0001| HOUSE BILL 708 | 0002| 42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, | 0003| 1996 | 0004| INTRODUCED BY | 0005| LUCIANO "LUCKY" VARELA | 0006| | 0007| | 0008| FOR THE LEGISLATIVE FINANCE COMMITTEE AND THE REVENUE STABILIZATION AND TAX POLICY COMMITTEE | 0009| | 0010| AN ACT | 0011| RELATING TO STATE FUNDS; CLARIFYING AND CHANGING PROVISIONS | 0012| GOVERNING CASH FLOW; AMENDING, REPEALING AND ENACTING SECTIONS | 0013| OF THE NMSA 1978; DECLARING AN EMERGENCY. | 0014| | 0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0016| Section 1. Section 6-4-6 NMSA 1978 (being Laws 1991, | 0017| Chapter 132, Section 1) is repealed and a new Section 6-4-6 NMSA | 0018| 1978 is enacted to read: | 0019| "6-4-6. [NEW MATERIAL] USE OF FUNDS AUTHORIZED TO | 0020| MAINTAIN CASH FLOW.-- | 0021| A. Unless prohibited by Subsection B or C of this | 0022| section, for cash flow purposes the cash balance in any fund or | 0023| account in the state treasury, regardless of the specific | 0024| allocation or appropriation to the fund or account, may be used: | 0025| (1) to support periodic allotments to state | 0001| agencies pursuant to Section 6-3-6 NMSA 1978 in order to meet | 0002| expenditures contained in an operating budget approved pursuant | 0003| to Section 6-3-7 NMSA 1978; | 0004| (2) to support allotments made to institutions | 0005| of post-secondary educational or vocational institutions; | 0006| (3) to support allotments made for public | 0007| school support; or | 0008| (4) to support expenditures from agency | 0009| accounts if the expenditures are for personal services and | 0010| contained in an operating budget approved pursuant to Section | 0011| 6-3-7 NMSA 1978. | 0012| B. No cash balance may be transferred or used to | 0013| support periodic allotments unless the secretary of finance and | 0014| administration or his designee reasonably expects that the | 0015| balance in the fund or account will be fully restored by the end | 0016| of the fiscal year. | 0017| C. No cash balance from the following funds or | 0018| accounts shall be used for cash flow purposes to support | 0019| periodic allotments to state agencies, unless there is a | 0020| specific authorization for such use in a current law other than | 0021| this section: | 0022| (1) a permanent fund; | 0023| (2) any debt service fund or account | 0024| established for the payment of principal and interest on any | 0025| indebtedness of the state; | 0001| (3) federal funds deposited for payment for a | 0002| specific program; | 0003| (4) a retirement or pension fund; or | 0004| (5) any other fund if the use of the fund would | 0005| violate a constitutional or trust provision." | 0006| Section 2. Section 8-6-7 NMSA 1978 (being Laws 1987, | 0007| Chapter 183, Section 1, as amended) is amended to read: | 0008| "8-6-7. WRONGFUL DRAWING OR PAYMENT OF WARRANT BY | 0009| SECRETARY OR TREASURER--PENALTY.-- | 0010| A. If the secretary of finance and administration | 0011| draws any warrant on the state treasurer when he knows or, with | 0012| the use of available accounting information, should reasonably | 0013| know there is an insufficient [unexpended and unencumbered] | 0014| cash balance available for the purpose for which the warrant | 0015| is drawn, he [shall be] is in violation of this section, | 0016| unless the warrant includes federal funds that will be | 0017| receipted based upon established warrant-clearing patterns. | 0018| B. If the state treasurer pays any warrant when he | 0019| knows or, with the use of available accounting information, | 0020| should reasonably know there are insufficient funds available in | 0021| the treasury for the purpose to pay the warrant, he [shall be] | 0022| is in violation of this section unless the warrant includes | 0023| federal funds that will be receipted based upon established | 0024| warrant-clearing patterns. | 0025| C. A violation of this section [shall be] is | 0001| punishable by a fine of not more than one thousand dollars | 0002| ($1,000) or by imprisonment for not more than one year or by | 0003| both such fine and imprisonment in the discretion of the judge." | 0004| Section 3. REPEAL.--Section 6-10-42 NMSA 1978 (being Laws | 0005| 1923, Chapter 76, Section 25, as amended) is repealed. | 0006| Section 4. EMERGENCY.