HOUSE APPROPRIATIONS AND FINANCE COMMITTEE SUBSTITUTE FOR
HOUSE BILL 196
56th legislature - STATE OF NEW MEXICO - second session, 2024
AN ACT
RELATING TO PUBLIC FINANCE; CREATING THE GOVERNMENT RESULTS AND OPPORTUNITY EXPENDABLE TRUST AND THE GOVERNMENT RESULTS AND OPPORTUNITY PROGRAM FUND; PROVIDING FOR DISTRIBUTIONS FROM THE GOVERNMENT RESULTS AND OPPORTUNITY EXPENDABLE TRUST TO THE GOVERNMENT RESULTS AND OPPORTUNITY PROGRAM FUND; CHANGING A PROVISION OF LAW THAT CURRENTLY TRANSFERS CERTAIN EXCESS REVENUE TO THE TAX STABILIZATION RESERVE TO INSTEAD TRANSFER THE EXCESS REVENUE TO THE GOVERNMENT RESULTS AND OPPORTUNITY EXPENDABLE TRUST; REQUIRING THE STAFF OF THE LEGISLATIVE FINANCE COMMITTEE AND THE STATE BUDGET DIVISION OF THE DEPARTMENT OF FINANCE AND ADMINISTRATION TO ANALYZE THE ACCOUNTABILITY IN GOVERNMENT ACT AND MAKE RECOMMENDATIONS TO THE LEGISLATIVE FINANCE COMMITTEE FOR CHANGES TO THAT ACT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of Chapter 6, Article 4 NMSA 1978 is enacted to read:
"[NEW MATERIAL] GOVERNMENT RESULTS AND OPPORTUNITY EXPENDABLE TRUST.--
A. The "government results and opportunity expendable trust" is created as a nonreverting fund in the state treasury. The trust shall consist of distributions, appropriations, gifts, grants and donations. Income from investment of the trust shall be credited to the trust. Money in the trust shall be expended only as provided in this section.
B. Beginning July 1, 2025 and July 1 of each year thereafter, a distribution shall be made from the government results and opportunity expendable trust to the government results and opportunity program fund in an amount equal to twenty-five percent of the balance of the trust or one hundred million dollars ($100,000,000), whichever is greater; provided that if the balance of the trust is less than one hundred million dollars ($100,000,000), the balance of the trust shall be distributed. For fiscal year 2025, any unexpended or unencumbered balance remaining after the distribution is made in that fiscal year shall be included in the calculation of state reserves.
C. In addition to the distribution pursuant to Subsection B of this section, money in the government results and opportunity expendable trust may be expended in the event that general fund balances, including all authorized revenues and transfers to the general fund and balances in the general fund operating reserve, will not meet the level of appropriations authorized from the general fund for a fiscal year. In that event, the legislature may appropriate from the government results and opportunity expendable trust to the general fund only in the amount necessary to meet general fund appropriations for that fiscal year and only if the legislature has authorized a transfer from the general fund operating reserve that exhausts that fund balance."
SECTION 2. A new section of Chapter 6, Article 4 NMSA 1978 is enacted to read:
"[NEW MATERIAL] GOVERNMENT RESULTS AND OPPORTUNITY PROGRAM FUND.--The "government results and opportunity program fund" is created as a nonreverting fund in the state treasury. The fund consists of distributions, appropriations, gifts, grants, donations and income from investment of the fund. The department of finance and administration shall administer the fund. Money in the fund is subject to appropriation by the legislature. Expenditures from the fund shall be by warrant of the secretary of finance and administration pursuant to vouchers signed by the secretary of finance and administration or the secretary's authorized representative."
SECTION 3. Section 6-4-4 NMSA 1978 (being Laws 1987, Chapter 347, Section 4, as amended) is amended to read:
"6-4-4. [TRANSFERS BETWEEN GENERAL FUND RESERVES] TRANSFER FROM THE GENERAL FUND TO THE GOVERNMENT RESULTS AND OPPORTUNITY EXPENDABLE TRUST--TRANSFER FROM THE TAX STABILIZATION RESERVE TO THE GENERAL FUND OPERATING RESERVE.--
A. [For the seventy-seventh and subsequent fiscal years] If the revenues of the general fund exceed the total of appropriations from the general fund, the excess revenue shall be transferred to the general fund operating reserve; provided that if the sum of the excess revenue plus the balance in the general fund operating reserve prior to the transfer is greater than eight percent of the aggregate recurring appropriations from the general fund for the previous fiscal year, then an amount equal to the smaller of either the amount of the excess revenue or the difference between the sum and eight percent of the aggregate recurring appropriations from the general fund for the previous fiscal year shall be transferred to the [tax stabilization reserve] government results and opportunity expendable trust.
B. If the balance in the general fund operating reserve as of the end of a fiscal year is less than one percent of aggregate general fund appropriations for that fiscal year, as determined by the department of finance and administration, then an amount equal to the smaller of either one percent of aggregate general fund appropriations for that fiscal year or the amount necessary to bring the balance of the general fund operating reserve to one percent of aggregate general fund appropriations for that fiscal year shall be transferred from the tax stabilization reserve to the general fund operating reserve."
SECTION 4. TEMPORARY PROVISION--REVIEW OF THE ACCOUNTABILITY IN GOVERNMENT ACT--REPORT TO LEGISLATURE.--During the 2024 legislative interim, the staff of the legislative finance committee and the state budget division of the department of finance and administration shall meet regularly to examine and analyze the provisions of the Accountability in Government Act to determine if changes to that act could be made to ensure more cost-effective and responsive government services. On or before December 15, 2024, the staff shall report their findings and make recommendations for legislative changes if any are found to be necessary to the legislative finance committee.
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