0001| AN ACT
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0002| RELATING TO PUBLIC MONEY; AUTHORIZING THE STATE TREASURER TO ISSUE
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0003| TAX AND REVENUE ANTICIPATION NOTES; MAKING AN APPROPRIATION;
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0004| DECLARING AN EMERGENCY.
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0005|
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0006| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0007| Section 1. SHORT TITLE.--This act may be cited as the "Short-Term Cash Management
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0008| Act".
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0009| Section 2. PURPOSE.--The purpose of the Short-Term Cash Management Act is to
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0010| ensure an orderly and uninterrupted flow of money to the general fund by anticipating the receipt
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0011| of taxes and other state revenues into the general fund and authorizing the state treasurer to issue
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0012| short-term notes payable from those anticipated receipts.
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0013| Section 3. DEFINITIONS.--As used in the Short-Term Cash Management Act:
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0014| A. "anticipated revenue" means tax receipts and other state revenues that are to be
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0015| credited by law to the general fund;
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0016| B. "anticipation notes" means state of New Mexico tax and revenue anticipation
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0017| notes; and
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0018| C. "general fund" means the fund created in Section 6-4-2 NMSA 1978 to which
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0019| the state treasurer credits all revenue not otherwise allocated by law.
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0020| Section 4. STATE TREASURER CERTIFICATION.--Whenever the state treasurer
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0021| deems it necessary to issue anticipation notes pursuant to the Short-Term Cash Management Act,
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0022| the state treasurer shall certify that:
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0023| A. the issuance of anticipation notes is necessary to regulate cash flow in the
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0024| general fund;
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0025| B. the issuance of anticipation notes will not have an adverse impact on the
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0001| general fund;
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0002| C. the issuance of anticipation notes is in the best interest of the state;
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0003| D. the amount of anticipation notes proposed for issuance is reasonable under
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0004| existing and anticipated market conditions and complies with the requirements of the Internal
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0005| Revenue Code of 1986, as amended, to the extent applicable; and
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0006| E. the payment of all interest and principal on anticipation notes can be made on a
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0007| timely basis.
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0008| Section 5. ANTICIPATION NOTES--AUTHORIZATION--STATE BOARD OF
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0009| FINANCE APPROVAL.--
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0010| A. In order to anticipate the collection and receipt of anticipated revenue and after
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0011| certifying the need to issue anticipation notes as provided in the Short-Term Cash Management
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0012| Act, the state treasurer may issue and sell one or more anticipation notes. The anticipation notes
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0013| shall mature not later than the end of the fiscal year in which the anticipation notes are issued and
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0014| shall bear interest at rates permitted in the Public Securities Act.
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0015| B. The state treasurer shall pledge the anticipated revenue to secure the payment
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0016| of the principal of and interest on the anticipation notes.
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0017| C. Anticipation notes may be sold at a public or negotiated sale at, above or
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0018| below par. Any negotiated sale shall be made with one or more investment bankers whose
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0019| services are obtained through a competitive proposal process. For any sale, the state treasurer
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0020| shall also procure through a competitive proposal process the services of any financial adviser
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0021| and bond counsel, unless the state treasurer contracts with the state board of finance to employ
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0022| the services of the board's financial adviser or bond counsel under contracts the board may have,
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0023| from time to time, with those professionals.
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0024| D. Anticipation notes may be issued in an aggregate principal amount not to
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0025| exceed fifty percent of the anticipated revenue that the state treasurer anticipates will be collected
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0001| by the state and credited to the general fund in the fiscal year in which the notes are issued and
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0002| will be available to pay the principal of and interest on the anticipation notes.
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0003| E. Anticipation notes shall be issued by the state treasurer pursuant to the Short-
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0004| Term Cash Management Act only upon approval by the state board of finance at a public meeting
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0005| held prior to the delivery of the anticipation notes.
