SB 31 — ZERO-INTEREST NATURAL DISASTER LOANS

SENATEAN BILLACT 31RELATING 57THTO LEGISLATUREPUBLIC -FINANCE; STATE OF NEW MEXICO - FIRST SESSION, 2025 INTRODUCED BY Pete Campos and Joseph L.

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The document is a tool to show amendments in context and cannot be used for the purpose of adding amendments to legislation.

AN ACT h RELATING TO PUBLIC FINANCE;

PROVIDING ZERO-INTEREST LOANS TO g o t hr POLITICAL SUBDIVISIONS OF THE STATE AND ELECTRIC COOPERATIVES g e i k THAT HAVE BEEN APPROVED FOR FEDERAL PUBLIC ASSISTANCE FUNDING h r i s FROM THE FEDERAL EMERGENCY MANAGEMENT AGENCY FOR A FEDERALLY h , t, DECLARED NATURAL DISASTER;

e u g e b l e e h PROVIDING FOR ENFORCEMENT OF THE TERMS OF THE LOAN CONTRACTS;

n d d i = = o h CREATING THE NATURAL DISASTER REVOLVING FUND;

PROVIDING AN l ] b ,d i a º e ANNUAL TRANSFER FROM THE APPROPRIATION CONTINGENCY FUND TO THE r i = r t e w d m a n o NATURAL DISASTER REVOLVING FUND;

PROVIDING THAT THE STATE dRESERVES mSHALL :CONSIST OF CERTAIN FUNDS;

b e d s º o t n = .230054.1GLGAIC March 20, 2025 (11:42pm) s k m e e a n e d r e l u [ A d RESERVES SHALL CONSIST OF CERTAIN FUNDS;

MAKING SFCºAN APPROPRIATIONS»SFCAPPROPRIATION; SFCºAN APPROPRIATION»SFC ;

[NEW MATERIAL ] NATURAL DISASTER LOAN PROGRAM.-- A.

The department of finance and administration shall require a contract for reimbursement from a political subdivision of the state or an electric SB 31 Page 1 cooperative to receive a loan pursuant to this section.

h (1) that the political subdivision or electric u » r t h cooperative shall pay the loan by providing a release to the g e l i homeland security and emergency management department to h r i s transfer directly to the department of finance and h , e h t u g administration money received from the approved funding from e b l e e , gh the federal emergency management agency that serves as the n d d i = = o h basis for the loan;

l ] b ,d i a º r e r = (2) that the political subdivision or electric t e w d m a n o cooperative shall repay the loan within thirty days of becoming deligible mfor :reimbursement under the approved funding from the federal emergency management agency;

b r e t º o t n = .230054.1GLGAIC March 20, 2025 (11:42pm) s k m e - 2 - e a n e d r e l u [ A d eligible for reimbursement under the approved funding from the federal emergency management agency;

(4) a reasonably prompt deadline, determined on a case-by-case basis by the department of finance and administration, by which date the political subdivision or electric cooperative shall be required to expend the loan for natural disaster recovery purposes and that if the political subdivision or electric cooperative does not expend the loan by this deadline, the political subdivision or electric cooperative shall pay an interest penalty on the loan, at a SB 31 Page 2 fair current market interest rate or federal interest rate, as determined by the department of finance and administration;

h (5) that upon failure to meet a requirement of u » r this subsection, the loan shall be repaid at a fair current t h g e l i market interest rate or federal interest rate, as determined by h r i s the department of finance and administration;

and h , e h (6) that the political subdivision or electric t u g e b l e e , gh cooperative remit to the department of finance and n d d i = = o h administration, which shall deposit in the natural disaster l ] b ,d i a º r revolving fund, all income from investment of money from the e r = t e w d m a n o loan.

dB. m :

b r e t º o t n = .230054.1GLGAIC March 20, 2025 (11:42pm) s k m e - 3 - e a n e d r e l u [ A d B.

