0001| HOUSE BILL 295
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0002| 42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION,
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0003| 1996
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0004| INTRODUCED BY
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0005| ROBERTO "BOBBY" J. GONZALES
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0006|
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0007|
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0008|
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0009| FOR THE NEW MEXICO FINANCE AUTHORITY OVERSIGHT COMMITTEE
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0010|
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0011| AN ACT
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0012| RELATING TO PUBLIC FINANCE; AUTHORIZING THE NEW MEXICO FINANCE
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0013| AUTHORITY AND CERTAIN GOVERNMENTAL UNITS TO UNDERTAKE SPECIFIC
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0014| ACTIVITIES RELATED TO PROJECT FINANCING; PROVIDING POWERS AND
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0015| DUTIES; AMENDING CERTAIN SECTIONS OF THE NMSA 1978; DECLARING AN
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0016| EMERGENCY.
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0017|
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0018| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0019| Section 1. Section 6-21-6 NMSA 1978 (being Laws 1992,
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0020| Chapter 61, Section 6, as amended) is amended to read:
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0021| "6-21-6. PUBLIC PROJECT REVOLVING FUND--PURPOSE--
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0022| ADMINISTRATION.--
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0023| A. The "public project revolving fund" is created
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0024| within the authority. The fund shall be administered by the
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0025| authority as a separate account, but may consist of such
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0001| subaccounts as the authority deems necessary to carry out the
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0002| purposes of the fund. The authority is authorized to establish
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0003| procedures and adopt regulations as required to administer the
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0004| fund in accordance with the New Mexico Finance Authority Act.
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0005| B. Except as otherwise provided in the New Mexico
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0006| Finance Authority Act, money from payments of principal of and
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0007| interest on loans and payments of principal of and interest on
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0008| securities held by the authority for public projects authorized
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0009| specifically by law shall be deposited in the public project
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0010| revolving fund. The fund shall also consist of any other money
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0011| appropriated, distributed or otherwise allocated to the fund for
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0012| the purpose of financing public projects authorized specifically
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0013| by law.
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0014| C. Money appropriated to pay administrative costs,
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0015| money available for administrative costs from other sources and
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0016| money from payments of interest on loans or securities held by
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0017| the authority, including [but not limited to] payments of
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0018| interest on loans and securities held by the authority for
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0019| public projects authorized specifically by law, that represents
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0020| payments for administrative costs shall not be deposited in the
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0021| public project revolving fund and shall be deposited in a
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0022| separate account of the authority and may be used by the
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0023| authority to meet administrative costs of the authority.
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0024| D. Except as otherwise provided in the New Mexico
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0025| Finance Authority Act, money in the public project revolving
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0001| fund is appropriated to the authority to make loans or grants
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0002| and to purchase or sell securities to assist qualified entities
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0003| in financing public projects in accordance with the New Mexico
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0004| Finance Authority Act and pursuant to specific authorization by
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0005| law for each project.
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0006| E. Money in the public project revolving fund not
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0007| needed for immediate disbursement, including any funds held in
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0008| reserve, may be deposited with the state treasurer for
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0009| short-term investment pursuant to Section 6-10-10.1 NMSA 1978 or
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0010| may be invested in direct and general obligations of or
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0011| obligations fully and unconditionally guaranteed by the United
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0012| States, obligations issued by agencies of the United States,
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0013| obligations of this state or any political subdivision of the
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0014| state, interest-bearing time deposits, commercial paper issued
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0015| by corporations organized and operating in the United States and
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0016| rated "prime" quality by a national rating service, [prime
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bankers' acceptances issued by money center banks] other
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0018| investments permitted by Section 6-10-10 NMSA 1978 or as
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0019| otherwise provided by the trust indenture or bond resolution, if
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0020| funds are pledged for or secure payment of bonds issued by the
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0021| authority.
