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AN ACT

RELATING TO PUBLIC FINANCE; AUTHORIZING THE NEW MEXICO FINANCE

AUTHORITY TO ISSUE BONDS; ADDING THE STATE TREASURER TO THE

NEW MEXICO FINANCE AUTHORITY; MAKING APPROPRIATIONS TO CERTAIN

FUNDS.

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

"Section 1. Section 6-21-4 NMSA 1978 (being Laws 1992,

Chapter 61, Section 4) is amended to read:

"6-21-4. NEW MEXICO FINANCE AUTHORITY CREATED--

MEMBERSHIP--QUALIFICATIONS--QUORUM--MEETINGS--COMPENSATION

--BOND.--

A. There is created a public body politic and

corporate constituting a governmental instrumentality to be

known as the "New Mexico finance authority" for the

performance of essential public functions.

B. The authority shall be composed of thirteen

members. The state investment officer, the state treasurer,

the secretary of finance and administration, the secretary of

economic development, the secretary of energy, minerals and

natural resources, the secretary of environment, the executive

director of the New Mexico municipal league and the executive

director of the New Mexico association of counties or their

designees shall be ex-officio members of the authority with

voting privileges. The governor, with the advice and consent

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of the senate, shall appoint to the authority the chief

financial officer of a state higher educational institution

and four members who are residents of the state. The

appointed members shall serve at the pleasure of the governor.

C. The appointed members of the authority shall be

appointed to four-year terms. The initial members shall be

appointed to staggered terms of four years or less, so that

the term of at least one member expires on January 1 of each

year. Vacancies shall be filled by appointment by the

governor for the remainder of the unexpired term. Any member

of the authority shall be eligible for reappointment.

D. Each appointed member before entering upon his

duty shall take an oath of office to administer the duties of

his office faithfully and impartially. A record of the oath

shall be filed in the office of the secretary of state.

E. The governor shall designate an appointed

member of the authority to serve as chairman. The authority

shall elect annually one of its members to serve as vice

chairman. The authority shall appoint and prescribe the

duties of such other officers, who need not be members, as the

authority deems necessary or advisable, including an executive

director and a secretary, who may be the same person. The

authority may delegate to one or more of its members,

officers, employees or agents such powers and duties as it may

deem proper and consistent with the New Mexico Finance

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Authority Act.

F. The executive director of the authority shall

direct the affairs and business of the authority, subject to

the policies, control and direction of the authority. The

secretary of the authority shall keep a record of the

proceedings of the authority and shall be custodian of all

books, documents and papers filed with the authority, the

minute book or journal of the authority and its official seal.

The secretary shall make copies of all minutes and other

records and documents of the authority and give certificates

under the official seal of the authority to the effect that

the copies are true copies, and all persons dealing with the

authority may rely upon the certificates.

G. Meetings of the authority shall be held at the

call of the chairman or whenever three members shall so

request in writing. A majority of members then serving

constitutes a quorum for the transaction of any business. The

affirmative vote of at least a majority of a quorum present

shall be necessary for any action to be taken by the

authority. An ex-officio member may designate in writing

another person to attend meetings of the authority and to the

same extent and with the same effect act in his stead. No

vacancy in the membership of the authority shall impair the

right of a quorum to exercise all rights and perform all

duties of the authority.

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H. Each member of the authority shall give bond as

provided in the Surety Bond Act. All costs of the surety

bonds shall be borne by the authority.

I. The authority is not created or organized, and

its operations shall not be conducted, for the purpose of

making a profit. No part of the revenues or assets of the

authority shall benefit or be distributable to its members,

officers or other private persons. The members of the

authority shall receive no compensation for their services,

but shall be reimbursed for actual and necessary expenses at

the same rate and on the same basis as provided for public

officers in the Per Diem and Mileage Act.

J. The authority shall not be subject to the

supervision or control of any other board, bureau, department

or agency of the state except as specifically provided in the

New Mexico Finance Authority Act. No use of the terms "state

agency" or "instrumentality" in any other law of the state

shall be deemed to refer to the authority unless the authority

is specifically referred to in the law.

K. The authority is a governmental instrumentality

for purposes of the Tort Claims Act."

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.--

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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 net proceeds may be used for purposes

of the Wastewater Facility Construction Loan Act, the Rural

Infrastructure Act or the Solid Waste Act.

B. Public projects funded pursuant to the

Wastewater Facility Construction Loan Act, the Rural

Infrastructure Act or the Solid Waste 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 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

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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; or

(3) the solid waste facility grant fund for

purposes of the Solid Waste 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."

Section 3. AUTHORIZATION TO ISSUE BONDS--PUBLIC PROJECT

REVOLVING FUND--APPROPRIATIONS.--Pursuant to Section

6-21-6.1 NMSA 1978, the New Mexico finance authority is

authorized to issue bonds:

A. in an amount not to exceed three million seven

hundred fifty thousand dollars ($3,750,000), the net proceeds

of which are appropriated to the wastewater facility

construction loan fund;

B. in an amount not to exceed three million seven

hundred fifty thousand dollars ($3,750,000), the net proceeds

of which are appropriated to the rural infrastructure

revolving loan fund; and

C. in an amount not to exceed seventeen million

five hundred thousand dollars ($17,500,000), the net proceeds

of which are appropriated to the solid waste facility grant

fund.

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