0001| SENATE BILL 223
|
0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
|
0003| INTRODUCED BY
|
0004| JOSEPH A. FIDEL
|
0005|
|
0006|
|
0007|
|
0008|
|
0009|
|
0010| AN ACT
|
0011| RELATING TO PUBLIC MONEY; AUTHORIZING THE STATE TREASURER TO
|
0012| ISSUE TAX AND REVENUE ANTICIPATION NOTES; MAKING AN
|
0013| APPROPRIATION; DECLARING AN EMERGENCY.
|
0014|
|
0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
|
0016| Section 1. SHORT TITLE.--This act may be cited as the
|
0017| "Short-Term Cash Management Act".
|
0018| Section 2. PURPOSE.--The purpose of the Short-Term Cash
|
0019| Management Act is to ensure an orderly and uninterrupted flow
|
0020| of money to the general fund by anticipating the receipt of
|
0021| taxes and other state revenues into the general fund and
|
0022| authorizing the state treasurer to issue short-term notes
|
0023| payable from those anticipated receipts.
|
0024| Section 3. DEFINITIONS.--As used in the Short-Term Cash
|
0025| Management Act:
|
0001| A. "anticipated revenue" means tax receipts and
|
0002| other state revenues that are to be credited by law to the
|
0003| general fund;
|
0004| B. "anticipation notes" means state of New Mexico
|
0005| tax and revenue anticipation notes; and
|
0006| C. "general fund" means the fund created in Section
|
0007| 6-4-2 NMSA 1978 to which the state treasurer credits all
|
0008| revenue not otherwise allocated by law.
|
0009| Section 4. STATE TREASURER CERTIFICATION.--Whenever the
|
0010| state treasurer deems it necessary to issue anticipation notes
|
0011| pursuant to the Short-Term Cash Management Act, the state
|
0012| treasurer shall certify that:
|
0013| A. the issuance of anticipation notes is necessary
|
0014| to regulate cash flow in the general fund;
|
0015| B. the issuance of anticipation notes will not have
|
0016| an adverse impact on the general fund;
|
0017| C. the issuance of anticipation notes is in the
|
0018| best interest of the state;
|
0019| D. the amount of anticipation notes proposed for
|
0020| issuance is reasonable under existing and anticipated market
|
0021| conditions and complies with the requirements of the Internal
|
0022| Revenue Code of 1986, as amended, to the extent applicable; and
|
0023| E. the payment of all interest and principal on
|
0024| anticipation notes can be made on a timely basis.
|
0025| Section 5. ANTICIPATION NOTES--AUTHORIZATION--STATE BOARD
|
0001| OF FINANCE APPROVAL.--
|
0002| A. In order to anticipate the collection and
|
0003| receipt of anticipated revenue and after certifying the need to
|
0004| issue anticipation notes as provided in the Short-Term Cash
|
0005| Management Act, the state treasurer may issue and sell one or
|
0006| more anticipation notes. The anticipation notes shall mature
|
0007| not later than the end of the fiscal year in which the
|
0008| anticipation notes are issued and shall bear interest at rates
|
0009| permitted in the Public Securities Act.
|
0010| B. The state treasurer shall pledge the anticipated
|
0011| revenue to secure the payment of the principal of and interest
|
0012| on the anticipation notes.
|
0013| C. Anticipation notes may be sold at a public or
|
0014| negotiated sale at, above or below par.
|
0015| D. Anticipation notes may be issued in an aggregate
|
0016| principal amount not to exceed fifty percent of the anticipated
|
0017| revenue that the state treasurer anticipates will be collected
|
0018| by the state and credited to the general fund in the fiscal
|
0019| year in which the notes are issued and will be available to pay
|
0020| the principal of and interest on the anticipation notes.
|
0021| E. Anticipation notes shall be issued by the state
|
0022| treasurer pursuant to the Short-Term Cash Management Act only
|
0023| upon approval by the state board of finance at a public meeting
|
0024| held prior to the delivery of the anticipation notes.
|
0025| Section 6. SOURCE OF REPAYMENT.--Principal of and
|
0001| interest on anticipation notes shall be payable solely from
|
0002| that portion of anticipated revenue pledged for that purpose
|
0003| and collected by the state for credit to the general fund in
|
0004| the fiscal year in which the anticipation notes are issued.
|
0005| Section 7. ANTICIPATION NOTES DEBT SERVICE FUND CREATED.-
|
0006| -The "anticipation notes debt service fund" is created in the
|
0007| state treasury. Upon collection of anticipated revenue that
|
0008| has been pledged for the payment of principal of and interest
|
0009| on the outstanding anticipation notes, the state treasurer
|
0010| shall deposit into the fund that portion of the pledged revenue
|
0011| necessary for payment of the principal of and interest on
|
0012| anticipation notes. Anticipated revenue in the fund is
|
0013| appropriated to the state treasurer for the payment of
|
0014| anticipation notes with interest at maturity. Money in the
|
0015| fund shall be held for the benefit of the registered owner or
|
0016| owners of the anticipation notes and for no other purpose.
