filed that a proposed project would compete with an existing business or enterprise located within the county or within five miles of the proposed project, the State Board of Finance is required to conduct a hearing and make a determination within 60 days after the complaint is filed as to whether the bond may be issued.

 

On March 16th the House Ways and Means Committee amended the SFC Substitute for SB 319 to:

  • expand the description of an eligible project to include a commercial enterprise that has received any necessary state permit (not just a permit from the EMNRD);
  • change the time period within which the State Board of Finance must conduct a hearing to 90 days from its receipt of a request for determination from the county; and
  • provide that an existing business or enterprise for which bonds were previously issued shall not be entitled to file a complaint.

One possible concern regarding this bill, as amended, might be that it may encourage additional mining and energy development projects, including refineries, that may have adverse conservation impacts.