0001|                            HOUSE BILL 228
    |
0002|     43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
    |
0003|                            INTRODUCED BY
    |
0004|                              RON GENTRY
    |
0005|     
    |
0006|                                   
    |
0007|     
    |
0008|       FOR THE NEW MEXICO FINANCE AUTHORITY OVERSIGHT COMMITTEE
    |
0009|     
    |
0010|                                AN ACT
    |
0011|     RELATING TO FINANCE; AMENDING THE NEW MEXICO FINANCE AUTHORITY
    |
0012|     ACT TO ALLOW FINANCING OF EMERGENCY PUBLIC PROJECTS FROM THE
    |
0013|     PUBLIC PROJECT REVOLVING FUND.
    |
0014|     
    |
0015|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
    |
0016|          Section 1.  Section 6-21-3 NMSA 1978 (being Laws 1992,
    |
0017|     Chapter 61, Section 3, as amended) is amended to read:
    |
0018|          "6-21-3.  DEFINITIONS.--As used in the New Mexico Finance
    |
0019|     Authority Act:
    |
0020|               A.  "authority" means the New Mexico finance
    |
0021|     authority;
    |
0022|               B.  "bond" means any bonds, notes, certificates of
    |
0023|     participation or other evidence of indebtedness;
    |
0024|               C.  "bondholder" or "holder" means a person who is
    |
0025|     the owner of a bond, whether registered or not;
    |
<center>- 1 -</center>

0001|               <u>D.  "emergency public project" means a public
</u>    |
<u></u>0002| <u>    project:
</u>    |
<u></u>0003| <u>                   (1)  made necessary by an unforeseen
</u>    |
<u></u>0004| <u>    occurrence or circumstance threatening public health, safety
</u>    |
<u></u>0005| <u>    or welfare; and
</u>    |
<u></u>0006| <u>                   (2)  requiring the immediate expenditure of
</u>    |
<u></u>0007| <u>    money that is not within the available financial resources of
</u>    |
<u></u>0008| <u>    the qualified entity as determined by the authority;</u>
    |
0009|               <s>[D.]</s> <u>E.</u>  "public project" means the
    |
0010|     acquisition, construction, improvement, alteration or
    |
0011|     reconstruction of assets of a long-term capital nature by a
    |
0012|     qualified entity, including land; buildings; water rights;
    |
0013|     water, sewerage and waste disposal systems; streets; airports;
    |
0014|     municipal utilities; parking facilities; and machinery,
    |
0015|     furniture and equipment.  "Public project" includes all
    |
0016|     proposed expenditures related to the entire undertaking;
    |
0017|               <s>[E.]</s> <u>F.</u>  "qualified entity" means the state or
    |
0018|     <s>[any]</s> <u>an</u> agency or institution of the state or <s>[any]</s> <u>a</u>
    |
0019|     county, municipality, school district, land grant corporation,
    |
0020|     intercommunity water or natural gas supply <s>[associations]</s>
    |
0021|     <u>association</u> or <s>[corporations]</s> <u>corporation</u>, special
    |
0022|     district or community water association or an Indian nation,
    |
0023|     tribe or pueblo located wholly or partially in New Mexico,
    |
0024|     including a political subdivision or a wholly owned enterprise
    |
0025|     of an Indian nation, tribe or pueblo; and
    |
<center>- 2 -</center>

0001|               <s>[F.]</s> <u>G.</u>  "security" or "securities", unless the
    |
0002|     context indicates otherwise, means bonds, notes or other
    |
0003|     evidence of indebtedness issued by a qualified entity or
    |
0004|     leases or certificates or other evidence of participation in
    |
0005|     the lessor's interest in and rights under a lease with a
    |
0006|     qualified entity and that are payable from taxes, revenues,
    |
0007|     rates, charges, assessments or user fees or from the proceeds
    |
0008|     of funding or refunding bonds, notes or other <s>[evidences]</s>
    |
0009|     <u>evidence</u> of indebtedness of a qualified entity or from
    |
0010|     certificates or evidence of participation in a lease with a
    |
0011|     qualified entity."
    |
0012|          Section 2.  A new section of the New Mexico Finance
    |
0013|     Authority Act is enacted to read:
    |
0014|          "[<u>NEW MATERIAL</u>] PUBLIC PROJECT REVOLVING FUND--
    |
0015|     EMERGENCY PUBLIC PROJECTS.--Money on deposit in the public
    |
0016|     project revolving fund may be used to acquire securities or to
    |
0017|     make loans to qualified entities for emergency public
    |
0018|     projects.  The amount of securities acquired from or the loan
    |
0019|     made to a qualified entity at any one time for any one
    |
0020|     emergency public project shall not exceed five hundred
    |
0021|     thousand dollars ($500,000).  Emergency public projects are
    |
0022|     not required to obtain the specific authorization by law
    |
0023|     required in Sections 6-21-6 and 6-21-8 NMSA 1978; however,
    |
0024|     each emergency public project must be specifically designated
    |
0025|     as such by the authority with the concurrence of the New
    |
<center>- 3 -</center>

0001|     Mexico finance authority oversight committee and the
    |
0002|     legislative finance committee prior to the acquisition of
    |
0003|     securities or the making of a loan to a qualified entity for
    |
0004|     the emergency public project.  The aggregate amount of loans
    |
0005|     for emergency public projects that may be made by the
    |
0006|     authority in any one fiscal year may not exceed three million
    |
0007|     dollars ($3,000,000)."
    |
0008|                              
    |