HOUSE BILL 290

57th legislature - STATE OF NEW MEXICO - first session, 2025

INTRODUCED BY

Andrea Romero and Christine Chandler

and Patricia Roybal Caballero

 

 

 

 

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 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 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 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;

                (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 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 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;

                (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 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 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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