FORTY-THIRD LEGISLATURE
                        SECOND SESSION, 1998
  
  
                                                 February 6, 1998
  
  
  Mr. Speaker:
  
       Your TAXATION AND REVENUE COMMITTEE, to whom has
  been referred
  
                        HOUSE BILL 228
  
  has had it under consideration and reports same with
  recommendation that it DO PASS, amended as follows:
  
       1.  On page 1, line 13, after "FUND" insert:
   
       "; AMENDING THE DRINKING WATER STATE REVOLVING LOAN FUND
  ACT BY THE ADDITION OF A NEW SECTION CREATING THE WATER AND
  WASTEWATER FACILITY GRANT FUND AND PROVIDING FOR LIMITED
  GRANTS FOR CERTAIN WATER AND WASTEWATER PROJECTS; AUTHORIZING
  THE NEW MEXICO FINANCE AUTHORITY TO ISSUE REVENUE BONDS FOR
  THE WATER AND WASTEWATER FACILITY GRANT FUND".
  
       2.  On page 4, between lines 6 and 7, insert the
  following new sections:
  
       "Section 3.  Section 6-21A-1 NMSA 1978 (being Laws 1997,
  Chapter 144, Section 1) is amended to read:
  
       "6-21A-1.  SHORT TITLE.--[Sections 1 through 9 of this
  act] Chapter 6, Article 21A NMSA 1978 may be cited as the
  "Drinking Water State Revolving Loan Fund Act"."
  
       Section 4.  A new section of the Drinking Water State
  Revolving Loan Fund Act, Section 6-21A-6.1 NMSA 1978, is
  enacted  to read:
  
       "6-21A-6.1. [NEW MATERIAL] WATER AND WASTEWATER FACILITY
  GRANT FUND--CREATION--ADMINISTRATION--PURPOSES.--
  
            A.  The "water and wastewater facility grant fund"
  is created in the authority.  The water and wastewater
  facility grant fund shall be administered by the authority,
  and the authority is authorized to establish procedures
  required to administer the fund.
  
  
  
            B.  The following shall be deposited directly into
  the water and wastewater facility grant fund:
  
                 (1)  the net proceeds from the sale of bonds
  issued pursuant to the provisions of Section 6-21-6.1 NMSA
  1978 for the purposes of the Drinking Water State Revolving
  Loan Fund Act for the water and wastewater facility grant fund
  and payable from the public project revolving fund;
  
                 (2)  money appropriated by the legislature to
  implement the provisions of this section; and
  
                 (3)  any other public or private money
  dedicated to the water and wastewater facility grant fund.
  
            C.  Money in the water and wastewater facility grant
  fund is appropriated for expenditure by the authority for the
  purpose of providing grants to local authorities for the
  construction or rehabilitation of drinking water facilities or
  wastewater facilities.
  
            D.  The authority shall establish procedures to
  provide grants from the water and wastewater facility grant
  fund to local authorities for the construction or
  rehabilitation of drinking water facilities or wastewater
  facilities.  The procedures shall provide that:
  
                 (1)  grants from the water and wastewater
  facility grant fund shall not exceed fifty thousand dollars
  ($50,000) per project;
  
                 (2)  grants from the water and wastewater
  facility grant fund may be made only to local authorities that
  are unable to repay a loan from the public project revolving
  fund made pursuant to the provisions of the New Mexico Finance
  Authority Act or from the drinking water state revolving loan
  fund made pursuant to the provisions of the Drinking Water
  State Revolving Loan Fund Act; and
  
                 (3)  each grant from the water and wastewater
  facility grant fund may be made only as all or a part of a
  complete project financing.
       
  
  
  
            E.  Grants from the water and wastewater facility
  grant fund may be made only with the concurrence of the New
  Mexico finance authority oversight committee and the
  legislative finance committee.
  
            F.  As used in this section, "wastewater facility"
  has the same meaning as assigned to that defined term in the
  Wastewater Facility Construction Loan Act.
  
            G.  The authority is authorized to enter into
  memoranda of understanding, contracts and other agreements to
  carry out the provisions of this section, including but not
  limited to memoranda of understanding, contracts and
  agreements with state and federal agencies, local authorities
  and other parties."
  
       Section 5.  NEW MEXICO FINANCE AUTHORITY--REVENUE BONDS--
  AUTHORIZATION OF FINANCING FOR THE WATER AND WASTEWATER
  FACILITY GRANT FUND--APPROPRIATION OF PROCEEDS.--
  
            A.  Pursuant to the provisions of Section 6-21-6.1
  NMSA 1978, the legislature authorizes the New Mexico finance
  authority to issue and sell revenue bonds in an amount not to
  exceed two hundred fifty thousand dollars ($250,000), to be
  repaid from the public project revolving fund, for the purpose
  of providing grants of up to fifty thousand dollars ($50,000)
  from the water and wastewater facility grant fund for the
  construction or rehabilitation of drinking water facilities or
  wastewater facilities.
  
            B.  The net proceeds from the sale of the bonds are
  appropriated to the water and wastewater facility grant fund
  for the purposes described in Section 6-21A-6.1 NMSA 1978.".,
  
  and thence referred to the APPROPRIATIONS AND FINANCE
  COMMITTEE.
  
                                Respectfully submitted,
  
  
  
                                                                 
                                                              Jerry W. Sandel, Chairman
  
  
                                     Adopted                            Not Adopted                         
            (Chief Clerk)                      (Chief Clerk)
  
                        Date                
  
  The roll call vote was  11  For  0  Against
  Yes:      11
  Excused:  Crook, Ryan
            Absent:   None
  
  
  
  .122353.1
  G:\BILLTEXT\AMEND_98\H0228TR1