NM
New Mexico Senate Bill SB31

New Mexico 2025 Regular Session

New Mexico Senate Bill SB31 Compare Versions

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1-SB 31
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28+SENATE BILL 31
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+Pete Campos and Joseph L. Sanchez
2848 AN ACT
2949 RELATING TO PUBLIC FINANCE; PROVIDING ZERO-INTEREST LOANS TO
3050 POLITICAL SUBDIVISIONS OF THE STATE AND ELECTRIC COOPERATIVES
3151 THAT HAVE BEEN APPROVED FOR FEDERAL PUBLIC ASSISTANCE FUNDING
3252 FROM THE FEDERAL EMERGENCY MANAGEMENT AGENCY FOR A FEDERALLY
3353 DECLARED NATURAL DISASTER; REQUIRING REIMBURSEMENT CONTRACTS;
3454 PROVIDING FOR ENFORCEMENT OF THE TERMS OF THE LOAN CONTRACTS;
3555 CREATING THE NATURAL DISASTER REVOLVING FUND; PROVIDING AN
36-ANNUAL TRANSFER FROM THE APPROPRIATION CONTINGENCY FUND TO
37-THE NATURAL DISASTER REVOLVING FUND; PROVIDING THAT THE STATE
56+ANNUAL TRANSFER FROM THE APPROPRIATION CONTINGENCY FUND TO THE
57+NATURAL DISASTER REVOLVING FUND; PROVIDING THAT THE STATE
3858 RESERVES SHALL CONSIST OF CERTAIN FUNDS; CREATING THE FEDERAL
39-REIMBURSEMENT REVOLVING FUND; MAKING AN APPROPRIATION;
40-DECLARING AN EMERGENCY.
59+REIMBURSEMENT REVOLVING FUND; MAKING APPROPRIATIONS; DECLARING
60+AN EMERGENCY.
4161 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
42-SECTION 1. NATURAL DISASTER LOAN PROGRAM.--
43-A. The department of finance and administration,
44-in consultation with the homeland security and emergency
45-management department, shall provide zero-interest
46-reimbursable loans to political subdivisions of the state and
47-electric cooperatives that have been approved for funding
48-from the federal emergency management agency for a federally
49-declared natural disaster. The department of finance and
50-administration shall require a contract for reimbursement
51-from a political subdivision of the state or an electric SB 31
52-Page 2
62+SECTION 1. [NEW MATERIAL] NATURAL DISASTER LOAN
63+.230054.1GLG underscored material = new
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78-cooperative to receive a loan pursuant to this section. The
79-contract shall specify:
80-(1) that the political subdivision or
81-electric cooperative shall pay the loan by providing a
82-release to the homeland security and emergency management
83-department to transfer directly to the department of finance
84-and administration money received from the approved funding
85-from the federal emergency management agency that serves as
86-the basis for the loan;
87-(2) that the political subdivision or
88-electric cooperative shall repay the loan within thirty days
89-of becoming eligible for reimbursement under the approved
90-funding from the federal emergency management agency;
91-(3) such notice or reporting requirements
92-that the department of finance and administration deems
93-necessary to be sufficiently informed regarding compliance
94-with Paragraphs (1) and (2) of this subsection;
95-(4) a reasonably prompt deadline, determined
96-on a case-by-case basis by the department of finance and
97-administration, by which date the political subdivision or
98-electric cooperative shall be required to expend the loan for
99-natural disaster recovery purposes and that if the political
100-subdivision or electric cooperative does not expend the loan
101-by this deadline, the political subdivision or electric
102-cooperative shall pay an interest penalty on the loan, at a SB 31
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90+PROGRAM.--
91+A. The department of finance and administration, in
92+consultation with the homeland security and emergency
93+management department, shall provide zero-interest reimbursable
94+loans to political subdivisions of the state and electric
95+cooperatives that have been approved for funding from the
96+federal emergency management agency for a federally declared
97+natural disaster. The department of finance and administration
98+shall require a contract for reimbursement from a political
99+subdivision of the state or an electric cooperative to receive
100+a loan pursuant to this section. The contract shall specify:
101+(1) that the political subdivision or electric
102+cooperative shall pay the loan by providing a release to the
103+homeland security and emergency management department to
104+transfer directly to the department of finance and
105+administration money received from the approved funding from
106+the federal emergency management agency that serves as the
107+basis for the loan;
108+(2) that the political subdivision or electric
109+cooperative shall repay the loan within thirty days of becoming
110+eligible for reimbursement under the approved funding from the
111+federal emergency management agency;
112+(3) such notice or reporting requirements that
113+the department of finance and administration deems necessary to
114+be sufficiently informed regarding compliance with Paragraphs
115+.230054.1GLG
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129-fair current market interest rate or federal interest rate,
130-as determined by the department of finance and
131-administration;
132-(5) that upon failure to meet a requirement
133-of this subsection, the loan shall be repaid at a fair
134-current market interest rate or federal interest rate, as
143+(1) and (2) of this subsection;
144+(4) a reasonably prompt deadline, determined
145+on a case-by-case basis by the department of finance and
146+administration, by which date the political subdivision or
147+electric cooperative shall be required to expend the loan for
148+natural disaster recovery purposes and that if the political
149+subdivision or electric cooperative does not expend the loan by
150+this deadline, the political subdivision or electric
151+cooperative shall pay an interest penalty on the loan, at a
152+fair current market interest rate or federal interest rate, as
135153 determined by the department of finance and administration;
136-and
137-(6) that the political subdivision or
138-electric cooperative remit to the department of finance and
154+(5) that upon failure to meet a requirement of
155+this subsection, the loan shall be repaid at a fair current
156+market interest rate or federal interest rate, as determined by
157+the department of finance and administration; and
158+(6) that the political subdivision or electric
159+cooperative remit to the department of finance and
139160 administration, which shall deposit in the natural disaster
140161 revolving fund, all income from investment of money from the
141162 loan.
