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.

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

SPONSOR:	Papen		DATE TYPED:	01/31/03		HB
SHORT TITLE:		Private Sale of Local Bonds to NMFA				SB	117
					ANALYST:		L. Kehoe

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY03	FY04	FY03	FY04
			NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

New Mexico Finance Authority (NMFA)

SUMMARY

Synopsis of Bill

Senate Bill 117 authorizes NMFA to issue bonds in the form of a loan agreement to municipalities, counties and school districts that would otherwise have to issue general obligation bonds.

Significant Issues

According to NMFA, Senate Bill 117 will save a county, municipality or school district the costs incurred by the issuance of bonds. However, all legal restrictions and requirements concerning general obligation debt would be left in place.

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

SOURCES OF INFORMATION

LMK/prr