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.

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 Suite 101 of the State Capitol Building North.

(Parenthesis ( ) Indicate Expenditure Decreases)

(Parenthesis ( ) Indicate Revenue Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

New Mexico Finance Authority (NMFA)

SUMMARY

Synopsis of Bill

Senate Bill 2 authorizes the New Mexico Finance Authority (NMFA) to provide loans to five qualified entities for public projects from the Public Project Revolving Fund (PPRF).

Significant Issues

Senate Bill 2, Section 1, provides legislative authority to the NMFA to make loans to five local entities for the following projects:

1. to Elephant Butte for a water project;

2. to Gallup for an equipment project;

3. to Hagerman for a building and related infrastructure;

4. to the South Central Solid Waste Authority for refinancing a project; and

5. to Tularosa for a building project.

Loans can only be made to those qualifying entities which can meet the financial criteria established by the NMFA and can identify sufficient sources for repayment of the loan.

Section 2 of the bill provides that a project be considered void if by the end of fiscal year 2003 the grantee does not exercise its intent to pursue a loan from the Public Project Revolving Fund.

Section 3 of the bill contains an emergency clause.

FISCAL IMPLICATIONS

The authorization in Senate Bill 2 does not impact the general fund. However, loans for the project will decrease the loaning capacity of the Public Project Revolving Fund.

LMK/gm