142163 B. All loan repayments and interest penalty
143-payments made pursuant to this section shall be deposited
144-into the natural disaster revolving fund.
164+payments made pursuant to this section shall be deposited into
165+the natural disaster revolving fund.
145166 C. The secretary of finance and administration
146167 shall take any and all legal actions necessary to enforce the
147-terms of contracts entered into pursuant to this section.
148-D. On or before June 1, 2025 and every six months
149-thereafter, the department of finance and administration
150-shall provide a report to the legislative finance committee
151-and the governor regarding the loans made pursuant to this
152-section, including:
153-(1) projects for which loan contracts have SB 31
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196+terms of contracts entered into pursuant to this section.
197+D. On or before June 1, 2025 and every six months
198+thereafter, the department of finance and administration shall
199+provide a report to the legislative finance committee and the
200+governor regarding the loans made pursuant to this section,
201+including:
202+(1) projects for which loan contracts have
180203 been made;
181-(2) the dollar amounts of and repayments
182-made pursuant to those contracts; and
204+(2) the dollar amounts of and repayments made
205+pursuant to those contracts; and
183206 (3) any breaches of those contracts,
184207 subsequent enforcement actions and results of the enforcement
185208 actions, including applicable interest rates for contract
186209 breaches and the determination of those interest rates.
187-SECTION 2. NATURAL DISASTER REVOLVING FUND.--
188-A. The "natural disaster revolving fund" is
189-created in the state treasury. The purpose of the fund is to
190-provide loans to political subdivisions of the state and
191-electric cooperatives that have been approved for funding
192-from the federal emergency management agency for a federally
193-declared natural disaster. The fund consists of
194-distributions, transfers, appropriations, gifts, grants,
195-donations and income from investment of the fund. Money in
196-the fund shall be invested by the state treasurer.
197-B. Money in the natural disaster revolving fund is
198-appropriated to the department of finance and administration
199-for:
200-(1) the purposes of the natural disaster
201-loan program pursuant to Section 1 of this 2025 act; and
202-(2) administration of the natural disaster
203-loan program and enforcement of loan contracts; provided that
204-no more than four hundred thousand dollars ($400,000) SB 31
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210+SECTION 2. [NEW MATERIAL] NATURAL DISASTER REVOLVING
211+FUND.--
212+A. The "natural disaster revolving fund" is created
213+in the state treasury. The purpose of the fund is to provide
214+loans to political subdivisions of the state and electric
215+cooperatives that have been approved for funding from the
216+federal emergency management agency for a federally declared
217+natural disaster. The fund consists of distributions,
218+transfers, appropriations, gifts, grants, donations and income
219+from investment of the fund. Money in the fund shall be
220+invested by the state treasurer.
221+.230054.1GLG
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249+B. Money in the natural disaster revolving fund is
250+appropriated to the department of finance and administration
251+for:
252+(1) the purposes of the natural disaster loan
253+program pursuant to Section 1 of this 2025 act; and
254+(2) administration of the natural disaster
255+loan program and enforcement of loan contracts; provided that
256+no more than two hundred fifty thousand dollars ($250,000)
231257 annually shall be used for these purposes.
232258 C. Money in the natural disaster revolving fund is
233-appropriated to the homeland security and emergency
234-management department for the compliance management of
235-programs administered by the federal emergency management
236-agency that serve as the basis for a natural disaster loan;
237-provided that no more than one hundred fifty thousand dollars
238-($150,000) annually shall be used for these purposes.
259+appropriated to the homeland security and emergency management
260+department for the compliance management of programs
261+administered by the federal emergency management agency that
262+serve as the basis for a natural disaster loan; provided that
263+no more than one hundred fifty thousand dollars ($150,000)
264+annually shall be used for these purposes.
