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AN ACT

MAKING GENERAL APPROPRIATIONS AND AUTHORIZING EXPENDITURES FOR

STATE GOVERNMENT.

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

Section 1. SPECIAL APPROPRIATIONS.--The following

amounts are appropriated from the general fund or other funds

as indicated for the purposes specified. Unless otherwise

indicated, the appropriations may be expended in fiscal years

1998 and 1999. Unless otherwise indicated, unexpended or

unencumbered balances of the appropriations remaining at the

end of fiscal year 1999 shall revert to the appropriate fund:

A. one million dollars ($1,000,000) is

appropriated from the general fund to the children, youth and

families department for expenditure in fiscal year 1999 for

contractual services for prevention and intervention services;

B. five million five hundred thousand dollars

($5,500,000) is appropriated from the general fund to the

income support division of the human services department for

expenditure in fiscal year 1999 for expenses related to the

general assistance program;

C. one million seven hundred thousand dollars

($1,700,000) is appropriated from other state funds, including

the county-supported medicaid fund, to the department of

health for expenditure in fiscal year 1999 for costs related

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to the support of primary care facilities, contracts and other

expenses;

D. three hundred fifty thousand dollars ($350,000)

is appropriated from the general fund to the economic

development department for costs related to development,

promotion and planning of the spaceport;

E. the unexpended or unencumbered balance of the

appropriation to the commission on higher education in Laws

1997, Chapter 206, Section 2 for feasibility studies and

implementation of a prepaid tuition program shall not revert

at the end of fiscal year 1998 but may be expended for the

purposes of that section in fiscal year 1999;

F. the following amounts are appropriated from the

general fund to the legislative council service for

expenditure in fiscal year 1999 for the following purposes:

(1) one hundred seventy-five thousand

dollars ($175,000) for phase three of the block boundary

suggestion project in preparation for redistricting after the

next federal decennial census;

(2) three hundred sixty thousand dollars

($360,000) for legislative retirement; and

(3) two hundred fifty-three thousand dollars

($253,000) for a year 2000 compliant data system and other

data processing needs;

G. one million dollars ($1,000,000) is

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appropriated from the general fund to the department of

finance and administration to contract with the New Mexico

mortgage finance authority for weatherization programs;

H. the following amounts are appropriated from the

general fund to the New Mexico office of Indian affairs for

expenditure in fiscal years 1999 and 2000, and any unexpended

or unencumbered balance remaining at the end of fiscal year

2000 shall revert to the general fund:

(1) one hundred seventy-five thousand

dollars ($175,000) to initiate and implement a public policy

program for native American students in conjunction with the

Woodrow Wilson national fellowship foundation; and

(2) five hundred thousand dollars ($500,000)

for a tribal-state community-based education project developed

through a partnership between the state and a pueblo education

consortium to improve the education of Indian students;

I. two hundred thousand dollars ($200,000) is

appropriated from the general fund to the human services

department for expenditure in fiscal year 1999 for food

programs for the homeless and three hundred thousand dollars

($300,000) is appropriated from the general fund to the human

services department for expenditure in fiscal year 1999 to

contract with the New Mexico mortgage finance authority to

provide services to homeless programs statewide;

J. the following amounts are appropriated from the

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general fund to the department of health for expenditure in

fiscal year 1999 for the following purposes:

(1) five hundred thousand dollars ($500,000)

for HIV/AIDS medications and programs;

(2) seven hundred fifty thousand dollars

($750,000) for early intervention for the developmentally

disabled;

(3) eight hundred thousand dollars

($800,000) to carry out the purposes of the Rural Primary

Health Care Act; and

(4) five hundred thousand dollars ($500,000)

for children's health initiatives in the public health

division;

K. nine hundred thousand dollars ($900,000) is

appropriated from the general fund to the health policy

commission for expenditure in fiscal year 1999 for contractual

services;

L. the following amounts are appropriated from the

general fund to the children, youth and families department

for expenditure in fiscal year 1999 for the following

purposes:

(1) four hundred thousand dollars ($400,000)

for families in need of services; and

(2) five hundred thousand dollars ($500,000)

for health services for children not eligible for medicaid;

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M. sixty thousand dollars ($60,000) is

appropriated from the general fund to the crime victims

reparation commission for expenditure in fiscal year 1999 for

a statewide legal help line for victims of domestic violence;

N. the following amounts are appropriated from the

general fund to the state department of public education for

expenditure in fiscal year 1999 for the following purposes:

(1) one million dollars ($1,000,000) to

provide the match for the computers in the schools program;

and

(2) six hundred thousand dollars ($600,000)

for statewide dropout prevention programs;

O. one hundred fifty thousand dollars ($150,000)

is appropriated from the general fund to the commission on

higher education for expenditure in fiscal year 1999 for the

advanced placement program;

P. one hundred thirty-two thousand dollars

($132,000) is appropriated from the general fund to the New

Mexico military institute for the Saunders barracks phase two

construction project;

