New Mexico 2025 Regular Session

New Mexico House Bill HB290 Compare Versions

Only one version of the bill is available at this time.

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28	28	HOUSE BILL 290
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30	30	TH LEGISLATURE
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33	33	STATE
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35	35	OF
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37	37	NEW
38	38
39	39	MEXICO
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41	41	-
42	42	FIRST SESSION
43	43	,
44	44
45	45	2025
46	46	INTRODUCED BY
47	47	Andrea Romero and Christine Chandler and Kathleen Cates
48	48	AN ACT
49	49	RELATING TO PUBLIC FINANCE; ENACTING THE VIBRANT COMMUNITIES
50	50	ACT; CREATING THE VIBRANT COMMUNITIES PROGRAM; PROVIDING PUBLIC
51	51	ASSISTANCE TO QUALIFYING ENTITIES FOR THE COMPLETION OF PUBLIC
52	52	PURPOSE PROJECTS UPON APPROPRIATIONS BY THE LEGISLATURE;
53	53	REQUIRING THE DEPARTMENT OF FINANCE AND ADMINISTRATION TO
54	54	ADMINISTER THE PROGRAM; SPECIFYING CONTRACTUAL TERMS; REQUIRING
55	55	REPORTING; PROVIDING A CONTINGENT EFFECTIVE DATE.
56	56	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
57	57	SECTION 1. [NEW MATERIAL] SHORT TITLE.--This act may be
58	58	cited as the "Vibrant Communities Act".
59	59	SECTION 2. [NEW MATERIAL] FINDINGS.--
60	60	A. The legislature finds that without the daily
61	61	contributions and efforts of the thousands of valuable
62	62	nonprofit organizations dedicated to serving communities
63	63	.229038.5 underscored material = new
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90	90	throughout New Mexico, the state would be inundated with
91	91	constant requests for health, human and social services for
92	92	which the state does not have revenue or resources to provide.
93	93	B. The legislature finds that it is a direct,
94	94	tangible benefit to the state, as well as for all residents and
95	95	taxpayers, and that the state receives considerable value in
96	96	return, when nonprofit organizations provide facilities and
97	97	services to the public that the state otherwise cannot provide
98	98	and that nonprofit organizations are not under any legal
99	99	obligation to provide. Nonprofit organizations make
100	100	contributions to the fabric of life in New Mexico that are
101	101	indispensable.
102	102	SECTION 3. [NEW MATERIAL] DEFINITIONS.--As used in the
103	103	Vibrant Communities Act:
104	104	A. "department" means the department of finance and
105	105	administration;
106	106	B. "health council" means a county, tribal or
107	107	regional health council;
108	108	C. "local government" means a county or
109	109	municipality;
110	110	D. "municipality" means any incorporated city, town
111	111	or village;
112	112	E. "program" means the vibrant communities program;
113	113	F. "public assistance" means a grant of public
114	114	funds, a lease of publicly owned real property or any other
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143	143	provision of public funding or assistance that the legislature
144	144	has appropriated or authorized to complete or facilitate a
145	145	public purpose project;
146	146	G. "public purpose" means for the purpose of
147	147	providing facilities or services for the benefit of the public
148	148	health, safety or welfare;
149	149	H. "public purpose project" means a project
150	150	proposed and performed by a qualifying entity to address a
151	151	public purpose within the community in which the project would
152	152	be located; and
153	153	I. "qualifying entity" means an organization that
154	154	has demonstrated to the department that it has been granted
155	155	exemption from the federal income tax by the United States
156	156	commissioner of internal revenue as an organization described
157	157	in Section 501(c)(3) or Section 501(c)(12) of the United States
158	158	Internal Revenue Code of 1986, as amended or renumbered, in the
159	159	conduct of functions described in Section 501(c)(3) or Section
160	160	501(c)(12)."
161	161	SECTION 4. [NEW MATERIAL] VIBRANT COMMUNITIES PROGRAM--
162	162	CREATED.--
163	163	A. The "vibrant communities program" is created
164	164	within the department. The program shall provide public
165	165	assistance to facilitate the development and funding of public
166	166	purpose projects.
