SENATE BILL 531

51st legislature - STATE OF NEW MEXICO - first session, 2013

INTRODUCED BY

Mark Moores

AN ACT

RELATING TO THE NEW MEXICO FINANCE AUTHORITY; PROVIDING FOR GREATER CONTROL OVER AUTHORITY OPERATIONS.

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

     SECTION 1. Section 6-3-1 NMSA 1978 (being Laws 1957, Chapter 253, Section 1) is amended to read:

     "6-3-1. STATE AGENCY DEFINED.--"State agency" means any department, institution, board, bureau, commission, district, [or] committee or other unit of government of the state [of New Mexico], including the New Mexico finance authority, and means every office or officer of any of the above." 

     SECTION 2. Section 6-3A-3 NMSA 1978 (being Laws 1999, Chapter 5, Section 3 and Laws 1999, Chapter 15, Section 3, as amended) is amended to read:

     "6-3A-3. DEFINITIONS.--As used in the Accountability in Government Act:

          A. "agency" means a branch, department, institution, board, bureau, commission, district, [or] committee or other unit of the state, including the New Mexico finance authority;

          B. "approved program" means a program included in an approved list of programs issued by the division pursuant to Section 6-3A-4 NMSA 1978;

          C. "baseline data" means the current level of a program's performance measures established pursuant to guidelines established by the division in consultation with the committee;

          D. "committee" means the legislative finance committee;

          E. "division" means the state budget division of the department of finance and administration;

          F. "outcome" means the measurement of the actual impact or public benefit of a program;

          G. "output" means the measure of the volume of work completed or the level of actual services or products delivered by a program;

          H. "performance-based program budget" means a budget that identifies a total allowed expenditure for a program and includes performance measures, performance standards and program evaluations;

          I. "performance measure" means a quantitative or qualitative indicator used to assess the output or outcome of an approved program;

          J. "performance target" means the expected level of performance of a program's performance measures; and

          K. "program" means a set of activities undertaken in accordance with a plan of action organized to realize identifiable goals and objectives based on legislative authorization."

     SECTION 3. Section 6-5-1 NMSA 1978 (being Laws 1957, Chapter 252, Section 1, as amended) is amended to read:

     "6-5-1. DEFINITIONS.--As used in Chapter 6, Article 5 NMSA 1978:

          A. "division" means the financial control division of the department of finance and administration;

          B. "central accounting system" means the accounting system used by the division to process and record payments, deposits and other financial transactions for state agencies and departments;

          C. "electronic" means electric, digital, magnetic, optical, electronic or similar media;

          D. "local public body" means any political subdivision of the state that expends public money from whatever source derived, including counties, county institutions, boards, bureaus or commissions; incorporated cities, towns or villages; drainage, conservancy, irrigation or other districts; charitable institutions for which appropriations are made by the legislature; and every office or officer of any of the above;

          E. "model accounting practices" means the accounting methods and procedures used by the state;

          F. "processing document" means a form, including supporting documents, submitted by a state agency to the division that will be used by the division to record a financial transaction or make payment;                               G. "state agency" means any department, institution, board, bureau, commission, district, [or] committee or other unit of the government of the state, including the New Mexico finance authority, and means every office or officer of any of the above; and

          H. "statewide accounting system network" means the central accounting system, the central payroll system, the central treasury system and all other financial accounting systems operated by state agencies as one system through manual or automated interfaces."

     SECTION 4. Section 6-5-2 NMSA 1978 (being Laws 1957, Chapter 252, Section 2, as amended) is amended to read:

     "6-5-2. FINANCIAL CONTROL DIVISION--CENTRAL SYSTEM OF STATE ACCOUNTS--ACCOUNTING SYSTEMS--PROCESSING DOCUMENTS--MODEL ACCOUNTING PRACTICES--INTERNAL ACCOUNTING CONTROLS.--

          A. The division shall maintain a central system of state accounts and shall devise, formulate, approve, control and set standards for the accounting methods and procedures of all state agencies. The division shall prescribe procedures, policies and processing documents for use by state agencies in connection with fiscal matters and may require reports from state agencies as may be necessary to carry out its duties and functions. Procedures and policies issued by the division are exempt from the uniform standards of style and format promulgated by the state commission of public records.

          B. The division shall issue a manual of model accounting practices containing the procedures and policies prescribed pursuant to Subsection A of this section and shall annually review and, if necessary, revise and reissue the manual. State agencies shall comply with the model accounting practices established by the division, and the administrative head of each state agency shall ensure that the model accounting practices are followed.

          C. State agencies shall implement internal accounting controls designed to prevent accounting errors and violations of state and federal law and rules related to financial matters. In addition, state agencies shall implement controls to prevent the submission of processing documents to the division that contain errors or that are for a purpose not authorized by law.

