0001| HOUSE BILL 12 | 0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0003| INTRODUCED BY | 0004| LUCIANO "LUCKY" VARELA | 0005| | 0006| | 0007| | 0008| FOR THE REVENUE STABILIZATION AND TAX POLICY COMMITTEE | 0009| | 0010| AN ACT | 0011| RELATING TO PUBLIC MONEY; AUTHORIZING THE STATE TREASURER TO | 0012| MAKE CERTAIN INVESTMENTS. | 0013| | 0014| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0015| Section 1. Section 6-10-10 NMSA 1978 (being Laws 1933, | 0016| Chapter 175, Section 4, as amended) is amended to read: | 0017| "6-10-10. DEPOSIT AND INVESTMENT OF FUNDS.-- | 0018| A. Upon the certification or designation of any | 0019| bank, savings and loan association or credit union whose | 0020| deposits are insured by an agency of the United States to | 0021| receive public money on deposit, the state treasurer and the | 0022| several county or municipal treasurers who have on hand any | 0023| public money by virtue of their several offices shall make | 0024| deposit of that money in banks and savings and loan | 0025| associations and may make deposit of that money in credit | 0001| unions whose deposits are insured by an agency of the United | 0002| States, designated by the authority authorized by law to so | 0003| designate to receive the deposits of all money thereafter | 0004| received or collected by the treasurers provided that no | 0005| deposit of public money shall be made in a credit union unless | 0006| the deposit is insured by an agency of the United States. | 0007| B. The several county or municipal treasurers may | 0008| deposit money in one or more accounts with any such bank, | 0009| savings and loan association or credit union located in their | 0010| respective counties, subject to limitation on credit union | 0011| accounts. | 0012| C. The state treasurer may deposit money in one or | 0013| more accounts with any such bank, savings and loan association | 0014| or credit union, subject to the limitation on credit union | 0015| accounts. | 0016| D. Duplicate receipts or deposit slips shall be | 0017| taken for each deposit made pursuant to Subsection A, B or C of | 0018| this section. When deposits are made by the state treasurer, | 0019| one copy of the receipt or deposit slip shall be retained by | 0020| the treasurer and the other copy shall be filed monthly on the | 0021| first day of each month with the financial control division of | 0022| the department of finance and administration. When the | 0023| deposits are made by the treasurer or any other authorized | 0024| person making the deposits for a board of finance of any public | 0025| or educational institution, one copy of the receipt or deposit | 0001| slip shall be retained by the treasurer or authorized person so | 0002| making the deposit and the other copy shall be filed monthly on | 0003| the first day of each month with that board of finance. When | 0004| the deposits are made by a county or municipal treasurer, one | 0005| of the duplicate receipts or deposit slips shall be retained by | 0006| the treasurer so making the deposit, and the other copy shall | 0007| be filed monthly on the first day of each month with the | 0008| secretary of the board of finance of the county or municipality | 0009| for which that treasurer is acting. | 0010| E. "Deposit", as used in this section, means either | 0011| investment or deposit and includes share, share certificate and | 0012| share draft. | 0013| F. County or municipal treasurers, by and with the | 0014| advice and consent of their respective boards of finance | 0015| charged with the supervision and control of the respective | 0016| funds, have the power to invest all sinking funds or money | 0017| remaining unexpended from the proceeds of any issue of bonds or | 0018| other negotiable securities of any county, municipality or | 0019| school district which are now or may hereafter by law be | 0020| entrusted to their care and custody and all money not | 0021| immediately necessary for the public uses of the counties, | 0022| municipalities or school districts not invested or deposited in | 0023| banks, savings and loan associations or credit unions in: | 0024| (1) bonds or negotiable securities of the | 0025| United States, the state or any county, municipality or