Q. eighteen million seven hundred ninety-one

thousand four hundred dollars ($18,791,400) is appropriated

from the temporary assistance for needy families block grant

to the human services department to enter into a contract or

memorandum of understanding with the children, youth and

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families department to provide child care to participants as

defined in the New Mexico Works Act. This appropriation to

the human services department supports the interagency

transfer appropriation to the children, youth and families

department in Laws 1998, Chapter 116, Section 4;

R. the unexpended or unencumbered balance of the

appropriation made to the state agency on aging in Laws 1997,

Chapter 33, Section 7 is appropriated to the state agency on

aging for expenditure in fiscal year 1999 for the aging

programs information system;

S. five hundred thousand dollars ($500,000) is

appropriated from the general fund to the state corporation

commission for expenditure in fiscal year 1999 for department

of insurance costs associated with administration of the

Patient Protection Act;

T. two hundred thousand dollars ($200,000) is

appropriated from the general fund to the criminal and

juvenile justice coordinating council for expenditure in

fiscal year 1999 for contractual services; provided that this

appropriation is contingent on the council submitting to the

governor and the department of finance and administration a

long-range plan for the agency that provides specific

information of its future activities and its goals and

objectives;

U. three hundred fifty thousand dollars ($350,000)

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is appropriated from the general fund to the local government

division of the department of finance and administration to

pay unanticipated detention costs of Torrance county; and

V. four hundred thousand dollars ($400,000) is

appropriated from the general fund to the administrative

office of the courts for expenditure in fiscal year 1999 to

provide funding for existing drug courts in the judicial

districts.

Section 2. SUPPLEMENTAL AND DEFICIENCY APPROPRIATIONS.-

-The following amounts are appropriated from the general fund,

or other funds as indicated, for expenditure in fiscal year

1998 for the purposes specified. Disbursement of these

amounts shall be subject to the following conditions:

certification by the agency to the department of finance and

administration and the legislative finance committee that no

other funds are available in fiscal year 1998 for the purpose

specified; and approval by the department of finance and

administration. Any unexpended or unencumbered balances

remaining at the end of fiscal year 1998 shall revert to the

appropriate fund:

A. one hundred ninety-three thousand two hundred

dollars ($193,200) is appropriated to the supreme court for

litigation costs;

B. five thousand four hundred dollars ($5,400) is

appropriated to the fifth judicial district court for judge

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pro tempore services rendered in fiscal year 1997 in the State

v. Lewis water adjudication suit;

C. twenty-three thousand one hundred dollars

($23,100) is appropriated to the ninth judicial district

attorney for litigation costs in the prosecution of a conflict

case for the fifth judicial district attorney;

D. eight thousand seven hundred dollars ($8,700)

is appropriated to the twelfth judicial district attorney for

expert witness fees;

E. eighty-eight thousand dollars ($88,000) is

appropriated to the attorney general for the guardianship

services program;

F. thirty thousand dollars ($30,000) is

appropriated to the state treasurer for personal services and

employee benefits;

G. three million five hundred thousand dollars

($3,500,000) is appropriated to the corrections department for

costs associated with leasing bed space; and

H. five hundred thousand dollars ($500,000) is

appropriated to the secretary of state to defray costs of the

special congressional election.

Section 3. JURY AND WITNESS FEE FUND--APPROPRIATION.--

A. Six hundred thousand dollars ($600,000) is

appropriated from the general fund to the jury and witness fee

fund for expenditure in fiscal year 1998 and subsequent fiscal

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years to carry out the purposes of the fund. The

administrative office of the courts may also expend the cash

balances in the fund as of May 1, 1998 in fiscal year 1998 and

subsequent fiscal years to carry out the purposes of the fund.

Money in the fund shall not be used to repay the fiscal year

1998 state board of finance loan.

B. Four hundred thousand dollars ($400,000) is

appropriated from the general fund to the jury and witness fee

fund for expenditure in fiscal year 1999 and subsequent fiscal

years to carry out the purposes of the fund.

C. Six hundred thousand dollars ($600,000) is

appropriated from the general fund operating reserve to the

department of finance and administration for expenditure in

fiscal year 1999 and subsequent fiscal years as a contingency

fund to pay unanticipated costs of the jury and witness fee

fund when the director of the administrative office of the

courts certifies to the secretary of finance and

administration that there is not enough money in the jury and

witness fee fund to pay current and projected commitments.

Section 4. COMPUTER SYSTEMS ENHANCEMENT FUND

APPROPRIATIONS.--Six million forty-five thousand dollars

($6,045,000) is appropriated from the general fund to the

computer systems enhancement fund for expenditure in fiscal

years 1998 and 1999 for allocations pursuant to the

appropriations in Section 5 of this act.

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Section 5. DATA PROCESSING APPROPRIATIONS.--The

following amounts are appropriated from the computer systems

enhancement fund, or other funds as indicated, for the

purposes specified. Unless otherwise indicated, the

appropriations may be expended in fiscal years 1998 and 1999.

