RELATING TO PUBLIC FINANCE; CLARIFYING PROVISIONS THAT GOVERN THE STATE TREASURER'S INVESTMENT OF THE SHORT-TERM INVESTMENT FUND.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 6-10-10.1 NMSA 1978 (being Laws 1988, Chapter 61, Section 2, as amended) is amended to read:
"6-10-10.1. SHORT-TERM INVESTMENT FUND CREATED--DISTRIBUTION OF EARNINGS--REPORT OF INVESTMENTS.--
A. There is created in the state treasury the "short-term investment fund". The fund shall consist of all deposits from governmental entities and Indian tribes or pueblos that are placed in the custody of the state treasurer for short-term investment purposes pursuant to this section. The state treasurer shall maintain a separate account for each governmental entity and Indian tribe or pueblo having deposits in the fund.
B. If any local public body is unable to receive payment on public money at the rate of interest as set forth in Section 6-10-36 NMSA 1978 from financial institutions within the geographic boundaries of the governmental unit, then a local public finance official having money of that local public body in his custody not required for current expenditure may, with the consent of the appropriate local board of finance, if any, remit some or all of such money to the state treasurer for deposit for the purpose of short-term investment as allowed by this section.
C. Before any local funds are invested or reinvested for the purpose of short-term investment pursuant to this section, the local public body finance official shall notify and make such funds available to banks, savings and loan associations and credit unions located within the geographical boundaries of their respective governmental unit, subject to the limitation on credit union accounts. To be eligible for such funds, the financial institution shall pay to the local public body the rate established by the state treasurer pursuant to a policy adopted by the state board of finance for such short-term investments.
D. The local public body finance official shall specify the length of time each deposit shall be in the short-term investment fund, but in any event the deposit shall not be made for more than one hundred eighty-one days. The state treasurer through the use of the state fiscal agent shall separately track each such deposit and shall make such information available to the public upon written request.
E. The state treasurer shall invest the short-term investment fund as provided for state funds under Section 6-10-10 NMSA 1978 in investments with a maturity at the time of purchase that does not exceed three hundred ninety-seven days. The state treasurer may elect to have the short-term investment fund consolidated for investment purposes with the state funds under the control of the state treasurer; provided that accurate and detailed accounting records are maintained for the account of each participating entity and Indian tribe or pueblo and that a proportionate amount of interest earned is credited to each of the separate government accounts. The fund shall be invested to achieve its objective, which is to realize the maximum return consistent with safe and prudent management.
F. At the end of each month, all net investment income or losses from investment of the short-term investment fund shall be distributed by the state treasurer to the contributing entities and Indian tribes or pueblos in amounts directly proportionate to the respective amounts deposited in the fund and the length of time the amounts in the fund were invested. The state treasurer shall charge participating entities, Indian tribes and pueblos reasonable audit, administrative and investment expenses to be paid directly from their net investment income for the investment and administrative services provided pursuant to this section.
G. As used in this section, "local public body"
means any political subdivision of the state, including
school districts and any post-secondary educational
institution.
H. In addition to the deposit of funds of local public bodies, the state treasurer may also accept for deposit, deposit and account for, in the same manner as funds of local public bodies, funds of the following governmental entities if the governing authority of the entity approves by resolution the deposit of the funds for the short-term investment:
(1) the agricultural commodity commission
established under the Agricultural Commodity Commission Act;
(2) the Albuquerque metropolitan arroyo flood control authority established under the Arroyo Flood Control Act;
(3) the business improvement district management committee established under the Business Improvement District Act;
(4) the New Mexico community development council established under the New Mexico Community Assistance Act;
(5) the governing authority of only special districts authorized under Chapter 73 NMSA 1978;
(6) the board of trustees established under the Economic Advancement District Act;
(7) the board of directors of a corporation or foundation established under the Educational Assistance Act;
(8) a board of directors established under the Flood Control District Act;
(9) the New Mexico hospital equipment loan council established under the Hospital Equipment Loan Act;
(10) the authority established under the Industrial and Agricultural Finance Authority Act;
(11) the authority established under the Las Cruces Arroyo Flood Control Act;
(12) the authority established under the Mortgage Finance Authority Act;
(13) the authority established under the Municipal Mortgage Finance Act;
(14) the authority established under the Public School Insurance Authority Act;
(15) the authority established under the Southern Sandoval County Arroyo Flood Control Act;
(16) a board of trustees established under the Special Hospital District Act; and
(17) the authority established under the New Mexico Finance Authority Act.
I. In addition to the deposit of funds of local public bodies, the state treasurer may also accept for deposit and deposit and account for, in the same manner as funds of local public bodies, funds of any Indian tribe or pueblo in the state if authorized to do so under a joint powers agreement executed by the state treasurer and the governing authority of the Indian tribe or pueblo under the provisions of the Joint Powers Agreements Act."
HB 171
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