LOANED PROGRAM MONEY IN DISASTER FUND

SB0215

SENATE BILL 215

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

INTRODUCED BY

George K. Muñoz

AN ACT

RELATING TO PUBLIC FINANCE; REQUIRING PROGRAM INCOME EARNED BY
A POLITICAL SUBDIVISION AS A RESULT OF MONEY LOANED TO IT
PURSUANT TO LAWS 2023, CHAPTER 2, SECTION 1 OR SUBSECTION D OF
SECTION 2 OF CHAPTER 1 OF LAWS 2024 (1ST S.S.) TO BE DEPOSITED
IN THE NATURAL DISASTER REVOLVING FUND; DECLARING AN EMERGENCY.

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

SECTION 1.
Section 6-4-2.7 NMSA 1978 (being Laws 2025,
Chapter 157, Section 2) is amended to read:

"6-4-2.7. NATURAL DISASTER REVOLVING FUND.--

A. The "natural disaster revolving fund" is created
in the state treasury. The purpose of the fund is to provide
loans to political subdivisions of the state and electric
cooperatives that have been approved for funding from the
federal emergency management agency for a federally declared
natural disaster. The fund consists of distributions,
transfers, appropriations, gifts, grants, donations and income
from investment of the fund. Money in the fund shall be
invested by the state treasurer.

B. Money in the natural disaster revolving fund is
appropriated to the department of finance and administration
for:

(1) the purposes of the natural disaster loan
program pursuant to Section [
1 of this 2025 act
]
6-4-2.6 NMSA
1978
; and

(2) administration of the natural disaster
loan program and enforcement of loan contracts; provided that
no more than four hundred thousand dollars ($400,000) annually
shall be used for these purposes.

C. Money in the natural disaster revolving fund is
appropriated to the homeland security and emergency management
department for the compliance management of programs
administered by the federal emergency management agency that
serve as the basis for a natural disaster loan; provided that
no more than one hundred fifty thousand dollars ($150,000)
annually shall be used for these purposes.

D. The department of finance and administration
shall administer the fund, and expenditures from the fund shall
be by warrant of the secretary of finance and administration
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.

[
E. Any unexpended or unencumbered balance
exceeding fifty million dollars ($50,000,000) and remaining at
the end of a fiscal year shall revert to the appropriation
contingency fund. Any unexpended or unencumbered balance
remaining at the end of a fiscal year shall be included in the
calculation of state reserves.

F.
]
E.
Any money,
including program income earned
,
repaid or reimbursed to the state pursuant to Laws 2023,
Chapter 2, Section 1 or Laws 2024 (1st S.S.), Chapter 1,
Section 2 shall be deposited in the natural disaster revolving
fund.
For the purposes of this subsection, "program income"
means gross income earned by a political subdivision that is
directly generated by a supported activity or earned as a
result of money loaned pursuant to Laws 2023, Chapter 2,
Section 1 or Subsection D of Section 2 of Chapter 1 of Laws
2024 (1st S.S.) and includes income from:

(1) fees for services performed;

(2) the use or rental of real or personal
property acquired with loan funds;

(3) the sale of commodities or items
fabricated with loan funds;

(4) license fees;

(5) royalties on patents and copyrights; and

(6) interest earned on money loaned pursuant
to this subsection or program income.
"

SECTION 2.
EMERGENCY.--It is necessary for the public
peace, health and safety that this act take effect immediately.

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