NOTE:  As provided in LFC policy, this report is intended only 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 for other purposes.

 

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

 

 

 

SPONSOR:

Tripp

 

DATE TYPED:

01/31/03

 

HB

217

 

SHORT TITLE:

Expand NMFA Definition of Qualified Entity

 

SB

 

 

 

ANALYST:

L. Kehoe

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

 

 

NFI

 

 

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

 SOURCES OF INFORMATION

 

Legislative files

 

SUMMARY

 

House Bill 217 expands the definition of “qualified entities” to include an acequia association, public improvement district, federally chartered college in New Mexico, or a consortium of Indian entities located wholly or partially in New Mexico; and increases the allowable amount of a loan through the equipment program at any one time from $500 to $750.

 

     Significant Issues

 

The New Mexico Finance Authority (NMFA) may use money in the Public Project Revolving Loan Fund (PPRF) to make loans to assist qualified entities through its Equipment Program for financing public projects subject to specific authorization by law for each project.  The Equipment Program is designed to finance the acquisition of equipment for fire protection; law enforcement and protection; computer and data processing; street and road construction and maintenance; emergency medical services; solid waste collection; transfer and disposal; radio and telecommunications; utility system purposes; and for the acquisition, construction and improvement of fire stations.

 

 

NMFA is currently authorized to offer loan assistance to the state or any agency or institution of the state or any county, municipality, school district, land grant corporation, intercommunity water or natural gas supply association or corporation, special district, community water association, 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.  House Bill 217 would make an acequia association, public improvement district, federally chartered college in New Mexico, or a consortium of Indian entities located wholly or partially in New Mexico eligible to apply for equipment loans. 

 

House Bill 217 increases the maximum allowable amount of a loan at any one time through the Equipment Program from $500 to $750.  Due to severe drought conditions in New Mexico, qualified entities are faced with an increased demand for fire equipment.  The proposed increase would allow NMFA to better serve clients seeking assistance with protection equipment. 

 

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