NM
New Mexico House Bill HB240

New Mexico 2025 Regular Session

New Mexico House Bill HB240 Compare Versions

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1-HB 240
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28+HOUSE BILL 240
29+57
30+TH LEGISLATURE
31+-
32+
33+STATE
34+
35+OF
36+
37+NEW
38+
39+MEXICO
40+
41+-
42+ FIRST SESSION
43+,
44+
45+2025
46+INTRODUCED BY
47+Susan K. Herrera and Kristina Ortez and Dayan Hochman-Vigil
48+and Anita Gonzales and Sarah Silva
49+ENDORSED BY THE NEW MEXICO FINANCE AUTHORITY
50+OVERSIGHT COMMITTEE
2851 AN ACT
2952 RELATING TO THE DRINKING WATER STATE REVOLVING LOAN FUND ACT;
30-ALLOWING THE NEW MEXICO FINANCE AUTHORITY TO PROVIDE GRANTS
31-FOR THE CONSTRUCTION OR REHABILITATION OF DRINKING WATER
53+ALLOWING THE NEW MEXICO FINANCE AUTHORITY TO PROVIDE GRANTS FOR
54+THE CONSTRUCTION OR REHABILITATION OF DRINKING WATER
3255 FACILITIES; REQUIRING THE NEW MEXICO FINANCE AUTHORITY, IN
3356 COOPERATION WITH THE DEPARTMENT OF ENVIRONMENT, TO PROVIDE
34-ANNUAL REPORTS ON THE DRINKING WATER STATE REVOLVING LOAN
35-FUND; REDISTRIBUTING DUTIES HELD BETWEEN THE NEW MEXICO
36-FINANCE AUTHORITY AND THE DEPARTMENT OF ENVIRONMENT;
37-EXTENDING REPAYMENT PERIOD REQUIREMENTS FOR LOANS MADE
38-PURSUANT TO THE DRINKING WATER STATE REVOLVING LOAN FUND ACT;
39-RENEWING THE AUTHORITY OF THE NEW MEXICO FINANCE AUTHORITY TO
40-TRANSFER UP TO ONE-THIRD OF CERTAIN GRANTS TO THE DRINKING
41-WATER STATE REVOLVING LOAN FUND AND TO THE WASTEWATER
42-FACILITY CONSTRUCTION LOAN FUND.
43-BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
44-SECTION 1. Section 6-21A-3 NMSA 1978 (being Laws 1997,
45-Chapter 144, Section 3, as amended) is amended to read:
46-"6-21A-3. DEFINITIONS.--As used in the Drinking Water
47-State Revolving Loan Fund Act:
48-A. "authority" means the New Mexico finance
49-authority;
50-B. "department" means the department of
51-environment; HB 240
52-Page 2
57+ANNUAL REPORTS ON THE DRINKING WATER STATE REVOLVING LOAN FUND;
58+REDISTRIBUTING DUTIES HELD BETWEEN THE NEW MEXICO FINANCE
59+AUTHORITY AND THE DEPARTMENT OF ENVIRONMENT; EXTENDING
60+REPAYMENT PERIOD REQUIREMENTS FOR LOANS MADE PURSUANT TO THE
61+DRINKING WATER STATE REVOLVING LOAN FUND ACT; RENEWING THE
62+AUTHORITY OF THE NEW MEXICO FINANCE AUTHORITY TO TRANSFER UP TO
63+ONE-THIRD OF CERTAIN GRANTS TO THE DRINKING WATER STATE
64+REVOLVING LOAN FUND AND TO THE WASTEWATER FACILITY CONSTRUCTION
65+LOAN FUND.
