HB 393 — INVESTMENT IN TAX STABILIZATION RESERVE FUND

HOUSE BILL 393 54TH LEGISLATURE - STATEOFNEWMEXICO- FIRST SESSION, 2019 INTRODUCED BY Tomás E.

Salazar Pursuant to House Rule 24-1, this document incorporates amendments that have been adopted prior to consideration of this measure by the House.

It is a tool to show the amendments in context and is not to be used for the purpose of amendments.

SFCºTRANSFERRINGTRANSFERRING THE TAX h STABILIZATION RESERVE TO THE STATE TREASURY;»SFCTREASURY; PROVIDING FOR g o THE INVESTMENT OF MONEY IN THE TAX STABILIZATION RESERVE BY THE t hr g e i k STATE INVESTMENT OFFICER.

hPROVIDING rFOR iTHE sINVESTMENT hOF ,MONEY t,IN BETHE ITTAX ENACTEDSTABILIZATION RESERVE BY THE LEGISLATURE OF THE STATE OFINVESTMENT NEWOFFICER. MEXICO:

e7 uBE gIT eENACTED bBY lTHE eLEGISLATURE eOF hTHE SECTIONSTATE 1.OF NEW MEXICO:

SectionSECTION 6-4-2.21. NMSA 1978 (being Laws 1987, n d d i = = o h Chapter 347, Section 3, as amended) is amended to read:

lSection ]6-4-2.2 bNMSA ,d1978 i(being aLaws º1987, eChapter "6-4-2.2.347, Section 3, as amended) is amended to read:

GENERAL"6-4-2.2. FUND TAX STABILIZATION RESERVE.-- r i = r t e w d m a n o A.

SFCºGENERAL ThereFUND isTAX createdSTABILIZATION withinRESERVE.-- theA. general fund the d m :

b e d s º o t n = .211273.5SA s k m e e a n e d r e l u [ A d "tax stabilization reserve" The "tax stabilization reserve" is created within the state treasury as a reserve fund of the state»SFC.state.

The [balance of the] tax stabilization reserve [shall be those funds ] consists of money directed or appropriated to it by law and [such other funds as the legislature may appropriate from time to time to the reserve] all income from investment of the reserve.

The state investment officer shall report quarterly to the legislative finance committee and the state investment council on the investments made pursuant to this h section.

Annually, a report shall be submitted no later than gHB o393/a tPage hr1 October 1 each year to the legislative finance committee, the g e i k revenue stabilization and tax policy committee and any other h r i s appropriate interim committees.

hD. , t, e u g [C.

]Except D.as otherwise provided in Subsection E of this section, any balance of the tax stabilization reserve may be:

Except(1) asappropriated otherwiseonly providedby ina Subsectiontwo-thirds' emajority bvote lof eboth ehouses hof [D]the Elegislature offollowing thisreceipt section,by anythe balancelegislature of a declaration of the taxgovernor stabilizationthat nsuch dan dappropriation iis =necessary =for othe hpublic reservepeace, mayhealth be:and safety;

l ] b ,d i a º e (1) appropriated only by a [two-thirds ] two- r i = r t e w d m a n o thirds' majority vote of both houses of the legislature d m :

b e d s º o t n = .211273.5SA s k m e - 2 - e a n e d r e l u [ A d following receipt by the legislature of a declaration of the governor that such an appropriation is necessary for the public peace, health and safety;

(a) pursuant to an appropriation made by a [two-thirds ] two-thirds' majority vote of both houses of the legislature specifying the amount of the appropriation and the purpose of the expenditure;

[D.E.

InIf general fund revenues, including all transfers to the eventgeneral thatfund authorized by law, are projected by the ]governor E.to be insufficient either to meet the level of appropriations authorized by law from the general fund for the current fiscal year or to meet the level of appropriations recommended in the budget and HB 393/a Page 2 appropriations bill submitted in accordance with Section 6-3-21 NMSA 1978 for the next fiscal year, the balance in the tax stabilization reserve may be appropriated by the legislature up to the amount of the projected insufficiency for either or both fiscal years." SECTION 2.

IfEFFECTIVE generalDATE.--The fundeffective revenues,date including all transfers to the general fund authorized by law, are projected by the governor to be insufficient either to meet the level of appropriations authorized by law from the generalprovisions fund for the current fiscal h year or to meet the level of appropriationsthis recommendedact inis theJuly u1, »2019. r budget and appropriations bill submitted in accordance with t h g e l i Section 6-3-21 NMSA 1978 for the next fiscal year, the balance h r i s in the tax stabilization reserve may be appropriated by the h , e h legislature up to the amount of the projected insufficiency for t u g e b l e e , gh either or both fiscal years." n d d i = = o h SECTION 2.

EFFECTIVEHB DATE.--The393/a effectivePage date3 of9 the25 l ] b ,d i a º r provisions of this act is July 1, 2019.

e r = t e w d m a n o - 3 - d m :

b r e t º o t n = .211273.5SA s k m e e a n e d r e l u [ A d