FIFTY-FIFTH LEGISLATURE

FIRST SESSION, 2021

 

February 1, 2021

 

 

 

Mr. Speaker:

 

    Your COMMERCE AND ECONOMIC DEVELOPMENT COMMITTEE, to whom has been referred

 

HOUSE BILL 11

 

has had it under consideration and reports same with recommendation that it DO PASS, amended as follows:

 

1. On page 21, line 25, after "pursuant", insert "to".

 

     2. On page 22, line 1, strike "seventy-five" and insert in lieu thereof "fifty-six and twenty-five hundredths".

 

     3. On page 22, line 2, strike the second occurrence of "the".

 

     4. On page 22, line 22, strike "seventy-five" and insert in lieu thereof "fifty-six and twenty-five hundredths".

 

     5. On page 22, line 23, after "the", insert "state".

 

     6. On page 25, line 23, after "distributed", insert "from the relevant tax revenue".

 

     7. On page 29, line 6, strike "December 31, 2021" and insert in lieu thereof "June 30, 2022".

 

     8. On page 29, line 11, after the period, strike the remainder of the line, strike lines 12 through 14 in their entirety, strike line 15 through the period and insert in lieu thereof "The department shall promulgate rules to determine the amount of a recovery grant; provided that, for each quarterly payment a recovery entity may be awarded a specified amount for each job created depending on the wages provided and the relative decline in business revenues for taxable year 2020, not to exceed a total of twenty-five thousand dollars ($25,000) per quarter.".

 

     9. On page 30, line 5, strike "fiscal" and insert in lieu thereof "taxable".

 

     10. On page 30, line 7, after "exceed", insert "the total amount of", and after "2020", insert "and the value of the grants received during each taxable year of the agreement".

 

     11. On page 36, line 13, after "to", insert "the state" and after "the", insert "state".

 

     12. On page 36, line 15, after "hundredths", insert "percent".

 

     13. On page 37, between lines 18 and 19, insert the following new section:

 

     "SECTION 16. 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.--

 

          A. The severance tax permanent fund shall be invested in separate differential rate and market rate investment classes. "Differential rate investments" are permitted in Sections 7-27-5.3 through 7-27-5.5, 7-27-5.13 through 7-27-5.17, 7-27-5.22, 7-27-5.24 and 7-27-5.26 NMSA 1978 and are intended to stimulate the economy of New Mexico and to provide income to the severance tax permanent fund. "Market rate investments" are investments that are not differential rate investments and are intended to provide income to the severance tax permanent fund. All market rate investments and differential rate investments shall be invested in accordance with the Uniform Prudent Investor Act and shall be accounted for in accordance with generally accepted accounting principles.

 

          B. In addition to the investment classes described in Subsection A of this section, the severance tax permanent fund shall be invested in:

 

                (1) loans to provide emergency economic relief to local governments as provided by Section [8 of this 2020 act] 7-27-5.27 NMSA 1978; and

 

                (2) the economic development department to provide recovery grants as provided by Section 15 of this 2021 act."".

 

     14. Renumber the succeeding sections accordingly.,

 

                             

                             Respectfully submitted,

 

 

 

                                                                 

Antonio "Moe" Maestas, Chair

 

 

Adopted     Not Adopted

           (Chief Clerk)                            (Chief Clerk)

 

Date

 

 

The roll call vote was 7 For 3 Against

Yes:      7

No:       Baldonado, Dow, Powdrell-Culbert

Excused:  None

Absent:   None

 

 

Z:\2021 Session\CommitteeReports\HB0011CE1.wpd