SENATE BILL 1060
48th legislature - STATE OF NEW MEXICO - first session, 2007
INTRODUCED BY
Nancy Rodriguez
AN ACT
RELATING TO PUBLIC FINANCE; CREATING A SEPARATE ADMINISTRATIVE FUND FOR THE WASTEWATER FACILITY CONSTRUCTION LOAN ACT; DEFINING TERMS; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. A new section of the Wastewater Facility Construction Loan Act is enacted to read:
"[NEW MATERIAL] CLEAN WATER ADMINISTRATIVE FUND--CREATED--USE.--
A. The "clean water administrative fund" is created in the state treasury and shall be administered by the department as agent for the commission. The clean water administrative fund shall be a dedicated fund, and all money in the clean water administrative fund is appropriated to the department to be used solely to administer the wastewater facility construction loan fund, which may include water quality planning and water quality analysis and protection studies if authorized by the department and, if necessary, the United States environmental protection agency. The commission may establish procedures, adopt regulations and set fees as required to administer the clean water administrative fund in accordance with the Clean Water Act and state law. The clean water administrative fund shall consist of money deposited from:
(1) loan administration fees collected by the department after the effective date of this section on loans made from the wastewater facility construction loan fund;
(2) interest earned on investment of the clean water administrative fund;
(3) grants from the federal government allotted to the state for the clean water administrative fund;
(4) funds as appropriated by the legislature for administration to implement the provisions of the Clean Water Act; and
(5) any other public or private money dedicated to the clean water administrative fund.
B. Money in the clean water administrative fund not currently needed for the operation of the fund or otherwise dedicated may be invested according to the provisions of Chapter 6, Article 10 NMSA 1978, and all interest earned on such investments shall be credited to the clean water administrative fund. Money remaining in the clean water administrative fund at the end of any fiscal year shall not revert to the general fund but shall accrue to the credit of the clean water administrative fund.
C. The department shall establish fiscal controls and accounting procedures that are sufficient to ensure proper accounting for clean water administrative fund payments, disbursements and balances and shall provide an annual report and an annual independent audit on the clean water administrative fund to the governor and to the United States environmental protection agency as required by the Clean Water Act."
Section 2. Section 74-6A-3 NMSA 1978 (being Laws 1986, Chapter 72, Section 3, as amended) is amended to read:
"74-6A-3. DEFINITIONS.--As used in the Wastewater Facility Construction Loan Act:
A. "administrative fee" means a fee assessed and collected by the department from a local authority on each loan and expressed as a percentage per year on the outstanding principal amount of the loan, payable by the borrower on the same date that principal and interest on the loan are due, for deposit in the clean water administrative fund;
[A.] B. "commission" means the water quality control commission;
[B.] C. "division" or "department" means the [environmental improvement division of the health and environment] department of environment;
[C.] D. "financial assistance" means loans, the purchase or refinancing of existing local political subdivision obligations, loan guarantees, credit enhancement techniques to reduce interest on loans and bonds, bond insurance and bond guarantees or any combination of these purposes;
[D.] E. "fund" means the wastewater facility construction loan fund;
[E.] F. "local authority" means any municipality, county, incorporated county, sanitation district, water and sanitation district or any similar district, recognized Indian tribe or other issuing agency created pursuant to a joint powers agreement acting on behalf of any entity listed in this subsection;
[F.] G. "operate and maintain" means to perform all necessary activities, including replacement of equipment or appurtenances, to [assure] ensure the dependable and economical function of a wastewater facility in accordance with its intended purpose;
[G.] H. "wastewater facility" means a publicly owned system for treating or disposing of sewage or wastes either by surface or underground methods, including any equipment, plant, treatment works, structure, machinery, apparatus or land, in any combination, that is acquired, used, constructed or operated for the storage, collection, reduction, recycling, reclamation, disposal, separation or treatment of water or wastes or for the final disposal of residues resulting from the treatment of water or wastes, such as pumping and ventilating stations, facilities, plants and works, outfall sewers, interceptor sewers and collector sewers and other real or personal property and appurtenances incident to their use or operation. "Wastewater facility" also includes a nonpoint source water pollution control project as eligible under the [federal] Clean Water Act [of 1977];
[H.] I. "account" means the wastewater suspense account;
[I.] J. "board" means the state board of finance;
[J.] K. "bonds" means wastewater bonds or other obligations authorized by the commission to be issued by the board pursuant to the Wastewater Facility Construction Loan Act;
[K.] L. "Clean Water Act" means the federal Clean Water Act of 1977 and its subsequent amendments or successor provisions;
[L.] M. "federal securities" means direct obligations of the United States, or obligations the principal and interest of which are unconditionally guaranteed by the United States, or an ownership interest in either of the foregoing;
[M.] N. "force account construction" means construction performed by the employees of a local authority rather than through a contractor;
[N.] O. "holders" means persons who are owners of bonds, whether registered or not, issued pursuant to the Wastewater Facility Construction Loan Act;
[O.] P. "issuing resolution" means a formal statement adopted by the board to issue bonds pursuant to the Wastewater Facility Construction Loan Act, including any trust agreement, trust indenture or similar instrument providing terms and conditions for the bonds to be issued; and
[P.] Q. "recommending resolution" means a formal statement adopted by the commission recommending to the board that bonds be issued pursuant to the Wastewater Facility Construction Loan Act, including any trust agreement, trust indenture or similar instrument providing the terms and conditions for the bonds that are issued."