school | 0001| district which has a taxable valuation of real property for the | 0002| last preceding year of at least one million dollars | 0003| ($1,000,000) and has not defaulted in the payment of any | 0004| interest or sinking fund obligation or failed to meet any bonds | 0005| at maturity at any time within five years last preceding; or | 0006| (2) securities that are issued by the United | 0007| States government or by its agencies or instrumentalities and | 0008| that are either direct obligations of the United States or are | 0009| backed by the full faith and credit of the United States | 0010| government or agencies guaranteed by the United States | 0011| government. | 0012| G. A local public body, with the advice and consent | 0013| of the body charged with the supervision and control of the | 0014| local public body's respective funds, has the power to invest | 0015| all sinking funds or money remaining unexpended from the | 0016| proceeds of any issue of bonds or other negotiable securities | 0017| of the investor that is entrusted to the local public body's | 0018| care and custody and all money not immediately necessary for | 0019| the public uses of the investor and not otherwise invested or | 0020| deposited in banks, savings and loan associations or credit | 0021| unions, in contracts with banks, savings and loan associations | 0022| or credit unions for the present purchase and resale at a | 0023| specified time in the future of specific securities at | 0024| specified prices at a price differential representing the | 0025| interest income to be earned by the investor. The contract | 0001| shall be fully secured by obligations of the United States or | 0002| other securities backed by the United States having a market | 0003| value of at least one hundred two percent of the contract. The | 0004| collateral required for investment in the contracts provided | 0005| for in this subsection shall be shown on the books of the | 0006| financial institution as being the property of the investor and | 0007| the designation shall be contemporaneous with the investment. | 0008| As used in this subsection, "local public body" includes all | 0009| political subdivisions of the state and agencies, | 0010| instrumentalities and institutions thereof; provided that home | 0011| rule municipalities who prior to July 1, 1994 had enacted | 0012| ordinances authorizing the investment of repurchase agreements | 0013| may continue investment in repurchase agreements pursuant to | 0014| those ordinances. | 0015| H. The state treasurer, with the advice and consent | 0016| of the state board of finance, has the power to invest money | 0017| held in demand deposits and not immediately needed for the | 0018| operation of state government and money held in the short-term | 0019| investment fund, except as provided in Section 6-10-10.1 NMSA | 0020| 1978. The investments shall be made only in securities which | 0021| are issued by the United States government or by its | 0022| departments or agencies and which are either direct obligations | 0023| of the United States or are backed by the full faith and credit | 0024| of the United States government or agencies sponsored by the | 0025| United States government. | 0001| I. The state treasurer may also invest in contracts | 0002| for the present purchase and resale at a specified time in the | 0003| future, not to exceed one year or in the case of bond proceeds | 0004| not to exceed three years, of specific securities at specified | 0005| prices at a price differential representing the interest income | 0006| to be earned by the state. No such contract shall be invested | 0007| in unless the contract is fully secured by obligations of the | 0008| United States, or other securities backed by the United States, | 0009| having a market value of at least one hundred two percent of | 0010| the amount of the contract. | 0011| J. The state treasurer may also invest in contracts | 0012| for the temporary exchange of state-owned securities for the | 0013| use of broker-dealers, banks or other recognized institutional | 0014| investors in securities, for periods not to exceed one year for | 0015| a specified fee rate. No such contract shall be invested in | 0016| unless the