SENATE BILL 920
48th legislature - STATE OF NEW MEXICO - first session, 2007
INTRODUCED BY
Carlos R. Cisneros
AN ACT
RELATING TO ENVIRONMENTAL IMPROVEMENT; ENACTING THE LIQUID WASTE REVOLVING LOAN FUND ACT; PROVIDING FOR LOANS TO LOW-INCOME HOUSEHOLDS FOR EXPENSES RELATED TO INSTALLATION OF ON-SITE LIQUID WASTE TREATMENT AND DISPOSAL SYSTEMS; CREATING THE LIQUID WASTE REVOLVING LOAN FUND; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. A new section of the Environmental Improvement Act is enacted to read:
"[NEW MATERIAL] SHORT TITLE.--This act may be cited as the "Liquid Waste Revolving Loan Fund Act"."
Section 2. A new section of the Environmental Improvement Act is enacted to read:
"[NEW MATERIAL] DEFINITIONS.--As used in the Liquid Waste Revolving Loan Fund Act:
A. "department" means the department of environment;
B. "fund" means the liquid waste revolving loan fund; and
C. "indigent recipient" means an owner of an owner-occupied single-family dwelling, an owner-occupied single-family dwelling with a guest house or an owner-occupied duplex whose household income does not exceed two hundred fifty percent of the federal poverty level."
Section 3. A new section of the Environmental Improvement Act is enacted to read:
"[NEW MATERIAL] LIQUID WASTE REVOLVING LOAN FUND CREATED--ADMINISTRATION.--
A. The "liquid waste revolving loan fund" is created in the state treasury. The fund consists of appropriations, gifts, grants, donations and bequests to the fund. Money in the fund shall not revert or be transferred to any other fund at the end of a fiscal year, and income from investment of the fund shall be credited to the fund. The department shall administer the fund, and money in the fund is appropriated to the department for the purposes of the Liquid Waste Revolving Loan Fund Act. Administrative costs of the fund shall be paid by the department until interest revenues in the fund are sufficient to cover administrative costs, at which time administrative costs may be paid from the fund. Expenditures from the fund for loans to indigent recipients shall be made on warrant of the secretary of finance and administration on vouchers signed by the secretary of environment.
B. Money in the fund shall be used to provide low-interest, long-term loans to indigent recipients for:
(1) permitting, site evaluation, design, purchase and installation costs of a new on-site liquid waste treatment and disposal system; and
(2) up to two years of maintenance, operation and any required testing of the on-site liquid waste treatment and disposal system.
C. The department shall not establish minimum credit qualifications for indigent recipients as a condition for receiving a loan. Loans from the fund shall be made by the department for a term not to exceed forty years, with an annual interest rate equal to the prime rate as published in the Wall Street Journal on the date of the loan. During the term of the loan, the department shall reduce the interest rate of the loan by:
(1) one percentage point below the prime rate if the household income of a recipient of the loan decreases to no less than one hundred fifty percent but no more than two hundred percent of the federal poverty level;
(2) two percentage points below the prime rate if the household income of an indigent recipient of the loan decreases to no less than one hundred percent but no more than one hundred fifty percent of the federal poverty level; or
(3) three percentage points below the prime rate if the household income of an indigent recipient of the loan decreases to less than one hundred percent of the federal poverty level.
D. A loan shall be repaid in equal annual installments, with the first annual installment due one calendar year from the date on which the loan is issued. Expenditures from the fund shall be supported by loan documents evidencing the intent of the borrower to repay the loan. E. The department, in conjunction with the New Mexico finance authority, shall promulgate rules necessary for the administration of the liquid waste revolving loan fund, including the application procedure and requirements for disbursing loans."
Section 4. APPROPRIATION.--Five million dollars ($5,000,000) is appropriated from the general fund to the department of environment for expenditure in fiscal year 2008 and subsequent fiscal years to carry out the provisions of the Liquid Waste Revolving Loan Fund Act. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund.
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