66+.229002.2SA underscored material = new
67+[bracketed material] = delete
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93+BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
94+SECTION 1. Section 6-21A-3 NMSA 1978 (being Laws 1997,
95+Chapter 144, Section 3, as amended) is amended to read:
96+"6-21A-3. DEFINITIONS.--As used in the Drinking Water
97+State Revolving Loan Fund Act:
98+A. "authority" means the New Mexico finance
99+authority;
100+B. "department" means the department of
101+environment;
78102 C. "drinking water facility construction project"
79103 means the acquisition, design, construction, improvement,
80104 expansion, repair or rehabilitation of all or part of any
81-structure, facility or equipment necessary for a drinking
82-water system or water supply system;
105+structure, facility or equipment necessary for a drinking water
106+system or water supply system;
83107 D. "drinking water supply facility" means any
84-structure, facility or equipment necessary for a drinking
85-water system or water supply system;
108+structure, facility or equipment necessary for a drinking water
109+system or water supply system;
86110 E. "federal Safe Drinking Water Act" means the
87111 federal Safe Drinking Water Act as amended in 1996 and its
88112 subsequent amendments or successor provisions;
89-F. "financial assistance" means loans, the
90-purchase or refinancing of debt obligation of a local
91-authority at an interest rate that is less than or equal to
92-the market interest rate in any case in which a debt
93-obligation is incurred after July 1, 1993, loan guarantees,
94-grants, bond insurance or security for revenue bonds issued
95-by the authority;
96-G. "fund" means the drinking water state revolving
97-loan fund;
98-H. "local authority" means any municipality,
99-county, incorporated county, sanitation district, water and
100-sanitation district or any similar district, public or
101-private water cooperative or association or any similar
102-organization, public or private community water system or HB 240
103-Page 3
113+[E.] F. "financial assistance" means loans, the
114+purchase or refinancing of debt obligation of a local authority
115+at an interest rate that is less than or equal to the market
116+interest rate in any case in which a debt obligation is
117+incurred after July 1, 1993, loan guarantees, grants , bond
118+.229002.2SA
119+- 2 - underscored material = new
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129-nonprofit noncommunity water system or any other agency
130-created pursuant to a joint powers agreement acting on behalf
131-of any entity listed in this subsection with a publicly owned
132-drinking water system or water supply system that qualifies
133-as a community water system or nonprofit noncommunity system
134-as defined by the federal Safe Drinking Water Act. "Local
135-authority" does not include systems owned by federal
136-agencies; and
137-I. "operate and maintain" means to perform all
138-necessary activities, including the replacement of equipment
139-or appurtenances, to assure the dependable and economical
140-function of a drinking water facility in accordance with its
141-intended purpose."
146+insurance or security for revenue bonds issued by the
147+authority;
148+[F.] G. "fund" means the drinking water state
149+revolving loan fund;
150+[G.] H. "local authority" means any municipality,
151+county, incorporated county, sanitation district, water and
152+sanitation district or any similar district, public or private
153+water cooperative or association or any similar organization,
154+public or private community water system or nonprofit
155+noncommunity water system or any other agency created pursuant
156+to a joint powers agreement acting on behalf of any entity
157+listed in this subsection with a publicly owned drinking water
158+system or water supply system that qualifies as a community
159+water system or nonprofit noncommunity system as defined by the
160+federal Safe Drinking Water Act. "Local authority" does not
161+include systems owned by federal agencies; and
162+[H.] I. "operate and maintain" means to perform all
163+necessary activities, including the replacement of equipment or
164+appurtenances, to assure the dependable and economical function
165+of a drinking water facility in accordance with its intended
166+purpose [and
167+I. "Safe Drinking Water Act" means the federal Safe
168+Drinking Water Act as amended in 1996 and its subsequent
169+amendments or successor provisions ]."
142170 SECTION 2. Section 6-21A-4 NMSA 1978 (being Laws 1997,
143-Chapter 144, Section 4, as amended) is amended to read:
144-"6-21A-4. FUND CREATED--ADMINISTRATION.--
145-A. There is created in the authority a revolving
146-loan fund to be known as the "drinking water state revolving
147-loan fund", which shall be administered by the authority.
148-The authority is authorized to establish procedures required
149-to administer the fund in accordance with the federal Safe
150-Drinking Water Act and state laws. The authority and the
151-department shall, whenever possible, coordinate application
152-procedures and funding cycles with the New Mexico Community
153-Assistance Act. HB 240
154-Page 4
171+.229002.2SA
172+- 3 - underscored material = new
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180-B. The following shall be deposited directly in
181-the fund:
182-(1) grants from the federal government or
183-its agencies allotted to the state for capitalization of the
184-fund;
199+Chapter 144, Section 4, as amended) is amended to read:
200+"6-21A-4. FUND CREATED--ADMINISTRATION.--
201+A. There is created in the authority a revolving
202+loan fund to be known as the "drinking water state revolving
203+loan fund", which shall be administered by the authority. The
204+authority is authorized to establish procedures required to
205+administer the fund in accordance with the federal Safe
206+Drinking Water Act and state laws. The authority and the
207+department shall, whenever possible, coordinate application
208+procedures and funding cycles with the New Mexico Community
209+Assistance Act.
210+B. The following shall be deposited directly in the
211+fund:
212+(1) grants from the federal government or its
213+agencies allotted to the state for capitalization of the fund;
185214 (2) funds as appropriated by the legislature
186215 to implement the provisions of the Drinking Water State
187-Revolving Loan Fund Act or to provide state matching funds
188-that are required by the terms of any federal grant under the
216+Revolving Loan Fund Act or to provide state matching funds that
217+are required by the terms of any federal grant under the
189218 federal Safe Drinking Water Act;
190219 (3) loan principal, interest and penalty
191220 payments if required by the terms of any federal grant under
192221 the federal Safe Drinking Water Act;
193222 (4) any other public or private money
194223 dedicated to the fund; and
195-(5) revenue transferred from other state
196-revolving funds.
