SENATE BILL 199

52nd legislature - STATE OF NEW MEXICO - first session, 2015

INTRODUCED BY

Gerald Ortiz y Pino

FOR THE LAND GRANT COMMITTEE

AN ACT

RELATING TO LAND GRANTS; ENACTING THE LAND GRANT-MERCED PROJECT FINANCE ACT; CREATING THE LAND GRANT-MERCED PROJECT FUND; MAKING AN APPROPRIATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. [NEW MATERIAL] SHORT TITLE.--This act may be cited as the "Land Grant-Merced Project Finance Act".

     SECTION 2. [NEW MATERIAL] FINDINGS AND PURPOSE.--

          A. The legislature finds that:

                (1) land grants-mercedes are communities that represent an ongoing aspect of New Mexico's cultural heritage;

                (2) in general, land grants-mercedes have limited sources of internal revenue but often are in need of capital projects for economic growth and viability;

                (3) as with other communities, land grants-mercedes are regular recipients of legislative appropriations for capital projects from severance tax bond revenues;

                (4) the requirements of the funding process for a capital project, including the required initial payments to vendors by appropriation recipients, often exceed the resources of the recipients, causing project delays that extend beyond the time requirements for the use of severance tax bond revenues and resulting in subsequent cancellation of the funded project; and

                (5) public confidence in the process for procuring public infrastructure is based on a reasonable expectation that capital projects receiving appropriations will proceed to construction or procurement.

          B. The purpose of the Land Grant-Merced Project Finance Act is to provide efficiency in the capital project procurement process.

     SECTION 3. [NEW MATERIAL] DEFINITIONS.--As used in the Land Grant-Merced Project Finance Act:

          A. "authority" means the New Mexico finance authority;

          B. "land grant-merced" means a community land grant qualifying as a political subdivision of the state pursuant to the requirements of Sections 49-1-1 through 49-1-18 NMSA 1978;

          C. "qualifying project" means a capital project for which an appropriation has been authorized by the legislature through enacted legislation; and

          D. "vendor" means an entity that has been contracted to provide a product or construction element for a qualifying project.

     SECTION 4. [NEW MATERIAL] AUTHORITY DUTIES.--The authority shall:

          A. develop application procedures and forms for land grants-mercedes to apply for vendor payments for qualifying projects;

          B. make loans to land grants-mercedes for qualifying projects subject to the availability of funds within the land grant-merced project fund; and

          C. provide notice within twenty-four hours to the local government division of the department of finance and administration when a loan has been made to a land grant-merced for a qualifying project.

     SECTION 5. [NEW MATERIAL] CONDITIONS FOR LOANS.--Loans shall only be made to land grants-mercedes for vendor payments when:

          A. the board of trustees of a land grant-merced has certified that the product or construction element for a qualifying project has been delivered;

          B. the board of trustees of a land grant-merced has certified that a voucher for reimbursement for the cost of the product or construction element delivered by the vendor has been submitted to the local government division of the department of finance and administration; and

          C. sufficient funds are available in the land grant-merced project fund.

     SECTION 6. [NEW MATERIAL] REIMBURSEMENTS TO THE LAND GRANT-MERCED PROJECT FUND.--The department of finance and administration shall make reimbursement payments directly to the land grant-merced project fund for vouchers from land grants-mercedes for which it has received a notice of a loan payment from the fund by the authority.

     SECTION 7. [NEW MATERIAL] LAND GRANT-MERCED PROJECT FUND--CREATED.--The "land-grant merced project fund" is created in the state treasury. The fund shall consist of money appropriated, donated or otherwise accrued to the fund. The fund shall be administered by the authority. Income from investment of money in the land grant-merced project fund shall be credited to the fund. Balances in the fund at the end of any fiscal year shall not revert to the general fund. The land grant-merced project fund 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 and to recover from the fund the costs of administering the fund. Money in the land grant-merced project fund may be used to make loans to land grants-mercedes for any qualifying project pursuant to the Land Grant-Merced Project Finance Act.

     SECTION 8. [NEW MATERIAL] REPORT TO LEGISLATURE.--The director of the authority shall report to the legislature no later than October 1 of each calender year the total number and dollar amounts of loan requests from land grants-mercedes for qualifying projects, the purposes of those loan requests, the total number and dollar amounts of the loans that were made and any recommendations for legislative action regarding the land grant-merced project fund.

     SECTION 9. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2015.

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