FORTY-THIRD LEGISLATURE FIRST SPECIAL SESSION May 3, 1998 HOUSE FLOOR AMENDMENT number 1 to HOUSE APPROPRIATIONS AND FINANCE COMMITTEE SUBSTITUTE FOR HOUSE BILL 2 Amendment sponsored by Representative Max Coll 1. On page 4, line 1, strike "five hundred thousand dollars ($500,000)" and insert in lieu thereof "two hundred thousand dollars ($200,000) is appropriated from the general fund to the human services department for expenditure in fiscal year 1999 for food programs for the homeless and three hundred thousand dollars ($300,000)". 2. On page 4, line 10, strike "treatments" and insert in lieu thereof "programs". 3. On page 4, line 23, after "appropriated" insert "from the general fund". 4. On page 6, line 18, strike "and". 5. On page 7, line 1, strike the period and between lines 1 and 2 insert the following new subsections: "U. three hundred fifty thousand dollars ($350,000) is appropriated from the general fund to the local government division of the department of finance and administration to pay unanticipated detention costs of Torrance county; and V. four hundred thousand dollars ($400,000) is appropriated from the general fund to the administrative office of the courts for expenditure in fiscal year 1999 to provide funding for existing drug courts in the judicial districts". 6. On page 9, lines 12 through 15, strike Subsection D in its entirety. 7. On page 22, line 7, strike "not to exceed" and insert in lieu thereof "up to". 8. On page 22, line 8, before "may" strike "and" and insert in lieu thereof "; provided that this amount may be exceeded if the department of finance and administration approves a certified request from the state investment council that additional increases from other state funds are required for increased management fees and custody fees derived from asset growth and performance. The state investment council". 9. On page 23, line 7, strike "not to exceed" and insert in lieu thereof "up to". 10. On page 23, line 9, strike "and" and insert in lieu thereof "; provided that this amount may be exceeded if the department of finance and administration approves a certified request from the educational retirement board that additional increases from other state funds are required for increased management fees and custody fees derived from asset growth and performance. The educational retirement board". 11. On page 24, line 5, strike "not to exceed" and insert in lieu thereof "up to". 12. On page 24, line 7, before "may" strike "and" and insert in lieu thereof "; provided that this amount may be exceeded if the department of finance and administration approves a certified request from the public employees retirement association that additional increases from other state funds are required for increased management fees and custody fees derived from asset growth and performance. The public employees retirement association". 13. On page 25, between lines 14 and 15, insert the following new paragraph: "(44) the New Mexico magazine division of the tourism department may request budget increases from other state funds for earnings from sales;". 14. Renumber the succeeding paragraphs accordingly. 15. On page 34, strike lines 5 through 9. 16. Renumber the succeeding paragraphs accordingly. 17. On page 36, line 9, after the period insert: "The legislative council service shall study constitutional and legal issues involved in the use of joint powers agreements between state agencies and shall report its findings and recommendations to the first session of the forty-fourth legislature. The legislative finance committee shall cooperate with the legislative council service as needed. Section 8. BUDGET REVIEW AND ADJUSTMENT PILOT PROJECT.-- A. The state budget division and the legislative finance committee shall conduct a joint executive-legislative "budget review and adjustment pilot project" involving select executive agencies that is designed to provide the executive and legislature with the ability to monitor and analyze the existing budget adjustment procedures and to strengthen the accountability of the budget adjustment request process. The pilot shall be structured by the state budget division and the legislative finance committee so as to provide the executive and the legislature with the necessary information and tools to effectively evaluate expenditures for necessary government functions and to provide long-range stewardship of state assets. B. The pilot agencies are the taxation and revenue department, the general services department, the state fair, the human services department, the department of health, the children, youth and families department, the corrections department, the road betterment division of the state highway and transportation department, the state investment council, the educational retirement board and the public employees retirement association. C. The pilot project shall establish the mechanism for budget increases or budget transfers of pilot agencies, including a procedure for certification of the need for an increase or transfer. In addition to the procedures provided in Sections 6-3-23 through 6-3- 25 NMSA 1978 for request and approval of a budget adjustment, budget increases or budget transfers allowed in this section for the pilot agencies are subject to the conditions and procedures provided in Subsections D and E of this section. D. As a condition precedent to an approval by the department of finance and administration of a budget increase or budget transfer for a pilot agency, the department shall certify to the legislative finance committee that a request meets the following conditions: (1) the agency is not requesting budget increase authority or transfer authority to fund a purpose or program that has not been approved by the legislature for that agency; (2) the agency is not requesting an expansion to fund a program change that was not approved by the legislature; (3) the agency certifies that an emergency or a serious change in circumstance exists that requires immediate funding; and (4) the agency is not attempting, either directly or indirectly, to delegate its powers and duties. E. Upon receipt of the certification by the department of finance and administration that a budget increase or transfer request pursuant to the pilot project meets the conditions set out in Subsection D of this section, the legislative finance committee may raise objections to the certification within thirty days of receipt of the certification. If no objections are raised by the legislative finance committee within that time, the committee is deemed to have concurred with the certification by the department. If the legislative finance committee raises objections to the certification, it shall attempt to resolve the issues with the state budget division pursuant to the procedures developed for the pilot project. The legislative finance committee may hold hearings on its objections to any certification. If the amount of the request is two hundred fifty thousand dollars ($250,000) or more and the objections are not resolved satisfactorily through the pilot project, the legislative finance committee shall make recommendations to the legislature regarding the certification. The pilot agencies agree to be bound by the terms of the pilot project and the department of finance and administration agrees to wait until the legislative finance committee either concurs with the certification or until the issue is determined by legislative action. If the legislature does not act on the budget increase or budget transfer request by the end of the next legislative session, it is deemed approved. F. The pilot agencies may request increases or transfers as follows: (1) taxation and revenue department, for budget increases from other state funds; (2) general services department, for budget increases from other state funds and internal service funds/interagency transfers; (3) state fair, for budget increases from other state funds; (4) human services department, for budget increases from other state funds; (5) department of health, for budget increases from other state funds; (6) the children, youth and families department, for budget increases from other state funds and internal service funds/interagency transfers; (7) corrections department, for budget increases from other state funds and budget transfers among institutions and the adult institutions division director; and (8) the road betterment division of the state highway and transportation department, for budget transfers from any program or subprogram within the division to any other program or subprogram within the division. G. As part of the budget review and adjustment pilot project, the department of finance and administration and the legislative finance committee shall receive and evaluate quarterly reports from the state investment council, the educational retirement board and the public employees retirement association. The reports shall include the following information: (1) fund performance; (2) changes in asset allocation; (3) investment policies; (4) amount of internal and external management and custody fees and transaction fees by asset type; and (5) copies of proposed or actual contracts over one hundred thousand dollars ($100,000). H. The department of finance and administration and the legislative finance committee shall provide an interim report to the governor and the legislature by January 1, 1999 and a final report to the governor and the legislature by July 15, 1999. The final report shall include their findings and recommendations for statutory or systemic changes necessary to the budget adjustment process. Section 9. PARTS NOT SEVERABLE.--If any part or application of this act is held to be invalid, the remainder or its application to other situations or persons shall likewise be invalid. The provisions of this act are not severable.". ___________________________ Max Coll Adopted ___________________ Not Adopted ___________________________ (Chief Clerk) (Chief Clerk) Date ________________