197-C. Money in the fund is appropriated for
198-expenditure by the authority in a manner consistent with the
199-terms and conditions of the federal capitalization grants and
200-the federal Safe Drinking Water Act and may be used:
201-(1) to provide loans and grants for the
202-construction or rehabilitation of drinking water facilities;
203-(2) to buy or refinance the debt obligation
204-of a local authority at an interest rate that is less than or HB 240
205-Page 5
224+.229002.2SA
225+- 4 - underscored material = new
226+[bracketed material] = delete
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252+(5) revenue transferred from other state
253+revolving funds.
254+C. Money in the fund is appropriated for
255+expenditure by the authority in a manner consistent with the
256+terms and conditions of the federal capitalization grants and
257+the federal Safe Drinking Water Act and may be used:
258+(1) to provide loans and grants for the
259+construction or rehabilitation of drinking water facilities;
260+(2) to buy or refinance the debt obligation of
261+a local authority at an interest rate that is less than or
231262 equal to the market interest rate in any case in which a debt
232263 obligation is incurred after July 1, 1993;
233264 (3) to guarantee or purchase insurance for
234265 obligations of local authorities to improve credit market
235266 access or reduce interest rates;
236267 (4) to provide loan guarantees for similar
237268 revolving funds established by local authorities; and
238-(5) to provide a source of revenue or
239-security for the repayment of principal and interest on bonds
240-issued by the authority if the proceeds of the bonds are
241-deposited in the fund or if the proceeds of the bonds are
242-used to make loans to local authorities to the extent
243-provided in the terms of the federal grant.
269+(5) to provide a source of revenue or security
270+for the repayment of principal and interest on bonds issued by
271+the authority if the proceeds of the bonds are deposited in the
272+fund or if the proceeds of the bonds are used to make loans to
273+local authorities to the extent provided in the terms of the
274+federal grant.
244275 D. If needed to cover administrative expenses,
245-pursuant to procedures established by the authority and to
246-the extent permitted by federal regulations, the authority
247-may impose and collect a fee from each local authority that
248-receives financial assistance from the fund, which fee shall
249-be used solely for the costs of administering the fund and
250-which fee shall be kept outside the fund.
251-E. Money not currently needed for the operation of
252-the fund or otherwise dedicated may be invested pursuant to
253-the New Mexico Finance Authority Act and all interest earned
254-on such investments shall be credited to the fund. Money
255-remaining in the fund at the end of the fiscal year shall not HB 240
256-Page 6
276+pursuant to procedures established by the authority and to the
277+.229002.2SA
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305+extent permitted by federal regulations , the authority may
306+impose and collect a fee from each local authority that
307+receives financial assistance from the fund, which fee shall be
308+used solely for the costs of administering the fund and which
309+fee shall be kept outside the fund.
310+E. Money not currently needed for the operation of
311+the fund or otherwise dedicated may be invested pursuant to the
312+New Mexico Finance Authority Act and all interest earned on
313+such investments shall be credited to the fund. Money
314+remaining in the fund at the end of the fiscal year shall not
282315 revert to the general fund but shall accrue to the credit of
283316 the fund.
284317 F. The authority shall maintain full authority for
285-the operation of the fund in accordance with applicable
286-federal and state law, including, in cooperation with the
287-department, ensuring the loan recipients are on the state
288-priority list or otherwise satisfy the federal Safe Drinking
289-Water Act requirements.
318+the operation of the fund in accordance with applicable federal
319+and state law, including, in cooperation with the department,
320+ensuring the loan recipients are on the state priority list or
321+otherwise satisfy the federal Safe Drinking Water Act
322+requirements.
290323 G. The authority shall establish fiscal controls
291-and accounting procedures that are sufficient to assure
292-proper accounting for fund payments, disbursements and
293-balances and shall provide, in cooperation with the
294-department, an annual report and an annual independent audit
295-on the fund to the governor and to the United States
296-environmental protection agency as required by the federal
297-Safe Drinking Water Act."
298-SECTION 3. Section 6-21A-5 NMSA 1978 (being Laws 1997,
299-Chapter 144, Section 5) is amended to read:
300-"6-21A-5. LOAN PROGRAM--ADMINISTRATION.--
301-A. The authority shall establish a program to
302-provide financial assistance from the fund to local
303-authorities, individually or jointly, for acquisition,
304-construction or modification of drinking water facilities.