|
0017| Section 8. PROCEEDS FROM ANTICIPATION NOTES--ANTICIPATION
|
0018| NOTES FUND CREATED--INVESTMENT.--The "anticipation notes fund"
|
0019| is created in the state treasury. All proceeds from the sale
|
0020| of anticipation notes shall be deposited in the fund. The
|
0021| state treasurer shall invest the proceeds of anticipation notes
|
0022| as provided in Section 6-10-10 NMSA 1978.
|
0023| Section 9. ANTICIPATION NOTES--LEGAL INVESTMENT--TAX
|
0024| EXEMPTION.--Anticipation notes issued by the state treasurer
|
0025| pursuant to the Short-Term Cash Management Act are legal and
|
0001| authorized investments for banks, savings banks, trust
|
0002| companies, savings and loan associations, insurance companies,
|
0003| fiduciaries, trustees and guardians and for the sinking funds
|
0004| of political subdivisions, departments, institutions and
|
0005| agencies of the state. Anticipation notes are sufficient
|
0006| security for all deposits of state funds and of all funds of
|
0007| any board in control of public money at the par value of the
|
0008| anticipation notes.
|
0009| Section 11. EXPENSES.--The expenses incurred by the state
|
0010| treasurer related to the issuance and sale of anticipation
|
0011| notes shall be paid out of the proceeds from the sale of the
|
0012| anticipation notes, and all rebate, penalty, interest and other
|
0013| obligations of the state related to the anticipation notes and
|
0014| anticipation notes proceeds under the Internal Revenue Code of
|
0015| 1986, as amended, shall be paid from the earnings on
|
0016| anticipation notes proceeds or any money of the state legally
|
0017| available for such payment.
|
0018| Section 12. STATE TREASURER--DUTY TO MAKE PAYMENTS AND
|
0019| KEEP RECORDS.--The state treasurer shall pay the principal of
|
0020| and interest on outstanding anticipation notes and shall keep a
|
0021| complete register showing the interest paid and principal
|
0022| outstanding on all anticipation notes and such other records as
|
0023| he deems appropriate.
|
0024| Section 13. AUTHORITY FOR ISSUANCE.--The Short-Term Cash
|
0025| Management Act, without reference to any other statute, shall
|
0001| be full authority for the issuance and sale of anticipation
|
0002| notes and shall have all the qualities of investment securities
|
0003| under the Uniform Commercial Code.
|
0004| Section 14. ACTION TO COMPEL PERFORMANCE OF OFFICERS.--
|
0005| Any holder of anticipation notes or any person who is a party
|
0006| in interest may bring an action to enforce and compel the
|
0007| performance of the provisions of the Short-Term Cash Management
|
0008| Act.
|
0009| Section 15. ANTICIPATION NOTES EXEMPT FROM TAXATION.--
|
0010| Anticipation notes are exempt from taxation by the state or any
|
0011| of its political subdivisions.
|
0012| Section 16. ANTICIPATION NOTES NOT A GENERAL OBLIGATION
|
0013| OF THE STATE.--Anticipation notes are not a general obligation
|
0014| of the state, but are payable solely out of anticipated
|
0015| revenues that have been pledged for their payment.
|
0016| Section l7. EMERGENCY.--It is necessary for the public
|
0017| peace, health and safety that this act take effect immediately.
|
0018|
|
0019|
|
0020| FORTY-THIRD LEGISLATURE
|
0021| FIRST SESSION, 1997
|
0022|
|
0023|
|
0024| February 11, 1997
|
0025|
|
0001| Mr. President:
|
0002|
|
0003| Your CORPORATIONS & TRANSPORTATION COMMITTEE, to
|
0004| whom has been referred
|
0005|
|
0006| SENATE BILL 223
|
0007|
|
0008| has had it under consideration and reports same with
|
0009| recommendation that it DO PASS.
