NATURAL DISASTER LOANS & FUND

SB 134 creates a zero-interest loan program for New Mexico local governments (cities, counties, etc.) that have received federal disaster funding approval from FEMA for a federally declared natural disaster. The state provides loans to cover immediate recovery costs before federal funds arrive, requiring repayment within 30 days using the federal funds themselves - late repayment triggers interest penalties. All repayments and penalties flow into a "Natural Disaster Revolving Fund," which receives an annual $100 million transfer from the state’s contingency fund until the fund reaches $100 million in balance. The bill mandates regular reporting to the legislature on loan usage, repayments, and enforcement actions to ensure transparency.