Unless otherwise indicated, any unexpended or unencumbered

balances remaining at the end of fiscal year 1999 shall revert

to the computer systems enhancement fund or other funds as

indicated. The department of finance and administration shall

allocate amounts from the funds for the purposes specified

upon receiving certification and supporting documentation from

the requesting agency that identifies benefits that can be

quantified and nonrecurring costs and recurring costs for the

development and implementation of the proposed system and, for

executive agencies, upon receiving certification from the

chief information officer that identifies compliance with the

information architecture and individual information and

communications systems plans. If the funds are to continue a

project, the documentation shall include certification that

the project is on schedule, all funds previously allocated

have been properly expended and additional funds are required.

The department of finance and administration shall provide a

copy of the certification and all supporting documentation to

the legislative finance committee:

A. three hundred seventy thousand dollars

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($370,000) is appropriated from the educational retirement

fund to the educational retirement board for a year 2000

compliant server, software, hardware, data conversion and

training;

B. four hundred forty-five thousand dollars

($445,000) is appropriated from public defender cash balances

to the public defender for computer equipment, software

purchase and web page development;

C. two hundred fifty thousand dollars ($250,000)

is appropriated from the public employees retirement income

fund to the public employees retirement association for an

investment accounting system;

D. six hundred thousand dollars ($600,000) is

appropriated from cash balances in the regulation and

licensing department to the regulation and licensing

department for a year 2000 compliant boards and commission

system;

E. fourteen thousand dollars ($14,000) is

appropriated from fee income and other revenue of the New

Mexico livestock board to the New Mexico livestock board for

one server, two work stations and database management

software;

F. five hundred thousand dollars ($500,000) is

appropriated from the game protection fund to the department

of game and fish for a client server and computer equipment

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for processing wildlife gaming license and citation

information;

G. seventy-five thousand dollars ($75,000) is

appropriated to the energy, minerals and natural resources

department for upgrading to a year 2000 compliant financial

system;

H. seventy thousand dollars ($70,000) is

appropriated to the New Mexico public utility commission for

year 2000 compliant hardware and software;

I. three million dollars ($3,000,000) is

appropriated to the human services department for the child

support enforcement system;

J. five hundred forty-six thousand dollars

($546,000) is appropriated from the employment security

department fund and two million dollars ($2,000,000) is

appropriated from federal revenue to the labor department for

contractual services to ensure mission critical systems are

year 2000 compliant;

K. two million five hundred thousand dollars

($2,500,000) is appropriated to the corrections department for

procurement of a year 2000 compliant criminal information

management system, financial management system modules,

network hardware and software and related information systems

costs and contractual services; and

L. four hundred thousand dollars ($400,000) is

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appropriated to the state department of public education for a

year 2000 compliant comprehensive accountability system.

Section 6. ADDITIONAL FISCAL YEAR 1998 BUDGET

ADJUSTMENT AUTHORITY.--During fiscal year 1998, subject to

review and approval by the department of finance and

administration, in addition to the budget adjustment authority

granted in Laws 1997, Chapter 33, Section 10 and pursuant to

Sections 6-3-23 through 6-3-25 NMSA 1978:

A. the seventh judicial district attorney may

request that nineteen thousand seven hundred dollars ($19,700)

be transferred from the personal services category to the

operating costs category for expert witness fees;

B. the eighth judicial district attorney may

request that twenty-eight thousand two hundred dollars

($28,200) be transferred from the personal services category

to any other category to cover projected shortfalls;

C. the taxation and revenue department may request

category transfers not to exceed two hundred forty thousand

dollars ($240,000) from the personal services category for

expenses related to the enhanced driver's license program and

telecommunications;

D. the local government division of the department

of finance and administration may request that forty thousand

seven hundred dollars ($40,700) be transferred from the

personal services category to the personal services category

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in the administrative services division of the department of

finance and administration;

E. the general services department may request

division and category transfers necessary to carry out the

transfer of the printing office to the information systems

division;

F. the public defender department may request

transfers from the personal services category to the

contractual services category for contract attorney fees or to

the operating costs category for expert witness fees;

G. the New Mexico state fair may request transfers

from the personal services category to the other costs

category for retirement of debt;

H. the office of the state engineer may request

transfer of an amount not to exceed two hundred ten thousand

dollars ($210,000) from the personal services category to

cover projected deficits in other categories;

I. the New Mexico veterans' center of the

department of health may request transfers from the personal

services category to the contractual services category;

J. the southern New Mexico rehabilitation center

of the department of health may request transfers from the

personal services category to the contractual services

category;

K. the Fort Bayard medical center of the

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department of health may request transfers from the personal

services category to the contractual services category;

L. the public health division of the department of

health may request transfers from the personal services

category to the supplies and materials category or the other

costs category to purchase HIV-AIDS medication;

M. the long-term care and restorative services

division of the department of health may request transfers

from the personal services category to the contractual

services category in the medical fragile waiver to reduce the

number of individuals on the waiting list;

