HOUSE BILL 314

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Mark B. Murphy and Angelita Mejia and Jonathan A. Henry

and Jimmy G. Mason and Andrea Reeb

 

 

 

 

AN ACT

RELATING TO PUBLIC FINANCE; REQUIRING THE LOCAL GOVERNMENT DIVISION OF THE DEPARTMENT OF FINANCE AND ADMINISTRATION TO PROVIDE ZERO-INTEREST LOANS TO POLITICAL SUBDIVISIONS OF THE STATE FOR PROJECTS TO REPLACE OR REPAIR PUBLIC INFRASTRUCTURE DAMAGED BY FLOODING OR DEBRIS FLOWS OR PROJECTS TO REMOVE DEBRIS ACCUMULATIONS ATTRIBUTABLE TO THE STORM EVENT ON OCTOBER 19, 2024; REQUIRING APPROVAL FOR FEDERAL ASSISTANCE FUNDING; REQUIRING REIMBURSEMENT CONTRACTS; MAKING AN APPROPRIATION.

 

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

     SECTION 1. TEMPORARY PROVISION--LOANS TO POLITICAL

SUBDIVISIONS--REPLACEMENT OR REPAIR OF PUBLIC INFRASTRUCTURE

DAMAGED BY FLOODING OR DEBRIS FLOWS--REQUIREMENT FOR

PUBLIC ASSISTANCE FUNDING.--

          A. The local government division of the department of finance and administration, in consultation with the homeland security and emergency management department, shall provide zero-interest reimbursable loans to political subdivisions of the state that have been approved for federal public assistance funding for projects to replace or repair public infrastructure damaged by flooding or debris flows or to remove debris accumulations attributable to the storm event in Chaves county on October 19, 2024. The local government division shall require a contract for reimbursement from a political subdivision of the state receiving a loan pursuant to this section. The contract shall specify:

                (1) that the political subdivision shall pay the loan using first dollars received from the approved federal public assistance funding that serves as the basis for the loan;

                (2) that the political subdivision shall repay the loan within thirty days of having received the approved federal public assistance funding;

                (3) such notice or reporting requirements that the local government division deems necessary to be sufficiently informed regarding compliance with Paragraphs (1) and (2) of this subsection; and

                (4) that upon failure to meet a requirement of this subsection, the loan shall be repaid at current market interest rates.

          B. All loan repayments made pursuant to this section shall be deposited into the general fund.

          C. The secretary of finance and administration shall take any and all legal actions necessary to enforce the terms of contracts entered into pursuant to this section.

     SECTION 2. APPROPRIATION.--One hundred fifty million dollars ($150,000,000) is appropriated from the general fund to the local government division of the department of finance and administration for expenditure in fiscal years 2027 and 2028 to provide loans in accordance with Section 1 of this act. Any unexpended balance remaining at the end of fiscal year 2028 shall revert to the general fund.

     SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2026.

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