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SPONSOR: |
Romero |
DATE TYPED: |
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HB |
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SHORT TITLE: |
Local Government Investments |
SB |
750 |
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ANALYST: |
Neel |
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REVENUE
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
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FY03 |
FY04 |
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|
|
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(Parenthesis ( ) Indicate Revenue Decreases)
Relates to:
HB 118 Local Government Investments
HB 306 Investments by County & Municipal
Treasurers
LFC files
Responses
Received From
Attorney
General Office (AG)
SUMMARY
Synopsis
of Bill
Senate Bill 750 amends NMSA 1978, Section 6-10-10 to allow county and municipal treasurers to invest in bonds, notes, or other obligations of the federal government and its instrumentalities and bonds, notes, or other obligations guaranteed, as the principal and interest, by the federal government, its instrumentalities, and its programs.
Significant
Issues
This would allow
county and municipal governments to invest in backed securities such as Freddic Mac. Fanny Mae and Federal Home Loan
Board securities that have better yields than securities guaranteed by the
federal government. Although US sponsored
investments are slightly less secure than US guaranteed investments, this
change would allow more flexibility when investing.
Local governments can already access these
investment vehicles through the State Treasurer’s local investment pool.
FISCAL IMPLICATIONS
No fiscal impact is
noted. However; there will be a positive
impact on local revenues if local entities shift their portfolio toward higher
yielding investments.
SN/sb