N. the department of health may request that three

hundred eighty thousand dollars ($380,000) be transferred from

the personal services category to other categories in the

long-term care and restorative services division to settle

payment for additional costs of treating outlier clients;

seven hundred fifty thousand dollars ($750,000) be transferred

from the personal services category to other categories in the

long-term care and restorative services division to resolve

outstanding accounts payable problems; and two hundred fifty

thousand dollars ($250,000) be transferred from the personal

services category to other categories in the long-term care

and restorative services division to cover "Jackson" case

legal fees;

O. the New Mexico veterans' service commission may

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request transfer of an amount not to exceed seventeen thousand

dollars ($17,000) from the personal services category to cover

projected deficits in other categories;

P. the children, youth and families department may

request transfers from the personal services category in

amounts not to exceed one million three hundred thousand

dollars ($1,300,000) for costs related to child care, foster

care, adoption and attendant care and for costs related to

residents in and maintenance of facilities under its control;

Q. the adult probation and parole division of the

corrections department may request that three hundred sixteen

thousand dollars ($316,000) be transferred from the personal

services category to other categories for additional costs

associated with housing parole violators in county detention

centers;

R. the adult institutions division of the

corrections department may request that one hundred fifty

thousand dollars ($150,000) be transferred from the personal

services category to other categories to cover projected

deficits in the institutions;

S. the corrections department may request

transfers from the personal services category to the

contractual services category for the operations of the New

Mexico women's correctional facility. The corrections

department is specifically authorized to exceed the limit for

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payments to that facility provided in the General

Appropriation Act of 1997;

T. the department of public safety may request

category transfers from the personal services category in an

amount not to exceed four hundred thousand dollars ($400,000)

for costs associated with recruit school for additional state

police officers; and

U. the state highway and transportation department

may request thirty-eight million six hundred sixty thousand

three hundred dollars ($38,660,300) in federal funds and a

matching amount of four million seven hundred eighty-five

thousand six hundred dollars ($4,785,600) in state road fund

cash balances to increase the budget for the federal

construction program.

Section 7. CERTAIN FISCAL YEAR 1999 BUDGET ADJUSTMENTS

AUTHORIZED.--

A. As used in this section:

(1) "agency" means an office, department,

agency, institution, board, bureau, commission, court,

district attorney, council or committee of state government;

(2) "budget category" means an item or an

aggregation of related items that represents the object of an

appropriation. Budget categories include personal services,

employee benefits, travel, maintenance and repairs, supplies

and materials, contractual services, operating costs, other

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costs, capital outlay, out-of-state travel and other financing

uses;

(3) "budget increase" means an approved

increase in expenditures by an agency or division from a

specific source;

(4) "category transfer" means an approved

transfer of funds from one budget category to another budget

category, provided that a category transfer does not include a

transfer of funds between divisions;

(5) "division" means an organizational unit

within an agency that is the recipient of an appropriation;

(6) "division transfer" means an approved

transfer of funds from one division of an agency to another

division of that agency, provided that the annual cumulative

effect of division transfers shall not increase or decrease

the appropriation to any division by more than seven and one-

half percent;

(7) "expenditures" means costs, expenses,

encumbrances and other financing uses, other than refunds

authorized by law, recognized in accordance with generally

accepted accounting principles for the legally authorized

budget amounts and budget period;

(8) "federal funds" means any payments by

the United States government to state government or agencies

except those payments made in accordance with the federal

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Mineral Lands Leasing Act;

(9) "interagency transfers" means revenue,

other than internal service funds, legally transferred from

one agency to another;

(10) "internal service funds" means:

(a) revenue transferred to an agency for

the financing of goods or services to another agency on a

cost-reimbursement basis; and

(b) unencumbered balances in agency

internal service fund accounts;

(11) "other state funds" means:

(a) unencumbered, nonreverting balances

in agency accounts, other than in internal service funds

accounts;

(b) all revenue available to agencies

from sources other than the general fund, internal service

funds, interagency transfers and federal funds; and

(c) all revenue, the use of which is

restricted by statute or agreement;

(12) "program" means a set of activities

undertaken in accordance with a plan of action and organized

to realize clearly defined, measurable goals and objectives;

(13) "revenue" means all money received by

an agency from sources external to that agency, net of refunds

and other correcting transactions, other than from issue of

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debt, liquidation of investments or as agent or trustee for

other governmental entities or private persons;

(14) "subprogram" means a more narrowly

defined part of a set of activities undertaken in accordance

with a plan of action and organized to realize clearly

defined, measurable goals and objectives; and

(15) "unforeseen federal funds" means a

source of federal funds or an increased amount of federal

funds that could not have been reasonably anticipated or known

during the second session of the forty-third legislature and,

therefore, could not have been requested by an agency or

appropriated by the legislature.

