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| SPONSOR: | J.G. Taylor | DATE TYPED: | 02/26/99 | HB | 815 | ||
| SHORT TITLE: | Amend Public Securities Act | SB | |||||
| ANALYST: | Eaton | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY99 | FY2000 | |||
| NFI | ||||
(Parenthesis ( ) Indicate Revenue Decreases)
Relates to House Bill 816 Investment of Public Money (J.G. Taylor)
SOURCES OF INFORMATION
Legislative Finance Committee (LFC)
SUMMARY
Synopsis of Bill
This Bill would amend language of the Public Securities Act. There are three significant changes.
First, There are changes to the definition of "net effective interest rate" The amending language provides for a more definitive description by which public securities valuation may be determined. The proposed definition would be:
"...the interest rate of public securities, compounded semiannually, necessary to discount the scheduled debt service payments of principal and interest to the date of the public securities and to the price paid to the public body for the public securities, excluding any interest accrued to the date of delivery and based upon a year with the same number of days as the number of days as the number of days for which interest is computed on the public securities;".
Second, this bill provides that the long-term debt obligations of the issuer or person guarantying the obligations of the issuer shall be rated in one of the top two rating categories of a nationally recognized rating agency. This financial surety bond must be issued by an insurance company licensed to issue such a bond in New Mexico.
And third, the state of New Mexico and/or the United States may offer to purchase bonds within three years from the date of the election authorizing the bond issue.
FISCAL IMPLICATIONS
This bill would have no fiscal impact.
ADMINISTRATIVE IMPLICATIONS
None.
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