HOUSE JOINT MEMORIAL 17

53rd legislature - STATE OF NEW MEXICO - second session, 2018

INTRODUCED BY

Daymon Ely

 

 

 

 

 

A JOINT MEMORIAL

REQUESTING THE NEW MEXICO LEGISLATIVE COUNCIL TO CONVENE A TASK FORCE TO STUDY THE ADVISABILITY OF ESTABLISHING A STATE BANK OF NEW MEXICO.

 

     WHEREAS, the bank of North Dakota, established in 1919, promotes agriculture, commerce and industry in the state by investing its funds through student loans, business development loans, state bonds and municipal bonds and providing loans through partnerships with local private lenders to businesses and communities in times of disaster; and

     WHEREAS, a public bank feasibility study undertaken by the city of Santa Fe found that a public bank could improve fiscal management, support the local lending climate and save the city money; and

     WHEREAS, a state-owned bank in New Mexico could substantially reduce the cost of bond financing, help stabilize the state economy, provide local existing and start-up businesses with greater access to credit, support local economic development, augment the lending capacity of state-chartered private banks and credit unions and contribute revenue to help fund state government; and

     WHEREAS, at least twenty-two states have undertaken studies to determine the feasibility of establishing a state-owned bank; and

     WHEREAS, to date, no studies have been undertaken to assess the advisability of establishing a state bank of New Mexico;

     NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that a state bank of New Mexico, and its potential attributes and contributions to the economic health of the state, be worthy of study; and

     BE IT FURTHER RESOLVED that the New Mexico legislative council be requested to convene a task force to study the advisability of establishing a state bank of New Mexico; and

     BE IT FURTHER RESOLVED that the task force be composed of no more than seventeen members, including six legislators from both houses, no more than three from the same party, ten members of the public with interest or expertise in financial issues and a representative of the state treasurer; and

     BE IT FURTHER RESOLVED that the task force present the preliminary findings of its study, including topics for further study and a summary of legislation that is needed to authorize the creation of a state bank, to the appropriate interim committee by November 1, 2018; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the co-chairs of the New Mexico legislative council and the state treasurer.

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