B. Pursuant to Sections 6-3-23 through 6-3-25 NMSA

1978, the following agencies or divisions are specifically

authorized to request the specified budget adjustments during

fiscal year 1999:

(1) the legislative council service may

request category transfers;

(2) the legislative finance committee may

request category transfers;

(3) the senate chief clerk may request

category transfers;

(4) the house chief clerk may request

category transfers;

(5) the legislative education study

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committee may request category transfers;

(6) the legislative maintenance department

may request category transfers;

(7) the legislature may request category

transfers;

(8) the supreme court law library may

request category transfers;

(9) the New Mexico compilation commission

may request category transfers;

(10) the judicial standards commission may

request category transfers;

(11) the court of appeals may request

category transfers;

(12) the supreme court may request category

transfers;

(13) the administrative office of the courts

may request budget increases from other state funds and

internal service funds/interagency transfers and may request

category transfers;

(14) the supreme court building commission

may request category transfers;

(15) the jury and witness fee fund may

request category transfers;

(16) each district court may request budget

increases from other state funds and internal service

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funds/interagency transfers and may request category

transfers;

(17) the Bernalillo county metropolitan

court may request budget increases from other state funds and

may request category transfers;

(18) each district attorney may request

budget increases from other state funds and internal service

funds/interagency transfers and may request category

transfers;

(19) the administrative office of the

district attorneys may request category transfers;

(20) the attorney general may request

transfers from the travel, maintenance and repairs, supplies

and materials, contractual services, operating costs, other

costs, capital outlay, out-of-state travel or other financing

uses category to any other category;

(21) the state auditor may request category

transfers;

(22) the taxation and revenue department may

request transfers from the travel, maintenance and repairs,

supplies and materials, contractual services, operating costs,

other costs, capital outlay, out-of-state travel or other

financing uses category to any other category;

(23) the state investment council may

request budget increases from other state funds and internal

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service funds/interagency transfers up to two million dollars

($2,000,000) for investment manager fees and custody fees;

provided that this amount may be exceeded if the department of

finance and administration approves a certified request from

the state investment council that additional increases from

other state funds are required for increased management fees

and custody fees derived from asset growth and performance.

The state investment council may request transfers from the

travel, maintenance and repairs, supplies and materials,

contractual services, operating costs, other costs, capital

outlay, out-of-state travel or other financing uses category

to any other category except that money appropriated for

investment manager fees in the contractual services category

shall not be transferred;

(24) the department of finance and

administration may request budget increases from internal

service funds/interagency transfers for the fiscal agent

contract and may request transfers from the travel,

maintenance and repairs, supplies and materials, contractual

services, operating costs, other costs, capital outlay, out-

of-state travel or other financing uses category to any other

category;

(25) the public school insurance authority

may request category transfers;

(26) the retiree health care authority may

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request category transfers;

(27) the general services department may

request transfers from the travel, maintenance and repairs,

supplies and materials, contractual services, operating costs,

other costs, capital outlay, out-of-state travel or other

financing uses category to any other category;

(28) the educational retirement board may

request budget increases up to one million five hundred

thousand dollars ($1,500,000) for manager fees and custody

fees; provided that this amount may be exceeded if the

department of finance and administration approves a certified

request from the educational retirement board that additional

increases from other state funds are required for increased

management fees and custody fees derived from asset growth and

performance. The educational retirement board may request

category transfers, except that funds authorized for

investment manager fees within the contractual services

category of the administrative division and for custody

services within the other costs category of the administrative

division shall not be transferred;

(29) the criminal and juvenile justice

coordinating council may request category transfers;

(30) the public defender department may

request up to one million dollars ($1,000,000) in budget

increases from cash balances for operating expenses, contracts

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and automation and may request transfers from the travel,

maintenance and repairs, supplies and materials, contractual

services, operating costs, other costs, capital outlay, out-

of-state travel or other financing uses category to any other

category;

(31) the governor may request category

transfers;

(32) the office on information and

communication management may request category transfers;

(33) the lieutenant governor may request

category transfers;

(34) the public employees retirement

association may request other state funds up to three million

five hundred thousand dollars ($3,500,000) for investment

manager fees and custody fees; provided that this amount may

be exceeded if the department of finance and administration

approves a certified request from the public employees

retirement association that additional increases from other

state funds are required for increased management fees and

custody fees derived from asset growth and performance. The

public employees retirement association may request transfers

from the travel, maintenance and repairs, supplies and

materials, contractual services, operating costs, other costs,

capital outlay, out-of-state travel or other financing uses

category to any other category, except that funds authorized

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for investment manager fees within the contractual services

category of the administrative division and for custody

services within the other costs category of the administrative

division shall not be transferred;

(35) the maintenance division of the public

employees retirement association may request budget increases

from other state funds to meet the emergencies or unexpected

physical plant failures that might affect the health and

safety of workers;

(36) the state commission of public records

may request category transfers;

(37) the secretary of state may request

category transfers;

(38) the personnel board may request

category transfers;

(39) the public employee labor relations

board may request category transfers;

(40) the state treasurer may request

category transfers;

(41) the board of examiners for architects

may request category transfers;

(42) the border authority may request

category transfers;

(43) the tourism department may request

transfers from the travel, maintenance and repairs, supplies

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and materials, contractual services, operating costs, other

costs, capital outlay, out-of-state travel or other financing

uses category to any other category;