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0022| F. The authority shall establish fiscal controls and
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0023| accounting procedures that are sufficient to assure proper
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0024| accounting for public project revolving fund payments,
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0025| disbursements and balances.
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0001| G. Money on deposit in the public project revolving
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0002| fund may be used to make interim loans for a term not exceeding
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0003| one year to qualified entities for the purpose of providing
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0004| interim financing for any project approved or funded by the
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0005| legislature.
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0006| H. Money on deposit in the public project revolving
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0007| fund may be used to acquire securities or to make loans to
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0008| qualified entities in connection with the equipment program. As
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0009| used in this subsection, "equipment program" means the program
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0010| of the authority designed to finance the acquisition of
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0011| equipment for fire protection; law enforcement and protection;
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0012| computer and data processing; street and road construction and
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0013| maintenance; emergency medical services; solid waste collection,
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0014| transfer and disposal; radio and telecommunications; and utility
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0015| system purposes; and to finance the acquisition, construction
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0016| and improvement of fire stations. The amount of securities
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0017| acquired from or the loan made to a qualified entity at any one
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0018| time pursuant to this subsection shall not exceed five hundred
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0019| thousand dollars ($500,000). The authority shall issue bonds
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0020| within one year of the date the securities are acquired or
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0021| within one year of the date on which the loans are made and use
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0022| the bond proceeds to reimburse the public project revolving fund
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0023| for the amounts temporarily used to acquire securities or to
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0024| make loans. The temporarily funded projects under the equipment
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0025| program are not required to obtain specific authorization by law
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0001| required of projects permanently funded from the public project
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0002| revolving fund, as provided in this section and Section 6-21-8
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0003| NMSA 1978.
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0004| [H.] I. Money on deposit in the public project
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0005| revolving fund may be designated as reserve funds for any bonds
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0006| issued by the authority, including [but not limited to] bonds
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0007| payable from sources other than the public project revolving
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0008| fund, and the authority may covenant in any bond resolution or
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0009| trust indenture to maintain and replenish the reserve funds from
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0010| money deposited in the public project revolving fund after
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0011| issuance of bonds by the authority."
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0012| Section 2. Section 6-21-21 NMSA 1978 (being Laws 1992,
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0013| Chapter 61, Section 21, as amended) is amended to read:
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0014| "6-21-21. MONEY OF THE AUTHORITY--EXPENSES--AUDIT--
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0015| ANNUAL REPORT.--
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0016| A. All money of the authority, except as otherwise
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0017| authorized or provided in the New Mexico Finance Authority Act
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0018| or in a bond resolution, trust indenture or other instrument
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0019| under which bonds are issued, shall be deposited as soon as
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0020| practical in a separate account or accounts in banks or trust
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0021| companies organized under the laws of this state. All deposits
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0022| of money shall be secured, if required by the authority, in such
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0023| a manner as the authority determines to be prudent. Banks or
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0024| trust companies are authorized to give security for deposits of
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0025| the authority.
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0001| B. Subject to the provisions of any contract with
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0002| bondholders, the authority shall prescribe a system of accounts.
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0003| C. Money held by the authority that is not needed
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0004| for immediate disbursement, including any funds held in reserve,
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0005| may be deposited with the state treasurer for short-term
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0006| investment pursuant to Section 6-10-10.1 NMSA 1978 or may be
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0007| invested in direct and general obligations of or obligations
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0008| fully and unconditionally guaranteed by the United States,
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0009| obligations issued by agencies of the United States, obligations
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0010| of this state or any political subdivision of the state,
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0011| interest-bearing time deposits, commercial paper issued by
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0012| corporations organized and operating within the United States
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0013| and rated "prime" quality by a national rating service, [prime
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bankers' acceptances issued by money center] other investments
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0015| permitted by Section 6-10-10 NMSA 1978 or as otherwise provided
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0016| by the trust indenture or bond resolution, if the funds are
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0017| pledged for or secure payment of bonds issued by the authority.
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0018| D. The authority shall have an audit of its books
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0019| and accounts made at least once each year by the state auditor
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0020| or by a certified public accounting firm whose proposal has been
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0021| reviewed and approved by the state auditor. The cost of the
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0022| audit shall be an expense of the authority. Copies of the audit
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0023| shall be submitted to the governor and the New Mexico finance
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0024| authority oversight committee and made available to the public.
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0025| E. The authority shall submit a report of its
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0001| activities to the governor and to the legislature not later than
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0002| December 1 of each year. Each report shall set forth a complete
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0003| operating and financial statement covering its operations for
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0004| that year."
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0005| Section 3. Section 7-1-6.15 NMSA 1978 (being Laws 1983,
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0006| Chapter 211, Section 20, as amended) is amended to read:
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0007| "7-1-6.15. ADJUSTMENTS OF DISTRIBUTIONS OR TRANSFERS TO
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0008| MUNICIPALITIES OR COUNTIES.--
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0009| A. The provisions of this section apply to:
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0010| (1) any distribution to a municipality of gross
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0011| receipts taxes pursuant to Section 7-1-6.4 NMSA 1978 or of
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0012| interstate telecommunications gross receipts tax pursuant to
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0013| Section 7-1-6.36 NMSA 1978;
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0014| (2) any transfer to a municipality with respect
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0015| to any local option gross receipts tax imposed by that
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0016| municipality;
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0017| (3) any transfer to a county with respect to
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0018| any local option gross receipts tax imposed by that county;
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0019| (4) any distribution to a county pursuant to
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0020| Section 7-1-6.16 NMSA 1978;
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0021| (5) any distribution to a municipality or a
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0022| county of gasoline taxes pursuant to Section 7-1-6.9 NMSA 1978;
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0023| (6) any transfer to a county with respect to
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0024| any tax imposed in accordance with the Local Liquor Excise Tax
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0025| Act;
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0001| (7) any distribution to a municipality or a
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0002| county of cigarette taxes pursuant to Sections 7-1-6.11, 7-12-15
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0003| and 7-12-16 NMSA 1978;
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0004| (8) any distribution to a county from the
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0005| county government road fund pursuant to Section 7-1-6.26 NMSA
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0006| 1978; and
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0007| (9) any distribution to a municipality of
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0008| gasoline taxes pursuant to Section 7-1-6.27 NMSA 1978.
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0009| B. If the secretary determines that any prior
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0010| distribution or transfer to a municipality or county was
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0011| erroneous, the secretary shall increase or decrease the next
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0012| distribution or transfer amount for that municipality or county
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0013| after the determination, except as provided in Subsection C, D
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0014| or E of this section, by the amount necessary to correct the
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0015| error. Subject to the provisions of Subsection E of this
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0016| section, the secretary shall notify the municipality or county
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0017| of the amount of each increase or decrease.
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0018| C. No decrease shall be made to current or future
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0019| distributions or transfers to a municipality or a county for any
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0020| excess distribution or transfer made to that municipality or
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0021| county more than one year prior to the calendar year in which
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0022| the determination of the secretary was made.
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0023| D. The secretary, in lieu of recovery from the next
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0024| distribution or transfer amount, may recover an excess
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0025| distribution or transfer of one hundred dollars ($100) or more
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0001| to the municipality or county in installments from current and
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0002| future distributions or transfers to that municipality or county
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0003| pursuant to an agreement with the officials of the municipality
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0004| or county whenever the amount of the distribution or transfer
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0005| decrease for the municipality or county exceeds ten percent of
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0006| the average distribution or transfer amount for that
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0007| municipality or county for the twelve months preceding the month
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0008| in which the secretary's determination is made; provided that
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0009| for the purposes of this subsection, the "average distribution
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0010| or transfer amount" shall be the arithmetic mean of the
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0011| distribution or transfer amounts within the twelve months
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0012| immediately preceding the month in which the determination is
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0013| made.