305-The authority is authorized to enter into memoranda of
306-understanding, contracts and other agreements to carry out HB 240
307-Page 7
324+and accounting procedures that are sufficient to assure proper
325+accounting for fund payments, disbursements and balances and
326+shall provide, in cooperation with the department, [a biannual ]
327+an annual report and an annual independent audit on the fund to
328+the governor and to the United States environmental protection
329+agency as required by the federal Safe Drinking Water Act."
330+.229002.2SA
331+- 6 - underscored material = new
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333-the provisions of the Drinking Water State Revolving Loan
334-Fund Act, including memoranda of understanding, contracts and
335-agreements with federal agencies, the department, local
336-authorities and other parties.
337-B. The department shall adopt, by rule, a system
338-for the ranking of drinking water facility construction
339-projects requesting financial assistance and for the
340-development of a priority list that will be part of the
341-annual intended use plan, as required by the federal Safe
358+SECTION 3. Section 6-21A-5 NMSA 1978 (being Laws 1997,
359+Chapter 144, Section 5) is amended to read:
360+"6-21A-5. LOAN PROGRAM--ADMINISTRATION.--
361+A. The authority shall establish a program to
362+provide financial assistance from the fund to local
363+authorities, individually or jointly, for acquisition,
364+construction or modification of drinking water facilities. The
365+authority is authorized to enter into memoranda of
366+understanding, contracts and other agreements to carry out the
367+provisions of the Drinking Water State Revolving Loan Fund Act,
368+including [but not limited to ] memoranda of understanding,
369+contracts and agreements with federal agencies, the department,
370+local authorities and other parties.
371+B. The department shall adopt, by [regulation ]
372+rule, a system for the ranking of drinking water facility
373+construction projects requesting financial assistance and for
374+the development of a priority list [which ] that will be part of
375+the annual intended use plan, as required by the federal Safe
342376 Drinking Water Act.
343-C. The department shall adopt rules or internal
344-procedures addressing the mechanism for the preparation of
345-the annual intended use plan and the content of the plan and
346-shall prepare the plan, with the assistance of the authority,
347-as required by the federal Safe Drinking Water Act and the
348-federal capitalization grant agreement. The department shall
349-review all proposals for drinking water facility construction
350-projects, including project plans and specifications for
351-compliance with the requirements of the federal Safe Drinking
352-Water Act and the requirements of state laws and rules
353-governing the construction and operation of drinking water
354-supply facilities. The department also shall determine
355-whether a local authority has demonstrated adequate technical
356-and managerial capability to operate the drinking water
357-supply facility for its useful life in compliance with the HB 240
358-Page 8
377+C. The department shall adopt [regulations ] rules
378+or internal procedures addressing the mechanism for the
379+preparation of the annual intended use plan and the content of
380+[such] the plan and shall prepare [such ] the plan, with the
381+assistance of the authority, as required by the federal Safe
382+.229002.2SA
383+- 7 - underscored material = new
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410+Drinking Water Act and the federal capitalization grant
411+agreement. The department shall review all proposals for
412+drinking water facility construction projects, including [but
413+not limited to] project plans and specifications for compliance
414+with the requirements of the federal Safe Drinking Water Act
415+and the requirements of state laws and [regulations ] rules
416+governing the construction and operation of drinking water
417+supply facilities. The department also shall determine whether
418+a local authority has demonstrated adequate technical and
419+managerial capability to operate the drinking water supply
420+facility for its useful life in compliance with the
384421 requirements of the federal Safe Drinking Water Act and with
385-the requirements of state laws and rules governing the
386-operation of drinking water supply facilities.
422+the requirements of state laws and [regulations ] rules
423+governing the operation of drinking water supply facilities.
387424 D. The department and the authority shall enter
388-into an agreement for the purpose of describing and
389-allocating duties and responsibilities with respect to
390-monitoring the construction of drinking water facility
391-construction projects that have been provided financial
392-assistance pursuant to the provisions of the Drinking Water
393-State Revolving Loan Fund Act to ensure compliance with the
394-requirements of the federal Safe Drinking Water Act and with
395-the requirements of state laws and rules governing
396-construction and operation of drinking water supply
397-facilities.
398-E. The department shall adopt rules or internal
399-procedures establishing the criteria and method for the
400-distribution of federal annual capitalization grant funds
401-between the fund and the nonproject activities, also known as
402-set-asides, allowed by the federal Safe Drinking Water Act
403-and for the description in the intended use plan and annual
404-report of the financial programmatic status of the nonproject
405-activities, also known as set-asides, allowed by the federal
406-Safe Drinking Water Act.