239265 D. The department of finance and administration
240-shall administer the fund, and expenditures from the fund
241-shall be by warrant of the secretary of finance and
242-administration pursuant to vouchers signed by the secretary
243-or the secretary's authorized representative or vouchers
244-signed by the secretary of homeland security and emergency
245-management or that secretary's authorized representative.
246-E. Any unexpended or unencumbered balance
247-exceeding fifty million dollars ($50,000,000) and remaining
248-at the end of a fiscal year shall revert to the appropriation
249-contingency fund. Any unexpended or unencumbered balance
250-remaining at the end of a fiscal year shall be included in
251-the calculation of state reserves.
252-F. Any money repaid or reimbursed to the state
253-pursuant to Laws 2023, Chapter 2, Section 1 or Laws 2024 (1st
254-S.S.), Chapter 1, Section 2 shall be deposited in the natural
255-disaster revolving fund. SB 31
256-Page 6
266+shall administer the fund, and expenditures from the fund shall
267+be by warrant of the secretary of finance and administration
268+pursuant to vouchers signed by the secretary or the secretary's
269+authorized representative or vouchers signed by the secretary
270+of homeland security and emergency management or that
271+secretary's authorized representative.
272+E. Any unexpended or unencumbered balance exceeding
273+one hundred fifty million dollars ($150,000,000) and remaining
274+.230054.1GLG
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282-SECTION 3. TRANSFER--APPROPRIATION CONTINGENCY FUND TO
283-NATURAL DISASTER REVOLVING FUND.--Within thirty days after
284-August 1 of each year through 2028, the secretary of finance
285-and administration shall calculate the unexpended and
286-unencumbered balance of the natural disaster revolving fund
287-and, subject to availability of funds, transfer from the
288-appropriation contingency fund to the natural disaster
289-revolving fund an amount not greater than fifty million
290-dollars ($50,000,000) less the balance of the natural
291-disaster revolving fund. If the unexpended and unencumbered
292-balance of the natural disaster revolving fund is equal to or
293-greater than fifty million dollars ($50,000,000), no transfer
302+at the end of a fiscal year shall revert to the appropriation
303+contingency fund. Any unexpended or unencumbered balance
304+remaining at the end of a fiscal year shall be included in the
305+calculation of state reserves.
306+F. Any money repaid or reimbursed to the state
307+pursuant to Laws 2023, Chapter 2, Section 1 or Laws 2024 (1st
308+S.S.), Chapter 1, Section 2 shall be deposited in the natural
309+disaster revolving fund.
310+SECTION 3. [NEW MATERIAL] TRANSFER--APPROPRIATION
311+CONTINGENCY FUND TO NATURAL DISASTER REVOLVING FUND.--Within
312+thirty days after August 1 of each year through 2028, the
313+secretary of finance and administration shall calculate the
314+unexpended and unencumbered balance of the natural disaster
315+revolving fund and, subject to availability of funds, transfer
316+from the appropriation contingency fund to the natural disaster
317+revolving fund an amount equal to one hundred fifty million
318+dollars ($150,000,000) less the balance of the natural disaster
319+revolving fund. If the unexpended and unencumbered balance of
320+the natural disaster revolving fund is equal to or greater than
321+one hundred fifty million dollars ($150,000,000), no transfer
294322 shall be made.
295323 SECTION 4. Section 6-4-2.3 NMSA 1978 (being Laws 1991,
296324 Chapter 10, Section 7) is amended to read:
297325 "6-4-2.3. APPROPRIATION CONTINGENCY FUND.--There is
298-created within the general fund the "appropriation
299-contingency fund". The appropriation contingency fund may be
300-expended only:
301-A. upon specific authorization by the legislature;
302-B. as provided in Sections 12-11-23 through
303-12-11-25 NMSA 1978 in the event there is no surplus of
304-unappropriated money in the general fund and in the amount
305-authorized by the legislature; or
306-C. as provided in Section 3 of this 2025 act." SB 31
307-Page 7
326+created within the general fund the "appropriation contingency
327+.230054.1GLG
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333-SECTION 5. A new section of Chapter 6, Article 4 NMSA
334-1978 is enacted to read:
335-"STATE RESERVES.--The state reserves consist of the:
336-A. appropriation contingency fund;
337-B. general fund operating reserve;
338-C. government results and opportunity expendable
339-trust;
340-D. state-support reserve fund;
341-E. tax stabilization reserve;
342-F. natural disaster revolving fund; and
343-G. federal reimbursement revolving fund."
