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F I S C A L I M P A C T R E P O R T
SPONSOR Lundstrom
ORIGINAL DATE
LAST UPDATED
1/19/07
HB 1235
SHORT TITLE Legislative Approval for Some NMFA Projects
SB
ANALYST Kehoe
REVENUE (dollars in thousands)
Estimated Revenue
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
FY09
$1.3
NA* (See Fiscal
Narrative)
Recurring
Local
Transportation
Infrastructure
Fund
(Parenthesis ( ) Indicate Revenue Decreases)
*Not applicable at this time.
SOURCES OF INFORMATION
LFC Files
New Mexico Finance Authority
SUMMARY
Synopsis of Bill
House Bill 1235 amends the New Mexico Finance Authority Act to require legislative approval
of projects funded from the local transportation infrastructure fund.
FISCAL IMPLICATIONS
Sources of funding to the Local Transportation Infrastructure Fund include:
1.
One-half of the fee received by NMFA in issuing the state transportation bonds.
2.
Loan principal in interest repayments and principal and interest repayments from
securities held by NMFA for local transportation projects.
3.
An indeterminate appropriation from the Legislature to implement the provisions in the
bill.
4.
Other public or private money appropriated, dedicated or allocated to the fund for the
purpose of financing local transportation projects.
Currently the Department of Transportation (DOT) pays NMFA 25 basis points on each series of
bonds sold for GRIP I bonds. According to NMFA, as of December 30, 2006, the authority has
pg_0002
House Bill 1235 – Page
2
received approximately $4.5 million from administrative fees from the sale of series 2004A DOT
bonds and has transferred approximately $1.3 million to the local transportation infrastructure
fund.
During the interim, members of the NMFA Oversight Committee expressed concern about the
authority the Legislature has delegated to NMFA staff and other entities for approving projects.
Of particular concern was legislation giving the Transportation Department secretary and
metropolitan and regional planning organizations the authorization to prioritize local road
projects. The concern delayed the oversight committee’s approval of NMFA proposed rules and
regulations for administration and implementation of the local road project program.
SIGNIFICANT ISSUES
Laws of 2005 (Chapter 262) created the Local Transportation Infrastructure Fund within the
New Mexico Finance Authority for the purpose of providing local governments, not eligible for
federal funding, and whose needs have not been met by the existing Local Government road
Fund, with assistance for transportation projects. NMFA is authorized to issue and sell local
transportation project revenue bonds in compliance with the New Mexico Finance Act and rules
developed by NMFA and approved by the New Mexico Legislative Oversight Committee. The
authority may make grants from the fund to qualified entities for local transportation projects
when a grant is not more than 25 percent of the total project cost and when the qualified entity
demonstrates it has available or a binding commitment from another person to make available for
a project the portion of the total project cost not provided by the grant. The entity may enter into
a loan agreement or an agreement to sell the qualified entity’s securities with the authority, or the
may use another source of money available for the project to cover the costs not provided by the
grant.
ADMINISTRATIVE IMPLICATIONS
NMFA is responsible for the implementation, management and accountability of the local
transportation infrastructure fund.
OTHER SUBSTANTIVE ISSUES
The following table lists the financial programs and types of financial assistance that require
legislative authority and those program projects that require certification by other entities.
LMK/mt
Program
Type
Legislative
Authorization
Public Project Revolving Fund
Loan
Yes Projects under $1 million exempted
Water Project Fund
Loan
Yes Project authorized, not funding type
Drinking Water Revolving Loan Fund
Loan/Grant No Projects must appear on State’s Priority List as determined by NMED
Water and Wastewater Grant Fund
Grant
Yes Program nearing completion
Local Government Planning Fund
Loan/Grant No Loan if project funded from outside sources
Local Transportation Infrastructure Fund Loan/Grant No Projects prioritized by Metropolitan & Regional Planning Orgs & DOT
Smart Money Economic Development Fund Loan
Yes Projects Certified by NMEDD
Primary Care Capital Fund
Loan
No Projects Recommended by DoH
Behavioral Health Capital Fund
Loan
No Projects Recommended by DoH
Child Care Revolving Loan Fund
Loan
No Projects Recommended by CYFD
Energy Efficiency & Renewable Bond Act Bonds
No Projects Recommended by EMNRD
GRIP
Bonds
Yes
Stand Alone Bonds
Bonds
Yes
New Market Tax Credits
Tax Credits No
Smart Money Conduit Bonds
Bonds
No
Comments