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0006| Section 6. SOURCE OF REPAYMENT.--Principal of and interest on anticipation notes
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0007| shall be payable solely from that portion of anticipated revenue pledged for that purpose and
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0008| collected by the state for credit to the general fund in the fiscal year in which the anticipation
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0009| notes are issued.
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0010| Section 7. ANTICIPATION NOTES DEBT SERVICE FUND CREATED.--The
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0011| "anticipation notes debt service fund" is created in the state treasury. Upon collection of
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0012| anticipated revenue that has been pledged for the payment of principal of and interest on the
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0013| outstanding anticipation notes, the state treasurer shall deposit into the fund that portion of the
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0014| pledged revenue necessary for payment of the principal of and interest on anticipation notes.
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0015| Anticipated revenue in the fund is appropriated to the state treasurer for the payment of
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0016| anticipation notes with interest at maturity. Money in the fund shall be held for the benefit of the
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0017| registered owner or owners of the anticipation notes and for no other purpose.
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0018| Section 8. PROCEEDS FROM ANTICIPATION NOTES--ANTICIPATION NOTES
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0019| FUND CREATED--INVESTMENT.--The "anticipation notes fund" is created in the state
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0020| treasury. All proceeds from the sale of anticipation notes shall be deposited in the fund. The
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0021| state treasurer shall invest the proceeds of anticipation notes as provided in Section 6-10-10
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0022| NMSA 1978.
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0023| Section 9. ANTICIPATION NOTES--LEGAL INVESTMENT--TAX EXEMPTION.--
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0024| Anticipation notes issued by the state treasurer pursuant to the Short-Term Cash Management
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0025| Act are legal and authorized investments for banks, savings banks, trust companies, savings and
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0001| loan associations, insurance companies, fiduciaries, trustees and guardians and for the sinking
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0002| funds of political subdivisions, departments, institutions and agencies of the state. Anticipation
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0003| notes are sufficient security for all deposits of state funds and of all funds of any board in control
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0004| of public money at the par value of the anticipation notes.
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0005| Section 10. EXPENSES.--The expenses incurred by the state treasurer related to the
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0006| issuance and sale of anticipation notes shall be paid out of the proceeds from the sale of the
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0007| anticipation notes, and all rebate, penalty, interest and other obligations of the state related to the
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0008| anticipation notes and anticipation notes proceeds under the Internal Revenue Code of 1986, as
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0009| amended, shall be paid from the earnings on anticipation notes proceeds or any money of the
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0010| state legally available for such payment.
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0011| Section 11. STATE TREASURER--DUTY TO MAKE PAYMENTS AND KEEP
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0012| RECORDS.--The state treasurer shall pay the principal of and interest on outstanding
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0013| anticipation notes and shall keep a complete register showing the interest paid and principal
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0014| outstanding on all anticipation notes and such other records as he deems appropriate.
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0015| Section 12. AUTHORITY FOR ISSUANCE.--The Short-Term Cash Management Act,
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0016| without reference to any other statute, shall be full authority for the issuance and sale of
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0017| anticipation notes and shall have all the qualities of investment securities under the Uniform
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0018| Commercial Code.
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0019| Section 13. ACTION TO COMPEL PERFORMANCE OF OFFICERS.--Any holder of
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0020| anticipation notes or any person who is a party in interest may bring an action to enforce and
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0021| compel the performance of the provisions of the Short-Term Cash Management Act.
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0022| Section 14. ANTICIPATION NOTES EXEMPT FROM TAXATION.--Anticipation
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0023| notes are exempt from taxation by the state or any of its political subdivisions.
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0024| Section 15. ANTICIPATION NOTES NOT A GENERAL OBLIGATION OF THE
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0025| STATE.--Anticipation notes are not a general obligation of the state, but are payable solely out of
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0001| anticipated revenues that have been pledged for their payment.
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0002| Section 16. DELAYED REPEAL.--The Short-Term Cash Management Act is repealed
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0003| effective June 30, 1999.
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0004| Section l7. EMERGENCY.--It is necessary for the public peace, health and safety
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0005| that this act take effect immediately.
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