Section 3. Section 74-6A-4 NMSA 1978 (being Laws 1991, Chapter 172, Section 4) is amended to read:
"74-6A-4. FUND CREATED--ADMINISTRATION.--
A. There is created in the state treasury a revolving loan fund to be known as the "wastewater facility construction loan fund", which shall be administered by the division as agent for the commission and operated as a separate account. The commission is authorized to establish procedures and adopt regulations as required to administer the fund in accordance with the Clean Water Act and state law. Any regulations relating to the issuance of bonds and the expenditure of proceeds of bond issues shall be approved by the board. The commission shall, whenever possible, coordinate application procedures and funding cycles with the New Mexico Community Assistance Act.
B. The following shall be deposited directly in the fund:
(1) grants from the federal government or its agencies allotted to the state for capitalization of the fund;
(2) funds as appropriated by the legislature to implement the provisions of the Wastewater Facility Construction Loan Act or to provide state matching funds that are required by the terms of any federal grant under the Clean Water Act;
(3) loan principal, interest and penalty payments if required by the terms of any federal grant under the Clean Water Act;
(4) money transferred from the account as needed to fulfill requirements of the Clean Water Act; and
(5) any other public or private money dedicated to the fund.
C. Money in the fund is appropriated for expenditure by the commission in a manner consistent with the terms and conditions of the federal capitalization grants and the Clean Water Act and may be used:
(1) to provide loans for the construction or rehabilitation of wastewater facilities;
(2) to purchase, refund or refinance obligations incurred by local authorities in the state for wastewater facilities where the obligations were incurred and construction commenced after March 7, 1985;
(3) to guarantee, or purchase insurance for, obligations of local authorities to improve credit market access or reduce interest rates;
(4) to provide a source of revenue or security for the payments of principal and interest on bonds recommended by the commission and issued by the board if the proceeds of the bonds are deposited in the fund to the extent provided in the terms of the federal grant;
(5) to provide loan guarantees for similar revolving funds established by local authorities;
(6) to fund the administrative expenses of the board, the commission and the division necessary to implement the provisions of the Wastewater Facility Construction Loan Act, including but not limited to costs of servicing loans and issuing bonds, fund start-up costs, financial management and legal consulting fees and reimbursement costs for support services from other state agencies; and
(7) to fund other programs for which the federal government authorizes use of wastewater grants or to provide for any other expenditure consistent with the Clean Water Act grant program and state law.
D. Pursuant to regulations adopted by the commission, the division may impose and collect [a] an administrative fee from each local authority that receives financial assistance from the fund, which fee shall be [used solely for the costs of administering the fund] deposited in the clean water administrative fund.
E. Money not currently needed for the operation of the fund or otherwise dedicated may be invested according to the provisions of Chapter 6, Article 10 NMSA 1978, and all interest earned on such investments shall be credited to the fund. Money remaining in the fund at the end of any fiscal year shall not revert to the general fund but shall accrue to the credit of the fund.
F. Acting as agent for the commission, the division shall maintain full authority for the operation of the fund in accordance with applicable federal and state law, including but not limited to preparing the annual intended use plan and ensuring that loan recipients are on the state priority list or otherwise satisfy Clean Water Act requirements.
G. The division shall establish fiscal controls and accounting procedures that are sufficient to [assure] ensure proper accounting for fund payments, disbursements and balances and shall provide an annual report and an annual independent audit on the fund to the governor and to the United States environmental protection agency as required by the Clean Water Act."
Section 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2007.
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