(44) the New Mexico magazine division of the

tourism department may request budget increases from other

state funds for earnings from sales;

(45) the economic development department may

request transfers from the travel, maintenance and repairs,

supplies and materials, contractual services, operating costs,

other costs, capital outlay, out-of-state travel or other

financing uses category to any other category;

(46) the regulation and licensing department

may request transfers from the travel, maintenance and

repairs, supplies and materials, contractual services,

operating costs, other costs, capital outlay, out-of-state

travel or other financing uses category to any other category;

(47) the twenty-seven boards and commissions

under the administration of the regulation and licensing

department, the real estate recovery fund, the barbers and

cosmetologists tuition recovery fund and the securities

education and training fund may request category transfers;

(48) the state corporation commission may

request transfers from the travel, maintenance and repairs,

supplies and materials, contractual services, operating costs,

other costs, capital outlay, out-of-state travel or other

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financing uses category to any other category;

(49) the public regulation commission may

request category transfers;

(50) the New Mexico board of medical

examiners may request category transfers;

(51) the board of nursing may request

category transfers;

(52) the state fair commission may request

transfers from the travel, maintenance and repairs, supplies

and materials, contractual services, operating costs, other

costs, capital outlay, out-of-state travel or other financing

uses category to any other category;

(53) the state board of registration for

professional engineers and surveyors may request category

transfers;

(54) the state racing commission may request

category transfers;

(55) the New Mexico apple commission may

request category transfers;

(56) the board of veterinary medicine may

request category transfers;

(57) the bicycle racing commission may

request category transfers;

(58) the office of cultural affairs may

request budget increases from internal services

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funds/interagency transfers for contract archaeology and may

request transfers from the travel, maintenance and repairs,

supplies and materials, contractual services, operating costs,

other costs, capital outlay, out-of-state travel or other

financing uses category to any other category;

(59) the New Mexico livestock board may

request category transfers;

(60) the department of game and fish may

request budget increases from internal services

funds/interagency transfers for emergencies and may request

transfers from the travel, maintenance and repairs, supplies

and materials, contractual services, operating costs, other

costs, capital outlay, out-of-state travel or other financing

uses category to any other category;

(61) the endangered species program may

request category transfers;

(62) the energy, minerals and natural

resources department may request transfers from the travel,

maintenance and repairs, supplies and materials, contractual

services, operating costs, other costs, capital outlay, out-

of-state travel or other financing uses category to any other

category;

(63) the oil conservation division of the

energy, minerals and natural resources department may request

budget increases from the oil and gas reclamation fund to

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close abandoned wells in the oil patch;

(64) the forestry division and the state

parks division of the energy, minerals and natural resources

department may request budget increases from the New Mexico

youth conservation corps fund for projects approved by the New

Mexico youth conservation corps commission;

(65) the commissioner of public lands may

request budget increases from other state funds and may

request transfers from the travel, maintenance and repairs,

supplies and materials, contractual services, operating costs,

other costs, capital outlay, out-of-state travel or other

financing uses category to any other category;

(66) the state engineer shall not request

over one million dollars ($1,000,000) in the aggregate in

fiscal year 1999 in budget increases from other state funds;

(67) the state engineer may request

transfers from the travel, maintenance and repairs, supplies

and materials, contractual services, operating costs, other

costs, capital outlay, out-of-state travel or other financing

uses category to any other category;

(68) the New Mexico public utility

commission may request category transfers;

(69) the organic commodity commission may

request category transfers;

(70) the commission on the status of women

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may request budget increases from other state funds for

statutorily mandated recognition programs for women and may

request category transfers;

(71) the commission for deaf and hard-of-

hearing persons may request category transfers;

(72) the Martin Luther King, Jr. commission

may request category transfers;

(73) the commission for the blind may

request transfers from the travel, maintenance and repairs,

supplies and materials, contractual services, operating costs,

other costs, capital outlay, out-of-state travel or other

financing uses category to any other category;

(74) the New Mexico office of Indian affairs

may request category transfers;

(75) the state agency on aging may request

transfers from the travel, maintenance and repairs, supplies

and materials, contractual services, operating costs, other

costs, capital outlay, out-of-state travel or other financing

uses category to any other category;

(76) the human services department may

request transfers from the travel, maintenance and repairs,

supplies and materials, contractual services, operating costs,

other costs, capital outlay, out-of-state travel or other

financing uses category to any other category;

(77) the labor department may request

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transfers from the travel, maintenance and repairs, supplies

and materials, contractual services, operating costs, other

costs, capital outlay, out-of-state travel or other financing

uses category to any other category;

(78) the workers' compensation

administration may request transfers from the travel,

maintenance and repairs, supplies and materials, contractual

services, operating costs, other costs, capital outlay, out-

of-state travel or other financing uses category to any other

category;

(79) the division of vocational

rehabilitation of the state department of public education may

request transfers from the travel, maintenance and repairs,

supplies and materials, contractual services, operating costs,

other costs, capital outlay, out-of-state travel or other

financing uses category to any other category;

