SENATE BILL 7

56th legislature - STATE OF NEW MEXICO - first special session, 2024

INTRODUCED BY

William F. Burt and Harlan Vincent and William E. Sharer and Greg Nibert and Mark Moores

 

 

 

 

AN ACT

RELATING TO PUBLIC FINANCE; REQUIRING THE LOCAL GOVERNMENT DIVISION OF THE DEPARTMENT OF FINANCE AND ADMINISTRATION TO PROVIDE ZERO-INTEREST LOANS TO FEDERAL DISASTER RESPONSE PUBLIC ASSISTANCE ELIGIBLE APPLICANTS FOR PROJECTS TO REPLACE OR REPAIR PUBLIC INFRASTRUCTURE DAMAGED BY FIRE, FLOODING, DEBRIS FLOWS OR HAIL CAUSED BY OR STEMMING FROM THE SALT FIRE, THE SOUTH FORK FIRE OR STORM EVENTS THAT SERVED AS THE BASIS FOR THE FEDERAL EMERGENCY MANAGEMENT AGENCY'S DISASTER DECLARATION FEMA-4795-DR AS AMENDED ON JULY 11, 2024; REQUIRING APPROVAL FOR FEDERAL ASSISTANCE FUNDING; REQUIRING REIMBURSEMENT CONTRACTS; PROVIDING FOR ENFORCEMENT; MAKING AN APPROPRIATION; DECLARING AN EMERGENCY.

 

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

     SECTION 1. TEMPORARY PROVISION--LOANS TO FEDERAL DISASTER RESPONSE PUBLIC ASSISTANCE ELIGIBLE APPLICANTS--REPLACEMENT OR REPAIR OF PUBLIC INFRASTRUCTURE DAMAGED BY FIRE, FLOODING, DEBRIS FLOWS OR HAIL--REQUIREMENT FOR PUBLIC ASSISTANCE GRANTS--REPORTS.--

          A. The local government division of the department of finance and administration, in consultation with the homeland security and emergency management department, shall provide zero-interest reimbursable loans to federal disaster response public assistance eligible applicants that have been approved for federal public assistance funding for projects to replace or repair public infrastructure damaged by fire, flooding, debris flows or hail caused by or stemming from the Salt fire, the South Fork fire or storm events that serve as the basis for the federal emergency management agency's disaster declaration FEMA-4795-DR as amended on July 11, 2024. The local government division shall require a contract for reimbursement from a recipient receiving a loan pursuant to this section. The contract shall specify:

                (1) that the recipient of the loan shall pay the loan first using dollars received from the approved federal public assistance funding that serves as the basis for the loan;

                (2) that the recipient of the loan shall repay the loan within ninety days of having received the approved federal public assistance funding;

                (3) such notice or reporting requirements that the local government division deems necessary to be sufficiently informed regarding compliance with Paragraphs (1) and (2) of this subsection; and

                (4) that, upon failure to meet a requirement of this subsection, the loan shall be repaid at current market interest rates.

          B. All loan repayments made pursuant to this section shall be deposited into the general fund.

          C. The secretary of finance and administration shall take any and all legal actions necessary to enforce the terms of contracts entered into pursuant to this section.

          D. On or before April 1, 2025, and every three months thereafter, the local government division shall provide a report to the legislative finance committee and the governor regarding the loans made pursuant to this section, including: the projects for which loan contracts have been made, the dollar amounts of those contracts, the repayments made pursuant to contracts, any breaches of contract and subsequent enforcement actions pursuant to this section. Reports pursuant to this subsection shall cease upon the final repayment on a contract pursuant to this section.

     SECTION 2. APPROPRIATION.--

          A. Two hundred million dollars ($200,000,000) is appropriated from the general fund to the local government division of the department of finance and administration for expenditure in fiscal years 2025 and 2026 for the following purposes:

                (1) two hundred fifty thousand dollars ($250,000) shall be used for issuance of loans and administration and enforcement of loan contracts entered into pursuant to Section 1 of this act; and

                (2) one hundred ninety-nine million seven hundred fifty thousand dollars ($199,750,000) shall be used to provide loans pursuant to Section 1 of this act.

          B. Any unexpended or unencumbered balance remaining at the end of fiscal year 2026 shall revert to the general fund.

     SECTION 3. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.

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