NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

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(Parenthesis ( ) Indicate Expenditure Decreases)

(Parenthesis ( ) Indicate Revenue Decreases)

Duplicates SB 2, HB 13

SOURCES OF INFORMATION

New Mexico Finance Authority (NMFA)

SUMMARY

Synopsis of Bill

House Bill 4 authorizes the New Mexico Finance Authority (NMFA) to provide loans to five qualified entities for public projects from the Public Project Revolving Fund (PPRF).

Significant Issues

House Bill 4, Section 1, provides legislative authority to the NMFA to make loans to five local entities for the following projects:

1. to Elephant Butte for a water project;

2. to Gallup for an equipment project;

3. to Hagerman for a building and related infrastructure;

4. to the South Central Solid Waste Authority for refinancing a project; and

5. to Tularosa for a building project.

Loans can only be made to those qualifying entities that can meet the financial criteria established by the NMFA and that can identify sufficient sources for repayment of the loan.

Section 2 of the bill provides that a project be considered void if by the end of fiscal year 2003 the grantee does not exercise its intent to pursue a loan from the Public Project Revolving Fund.

Section 3 of the bill contains an emergency clause.

FISCAL IMPLICATIONS

The authorization in House Bill 4 does not impact the general fund. However, loans for the project will decrease the loaning capacity of the Public Project Revolving Fund.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

House Bill 4 duplicates Senate Bill 2 and House Bill 13.

LMK/gm