SENATE BILL 251
49th legislature - STATE OF NEW MEXICO - second session, 2010
INTRODUCED BY
Lynda M. Lovejoy
AN ACT
RELATING TO CAPITAL OUTLAY; AUTHORIZING CHANGES IN PURPOSE FOR FUNDING FOR CAPITAL OUTLAY PROJECTS TO BE LOCATED ON TRIBAL LAND FOR PROJECTS IDENTIFIED BY THE TRIBAL INFRASTRUCTURE BOARD THAT CANNOT BE COMPLETED; PROVIDING PROCEDURES FOR CHANGES IN PURPOSE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 6-29-1 NMSA 1978 (being Laws 2005, Chapter 146, Section 1) is amended to read:
"6-29-1. SHORT TITLE.--[This act] Chapter 6, Article 29 NMSA 1978 may be cited as the "Tribal Infrastructure Act"."
Section 2. Section 6-29-2 NMSA 1978 (being Laws 2005, Chapter 146, Section 2) is amended to read:
"6-29-2. FINDINGS AND PURPOSE.--
A. The legislature finds that:
(1) tribes lack basic infrastructure resulting in poor social, health and economic conditions of tribal communities and that money appropriated for capital outlay projects is essential to remedy the deficit in infrastructure in tribal communities;
(2) adequate infrastructure such as water and wastewater systems, major water systems, electrical power lines, communications, roads, health and emergency response facilities and infrastructure needed for economic development are essential to improved health, safety and welfare of all New Mexicans, including residents of tribal communities;
(3) local tribal efforts and resources have been insufficient to develop and maintain a consistent and adequate level of infrastructure in tribal communities;
(4) addressing the urgent need of replacing, improving and developing tribal infrastructure through the use of an alternative financing mechanism is a long-term cost savings benefit to both the state and the tribes; and
(5) adequate infrastructure development on tribal land will allow tribal members to achieve the basic conditions necessary to improve the quality of their lives.
B. The purposes of the Tribal Infrastructure Act are to:
(1) ensure adequate financial resources for infrastructure development for tribal communities;
(2) provide for the planning and development of infrastructure in an efficient and cost-effective manner; [and]
(3) develop infrastructure in tribal communities to improve the quality of life and encourage economic development; and
(4) provide a mechanism for expeditious expenditure of capital outlay funds appropriated for projects in tribal communities and enhanced oversight of the process to ensure expenditure of capital outlay funds by tribes or their agencies or subdivisions."
Section 3. Section 6-29-3 NMSA 1978 (being Laws 2005, Chapter 146, Section 3) is amended to read:
"6-29-3. DEFINITIONS.--As used in the Tribal Infrastructure Act:
A. "board" means the tribal infrastructure board;
B. "capital outlay funding" means state money appropriated to complete a specified project in a capital outlay appropriation bill;
C. "capital outlay project" means the acquisition, improvement, alteration or reconstruction of assets of a long-term character that are intended to continue to be held or used, including land, buildings, machinery, furniture and equipment. "Capital outlay project" includes all proposed expenditures related to the entire undertaking;
[B.] D. "department" means the Indian affairs department;
[C.] E. "financial assistance" means providing grants or loans on terms and conditions approved by the board;
[D.] F. "governor" means the governor of New Mexico;
[E.] G. "project fund" means the tribal infrastructure project fund;
[F.] H. "qualified project" means a tribal infrastructure project selected by the board for financial assistance pursuant to the Tribal Infrastructure Act;
I. "recipient community" means a tribal community in which a state-funded capital outlay project is to be located;
J. "tribal community" means a community located in New Mexico within the exterior boundaries of a tribe;
[G.] K. "tribe" means a federally recognized Indian nation, tribe or pueblo located wholly or partially in New Mexico or any of its governmental entities or subdivisions; and
[H.] L. "trust fund" means the tribal infrastructure trust fund."