407-F. The authority, with the assistance of the
408-department, shall establish procedures to identify HB 240
409-Page 9
425+into an agreement for the purpose of describing and allocating
426+duties and responsibilities with respect to monitoring the
427+construction of drinking water facility construction projects
428+that have been provided financial assistance pursuant to the
429+provisions of the Drinking Water State Revolving Loan Fund Act
430+to ensure compliance with the requirements of the federal Safe
431+Drinking Water Act and with the requirements of state laws and
432+[regulations] rules governing construction and operation of
433+drinking water supply facilities.
434+E. The department shall adopt [regulations ] rules
435+.229002.2SA
436+- 8 - underscored material = new
437+[bracketed material] = delete
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463+or internal procedures establishing the criteria and method for
464+the distribution of federal annual capitalization grant funds
465+between the fund and the nonproject activities [(set-asides) ],
466+also known as set-asides , allowed by the federal Safe Drinking
467+Water Act and for the description in the intended use plan and
468+annual report of the financial programmatic status of the
469+nonproject activities [(set-asides) ], also known as set-asides ,
470+allowed by the federal Safe Drinking Water Act.
471+F. The authority, with the assistance of the
472+department, shall establish procedures to identify
435473 affordability criteria for a disadvantaged community and to
436474 extend a program to assist such communities.
437475 G. The department shall set up separate accounts
438-outside the fund to use for nonproject activities, also known
439-as set-asides, authorized under the federal Safe Drinking
440-Water Act, Sections 1452(g) and 1452(k), and the authority
441-shall set up a separate account outside the fund for
442-administration of the fund. The department shall also
476+outside the fund to use for nonproject [(set-asides) ]
477+activities, also known as set-asides , authorized under the
478+federal Safe Drinking Water Act, Sections 1452(g) and 1452(k),
479+and the authority shall set up a separate account outside the
480+fund for administration of the fund. The department shall also
443481 provide the additional match for federal Safe Drinking Water
444482 Act, Section 1452(g)(2) activities.
445-H. The authority shall prepare and submit
446-applications for federal capitalization grants to the United
447-States environmental protection agency as required by the
448-federal Safe Drinking Water Act."
483+H. The [department] authority shall prepare and
484+submit applications for federal capitalization grants to the
485+United States environmental protection agency as required by
486+the federal Safe Drinking Water Act."
449487 SECTION 4. Section 6-21A-6 NMSA 1978 (being Laws 1997,
450-Chapter 144, Section 6) is amended to read:
451-"6-21A-6. FINANCIAL ASSISTANCE--CRITERIA.--
452-A. Financial assistance shall be provided only to
453-local authorities that:
454-(1) meet the requirements for financial
455-capability set by the authority to assure sufficient revenues
456-to operate and maintain the drinking water facility for its
457-useful life and to repay the financial assistance;
458-(2) appear on the priority list for the
459-fund, developed and maintained by the department, regardless HB 240
460-Page 10
488+.229002.2SA
489+- 9 - underscored material = new
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486-of rank on such list;
516+Chapter 144, Section 6) is amended to read:
517+"6-21A-6. FINANCIAL ASSISTANCE--CRITERIA.--
518+A. Financial assistance shall be provided only to
519+local authorities that:
520+(1) meet the requirements for financial
521+capability set by the authority to assure sufficient revenues
522+to operate and maintain the drinking water facility for its
523+useful life and to repay the financial assistance;
524+(2) appear on the priority list for the fund,
525+developed and maintained by the department, regardless of rank
526+on such list;
487527 (3) are considered by the authority and the
488528 department ready to proceed with the project;
489529 (4) demonstrate adequate technical and
490530 managerial capability to operate the drinking water facility
491531 for its useful life; and
492-(5) meet other requirements established by
493-the authority and state laws, including procurement,
494-recordkeeping and accounting.
532+(5) meet other requirements established by the
533+authority and state laws, including [but not limited to ]
534+procurement, recordkeeping and accounting.
495535 B. Loans from the fund shall be made by the
496-authority only to local authorities that establish one or
497-more dedicated sources of revenue to repay the money received
498-from the fund and to provide for operation, maintenance and
536+authority only to local authorities that establish one or more
537+dedicated sources of revenue to repay the money received from
538+the fund and to provide for operation, maintenance and
499539 equipment replacement expenses of the drinking water facility
500540 proposed for funding.
501-C. The authority, with assistance from the
502-department, shall establish procedures addressing methods to
503-provide financial assistance to local authorities in
504-accordance with the criteria set forth in the federal Safe
505-Drinking Water Act, Section 1452(a)(3).
