Bill > HB541

This bill amends New Mexico law to expand and clarify the investment options for state, county, and municipal treasurers when managing public funds. The legislation provides detailed guidelines for how unexpended money can be invested, including allowing investments in various types of securities such as U.S. government bonds, federal agency securities, federally insured obligations, and specific types of investment funds. The bill introduces new provisions that enable treasurers to invest in diverse financial instruments like commercial paper, medium-term corporate notes, money market mutual funds, and securities from supranational issuers, while establishing strict criteria for these investments. Key requirements include obtaining advice and consent from respective boards of finance, adhering to specific rating standards, maintaining investment policies that are reviewed every two years, and ensuring investments have appropriate maturity dates and risk profiles. The bill also specifies detailed protocols for how investments should be made, documented, and secured, with particular attention to transparency, such as requiring monthly filing of deposit receipts and setting limits on the percentage of assets that can be invested in certain types of funds. The amendments aim to provide treasurers with more flexibility in managing public funds while maintaining prudent investment practices, with the new provisions set to take effect on July 1, 2025.

Government Affairs

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=541&year=25