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AN ACT

RELATING TO GOVERNMENT ADMINISTRATION; REQUIRING THE

DEPARTMENT OF INFORMATION TECHNOLOGY TO PREPARE EQUIPMENT

REPLACEMENT PLANS; AUTHORIZING EQUIPMENT REPLACEMENT REVOLVING

FUNDS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 9-27-1 NMSA 1978 (being Laws 2007,

Chapter 290, Section 1) is amended to read:

"9-27-1. SHORT TITLE.--Chapter 9, Article 27 NMSA 1978

may be cited as the "Department of Information Technology

Act"."

Section 2. A new section of the Department of

Information Technology Act is enacted to read:

"EQUIPMENT REPLACEMENT PLANS--EQUIPMENT REPLACEMENT

REVOLVING FUNDS.--

A. In order to plan for the expenditure of capital

investments necessary to provide goods and services to the

state and its agencies and to local public bodies and other

enterprise customers, the department shall establish and

maintain an equipment replacement plan for each of the

department's enterprise functions. No later than December 1

of each year, the plans shall be submitted to the department

of finance and administration, the information technology

commission and the legislature, accompanied by a

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reconciliation report of the preceding fiscal year reflecting

financial activity in each of the equipment replacement

revolving funds established pursuant to this section.

B. Upon the request of the secretary, the state

treasurer shall establish in the state treasury such

"equipment replacement revolving funds" as are necessary to

administer each of the department's enterprise functions. The

revolving funds shall consist of legislative appropriations to

the funds and transfers made to the funds pursuant to

Subsections C and D of this section. Income from investment

of the revolving funds shall be credited back to the funds,

and money in the funds shall not revert at the end of a fiscal

year. Expenditures from the funds shall only be made pursuant

to an appropriation from the legislature and only for the

purpose of acquiring and replacing capital equipment used to

provide enterprise services pursuant to the department's

equipment replacement plans.

C. The department shall record amounts due to the

equipment replacement revolving funds each fiscal year, based

on the calculation of depreciation applicable to each

enterprise service as reflected in the department's published

cost structures for calculation of rates for services.

Transfers to the funds shall be made from the operating funds

of each enterprise in amounts that reconcile with the recorded

amounts due. The recording of amounts due to the equipment

replacement revolving funds and the transfer of the funds

shall be consistent with generally accepted accounting

principles.

D. The department may make initial transfers from

its operating funds to establish the beginning fund balances

as of July 1, 2008."

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