506-D. Each loan made by the authority shall provide
507-that repayment of the loan shall begin not later than
508-eighteen months after completion of construction of the
509-drinking water facility for which the loan was made and shall
510-be repaid in full no later than thirty years after completion HB 240
511-Page 11
541+.229002.2SA
542+- 10 - underscored material = new
543+[bracketed material] = delete
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537-of the construction, except in the case of a disadvantaged
538-community. The authority may extend the term of the loan to
539-a disadvantaged community, as long as the extended term:
540-(1) terminates not later than the date that
541-is forty years after the date of project completion; and
569+C. The authority, with assistance from the
570+department, shall establish procedures addressing methods to
571+provide financial assistance to local authorities in accordance
572+with the criteria set forth in the federal Safe Drinking Water
573+Act, Section 1452(a)(3).
574+D. Each loan made by the authority shall provide
575+that repayment of the loan shall begin not later than [one
576+year] eighteen months after completion of construction of the
577+drinking water facility for which the loan was made and shall
578+be repaid in full no later than [twenty ] thirty years after
579+completion of the construction, except in the case of a
580+disadvantaged community [in which case ]. The authority may
581+extend the term of the loan to a disadvantaged community , as
582+long as the extended term:
583+(1) terminates not later than the date that is
584+[thirty] forty years after the date of project completion; and
542585 (2) does not exceed the expected design life
543586 of the project.
544587 E. Financial assistance may be made with an annual
545-interest rate that is less than a market rate as determined
546-by procedures established by the authority and reported
547-annually in the intended use plan prepared by the department,
548-with the assistance of the authority.
588+interest rate [which] that is less than a market rate as
589+determined by procedures established by the authority and
590+reported annually in the intended use plan prepared by the
591+department, with the assistance of the authority.
549592 F. Financial assistance pursuant to the Drinking
550593 Water State Revolving Loan Fund Act shall not be given to a
551-local authority if the authority determines that the
552-financial assistance is for a drinking water facility to be
553-constructed in fulfillment or partial fulfillment of
554-requirements made of a subdivider under the provisions of the
555-Land Subdivision Act or the New Mexico Subdivision Act.
556-G. Financial assistance may be made to local
557-authorities that employ or contract with a registered
558-professional engineer to provide and be responsible for
559-engineering services on the drinking water facility. Such
560-services, if the authority determines the services are
561-needed, may include an engineering report, facility plans, HB 240
562-Page 12
594+.229002.2SA
595+- 11 - underscored material = new
596+[bracketed material] = delete
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588-environmental evaluations, construction contract documents,
589-supervision of construction and start-up services.
622+local authority if the authority determines that the financial
623+assistance is for a drinking water facility to be constructed
624+in fulfillment or partial fulfillment of requirements made of a
625+subdivider under the provisions of the Land Subdivision Act or
626+the New Mexico Subdivision Act.
627+G. Financial assistance may be made to local
628+authorities that employ or contract with a registered
629+professional engineer to provide and be responsible for
630+engineering services on the drinking water facility. Such
631+services, if the authority determines [such ] the services are
632+needed, may include [but are not limited to ] an engineering
633+report, facility plans, environmental evaluations, construction
634+contract documents, supervision of construction and start-up
635+services.
590636 H. Financial assistance shall be made only for
591637 eligible items as described by authority procedures and as
592638 identified pursuant to the federal Safe Drinking Water Act."
593639 SECTION 5. Section 6-21A-7 NMSA 1978 (being Laws 1997,
594640 Chapter 144, Section 7) is amended to read:
595641 "6-21A-7. DEPARTMENT DUTIES--POWERS.--
596-A. The department with the approval of the
597-governor and as authorized in the intended use plan may
598-transfer up to one-third of a federal wastewater facility
599-construction loan fund capitalization grant to the drinking
600-water state revolving loan fund; provided the Wastewater
601-Facility Construction Loan Act is amended to allow for such
602-transfer. Before the department makes the transfer, the
603-department shall:
604-(1) outline the transfer in the applicable
605-intended use plans for both the drinking water state
606-revolving loan fund and the wastewater facility construction
607-loan fund; and
608-(2) report the intended transfer to the
609-legislature.
