SENATE BILL 327

56th legislature - STATE OF NEW MEXICO - first session, 2023

INTRODUCED BY

Michael Padilla

AN ACT

RELATING TO ECONOMIC DEVELOPMENT; EXTENDING THE DATE BY WHICH STATEWIDE ECONOMIC DEVELOPMENT FINANCE ACT STANDARD PROJECTS MUST BE APPROVED BY LAW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 6-25-6 NMSA 1978 (being Laws 2016, Chapter 38, Section 1, as amended) is amended to read:

     "6-25-6. NEW MEXICO FINANCE AUTHORITY--ADDITIONAL POWERS AND DUTIES.--

          A. To implement a program to assist eligible entities in financing projects, the authority has the powers specified in this section.

          B. State projects receiving financing assistance with money in the fund shall first be approved by law. To protect public money in the fund or other public resources, rules of the authority relating to state projects shall include provisions to ensure achievement of the economic development goals of the state project and shall describe the means of recovering public money or other public resources if an eligible entity defaults on its obligations to the authority.

          C. Standard projects receiving financing assistance with money in the fund shall be approved by the authority pursuant to rules approved by the New Mexico finance authority oversight committee. Beginning July 1, [2023] 2027, standard projects shall first be approved by law.

          D. The authority may:

                (1) issue project revenue bonds on behalf of an eligible entity, payable from the revenues of a project and other revenues authorized as security for the bonds, to finance a project on behalf of an eligible entity;

                (2) make loans from the fund for projects to eligible entities that establish one or more dedicated sources of revenue to repay the loan from the authority;

                (3) enter into loan participation agreements from the fund for projects, whether in the form of an interest rate buy-down, the purchase of loans or portions of loans originated and underwritten by third-party lenders or other similar arrangements;

                (4) provide loan guarantees from the fund for projects;

                (5) make, execute and enforce all contracts necessary, convenient or desirable for purposes of the authority or pertaining to project revenue bonds, economic development revolving fund bonds, loans, loan participations or loan guarantees and the Statewide Economic Development Finance Act and pay the reasonable value of services rendered to the authority pursuant to the contracts;

                (6) purchase and hold loans and loan participations in the fund at prices and in a manner determined by the authority;

                (7) sell loans and loan participations acquired or held by the authority in the fund at prices and in a manner determined by the authority;

                (8) prescribe the form of application or procedure required of an eligible entity to apply for financing assistance;

                (9) fix the terms and conditions of the financing assistance, including the priority of lien and type of collateral or other security, and enter into agreements with eligible entities with respect to financing assistance;

                (10) fix, revise from time to time, charge and collect fees and other charges in connection with the issuance of bonds; the making, purchase, participation in or guarantee of loans; and the review of proposed financing assistance to an eligible entity, whether or not the financing assistance is provided;

                (11) employ architects, engineers, accountants and attorneys; construction and financial experts; and such other advisors, consultants and agents as may be necessary in its judgment, and fix and pay their compensation;

                (12) to the extent allowed under its contracts with the holders of bonds of the authority, consent to modification of the rate of interest, time and payment of installments of principal or interest, security or any other term of financing assistance;

                (13) consider the ability of the eligible entity to secure financing for a project from other sources and the costs of that financing;

                (14) acquire fee simple, leasehold, mortgagor's or mortgagee's interests in real or personal property and sell, mortgage, convey, lease or assign that property for authority purposes; and

                (15) in the event of default by an eligible entity, enforce its rights by suit, mandamus and all other remedies available under law.

          E. The authority shall adopt rules subject to approval of the New Mexico finance authority oversight committee to:

                (1) establish procedures for applying for financing assistance;

                (2) establish credit qualifications for eligible entities and establish terms and conditions for financing assistance;

                (3) establish economic development goals for projects in consultation with the department;

                (4) establish methods for determining quantifiable benefits;

                (5) provide safeguards to protect public money and other public resources provided for a state project;

                (6) establish procedures by which the authority requests approval by law for projects receiving financing assistance with money in the fund; and

                (7) establish fees to pay the costs of evaluating, originating and administering financing assistance.

          F. The authority shall coordinate with the department to provide staffing and other assistance to the department in carrying out the department's responsibilities and activities pursuant to the Statewide Economic Development Finance Act.

          G. The authority shall report to the New Mexico finance authority oversight committee twice each year regarding the total expenditures from the economic development revolving fund for the previous fiscal year, the purposes for which expenditures were made, an analysis of the progress of the projects funded and proposals for legislative action."