contract is fully secured by exchange of an | 0017| irrevocable letter of credit running to the state, cash or | 0018| equivalent collateral of at least one hundred two percent of | 0019| the market value of the securities plus accrued interest | 0020| temporarily exchanged. | 0021| K. The collateral required for either of the forms | 0022| of investment in Subsection I or J of this section shall be | 0023| delivered to the state fiscal agent or its designee | 0024| contemporaneously with the transfer of funds or delivery of the | 0025| securities, at the earliest time industry practice permits, but | 0001| in all cases settlement shall be on a same-day basis. | 0002| L. Neither of the contracts in Subsection I or J of | 0003| this section shall be invested in unless the contracting bank, | 0004| brokerage firm or recognized institutional investor has a net | 0005| worth in excess of five hundred million dollars ($500,000,000). | 0006| M. The state treasurer, with the advice and | 0007| consent of the state board of finance, may also invest in: | 0008| (1) commercial paper rated "prime" quality by | 0009| a national rating service, issued by corporations organized and | 0010| operating within the United States; | 0011| (2) medium term notes and corporate notes | 0012| with a maturity not exceeding five years that are rated A or | 0013| its equivalent or better by a nationally recognized rating | 0014| service and that are issued by a corporation organized and | 0015| operating in the United States; or | 0016| (3) any asset-backed obligation with a | 0017| maturity not exceeding five years that is rated AAA or its | 0018| equivalent by a nationally recognized rating service. | 0019| N. The state treasurer, with the advice and consent | 0020| of the state board of finance, may also invest in: | 0021| (1) shares of a diversified investment company | 0022| registered under the federal Investment Company Act of 1940 | 0023| that invests primarily in United States fixed income securities | 0024| or debt instruments authorized pursuant to Subsections H, I and | 0025| M of this section, provided that the investment company has | 0001| total assets under management of at least one hundred million | 0002| dollars ($100,000,000); or | 0003| (2) individual, common or collective trust | 0004| funds of banks or trust companies that invest primarily in | 0005| United States fixed income securities or debt instruments | 0006| authorized pursuant to Subsections H, I and M of this section, | 0007| provided that the investment manager has assets under | 0008| management of at least one hundred million dollars | 0009| ($100,000,000). | 0010| [M.] O. No public funds to be invested in | 0011| negotiable securities or loans to financial institutions fully | 0012| secured by negotiable securities at current market value shall | 0013| be paid out unless there is a contemporaneous transfer of the | 0014| securities at the earliest time industry practice permits, but | 0015| in all cases settlement shall be on a same-day basis either by | 0016| physical delivery or, in the case of uncertificated securities, | 0017| by appropriate book entry on the books of the issuer, to the | 0018| purchaser or to a reputable third-party safekeeping financial | 0019| institution acting as agent or trustee for the purchaser, which | 0020| agent or trustee shall furnish timely confirmation to the | 0021| purchaser." | 0022|  | 0023| | 0024| | 0025| | 0001| State of New Mexico | 0002| House of Representatives | 0003| | 0004| FORTY-THIRD LEGISLATURE | 0005| FIRST SESSION, 1997 | 0006| | 0007| | 0008| February 26, 1997 | 0009| | 0010| | 0011| Mr. Speaker: | 0012| | 0013| Your TAXATION AND REVENUE COMMITTEE, to whom has | 0014| been referred | 0015| | 0016| HOUSE BILL 12 | 0017| | 0018| has had it under consideration and reports same with | 0019| recommendation that it DO PASS, amended as follows: | 0020| | 0021| 1. On page 7, line 7, before the colon insert "any of the | 0022| following investments in an amount not to exceed forty percent of | 0023| any fund that the state treasurer invests". | 0024| | 0025| 2. On page 8, line 4, strike "primarily"., | 0001| | 0002| and thence referred to the APPROPRIATIONS AND FINANCE | 0003| COMMITTEE. | 0004| | 