0001| AN ACT | 0002| RELATING TO PUBLIC FINANCE; AUTHORIZING THE NEW MEXICO FINANCE AUTHORITY | 0003| AND CERTAIN GOVERNMENTAL UNITS TO UNDERTAKE SPECIFIC ACTIVITIES RELATED | 0004| TO PROJECT FINANCING; PROVIDING POWERS AND DUTIES; AMENDING CERTAIN | 0005| SECTIONS OF THE NMSA 1978; DECLARING AN EMERGENCY. | 0006| | 0007| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0008| Section 1. Section 6-21-6 NMSA 1978 (being Laws 1992, Chapter 61, | 0009| Section 6, as amended) is amended to read: | 0010| "6-21-6. PUBLIC PROJECT REVOLVING FUND--PURPOSE-- | 0011| ADMINISTRATION.-- | 0012| A. The "public project revolving fund" is created within the | 0013| authority. The fund shall be administered by the authority as a | 0014| separate account, but may consist of such subaccounts as the authority | 0015| deems necessary to carry out the purposes of the fund. The authority is | 0016| authorized to establish procedures and adopt regulations as required to | 0017| administer the fund in accordance with the New Mexico Finance Authority | 0018| Act. | 0019| B. Except as otherwise provided in the New Mexico Finance | 0020| Authority Act, money from payments of principal of and interest on loans | 0021| and payments of principal of and interest on securities held by the | 0022| authority for public projects authorized specifically by law shall be | 0023| deposited in the public project revolving fund. The fund shall also | 0024| consist of any other money appropriated, distributed or otherwise | 0025| allocated to the fund for the purpose of financing public projects | 0001| authorized specifically by law. | 0002| C. Money appropriated to pay administrative costs, money | 0003| available for administrative costs from other sources and money from | 0004| payments of interest on loans or securities held by the authority, | 0005| including payments of interest on loans and securities held by the | 0006| authority for public projects authorized specifically by law, that | 0007| represents payments for administrative costs shall not be deposited in | 0008| the public project revolving fund and shall be deposited in a separate | 0009| account of the authority and may be used by the authority to meet | 0010| administrative costs of the authority. | 0011| D. Except as otherwise provided in the New Mexico Finance | 0012| Authority Act, money in the public project revolving fund is | 0013| appropriated to the authority to make loans or grants and to purchase or | 0014| sell securities to assist qualified entities in financing public | 0015| projects in accordance with the New Mexico Finance Authority Act and | 0016| pursuant to specific authorization by law for each project. | 0017| E. Money in the public project revolving fund not needed for | 0018| immediate disbursement, including any funds held in reserve, may be | 0019| deposited with the state treasurer for short-term investment pursuant to | 0020| Section 6-10-10.1 NMSA 1978 or may be invested in direct and general | 0021| obligations of or obligations fully and unconditionally guaranteed by | 0022| the United States, obligations issued by agencies of the United States, | 0023| obligations of this state or any political subdivision of the state, | 0024| interest-bearing time deposits, commercial paper issued by corporations | 0025| organized and operating in the United States and rated "prime" quality | 0001| by a national rating service, other investments permitted by Section 6-10-10 NMSA 1978 or as otherwise provided by the trust indenture or bond | 0002| resolution, if funds are pledged for or secure payment of bonds issued | 0003| by the authority. | 0004| F. The authority shall establish fiscal controls and | 0005| accounting procedures that are sufficient to assure proper accounting | 0006| for public project revolving fund payments, disbursements and balances. | 0007| G. Money on deposit in the public project revolving fund may | 0008| be used to make interim loans for a term not exceeding one year to | 0009| qualified entities for the purpose of providing interim financing for | 0010| any project approved or funded by the legislature. | 0011| H. Money on deposit in the public project revolving fund may | 0012| be used to acquire securities or to make loans to qualified entities in | 0013| connection with the equipment program. As used in this subsection, | 0014| "equipment program" means the program of the authority designed to | 0015| finance the acquisition of equipment for fire protection; law | 0016| enforcement and protection; computer and data processing; street and | 0017| road construction and maintenance; emergency medical services; solid | 0018| waste collection, transfer and disposal; radio and telecommunications; | 0019| and utility system purposes; and to finance the acquisition, | 0020| construction and improvement of fire stations. The amount of securities | 0021| acquired from or the loan made to a qualified entity at any one time | 0022| pursuant to this subsection shall not exceed five hundred thousand | 0023| dollars ($500,000). The authority shall issue bonds within one year of | 0024| the date the securities are acquired or within one year of the date on | 0025| which the loans are made and use the bond proceeds to reimburse the | 0001| public project revolving fund for the amounts temporarily used to | 0002| acquire securities or to make loans. The temporarily funded projects | 0003| under the equipment program are not required to obtain specific | 0004| authorization by law required of projects permanently funded from the | 0005| public project revolving fund, as provided in this section and Section | 0006| 6-21-8 NMSA 1978. | 0007| I. Money on deposit in the public project revolving fund | 0008| may be designated as reserve funds for any bonds issued by the | 0009| authority, including bonds payable from sources other than the public | 0010| project revolving fund, and the authority may covenant in any bond | 0011| resolution or trust indenture to maintain and replenish the reserve | 0012| funds from money deposited in the public project revolving fund after | 0013| issuance of bonds by the authority." | 0014| Section 2. Section 6-21-21 NMSA 1978 (being Laws 1992, Chapter | 0015| 61, Section 21, as amended) is amended to read: | 0016| "6-21-21. MONEY OF THE AUTHORITY--EXPENSES--AUDIT-- | 0017| ANNUAL REPORT.