Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports if they are used for other purposes.

 

Current FIRs (in HTML & Adobe PDF formats) are available on the NM Legislative Website (legis.state.nm.us).  Adobe PDF versions include all attachments, whereas HTML versions may not.  Previously issued FIRs and attachments may also be obtained from the LFC in Suite 101 of the State Capitol Building North.

 

 

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

 

 

 

SPONSOR

Taylor, J. G.

DATE TYPED

02/5/04

HB

358

 

SHORT TITLE

NMFA Water Project Fund Loans

SB

 

 

 

ANALYST

Kehoe

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

FY04

FY05

NFI

 

 

 

 

NFI

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Duplicates Senate Bill 110

 

SOURCES OF INFORMATION

 

LFC Files

New Mexico Finance Authority (NMFA)

 

SUMMARY

 

Synopsis of Bill

 

House Bill 358 authorizes NMFA to make loans or grants from the water project fund to 17 qualified entities for water projects.

 

Significant Issues

 

FISCAL IMPLICATIONS

 

Laws 2003 (Chapter 134) requires the Board of Finance to authorize and issue bonds for 10 percent of the severance tax bonding capacity each year for deposit in the water project fund.  Money in the water project fund may be used to make loans or grants to qualified entities for projects determined by the Water Trust Board and approved by the legislature.  Money from the severance tax bonds may not be used to pay indirect project costs, and any unexpended balance from proceeds of severance tax bonds issued for a water project shall revert to the severance tax bonding fund within six months of completion of the water project.  NMFA is responsible for monitoring and ensuring proper reversions.

 

 

The 10 percent set-aside of severance tax bond capacity for FY04-05 will provide approximately $12.6 million to the water project fund for eligible water projects.  Eligible water projects are defined as those involving: 1) the storage, conveyance or delivery of water to end-users; 2) the implementation of federal Endangered Species Act collaborative programs; 3) the restoration of watersheds; 4) flood prevention; 5) conservation; or 6) for recycling, treatment or reuse of water.

 

ADMINISTRATIVE IMPLICATIONS

 

NMFA currently administers the water project fund and provides staff support to the Water Trust Board. 

 

LMK/lg