HOUSE TAXATION AND REVENUE COMMITTEE SUBSTITUTE FOR
HOUSE BILL 111
49th legislature - STATE OF NEW MEXICO - second session, 2010
AN ACT
RELATING TO THE NEW MEXICO FINANCE AUTHORITY; CREATING THE DISADVANTAGED COMMUNITY SUBACCOUNT WITHIN THE PUBLIC PROJECT REVOLVING FUND; ALLOCATING MONEY FROM THE PUBLIC PROJECT REVOLVING FUND TO THE DISADVANTAGED COMMUNITY SUBACCOUNT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. A new section of the New Mexico Finance Authority Act is enacted to read:
"[NEW MATERIAL] DISADVANTAGED COMMUNITY SUBACCOUNT--CREATED--PURPOSE.--
A. The "disadvantaged community subaccount" is created within the public project revolving fund and shall be administered by the authority. The subaccount consists of allocations made to the subaccount from the public project revolving fund and other money appropriated by the legislature or distributed or otherwise allocated to the subaccount for the purpose of supporting disadvantaged community projects. B. The authority may establish procedures and adopt rules subject to the approval of the New Mexico finance authority oversight committee to administer the disadvantaged community subaccount and to originate loans for disadvantaged community projects approved by the authority. To protect public money in the subaccount or other public resources, rules of the authority shall describe the means of recovering public money or other public resources if a disadvantaged community defaults on its obligations to the authority.
C. As used in this section:
(1) "disadvantaged community" means a qualified entity as defined in the New Mexico Finance Authority Act and meeting the criteria for disadvantaged status as determined by rule of the authority that is approved by the New Mexico finance authority oversight committee; and
(2) "disadvantaged community project" means a public project in a disadvantaged community."
Section 2. Section 6-21-6.1 NMSA 1978 (being Laws 1994, Chapter 145, Section 2, as amended) is amended to read:
"6-21-6.1. PUBLIC PROJECT REVOLVING FUND--APPROPRIATIONS TO OTHER FUNDS.--
A. The authority and the department of environment may enter into a joint powers agreement pursuant to the Joint Powers Agreements Act for the purpose of describing and allocating duties and responsibilities with respect to creation of an integrated loan and grant program to be financed through issuance of bonds payable from the public project revolving fund. The bonds may be issued in installments or at one time by the authority in amounts authorized by law. The aggregate amount of bonds authorized and outstanding pursuant to this subsection shall not be greater than the amount of bonds that may be annually repaid from an amount not to exceed thirty-five percent of the governmental gross receipts tax proceeds distributed to the public project revolving fund in the preceding fiscal year. The net proceeds may be used for purposes of the [water and wastewater] local government planning fund and the water and wastewater project grant fund as specified in the New Mexico Finance Authority Act or for purposes of the Wastewater Facility Construction Loan Act, the Rural Infrastructure Act, the Solid Waste Act or the Drinking Water State Revolving Loan Fund Act.
B. Public projects funded pursuant to the Wastewater Facility Construction Loan Act, the Rural Infrastructure Act, the Solid Waste Act or the Drinking Water State Revolving Loan Fund Act shall not require specific authorization by law as required in Sections 6-21-6 and 6-21-8 NMSA 1978.
C. At the end of each fiscal year, after all debt service charges, replenishment of pledged reserves and administrative costs on all outstanding bonds, notes or other obligations payable from the public project revolving fund are satisfied, an aggregate amount not to exceed thirty-five percent of the governmental gross receipts tax proceeds distributed to the public project revolving fund in the preceding fiscal year less all debt service charges and administrative costs of the authority paid in the preceding fiscal year on bonds issued pursuant to this section may be appropriated by the legislature from the public project revolving fund to the following funds for local infrastructure financing:
(1) the wastewater facility construction loan fund for purposes of the Wastewater Facility Construction Loan Act;
(2) the rural infrastructure revolving loan fund for purposes of the Rural Infrastructure Act;
(3) the solid waste facility grant fund for purposes of the Solid Waste Act;
(4) the drinking water state revolving loan fund for purposes of the Drinking Water State Revolving Loan Fund Act;
(5) the water and wastewater project grant fund for purposes specified in the New Mexico Finance Authority Act; or
(6) the [water and wastewater] local government planning fund for purposes specified in the New Mexico Finance Authority Act.
D. The authority and the department of environment in coordination with the New Mexico finance authority oversight committee may recommend annually to each regular session of the legislature amounts to be appropriated to the funds listed in Subsection C of this section for local infrastructure financing.
E. An amount equal to no less than twenty-five percent of the governmental gross receipts tax proceeds distributed to the public project revolving fund in the preceding fiscal year less all debt service charges and administrative costs of the authority paid in the preceding fiscal year on bonds issued pursuant to this section shall be allocated to the disadvantaged community subaccount."
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