SENATE BILL 1152

48th legislature - STATE OF NEW MEXICO - first session, 2007

INTRODUCED BY

Michael S. Sanchez

AN ACT

RELATING TO ECONOMIC DEVELOPMENT; APPROVING AN ECONOMIC DEVELOPMENT PROJECT AND AUTHORIZING LOAN GUARANTEES PURSUANT TO THE CONSTITUTION OF NEW MEXICO AND THE STATEWIDE ECONOMIC DEVELOPMENT FINANCE ACT; MAKING AN APPROPRIATION.

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

     Section 1. PROJECT APPROVAL--LOAN GUARANTEE AUTHORIZATION.--

          A. Pursuant to the provisions of Subsection D of Article 9, Section 14 of the constitution of New Mexico and the Statewide Economic Development Finance Act, the state grants its approval and authorizes loan guarantees for a project to be developed by Ausra, inc. for a solar thermal electric generating plant of a minimum of fifty megawatts to be located in New Mexico.

          B. Pursuant to Section 6-25-18.1 NMSA 1978, the New Mexico finance authority may issue economic development revolving fund bonds in an amount up to twenty-five million dollars ($25,000,000) for the purpose of a loan guarantee for paying the holders of project revenue bonds issued to pay for land, buildings or infrastructure for the project approved in Subsection A of this section; provided that the loan guarantee shall be released only upon the order of a court or upon certification by the New Mexico finance authority that revenue from the project is insufficient to make the bond payments and that, without the bond payments, the project would be in default on the project revenue bonds.

          C. If, on July 1, 2010, the economic development revolving fund bonds authorized by Subsection B of this section have not been issued and sold, the approval and authorization granted by this section is void.

     Section 2. CONTINGENCY.--The provisions of this act are contingent upon the enactment into law of House Bill 1190, Senate Bill 1119, Senate Bill 1130 or similar legislation of the first session of the forty-eighth legislature.

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