NM
New Mexico Senate Bill SB134

New Mexico 2025 Regular Session

New Mexico Senate Bill SB134 Compare Versions

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2828 SENATE BILL 134
2929 57
3030 TH LEGISLATURE
3131 -
3232
3333 STATE
3434
3535 OF
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3737 NEW
3838
3939 MEXICO
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4242 FIRST SESSION
4343 ,
4444
4545 2025
4646 INTRODUCED BY
4747 George K. Muñoz and Harlan Vincent
4848 AN ACT
4949 RELATING TO PUBLIC FINANCE; PROVIDING ZERO-INTEREST LOANS TO
5050 POLITICAL SUBDIVISIONS OF THE STATE THAT HAVE BEEN APPROVED FOR
5151 FEDERAL PUBLIC ASSISTANCE FUNDING FROM THE FEDERAL EMERGENCY
5252 MANAGEMENT AGENCY FOR A FEDERALLY DECLARED NATURAL DISASTER;
5353 REQUIRING REIMBURSEMENT CONTRACTS; PROVIDING FOR ENFORCEMENT OF
5454 THE TERMS OF THE LOAN CONTRACTS; CREATING THE NATURAL DISASTER
5555 REVOLVING FUND; PROVIDING AN ANNUAL TRANSFER FROM THE
5656 APPROPRIATION CONTINGENCY FUND TO THE NATURAL DISASTER
5757 REVOLVING FUND; PROVIDING THAT THE STATE RESERVES SHALL CONSIST
5858 OF CERTAIN FUNDS, INCLUDING THE NATURAL DISASTER REVOLVING
5959 FUND; MAKING AN APPROPRIATION; DECLARING AN EMERGENCY.
6060 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
6161 SECTION 1. [NEW MATERIAL] NATURAL DISASTER LOAN
6262 PROGRAM.--
6363 .228997.4 underscored material = new
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9090 A. The department of finance and administration, in
9191 consultation with the homeland security and emergency
9292 management department, shall provide zero-interest reimbursable
9393 loans to political subdivisions of the state that have been
9494 approved for federal public assistance funding from the federal
9595 emergency management agency for a federally declared natural
9696 disaster. The department of finance and administration shall
9797 require a contract for reimbursement from a political
9898 subdivision of the state to receive a loan pursuant to this
9999 section. The contract shall specify:
100100 (1) that the political subdivision shall pay
101101 the loan by providing a release to the homeland security and
102102 emergency management department to transfer directly to the
103103 department of finance and administration money received from
104104 the approved federal public assistance funding that serves as
105105 the basis for the loan;
106106 (2) that the political subdivision shall repay
107107 the loan within thirty days of becoming eligible for
108108 reimbursement under the approved federal public assistance
109109 funding;
110110 (3) such notice or reporting requirements that
111111 the department of finance and administration deems necessary to
112112 be sufficiently informed regarding compliance with Paragraphs
113113 (1) and (2) of this subsection;
114114 (4) a reasonably prompt deadline, determined
115115 .228997.4
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143143 on a case-by-case basis by the department of finance and
144144 administration, by which date the political subdivision shall
145145 be required to expend the loan for natural disaster recovery
146146 purposes and that if the political subdivision does not expend
147147 the loan by this deadline, the political subdivision shall pay
148148 an interest penalty on the loan, at a fair current market
149149 interest rate or federal interest rate, as determined by the
150150 department of finance and administration;
151151 (5) that upon failure to meet a requirement of
152152 this subsection, the loan shall be repaid at a fair current
153153 market interest rate or federal interest rate, as determined by
154154 the department of finance and administration; and
155155 (6) that the political subdivision remit to
156156 the department of finance and administration, which shall
157157 deposit in the natural disaster revolving fund, all income from
158158 investment of money from the loan.
159159 B. All loan repayments and interest penalty
160160 payments made pursuant to this section shall be deposited into
161161 the natural disaster revolving fund.
162162 C. The secretary of finance and administration
163163 shall take any and all legal actions necessary to enforce the
164164 terms of contracts entered into pursuant to this section.
165165 D. On or before June 1, 2025 and every six months
166166 thereafter, the department of finance and administration shall
167167 provide a report to the legislative finance committee and the
168168 .228997.4
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196196 governor regarding the loans made pursuant to this section,
197197 including:
198198 (1) projects for which loan contracts have
199199 been made;
200200 (2) the dollar amounts of and repayments made
201201 pursuant to those contracts; and
202202 (3) any breaches of those contracts,
203203 subsequent enforcement actions and results of the enforcement
204204 actions, including applicable interest rates for contract
205205 breaches and the determination of those interest rates.
206206 SECTION 2. [NEW MATERIAL] NATURAL DISASTER REVOLVING
207207 FUND.--
208208 A. The "natural disaster revolving fund" is created
209209 in the state treasury. The purpose of the fund is to provide
210210 loans to political subdivisions of the state that have been
211211 approved for federal public assistance funding from the federal
212212 emergency management agency for a federally declared natural
