HOUSE BILL 196

49th legislature - STATE OF NEW MEXICO - second session, 2010

INTRODUCED BY

Janice E. Arnold-Jones

AN ACT

RELATING TO PUBLIC MONEY; REQUIRING CERTAIN FINDINGS AND DISCLOSURES PRIOR TO THE ISSUANCE OF DEBT INSTRUMENTS BY THE STATE OR A POLITICAL SUBDIVISION OF THE STATE.

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

     Section 1. DEBT OBLIGATIONS OF STATE AGENCIES AND POLITICAL SUBDIVISIONS--MANDATORY FINDINGS AND DISCLOSURES.--

          A. Prior to issuing bonds or any other debt instruments, a state agency or a political subdivision of the state shall:

                (1) using a national database widely available to debt issuers, make a written finding that expected interest rates and all costs of the issuance, including but not limited to legal, underwriting, advisory and consultant fees, are competitive with other recently issued bonds or similar instruments issued under similar market conditions and with a comparable rating, issue size and purpose; and

                (2) post the written finding, with all supporting data, detailed costs of the issuance and the methodology used in making the finding on the web site of the agency or political subdivision, provided that, if the agency or political subdivision does not maintain a web site, it shall submit the information to the department of finance and administration and the department shall post the information on the department's web site.

          B. As used in this section, "state agency" means the state or any of its departments, institutions, boards, bureaus, commissions, committees, authorities or instrumentalities, including but not limited to:

                (1) the New Mexico finance authority;

                (2) the New Mexico exposition center authority;

                (3) the New Mexico renewable energy transmission authority;

                (4) the New Mexico lottery authority;

                (5) the nonprofit foundation created pursuant to the Educational Assistance Act;

                (6) a research park corporation created pursuant to the University Research Park and Economic Development Act;

                (7) the New Mexico mortgage finance authority;

                (8) the New Mexico hospital equipment loan council;

                (9) the New Mexico industrial and agricultural finance authority; and

                (10) any office or officer of an entity included in this subsection.

     Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2010.

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