ZERO-INTEREST LOANS FOR FLOOD DAMAGE

HB0314

HOUSE BILL 314

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Mark B. Murphy
and
Angelita Mejia
and
Jonathan A. Henry

and
Jimmy G. Mason
and
Andrea Reeb

AN ACT

RELATING TO PUBLIC FINANCE; REQUIRING THE LOCAL GOVERNMENT
DIVISION OF THE DEPARTMENT OF FINANCE AND ADMINISTRATION TO
PROVIDE ZERO-INTEREST LOANS TO POLITICAL SUBDIVISIONS OF THE
STATE FOR PROJECTS TO REPLACE OR REPAIR PUBLIC INFRASTRUCTURE
DAMAGED BY FLOODING OR DEBRIS FLOWS OR PROJECTS TO REMOVE
DEBRIS ACCUMULATIONS ATTRIBUTABLE TO THE STORM EVENT ON OCTOBER
19, 2024; REQUIRING APPROVAL FOR FEDERAL ASSISTANCE FUNDING;
REQUIRING REIMBURSEMENT CONTRACTS; MAKING AN APPROPRIATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1.
TEMPORARY PROVISION--LOANS TO POLITICAL

SUBDIVISIONS--REPLACEMENT OR REPAIR OF PUBLIC INFRASTRUCTURE

DAMAGED BY FLOODING OR DEBRIS FLOWS--REQUIREMENT FOR

PUBLIC ASSISTANCE FUNDING.--

A. The local government division of the department
of finance and administration, in consultation with the
homeland security and emergency management department, shall
provide zero-interest reimbursable loans to political
subdivisions of the state that have been approved for federal
public assistance funding for projects to replace or repair
public infrastructure damaged by flooding or debris flows or to
remove debris accumulations attributable to the storm event in
Chaves county on October 19, 2024. The local government
division shall require a contract for reimbursement from a
political subdivision of the state receiving a loan pursuant to
this section. The contract shall specify:

(1) that the political subdivision shall pay
the loan using first dollars received from the approved federal
public assistance funding that serves as the basis for the
loan;

(2) that the political subdivision shall repay
the loan within thirty days of having received the approved
federal public assistance funding;

(3) such notice or reporting requirements that
the local government division deems necessary to be
sufficiently informed regarding compliance with Paragraphs (1)
and (2) of this subsection; and

(4) that upon failure to meet a requirement of
this subsection, the loan shall be repaid at current market
interest rates.

B. All loan repayments made pursuant to this
section shall be deposited into the general fund.

C. The secretary of finance and administration
shall take any and all legal actions necessary to enforce the
terms of contracts entered into pursuant to this section.

SECTION 2.
APPROPRIATION.--One hundred fifty million
dollars ($150,000,000) is appropriated from the general fund to
the local government division of the department of finance and
administration for expenditure in fiscal years 2027 and 2028 to
provide loans in accordance with Section 1 of this act. Any
unexpended balance remaining at the end of fiscal year 2028
shall revert to the general fund.

SECTION 3.
EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2026.

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