-- | 0018| A. All money of the authority, except as otherwise | 0019| authorized or provided in the New Mexico Finance Authority Act or in a | 0020| bond resolution, trust indenture or other instrument under which bonds | 0021| are issued, shall be deposited as soon as practical in a separate | 0022| account or accounts in banks or trust companies organized under the laws | 0023| of this state. All deposits of money shall be secured, if required by | 0024| the authority, in such a manner as the authority determines to be | 0025| prudent. Banks or trust companies are authorized to give security for | 0001| deposits of the authority. | 0002| B. Subject to the provisions of any contract with | 0003| bondholders, the authority shall prescribe a system of accounts. | 0004| C. Money held by the authority that is not needed for | 0005| immediate disbursement, including any funds held in reserve, may be | 0006| deposited with the state treasurer for short-term investment pursuant to | 0007| Section 6-10-10.1 NMSA 1978 or may be invested in direct and general | 0008| obligations of or obligations fully and unconditionally guaranteed by | 0009| the United States, obligations issued by agencies of the United States, | 0010| obligations of this state or any political subdivision of the state, | 0011| interest-bearing time deposits, commercial paper issued by corporations | 0012| organized and operating within the United States and rated "prime" | 0013| quality by a national rating service, other investments permitted by | 0014| Section 6-10-10 NMSA 1978 or as otherwise provided by the trust | 0015| indenture or bond resolution, if the funds are pledged for or secure | 0016| payment of bonds issued by the authority. | 0017| D. The authority shall have an audit of its books and | 0018| accounts made at least once each year by the state auditor or by a | 0019| certified public accounting firm whose proposal has been reviewed and | 0020| approved by the state auditor. The cost of the audit shall be an | 0021| expense of the authority. Copies of the audit shall be submitted to the | 0022| governor and the New Mexico finance authority oversight committee and | 0023| made available to the public. | 0024| E. The authority shall submit a report of its activities to | 0025| the governor and to the legislature not later than December 1 of each | 0001| year. Each report shall set forth a complete operating and financial | 0002| statement covering its operations for that year." | 0003| Section 3. Section 7-1-6.15 NMSA 1978 (being Laws 1983, Chapter | 0004| 211, Section 20, as amended) is amended to read: | 0005| "7-1-6.15. ADJUSTMENTS OF DISTRIBUTIONS OR TRANSFERS TO | 0006| MUNICIPALITIES OR COUNTIES.-- | 0007| A. The provisions of this section apply to: | 0008| (1) any distribution to a municipality of gross | 0009| receipts taxes pursuant to Section 7-1-6.4 NMSA 1978 or of interstate | 0010| telecommunications gross receipts tax pursuant to Section 7-1-6.36 NMSA | 0011| 1978; | 0012| (2) any transfer to a municipality with respect to any | 0013| local option gross receipts tax imposed by that municipality; | 0014| (3) any transfer to a county with respect to any local | 0015| option gross receipts tax imposed by that county; | 0016| (4) any distribution to a county pursuant to Section | 0017| 7-1-6.16 NMSA 1978; | 0018| (5) any distribution to a municipality or a county of | 0019| gasoline taxes pursuant to Section 7-1-6.9 NMSA 1978; | 0020| (6) any transfer to a county with respect to any tax | 0021| imposed in accordance with the Local Liquor Excise Tax Act; | 0022| (7) any distribution to a municipality or a county of | 0023| cigarette taxes pursuant to Sections 7-1-6.11, 7-12-15 and 7-12-16 NMSA | 0024| 1978; | 0025| (8) any distribution to a county from the county | 0001| government road fund pursuant to Section 7-1-6.26 NMSA 1978; and | 0002| (9) any distribution to a municipality of gasoline | 0003| taxes pursuant to Section 7-1-6.27 NMSA 1978. | 0004| B. If the secretary determines that any prior distribution | 0005| or transfer to a municipality or county was erroneous, the secretary | 0006| shall increase or decrease the next distribution or transfer amount for | 0007| that municipality or county after the determination, except as provided | 0008| in Subsection C, D or E of this section, by the amount necessary to | 0009| correct the error. Subject to the provisions of Subsection E of this | 0010| section, the secretary shall notify the municipality or county of the | 0011| amount of each increase or decrease. | 0012| C. No decrease shall be made to current or future | 0013| distributions or transfers to a municipality or a county for any excess | 0014| distribution or transfer made to that municipality or county more than | 0015| one year prior to the calendar year in which the determination of the | 0016| secretary was made. | 0017| D. The secretary, in lieu of recovery from the next | 0018| distribution or transfer amount, may recover an excess distribution or | 0019| transfer of one hundred dollars ($100) or more to the municipality or | 0020| county in installments from current and future distributions or | 0021| transfers to that municipality or county pursuant to an agreement with | 0022| the officials of the municipality or county whenever the amount of the | 0023| distribution or transfer decrease for the municipality or county exceeds | 0024| ten percent of the average distribution or transfer amount for that | 0025| municipality or county for the twelve months preceding the month in | 0001| which the secretary's determination is made; provided that for the | 0002| purposes of this subsection, the "average distribution or transfer | 0003| amount" shall be the arithmetic mean of the distribution or transfer | 0004| amounts within the twelve months immediately preceding the month in | 0005| which the determination is made. | 0006| E. Except for the provisions of this section, if the amount | 0007| by which a distribution or transfer would be adjusted pursuant to | 0008| Subsection B of this section is one hundred dollars ($100) or less, no | 0009| adjustment or notice need be made. | 0010| F. The secretary is authorized to decrease a distribution to | 0011| a municipality or county upon being directed to do so by the secretary | 0012| of finance and administration pursuant to the State Aid Intercept Act or | 0013| to redirect a distribution to the New Mexico finance authority pursuant | 0014| to an ordinance or a resolution passed by the county or municipality and | 0015| a written agreement of the municipality or county and the New Mexico | 0016| finance authority. Upon direction to decrease a distribution or notice | 0017| to redirect a distribution to a municipality or county, the secretary | 0018| shall decrease or redirect the next designated distribution, and | 0019| succeeding distributions as necessary, by the amount of the state | 0020| distributions intercept authorized by the secretary of finance and | 0021| administration pursuant to the State Aid Intercept Act or by the amount | 0022| of the state distribution intercept authorized pursuant to an ordinance | 0023| or a resolution passed by the county or municipality and a written | 0024| agreement with the New Mexico finance authority. The secretary shall | 0025| transfer the state distributions intercept amount to the municipal or | 0001| county treasurer or other person designated by the secretary of finance | 0002| and administration or to the New Mexico finance authority pursuant to | 0003| written agreement to pay the debt service to avoid default on qualified | 0004| local revenue bonds or meet other local revenue bond, loan or other debt | 0005| obligations of the municipality or county to the New Mexico finance | 0006| authority." | 0007| Section 4. Section 29-13-6 NMSA 1978 (being Laws 1983, Chapter | 0008| 289, Section 6, as amended) is amended to read: | 0009| "29-13-6. DISTRIBUTION OF LAW ENFORCEMENT PROTECTION FUND.-- | 0010| A. Annually on or before July 31, the state treasurer shall | 0011| distribute from the fund the amounts certified by the division to be | 0012| distributed to municipalities and counties. Payments shall be made to | 0013| the treasurer of the appropriate governmental entity. | 0014| B. The state treasurer is authorized to redirect a | 0015| distribution to the New Mexico finance authority in an amount certified | 0016| by the division, pursuant to an ordinance or a resolution passed by the | 0017| municipality or county and a written agreement of the municipality or | 0018| county and the New Mexico finance authority. | 0019| C. Annually on or before July 31, the state treasurer shall | 0020| distribute from the excess money remaining in the fund after | 0021| distributions pursuant to Subsection A of this section are made, money | 0022| certified by the division to be distributed to tribes and pueblos. | 0023| Payment shall be made to the chief financial officer of the tribe or | 0024| pueblo. If necessary, the fund may be decreased below the level of one | 0025| hundred thousand dollars ($100,000) to enable payment to the tribes and | 0001| pueblos. If insufficient money remains in the fund to fully compensate | 0002| the tribes and pueblos, a report shall be made to the New Mexico office | 0003| of Indian affairs and to an appropriate interim committee of the | 0004| legislature that reviews issues having impact on tribes and pueblos in | 0005| New Mexico by September 1 of the year of the shortfall." | 0006| Section 5. Section 59A-53-7 NMSA 1978 (being Laws 1984, Chapter | 0007| 127, Section 978, as amended) is amended to read: | 0008| "59A-53-7. DISTRIBUTION OF FIRE PROTECTION FUND.-- | 0009| A. Annually on or before the last day of July, the state | 0010| treasurer shall distribute from the money in the fire protection fund, | 0011| to each incorporated municipality and to each county fire district, the | 0012| amount as the marshal or the state fire board, as the case may be, shall | 0013| have certified to him. Payment shall be made to the treasurer of any | 0014| incorporated municipality and to the county treasurer of the county in | 0015| which any county fire district is located for credit to the county fire | 0016| district. | 0017| B. The state treasurer is authorized to redirect a | 0018| distribution to the New Mexico finance authority in the amount as the | 0019| marshal or the state fire board, as the case may be, shall have | 0020| certified to him pursuant to an ordinance or a resolution passed by the | 0021| municipality or county and a written agreement of the municipality or | 0022| county in which any county fire district is located and the New Mexico | 0023| finance authority." | 0024| Section 6. EMERGENCY.--It is necessary for the public peace, | 0025| health and safety that this act take effect immediately. | 0001| | 0002| | 0003| HB | 0004| 295 | 0005| Page  |