213213 disaster. The fund consists of distributions, transfers,
214214 appropriations, gifts, grants, donations and income from
215215 investment of the fund. Money in the fund shall be invested by
216216 the state treasurer.
217217 B. Money in the natural disaster revolving fund is
218218 appropriated to the department of finance and administration
219219 for:
220220 (1) the purposes of the natural disaster loan
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249249 program pursuant to Section 1 of this 2025 act; and
250250 (2) administration of the natural disaster
251251 loan program and enforcement of loan contracts; provided that
252252 no more than two hundred fifty thousand dollars ($250,000)
253253 annually shall be used for these purposes.
254254 C. The department of finance and administration
255255 shall administer the fund, and expenditures from the fund shall
256256 be by warrant of the secretary of finance and administration
257257 pursuant to vouchers signed by the secretary or the secretary's
258258 authorized representative.
259259 D. Any unexpended or unencumbered balance exceeding
260260 one hundred million dollars ($100,000,000) and remaining at the
261261 end of a fiscal year shall revert to the appropriation
262262 contingency fund. Any unexpended or unencumbered balance
263263 remaining at the end of a fiscal year shall be included in the
264264 calculation of state reserves.
265265 E. Any money repaid or reimbursed to the state
266266 pursuant to Laws 2023, Chapter 2, Section 1 or Laws 2024 (1st
267267 S.S.), Chapter 1, Section 2 shall be deposited in the natural
268268 disaster revolving fund.
269269 SECTION 3. [NEW MATERIAL] TRANSFER--APPROPRIATION
270270 CONTINGENCY FUND TO NATURAL DISASTER REVOLVING FUND.--Within
271271 thirty days after August 1 of each year through 2028, the
272272 secretary of finance and administration shall calculate the
273273 unexpended and unencumbered balance of the natural disaster
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302302 revolving fund and, subject to availability of funds, transfer
303303 from the appropriation contingency fund to the natural disaster
304304 revolving fund an amount equal to one hundred million dollars
305305 ($100,000,000) less the balance of the natural disaster
306306 revolving fund. If the unexpended and unencumbered balance of
307307 the natural disaster revolving fund is equal to or greater than
308308 one hundred million dollars ($100,000,000), no transfer shall
309309 be made.
310310 SECTION 4. Section 6-4-2.3 NMSA 1978 (being Laws 1991,
311311 Chapter 10, Section 7) is amended to read:
312312 "6-4-2.3. APPROPRIATION CONTINGENCY FUND.--There is
313313 created within the general fund the "appropriation contingency
314314 fund". [A.] The appropriation contingency fund may be expended
315315 only:
316316 A. upon specific authorization by the legislature;
317317 [or]
318318 B. as provided in Sections [6-7-1 through 6-7-3 ]
319319 12-11-23 through 12-11-25 NMSA 1978 in the event there is no
320320 surplus of unappropriated money in the general fund and in the
321321 amount authorized by the legislature;
322322 [B. Notwithstanding Section 6-4-4 NMSA 1978, for
323323 the seventy-ninth fiscal year, if the revenues of the general
324324 fund exceed the total appropriations from the general fund, the
325325 excess revenue shall be transferred to the appropriation
326326 contingency fund.
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355355 C. Five million dollars ($5,000,000) is transferred
356356 from the operating reserve fund to the public school state-
357357 support reserve fund in the eightieth fiscal year.
358358 D. If revenues and transfers to the general fund,
359359 excluding transfers to the operating reserve, appropriation
360360 contingency fund and public school state-support reserve, as of
361361 the end of the seventy-ninth fiscal year, are not sufficient to
362362 meet appropriations, the governor, with state board of finance
363363 approval, may transfer at the end of that year the amount
364364 necessary to meet the year's obligations from the unencumbered
365365 balance remaining in the general fund operating reserve in a
366366 total not to exceed sixty million dollars ($60,000,000) ] or
367367 C. as provided in Section 3 of this 2025 act ."
368368 SECTION 5. A new section of Chapter 6, Article 4 NMSA
369369 1978 is enacted to read:
370370 "[NEW MATERIAL] STATE RESERVES.--The state reserves shall
371371 consist of the:
372372 A. appropriation contingency fund;
373373 B. general fund operating reserve;
374374 C. government results and opportunity expendable
375375 trust;
376376 D. state-support reserve fund;
377377 E. tax stabilization reserve; and
378378 F. natural disaster revolving fund."
379379 SECTION 6. APPROPRIATION.--One hundred million dollars
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408408 ($100,000,000) is appropriated from the general fund to the
409409 natural disaster revolving fund for expenditure in fiscal year
410410 2025 and subsequent fiscal years for the purposes of the fund.
411411 Any unexpended or unencumbered balance remaining at the end of
412412 a fiscal year shall not revert to the general fund.
413413 SECTION 7. EMERGENCY.--It is necessary for the public
414414 peace, health and safety that this act take effect immediately.
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