167	167	B. The department shall promulgate rules necessary
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196	196	to carry out the provisions of the Vibrant Communities Act and
197	197	to ensure the protection of public funds.
198	198	C. Public assistance shall be provided pursuant to
199	199	the Vibrant Communities Act and subject to legislative
200	200	appropriation and authorization. The department shall not
201	201	transfer, adjust or otherwise use money for the Vibrant
202	202	Communities Act or the program except as directed by the
203	203	legislature.
204	204	SECTION 5. [NEW MATERIAL] VIBRANT COMMUNITIES PROGRAM--
205	205	PRELIMINARY APPLICATIONS--LEGISLATIVE RECOMMENDATIONS.--
206	206	A. Annually, the department shall solicit
207	207	preliminary applications for the program. Preliminary
208	208	applications shall be submitted by qualifying entities that are
209	209	requesting public assistance to finance a public purpose
210	210	project pursuant to the Vibrant Communities Act.
211	211	B. Applications shall include:
212	212	(1) a description of the public purpose that
213	213	the project will address, including how the public purpose
214	214	relates to one or more of the priorities identified by a local
215	215	government; an Indian nation, tribe or pueblo; a council of
216	216	governments; or a health council;
217	217	(2) expected deliverables or outcomes
218	218	associated with the public purpose project;
219	219	(3) benchmarks to evaluate the achievement of
220	220	a public purpose;
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249	249	(4) a description of the population served by
250	250	the public purpose project;
251	251	(5) any state, local, tribal, private or other
252	252	actors that may have involvement or a known interest in a
253	253	public purpose project;
254	254	(6) the amount of public assistance being
255	255	requested and the value of the available private assets or any
256	256	available grants or other funding sources available;
257	257	(7) a conflict-of-interest statement that
258	258	includes all elected officials or those related to elected
259	259	officials that are on the board or staff of the applying
260	260	qualifying entity; and
261	261	(8) any other forms or information as
262	262	determined by the department.
263	263	C. A preliminary application shall be on a form
264	264	provided by the department and shall require such other
265	265	information as the department deems necessary.
266	266	D. By April 30 of each year, the department shall
267	267	review preliminary applications. Of those preliminary
268	268	applications that have complied with the application process
269	269	and the requirements thereof, the department shall provide to
270	270	the legislature and the governor a list of proposed public
271	271	purpose projects. The list shall include the locations of the
272	272	proposed public purpose projects and the public assistance that
273	273	is requested. The department shall differentiate the projects
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302	302	based on the demonstrated need within the community in which
303	303	the proposed public purpose project would be located and the
304	304	proposed safeguards to ensure responsible use of public
305	305	assistance.
306	306	SECTION 6. [NEW MATERIAL] VIBRANT COMMUNITIES PROGRAM--
307	307	APPROVAL--TERMS.--
308	308	A. The legislature shall appropriate money for the
309	309	program by specific purpose and specific amount per public
310	310	purpose project. Upon legislative appropriation and
311	311	authorization of a public purpose project, the department
312	312	shall:
313	313	(1) enter into contracts with a qualifying
314	314	entity to provide public assistance for a public purpose
315	315	project;
316	316	(2) make, execute and enforce all contracts
317	317	necessary to carry out the provisions of the Vibrant
318	318	Communities Act;
319	319	(3) provide public assistance to a qualifying
320	320	entity for a public purpose project;
321	321	(4) enter into agreements with other state
322	322	agencies and local governments, as necessary;
323	323	(5) pursue legal remedies available in the
324	324	event that a qualifying entity breaches a contract; and
325	325	(6) require and request all other information
326	326	needed to ensure that qualifying entities are in compliance
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355	355	with the contracts entered into pursuant to the Vibrant
356	356	Communities Act.