          D. The financial systems of the New Mexico finance authority shall be integrated into the statewide accounting system network by July 1, 2013."

     SECTION 5. Section 6-21-4 NMSA 1978 (being Laws 1992, Chapter 61, Section 4, as amended) is amended to read:

     "6-21-4. NEW MEXICO FINANCE AUTHORITY CREATED--MEMBERSHIP--QUALIFICATIONS--QUORUM--MEETINGS--COMPENSATION--BOND.--

          A. There is created a public body politic and corporate, separate and apart from the state, constituting a governmental instrumentality to be known as the "New Mexico finance authority" for the performance of essential public functions.

          B. The authority shall be composed of eleven members. The secretary of finance and administration, the secretary of economic development, the secretary of energy, minerals and natural resources, the secretary of environment, the executive director of the New Mexico municipal league and the executive director of the New Mexico association of counties or their designees shall be ex-officio members of the authority with voting privileges. The governor, with the advice and consent of the senate, shall appoint to the authority the chief financial officer of a state higher educational institution and four members who are residents of the state. The appointed members shall serve at the pleasure of the governor.

          C. The appointed members of the authority shall be appointed to four-year terms. The initial members shall be appointed to staggered terms of four years or less, so that the term of at least one member expires on January 1 of each year. Vacancies shall be filled by appointment by the governor for the remainder of the unexpired term. Any member of the authority shall be eligible for reappointment.

          D. Each appointed member before entering upon the member's duty shall take an oath of office to administer the duties of the member's office faithfully and impartially. A record of the oath shall be filed in the office of the secretary of state.

          E. The governor shall designate an appointed member of the authority to serve as chair. The authority shall elect annually one of its members to serve as vice chair. The authority shall appoint and prescribe the duties of such other officers, who need not be members, as the authority deems necessary or advisable, including chief executive officer and a secretary, who may be the same person. The authority may delegate to one or more of its members, officers, employees or agents such powers and duties as it may deem proper and consistent with the New Mexico Finance Authority Act.

          F. The chief executive officer of the authority shall direct the affairs and business of the authority, subject to the policies, control and direction of the authority. The secretary of the authority shall keep a record of the proceedings of the authority and shall be custodian of all books, documents and papers filed with the authority, the minute book or journal of the authority and its official seal. The secretary shall make copies of all minutes and other records and documents of the authority and give certificates under the official seal of the authority to the effect that the copies are true copies, and all persons dealing with the authority may rely upon the certificates.

          G. Meetings of the authority shall be held at the call of the chair or whenever three members shall so request in writing. A majority of members then serving constitutes a quorum for the transaction of any business. The affirmative vote of at least a majority of a quorum present shall be necessary for any action to be taken by the authority. An ex-officio member may designate in writing another person to attend meetings of the authority and to the same extent and with the same effect act in the ex-officio member's stead. No vacancy in the membership of the authority shall impair the right of a quorum to exercise all rights and perform all duties of the authority.

          H. Each member of the authority shall give bond as provided in the Surety Bond Act. All costs of the surety bonds shall be borne by the authority.

          I. The authority is not created or organized, and its operations shall not be conducted, for the purpose of making a profit. No part of the revenues or assets of the authority shall benefit or be distributable to its members, officers or other private persons. The members of the authority shall receive no compensation for their services, but shall be reimbursed for actual and necessary expenses at the same rate and on the same basis as provided for public officers in the Per Diem and Mileage Act.

          J. The authority shall not be subject to the supervision or control of any other board, bureau, department or agency of the state except as specifically provided in the New Mexico Finance Authority Act or other law. No use of the terms "state agency" or "instrumentality" in any other law of the state shall be deemed to refer to the authority unless the authority is specifically referred to in the law.

          K. The authority is a governmental instrumentality for purposes of the Tort Claims Act." 

     SECTION 6. Section 6-21-5 NMSA 1978 (being Laws 1992, Chapter 61, Section 5, as amended) is amended to read:

     "6-21-5. POWERS OF THE AUTHORITY.--Pursuant to the New Mexico Finance Authority Act and other applicable law, the authority is granted all powers necessary and appropriate to carry out and effectuate its public and corporate purposes, including the following powers:

          A. to sue or be sued;

          B. to adopt and alter an official seal;

          C. to make and alter bylaws for its organization and internal management and to adopt, subject to the review and approval of the New Mexico finance authority oversight committee, such rules as are necessary and appropriate to implement the provisions of the New Mexico Finance Authority Act;

          D. to appoint officers, agents and employees, prescribe their duties and qualifications and fix their compensation;

          E. to make, enter into and enforce all contracts, agreements and other instruments necessary, convenient or desirable in the exercise of the authority's powers and functions and for the purposes of the New Mexico Finance Authority Act;