(80) the governor's committee on concerns of

the handicapped may request category transfers;

(81) the developmental disabilities planning

council may request category transfers;

(82) the miners' hospital of New Mexico may

request budget increases from other state funds to operate the

hospital and may request transfers from the travel,

maintenance and repairs, supplies and materials, contractual

services, operating costs, other costs, capital outlay, out-

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of-state travel or other financing uses category to any other

category;

(83) the department of health may request

budget increases from other state funds and internal service

funds/interagency transfers for facilities and institutions,

including laboratories; to maintain adequate services to

clients; to maintain the buildings and grounds of the former

Los Lunas medical center; and to fund investigations pursuant

to the Caregivers Screening Act. The department may request

transfers from the travel, maintenance and repairs, supplies

and materials, contractual services, operating costs, other

costs, capital outlay, out-of-state travel or other financing

uses category to any other category;

(84) the department of environment may

request budget increases from other state funds to budget

responsible party payments, from the corrective action fund to

pay claims and from the hazardous waste emergency fund to meet

emergencies and may request transfers from the travel,

maintenance and repairs, supplies and materials, contractual

services, operating costs, other costs, capital outlay, out-

of-state travel or other financing uses category to any other

category;

(85) the office of the natural resources

trustee may request budget increases from other state funds

for court settlements to restore natural resource damage in

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accordance with court orders and from internal service

funds/interagency transfers and may request category

transfers;

(86) the New Mexico health policy commission

may request category transfers;

(87) the New Mexico veterans' service

commission may request category transfers;

(88) the children, youth and families

department may request transfers from the travel, maintenance

and repairs, supplies and materials, contractual services,

operating costs, other costs, capital outlay, out-of-state

travel or other financing uses category to any other category;

(89) the department of military affairs may

request transfers from the travel, supplies and materials,

contractual services, other costs, capital outlay, out-of-

state travel or other financing uses category to any other

category;

(90) the crime stoppers commission may

request category transfers;

(91) the parole board may request category

transfers;

(92) the juvenile parole board may request

category transfers;

(93) the corrections department may request

transfers from the travel, maintenance and repairs, supplies

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and materials, contractual services, operating costs, other

costs, capital outlay, out-of-state travel or other financing

uses category to any other category;

(94) the construction industries division of

the corrections department may request budget increases from

internal service funds/interagency transfers;

(95) the crime victims reparation commission

may request category transfers;

(96) the department of public safety may

request budget increases from other state funds for disaster

declarations and from internal service funds/interagency

transfers, excluding state forfeitures and forfeiture

balances, and may request transfers from the travel,

maintenance and repairs, supplies and materials, contractual

services, operating costs, other costs, capital outlay, out-

of-state travel or other financing uses category to any other

category;

(97) the department of public safety may

request division transfers of up to one hundred eighteen

thousand dollars ($118,000) from any division to the special

investigations division for the operation of the crime

stoppers commission;

(98) upon the federal Intermodal Surface

Transportation Efficiency Act reauthorization, the state

highway and transportation department may request budget

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increases from the unbudgeted revenue in the state road fund

for the road betterment division in an amount necessary to

maximize the use of federal funds;

(99) except as allowed in Paragraph (98) of

this subsection, the state highway and transportation

department shall not request budget increases from the state

road fund to match federal funds except in the transportation

programs division and the transportation planning division;

(100) except as allowed in Paragraph (98)

and (99) of this subsection, the state highway and

transportation department shall not request budget increases

except from the local government road fund, beautification

fund, aviation fund, transportation fund and rubberized

asphalt fund;

(101) the state highway and transportation

department may request transfers from the travel, maintenance

and repairs, supplies and materials, contractual services,

operating costs, other costs, capital outlay, out-of-state

travel or other financing uses category to any other category;

(102) the state department of public

education may request budget increases for the instructional

materials fund, the public school capital outlay fund and the

public school energy efficiency fund;

(103) the state department of public

education may request transfers from the travel, maintenance

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and repairs, supplies and materials, contractual services,

operating costs, other costs, capital outlay, out-of-state

travel or other financing uses category to any other category;

and

(104) the commission on higher education may

request category transfers.

C. The department of military affairs, the

department of public safety and the energy, minerals and

natural resources department may request budget increases as

required by an executive order declaring a disaster or

emergency.

D. Pursuant to Sections 6-3-23 through 6-3-25 NMSA

1978, agencies whose revenue from unforeseen federal funds,

from state board of finance loans, from revenue appropriated

by other acts of the legislature, or from gifts, grants,

donations, bequests, insurance settlements, refunds, or

payments into revolving funds exceed specifically appropriated

amounts may request budget increases from the state budget

division. If approved by the state budget division, such

money is appropriated. In approving a budget increase from

unforeseen federal funds, the director of the state budget

division shall advise the legislative finance committee as to

the source of the federal funds and the source and amount of

any matching funds required.

