AN ACT
RELATING TO THE NEW MEXICO FINANCE
AUTHORITY; EXPANDING THE DEFINITION OF QUALIFIED ENTITY; INCREASING THE
ALLOWABLE AMOUNT FOR THE EQUIPMENT PROGRAM.
BE IT ENACTED BY THE LEGISLATURE OF
THE STATE OF NEW MEXICO:
Section 1. Section 6-21-3 NMSA 1978 (being Laws 1992,
Chapter 61, Section 3, as amended) is amended to read:
"6-21-3. DEFINITIONS.--As used in the New Mexico
Finance Authority Act:
A. "authority" means the New Mexico
finance authority;
B. "bond" means any bonds, notes,
certificates of participation or other evidence of indebtedness;
C. "bondholder" or "holder"
means a person who is the owner of a bond, whether registered or not;
D. "emergency public project" means a
public project:
(1) made necessary by an unforeseen occurrence or
circumstance threatening the public health, safety or welfare; and
(2) requiring the immediate expenditure of money
that is not within the available financial resources of the qualified entity as
determined by the authority;
E. "public project" means the
acquisition, construction, improvement, alteration or reconstruction of assets
of a long-term capital nature by a qualified entity, including land; buildings;
water rights; water, sewerage and waste disposal systems; streets; airports;
municipal utilities; parking facilities; and machinery, furniture and
equipment. "Public project"
includes all proposed expenditures related to the entire undertaking. "Public project" also includes the
acquisition, construction or improvement of real property, buildings,
facilities and other assets by the authority for the purpose of leasing the
property;
F. "qualified entity" means the state
or an agency or institution of the state or a county, municipality, school
district, two-year public post-secondary educational institution, land grant
corporation, acequia association, public improvement district, federally
chartered college located in New Mexico, intercommunity water or natural gas
supply association or corporation, special district or community water
association or an Indian nation, tribe or pueblo located wholly or partially in
New Mexico, including a political subdivision or a wholly owned enterprise of
an Indian nation, tribe or pueblo or a consortium of those Indian entities; and
G. "security" or
"securities", unless the context indicates otherwise, means bonds,
notes or other evidence of indebtedness issued by a qualified entity or leases
or certificates or other evidence of participation in the lessor's interest in
and rights under a lease with a qualified entity and that are payable from
taxes, revenues, rates, charges, assessments or user fees or from the proceeds
of funding or refunding bonds, notes or other evidence of indebtedness of a
qualified entity or from certificates or evidence of participation in a lease
with a qualified entity."
Section 2. Section 6-21-6 NMSA 1978 (being Laws 1992,
Chapter 61, Section 6, as amended) is amended to read:
"6-21-6. PUBLIC PROJECT REVOLVING FUND--PURPOSE--
ADMINISTRATION.--
A. The "public project revolving fund"
is created within the authority. The
fund shall be administered by the authority as a separate account, but may
consist of such subaccounts as the authority deems necessary to carry out the
purposes of the fund. The authority may
establish procedures and adopt rules as required to administer the fund in
accordance with the New Mexico Finance Authority Act.
B. Except as otherwise provided in the New
Mexico Finance Authority Act, money from payments of principal of and interest
on loans and payments of principal of and interest on securities held by the
authority for public projects authorized specifically by law shall be deposited
in the public project revolving fund.
The fund shall also consist of any other money appropriated, distributed
or otherwise allocated to the fund for the purpose of financing public projects
authorized specifically by law.
C. Money appropriated to pay administrative
costs, money available for administrative costs from other sources and money
from payments of interest on loans or securities held by the authority,
including payments of interest on loans and securities held by the authority
for public projects authorized specifically by law, that represents payments
for administrative costs shall not be deposited in the public project revolving
fund and shall be deposited in a separate account of the authority and may be
used by the authority to meet administrative costs of the authority.
D. Except as otherwise provided in the New
Mexico Finance Authority Act, money in the public project revolving fund is
appropriated to the authority to pay the reasonably necessary costs of
originating and servicing loans, grants or securities funded by the fund and to
make loans or grants and to purchase or sell securities to assist qualified
entities in financing public projects in accordance with the New Mexico Finance
Authority Act and pursuant to specific authorization by law for each project.
E. Money in the public project revolving fund
not needed for immediate disbursement, including money held in reserve, may be
deposited with the state treasurer for
short-term investment pursuant to
Section 6-10-10.1 NMSA 1978 or may be invested in direct and general
obligations of or obligations fully and unconditionally guaranteed by the
United States, obligations issued by agencies of the United States, obligations
of this state or any political subdivision of the state, interest-bearing time
deposits, commercial paper issued by corporations organized and operating in
the United States and rated "prime" quality by a national rating
service, other investments permitted by Section 6-10-10 NMSA 1978 or as otherwise
provided by the trust indenture or bond resolution, if money is pledged for or
secures payment of bonds issued by the authority.
F. The authority shall establish fiscal controls
and accounting procedures that are sufficient to assure proper accounting for
public project revolving fund payments, disbursements and balances.
G. Money on deposit in the public project
revolving fund may be used to make interim loans for a term not exceeding two
years to qualified entities for the purpose of providing interim financing for
any project approved or funded by the legislature.
H. Money on deposit in the public project
revolving fund may be used to acquire securities or to make loans to qualified
entities in connection with the equipment program. As used in this subsection, "equipment
program" means the program of the authority designed to finance:
(1) the acquisition of equipment for:
(a) fire protection;
(b) law enforcement and protection;
(c) computer and data processing;
(d) street and road construction and maintenance;
(e) emergency medical services;
(f) solid waste collection, transfer and
disposal;
(g) radio and telecommunications; and
(h) utility system purposes; and
(2) the acquisition, construction and improvement
of fire stations.
I. The amount of securities acquired from or the
loan made to a qualified entity at any one time pursuant to Subsection H of this section shall not exceed
seven hundred fifty thousand dollars ($750,000). The authority shall either obtain specific
authorization by law for the projects funded through the equipment program at a
legislative session subsequent to the acquisitions of the securities or the
making of loans or issue bonds within two years of the date the securities are
acquired or within two years of the date on which the loans are made and use
the bond proceeds to reimburse the public project revolving fund for the
amounts temporarily used to acquire securities or to make loans. The temporarily funded projects under the
equipment program are not required to obtain specific authorization by law
required of projects permanently funded from the public project revolving fund,
as provided in this section and Section 6-21-8 NMSA 1978.
J.
Money on deposit in the public project revolving fund may be designated
as a reserve for any bonds issued by the authority, including bonds payable
from sources other than the public project revolving fund, and the authority
may covenant in any bond resolution or trust indenture to maintain and
replenish the reserve from money deposited in the public project revolving fund
after issuance of bonds by the authority.
K. Money on deposit in the public project
revolving fund may be used to purchase bonds issued by the authority, which are
payable from any designated source of revenues or collateral. Purchasing and holding the bonds in the
public project revolving fund shall not, as a matter of law, result in
cancellation or merger of the bonds notwithstanding the fact that the authority
as the issuer of the bonds is obligated to make the required debt service
payments and the public project revolving fund held by the authority is
entitled to receive the required debt service payments."
Section 3. EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2003.
HB 217
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