          F. to acquire, construct, hold, improve, grant mortgages of, accept mortgages of, sell, lease, convey or dispose of real and personal property for its public purposes;

          G. to acquire, construct or improve real property, buildings and facilities for lease and to pledge rentals and other income received from such leases to the payment of bonds;

          H. to make loans, leases and purchase securities and contract to make loans, leases and purchase securities;

          I. to make grants to qualified entities to finance public projects; provided that such grants are not made from the public project revolving fund;

          J. to procure insurance to secure payment on any loan, lease or purchase payments owed to the authority by a qualified entity in such amounts and from such insurers, including the federal government, as it may deem necessary or desirable and to pay any premiums for such insurance;

          K. to fix, revise from time to time, charge and collect fees and other charges in connection with the making of loans, leases and any other services rendered by the authority;

          L. to accept, administer, hold and use all funds made available to the authority from any sources;

          M. to borrow money and to issue bonds and provide for the rights of the holders of the bonds;

          N. to establish and maintain reserve and sinking fund accounts to insure against and have funds available for maintenance of other debt service accounts;

          O. to invest and reinvest its funds and to take and hold property as security for the investment of such funds as provided in the New Mexico Finance Authority Act;

          P. to employ attorneys, accountants, underwriters, financial advisers, trustees, paying agents, architects, engineers, contractors and such other advisers, consultants and agents as may be necessary and to fix and pay their compensation;

          Q. to apply for and accept gifts or grants of property, funds, services or aid in any form from the United States, any unit of government or any person and to comply [subject to the provisions of the New Mexico Finance Authority Act] with the terms and conditions of the gifts or grants;

          R. to maintain an office at any place in the state it may determine;

          S. subject to any agreement with bondholders, to:

                (1) renegotiate any loan, lease or agreement;

                (2) consent to any modification of the terms of any loan, lease or agreement; and

                (3) purchase bonds, which may upon purchase be canceled; and

          T. to do any and all things necessary or convenient to carry out its purposes and exercise the powers given and granted in the New Mexico Finance Authority Act."

     SECTION 7. Section 6-21-6.11 NMSA 1978 (being Laws 2006, Chapter 89, Section 4) is amended to read:

     "6-21-6.11. RURAL COUNTY CANCER TREATMENT FUND CREATED--PURPOSE--APPROPRIATION.--The "rural county cancer treatment fund" is created in the [New Mexico finance] authority. The fund is [comprised] composed of appropriations, donations, distributions pursuant to Section 7-1-6.11 NMSA 1978 and money earned from investment of the fund and otherwise accruing to the fund. Money in the fund is appropriated to the [New Mexico finance] authority to provide a revenue stream to finance the construction of cancer treatment facilities in class B counties. Balances remaining in the fund at the end of a fiscal year shall not revert. The [New Mexico finance] authority shall administer the fund, and money from the fund may be drawn only on warrants signed by the [executive director of the New Mexico finance authority] secretary of finance and administration pursuant to vouchers signed by the chief executive [director] officer of the authority or the chief executive officer's designee."

     SECTION 8. Section 6-21-6.13 NMSA 1978 (being Laws 2008, Chapter 91, Section 2) is amended to read:

     "6-21-6.13. METROPOLITAN COURT BOND GUARANTEE FUND.--

          A. The "metropolitan court bond guarantee fund" is created in the authority. The fund is [comprised] composed of appropriations, donations, transfers pursuant to Section 3-18-17 NMSA 1978 and money earned from investment of the fund and otherwise accruing to the fund. Money in the fund is appropriated to the authority as a credit enhancement to the distributions from the court facilities fund in order to guarantee and secure the payment of principal, interest, premiums and expenses on bonds issued pursuant to Section 34-9-16 NMSA 1978 and Laws 2000, Chapter 5, Section 2. Balances remaining in the fund at the end of a fiscal year shall not revert. The authority shall administer the fund, and money from the fund may be drawn only on warrants signed by the [chief executive officer of the authority] secretary of finance and administration pursuant to vouchers signed by the chief executive officer of the authority or the chief executive officer's designee.

          B. Before each due date for payments of principal, interest, premiums or expenses on bonds issued pursuant to Section 34-9-16 NMSA 1978 and Laws 2000, Chapter 5, Section 2, the authority shall determine if the distributions from the court facilities fund will be sufficient to meet the amount due. If the authority determines that distributions from the court facilities fund are not sufficient to meet the total amount due, any insufficient amount shall be paid immediately from the metropolitan court bond guarantee fund. After each due date for a payment on the bonds, the authority shall determine the amount necessary to reserve in the metropolitan court bond guarantee fund as security for future payments and transfer any balance, above the amount reserved, to the traffic safety bureau of the department of transportation. The amounts transferred are appropriated to the bureau for expenditure on statewide efforts to prevent or reduce incidents of driving while intoxicated.

