State of New Mexico House of Representatives FORTY-SECOND LEGISLATURE SECOND SESSION, 1996 February 9, 1996 Mr. Speaker: Your TAXATION AND REVENUE COMMITTEE, to whom has been referred HOUSE BILL 730 has had it under consideration and reports same with recommendation that it DO PASS, amended as follows: 1. On page 1, line 13, after the semicolon insert "AMENDING AND ENACTING CERTAIN SECTIONS OF THE NMSA 1978;". 2. On page 1, line 19, after "sell" insert "in installments or at one time". 3. On page 1, line 22, strike ", furnishing". 4. On page 2, line 6, after "to" strike "the issuance and sale of". 5. On page 2, line 18, after "to" strike "the issuance of". 6. On page 3, between lines 3 and 4, insert the following new subsection: "E. The New Mexico finance authority may issue and sell revenue bonds authorized by this section when the legislative council service certifies the need for issuance of the bonds. The net proceeds from the sale of the bonds are appropriated to the legislative council service for the purposes described in Subsection A of this section.". 7. Reletter the succeeding subsection accordingly. 8. On page 3, between lines 9 and 10, insert the following new sections: "Section 2. Section 7-27-5 NMSA 1978 (being Laws 1983, Chapter 306, Section 7, as amended) is amended to read: "7-27-5. INVESTMENT OF SEVERANCE TAX PERMANENT FUND.--The severance tax permanent fund shall be invested for two general purposes, to provide income to the fund and to stimulate the economy of New Mexico, preferably on a continuing basis. The investments in Sections 7-27-5.1 and 7-27-5.6 NMSA 1978 shall be those intended to provide maximum income to the fund and shall be referred to as the market rate investments. The investments permitted in Sections 7-27-5.3 through 7-27-5.5, [7-27-5.7] 7-27-5.13 through 7-27-5.17, [and 7-27-5.21] 7-27-5.22 and 7-27-23 NMSA 1978 shall be those intended to stimulate the economy of New Mexico and shall be referred to as the differential rate investments. The prudent man rule shall be applied to the market rate investments, and the state investment officer shall keep separate records of the earnings of the market rate investments. All transactions entered into on or after July 1, 1991 shall be accounted for in accordance with generally accepted accounting principles." Section 3. A new section of the Severance Tax Bonding Act, Section 7-27-5.23 NMSA 1978, is enacted to read: "7-27-5.23. [NEW MATERIAL] SEVERANCE TAX PERMANENT FUND--INVESTMENT IN OBLIGATIONS ISSUED FOR STATE CAPITOL BUILDINGS AND RENOVATIONS.--Subject to the approval of the state investment council, the severance tax permanent fund may be invested in revenue bonds issued by the New Mexico finance authority for state capitol buildings and relocation-associated renovations in the state capitol. The amount invested shall not exceed eighteen million dollars ($18,000,000)." Section 4. Section 15-3-24 NMSA 1978 (being Laws 1972, Chapter 74, Section 4, as amended) is amended to read: "15-3-24. CAPITOL BUILDINGS REPAIR FUND--CREATION-- EXPENDITURES.-- A. The "capitol buildings repair fund" is created. To this fund shall be transferred all income, including earnings on investments, derived from lands granted to the state by the United States congress for legislative, executive and judicial public buildings. Two percent of this fund shall be transferred annually to a "state capitol maintenance fund", hereby created, as a special perpetual fund for the upkeep and maintenance of the capitol renovation and capitol grounds. B. The capitol buildings repair fund may be used to repair, remodel and equip capitol buildings and adjacent lands, to repair or replace building machinery and building equipment located in capitol buildings and to contract for options to purchase real estate, such real estate, if purchased, to be put to state use; provided that no more than ten thousand dollars ($10,000) shall be expended for any single option. Any money used for consideration in acquiring an option to purchase real estate shall be applied against the purchase price of the real estate if the option is exercised. No money, except for expenditures for debt service and other obligations related to bonds payable from the capitol buildings repair fund issued by the New Mexico finance authority, shall be expended from the capitol buildings repair fund without authorization of the state board of finance. C. In the event any capital outlay project exceeds authorized project cost by no more than five percent, the state board of finance may authorize the property control division of the general services department to supplement the authorized cost by an allocation not to exceed five percent of the authorized cost from the capitol buildings repair fund to the extent of the unencumbered and unexpended balance of the fund."". 9. Renumber the succeeding section accordingly., and thence referred to the APPROPRIATIONS AND FINANCE COMMITTEE. Respectfully submitted, Jerry W. Sandel, Chairman Adopted Not Adopted (Chief Clerk) (Chief Clerk) Date The roll call vote was 12 For 0 Against Yes: 12 Excused: Gallegos Absent: None .111985.2 H0730TR1