HB 97 — LOCAL GOVERNMENT INVESTMENT POOL PARTICIPANTS

HOUSEAN BILLACT 97RELATING 54THTO LEGISLATUREPUBLIC -FINANCE; STATE OF NEW MEXICO - FIRST SESSIO, 2019 INTRODUCED BY Tomás E.

Salazar 6 8 10 AN ACT RELATING TO PUBLIC FINANCE;

167 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

e t 17 SECTION 1.

Section 6-10-10.1 NMSA 1978 (being Laws 1988, w l n d 18 Chapter 61, Section 2, as amended) is amended to read:

= = 19 "6-10-10.1.

LOCAL GOVERNMENT INVESTMENT POOL CREATED-- a l i a e r 20 DISTRIBUTION OF EARNINGS--REPORT OF INVESTMENTS.-- a t m m 21 A.

There is created in the state treasury the d r e 22 "local government investment pool".

The fund shall consist of c e s k 23 all deposits from participating governments, including revenues e a n b 24 dedicated to repaying bonds, that are placed in the custody of u [ the state treasurer for investment purposes pursuant to this .211296.1SA section.

If an eligible governing body is unable to HB 97 Page 1 receive payment on public money at the rate of interest as set forth in Section 6-10-36 NMSA 1978 from financial institutions within the geographic boundaries of the eligible governing body, or if the eligible governing body is not bound by the terms of Section 6-10-36 NMSA 1978, the finance officer having control of the money of that eligible governing body not required for current expenditure may, with the consent of the board of finance of the eligible governing body if consent is e e 17 required by the laws or rules of the eligible governing body, e e n d 18 remit some or all of the money to the state treasurer for = = l ] 19 deposit for the purpose of investment as allowed by this a l r i 20 section.

t e a t C.

Before funds are invested or reinvested pursuant m m 21 e d r e 22 to this section, a finance officer shall notify and make the c e r c 23 funds available for investment to banks, savings and loan e a n b 24 associations and credit unions located within the geographical u [ boundaries of the participating government or the eligible .211296.1SA - 2 - governing body, subject to the limitation on credit union accounts.

A finance officer shall specify the length of time a deposit shall be in the local government investment HB 97 Page 2 pool.

The state treasurer shall invest the local government investment pool as provided in Section 6-10-10 NMSA 1978 regarding the investment of state funds in investments with a maturity at the time of purchase that does not exceed e e 17 three years.

The state treasurer may elect to have the local e e n d 18 government investment pool consolidated for investment purposes = = l ] 19 with the state funds under the control of the state treasurer;

a l r i 20 provided that accurate and detailed accounting records are t e a t maintained for the account of each participating government and m m 21 e d r e 22 that a proportionate amount of interest earned is credited to c e r c 23 each of the separate accounts of a participating government.

e a n b 24 The fund shall be invested to achieve its objective, which is u [ to realize the maximum return consistent with safe and prudent .211296.1SA - 3 - management.

HB 97 Page 3 G.

The amount of the charges, the manner of the use by the state treasurer and the nature of bond-related services to be offered shall be established in rules adopted and promulgated by the state e e 17 treasurer subject to approval by the state board of finance.

e e n d 18 H.

Subject to appropriation by the legislature, = = l ] 19 amounts deducted from the accounts of participating governments a l r i 20 for charges permitted pursuant to this section shall be t e a t expended by the state treasurer in fiscal year 2008 and in m m 21 e d r e 22 subsequent fiscal years for the administration and management c e r c 23 of the local government investment pool, services provided to e a n b 24 participating governments related to investment of their money u [ in that fund and other services authorized by this section.

.211296.1SA - 4 - Balances remaining at the end of a fiscal year from the amounts deducted pursuant to this section shall revert to the general fund.

Balances in the state treasurer's operating account resulting from deductions taken pursuant to this section in excess of the amount required to provide administration, management and related services required by this subsection or other services authorized by this section shall be offset by reductions in the charges HB 97 Page 4 made by the state treasurer to the accounts of participating governments in subsequent deductions from participating governments' accounts.

If the rating received by the short-term investment portion of the fund is lower than "AA", the state treasurer shall immediately submit a plan to e e 17 the state board of finance detailing the steps that will be e e n d 18 taken to obtain an "AA" or higher rating.

= = l ] 19 J.

The state treasurer may offer to provide to a l r i 20 participating governments services related to requirements of t e a t the federal income tax laws applicable to the investment of m m 21 e d r e 22 bond proceeds.

c e r c 23 K.

A tribe or quasi-governmental body created e a n b 24 pursuant to New Mexico statute may become a participating u [ government only if the governing authority of the tribe or .211296.1SA - 5 - quasi-governmental body has adopted a resolution authorizing the tribe or quasi-governmental body to remit money to the state treasurer for investment in the local government investment pool.

Deposits by the state treasurer on behalf of the general fund and bond proceeds investment pools shall, in aggregate, be no more than thirty-five percent of the total HB 97 Page 5 amount in the local government investment pool at any time.

The educational retirement board, the public employees retirement association and the state investment council may remit money to the state treasurer for investment in the local government investment pool." -HB 697 -Page 156 e7 e9 1725 e e n d 18 = = l ] 19 a l r i 20 t e a t m m 21 e d r e 22 c e r c 23 e a n b 24 u [ .211296.1SA