HOUSE BILL 196

56th legislature - STATE OF NEW MEXICO - second session, 2024

INTRODUCED BY

Nathan P. Small

 

 

 

FOR THE LEGISLATIVE FINANCE COMMITTEE

 

AN ACT

RELATING TO PUBLIC FINANCE; CREATING THE GOVERNMENT ACCOUNTABILITY EXPENDABLE TRUST AND THE GOVERNMENT ACCOUNTABILITY PROGRAM FUND; PROVIDING FOR DISTRIBUTIONS FROM THE GOVERNMENT ACCOUNTABILITY EXPENDABLE TRUST TO THE GOVERNMENT ACCOUNTABILITY PROGRAM FUND TO FUND PILOT PROJECTS THAT WILL BE EVALUATED BY THE LEGISLATIVE FINANCE COMMITTEE IN CONSULTATION WITH THE STATE BUDGET DIVISION OF THE DEPARTMENT OF FINANCE AND ADMINISTRATION AND THE STATE AGENCY ADMINISTERING THE PILOT PROJECT; CHANGING A PROVISION OF LAW THAT CURRENTLY TRANSFERS CERTAIN EXCESS REVENUE TO THE TAX STABILIZATION RESERVE TO INSTEAD TRANSFER THE EXCESS REVENUE TO THE GOVERNMENT ACCOUNTABILITY EXPENDABLE TRUST.

 

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

     SECTION 1. A new section of the Accountability in Government Act is enacted to read:

     "[NEW MATERIAL] EVALUATING PILOT PROJECTS FUNDED BY THE GOVERNMENT ACCOUNTABILITY PROGRAM FUND--APPROPRIATIONS FOR PILOT PROJECTS TO INCLUDE ADMINISTRATIVE COSTS.--

          A. An agency that proposes to conduct a pilot project shall, by September 1 of the year prior to the legislative session in which a request for an appropriation from the government accountability program fund for the pilot project is expected to be made, include the following information to the committee:

                (1) a description of project premise, including the purpose of the pilot project, a working hypothesis or a theory of change and a description of how the pilot project will help to achieve specific agency goals or objectives;

                (2) a justification of need describing the extent of the problem to be addressed and the locations and population the pilot project will serve;

                (3) a description of the pilot project, including a list of specific activities to achieve expected outcomes and cost per unit for the proposal and an estimate of the cost to evaluate the pilot project;

                (4) a current categorization of the pilot project as being evidence-based, promising or research-based or in need of additional research;

                (5) an implementation or action plan for the pilot project that shall include a time line for implementation of activities, milestones and a target date for full implementation;

                (6) a fidelity plan, including specific process metrics to be used to ensure the pilot project is implemented as intended; and

                (7) a measurement and evaluation plan, including specific activities, evaluation requirements and outcome measures to be used to test the working hypothesis or theory of change, as well as dates for when these data will be made available.

          B. The committee, in consultation with the division and the agency administering a pilot project, shall develop performance measures for the agency to evaluate the pilot project. For each year the pilot project is in effect, a notification of the evaluation shall be sent to the agency on or before June 15, and the evaluation shall be completed and submitted by the agency to the committee on or before July 15. The notification shall include the performance measures to be evaluated and:

                (1) a summary of the information and requirements provided in Paragraphs (1) through (7) of Subsection A of this section since the commencement of the pilot project;

                (2) the outputs produced by, the outcomes resulting from and baseline data associated with each performance measure;

                (3) whether the information provided pursuant to Paragraph (2) of this subsection demonstrates that the pilot project has proven that the hypothesis of the pilot project is likely to be beneficial in New Mexico;

                (4) if the pilot project is evidence-based, research-based, promising or lacking evidence of effectiveness;

                (5) spending data to date; and

                (6) results of evaluations or audits of the pilot project.

          C. The committee, in consultation with the division and the agency, shall review a pilot project's evaluation submitted for an agency and issue its approval or disapproval on or before September 1 following receipt of the evaluation."

     SECTION 2. A new section of Chapter 6, Article 4 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] GOVERNMENT ACCOUNTABILITY EXPENDABLE TRUST.--

          A. The "government accountability expendable trust" is created as a nonreverting fund in the state treasury. The trust shall consist of distributions, appropriations, gifts, grants and donations. Income from investment of the trust shall be credited to the trust. Money in the trust shall be expended only as provided in this section.

          B. On July 1 of each year, a distribution shall be made from the government accountability expendable trust to the government accountability program fund in an amount equal to twenty-five percent of the balance of the trust or three hundred million dollars ($300,000,000), whichever is greater; provided that if the balance of the trust is less than three hundred million dollars ($300,000,000), the balance of the trust shall be distributed.

          C. In addition to the distribution pursuant to Subsection B of this section, money in the government accountability expendable trust may be expended in the event that general fund balances, including all authorized revenues and transfers to the general fund and balances in the general fund operating reserve, will not meet the level of appropriations authorized from the general fund for a fiscal year. In that event, the legislature may appropriate from the government accountability expendable trust to the general fund only in the amount necessary to meet general fund appropriations for that fiscal year and only if the legislature has authorized a transfer from the general fund operating reserve that exhausts that fund balance."

     SECTION 3. A new section of Chapter 6, Article 4 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] GOVERNMENT ACCOUNTABILITY PROGRAM FUND.--The "government accountability program fund" is created as a nonreverting fund in the state treasury. The fund consists of distributions, appropriations, gifts, grants, donations and income from investment of the fund. The department of finance and administration shall administer the fund. Money in the fund is subject to appropriation by the legislature to fund pilot projects to be evaluated pursuant to Section 1 of this 2024 act; provided that money appropriated to fund a pilot project shall be provided in equal amounts for each year the pilot project is funded by the appropriation. Expenditures from the fund shall be by warrant of the secretary of finance and administration pursuant to vouchers signed by the secretary of finance and administration or the secretary's authorized representative."

     SECTION 4. Section 6-4-4 NMSA 1978 (being Laws 1987, Chapter 347, Section 4, as amended) is amended to read:

     "6-4-4. [TRANSFERS BETWEEN GENERAL FUND RESERVES] TRANSFER FROM THE GENERAL FUND TO THE GOVERNMENT ACCOUNTABILITY EXPENDABLE TRUST--TRANSFER FROM THE TAX STABILIZATION RESERVE TO THE GENERAL FUND OPERATING RESERVE.--

          A. [For the seventy-seventh and subsequent fiscal years] If the revenues of the general fund exceed the total of appropriations from the general fund, the excess revenue shall be transferred to the general fund operating reserve; provided that if the sum of the excess revenue plus the balance in the general fund operating reserve prior to the transfer is greater than eight percent of the aggregate recurring appropriations from the general fund for the previous fiscal year, then an amount equal to the smaller of either the amount of the excess revenue or the difference between the sum and eight percent of the aggregate recurring appropriations from the general fund for the previous fiscal year shall be transferred to the [tax stabilization reserve] government accountability expendable trust.

          B. If the balance in the general fund operating reserve as of the end of a fiscal year is less than one percent of aggregate general fund appropriations for that fiscal year, as determined by the department of finance and administration, then an amount equal to the smaller of either one percent of aggregate general fund appropriations for that fiscal year or the amount necessary to bring the balance of the general fund operating reserve to one percent of aggregate general fund appropriations for that fiscal year shall be transferred from the tax stabilization reserve to the general fund operating reserve."

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