E. To foster efficiency, effectiveness and

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accountability of state government, the legislative finance

committee shall study budget adjustment procedures, use of

authority, reporting, constitutional matters, statutory

authority and other issues related to budget adjustments

during the 1998 interim and report its findings and

recommendations to the first session of the forty-fourth

legislature.

The legislative council service shall study

constitutional and legal issues involved in the use of joint

powers agreements between state agencies and shall report its

findings and recommendations to the first session of the

forty-fourth legislature. The legislative finance committee

shall cooperate with the legislative council service as

needed.

Section 8. BUDGET REVIEW AND ADJUSTMENT PILOT

PROJECT.--

A. The state budget division and the legislative

finance committee shall conduct a joint executive-legislative

"budget review and adjustment pilot project" involving select

executive agencies that is designed to provide the executive

and legislature with the ability to monitor and analyze the

existing budget adjustment procedures and to strengthen the

accountability of the budget adjustment request process. The

pilot shall be structured by the state budget division and the

legislative finance committee so as to provide the executive

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and the legislature with the necessary information and tools

to effectively evaluate expenditures for necessary government

functions and to provide long-range stewardship of state

assets.

B. The pilot agencies are the taxation and revenue

department, the general services department, the state fair,

the human services department, the department of health, the

children, youth and families department, the corrections

department, the road betterment division of the state highway

and transportation department, the state investment council,

the educational retirement board and the public employees

retirement association.

C. The pilot project shall establish the mechanism

for budget increases or budget transfers of pilot agencies,

including a procedure for certification of the need for an

increase or transfer. In addition to the procedures provided

in Sections 6-3-23 through 6-3-25 NMSA 1978 for request and

approval of a budget adjustment, budget increases or budget

transfers allowed in this section for the pilot agencies are

subject to the conditions and procedures provided in

Subsections D and E of this section.

D. As a condition precedent to an approval by the

department of finance and administration of a budget increase

or budget transfer for a pilot agency, the department shall

certify to the legislative finance committee that a request

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meets the following conditions:

(1) the agency is not requesting budget

increase authority or transfer authority to fund a purpose or

program that has not been approved by the legislature for that

agency;

(2) the agency is not requesting an

expansion to fund a program change that was not approved by

the legislature;

(3) the agency certifies that an emergency

or a serious change in circumstance exists that requires

immediate funding; and

(4) the agency is not attempting, either

directly or indirectly, to delegate its powers and duties.

E. Upon receipt of the certification by the

department of finance and administration that a budget

increase or transfer request pursuant to the pilot project

meets the conditions set out in Subsection D of this section,

the legislative finance committee may raise objections to the

certification within thirty days of receipt of the

certification. If no objections are raised by the legislative

finance committee within that time, the committee is deemed to

have concurred with the certification by the department. If

the legislative finance committee raises objections to the

certification, it shall attempt to resolve the issues with the

state budget division pursuant to the procedures developed for

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the pilot project. The legislative finance committee may hold

hearings on its objections to any certification. If the

amount of the request is two hundred fifty thousand dollars

($250,000) or more and the objections are not resolved

satisfactorily through the pilot project, the legislative

finance committee shall make recommendations to the

legislature regarding the certification. The pilot agencies

agree to be bound by the terms of the pilot project and the

department of finance and administration agrees to wait until

the legislative finance committee either concurs with the

certification or until the issue is determined by legislative

action. If the legislature does not act on the budget

increase or budget transfer request by the end of the next

legislative session, it is deemed approved.

F. The pilot agencies may request increases or

transfers as follows:

(1) taxation and revenue department, for

budget increases from other state funds;

(2) general services department, for budget

increases from other state funds and internal service

funds/interagency transfers;

(3) state fair, for budget increases from

other state funds;

(4) human services department, for budget

increases from other state funds;

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(5) department of health, for budget

increases from other state funds;

(6) the children, youth and families

department, for budget increases from other state funds and

internal service funds/interagency transfers;

(7) corrections department, for budget

increases from other state funds and budget transfers among

institutions and the adult institutions division director; and

(8) the road betterment division of the

state highway and transportation department, for budget

transfers from any program or subprogram within the division

to any other program or subprogram within the division.

G. As part of the budget review and adjustment

pilot project, the department of finance and administration

and the legislative finance committee shall receive and

evaluate quarterly reports from the state investment council,

the educational retirement board and the public employees

retirement association. The reports shall include the

following information:

(1) fund performance;

(2) changes in asset allocation;

(3) investment policies;

(4) amount of internal and external

management and custody fees and transaction fees by asset

type; and

(5) copies of proposed or actual contracts

over one hundred thousand dollars ($100,000).

H. The department of finance and administration

and the legislative finance committee shall provide an interim

report to the governor and the legislature by January 1, 1999

and a final report to the governor and the legislature by July

15, 1999. The final report shall include their findings and

recommendations for statutory or systemic changes necessary to

the budget adjustment process.

Section 9. PARTS NOT SEVERABLE.--If any part or

application of this act is held to be invalid, the remainder

or its application to other situations or persons shall

likewise be invalid. The provisions of this act are not

severable. HTRC/HB 2

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