SENATE FINANCE COMMITTEE SUBSTITUTE FOR
SENATE BILL 6
56th legislature - STATE OF NEW MEXICO - first session, 2023
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 FIRE, FLOODING OR DEBRIS FLOWS CAUSED BY OR STEMMING FROM THE HERMITS PEAK-CALF CANYON FIRE; REQUIRING APPROVAL FOR FEDERAL ASSISTANCE FUNDING; REQUIRING REIMBURSEMENT CONTRACTS; PROVIDING FOR ENFORCEMENT; MAKING AN APPROPRIATION; DECLARING AN EMERGENCY.
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 FIRE, FLOODING OR DEBRIS FLOWS--REQUIREMENT FOR PUBLIC ASSISTANCE GRANTS--REPORTS.--
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 fire, flooding or debris flows caused by or stemming from the Hermits Peak-Calf Canyon fire. 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) 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) 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.
D. On or before April 1, 2023, and every three months thereafter, the local government division shall provide a report to the legislative finance committee and the governor regarding the loans made pursuant to this section, including: the projects for which loan contracts have been made, the dollar amounts of those contracts, the repayments made pursuant to contracts, any breaches of contract and subsequent enforcement actions pursuant to this section. Reports pursuant to this subsection shall cease upon the final repayment on a contract pursuant to this section.
SECTION 2. APPROPRIATION.--
A. One hundred million dollars ($100,000,000) is appropriated from the general fund to the local government division of the department of finance and administration for expenditure in fiscal years 2023 and 2024 for the following purposes:
(1) two hundred fifty thousand dollars ($250,000) shall be used for issuance of loans and administration and enforcement of loan contracts entered into pursuant to Section 1 of this act; and
(2) ninety-nine million seven hundred fifty thousand dollars ($99,750,000) shall be used to provide loans pursuant to Section 1 of this act.
B. Any unexpended or unencumbered balance remaining at the end of fiscal year 2024 shall revert to the general fund.
SECTION 3. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.
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