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SPONSOR: |
SJC |
DATE TYPED: |
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HB |
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SHORT TITLE: |
NMFA Projects Without Legislative Approval |
SB |
429/SJCS |
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ANALYST: |
Kehoe |
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APPROPRIATION
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Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
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FY03 |
FY04 |
FY03 |
FY04 |
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See Narrative |
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Responses
Received From
Energy
Minerals & Natural Resources (EMNRD)
SUMMARY
Synopsis of Bill
Senate Judiciary Committee Substitute for Senate Bill 429 authorizes the NMFA to make loans and grants without specific legislative approval for projects designated as critical economic development projects under certain conditions.
Significant Issues
SB 429/SJCS gives the
NMFA the ability to aid economic development projects between legislative
sessions by providing critical infrastructure financing without legislative
authorization. This bill requires
certification by the EDD secretary, designation by the NMFA, and review by the
Legislative Oversight Committee before a project is approved.
SB 429/SJCS authorizes
NMFA to designate an urgent economic development project and provide urgent
economic development financing to a qualified entity if the Secretary of the Economic
Development Department (EDD) certifies the need for the financing and provides
documentation that: 1) the project will
have a substantial favorable economic impact and benefit to the entity; 2) financing
will prevent a new business from choosing another location outside of the state
or that the lack of financing will prevent an existing business from expanding
in a timely manner; 3) there is evidence from the business detailing the new or
expanded business opportunity and a description of the jobs to be provided and
the urgency of the public project; and 4) a resolution has been adopted by the
governing body of the qualified entity approving the project and the need for
financing.
In addition, the NMFA
must find that the timing of the financing is so urgent that the project may be
lost if the financing is delayed until specific legislative authorization can
be obtained. The project, the EDD Secretary’s
certification and the NMFA proposed designation would be reviewed by the New
Mexico Finance Authority Legislative Oversight Committee.
The authority granted
in SB 429/SJCS sunsets on
FISCAL IMPLICATIONS
SB 429/SJCS places a
limit of $2,000.0 on any economic development project financed under the
requirements of this bill and a $20,000.0 limit on the total amount financed
under the provisions of this bill in any one fiscal year.
ADMINISTRATIVE IMPLICATIONS
The NMFA shall adopt
rules governing the process for reviewing urgent economic development projects
and the submission of certification requests.
OTHER SUBSTANTIVE ISSUES
When economic development projects arise that
require water or wastewater infrastructure improvements, there is no pool of
money to provide assistance. Water can be a significant issue to companies
considering relocation or expansion to the state. The existence of the
“critical economic development project” section is a remedy and an incentive
for business growth in