HB 209 REGIONAL COUNCIL FUND MATCH REQUIREMENT

Rep Susan K Herrera

Actions: [3] not prntd-HRC [4] w/drn-prntd-ref- HRDLC/HCEDC-HRDLC [5] DP-HCEDC [8] DP [9] PASSED/H (65-0) [7] SFC-SFC

Scheduled: Not Scheduled

 House Bill 209 (HB 209):  This legislative act is related to economic development in the state of New Mexico. The main focus is to remove the match requirement for regional councils of planning and development districts to receive grants-in-aid from the Department of Finance and Administration. 

 House Bill 209 (HB 209):  Section 1 - Amendment to Section 4-58-6 NMSA 1978:
•	The specific section being amended is Section 4-58-6 of the New Mexico Statutes Annotated (NMSA) 1978.
Removal of Match Requirement:
•	The amendment removes the requirement for regional councils to provide matching funds or services from nonfederal local or private sources to qualify for a grant-in-aid.
•	Previously, the regional councils had to obtain matching funds at least equal to the amount of the state grant-in-aid.
Notification Process:
•	The secretary of finance and administration is responsible for notifying the respective boards of directors of the regional councils about the allocated amount.
•	Regional councils can apply for grants-in-aid using forms provided by the secretary.
•	Regional councils must be officially recognized for a designated district.
•	The governing board of the regional council must certify the adoption of a budget for the expenditure of state and local funds consistent with the Planning District Act.
•	The requirement for obtaining nonfederal matching funds is removed.
Reporting and Reimbursement:
•	The regional councils are required to submit an audited report of expenditures at the end of each fiscal year.
•	Unexpended state funds on June 30 each year will revert to the general fund.
•	If state funds were used for purposes not within the Planning District Act, the amount must be reimbursed to the state.
Review and Payment:

•	The secretary of finance and administration will review grant-in-aid applications.
•	If a regional council qualifies, the grant-in-aid will be paid, but without the previous dollar-for-dollar matching basis requirement.
•	The total of all grants-in-aid within a planning and development district is not allowed to exceed the amount allocated to that district for the fiscal year.
•	State and local funds or services may be used to qualify for matching federal funds under the Planning District Act.
Non-Qualification Reversion:
•	If a planning and development district does not qualify for the total amount of grants-in-aid allocated due to the lack of matching funds, the unqualified amount will revert to the state general fund.
Exemption for Matching Funds:
•	A regional council of a planning and development district is explicitly not required to obtain matching funds as a condition of receiving a grant-in-aid from the department of finance and administration.