SENATE BILL 295

55th legislature - STATE OF NEW MEXICO - first session, 2021

INTRODUCED BY

Pete Campos

 

 

 

FOR THE LEGISLATIVE FINANCE COMMITTEE

 

AN ACT

RELATING TO PUBLIC FUNDS; AMENDING, REPEALING AND ENACTING SECTIONS OF THE NMSA 1978 RELATED TO DISASTER FUNDING; LIMITING HOW MONEY IN CERTAIN FUNDS CAN BE USED; MAKING APPROPRIATIONS.

 

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

     SECTION 1. Section 6-3-23 NMSA 1978 (being Laws 1992, Chapter 2, Section 1) is amended to read:

      "6-3-23. BUDGET ADJUSTMENT DEFINED.--As used in Chapter 6, Article 3 NMSA 1978, "budget adjustment":

          A. means:

                [A.] (1) an increase or decrease in expenditures from other state funds, internal service funds or interagency transfer;

                [B.] (2) a transfer of funds from one division of an agency to other divisions of that agency;

                [C.] (3) a transfer of funds between budget categories within an agency or a division; or

                [D.] (4) an authorization to expend federal funds; and

          B. does not mean an allocation of disaster funds appropriated pursuant to Section 6 of this 2021 act."

     SECTION 2. Section 6-3-25 NMSA 1978 (being Laws 1992, Chapter 2, Section 3, as amended) is amended to read:

     "6-3-25. BUDGET ADJUSTMENT PROCEDURE.--

          A. Except for federal funds, [disaster assistance funds and emergency response funds] any budget adjustment request to transfer, decrease or increase funds shall be held in abeyance for ten calendar days after the director of the state budget division of the department of finance and administration has approved the request and has filed the request with the director of the legislative finance committee or [his] the director's designee. The request shall be accompanied by a statement, in writing, of the conditions under which the budget adjustment request is approved, together with justification for approval.

          B. If, within ten days, the director of the legislative finance committee or [his] the director's designee objects to the request, the request shall not go into effect until it is reviewed by the legislative finance committee at a public hearing held within thirty-five calendar days of receipt of the proposed budget adjustment by the director of the legislative finance committee or [his] the director's designee. If the state fiscal year ends prior to the date scheduled for a hearing, the request shall go into effect on the last day of the fiscal year.

          C. If, within ten days of receipt of a budget adjustment request, the director of the legislative finance committee or [his] the director's designee indicates that no objection will be forthcoming, the proposed budget adjustment request may be implemented immediately. If no public hearing is held within the required thirty-five days, the request may be implemented."

     SECTION 3. Section 6-4-2.1 NMSA 1978 (being Laws 1987, Chapter 184, Section 1) is amended to read:

     "6-4-2.1. GENERAL FUND OPERATING RESERVE CREATED--AUTHORIZING EXPENDITURES.--

          A. There is hereby created within the general fund the "general fund operating reserve". [Notwithstanding any other provision of law to the contrary, there shall be deposited to the general fund operating reserve cash balances in the fund existing pursuant to Laws 1966, Chapter 66, Section 16; Laws 1968, Chapter 71, Section 13; Laws 1970, Chapter 89, Section 4; Laws 1971, Chapter 327, Section 6; Laws 1972, Chapter 98, Section 6; Laws 1973, Chapter 403, Section 6; Laws 1974 (S.S.), Chapter 3, Section 6; Laws 1975 (S.S.), Chapter 17, Section 6; Laws 1976, Chapter 58, Section 7; Laws 1979, Chapter 404, Section 7; Laws 1981, Chapter 38, Section 7; Laws 1983, Chapter 46, Section 8; Laws 1984 (S.S.), Chapter 7, Section 7; and Laws 1986, Chapter 116, Section 1.]

          B. The general fund operating reserve may be expended only:

                (1) pursuant to Subsection D of Section 6 of this 2021 act, Subsection B of Section 6-12-15 NMSA 1978 and Section 22-18A-5 NMSA 1978; and

                (2) upon specific authorization by the legislature in an amount authorized by the legislature and only in the event general fund revenues and balances, including all other transfers to the general fund authorized by law, are insufficient to meet the level of appropriations authorized."

     SECTION 4. Section 6-4-2.3 NMSA 1978 (being Laws 1991, Chapter 10, Section 7) is amended to read:

     "6-4-2.3. APPROPRIATION CONTINGENCY FUND.--

          A. There is created within the general fund the "appropriation contingency fund".

          [A.] B. The appropriation contingency fund may be expended only:

                (1) pursuant to Subsection C of Section 6 of this 2021 act and Subsection B of Section 6-12-15 NMSA 1978; and

                (2) upon specific authorization by the legislature. [or as provided in Sections 6-7-1 through 6-7-3 NMSA 1978 in the event there is no surplus of unappropriated money in the general fund and in the amount authorized by the legislature.

          B. Notwithstanding Section 6-4-4 NMSA 1978, for the seventy-ninth fiscal year, if the revenues of the general fund exceed the total appropriations from the general fund, the excess revenue shall be transferred to the appropriation contingency fund.

          C. Five million dollars ($5,000,000) is transferred from the operating reserve fund to the public school state-support reserve fund in the eightieth fiscal year.

          D. If revenues and transfers to the general fund, excluding transfers to the operating reserve, appropriation contingency fund and public school state-support reserve, as of the end of the seventy-ninth fiscal year, are not sufficient to meet appropriations, the governor, with state board of finance approval, may transfer at the end of that year the amount necessary to meet the year's obligations from the unencumbered balance remaining in the general fund operating reserve in a total not to exceed sixty million dollars ($60,000,000).]"