Section 4. Section 6-29-5 NMSA 1978 (being Laws 2005, Chapter 146, Section 5) is amended to read:
"6-29-5. BOARD--DUTIES.--The board shall:
A. adopt rules governing terms, conditions and priorities for providing financial assistance to tribes, including developing application and evaluation procedures and forms and qualifications for applicants and for projects;
B. provide financial assistance to tribes for qualified projects on terms and conditions established by the board;
C. authorize funding for qualified projects, including:
(1) planning, designing, constructing, improving, expanding or equipping water and wastewater facilities, major water systems, electrical power lines, communications infrastructure, roads, health infrastructure, emergency response facilities and infrastructure needed to encourage economic development;
(2) developing engineering feasibility reports for infrastructure projects;
(3) inspecting construction of qualified projects;
(4) providing special engineering services;
(5) completing environmental assessments or archaeological clearances and other surveys for infrastructure projects;
(6) acquiring land, easements or rights of way; and
(7) paying legal costs and fiscal agent fees associated with development of qualified projects; and
D. oversee the expenditure of appropriations for capital outlay projects in tribal communities for which state money is appropriated to:
(1) ensure that the process to expend the appropriations moves to completion in an expeditious manner;
(2) assess the obstacles to completion of the project and take action to remove the obstacles or otherwise address problems that arise to impede the progress of a capital outlay project;
(3) identify, within fifteen months following the appropriation of funding for a capital outlay project for a tribal community, capital outlay projects that cannot be completed and engage in consultation with the recipient community officials and the legislative sponsor to determine if there is an alternative project within the community to which the capital outlay funding can be redirected, or if the board fails to identify an alternative project within the recipient community, identify in consultation with the legislative sponsor a project in another tribal community within the district of the legislator appropriating the capital outlay funding to which the funds may be redirected; and
(4) take all action necessary to ensure reauthorization of any capital outlay project that requires a change of purpose or other change from the original appropriation parameters."
Section 5. Section 6-29-7 NMSA 1978 (being Laws 2005, Chapter 146, Section 7) is amended to read:
"6-29-7. TRIBAL INFRASTRUCTURE PROJECT FUND--
CREATED--PURPOSE--APPROPRIATIONS.--
A. The "tribal infrastructure project fund" is created in the state treasury and:
(1) the department of finance and administration shall administer the project fund;
(2) the project fund shall consist of: (a) distributions made to it from the trust fund;
(b) payments of principal and interest on loans for qualified projects;
(c) other money appropriated by the legislature or distributed or otherwise allocated to the project fund for the purpose of supporting qualified projects; [and]
(d) income from investment of the money in the project fund that shall be credited to the project fund; and
(e) money appropriated for specific capital outlay projects in tribal communities;
(3) balances in the project fund at the end of a fiscal year shall not revert to the trust fund or to the general fund; and
(4) the project fund may consist of subaccounts as determined to be necessary by the department of finance and administration.
B. The department of finance and administration may establish procedures and adopt rules as required to administer the project fund and to originate grants or loans for qualified projects approved by the board.
C. Beginning in fiscal year 2006 and in subsequent years, the lesser of one percent of the project fund or one hundred thousand dollars ($100,000) is appropriated from the project fund to the department of finance and administration for expenditure in the fiscal year in which it is appropriated, to administer the project fund. Any unexpended or unencumbered balance remaining at the end of any fiscal year shall revert to the project fund.
D. Beginning in fiscal year 2006 and in each subsequent year, the lesser of five percent of the project fund or five hundred thousand dollars ($500,000) is appropriated from the project fund to the Indian affairs department for expenditure in the fiscal year in which it is appropriated to administer the Tribal Infrastructure Act, to pay per diem and mileage as required by that act and for operation of the board. Any unexpended or unencumbered balance remaining at the end of any fiscal year shall revert to the project fund.
E. The balance in the project fund not otherwise appropriated in this section is appropriated to the department of finance and administration for expenditure in fiscal year 2006 and in subsequent fiscal years to carry out the provisions of the Tribal Infrastructure Act by providing grants or loans for qualified projects. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall revert to the project fund."
Section 6. Section 6-29-9 NMSA 1978 (being Laws 2008, Chapter 81, Section 3) is amended to read:
"6-29-9. TRIBAL CAPITAL OUTLAY REVERSIONS.--
A. The unexpended balances of a capital outlay appropriation made after January 1, 2007 from the general fund to the department or to the aging and long-term services department for projects located on lands of an Indian nation, tribe or pueblo shall revert to the project fund.
B. Notwithstanding any other law to the contrary, the unexpended balances of appropriations made before January 1, 2010 for capital outlay projects in tribal communities that are not encumbered by third-party contracts or other legally binding obligations are reauthorized and appropriated to the tribal infrastructure board to be administered pursuant to the Tribal Infrastructure Act.
[B.] C. For the purpose of this section, "unexpended balance" means the remainder of an appropriation after reserving for unpaid costs and expenses covered by binding written obligations to third parties."
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