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HOUSE BILL 290
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Andrea Romero and Christine Chandler and Kathleen Cates
AN ACT
RELATING TO PUBLIC FINANCE; ENACTING THE VIBRANT COMMUNITIES
ACT; CREATING THE VIBRANT COMMUNITIES PROGRAM; PROVIDING PUBLIC
ASSISTANCE TO QUALIFYING ENTITIES FOR THE COMPLETION OF PUBLIC
PURPOSE PROJECTS UPON APPROPRIATIONS BY THE LEGISLATURE;
REQUIRING THE DEPARTMENT OF FINANCE AND ADMINISTRATION TO
ADMINISTER THE PROGRAM; SPECIFYING CONTRACTUAL TERMS; REQUIRING
REPORTING; PROVIDING A CONTINGENT EFFECTIVE DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. [NEW MATERIAL] SHORT TITLE.--This act may be
cited as the "Vibrant Communities Act".
SECTION 2. [NEW MATERIAL] FINDINGS.--
A. The legislature finds that without the daily
contributions and efforts of the thousands of valuable
nonprofit organizations dedicated to serving communities
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throughout New Mexico, the state would be inundated with
constant requests for health, human and social services for
which the state does not have revenue or resources to provide.
B. The legislature finds that it is a direct,
tangible benefit to the state, as well as for all residents and
taxpayers, and that the state receives considerable value in
return, when nonprofit organizations provide facilities and
services to the public that the state otherwise cannot provide
and that nonprofit organizations are not under any legal
obligation to provide. Nonprofit organizations make
contributions to the fabric of life in New Mexico that are
indispensable.
SECTION 3. [NEW MATERIAL] DEFINITIONS.--As used in the
Vibrant Communities Act:
A. "department" means the department of finance and
administration;
B. "health council" means a county, tribal or
regional health council;
C. "local government" means a county or
municipality;
D. "municipality" means any incorporated city, town
or village;
E. "program" means the vibrant communities program;
F. "public assistance" means a grant of public
funds, a lease of publicly owned real property or any other
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provision of public funding or assistance that the legislature
has appropriated or authorized to complete or facilitate a
public purpose project;
G. "public purpose" means for the purpose of
providing facilities or services for the benefit of the public
health, safety or welfare;
H. "public purpose project" means a project
proposed and performed by a qualifying entity to address a
public purpose within the community in which the project would
be located; and
I. "qualifying entity" means an organization that
has demonstrated to the department that it has been granted
exemption from the federal income tax by the United States
commissioner of internal revenue as an organization described
in Section 501(c)(3) or Section 501(c)(12) of the United States
Internal Revenue Code of 1986, as amended or renumbered, in the
conduct of functions described in Section 501(c)(3) or Section
501(c)(12)."
SECTION 4. [NEW MATERIAL] VIBRANT COMMUNITIES PROGRAM--
CREATED.--
A. The "vibrant communities program" is created
within the department. The program shall provide public
assistance to facilitate the development and funding of public
purpose projects.
B. The department shall promulgate rules necessary
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to carry out the provisions of the Vibrant Communities Act and
to ensure the protection of public funds.
C. Public assistance shall be provided pursuant to
the Vibrant Communities Act and subject to legislative
appropriation and authorization. The department shall not
transfer, adjust or otherwise use money for the Vibrant
Communities Act or the program except as directed by the
legislature.
SECTION 5. [NEW MATERIAL] VIBRANT COMMUNITIES PROGRAM--
PRELIMINARY APPLICATIONS--LEGISLATIVE RECOMMENDATIONS.--
A. Annually, the department shall solicit
preliminary applications for the program. Preliminary
applications shall be submitted by qualifying entities that are
requesting public assistance to finance a public purpose
project pursuant to the Vibrant Communities Act.
B. Applications shall include:
(1) a description of the public purpose that
the project will address, including how the public purpose
relates to one or more of the priorities identified by a local
government; an Indian nation, tribe or pueblo; a council of
governments; or a health council;
(2) expected deliverables or outcomes
associated with the public purpose project;
(3) benchmarks to evaluate the achievement of
a public purpose;
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(4) a description of the population served by
the public purpose project;
(5) any state, local, tribal, private or other
actors that may have involvement or a known interest in a
public purpose project;
(6) the amount of public assistance being
requested and the value of the available private assets or any
available grants or other funding sources available;
(7) a conflict-of-interest statement that
includes all elected officials or those related to elected
officials that are on the board or staff of the applying
qualifying entity; and
(8) any other forms or information as
determined by the department.
C. A preliminary application shall be on a form
provided by the department and shall require such other
information as the department deems necessary.
D. By April 30 of each year, the department shall
review preliminary applications. Of those preliminary
applications that have complied with the application process
and the requirements thereof, the department shall provide to
the legislature and the governor a list of proposed public
purpose projects. The list shall include the locations of the
proposed public purpose projects and the public assistance that
is requested. The department shall differentiate the projects
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based on the demonstrated need within the community in which
the proposed public purpose project would be located and the
proposed safeguards to ensure responsible use of public
assistance.