(1) projects for which loan contracts have SB 31 Page 3 been made;

and (3) any breaches of those contracts, h subsequent enforcement actions and results of the enforcement g o t hr actions, including applicable interest rates for contract g e i k breaches and the determination of those interest rates.

h r i s SECTION 2.

[NEW MATERIAL ] NATURAL DISASTER REVOLVING h , t, FUND.-- e u g e b l e e h A.

The "natural disaster revolving fund" is created n d d i = = o h in the state treasury.

The purpose of the fund is to provide l ] b ,d i a º e loans to political subdivisions of the state and electric r i = r t e w d m a n o cooperatives that have been approved for funding from the dfederal memergency :management agency for a federally declared natural disaster.

b e d s º o t n = .230054.1GLGAIC March 20, 2025 (11:42pm) s k m e - 4 - e a n e d r e l u [ A d federal emergency management agency for a federally declared natural disaster.

provided that no more than STBTCºfour two hundred fifty thousand dollars ($250,000)»STBTC($400,000) STBTCºfourSB hundred31 thousandPage dollars4 ($400,000)»STBTC annually shall be used for these purposes.

Money in the natural disaster revolving fund is h appropriated to the homeland security and emergency management u » r department for the compliance management of programs t h g e l i administered by the federal emergency management agency that h r i s serve as the basis for a natural disaster loan;

provided that h , e h no more than one hundred fifty thousand dollars ($150,000) t u g e b l e e , gh annually shall be used for these purposes.

n d d i = = o h D.

The department of finance and administration l ] b ,d i a º r shall administer the fund, and expenditures from the fund shall ebe rby =warrant tof ethe wsecretary dof mfinance aand nadministration opursuant beto vouchers signed by warrantthe ofsecretary or the secretary's authorized representative or vouchers signed by the secretary of financehomeland security and administrationemergency dmanagement mor :that secretary's authorized representative.

b r e t º o t n = .230054.1GLGAIC March 20, 2025 (11:42pm) s k m e - 5 - e a n e d r e l u [ A d pursuant to vouchers signed by the secretary or the secretary's authorized representative or vouchers signed by the secretary of homeland security and emergency management or that secretary's authorized representative.

Any unexpended or unencumbered balance exceeding HAFCº one hundred fifty million dollars ($150,000,000)»HAFC($50,000,000) HAFCºfifty million dollars ($50,000,000)»HAFC and remaining at the end of a fiscal year shall revert to the appropriation contingency fund.

SB 31 Page 5 SECTION 3.

[NEW MATERIAL ] TRANSFER--APPROPRIATION h CONTINGENCY FUND TO NATURAL DISASTER REVOLVING FUND.--Within u » r thirty days after August 1 of each year through 2028, the t h g e l i secretary of finance and administration shall calculate the h r i s unexpended and unencumbered balance of the natural disaster h , e h revolving fund and, subject to availability of funds, transfer t u g e b l e e , gh from the appropriation contingency fund to the natural disaster n d d i = = o h revolving fund an amount HAFCºnot equal to»HAFC HAFCºnot greater lthan ] b ,d i a º r than»HAFC HAFCºone hundred fifty million dollars e($50,000,000) rless =the tbalance eof wthe dnatural mdisaster arevolving nfund. o ($150,000,000)»HAFC HAFCºfifty million dollars d m :

bIf rthe eunexpended tand ºunencumbered obalance tof nthe =natural .230054.1GLGAICdisaster Marchrevolving 20,fund 2025is (11:42pm)equal sto kor mgreater ethan -fifty 6million -dollars e($50,000,000), ano ntransfer eshall dbe rmade. e l u [ A d ($50,000,000)»HAFC less the balance of the natural disaster revolving fund.

If the unexpended and unencumbered balance of the natural disaster revolving fund is equal to or greater than HAFCºone hundred fifty million dollars ($150,000,000)»HAFC HAFCºfifty million dollars ($50,000,000)»HAFC , no transfer shall be made.

[A.] The appropriation contingency fund may be expended only: