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F I S C A L I M P A C T R E P O R T





SPONSOR: Picraux DATE TYPED: 02/13/01 HB 486
SHORT TITLE: Investment of Venture Capital Standard SB
ANALYST: Eaton


REVENUE



Estimated Revenue
Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY01 FY02

See Narrative

(Parenthesis ( ) Indicate Revenue Decreases)



SOURCES OF INFORMATION



State Land Office (SLO)

State Investment Council (SIC)



SUMMARY



Synopsis of Bill



This bill would augment the investment standards portion Venture Capital Investment laws for both the Land Grant Permanent Fund and the Severance Tax Permanent Fund (6-8-21 & 7-27-5.6 respectively). It would direct the State Investment Officer to give consideration to investments when the recipient of the venture capital would locate on state trust lands.



Significant Issues



The State Land Office (SLO) reports that this legislation would encourage a higher percentage of investment of New Mexico's permanent funds in New Mexico. The SLO also report that investment in infrastructure by these businesses on trust lands will increase the value of these lands.



FISCAL IMPLICATIONS



The State Investment Council reported no fiscal impact. The State Land Office report that this bill could have a positive impact on the State Land Office Maintenance Fund because rents on buildings located on trust lands are deposited with the State Land Office.



JBE/prr:ar