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0014| E. Except for the provisions of this section, if the
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0015| amount by which a distribution or transfer would be adjusted
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0016| pursuant to Subsection B of this section is one hundred dollars
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0017| ($100) or less, no adjustment or notice need be made.
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0018| F. The secretary is authorized to decrease a
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0019| distribution to a municipality or county upon being directed to
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0020| do so by the secretary of finance and administration pursuant to
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0021| the State Aid Intercept Act or to redirect a distribution to the
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0022| New Mexico finance authority pursuant to an ordinance or a
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0023| resolution passed by the county or municipality and a written
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0024| agreement of the municipality or county and the New Mexico
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0025| finance authority. Upon direction to decrease a distribution or
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0001| notice to redirect a distribution to a municipality or county,
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0002| the secretary shall decrease or redirect the next designated
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0003| distribution, and succeeding distributions as necessary, by the
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0004| amount of the state distributions intercept authorized by the
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0005| secretary of finance and administration pursuant to the State
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0006| Aid Intercept Act or by the amount of the state distribution
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0007| intercept authorized pursuant to an ordinance or a resolution
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0008| passed by the county or municipality and a written agreement
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0009| with the New Mexico finance authority. The secretary shall
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0010| transfer the state distributions intercept amount to the
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0011| municipal or county treasurer or other person designated by the
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0012| secretary of finance and administration or to the New Mexico
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0013| finance authority pursuant to written agreement to pay the debt
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0014| service to avoid default on qualified local revenue bonds or
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0015| meet other local revenue bond, loan or other debt obligations of
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0016| the municipality or county to the New Mexico finance authority." Section 4. Section 29-13-6 NMSA 1978 (being Laws 1983,
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0017| Chapter 289, Section 6, as amended) is amended to read:
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0018| "29-13-6. DISTRIBUTION OF LAW ENFORCEMENT PROTECTION
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0019| FUND.--
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0020| A. Annually on or before July 31, the state
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0021| treasurer shall distribute from the fund the amounts certified
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0022| by the division to be distributed to municipalities and
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0023| counties. Payments shall be made to the treasurer of the
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0024| appropriate governmental entity.
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0025| B. The state treasurer is authorized to redirect a
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0001| distribution to the New Mexico finance authority in an amount
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0002| certified by the division, pursuant to an ordinance or a
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0003| resolution passed by the municipality or county and a written
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0004| agreement of the municipality or county and the New Mexico
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0005| finance authority.
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0006| C. Annually on or before July 31, the state
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0007| treasurer shall distribute from the excess money remaining in
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0008| the fund after distributions pursuant to Subsection A of this
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0009| section are made, money certified by the division to be
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0010| distributed to tribes and pueblos. Payment shall be made to the
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0011| chief financial officer of the tribe or pueblo. If necessary,
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0012| the fund may be decreased below the level of one hundred
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0013| thousand dollars ($100,000) to enable payment to the tribes and
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0014| pueblos. If insufficient money remains in the fund to fully
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0015| compensate the tribes and pueblos, a report shall be made to the
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0016| New Mexico office of Indian affairs and to an appropriate
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0017| interim committee of the legislature that reviews issues having
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0018| impact on tribes and pueblos in New Mexico by September 1 of the
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0019| year of the shortfall."
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0020| Section 5. Section 59A-53-7 NMSA 1978 (being Laws 1984,
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0021| Chapter 127, Section 978, as amended) is amended to read:
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0022| "59A-53-7. DISTRIBUTION OF FIRE PROTECTION FUND.--
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0023| A. Annually on or before the last day of July, the
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0024| state treasurer shall distribute from the money in the fire
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0025| protection fund, to each incorporated municipality and to each
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0001| county fire district, the amount as the marshal or the state
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0002| fire board, as the case may be, shall have certified to him.
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0003| Payment shall be made to the treasurer of any incorporated
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0004| municipality and to the county treasurer of the county in which
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0005| any county fire district is located for credit to the county
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0006| fire district.
