0001| AN ACT | 0002| RELATING TO TECHNICAL AND VOCATIONAL INSTITUTE DISTRICTS; PROVIDING | 0003| TECHNICAL AND VOCATIONAL INSTITUTES AUTHORITY TO CONTRACT WITH ONE OR | 0004| MORE FISCAL AGENTS AND DESIGNATE ONE OR MORE DEPOSITORIES FOR THE | 0005| DEPOSIT OF FUNDS; AMENDING SECTION 6-10-36 NMSA 1978 (BEING LAWS 1977, | 0006| CHAPTER 136, SECTION 1, AS AMENDED). | 0007| | 0008| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0009| Section 1. A new section of the Technical and Vocational | 0010| Institute Act is enacted to read: | 0011| "FISCAL AGENT AND DEPOSITORY.-- | 0012| A. The board may designate a bank or savings and loan | 0013| association doing business in New Mexico and having an unimpaired tier | 0014| one capital of at least ten million dollars ($10,000,000), as defined | 0015| by the federal deposit insurance corporation, as the fiscal agent of | 0016| the technical and vocational institute. The selection of the fiscal | 0017| agent shall be made pursuant to the procedures of the Procurement | 0018| Code. | 0019| B. The bank or savings and loan association so designated | 0020| shall enter into an agreement with the technical and vocational | 0021| institute for any or all of the following services: | 0022| (1) the collection for the technical and vocational | 0023| institute of all checks and other items received by the technical and | 0024| vocational institute on any account; | 0025| (2) the handling of the checking account of the | 0001| technical and vocational institute; | 0002| (3) the handling of all transfers of money in | 0003| connection with the sale or retirement of bonds or obligations of the | 0004| technical and vocational institute or the purchase by the technical | 0005| and vocational institute of bonds or other securities; | 0006| (4) the investment of funds of the technical and | 0007| vocational institute; | 0008| (5) the safekeeping of bonds or other securities | 0009| belonging to or held by the technical and vocational institute or any | 0010| official thereof; | 0011| (6) implementation of a cash management system to | 0012| provide daily sweeps of balances into a revenue generating account; | 0013| (7) processing of credit card transactions involving | 0014| the technical and vocational institute; | 0015| (8) administration of direct deposit payroll and | 0016| other payment programs; and | 0017| (9) acting as the agent of the technical and | 0018| vocational institute in fiscal matters generally. | 0019| C. The agreement shall contain the terms and conditions | 0020| which are necessary, in the judgment of the board, for the proper | 0021| conduct of the fiscal affairs and the safekeeping of the money of the | 0022| technical and vocational institute." | 0023| Section 2. Section 6-10-36 NMSA 1978 (being Laws 1977, Chapter | 0024| 136, Section 1, as amended) is amended to read: | 0025| "6-10-36. PUBLIC MONEY DEPOSITS OF CERTAIN GOVERNMENTAL UNITS-- | 0001| DISTRIBUTION--INTEREST.-- | 0002| A. All public money except that in the custody of the state | 0003| treasurer, institutions of higher education, technical and vocational | 0004| institutes, incorporated municipalities and counties which have | 0005| adopted home rule charters as authorized by the constitution and local | 0006| school boards which have been designated as boards of finance shall be | 0007| deposited in qualified depositories in accordance with the terms of | 0008| this section or invested as otherwise provided by law. | 0009| B. Deposits of funds of a governmental unit may be made in | 0010| noninterest-bearing checking accounts in one or more banks or savings | 0011| and loan associations designated as checking depositories located | 0012| within the geographical boundaries of the governmental unit. In | 0013| addition, deposits of funds may be in noninterest-bearing accounts in | 0014| one or more credit unions designated as checking depositories located | 0015| within the geographical boundaries of the governmental unit to the | 0016| extent the deposits are insured by an agency of the United States. If | 0017| there is no checking depository within the geographical boundaries of | 0018| the governmental unit, one or more banks, savings and loan | 0019| associations or credit unions within the county in which the principal | 0020| office of the governmental unit is located may be so designated; | 0021| provided any credit union deposits are insured by an agency of the | 0022| United States. | 0023| C. Public money placed in interest-bearing deposits in | 0024| banks and savings and loan associations shall be equitably distributed | 0025| among all banks and savings and loan associations having their main or | 0001| manned branch offices within the geographical boundaries of the | 0002| governmental unit which have qualified as public depositories by | 0003| reason of insurance of the account by an agency of the United States | 0004| or by depositing collateral security or by giving bond as provided by | 0005| law in the proportion that each bank's or savings and loan | 0006| association's net worth bears to the total net worth of all banks and | 0007| savings and loan associations having their main office or manned | 0008| branch office within the geographical boundaries of the governmental | 0009| unit. The net worth of the main office of a savings and loan | 0010| association and its manned branch offices within the geographical | 0011| boundaries of a governmental unit is the total net worth of the | 0012| association multiplied by the percentage that deposits of the main | 0013| office and the manned branch offices located within the geographical | 0014| boundaries of the governmental unit are of the total deposits of the | 0015| association. The net worth of each manned branch office or aggregate | 0016| of manned branch offices of a savings and loan association located | 0017| outside the geographical boundaries of the governmental unit in which | 0018| the main office is located is the total net worth of the association | 0019| multiplied by the percentage that deposits of the branch or the | 0020| aggregate of branches located outside the geographical boundaries of | 0021| the governmental unit in which the main office is located are of the | 0022| total deposits of the association. The director of the financial | 0023| institutions division of the regulation and licensing department shall | 0024| promulgate a formula for determining the net worth of banks' main | 0025| offices and branches for the purposes of distribution of public money | 0001| as provided for by this section. "Net worth" means the assets less | 0002| liabilities as reported by those banks and savings and loan | 0003| associations on their most recent semiannual reports to the state or | 0004| federal supervisory authority having jurisdiction. | 0005| D. Public money may be placed at the discretion of the | 0006| designated board of finance or treasurer in interest-bearing deposits | 0007| in credit unions having their main or manned branch offices within the | 0008| geographical boundaries of the governmental unit to the extent such | 0009| deposits are insured by an agency of the United States. | 0010| E. The rate of interest for all public money deposited in | 0011| interest-bearing accounts in banks, savings and loan associations and | 0012| credit unions shall be set by the state board of finance, but in no | 0013| case shall the rate of interest be less than one hundred percent of | 0014| the asked price on United States treasury bills of the same maturity | 0015| on the day of deposit. Any bank or savings and loan association that | 0016| fails to pay the minimum rate of interest at the time of deposit | 0017| provided for herein for any respective deposit forfeits its right to | 0018| an equitable share of that deposit under this section. | 0019| If the deposit is part or all of the proceeds of a bond issue and | 0020| the interest rate prescribed in this subsection materially exceeds the | 0021| rate of interest of the bonds, the interest rate prescribed by this | 0022| subsection shall be reduced on that deposit to an amount not | 0023| materially exceeding the interest rate of the bonds if the bond issue | 0024| would lose its tax exempt status pursuant to the provisions of the | 0025| Internal Revenue Code of 1986, as amended. | 0001| F. Public money in excess of that for which banks, savings | 0002| and loan associations and credit unions within the geographical | 0003| boundaries of the governmental unit have qualified may be deposited in | 0004| qualified depositories in other areas within the state under the same | 0005| requirements for payment of interest as if the money were deposited | 0006| within the geographical boundaries of the governmental unit or may be | 0007| invested as provided by law. | 0008| G. The department of finance and administration may | 0009| monitor the deposits of public money by governmental units to | 0010| assure full compliance with the provisions of this section." | 0011| |