--It is necessary for the public | 0007| peace, health and safety that this act take effect immediately. | 0008| - 4 - State of New Mexico | 0009| House of Representatives | 0010| | 0011| FORTY-SECOND LEGISLATURE | 0012| SECOND SESSION, 1996 | 0013| | 0014| | 0015| February 9, 1996 | 0016| | 0017| | 0018| Mr. Speaker: | 0019| | 0020| Your TAXATION AND REVENUE COMMITTEE, to whom has | 0021| been referred | 0022| | 0023| HOUSE BILL 708 | 0024| | 0025| has had it under consideration and reports same with | 0001| recommendation that it DO PASS. | 0002| | 0003| Respectfully submitted, | 0004| | 0005| | 0006| | 0007| | 0008| Jerry W. Sandel, Chairman | 0009| | 0010| | 0011| Adopted Not Adopted | 0012| | 0013| (Chief Clerk) (Chief Clerk) | 0014| | 0015| Date | 0016| | 0017| The roll call vote was 13 For 0 Against | 0018| Yes: 13 | 0019| Excused: None | 0020| Absent: None | 0021| | 0022| | 0023| | 0024| H0708TR1 State of New Mexico | 0025| House of Representatives | 0001| | 0002| FORTY-SECOND LEGISLATURE | 0003| SECOND SESSION, 1996 | 0004| | 0005| | 0006| February 10,1996 | 0007| | 0008| | 0009| Mr. Speaker: | 0010| | 0011| Your APPROPRIATIONS AND FINANCE COMMITTEE, to | 0012| whom has been referred | 0013| | 0014| HOUSE BILL 708 | 0015| | 0016| has had it under consideration and reports same with | 0017| recommendation that it DO PASS, amended as follows: | 0018| | 0019| 1. On page 2, strike lines 8 through 11 an insert in lieu | 0020| thereof: | 0021| | 0022| "(4) to support temporary negative balances in any state | 0023| fund or account if the secretary of financeand administration | 0024| finds that amounts sufficientto cover the negative balance | 0025| are in anotherstate fund or account and, pursuant to | 0001| established distribution procedures, will be transferred to | 0002| the account with the negative balance in the normal course of | 0003| business.". | 0004| | 0005| 2. On page 2, lines 12 and 13, strike "transferred or used | 0006| to | 0007| support periodic allotments" and insert in lieu thereof "used | 0008| pursuant to Subsection A of this section". | 0009| | 0010| 3. On page 2, lines 15 and 16, strike "by the end of the" | 0011| and insert in lieu thereof "for that". | 0012| | 0013| Respectfully submitted, | 0014| | 0015| | 0016| | 0017| | 0018| | 0019| Max Coll, Chairman | 0020| | 0021| | 0022| Adopted Not Adopted | 0023| | 0024| (Chief Clerk) (Chief Clerk) | 0025| | 0001| Date | 0002| | 0003| The roll call vote was 12 For 1 Against | 0004| Yes: 12 | 0005| No: Bird | 0006| Excused: Buffett, Casey, Gentry, Martinez, Wallace | 0007| Absent: None | 0008| | 0009| | 0010| | 0011| H0708AF1 | 0012| | 0013| FORTY-SECOND LEGISLATURE | 0014| SECOND SESSION, 1996 | 0015| | 0016| | 0017| February 13, 1996 | 0018| | 0019| Mr. President: | 0020| | 0021| Your WAYS AND MEANS COMMITTEE, to whom has been | 0022| referred | 0023| | 0024| HOUSE BILL 708, as amended | 0025| | 0001| has had it under consideration and reports same with | 0002| recommendation that it DO PASS, and thence referred to the | 0003| FINANCE COMMITTEE. | 0004| | 0005| Respectfully submitted, | 0006| | 0007| | 0008| | 0009| __________________________________ | 0010| TITO D. CHAVEZ, Chairman | 0011| | 0012| | 0013| | 0014| Adopted_______________________ Not Adopted_______________________ | 0015| (Chief Clerk) (Chief Clerk) | 0016| | 0017| | 0018| Date ________________________ | 0019| | 0020| | 0021| The roll call vote was 5 For 0 Against | 0022| Yes: 5 | 0023| No: 0 | 0024| Excused: Campos, Rhodes, Romero | 0025| Absent: None | 0001| | 0002| | 0003| H0708WM1 | 0004| | 0005| | 0006| | 0007| FORTY-SECOND LEGISLATURE | 0008| SECOND SESSION, 1996 | 0009| | 0010| | 0011| February 14, 1996 | 0012| | 0013| Mr. President: | 0014| | 0015| Your FINANCE COMMITTEE, to whom has been referred | 0016| | 0017| HOUSE BILL 708, as amended | 0018| | 0019| has had it under consideration and reports same with | 0020| recommendation that it DO PASS, amended as follows: | 0021| | 0022| 1. On page 2, lines 18 and 19, strike "to support periodic | 0023| allotments to state agencies" and insert in lieu thereof "pursuant | 0024| to Subsection A of this section". | 0025| | 0001| 2. On page 3, strike line 17 and insert in lieu thereof | 0002| "federally approved cash drawdowns.". | 0003| | 0004| 3. On page 3, lines 23 and 24, strike "established warrant-clearing patterns" and insert in lieu thereof "federally approved | 0005| cash drawdowns". | 0006| | 0007| | 0008| Respectfully submitted, | 0009| | 0010| | 0011| | 0012| __________________________________ | 0013| Ben D. Altamirano, Chairman | 0014| | 0015| | 0016| | 0017| Adopted_______________________ Not Adopted_______________________ | 0018| (Chief Clerk) (Chief Clerk) | 0019| | 0020| | 0021| Date ________________________ | 0022| | 0023| | 0024| | 0025| | 0001| | 0002| | 0003| | 0004| | 0005| | 0006| | 0007| The roll call vote was 8 For 0 Against | 0008| Yes: 8 | 0009| No: 0 | 0010| Excused: Donisthorpe, Duran, Ingle, Kidd, Kysar | 0011| Absent: None | 0012| | 0013| | 0014| H0708FC1 .112209.1 | 0015| | 0016| |