HB 290

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AN ACT

RELATING TO FINANCE; AMENDING THE NEW MEXICO FINANCE AUTHORITY

ACT; AUTHORIZING THE NEW MEXICO FINANCE AUTHORITY TO USE THE

PUBLIC PROJECT REVOLVING FUND TO MAKE LOANS FOR SMALL PROJECTS

WITHOUT SPECIFIC AUTHORIZATION BY LAW, TO CAPITALIZE PROGRAMS

AUTHORIZED BY LAW AND TO FINANCE PROJECTS OF SUPPORT

ORGANIZATIONS AFFILIATED WITH HIGHER EDUCATIONAL INSTITUTIONS;

CHANGING THE TITLE OF EXECUTIVE DIRECTOR TO CHIEF EXECUTIVE

OFFICER; AMENDING A SECTION OF LAWS 2003 TO EXTEND THE

AUTHORIZATION FOR FINANCING OF URGENT ECONOMIC DEVELOPMENT

PUBLIC PROJECTS WITHOUT SPECIFIC LEGISLATIVE AUTHORIZATION;

DECLARING AN EMERGENCY.

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

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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

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supply association or corporation, special district or

community water association, nonprofit foundation or other

support organization affiliated with a public university,

college or other higher educational institution located in New

Mexico, 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 6-21-4 NMSA 1978 (being Laws 1992,

Chapter 61, Section 4, as amended) is amended to read:

"6-21-4. NEW MEXICO FINANCE AUTHORITY CREATED--

MEMBERSHIP--QUALIFICATIONS--QUORUM--MEETINGS--COMPENSATION--

BOND.--

A. There is created a public body politic and

corporate, separate and apart from the state, constituting a

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governmental instrumentality to be known as the "New Mexico

finance authority" for the performance of essential public

functions.

B. The authority shall be composed of twelve

members. The state investment officer, the secretary of

finance and administration, the secretary of economic

development, the secretary of energy, minerals and natural

resources, the secretary of environment, the executive

director of the New Mexico municipal league and the executive

director of the New Mexico association of counties or their

designees shall be ex-officio members of the authority with

voting privileges. The governor, with the advice and consent

of the senate, shall appoint to the authority the chief

financial officer of a state higher educational institution

and four members who are residents of the state. The

appointed members shall serve at the pleasure of the governor.

C. The appointed members of the authority shall be

appointed to four-year terms. The initial members shall be

appointed to staggered terms of four years or less, so that

the term of at least one member expires on January 1 of each

year. Vacancies shall be filled by appointment by the

governor for the remainder of the unexpired term. Any member

of the authority shall be eligible for reappointment.

D. Each appointed member before entering upon his

duty shall take an oath of office to administer the duties of

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his office faithfully and impartially. A record of the oath

shall be filed in the office of the secretary of state.

E. The governor shall designate an appointed

member of the authority to serve as chairman. The authority

shall elect annually one of its members to serve as vice

chairman. The authority shall appoint and prescribe the

duties of such other officers, who need not be members, as the

authority deems necessary or advisable, including chief

executive officer and a secretary, who may be the same person.

The authority may delegate to one or more of its members,

officers, employees or agents such powers and duties as it may

deem proper and consistent with the New Mexico Finance

Authority Act.

F. The chief executive officer of the authority

shall direct the affairs and business of the authority,

subject to the policies, control and direction of the

authority. The secretary of the authority shall keep a record

of the proceedings of the authority and shall be custodian of

all books, documents and papers filed with the authority, the

minute book or journal of the authority and its official seal.

The secretary shall make copies of all minutes and other

records and documents of the authority and give certificates

under the official seal of the authority to the effect that

the copies are true copies, and all persons dealing with the

authority may rely upon the certificates.

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G. Meetings of the authority shall be held at the

call of the chairman or whenever three members shall so

request in writing. A majority of members then serving

constitutes a quorum for the transaction of any business. The

affirmative vote of at least a majority of a quorum present

shall be necessary for any action to be taken by the

authority. An ex-officio member may designate in writing

another person to attend meetings of the authority and to the

same extent and with the same effect act in his stead. No

vacancy in the membership of the authority shall impair the

right of a quorum to exercise all rights and perform all

duties of the authority.

H. Each member of the authority shall give bond as

provided in the Surety Bond Act. All costs of the surety

bonds shall be borne by the authority.

I. The authority is not created or organized, and

its operations shall not be conducted, for the purpose of

making a profit. No part of the revenues or assets of the

authority shall benefit or be distributable to its members,

officers or other private persons. The members of the

authority shall receive no compensation for their services,

but shall be reimbursed for actual and necessary expenses at

the same rate and on the same basis as provided for public

officers in the Per Diem and Mileage Act.

J. The authority shall not be subject to the

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supervision or control of any other board, bureau, department

or agency of the state except as specifically provided in the

New Mexico Finance Authority Act. No use of the terms "state

agency" or "instrumentality" in any other law of the state

shall be deemed to refer to the authority unless the authority

is specifically referred to in the law.

K. The authority is a governmental instrumentality

for purposes of the Tort Claims Act."

Section 3. 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

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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

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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 small loan

program. As used in this subsection, "small loan program"

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means the program of the authority designed to provide

financing for public projects in amounts not to exceed one

million dollars ($1,000,000) per project. A public project

financed pursuant to the small loan program shall not require

specific authorization by law.

I. 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.

J. 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.

K. Money on deposit in the public project

revolving fund may be used to capitalize other financing

programs of the authority authorized by law, either directly

or from proceeds of bonds issued by the authority and secured

by money in the public project revolving fund."

Section 4. Laws 2003, Chapter 325, Section 4 is amended

to read:

"Section 4. DELAYED REPEAL.--The provisions of Section

6-21-6.6 NMSA 1978 are repealed effective June 30, 2009."

Section 5. EMERGENCY.--It is necessary for the public

peace, health and safety that this act take effect

immediately. HB 290

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