610-B. The department in the annual intended use plan
611-shall certify to the United States environmental protection
612-agency the progress made regarding operator certification and HB 240
613-Page 13
642+A. The department with the approval of the governor
643+and as authorized in the intended use plan may transfer up to
644+one-third of a federal wastewater facility construction loan
645+fund capitalization grant to the drinking water state revolving
646+.229002.2SA
647+- 12 - underscored material = new
648+[bracketed material] = delete
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639-capacity development programs as they relate to the receipt
640-of capitalization grants available from the environmental
674+loan fund; provided the Wastewater Facility Construction Loan
675+Act is amended to allow for such transfer. [This provision is
676+available one year after the receipt of the first full
677+capitalization grant for the Drinking Water State Revolving
678+Loan Fund Act and will expire with the capitalization grant of
679+the year 2002.] Before the department makes the transfer, the
680+department shall:
681+(1) outline the transfer in the applicable
682+intended use plans for both the drinking water state revolving
683+loan fund and the wastewater facility construction loan fund;
684+and
685+(2) report the intended transfer to the
686+legislature.
687+B. The department in the annual intended use plan
688+shall certify to the United States environmental protection
689+agency the progress made regarding operator certification and
690+capacity development programs as they relate to the receipt of
691+capitalization grants available from the environmental
641692 protection agency under the federal Safe Drinking Water Act."
642693 SECTION 6. Section 6-21A-8 NMSA 1978 (being Laws 1997,
643694 Chapter 144, Section 8) is amended to read:
644695 "6-21A-8. AUTHORITY DUTIES--POWERS.--
645696 A. The authority with the approval of the governor
646697 and as authorized in the intended use plan may transfer up to
647-one-third of a federal drinking water state revolving loan
648-fund capitalization grant to the wastewater facility
649-construction loan fund. Before the authority makes the
650-transfer, the authority shall:
651-(1) outline the transfer in the applicable
652-intended use plans for both the drinking water state
653-revolving loan fund and the wastewater facility construction
654-loan fund; and
655-(2) report the intended transfer to the
656-legislature.
657-B. The authority has the power:
658-(1) to foreclose upon or attach any drinking
659-water facility, property or interest in the facility pledged,
660-mortgaged or otherwise available as security for a project
661-financed in whole or in part pursuant to the Drinking Water
662-State Revolving Loan Fund Act in the event of a default by a
663-local authority; HB 240
664-Page 14
698+.229002.2SA
699+- 13 - underscored material = new
700+[bracketed material] = delete
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690-(2) to acquire and hold title to or
691-leasehold interest in real and personal property and to sell,
692-convey or lease that property for the purpose of satisfying a
693-default or enforcing the provisions of a loan agreement; and
694-(3) to enforce its rights by suit or
695-mandamus or may use all other available remedies under state
696-law in the event of default by a local authority.
697-C. The authority has the power to issue bonds or
698-refunding bonds pursuant to the New Mexico Finance Authority
699-Act and the Drinking Water State Revolving Loan Fund Act when
700-the authority determines that a bond issue is required or
701-desirable to implement the provisions of the Drinking Water
702-State Revolving Loan Fund Act.
703-D. As security for the payment of the principal
704-and interest on bonds issued by the authority, the authority
705-is authorized to pledge, transfer and assign:
706-(1) any obligations of each local authority,
707-payable to the authority;
708-(2) the security for the local authority
709-obligations;
710-(3) any grant, subsidy or contribution from
711-the United States or any of its agencies or
712-instrumentalities; or
713-(4) any income, revenues, funds or other
714-money of the authority from any other source appropriated or HB 240
715-Page 15
726+one-third of a federal drinking water state revolving loan fund
727+capitalization grant to the wastewater facility construction
728+loan fund. [This provision is available one year after the
729+receipt of the first full capitalization grant and will expire
730+with the capitalization grant of the year 2002. ] Before the
731+authority makes the transfer, the authority shall:
732+(1) outline the transfer in the applicable
733+intended use plans for both the drinking water state revolving
734+loan fund and the wastewater facility construction loan fund;
735+and
736+(2) report the intended transfer to the
737+legislature.
738+B. The authority [will have ] has the power:
739+(1) to foreclose upon or attach any drinking
740+water facility, property or interest in the facility pledged,
741+mortgaged or otherwise available as security for a project
742+financed in whole or in part pursuant to the Drinking Water
743+State Revolving Loan Fund Act in the event of a default by a
744+local authority;
745+(2) to acquire and hold title to or leasehold
746+interest in real and personal property and to sell, convey or
747+lease that property for the purpose of satisfying a default or
748+enforcing the provisions of a loan agreement; and
749+(3) to enforce its rights by suit or mandamus
750+or may [utilize] use all other available remedies under state
751+.229002.2SA
752+- 14 - underscored material = new
753+[bracketed material] = delete
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779+law in the event of default by a local authority.
780+C. The authority [will have ] has the power to issue
781+bonds or refunding bonds pursuant to the New Mexico Finance
782+Authority Act and the Drinking Water State Revolving Loan Fund
783+Act when the authority determines that a bond issue is required
784+or desirable to implement the provisions of the Drinking Water
785+State Revolving Loan Fund Act.
