NOTE:  As provided in LFC policy, this report is intended only 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 for other purposes.

 

The most recent FIR version (in HTML & Adobe PDF formats) is available on the Legislative Website.  The Adobe PDF version includes all attachments, whereas the HTML version does not.  Previously issued FIRs and attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.

 

 

F I S C A L   I M P A C T   R E P O R T

 

 

 

SPONSOR:

Taylor, J. G.

 

DATE TYPED:

03/16/03

 

HB

834/aSFC

 

SHORT TITLE:

NMFA Public Project Revolving Fund Loans

 

SB

 

 

 

ANALYST:

Kehoe

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

NFI

See Narrative

 

 

 

 

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Duplicates Senate Bill 292

 

SOURCES OF INFORMATION

 

New Mexico Finance Authority (NMFA)

LFC Files

 

SUMMARY

 

     Synopsis of SFC Amendment

 

Senate Finance Committee Amendments to HB 834 are as follows:  Items 1 through 10 are expanding the scope of certain projects; Items 11 through 13 are technical corrections; and Item 14 authorizes NMFA to make loans for an additional 49 infrastructure projects totaling approximately $200 million from the Public Project Revolving Loan Fund (PPRF). 

 

     Synopsis of Original Bill

 

House Bill 834 authorizes the New Mexico Finance Authority (NMFA) to provide loans to eligible entities for statewide infrastructure projects from the Public Project Revolving Fund (PPRF); requires eligible entities to certify to NMFA by the end of fiscal year 2006 if they are going to pursue a loan from the PPRF otherwise the authorization will be void; the bill contains an emergency clause.

 

     Significant Issues

 

Section 1, describes the 224 projects and identifies the state and local entities requiring legislative authority to make loans from the PPRF.   The approximate value of all the projects contained in House Bill 834 totals approximately $300 million in needs statewide. Loans from the PPRF benefit eligible entities by allowing them to borrow for infrastructure projects at below market costs, based on terms and conditions established by NMFA.  The authorization provided in House Bill 834 does not guarantee that those projects will receive an NMFA loan.  Loans will be made to entities that can identify a sufficient revenue source for repayment of a loan, and are able to meet other financial criteria established by the Authority.

 

Section 2, voids legislative authorization if a qualified entity does not notify the Authority by the end of fiscal year 2006 of its desire to continue to pursue a loan from NMFA.

 

Section 3, contains an emergency clause.

 

FISCAL IMPLICATIONS

 

House Bill 834 does not appropriate funds.  However, loans made in the interim as a result of passage of the bill would result in reducing the loan capacity of the Public Project Revolving Loan Fund.   The PPRF capacity for direct cash loans as of December 2002 was approximately $14.9 million.  The total value of projects contained in House Bill 834 is approximately $500 million.

 

LMK/njw:sb