     SECTION 5. A new section of Chapter 6, Article 7 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] DISASTER AND EMERGENCY FUNDING--POLICY AND PURPOSE.--Because of the possibility of the occurrence of disasters and emergencies that may severely affect the quality of government services and require the immediate expenditure of money that is not within the available resources of a state agency, political subdivision or Indian nation, tribe or pueblo located in whole or in part in New Mexico, to protect the peace, health and safety and to preserve the lives and property of the people of the state, it is necessary to establish a source of emergency disaster funds."

     SECTION 6. A new section of Chapter 6, Article 7 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] DISASTER AND EMERGENCY FUNDING--APPROPRIATIONS--REPORTING REQUIREMENTS.-- 

          A. Prior to receiving funds appropriated to remediate a disaster pursuant to this section:

                (1) a disaster shall have occurred;

                (2) a state agency or political subdivision needing the funds shall submit a written request to the governor for the funds, including a description of the disaster and the amount of funding requested;

                (3) the governor shall issue a declaration of emergency due to the disaster; and

                (4) the governor shall issue an executive order ordering the intent to expend the funds.

          B. No later than five days after issuance of the executive order ordering the intent to expend the funds, the governor shall provide to the director of the legislative council service and the director of the legislative finance committee:

                (1) a description of the disaster;

                (2) the amount of relief needed to remediate the disaster and an accounting of the expected expenses;

                (3) the intended source of the funds and the balance of the source; and

                (4) for each recipient of and allocation of the funds:

                     (a) the name of the recipient;

                     (b) the amount of the allocation;

                     (c) the projected use of the allocation;

                     (d) a time line for expending the allocation;

                     (e) projected reimbursement for expenditure from the allocation;

                     (f) projected federal matching funding that is expected to be leveraged; and

                     (g) a copy of the request for assistance pursuant to Paragraph (2) of Subsection A of this section.

          C. If the requirements of Subsection A of this section are met, there is appropriated from the appropriation contingency fund the amount necessary to remediate the disaster; provided that no more than five million dollars ($5,000,000) may be appropriated for each executive order issued by the governor pursuant to Paragraph (4) of Subsection A of this section.

          D. If the balance of the appropriation contingency fund is insufficient to remediate a disaster pursuant to Subsection C of this section, upon approval from the state board of finance, the balance of the amount necessary to remediate the disaster is appropriated from the general fund operating reserve; provided that the total amount that may be appropriated in each fiscal year for all disasters shall not exceed twenty million dollars ($20,000,000).

          E. The money appropriated pursuant to Subsections C and D of this section shall be expended to remediate a disaster. The funds shall be expended by the governor or agent or agency designated by the governor for those purposes, either as a state project or for securing matching federal funds. The money shall be paid upon warrants drawn by the secretary of finance and administration upon vouchers approved by the governor or agent or agency designated by the governor for that purpose.

          F. By January 1, March 1, July 1 and October 1 of each year, the governor shall provide an accounting of expenses made, recipients of the funds and the balance of funds appropriated pursuant to Subsections C and D of this section.

          G. If the state receives federal or other non-state funds to remediate the same disaster as identified in the emergency declaration pursuant to Paragraph (3) of Subsection A of this section, a corresponding amount of the funds appropriated pursuant to Paragraph (4) of Subsection A of this section shall revert to the fund or reserve from which the funds originated. If the funds appropriated pursuant to Paragraph (4) of Subsection A of this section have been expended, the fund or reserve from which the funds originated shall be reimbursed by a corresponding amount from the federal or other non-state funds received, unless otherwise provided or prohibited by law.

          H. Unexpended and unencumbered funds appropriated pursuant to this section remaining at the close of the fiscal year subsequent to the fiscal year in which the relevant declaration of emergency is issued shall revert to the fund or reserve from which the funds originated.

          I. As used in this section:

                (1) "disaster" means an unforeseen occurrence or circumstance of such severity as to require the assistance of the state to save lives and protect property and public health and safety and requiring the immediate expenditure of money that is not within the available resources of a requesting state agency, political subdivision or an Indian nation, tribe or pueblo located in whole or in part in New Mexico and, if such expenditure is subject to appropriation, cannot reasonably await appropriation by the next regular session of the legislature; and

                (2) "state project" means an expenditure by a state agency to provide resources and services necessary to avoid or minimize economic or physical harm caused by a disaster until the disaster has been remediated. "State project" includes expenditures on a temporary, emergency basis for lodging, sheltering, health care, food or any transportation or shipping necessary to protect lives or public property."

     SECTION 7. Section 15-3-24.1 NMSA 1978 (being Laws 1989, Chapter 315, Section 1) is amended to read:

     "15-3-24.1. CAPITAL PROJECTS FUND--CREATED.--[A.] There is created in the state treasury the "capital projects fund" from which appropriations for specific projects and programs shall be made. The state treasurer shall deposit in this fund all amounts specifically appropriated to this fund and all governmental grants designated to or authorized for deposit in this fund.

          [B. Fifty-six million nine hundred forty-two thousand three hundred seventy-one dollars ($56,942,371) is appropriated from the general fund to the capital projects fund created in Subsection A of this section for expenditure in the seventy-seventh through eightieth fiscal years. In the event that general fund revenues and balances, including all other transfers to the general fund authorized by law, are insufficient to meet the level of this appropriation, an amount not to exceed this amount is authorized by the legislature to be expended from the general fund operating reserve pursuant to Section 6-4-2.1 NMSA 1978.]"

     SECTION 8. REPEAL.--Sections 12-11-23 through 12-11-25 NMSA 1978 (being Laws 1955, Chapter 185, Sections 1 through 3, as amended) are repealed.

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