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SB 314: TRANSPORTATION REINVESTMENT ZONE ACT

An Act Relating To Taxation; Creating A Financing Mechanism For Public Transportation Infrastructure; Dedicating Gross Receipts Tax Increments; Authorizing The Issuance Of Bonds; Enacting The Transportation Reinvestment Zone Act; Declaring An Emergency.

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MOD SB 314
TRANSPORTATION REINVESTMENT ZONE ACT

Legislative URL:
SB 314 on nmlegis.gov
Emergency Clause:
Yes
Germane:
N/A
Location:
- OTHER -
Action:
[4] SCORC/SFC-SCORC [18] DP-SFC API.
Issue(s):
,

Related Legislators

Bill Sponsor:

Related Documents

Downloads:
Introduced
SCORC Committee Report
Fiscal Impact Report
Summary

This bill enacts the Transportation Reinvestment Zone Act (Act) and creates a financing mechanism for public transportation infrastructure, including dedicating gross receipts tax (GRT) increments and authorizing the issuance of bonds. The bill is 44 pages long and contains more detail than can be set forth here.

 

Section 2 of the bill states that the purposes of the Act are to: “(1) create a financing mechanism for the development and redevelopment of transportation infrastructure by using a dedicated GRT increment for public infrastructure; and (2) establish certain land use standards that support economic development and job creation, promote public safety, facilitate the movement of persons and materials and enable a local government to establish a zone that is able to collaborate to access other funding sources in order to finance public infrastructure.”

 

Section 3 defines certain terms under the Act, including:

  • “permitted activity,” which means a number of things including acquiring land and making transportation improvements among others;
  • “public improvement,” defined to include, among other things: sanitary sewage and solid waste systems; drainage and flood control systems; water systems; and, parks, recreational facilities, and open space areas;
  • “transportation improvement,” which means publicly owned infrastructure “that significantly improves the mobility of people within a transportation reinvestment zone” and includes all modes of transportation or transportation facilities;
  • “transportation reinvestment zone” means a special district formed pursuant to the Act; and,
  • “transportation reinvestment zone board” means the governing body of the county or the municipality that controls and oversees the activities of the transportation reinvestment zone.

 

Section 4 sets forth the process and requirements for the formation of a Transportation Reinvestment Zone (TRZ), including the vote needed by the governing body and specifics of that body’s resolution creating the Zone, including approving a TRZ plan and dedicating all GRT increments proposed to secure gross receipts tax increment bonds. The Act will allow the governing body to make changes in the resolution to its zoning ordinances, master plan, building codes and other ordinances or codes as needed with respect to maximum density development, expedited subdivision procedures, expedited approval processes for development plans and construction document review for building permits (unless the ordinances and rules of the governing body require a separate action to make those changes). Section 5 describes the contents of the TRZ plans.

 

Section 6 requires that transportation improvements be “integrated with associated proposed changes to land-use plans to generate development or redevelopment by improving access to manufacturing and industrial areas, employment centers, retail centers and housing.”

 

Sections 7, 8 and 9 address requirements for legal notices regarding the formation of a TRZ, the governance of a TRZ and open meeting and records requirements.

 

Section 10 sets forth the powers of a TRZ and includes a number of powers relating to entering into contracts, agreements and other legal documents; the TRZ’s finances; and land use within the TRZ. It includes the power to issue bonds. The bill specifically excludes the power of eminent domain.

 

Section 11 allows that a portion of certain gross receipts tax increments collected within the TRZ may be dedicated to secure GRT increment bonds and allows the creation of a fund to receive those GRT revenues dedicated for the TRZ.

 

Section 12 describes the TRZ’s bonding authority and Section 13 gives it authority to issue refunding bonds. Section 14 sets forth additional limits for the TRZ’s bonding authority and Section 15 provides that the bonds and any income from the bonds are tax exempt from any State or local taxes.

 

Other sections address:

  • accounting procedures;
  • modifying TRZ plans and boundaries;
  • terminating a TRZ; and,
  • not including areas that are already part of a tax increment development district (TIDD).

 

A potential concern with respect to this bill is that the TRZs may be similar to TIDDs in that they might facilitate development by reducing the risk to developers and cause a reduction in taxes for the cities and counties that would otherwise receive the incremental taxes resulting from development.

 

Date of Summary:  1/30/2013