Bill > SB31

This bill establishes a Zero-interest Natural Disaster Loans program that allows the Department of Finance and Administration to provide zero-interest, reimbursable loans to political subdivisions and electric cooperatives that have been approved for Federal Emergency Management Agency (FEMA) funding after a federally declared natural disaster. The loans require a detailed contract specifying that recipients must repay the funds within 30 days of becoming eligible for FEMA reimbursement, with provisions for interest penalties if loan funds are not expended promptly for disaster recovery. The bill creates two new financial funds: the Natural Disaster Revolving Fund, which will hold loan repayments and can be used to provide future disaster loans, and the Federal Reimbursement Revolving Fund, which will collect federal reimbursements for emergency responses. The state will transfer up to $50 million annually from the Appropriation Contingency Fund to the Natural Disaster Revolving Fund, and the Department of Finance and Administration must provide periodic reports to the legislative finance committee and governor about loan contracts, repayments, and any contract breaches. The bill also adds the new revolving funds to the state's official list of reserves and declares an emergency, meaning the act will take effect immediately upon passage.

Budget and Finance, Government Affairs

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=31&year=25