          C. Upon payment of all principal, interest, premiums and expenses on bonds guaranteed and secured by amounts in the metropolitan court bond guarantee fund, the authority shall certify to the administrative office of the courts that all obligations for bonds have been fully discharged. Upon the certification, the director of the administrative office of the courts shall cease transferring amounts to the metropolitan court bond guarantee fund and transfer those amounts to the traffic safety bureau of the department of transportation. Such amounts are appropriated to the bureau for the purposes specified in Subsection B of this section."

     SECTION 9. Section 6-21-21 NMSA 1978 (being Laws 1992, Chapter 61, Section 21, as amended) is amended to read:

     "6-21-21. MONEY OF THE AUTHORITY--EXPENSES--AUDIT--

ANNUAL REPORT.--

          A. All money of the authority, except as otherwise authorized or provided in the New Mexico Finance Authority Act or in a bond resolution, trust indenture or other instrument under which bonds are issued, shall be deposited as soon as practical in a separate account or accounts in banks or trust companies organized under the laws of this state. All deposits of money shall be secured, if required by the authority, in such a manner as the authority determines to be prudent. Banks or trust companies are authorized to give security for deposits of the authority.

          [B. Subject to the provisions of any contract with bondholders, the authority shall prescribe a system of accounts.

          C.] B. Money held by the authority that is not needed for immediate disbursement, including [any funds] money held in reserve, may be deposited with the state treasurer for short-term investment pursuant to Section 6-10-10.1 NMSA 1978 or may be invested in direct and general obligations of or obligations fully and unconditionally guaranteed by the United States, obligations issued by agencies of the United States, obligations of this state or any political subdivision of the state, interest-bearing time deposits, commercial paper issued by corporations organized and operating within the United States and rated "prime" quality by a national rating service, other investments permitted by Section 6-10-10 NMSA 1978 or as otherwise provided by the trust indenture or bond resolution, if the [funds are] money is pledged for or [secure] secures payment of bonds issued by the authority.

          [D.] C. The authority shall have an audit of its books and accounts made at least once each year by the state auditor or by a certified public accounting firm whose proposal has been reviewed and approved by the state auditor. The cost of the audit shall be an expense of the authority. Copies of the audit shall be submitted to the governor and the New Mexico finance authority oversight committee and made available to the public.

          [E.] D. The authority shall submit a report of its activities to the governor and to the legislature not later than December 1 of each year. Each report shall set forth a complete operating and financial statement covering its operations for that year."

     SECTION 10. Section 13-1-90 NMSA 1978 (being Laws 1984, Chapter 65, Section 63) is amended to read:

     "13-1-90. DEFINITION--STATE AGENCY.--"State agency" means any department, commission, council, board, committee, institution, legislative body, agency, government corporation, educational institution or other unit, including the New Mexico finance authority, or official of the executive, legislative or judicial branch of the government of this state. "State agency" includes the purchasing division of the general services department and the state purchasing agent but does not include local public bodies."

     SECTION 11. Section 13-1-99 NMSA 1978 (being Laws 1984, Chapter 65, Section 72, as amended) is amended to read:

     "13-1-99. EXCLUDED FROM CENTRAL PURCHASING THROUGH THE STATE PURCHASING AGENT.--Excluded from the requirement of procurement through the state purchasing agent but not from the requirements of the Procurement Code are the following:

          A. procurement of professional services;

          B. small purchases having a value not exceeding one thousand five hundred dollars ($1,500);

          C. emergency procurement;

          D. procurement of highway construction or reconstruction by the department of transportation;

          E. procurement by the judicial branch of state government;

          F. procurement by the legislative branch of state government;

          G. procurement by the boards of regents of state educational institutions named in Article 12, Section 11 of the constitution of New Mexico;

          H. procurement by the state fair commission of tangible personal property, services and construction under twenty thousand dollars ($20,000);

          I. purchases from the instructional material fund;

          J. procurement by all local public bodies;

          K. procurement by regional education cooperatives;

          L. procurement by charter schools;

          M. procurement by each state health care institution that provides direct patient care and that is, or a part of which is, medicaid certified and participating in the New Mexico medicaid program; [and]

          N. procurement by the public school facilities authority; and

          O. procurement by the New Mexico finance authority."

     SECTION 12. TEMPORARY PROVISION.--If the secretary of finance and administration determines, in consultation with the New Mexico finance authority, that the implementation of any provisions of this act would unconstitutionally impair the New Mexico finance authority's existing agreements with bondholders, implementation shall be delayed as necessary to avoid such impairment. The secretary of finance and administration shall report any delay in implementation to the New Mexico finance authority oversight committee.

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