SENATE BILL 616

52nd legislature - STATE OF NEW MEXICO - first session, 2015

INTRODUCED BY

Sander Rue

AN ACT

RELATING TO STATE FUNDS; PROVIDING FOR REVIEW OF FUNDS AND RECOMMENDATIONS TO THE LEGISLATURE EACH YEAR.

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

     SECTION 1. [NEW MATERIAL] LEGISLATIVE FINDINGS AND PURPOSE--SPECIAL FUNDS--REVIEWS--EXCEPTIONS.--

          A. The legislature finds that the proliferation of special funds that do not revert to the general fund is counterproductive to good government. The purpose of this section is to establish a mechanism for ongoing legislative review of the continued efficacy of special funds that do not revert to the general fund and the programs they support.

          B. All special funds that do not revert to the general fund shall be reviewed, except funds that are:

                (1) constitutionally created as nonreverting funds or statutory funds created to carry out Enabling Act for New Mexico or constitutional mandates;

                (2) actuarially obligated;

                (3) created pursuant to court order or made nonreverting pursuant to court order;

                (4) funded by severance tax bonds or other bonds for active projects under contract that have not been completed;

                (5) permanent, trust or endowment funds;

                (6) sinking funds, unless the project for which the sinking fund was created is completed;

                (7) suspense funds;

                (8) revolving loan funds; or

                (9) gifts, grants or donations that are specific to purpose.

          C. The department of finance and administration shall establish a schedule of review of special funds that do not revert to the general fund in the state treasury. Each year, the department of finance and administration shall develop a list that includes at least one-fifth of special funds in the state treasury that are not excepted pursuant to Subsection B of this section that are recommended for continuance, reversion, repeal or amendment. The department of finance and administration shall report the recommendations to the legislative finance committee and other appropriate legislative interim committees by November 1 of each year.

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