357	357	B. Public assistance shall be provided pursuant to
358	358	the legislative appropriation and the contract entered into
359	359	between a qualifying entity and the department. A contract
360	360	entered into pursuant to this subsection shall include:
361	361	(1) a statement that a public purpose project
362	362	shall comply with applicable state, local and federal law,
363	363	including requiring that the qualifying entity and all
364	364	employees of the qualifying entity shall be subject to the
365	365	Governmental Conduct Act;
366	366	(2) a statement that the state may seek
367	367	reimbursement or recapture of funds or possession of leased or
368	368	provided property in the event that a public purpose project
369	369	fails to comply with the purpose of the Vibrant Communities
370	370	Act;
371	371	(3) a statement that the qualifying entity
372	372	shall be subject to ongoing reporting on the progress of a
373	373	public purpose project or the public purpose served by a public
374	374	purpose project;
375	375	(4) defined roles and responsibilities of the
376	376	department and the qualifying entity;
377	377	(5) a finance plan detailing the issuance of
378	378	public assistance and the obligations of the qualifying entity
379	379	to continue to receive appropriated public assistance;
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408	408	(6) a specification of how debts incurred on
409	409	behalf of the qualifying entity will be repaid;
410	410	(7) a requirement that the qualifying entity
411	411	comply with the Audit Act;
412	412	(8) if applicable, terms of ownership of the
413	413	property or asset and adequate security to ensure perpetual
414	414	public purpose use for the life of the project;
415	415	(9) if applicable, a statement that the state
416	416	shall have a reversionary interest in the property leased to
417	417	the qualifying entity in the event that the qualifying entity
418	418	ceases to exist or serve a public purpose in the performance of
419	419	the public purpose project;
420	420	(10) if applicable, a statement that the
421	421	department shall maintain a lien on the property or asset until
422	422	the terms of the contract are fulfilled; and
423	423	(11) all other terms the department deems
424	424	necessary and proper to protect public funds.
425	425	SECTION 7. [NEW MATERIAL] VIBRANT COMMUNITIES PROGRAM--
426	426	PUBLIC PURPOSE PROJECT COMPLETION--TERMINATION.--Following the
427	427	performance of the contract entered into pursuant to Section 6
428	428	of the Vibrant Communities Act, the qualifying entity shall
429	429	terminate the project. The qualifying entity shall provide
430	430	written notice of the termination to the department at least
431	431	sixty days prior to the completion of performance. Upon
432	432	termination, the qualifying entity shall provide for the
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461	461	satisfying of existing contracts and the rights of the parties
462	462	arising from those contracts.
463	463	SECTION 8. [NEW MATERIAL] VIBRANT COMMUNITIES PROGRAM--
464	464	REPORTING.--Annually, the department shall submit a report to
465	465	the governor, the legislature and the legislative finance
466	466	committee that shall provide details regarding public
467	467	assistance provided pursuant to the Vibrant Communities Act.
468	468	The report shall include:
469	469	A. the total amount of public assistance provided,
470	470	which shall differentiate public purpose projects that are
471	471	considered fully funded, public purpose projects that are in
472	472	the process of being fully funded and public purpose projects
473	473	that are currently providing services to the communities in
474	474	which those projects are located;
475	475	B. an overview of the types of services being
476	476	provided by public purpose projects; and
477	477	C. recommended changes, if any, to the Vibrant
478	478	Communities Act to ensure proper safeguards for public money.
479	479	SECTION 9. CONTINGENT EFFECTIVE DATE.--The provisions of
480	480	this act shall become effective upon certification by the
481	481	secretary of state that the constitution of New Mexico has been
482	482	amended as proposed by a joint resolution of the first session
483	483	of the fifty-seventh legislature, entitled "A JOINT RESOLUTION
484	484	PROPOSING TO REPEAL AND REPLACE ARTICLE 9, SECTION 14 OF THE
485	485	CONSTITUTION OF NEW MEXICO TO ALLOW THE STATE, COUNTIES, SCHOOL
486	486	.229038.5
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514	514	DISTRICTS AND MUNICIPALITIES TO MAKE DONATIONS OF PUBLIC FUNDS
515	515	TO PRIVATE PERSONS OR PRIVATE ENTITIES FOR PUBLIC PURPOSES AND
516	516	TO REPEAL ARTICLE 4, SECTION 31 OF THE CONSTITUTION OF NEW
517	517	MEXICO, WHICH PROHIBITS APPROPRIATIONS FOR CHARITABLE,
518	518	EDUCATIONAL OR OTHER BENEVOLENT PURPOSES TO A PERSON OR ENTITY
519	519	NOT UNDER THE FULL CONTROL OF THE STATE.".
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