786+D. As security for the payment of the principal and
787+interest on bonds issued by the authority, the authority is
788+authorized to pledge, transfer and assign:
789+(1) any obligations of each local authority,
790+payable to the authority;
791+(2) the security for the local authority
792+obligations;
793+(3) any grant, subsidy or contribution from
794+the United States or any of its agencies or instrumentalities;
795+or
796+(4) any income, revenues, funds or other money
797+of the authority from any other source appropriated or
741798 authorized for use for the purpose of implementing the
742-provisions of the Drinking Water State Revolving Loan Fund
743-Act, including the fund.
799+provisions of the Drinking Water State Revolving Loan Fund Act,
800+including the fund.
744801 E. The bonds and other obligations issued by the
745-authority shall be issued and delivered in accordance with
746-the provisions of the New Mexico Finance Authority Act and
747-may be sold at any time the authority determines appropriate.
748-The authority may apply the proceeds of the sale of the bonds
749-to:
750-(1) the purposes of the Drinking Water State
751-Revolving Loan Fund Act or the purposes for which the fund
752-may be used;
753-(2) the payment of interest on bonds issued
754-by the authority for a period not to exceed three years from
755-the date of issuance of the bonds; and
756-(3) the payment of all expenses, including
757-publication and printing charges, attorney fees, financial
758-advisory and underwriter fees and premiums or commissions
759-that the authority determines are necessary or advantageous
760-in connection with the recommendation, advertisement, sale,
761-creation and issuance of bonds.
762-F. In the event that money is not available for a
763-loan for a drinking water facility project when application
764-is made, in order to accelerate the completion of any
765-drinking water facility project, the local authority may, HB 240
766-Page 16
802+authority shall be issued and delivered in accordance with the
803+provisions of the New Mexico Finance Authority Act and may be
804+.229002.2SA
805+- 15 - underscored material = new
806+[bracketed material] = delete
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792-with the approval of the authority, obligate itself to
793-provide local funds to pay that portion of the cost of the
794-drinking water facility project that the authority agrees to
795-make available by loan, and the authority may reimburse the
796-amount expended on its behalf by the local authority.
832+sold at any time the authority determines appropriate. The
833+authority may apply the proceeds of the sale of the bonds to:
834+(1) the purposes of the Drinking Water State
835+Revolving Loan Fund Act or the purposes for which the fund may
836+be used;
837+(2) the payment of interest on bonds issued by
838+the authority for a period not to exceed three years from the
839+date of issuance of the bonds; and
840+(3) the payment of all expenses, including
841+publication and printing charges, attorney fees, financial
842+advisory and underwriter fees and premiums or commissions that
843+the authority determines are necessary or advantageous in
844+connection with the recommendation, advertisement, sale,
845+creation and issuance of bonds.
846+F. In the event that [funds are ] money is not
847+available for a loan for a drinking water facility project when
848+application is made, in order to accelerate the completion of
849+any drinking water facility project, the local authority may,
850+with the approval of the authority, obligate [such local
851+authority] itself to provide local funds to pay that portion of
852+the cost of the drinking water facility project that the
853+authority agrees to make available by loan, and the authority
854+may reimburse the amount expended on its behalf by the local
855+authority.
797856 G. Authority members or employees and any person
857+.229002.2SA
858+- 16 - underscored material = new
859+[bracketed material] = delete
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798885 executing bonds issued pursuant to the New Mexico Finance
799-Authority Act and Drinking Water State Revolving Loan Fund
800-Act shall not be liable personally on the bonds or be subject
801-to personal liability or accountability by reason of the
802-issuance of the bonds.
886+Authority Act and Drinking Water State Revolving Loan Fund Act
887+shall not be liable personally on [such ] the bonds or be
888+subject to [any] personal liability or accountability by reason
889+of the issuance [thereof ] of the bonds.
803890 H. All bonds, notes and certificates issued by the
804891 authority shall be special obligations of the authority,
805892 payable solely from the revenue, income, fees or charges that
806893 may, pursuant to the provisions of the New Mexico Finance
807894 Authority Act and the Drinking Water State Revolving Loan Fund
808895 Act, be pledged to the payment of such obligations, and the
809896 bonds, notes or certificates shall not create an obligation,
810897 debt or liability of the state. No breach of any pledge,
811898 obligation or agreement of the authority shall impose a
812-pecuniary liability upon the state or a charge upon its
813-general credit or taxing power."
899+pecuniary liability upon the state or a charge upon its general
900+credit or taxing power."
901+- 17 -
902+.229002.2SA