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0007| B. The state treasurer is authorized to redirect a
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0008| distribution to the New Mexico finance authority in the amount
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0009| as the marshal or the state fire board, as the case may be,
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0010| shall have certified to him pursuant to an ordinance or a
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0011| resolution passed by the municipality or county and a written
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0012| agreement of the municipality or county in which any county fire
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0013| district is located and the New Mexico finance authority."
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0014| Section 6. EMERGENCY.--It is necessary for the public
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0015| peace, health and safety that this act take effect immediately.
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0016| State of New Mexico
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0017| House of Representatives
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0018|
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0019| FORTY-SECOND LEGISLATURE
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0020| SECOND SESSION, 1996
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0021|
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0022| February 2, l996
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0023|
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0024|
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0025| Mr. Speaker:
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0001|
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0002| Your RULES AND ORDER OF BUSINESS COMMITTEE, to
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0003| whom has been referred
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0004|
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0005| HOUSE BILL 295
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0006|
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0007| has had it under consideration and finds same to be
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0008| GERMANE in accordance with constitutional provisions.
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0009|
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0010| Respectfully submitted,
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0011|
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0012|
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0013|
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0014|
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0015| Barbara A. Perea Casey,
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0016| Chairperson
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0017|
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0018|
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0019| Adopted Not Adopted
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0020|
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0021| (Chief Clerk) (Chief Clerk)
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0022|
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0023| Date
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0024|
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0025| The roll call vote was 8 For 0 Against
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0001| Yes: 8
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0002| Excused: Nicely, Olguin, Pederson, Picraux, Rodella,
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0003| J. G. Taylor, Wallach
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0004| Absent: None
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0005|
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0006|
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0007| H0295RC1 State of New Mexico
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0008| House of Representatives
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0009|
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0010| FORTY-SECOND LEGISLATURE
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0011| SECOND SESSION, 1996
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0012|
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0013|
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0014| February 9, 1996
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0015|
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0016|
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0017| Mr. Speaker:
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0018|
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0019| Your TAXATION AND REVENUE COMMITTEE, to whom has
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0020| been referred
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0021|
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0022| HOUSE BILL 295
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0023|
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0024| has had it under consideration and reports same with
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0025| recommendation that it DO PASS.
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0001|
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0002| Respectfully submitted,
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0003|
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0004|
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0005|
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0006|
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0007| Jerry W. Sandel, Chairman
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0008|
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0009|
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0010| Adopted Not Adopted
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0011|
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0012| (Chief Clerk) (Chief Clerk)
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0013|
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0014| Date
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0015|
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0016| The roll call vote was 13 For 0 Against
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0017| Yes: 13
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0018| Excused: None
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0019| Absent: None
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0020|
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0021|
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0022|
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0023| H0295TR1
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0024|
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0025| FORTY-SECOND LEGISLATURE
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0001| SECOND SESSION, 1996
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0002|
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0003|
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0004| February 13, 1996
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0005|
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0006| Mr. President:
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0007|
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0008| Your WAYS AND MEANS COMMITTEE, to whom has been
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0009| referred
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0010|
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0011| HOUSEBILL 295
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0012|
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0013| has had it under consideration and reports same with
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0014| recommendation that it DO PASS.
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0015|
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0016| Respectfully submitted,
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0017|
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0018|
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0019|
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0020| __________________________________
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0021| TITO D. CHAVEZ, Chairman
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0022|
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0023|
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0024|
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0025| Adopted_______________________ Not Adopted_______________________
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0001| (Chief Clerk) (Chief Clerk)
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0002|
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0003|
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0004|
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0005| Date ________________________
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0006|
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0007|
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0008| The roll call vote was 5 For 0 Against
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0009| Yes: 5
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0010| No: 0
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0011| Excused: Campos, Rhodes, Jennings
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0012| Absent: None
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0013|
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0014|
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0015| H0295WM1
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0016|
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