HOUSE BILL 209

52nd legislature - STATE OF NEW MEXICO - first session, 2015

INTRODUCED BY

Tomás E. Salazar

AN ACT

RELATING TO THE STATE FISC; REQUIRING PERIODIC REVERSION OF SPECIAL FUNDS TO THE GENERAL FUND; PROVIDING EXCEPTIONS; PROVIDING FOR REVIEW OF FUNDS AND RECOMMENDATIONS TO THE LEGISLATURE EACH YEAR.

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

     SECTION 1. [NEW MATERIAL] LEGISLATIVE FINDINGS AND PURPOSE--SPECIAL FUNDS--FIVE-YEAR REVERSIONS--EXCEPTIONS.--

          A. The legislature finds that the proliferation of special funds that do not revert to the general fund is counterproductive to good government. The purpose of this section is to establish a mechanism for ongoing legislative review of the continued efficacy of nonreverting special funds and the programs they support.

          B. Notwithstanding general laws to the contrary, at least one-fifth of all special nonreverting funds in the state treasury shall revert to the general fund each year, except funds that are:

                (1) constitutionally created as nonreverting funds or statutory funds created to carry out Enabling Act for New Mexico or constitutional mandates;

                (2) actuarially obligated;

                (3) created pursuant to court order or made nonreverting pursuant to court order;

                (4) funded by severance tax bonds or other bonds for active projects under contract that have not been completed;

                (5) permanent, trust or endowment funds;

                (6) sinking funds, unless the project for which the sinking fund was created is completed;

                (7) suspense funds;

                (8) revolving loan funds; or

                (9) gifts, grants or donations that are specific to purpose.

          C. The state auditor shall establish a schedule of review of special nonreverting funds in the state treasury. Each year, the state auditor shall develop a list, including review findings, that includes at least one-fifth of special funds in the state treasury that are not excepted pursuant to Subsection B of this section that are recommended for reversion, repeal or amendment. The state auditor shall report the recommendations to the legislative finance committee and other appropriate legislative interim committees by November 1 of each year. The state treasurer, the department of finance and administration, other state agencies and legislative interim committees shall cooperate with and assist the state auditor as requested.

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