[1] 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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F I S C A L   I M P A C T   R E P O R T

 

 

 

SPONSOR:

Burpo

 

DATE TYPED:

01/28/02

 

HB

16/aHTRC

 

SHORT TITLE:

NMFA Emergency Public Projects

 

SB

 

 

 

ANALYST:

Kehoe

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

FY02

FY03

 

 

NFI

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

SOURCES OF INFORMATION

 

New Mexico Finance Authority

LFC Files                                                                                                      

 

SUMMARY

 

     Synopsis of HTRC Amendment

 

The House Taxation and Revenue amendment extends the sunset provision for the NMFA Emergency Funding Program through June 30, 2005.

 

     Synopsis of Original Bill

 

House Bill 16 removes the sunset provision regarding emergency public projects funded by the NMFA from the Public Project Revolving Fund.

 

     Significant Issues

 

The 1999 Legislature created the Emergency Funding Program allowing the NMFA to make a limited number of loans from the Public Project Revolving Fund to qualified local government entities for emergency public projects.  The legislation authorized NMFA to make up $3 million in emergency loans per fiscal year.  Individual loans may be for up to $500.0 for emergency projects only.  The NMFA applies the definition of “emergency public projects” similar to the definition used by the State Board of Finance for emergency funding when approving the loans. 


Requirements to constitute an emergency include an unforeseen occurrence or circumstance to threaten public health, safety or welfare; require the immediate expenditure of money; and, not be within the available financial resources of the applicant.  The current provision of the law is effective until June 30, 2002.

 

House Bill 16 removes the sunset provision and allows the NMFA to make emergency public project loans, without legislative authorization, indefinitely.

 

FISCAL IMPLICATIONS

 

House Bill 16 authorizes the NMFA to make loans for up to $3 million per fiscal year for emergency purposes from the Public Project Revolving Fund, thereby reducing the loan capacity from the fund for other non-emergency public projects authorized by the legislature.

 

LMK/ar/njw

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