|
0010|
|
0011| Respectfully submitted,
|
0012|
|
0013|
|
0014|
|
0015|
|
0016| __________________________________
|
0017| Roman M. Maes, III, Chairman
|
0018|
|
0019|
|
0020|
|
0021| Adopted_______________________ Not
|
0022| Adopted_______________________
|
0023| (Chief Clerk) (Chief Clerk)
|
0024|
|
0025|
|
0001|
|
0002| Date ________________________
|
0003|
|
0004|
|
0005| The roll call vote was 8 For 0 Against
|
0006| Yes: 8
|
0007| No: None
|
0008| Excused: Robinson, Maes
|
0009| Absent: None
|
0010|
|
0011|
|
0012| S0223CT1
|
0013| State of New Mexico
|
0014| House of Representatives
|
0015|
|
0016| FORTY-THIRD LEGISLATURE
|
0017| FIRST SESSION, 1997
|
0018|
|
0019|
|
0020| February 28, 1997
|
0021|
|
0022|
|
0023| Mr. Speaker:
|
0024|
|
0025| Your TAXATION AND REVENUE COMMITTEE, to whom has
|
0001| been referred
|
0002|
|
0003| SENATE BILL 223
|
0004|
|
0005| has had it under consideration and reports same with
|
0006| recommendation that it DO PASS, amended as follows:
|
0007|
|
0008| 1. On page 5, line 9, strike "11" and insert in lieu
|
0009| thereof "10".
|
0010|
|
0011| 2. Renumber the succeeding sections accordingly.
|
0012|
|
0013| 3. On page 6, between lines 15 and 16, add the following
|
0014| new section:
|
0015|
|
0016| "Section 16. DELAYED REPEAL.--The Short-Term Cash
|
0017| Management Act is repealed effective June 30, 1999.".
|
0018|
|
0019| 4. Renumber the succeeding section accordingly.,
|
0020|
|
0021|
|
0022| and thence referred to the APPROPRIATIONS AND FINANCE
|
0023| COMMITTEE.
|
0024|
|
0025| Respectfully submitted,
|
0001|
|
0002|
|
0003|
|
0004|
|
0005| Jerry W. Sandel, Chairman
|
0006|
|
0007|
|
0008| Adopted Not Adopted
|
0009|
|
0010| (Chief Clerk) (Chief Clerk)
|
0011|
|
0012| Date
|
0013|
|
0014| The roll call vote was 8 For 0 Against
|
0015| Yes: 8
|
0016| Excused: Crook, Gonzales, Lovejoy, Ryan, Sandoval
|
0017| Absent: None
|
0018|
|
0019|
|
0020| .117971.1
|
0021| G:\BILLTEXT\BILLW_97\S0223 State of New Mexico
|
0022| House of Representatives
|
0023|
|
0024| FORTY-THIRD LEGISLATURE
|
0025| FIRST SESSION, 1997
|
0001|
|
0002|
|
0003| March 10, 1997
|
0004|
|
0005|
|
0006| Mr. Speaker:
|
0007|
|
0008| Your APPROPRIATIONS AND FINANCE COMMITTEE, to
|
0009| whom has been referred
|
0010|
|
0011| SENATE BILL 223, as amended
|
0012|
|
0013| has had it under consideration and reports same with
|
0014| recommendation that it DO PASS.
|
0015|
|
0016| Respectfully submitted,
|
0017|
|
0018|
|
0019|
|
0020|
|
0021| Max Coll, Chairman
|
0022|
|
0023|
|
0024| Adopted Not Adopted
|
0025|
|
0001| (Chief Clerk) (Chief Clerk)
|
0002|
|
0003| Date
|
0004|
|
0005| The roll call vote was 11 For 1 Against
|
0006| Yes: 11
|
0007| No: Bird
|
0008| Excused: Buffett, Marquardt, Pearce, Saavedra, Watchman
|
0009| Absent: None
|
0010|
|
0011|
|
0012| G:\BILLTEXT\BILLW_97\S0223
|
0013| FORTY-THIRD LEGISLATURE
|
0014| FIRST SESSION
|
0015|
|
0016| March 12, 1997
|
0017|
|
0018|
|
0019| HOUSE FLOOR AMENDMENT number __1____ to SENATE BILL 223, as amended
|
0020|
|
0021| Amendment sponsored by Representative Luciano "Lucky" Varela
|
0022|
|
0023|
|
0024| 1. On page 3, line 14, after the period insert "Any negotiated
|
0025| sale shall be made with one or more investment bankers whose services
|
0001| are obtained through a competitive proposal process. For any sale, the
|
0002| state treasurer shall also procure through a competitive proposal
|
0003| process the services of any financial adviser and bond counsel, unless
|
0004| the state treasurer contracts with the state board of finance to employ
|
0005| the services of the board's financial adviser or bond counsel under
|
0006| contracts the board may have, from time to time, with those
|
0007| professionals.".
|
0008|
|
0009|
|
0010|
|
0011|
|
0012| ___________________________
|
0013| Luciano "Lucky" Varela
|
0014|
|
0015|
|
0016|
|
0017| Adopted ___________________ Not Adopted ___________________________
|
0018| (Chief Clerk) (Chief Clerk)
|
0019|
|
0020|
|
0021| Date ________________
|