0001|                            HOUSE BILL 225
    |
0002|     43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
    |
0003|                            INTRODUCED BY
    |
0004|                              RON GENTRY
    |
0005|     
    |
0006|                                   
    |
0007|     
    |
0008|       FOR THE NEW MEXICO FINANCE AUTHORITY OVERSIGHT COMMITTEE
    |
0009|     
    |
0010|                                AN ACT
    |
0011|     RELATING TO FINANCE; AMENDING THE NEW MEXICO FINANCE AUTHORITY
    |
0012|     ACT TO ALLOW PERMANENT EQUIPMENT LOANS FROM THE PUBLIC PROJECT
    |
0013|     REVOLVING FUND.
    |
0014|     
    |
0015|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
    |
0016|          Section 1.  Section 6-21-6 NMSA 1978 (being Laws 1992,
    |
0017|     Chapter 61, Section 6, as amended) is amended to read:
    |
0018|          "6-21-6.  PUBLIC PROJECT REVOLVING FUND--PURPOSE--
    |
0019|     ADMINISTRATION.--
    |
0020|               A.  The "public project revolving fund" is created
    |
0021|     within the authority.  The fund shall be administered by the
    |
0022|     authority as a separate account, but may consist of such
    |
0023|     subaccounts as the authority deems necessary to carry out the
    |
0024|     purposes of the fund.  The authority is authorized to
    |
0025|     establish procedures and adopt regulations as required to
    |
<center>- 1 -</center>

0001|     administer the fund in accordance with the New Mexico Finance
    |
0002|     Authority Act.
    |
0003|               B.  Except as otherwise provided in the New Mexico
    |
0004|     Finance Authority Act, money from payments of principal of and
    |
0005|     interest on loans and payments of principal of and interest on
    |
0006|     securities held by the authority for public projects
    |
0007|     authorized specifically by law shall be deposited in the
    |
0008|     public project revolving fund.  The fund shall also consist of
    |
0009|     any other money appropriated, distributed or otherwise
    |
0010|     allocated to the fund for the purpose of financing public
    |
0011|     projects authorized specifically by law.
    |
0012|               C.  Money appropriated to pay administrative costs,
    |
0013|     money available for administrative costs from other sources
    |
0014|     and money from payments of interest on loans or securities
    |
0015|     held by the authority, including payments of interest on loans
    |
0016|     and securities held by the authority for public projects
    |
0017|     authorized specifically by law, that represents payments for
    |
0018|     administrative costs shall not be deposited in the public
    |
0019|     project revolving fund and shall be deposited in a separate
    |
0020|     account of the authority and may be used by the authority to
    |
0021|     meet administrative costs of the authority.
    |
0022|               D.  Except as otherwise provided in the New Mexico
    |
0023|     Finance Authority Act, money in the public project revolving
    |
0024|     fund is appropriated to the authority to make loans or grants
    |
0025|     and to purchase or sell securities to assist qualified
    |
<center>- 2 -</center>

0001|     entities in financing public projects in accordance with the
    |
0002|     New Mexico Finance Authority Act and pursuant to specific
    |
0003|     authorization by law for each project.
    |
0004|               E.  Money in the public project revolving fund not
    |
0005|     needed for immediate disbursement, including <s>[any funds]</s>
    |
0006|     <u>money</u> held in reserve, may be deposited with the state
    |
0007|     treasurer for short-term investment pursuant to Section
    |
0008|     6-10-10.1 NMSA 1978 or may be invested in direct and general
    |
0009|     obligations of or obligations fully and unconditionally
    |

0010|     guaranteed by the United States, obligations issued by
    |
0011|     agencies of the United States, obligations of this state or
    |
0012|     any political subdivision of the state, interest-bearing time
    |
0013|     deposits, commercial paper issued by corporations organized
    |
0014|     and operating in the United States and rated "prime" quality
    |
0015|     by a national rating service, other investments permitted by
    |
0016|     Section 6-10-10 NMSA 1978 or as otherwise provided by the
    |
0017|     trust indenture or bond resolution, if <s>[funds are]</s> <u>money
</u>    |
<u></u>0018| <u>    is</u> pledged for or <s>[secure]</s> <u>secures</u> payment of bonds
    |
0019|     issued by the authority.
    |
0020|               F.  The authority shall establish fiscal controls
    |
0021|     and accounting procedures that are sufficient to ensure proper
    |
0022|     accounting for public project revolving fund payments,
    |
0023|     disbursements and balances.
    |
0024|               G.  Money on deposit in the public project
    |
0025|     revolving fund may be used to make interim loans for a term
    |
<center>- 3 -</center>

