LOANED PROGRAM MONEY IN DISASTER FUND

SB 215 requires local governments (political subdivisions) that receive disaster relief loans under specific 2023 and 2024 laws to deposit all program income earned from those loans into New Mexico’s Natural Disaster Revolving Fund. Program income includes fees, rental income, sales from property bought with loan funds, and other direct earnings from activities supported by the loans. This policy change ensures that money generated by these loans - such as from services or property rentals - replenishes the fund used to provide future disaster loans, rather than going to local government general funds. The bill directly affects cities, counties, and electric cooperatives that receive federal disaster funding through state loan programs.