NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Room 416 of the State Capitol Building.

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

New Mexico Finance Authority

LFC Files

SUMMARY

Synopsis of SFC Amendment

Senate Finance Committee amendments to House Bill 17/aHTRC eliminates the requirement that NMFA must have concurrence of the New Mexico Finance Authority Legislative Oversight Committee to make a limited number of loans to qualified entities for "emergency public projects." The amendment also sets a sunset of June 30, 2002 for the provisions of the bill.

Synopsis of HTRC Amendment

House Taxation and Revenue amendments, items one and two, to House Bill 17, add "two-year post-secondary institutions" to the definition of "qualified entities." The amendment allows the NMFA to make a limited number of loans from the Public Project Revolving Fund to qualified entities for "emergency public projects." The third amendment allows the NMFA to make the loans "with the concurrence of the New Mexico Finance Authority Legislative Oversight Committee."

Synopsis of Bill

House Bill 17 amends the New Mexico Finance Authority Act to allow the New Mexico Finance Authority to make a limited number of loans from the Public Project Revolving Fund to qualified local government entities for "emergency public projects." The dollar value of all such loans is limited to $3,000,000 per fiscal year, and emergency project loans may not exceed $500,000.

Significant Issues

The authority allows the NMFA to make loans for emergency projects in a more timely manner to those communities encountering needs for emergency public projects during the interim between sessions.

The definition of "emergency public project" is similar to that used by the State Board of Finance for emergency funding. To be considered an emergency, the project must be determined to meet three criteria: 1) an unforeseen circumstance occurred threatening public health, safety or welfare; 2) an immediate expenditure is required; and 3) funds for the project are not within the available financial resources of the applicant.

The bill also makes technical corrections to change the words "associations" and "corporations" from plural to singular.

FISCAL IMPLICATIONS

The NMFA infrastructure loans are financed from the Public Project Revolving Fund that receives an annual distribution of 75 percent of the governmental gross receipts tax of approximately $12 million annually. There would be no impact to the general fund.

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