underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
SENATE BILL 134
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
George K. Muñoz and Harlan Vincent
AN ACT
RELATING TO PUBLIC FINANCE; PROVIDING ZERO-INTEREST LOANS TO
POLITICAL SUBDIVISIONS OF THE STATE THAT HAVE BEEN APPROVED FOR
FEDERAL PUBLIC ASSISTANCE FUNDING FROM THE FEDERAL EMERGENCY
MANAGEMENT AGENCY FOR A FEDERALLY DECLARED NATURAL DISASTER;
REQUIRING REIMBURSEMENT CONTRACTS; PROVIDING FOR ENFORCEMENT OF
THE TERMS OF THE LOAN CONTRACTS; CREATING THE NATURAL DISASTER
REVOLVING FUND; PROVIDING AN ANNUAL TRANSFER FROM THE
APPROPRIATION CONTINGENCY FUND TO THE NATURAL DISASTER
REVOLVING FUND; PROVIDING THAT THE STATE RESERVES SHALL CONSIST
OF CERTAIN FUNDS, INCLUDING THE NATURAL DISASTER REVOLVING
FUND; MAKING AN APPROPRIATION; DECLARING AN EMERGENCY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. [NEW MATERIAL] NATURAL DISASTER LOAN
PROGRAM.--
.228997.4 underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
A. The department of finance and administration, in
consultation with the homeland security and emergency
management department, shall provide zero-interest reimbursable
loans to political subdivisions of the state that have been
approved for federal public assistance funding from the federal
emergency management agency for a federally declared natural
disaster. The department of finance and administration shall
require a contract for reimbursement from a political
subdivision of the state to receive a loan pursuant to this
section. The contract shall specify:
(1) that the political subdivision shall pay
the loan by providing a release to the homeland security and
emergency management department to transfer directly to the
department of finance and administration money received from
the approved federal public assistance funding that serves as
the basis for the loan;
(2) that the political subdivision shall repay
the loan within thirty days of becoming eligible for
reimbursement under the approved federal public assistance
funding;
(3) such notice or reporting requirements that
the department of finance and administration deems necessary to
be sufficiently informed regarding compliance with Paragraphs
(1) and (2) of this subsection;
(4) a reasonably prompt deadline, determined
.228997.4
- 2 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
on a case-by-case basis by the department of finance and
administration, by which date the political subdivision shall
be required to expend the loan for natural disaster recovery
purposes and that if the political subdivision does not expend
the loan by this deadline, the political subdivision shall pay
an interest penalty on the loan, at a fair current market
interest rate or federal interest rate, as determined by the
department of finance and administration;
(5) that upon failure to meet a requirement of
this subsection, the loan shall be repaid at a fair current
market interest rate or federal interest rate, as determined by
the department of finance and administration; and
(6) that the political subdivision remit to
the department of finance and administration, which shall
deposit in the natural disaster revolving fund, all income from
investment of money from the loan.
B. All loan repayments and interest penalty
payments made pursuant to this section shall be deposited into
the natural disaster revolving fund.
C. The secretary of finance and administration
shall take any and all legal actions necessary to enforce the
terms of contracts entered into pursuant to this section.
D. On or before June 1, 2025 and every six months
thereafter, the department of finance and administration shall
provide a report to the legislative finance committee and the
.228997.4
- 3 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
governor regarding the loans made pursuant to this section,
including:
(1) projects for which loan contracts have
been made;
(2) the dollar amounts of and repayments made
pursuant to those contracts; and
(3) any breaches of those contracts,
subsequent enforcement actions and results of the enforcement
actions, including applicable interest rates for contract
breaches and the determination of those interest rates.
SECTION 2. [NEW MATERIAL] NATURAL DISASTER REVOLVING
FUND.--
A. The "natural disaster revolving fund" is created
in the state treasury. The purpose of the fund is to provide
loans to political subdivisions of the state that have been
approved for federal public assistance funding from the federal
emergency management agency for a federally declared natural
disaster. The fund consists of distributions, transfers,
appropriations, gifts, grants, donations and income from
investment of the fund. Money in the fund shall be invested by
the state treasurer.