0005| Respectfully submitted, | 0006| | 0007| | 0008| | 0009| | 0010| | 0011| Jerry W. Sandel, Chairman | 0012| | 0013| | 0014| Adopted Not Adopted | 0015| | 0016| (Chief Clerk) (Chief Clerk) | 0017| | 0018| Date | 0019| | 0020| The roll call vote was 9 For 0 Against | 0021| Yes: 9 | 0022| Excused: Gubbels, Porter, Sandoval, Stell | 0023| Absent: None | 0024| | 0025| | 0001| | 0002| .115714.1 | 0003| G:\BILLTEXT\BILLW_97\H0012 State of New Mexico | 0004| House of Representatives | 0005| | 0006| FORTY-THIRD LEGISLATURE | 0007| FIRST SESSION, 1997 | 0008| | 0009| | 0010| March 3, 1997 | 0011| | 0012| | 0013| Mr. Speaker: | 0014| | 0015| Your APPROPRIATIONS AND FINANCE COMMITTEE, to | 0016| whom has been referred | 0017| | 0018| HOUSE BILL 12, as amended | 0019| | 0020| has had it under consideration and reports same with | 0021| recommendation that it DO PASS, amended as follows: | 0022| | 0023| 1. On page 7, line 23, strike "primarily". | 0024| | 0025| Respectfully submitted, | 0001| | 0002| | 0003| | 0004| | 0005| | 0006| Max Coll, Chairman | 0007| | 0008| | 0009| Adopted Not Adopted | 0010| | 0011| (Chief Clerk) (Chief Clerk) | 0012| | 0013| Date | 0014| | 0015| The roll call vote was 10 For 0 Against | 0016| Yes: 10 | 0017| Excused: Abeyta, Garcia, M.H., Knowles, Picraux, Townsend, | 0018| Saavedra, Wallace | 0019| Absent: None | 0020| | 0021| | 0022| .117988.1 | 0023| G:\BILLTEXT\BILLW_97\H0012 State of New Mexico | 0024| House of Representatives | 0025| | 0001| FORTY-THIRD LEGISLATURE | 0002| FIRST SESSION, 1997 | 0003| | 0004| | 0005| March 3, 1997 | 0006| | 0007| | 0008| Mr. Speaker: | 0009| | 0010| Your APPROPRIATIONS AND FINANCE COMMITTEE, to | 0011| whom has been referred | 0012| | 0013| HOUSE BILL 12, as amended | 0014| | 0015| has had it under consideration and reports same with | 0016| recommendation that it DO PASS, amended as follows: | 0017| | 0018| 1. On page 7, line 23, strike "primarily". | 0019| | 0020| Respectfully submitted, | 0021| | 0022| | 0023| | 0024| | 0025| | 0001| Max Coll, Chairman | 0002| | 0003| | 0004| Adopted Not Adopted | 0005| | 0006| (Chief Clerk) (Chief Clerk) | 0007| | 0008| Date | 0009| | 0010| The roll call vote was 10 For 0 Against | 0011| Yes: 10 | 0012| Excused: Abeyta, Garcia, M.H., Knowles, Picraux, Townsend, | 0013| Saavedra, Wallace | 0014| Absent: None | 0015| | 0016| | 0017| .117988.1 | 0018| G:\BILLTEXT\BILLW_97\H0012 | 0019| | 0020| FORTY-THIRD LEGISLATURE | 0021| FIRST SESSION, 1997 | 0022| | 0023| | 0024| March 10, 1997 | 0025| | 0001| Mr. President: | 0002| | 0003| Your WAYS AND MEANS COMMITTEE, to whom has been | 0004| referred | 0005| | 0006| HOUSE BILL 12, as amended | 0007| | 0008| has had it under consideration and reports same with | 0009| recommendation that it DO PASS, and thence referred to the | 0010| FINANCE COMMITTEE. | 0011| | 0012| Respectfully submitted, | 0013| | 0014| | 0015| | 0016| | 0017| __________________________________ | 0018| Carlos R. Cisneros, Chairman | 0019| | 0020| | 0021| | 0022| Adopted_______________________ Not | 0023| Adopted_______________________ | 0024| (Chief Clerk) (Chief Clerk) | 0025| | 0001| | 0002| Date ________________________ | 0003| | 0004| | 0005| The roll call vote was 7 For 0 Against | 0006| Yes: 7 | 0007| No: 0 | 0008| Excused: Duran, Jennings | 0009| Absent: None | 0010| | 0011| | 0012| H0012WM1 | 0013| | 0014| | 0015| | 0016| FORTY-THIRD LEGISLATURE | 0017| FIRST SESSION, 1997 | 0018| | 0019| | 0020| March 12, 1997 | 0021| | 0022| Mr. President: | 0023| | 0024| Your FINANCE COMMITTEE, to whom has been referred | 0025| | 0001| HOUSE BILL 12, as amended | 0002| | 0003| has had it under consideration and reports same with | 0004| recommendation that it DO PASS. | 0005| | 0006| Respectfully submitted, | 0007| | 0008| | 0009| | 0010| | 0011| __________________________________ | 0012| Ben D. Altamirano, Chairman | 0013| | 0014| | 0015| | 0016| Adopted_______________________ Not | 0017| Adopted_______________________ | 0018| (Chief Clerk) (Chief Clerk) | 0019| | 0020| | 0021| | 0022| Date ________________________ | 0023| | 0024| | 0025| The roll call vote was 6 For 0 Against | 0001| Yes: 6 | 0002| No: None | 0003| Excused: Carraro, Fidel, Ingle, Lyons, McKibben | 0004| Absent: None | 0005| | 0006| | 0007| H0012FC1 |