344-SECTION 6. FEDERAL REIMBURSEMENT REVOLVING FUND.--
345-A. The "federal reimbursement revolving fund" is
346-created as a nonreverting fund in the state treasury. The
347-purpose of the fund is to use reimbursements from the federal
348-government for claims created by the state's response to
349-declared emergencies to ensure recovery for local communities
350-affected by such emergencies and respond to future
351-emergencies in New Mexico. The fund consists of reimbursed
352-claims from the federal government, gifts, grants, transfers,
353-distributions, donations and income from investment of the
354-fund.
355-B. Money in the fund is appropriated to the
356-department of finance and administration to make
357-appropriations, pursuant to Sections 12-11-24 and 12-11-25 SB 31
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355+fund". [A.] The appropriation contingency fund may be expended
356+only:
357+A. upon specific authorization by the legislature;
358+[or]
359+B. as provided in Sections [6-7-1 through 6-7-3 ]
360+12-11-23 through 12-11-25 NMSA 1978 in the event there is no
361+surplus of unappropriated money in the general fund and in the
362+amount authorized by the legislature
363+[B. Notwithstanding Section 6-4-4 NMSA 1978, for
364+the seventy-ninth fiscal year, if the revenues of the general
365+fund exceed the total appropriations from the general fund, the
366+excess revenue shall be transferred to the appropriation
367+contingency fund.
368+C. Five million dollars ($5,000,000) is transferred
369+from the operating reserve fund to the public school state-
370+support reserve fund in the eightieth fiscal year.
371+D. If revenues and transfers to the general fund,
372+excluding transfers to the operating reserve, appropriation
373+contingency fund and public school state-support reserve, as of
374+the end of the seventy-ninth fiscal year, are not sufficient to
375+meet appropriations, the governor, with state board of finance
376+approval, may transfer at the end of that year the amount
377+necessary to meet the year's obligations from the unencumbered
378+balance remaining in the general fund operating reserve in a
379+total not to exceed sixty million dollars ($60,000,000) ]; or
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384-NMSA 1978, for disaster relief after the governor declares an
408+C. as provided in Section 3 of this 2025 act ."
409+SECTION 5. A new section of Chapter 6, Article 4 NMSA
410+1978 is enacted to read:
411+"[NEW MATERIAL] STATE RESERVES.--The state reserves
412+consist of the:
413+A. appropriation contingency fund;
414+B. general fund operating reserve;
415+C. government results and opportunity expendable
416+trust;
417+D. state-support reserve fund;
418+E. tax stabilization reserve;
419+F. natural disaster revolving fund; and
420+G. federal reimbursement revolving fund."
421+SECTION 6. [NEW MATERIAL] FEDERAL REIMBURSEMENT REVOLVING
422+FUND.--
423+A. The "federal reimbursement revolving fund" is
424+created as a nonreverting fund in the state treasury. The
425+purpose of the fund is to use reimbursements from the federal
426+government for claims created by the state's response to
427+declared emergencies to ensure recovery for local communities
428+affected by such emergencies and respond to future emergencies
429+in New Mexico. The fund consists of reimbursed claims from the
430+federal government, gifts, grants, transfers, distributions,
431+donations and income from investment of the fund.
432+B. Money in the fund is appropriated to the
433+.230054.1GLG
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461+department of finance and administration to make
462+appropriations, pursuant to Sections 12-11-24 and 12-11-25 NMSA
463+1978, for disaster relief after the governor declares an
385464 emergency.
386465 C. The department of finance and administration
387-shall administer the fund. Expenditures from the fund shall
388-be by warrant of the secretary of finance and administration
466+shall administer the fund. Expenditures from the fund shall be
467+by warrant of the secretary of finance and administration
389468 pursuant to vouchers signed by that secretary or that
390469 secretary's authorized representative.
391470 D. Any money reimbursed to the state or otherwise
392471 received by the state for emergency expenditures from the
393-federal government, including money the state receives
394-through the federal Hermit's Peak/Calf Canyon Fire Assistance
395-Act, unless otherwise obligated under an agreement with the
396-federal government, shall be deposited in the federal
397-reimbursement revolving fund.
398-SECTION 7. EMERGENCY.--It is necessary for the
399-public peace, health and safety that this act take effect
400-immediately.
472+federal government, including money the state receives through
473+the federal Hermit's Peak/Calf Canyon Fire Assistance Act,
474+unless otherwise obligated under an agreement with the federal
475+government, shall be deposited in the federal reimbursement
476+revolving fund.
477+SECTION 7. APPROPRIATION.--One hundred fifty million
478+dollars ($150,000,000) is appropriated from the general fund to
479+the natural disaster revolving fund for expenditure in fiscal
480+year 2025 and subsequent fiscal years for the purposes of the
481+fund. Any unexpended or unencumbered balance remaining at the
482+end of a fiscal year shall not revert to the general fund.
483+SECTION 8. EMERGENCY.--It is necessary for the public
484+peace, health and safety that this act take effect immediately.
485+- 9 -
486+.230054.1GLG