B. Money in the natural disaster revolving fund is
appropriated to the department of finance and administration
for:
(1) the purposes of the natural disaster loan
.228997.4
- 4 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
program pursuant to Section 1 of this 2025 act; and
(2) administration of the natural disaster
loan program and enforcement of loan contracts; provided that
no more than two hundred fifty thousand dollars ($250,000)
annually shall be used for these purposes.
C. The department of finance and administration
shall administer the fund, and expenditures from the fund shall
be by warrant of the secretary of finance and administration
pursuant to vouchers signed by the secretary or the secretary's
authorized representative.
D. Any unexpended or unencumbered balance exceeding
one hundred million dollars ($100,000,000) and remaining at the
end of a fiscal year shall revert to the appropriation
contingency fund. Any unexpended or unencumbered balance
remaining at the end of a fiscal year shall be included in the
calculation of state reserves.
E. Any money repaid or reimbursed to the state
pursuant to Laws 2023, Chapter 2, Section 1 or Laws 2024 (1st
S.S.), Chapter 1, Section 2 shall be deposited in the natural
disaster revolving fund.
SECTION 3. [NEW MATERIAL] TRANSFER--APPROPRIATION
CONTINGENCY FUND TO NATURAL DISASTER REVOLVING FUND.--Within
thirty days after August 1 of each year through 2028, the
secretary of finance and administration shall calculate the
unexpended and unencumbered balance of the natural disaster
.228997.4
- 5 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
revolving fund and, subject to availability of funds, transfer
from the appropriation contingency fund to the natural disaster
revolving fund an amount equal to one hundred million dollars
($100,000,000) less the balance of the natural disaster
revolving fund. If the unexpended and unencumbered balance of
the natural disaster revolving fund is equal to or greater than
one hundred million dollars ($100,000,000), no transfer shall
be made.
SECTION 4. Section 6-4-2.3 NMSA 1978 (being Laws 1991,
Chapter 10, Section 7) is amended to read:
"6-4-2.3. APPROPRIATION CONTINGENCY FUND.--There is
created within the general fund the "appropriation contingency
fund". [A.] The appropriation contingency fund may be expended
only:
A. upon specific authorization by the legislature;
[or]
B. as provided in Sections [6-7-1 through 6-7-3 ]
12-11-23 through 12-11-25 NMSA 1978 in the event there is no
surplus of unappropriated money in the general fund and in the
amount authorized by the legislature;
[B. Notwithstanding Section 6-4-4 NMSA 1978, for
the seventy-ninth fiscal year, if the revenues of the general
fund exceed the total appropriations from the general fund, the
excess revenue shall be transferred to the appropriation
contingency fund.
.228997.4
- 6 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
C. Five million dollars ($5,000,000) is transferred
from the operating reserve fund to the public school state-
support reserve fund in the eightieth fiscal year.
D. If revenues and transfers to the general fund,
excluding transfers to the operating reserve, appropriation
contingency fund and public school state-support reserve, as of
the end of the seventy-ninth fiscal year, are not sufficient to
meet appropriations, the governor, with state board of finance
approval, may transfer at the end of that year the amount
necessary to meet the year's obligations from the unencumbered
balance remaining in the general fund operating reserve in a
total not to exceed sixty million dollars ($60,000,000) ] or
C. as provided in Section 3 of this 2025 act ."
SECTION 5. A new section of Chapter 6, Article 4 NMSA
1978 is enacted to read:
"[NEW MATERIAL] STATE RESERVES.--The state reserves shall
consist of the:
A. appropriation contingency fund;
B. general fund operating reserve;
C. government results and opportunity expendable
trust;
D. state-support reserve fund;
E. tax stabilization reserve; and
F. natural disaster revolving fund."
SECTION 6. APPROPRIATION.--One hundred million dollars
.228997.4
- 7 - underscored material = new
[bracketed material] = delete
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
($100,000,000) is appropriated from the general fund to the
natural disaster revolving fund for expenditure in fiscal year
2025 and subsequent fiscal years for the purposes of the fund.
Any unexpended or unencumbered balance remaining at the end of
a fiscal year shall not revert to the general fund.
SECTION 7. EMERGENCY.--It is necessary for the public
peace, health and safety that this act take effect immediately.
- 8 -
.228997.4