SB 31 New Mexico Senate · 2025 Regular Session

ZERO-INTEREST NATURAL DISASTER LOANS

SB 31 creates a zero-interest loan program for New Mexico local governments and electric cooperatives that received federal disaster funding from FEMA after a declared natural disaster. Borrowers must repay loans within 30 days using their FEMA funds, with penalties for late repayment, and must use the loans for recovery within a set timeframe. The program is funded through a new "Natural Disaster Revolving Fund," replenished annually with $150 million transfers from the state’s contingency fund and loan repayments. The state requires regular reporting to the legislature on loan amounts, repayments, and enforcement actions to ensure accountability.

Bill status signed all 5 stages cleared

Introduction

Jan 2025

Committee Review

Mar 2025

Senate Passage

Mar 2025

House Passage

Mar 2025

Signed into Law

Apr 2025

Introduced Jan 31, 2025 Signed Apr 11, 2025

Maddy AI version diff · 1 comparison

What changed between versions

introduced version → Final Version · 6 edits

MODERATE

The bill was reorganized from an introduced draft to a final version with significant structural changes. The core policy remains the same: providing zero-interest loans to political subdivisions and electric cooperatives for federally declared natural disasters, but the final version adds specific enforcement mechanisms, creates two separate revolving funds, and establishes detailed reporting requirements.

Scope change

The bill's scope expanded to explicitly create two distinct revolving funds (Natural Disaster Revolving Fund and Federal Reimbursement Revolving Fund) and added specific funding allocation limits for administrative costs.

FISCAL

Created two separate revolving funds: one for natural disaster loans and one for federal reimbursement tracking, with specific annual spending caps of $400,000 for loan program administration and $150,000 for compliance management.

ENFORCEMENT

Added explicit enforcement provisions requiring the secretary of finance and administration to take legal action to enforce loan contract terms.

REQUIREMENT

Added interest penalty provisions requiring borrowers to pay market-rate interest if they fail to meet expenditure deadlines or other contract requirements.

Added specific contract requirements including expenditure deadlines, interest penalty clauses, and breach consequences.

TIMELINE

Established a June 1, 2025 reporting deadline with subsequent six-month reporting requirements to the legislative finance committee and governor.

DEFINITION

Changed the fund structure from a single revolving fund to multiple funds with different purposes and spending limits.

Floor votes · Senate Feb 28, 2025 · House Mar 21, 2025

How they voted

35–0

Passed · 5 other

Total votes 40

Feb 28, 2025

D Democratic24

21 Yea 3

87% Yea

R Republican16

14 Yea 2

87% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Apr 11, 2025

Signed into law

Signed

executive

Mar 21, 2025

Executive · Passed

Senate concurred in House amendments

executive

Mar 21, 2025

Lower · Passed

passed House

lower

Mar 20, 2025

Lower · Passed

DO PASS, as amended, committee report adopted

lower

Mar 14, 2025

Lower · Passed

DO PASS committee report adopted

lower

Mar 1, 2025

Introduced

Sent to House Government, Elections and Indian Affairs Committee & House Appropriations & Finance Committee

lower

Feb 28, 2025

Upper · Passed

passed Senate

upper

Feb 26, 2025

Upper · Passed

DO PASS, as amended, committee report adopted

upper

Feb 19, 2025

Upper · Passed

DO PASS, as amended, committee report adopted

upper

Jan 31, 2025

Introduced

Sent to Senate Tax, Business and Transportation Committee & Senate Finance Committee

upper

4 primary · 0 co-sponsors