SB 259 FUNDS FOR NONPROFITS FOR CAPITAL OUTLAY

Sen Jerry Ortiz y Pino

Actions: [4] SCC/STBTC/SFC-SCC

Scheduled: Not Scheduled

 Senate Bill 259 (SB 259) amends the Economic Development Finance Act (EDFA); provides loans and grants to nonprofit organizations to complete capital outlay projects; adds definitions; creates the Capital Outlay Trust Fund (COTF); amends, repeals and enacts sections of the NMSA 1978. 

 Senate Bill 259 (SB 259) amends the Economic Development Finance Act (EDFA); provides loans and grants to nonprofit organizations to complete capital outlay projects; adds definitions; creates the Capital Outlay Trust Fund (COTF); and amends, repeals and enacts sections of the NMSA 1978.

Definitions are added as follows:

•	"capital outlay project" means the acquisition, improvement, alteration or reconstruction of long-term assets that are intended to continue to be held or used, including land, buildings, machinery, furniture and equipment; 

•	"community development entity" means an entity designed to take advantage of the federal new markets tax credit program; and

•	"nonprofit organization" means a nonprofit corporation operating in this state that has been granted exemption from federal income tax by the United States Commissioner of Internal Revenue as an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended. 

The New Mexico Finance Authority is authorized to make loans and grants to nonprofit organizations to complete capital outlay projects.
The Capital Outlay Trust Fund (COTF) is created in the state treasury. The COTF consists of appropriations, distributions, gifts, grants, donations and money otherwise accruing to the fund. Money in the capital outlay trust fund is to be invested by the state investment officer as land grant permanent funds are invested. Income from investment of the COTF shall be credited to the COTF. 
 

 If the bill does not pass, the New Mexico Finance Authority will not be authorized to make loans and grants to nonprofit organizations to complete capital outlay projects. Further, the Capital Outlay Trust Fund will not be available.