SECTION 6. [NEW MATERIAL] VIBRANT COMMUNITIES PROGRAM--
APPROVAL--TERMS.--
A. The legislature shall appropriate money for the
program by specific purpose and specific amount per public
purpose project. Upon legislative appropriation and
authorization of a public purpose project, the department
shall:
(1) enter into contracts with a qualifying
entity to provide public assistance for a public purpose
project;
(2) make, execute and enforce all contracts
necessary to carry out the provisions of the Vibrant
Communities Act;
(3) provide public assistance to a qualifying
entity for a public purpose project;
(4) enter into agreements with other state
agencies and local governments, as necessary;
(5) pursue legal remedies available in the
event that a qualifying entity breaches a contract; and
(6) require and request all other information
needed to ensure that qualifying entities are in compliance
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with the contracts entered into pursuant to the Vibrant
Communities Act.
B. Public assistance shall be provided pursuant to
the legislative appropriation and the contract entered into
between a qualifying entity and the department. A contract
entered into pursuant to this subsection shall include:
(1) a statement that a public purpose project
shall comply with applicable state, local and federal law,
including requiring that the qualifying entity and all
employees of the qualifying entity shall be subject to the
Governmental Conduct Act;
(2) a statement that the state may seek
reimbursement or recapture of funds or possession of leased or
provided property in the event that a public purpose project
fails to comply with the purpose of the Vibrant Communities
Act;
(3) a statement that the qualifying entity
shall be subject to ongoing reporting on the progress of a
public purpose project or the public purpose served by a public
purpose project;
(4) defined roles and responsibilities of the
department and the qualifying entity;
(5) a finance plan detailing the issuance of
public assistance and the obligations of the qualifying entity
to continue to receive appropriated public assistance;
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(6) a specification of how debts incurred on
behalf of the qualifying entity will be repaid;
(7) a requirement that the qualifying entity
comply with the Audit Act;
(8) if applicable, terms of ownership of the
property or asset and adequate security to ensure perpetual
public purpose use for the life of the project;
(9) if applicable, a statement that the state
shall have a reversionary interest in the property leased to
the qualifying entity in the event that the qualifying entity
ceases to exist or serve a public purpose in the performance of
the public purpose project;
(10) if applicable, a statement that the
department shall maintain a lien on the property or asset until
the terms of the contract are fulfilled; and
(11) all other terms the department deems
necessary and proper to protect public funds.
SECTION 7. [NEW MATERIAL] VIBRANT COMMUNITIES PROGRAM--
PUBLIC PURPOSE PROJECT COMPLETION--TERMINATION.--Following the
performance of the contract entered into pursuant to Section 6
of the Vibrant Communities Act, the qualifying entity shall
terminate the project. The qualifying entity shall provide
written notice of the termination to the department at least
sixty days prior to the completion of performance. Upon
termination, the qualifying entity shall provide for the
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satisfying of existing contracts and the rights of the parties
arising from those contracts.
SECTION 8. [NEW MATERIAL] VIBRANT COMMUNITIES PROGRAM--
REPORTING.--Annually, the department shall submit a report to
the governor, the legislature and the legislative finance
committee that shall provide details regarding public
assistance provided pursuant to the Vibrant Communities Act.
The report shall include:
A. the total amount of public assistance provided,
which shall differentiate public purpose projects that are
considered fully funded, public purpose projects that are in
the process of being fully funded and public purpose projects
that are currently providing services to the communities in
which those projects are located;
B. an overview of the types of services being
provided by public purpose projects; and
C. recommended changes, if any, to the Vibrant
Communities Act to ensure proper safeguards for public money.
SECTION 9. CONTINGENT EFFECTIVE DATE.--The provisions of
this act shall become effective upon certification by the
secretary of state that the constitution of New Mexico has been
amended as proposed by a joint resolution of the first session
of the fifty-seventh legislature, entitled "A JOINT RESOLUTION
PROPOSING TO REPEAL AND REPLACE ARTICLE 9, SECTION 14 OF THE
CONSTITUTION OF NEW MEXICO TO ALLOW THE STATE, COUNTIES, SCHOOL
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DISTRICTS AND MUNICIPALITIES TO MAKE DONATIONS OF PUBLIC FUNDS
TO PRIVATE PERSONS OR PRIVATE ENTITIES FOR PUBLIC PURPOSES AND
TO REPEAL ARTICLE 4, SECTION 31 OF THE CONSTITUTION OF NEW
MEXICO, WHICH PROHIBITS APPROPRIATIONS FOR CHARITABLE,
EDUCATIONAL OR OTHER BENEVOLENT PURPOSES TO A PERSON OR ENTITY
NOT UNDER THE FULL CONTROL OF THE STATE.".
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