0001|     not exceeding one year to qualified entities for the purpose
    |
0002|     of providing interim financing for any project approved or
    |
0003|     funded by the legislature.
    |
0004|               H.  Money on deposit in the public project
    |
0005|     revolving fund may be used to acquire securities or to make
    |
0006|     loans to qualified entities in connection with the equipment
    |
0007|     program.  As used in this subsection, "equipment program"
    |
0008|     means the program of the authority designed to finance the
    |
0009|     acquisition of equipment for fire protection; law enforcement
    |
0010|     and protection; computer and data processing; street and road
    |
0011|     construction and maintenance; emergency medical services;
    |
0012|     solid waste collection, transfer and disposal; radio and
    |
0013|     telecommunications; and utility system purposes; and to
    |
0014|     finance the acquisition, construction and improvement of fire
    |
0015|     stations.  The amount of securities acquired from or the loan
    |
0016|     made to a qualified entity at any one time pursuant to this
    |
0017|     subsection shall not exceed five hundred thousand dollars
    |
0018|     ($500,000).  <u>The authority may provide financing in
</u>    |
<u></u>0019| <u>    connection with the equipment program in the following ways:
</u>    |
<u></u>0020| <u>                   (1)  the authority may provide financing on an
</u>    |
<u></u>0021| <u>    interim basis.  Permanent financing for these temporarily
</u>    |
<u></u>0022| <u>    funded projects must be obtained within one year.  Such
</u>    |
<u></u>0023| <u>    permanent financing may be provided from the public project
</u>    |
<u></u>0024| <u>    revolving fund subject to the provisions of Paragraph (2) of
</u>    |
<u></u>0025| <u>    this subsection or subject to specific authorization by law.</u> 
    |
<center>- 4 -</center>

0001|     If permanent financing for these projects is not provided from
    |
0002|     the public project revolving fund, the authority shall issue
    |
0003|     bonds within one year of the date the securities are acquired
    |
0004|     or within one year of the date on which the loans are made and
    |
0005|     use the bond proceeds to reimburse the public project
    |
0006|     revolving fund for the amounts temporarily used to acquire
    |
0007|     securities or to make loans.  The temporarily funded projects
    |
0008|     under the equipment program are not required to obtain
    |
0009|     specific authorization by law required of projects permanently
    |
0010|     funded from the public project revolving fund, as provided in
    |
0011|     this section and Section 6-21-8 NMSA 1978; <u>or</u> 
    |
0012|                    <u>(2)  the authority may, with the concurrence
</u>    |
<u></u>0013| <u>    of the New Mexico finance authority oversight committee and
</u>    |
<u></u>0014| <u>    the legislative finance committee and up to an aggregate limit
</u>    |
<u></u>0015| <u>    of three million dollars ($3,000,000) in each fiscal year,
</u>    |
<u></u>0016| <u>    provide permanent financing from the public project revolving
</u>    |
<u></u>0017| <u>    fund for projects in the equipment program.  Such permanently
</u>    |
<u></u>0018| <u>    financed projects in the equipment program are not required to
</u>    |
<u></u>0019| <u>    obtain specific authorization by law as provided in this
</u>    |
<u></u>0020| <u>    section and Section 6-21-8 NMSA 1978.</u>
    |
0021|               I.  Money on deposit in the public project
    |
0022|     revolving fund may be designated as <u>a</u> reserve <s>[funds]</s> for
    |
0023|     any bonds issued by the authority, including bonds payable
    |
0024|     from sources other than the public project revolving fund, and
    |
0025|     the authority may covenant in any bond resolution or trust
    |
<center>- 5 -</center>

0001|     indenture to maintain and replenish the reserve <s>[funds]</s> from
    |
0002|     money deposited in the public project revolving fund after
    |
0003|     issuance of bonds by the authority."
    |
0004|                                  
    |